The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 4009                                                  A. 3009
 
                       S E N A T E - A S S E M B L Y
 
                             February 1, 2023
                                ___________
 
 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 providing the authority to
   abate interest for taxpayers impacted by declared disasters (Part  A);
   to  amend  the  tax  law,  in relation to clarifying the definition of
   limited partner for the purposes of the metropolitan  commuter  trans-
   portation  mobility tax (Part B); to amend the tax law, in relation to
   making the investment tax credit refundable for eligible  farmers  for
   five  years  (Part C); to amend the tax law, in relation to the empire
   state film production credit and the empire state film post-production
   credit (Part D); to amend the tax law, in relation to the abatement of
   penalties for underpayment of estimated tax by a corporation (Part E);
   to amend the economic development law, in  relation  to  the  COVID-19
   capital  costs  tax  credit  program  (Part  F);  to  amend the social
   services law and the tax law, in relation to creating a tax credit for
   the creation and expansion of child care (Part G); to  amend  the  tax
   law,  in  relation to extending the authorization of any city having a
   population of one million or more to provide  a  biotechnology  credit
   against  the general corporation tax, unincorporated business tax, and
   banking corporation tax of such city (Part H); to amend the  tax  law,
   in  relation to extending the current corporate tax rates (Subpart A);
   to amend the tax law, in relation to extending the  rehabilitation  of
   historic  properties  tax credit (Subpart B); to amend the tax law, in
   relation to extending the empire state commercial production tax cred-
   it for five years (Subpart C); to amend the tax law,  in  relation  to
   extending  provisions  of  law relating to the grade No. 6 heating oil
   conversion tax credit (Subpart D); 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 effec-
   tiveness thereof; and to amend the tax law, in  relation  to  the  New
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD12574-01-3
 S. 4009                             2                            A. 3009
 
   York  city  musical  and  theatrical  production  tax  credit (Subpart
   E)(Part I); to amend the tax law,  in  relation  to  making  technical
   corrections  to the credit for companies who provide transportation to
   individuals  with  disabilities  (Subpart A); to amend the tax law, in
   relation to eligibility for the brownfield  redevelopment  tax  credit
   (Subpart  B);  to  amend  the tax law, in relation to the pass-through
   entity tax and city  pass-through  entity  tax  and  making  technical
   corrections  thereto (Subpart C) (Part  J); to amend the real property
   tax law, in relation to simplifying the senior citizens real  property
   tax  exemption  (Part  K);  to  amend chapter 540 of the laws of 1992,
   amending the real property tax law relating to oil and gas charges, in
   relation to the effectiveness thereof (Part  L);  to  amend  the  real
   property  tax law, in relation to requiring excess proceeds from a tax
   foreclosure sale to be returned to the former owner (Part M); to amend
   the real property tax law and the state administrative procedure  act,
   in  relation  to  clarifying the solar or wind energy system appraisal
   model (Part N); to amend the tax law, in relation to the authority  of
   counties  to  impose  sales and compensating use taxes permanently; to
   amend chapter 67 of the laws of 2015, relating to authorizing the city
   of Yonkers to impose additional sales tax, in relation to  the  effec-
   tiveness  thereof;  to  amend section 2 of item R of subpart C of part
   XXX of chapter 58 of the laws of 2020 amending the tax law relating to
   extending the expiration of the authorization to the county of Genesee
   to impose an additional  one  percent  of sales and  compensating  use
   taxes,  in  relation  to  making  such  provisions permanent; to amend
   section 2 of item Z of subpart C of part XXX of chapter 58 of the laws
   of 2020 amending the tax law relating to the imposition    of    sales
   and    compensating  use taxes by the county of Monroe, in relation to
   making such provisions permanent; to amend section 4  of  item  EE  of
   subpart  C  of part XXX of chapter 58 of the laws of 2020 amending the
   tax law relating to extending the authorization of the county of Onon-
   daga to impose an  additional  rate  of  sales  and  compensating  use
   taxes,  in  relation  to  making  such  provisions permanent; to amend
   section 2 of item GG of subpart C of part XXX of  chapter  58  of  the
   laws  of 2020 amending the tax law relating to extending the authority
   of the county of Orange to impose an  additional  rate  of  sales  and
   compensating  use  taxes, in relation to making such provisions perma-
   nent; to amend section 3 of item XX of subpart C of part XXX of  chap-
   ter  58 of the laws of 2020 amending the tax law relating to extending
   the authority of the county  of  Ulster  to  impose  an  additional  1
   percent  sales  and  compensating  use tax, in relation to making such
   provisions permanent; and to repeal certain  provisions  of  such  law
   relating  thereto  (Part  O);  to repeal certain provisions of the tax
   law,  relating  to  eliminating  congestion   surcharge   registration
   requirements  (Part  P);  to  amend  the  tax  law, in relation to the
   payment of tax on increased quantities of motor fuel and Diesel  motor
   fuel  on  which  the taxes pursuant to articles 12-A, 13-A and 28 were
   not previously paid (Part Q); to amend the tax  law,  in  relation  to
   extending the sales tax exemption for certain sales made through vend-
   ing machines for those operated by business enterprise program partic-
   ipants  (Part  R); to amend the tax law, in relation to an increase in
   the rate of tax on cigarettes (Part S);  to  amend  the  tax  law,  in
   relation to the revocation of certain certificates and civil penalties
   for  refusal  of a cigarette and tobacco inspection (Part T); to amend
   the tax law and the administrative code of the city of  New  York,  in
   relation  to extending the tax rate reduction under the New York state
 S. 4009                             3                            A. 3009
 
   real estate transfer tax and the New York city real property  transfer
   tax  for  conveyances of real property to existing real estate invest-
   ment funds (Part U); to amend the tax law, in relation  to  permitting
   the  commissioner  of  taxation and finance to seek judicial review of
   decisions of the tax appeals tribunal (Part V);  to  amend  the  state
   finance  law,  in  relation  to  clarifying  the deposit timeframe for
   moneys deposited by the commissioner of taxation and finance (Part W);
   to amend the tax law, in relation to requiring  the  New  York  Racing
   Association,  Inc.  to enter into a repayment agreement with the state
   of New York for the repayment of funds provided by the state  for  the
   renovation of Belmont Park (Part X); to amend the tax law, in relation
   to a keno style lottery game (Part Y); to amend the racing, pari-mutu-
   el  wagering  and  breeding law, in relation to the operations of off-
   track betting corporations (Part Z); to amend the racing,  pari-mutuel
   wagering  and breeding law, in relation to the utilization of funds in
   the Capital region off-track betting corporations' capital acquisition
   funds (Part AA); to amend the racing, pari-mutuel wagering and  breed-
   ing law, in relation to licenses for simulcast facilities, sums relat-
   ing  to track simulcast, simulcast of out-of-state thoroughbred races,
   simulcasting of races run by out-of-state harness tracks and  distrib-
   utions  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 extend-
   ing certain provisions thereof (Part BB); and to amend the tax law, in
   relation to conforming to the federal taxation of S corporations (Part
   CC)
 
   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 2023-2024
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through CC. 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. The opening paragraph of paragraph a of  subdivision  twen-
 ty-eighth  of  section  171 of the tax law, as amended by chapter 451 of
 the laws of 2022, is amended to read as follows:
   [In the case of a taxpayer who is determined for federal tax  purposes
 under  the  provisions  of] HAVE THE AUTHORITY TO POSTPONE CERTAIN DEAD-
 LINES FOR A PERIOD OF UP TO NINETY DAYS, OR  LONGER  WHEN  NECESSARY  TO
 ALIGN  WITH  RELIEF PROVIDED BY THE INTERNAL REVENUE SERVICE PURSUANT TO
 S. 4009                             4                            A. 3009
 
 section seven thousand five hundred eight-A of the internal revenue code
 [to be affected by a presidentially declared disaster, or  who],  FOR  A
 TAXPAYER WHO is determined [under regulations promulgated by the commis-
 sioner]  to  be  affected  by a presidentially declared disaster or by a
 disaster emergency declared by the governor[, have authority to  provide
 that a period of up to ninety days, or a longer period when necessary to
 align with relief that has already been provided by the Internal Revenue
 Service  under  the  authority  to postpone certain deadlines in section
 seven thousand five hundred eight-A of the internal revenue code,  may].
 ANY EXTENSION PERIOD PROVIDED PURSUANT TO THE AUTHORITY IN THIS SUBDIVI-
 SION  SHALL  be disregarded in determining under the tax law, or under a
 law enacted pursuant to the authority of the tax law or  former  article
 2-E  of  the general city law where administered by the commissioner, in
 respect of any tax liability (including  any  interest,  penalty,  addi-
 tional amount, or addition to the tax) of such taxpayer:
   §  2.  Paragraph  c of subdivision twenty-eighth of section 171 of the
 tax law, as added by chapter 8 of the laws of 1998, is amended  to  read
 as follows:
   c.  DEFINITIONS.  1. Presidentially declared disaster. For purposes of
 this subdivision, the term "presidentially declared disaster" means  any
 disaster which, with respect to an area, resulted in a subsequent deter-
 mination  by  the president of the United States that such area warrants
 assistance by the federal government under the disaster relief and emer-
 gency assistance act.
   2. TAXPAYER. FOR PURPOSES OF THIS  SUBDIVISION,  THE  TERM  "TAXPAYER"
 MEANS ANY PERSON OR ENTITY REQUIRED TO FILE A RETURN OR REMIT ANY TAX TO
 THE COMMISSIONER PURSUANT TO THIS CHAPTER.
   §  3.  Subdivision  twenty-eighth  of  section  171  of the tax law is
 amended by adding a new paragraph d to read as follows:
   D. WHERE A TAXPAYER WHO,  PURSUANT  TO  SECTION  SEVEN  THOUSAND  FIVE
 HUNDRED  EIGHT-A OF THE INTERNAL REVENUE CODE, IS DETERMINED FOR FEDERAL
 TAX PURPOSES TO BE AFFECTED BY A PRESIDENTIALLY  DECLARED  DISASTER,  OR
 WHO IS DETERMINED TO BE AFFECTED BY A DISASTER EMERGENCY DECLARED BY THE
 GOVERNOR, BUT THE COMMISSIONER HAS NOT POSTPONED A TAX DEADLINE PURSUANT
 TO  THE AUTHORITY IN  PARAGRAPH A OF THIS SUBDIVISION DUE TO SUCH DISAS-
 TER, THE COMMISSIONER MAY ABATE ANY AMOUNT OF INTEREST FROM  THE  UNDER-
 PAYMENT  OF  ANY TAX ADMINISTERED BY THE COMMISSIONER UNDER THIS CHAPTER
 THAT ACCRUED FOR THE PERIOD DURING WHICH THE TAXPAYER WAS UNABLE TO MEET
 SUCH DEADLINE DUE TO DIRECT IMPACTS OF THE DISASTER.
   § 4. This act shall take effect immediately.
 
                                  PART B
 
   Section 1. Subsection (e) of section 800 of the tax law, as  added  by
 section  1  of  part  C of chapter 25 of the laws of 2009, is amended to
 read as follows:
   (e) Net earnings from self-employment. Net earnings from  self-employ-
 ment  has  the  same  meaning as in section 1402 of the internal revenue
 code, PROVIDED, HOWEVER, THAT FOR PURPOSES OF  DETERMINING  WHETHER  THE
 EXCLUSION  PURSUANT TO PARAGRAPH 13 OF SUBSECTION (A) OF SECTION 1402 OF
 THE INTERNAL REVENUE CODE APPLIES, AN INDIVIDUAL SHALL NOT BE CONSIDERED
 A LIMITED PARTNER IF THE INDIVIDUAL, DIRECTLY OR INDIRECTLY, TAKES  PART
 IN  THE  CONTROL, OR PARTICIPATES IN THE MANAGEMENT OR OPERATIONS OF THE
 PARTNERSHIP SUCH THAT THE INDIVIDUAL IS NOT A PASSIVE INVESTOR,  REGARD-
 LESS  OF  THE INDIVIDUAL'S TITLE OR CHARACTERIZATION IN A PARTNERSHIP OR
 OPERATING AGREEMENT.
 S. 4009                             5                            A. 3009
 
   § 2. This act shall take effect immediately.
 
                                  PART C

   Section  1. Paragraph (d) of subdivision 1 of section 210-B of the tax
 law, as amended by section 31 of part T of chapter 59  of  the  laws  of
 2015, is amended to read as follows:
   (d) Except as otherwise provided in this paragraph, the credit allowed
 under this subdivision for any taxable year shall not reduce the tax due
 for such year to less than the fixed dollar minimum amount prescribed in
 paragraph  (d)  of  subdivision  one  of section two hundred ten of this
 article. However, if the amount of credit allowable under this  subdivi-
 sion  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  allowed  for a taxable year commencing prior to
 January first, nineteen hundred eighty-seven and not deductible in  such
 taxable  year may be carried over to the following year or years and may
 be deducted from the taxpayer's tax for such year or  years  but  in  no
 event  shall  such credit be carried over to taxable years commencing on
 or after January first, two thousand  two,  and  any  amount  of  credit
 allowed  for  a taxable year commencing on or after January first, nine-
 teen hundred eighty-seven and not deductible in such year may be carried
 over to the fifteen taxable years next following such taxable  year  and
 may be deducted from the taxpayer's tax for such year or years.  In lieu
 of  such carryover, (I) any such taxpayer which qualifies as a new busi-
 ness under paragraph (f) of this subdivision  may  elect  to  treat  the
 amount  of  such  carryover  as  an overpayment of tax to be credited or
 refunded in accordance with  the  provisions  of  section  one  thousand
 eighty-six of this chapter, AND (II) ANY SUCH TAXPAYER THAT IS AN ELIGI-
 BLE  FARMER,  AS  DEFINED IN SUBDIVISION ELEVEN OF THIS SECTION, MAY FOR
 TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT,
 ELECT TO TREAT THE AMOUNT OF SUCH CARRYOVER 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.
   §  2.  Paragraph 5 of subsection (a) of section 606 of the tax law, as
 amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
 follows:
   (5)  If  the  amount of credit allowable under this subsection for any
 taxable year shall exceed the taxpayer's tax for such year,  the  excess
 allowed  for  a taxable year commencing prior to January first, nineteen
 hundred eighty-seven may be carried over to the following year or  years
 and  may be deducted from the taxpayer's tax for such year or years, but
 in no event shall such credit be carried over to taxable years  commenc-
 ing  on  or  after January first, nineteen hundred ninety-seven, and any
 amount of credit allowed for a taxable year commencing on or after Janu-
 ary first, nineteen hundred eighty-seven and not deductible in such year
 may be carried over to the ten taxable years next following such taxable
 year and may be deducted from the taxpayer's tax for such year or years.
 In lieu of carrying over any such excess, (A) a taxpayer  who  qualifies
 as  an  owner  of  a  new business for purposes of paragraph ten of this
 subsection may, at [his] THE TAXPAYER'S option, receive such excess as a
 refund, AND (B) A TAXPAYER THAT IS AN  ELIGIBLE  FARMER  AS  DEFINED  IN
 SUBSECTION  (N) OF THIS SECTION MAY, AT THE TAXPAYER'S OPTION, FOR TAXA-
 BLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND  TWENTY-EIGHT
 S. 4009                             6                            A. 3009
 
 RECEIVE  SUCH EXCESS AS A REFUND. Any refund paid pursuant to this para-
 graph shall be deemed to be  a  refund  of  an  overpayment  of  tax  as
 provided  in  section  six hundred eighty-six of this article, provided,
 however, that no interest shall be paid thereon.
   §  3.  This  act  shall  take effect immediately, and apply to taxable
 years beginning on or after January 1, 2023.

                                  PART D
 
   Section 1.  Paragraph 2 of subdivision (a) of section 24  of  the  tax
 law,  as  separately amended by sections 1 and 2 of part M of chapter 59
 of the laws of 2020, 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] THIRTY percent, OR THIRTY-FIVE PERCENT IN THE CASE OF AN  ELIGIBLE
 RELOCATED  TELEVISION SERIES, and the qualified production costs paid or
 incurred in the production of a qualified film, provided that:  (i)  the
 qualified  production  costs  (excluding  post production costs) paid or
 incurred which are attributable to the use of tangible property  or  the
 performance  of  services at a qualified film production facility in the
 production of such qualified film equal or exceed  seventy-five  percent
 of  the  production  costs  (excluding  post  production  costs) paid or
 incurred which are attributable to the use of tangible property  or  the
 performance of services at any film production facility within and with-
 out  the state in the production of such qualified film, and (ii) except
 with respect to a  qualified  independent  film  production  company  or
 pilot,  at least ten percent of the total principal photography shooting
 days spent in the production of such qualified film must be spent  at  a
 qualified film production facility. However, if the qualified production
 costs  (excluding  post  production costs) which are attributable to the
 use of tangible property or the performance of services at  a  qualified
 film  production  facility  in  the production of such qualified film is
 less than three million dollars,  then  the  portion  of  the  qualified
 production  costs  attributable  to  the use of tangible property or the
 performance of services in the production of such qualified film outside
 of a qualified film production facility shall be  allowed  only  if  the
 shooting days spent in New York outside of a film production facility in
 the  production  of  such  qualified  film  equal or exceed seventy-five
 percent of the total shooting days spent within  and  without  New  York
 outside  of  a film production facility in the production of such quali-
 fied film. The credit shall be allowed for the taxable year in which the
 production of such qualified film is completed. However, in the case  of
 a  qualified  film that receives funds from additional pool 2, no credit
 shall be claimed before the later of (1) the taxable year the production
 of the qualified film is complete,  or  (2)  the  [first]  taxable  year
 [beginning  immediately  after  the]  THAT  INCLUDES THE LAST DAY OF THE
 allocation year for which the film has  been  allocated  credit  by  the
 governor's  office for motion picture and television development. If the
 amount of the credit is at least one million dollars but less than  five
 million  dollars,  the  credit  shall  be claimed over a two year period
 beginning in the first taxable year in which the credit may  be  claimed
 and  in the next succeeding taxable year, with one-half of the amount of
 credit allowed being claimed in each year. If the amount of  the  credit
 is  at  least  five  million dollars, the credit shall be claimed over a
 three year period beginning in the first taxable year in which the cred-
 it may be claimed and in the next two  succeeding  taxable  years,  with
 S. 4009                             7                            A. 3009
 
 one-third  of  the  amount  of  the credit allowed being claimed in each
 year.
   §  2.  Paragraph 5 of subdivision (a) of section 24 of the tax law, as
 amended by section 2 of part M of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
   (5)  For the period two thousand fifteen through two thousand [twenty-
 nine] THIRTY-FOUR, 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] COMPOSERS, producers and perform-
 ers, 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  coun-
 ties  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, Sullivan, Tioga, Tompkins, Ulster, Warren, Wash-
 ington, 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-nine] THIRTY-FOUR 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 allocated credits applied for  under  this  para-
 graph  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 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 period two thousand  fifteen  through  two  thousand
 [twenty-nine] THIRTY-FOUR.
   § 2-a. Paragraph 1 of subdivision (b) of section 24 of the tax law, as
 amended  by  section  4  of part B of chapter 59 of the laws of 2013, is
 amended to read as follows:
   (1) "Qualified production costs" means production costs  only  to  the
 extent  such  costs  are attributable to the use of tangible property or
 the performance of services within the state directly and  predominantly
 in  the  production  (including pre-production and post production) of a
 qualified film.   THE AGGREGATE   TOTAL  ELIGIBLE  QUALIFIED  PRODUCTION
 COSTS FOR PRODUCERS, WRITERS, DIRECTORS, ACTORS, AND COMPOSERS SHALL NOT
 S. 4009                             8                            A. 3009
 
 EXCEED  FORTY  PERCENT OF THE AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED
 PRODUCTION COSTS.
   §  3.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
 added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
 amended to read as follows:
   (2)  "Production costs" means any costs for tangible property used and
 services performed directly and predominantly in the production (includ-
 ing  pre-production  and  post  production)   of   a   qualified   film.
 "Production  costs"  shall  not include (i) costs for a story, script or
 scenario to be used for a qualified film and (ii) wages or  salaries  or
 other  compensation  for writers, directors, including [music directors]
 COMPOSERS, producers and performers (other than background  actors  with
 no  scripted  lines)  TO  THE  EXTENT  THOSE  WAGES OR SALARIES OR OTHER
 COMPENSATION  EXCEED  FIVE  HUNDRED  THOUSAND  DOLLARS  PER  INDIVIDUAL.
 "Production  costs"  generally  include  technical  and  crew production
 costs, such as expenditures for film production facilities, or any  part
 thereof, props, makeup, wardrobe, film processing, camera, sound record-
 ing, set construction, lighting, shooting, editing and meals.
   §  4.  Paragraph 8 of subdivision (b) of section 24 of the tax law, as
 added by section 2 of part B of chapter 59  of  the  laws  of  2013,  is
 amended to read as follows:
   (8)  "Relocated television production" shall mean, notwithstanding the
 limitations in subparagraph (i) of paragraph three of this  subdivision,
 a television production that is a talk or variety program that filmed at
 least  [five] TWO seasons outside the state prior to its first relocated
 season in New York, the episodes are filmed before a studio audience  of
 two  hundred or more, and the relocated television production incurs (i)
 at least thirty million dollars in annual production costs in the state,
 or (ii) at least ten million dollars in capital expenditures at a quali-
 fied production facility in the state.
   § 5. Subdivision (b) of section 24 of the tax law is amended by adding
 a new paragraph 9 to read as follows:
   (9) "ELIGIBLE RELOCATED TELEVISION SERIES" SHALL MEAN  THE  FIRST  TWO
 YEARS OF A REGULARLY OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL
 BROADCAST,  REGARDLESS  OF  THE MEDIUM OR MODE OF ITS DISTRIBUTION, IN A
 SERIES OF NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, EACH OF  WHICH
 HAS  A  RUNNING  TIME OF AT LEAST THIRTY MINUTES IN LENGTH (INCLUSIVE OF
 COMMERCIAL ADVERTISEMENT AND INTERSTITIAL PROGRAMMING, IF ANY). FOR  THE
 PURPOSES  OF  THIS  DEFINITION ONLY, A TELEVISION SERIES PRODUCED BY AND
 FOR MEDIA SERVICES PROVIDERS  DESCRIBED  AS  STREAMING  SERVICES  AND/OR
 DIGITAL  PLATFORMS  (AND EXCLUDING NETWORK/CABLE) SHALL MEAN A REGULARLY
 OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL RELEASE IN A  SERIES
 OF  NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, THE AGGREGATE LENGTH
 OF WHICH IS AT LEAST SEVENTY-FIVE MINUTES, ALTHOUGH THE  EPISODES  THEM-
 SELVES  MAY  VARY  IN  DURATION  FROM  THE  THIRTY MINUTES SPECIFIED FOR
 NETWORK/CABLE PRODUCTION, WHICH HAD FILMED SIX  EPISODES  OF  THE  TELE-
 VISION  SERIES  OUTSIDE THE STATE IMMEDIATELY PRIOR TO RELOCATING TO THE
 STATE, WHERE EACH EPISODE OF THE  TELEVISION SERIES HAD A MINIMUM BUDGET
 OF AT LEAST ONE MILLION DOLLARS.
   § 6. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
 amended  by  section  3  of part M of chapter 59 of the laws of 2022, 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-nine]  TWENTY-THREE  AND  SEVEN  HUNDRED
 S. 4009                             9                            A. 3009
 
 MILLION  DOLLARS  EACH YEAR STARTING IN TWO THOUSAND TWENTY-FOUR THROUGH
 TWO THOUSAND THIRTY-FOUR, 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 [twen-
 ty-nine and] TWENTY-THREE, AND FORTY-FIVE MILLIONS 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 TWENTY-FOUR THROUGH TWO  THOUSAND  THIRTY-FOUR.
 PROVIDED FURTHER, five million dollars of the annual allocation shall be
 made available for the television writers' and directors' fees and sala-
 ries  credit  pursuant  to section twenty-four-b of this article in each
 year starting in two thousand twenty through two thousand  [twenty-nine]
 THIRTY-FOUR. 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 avail-
 able 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  allo-
 cation  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 previously allocated, and determines
 that the pending applications from eligible applicants  for  the  empire
 state  film  production  tax credit pursuant to this section is insuffi-
 cient to utilize the balance of unallocated 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 development 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 allo-
 cation year directly on their empire state film  production  credit  tax
 form for each year a credit is claimed and include a copy of the certif-
 icate  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  imme-
 diately  following the allocation year for which the film has been allo-
 cated credit by the governor's office for motion picture and  television
 development.
   §  7.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
 amended by section 4 of part M of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
 S. 4009                            10                            A. 3009
 
   (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-nine]  TWENTY-THREE  AND  SEVEN  HUNDRED
 MILLION  DOLLARS  IN  EACH  YEAR  STARTING  IN  TWO THOUSAND TWENTY-FOUR
 THROUGH  TWO  THOUSAND  THIRTY-FOUR,  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 arti-
 cle  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-nine] TWENTY-THREE, AND FORTY-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  TWENTY-FOUR  THROUGH  TWO  THOUSAND
 THIRTY-FOUR. 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 avail-
 able 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  allo-
 cation  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 previously allocated, and determines
 that the pending applications from eligible applicants  for  the  empire
 state  film  production  tax credit pursuant to this section is insuffi-
 cient to utilize the balance of unallocated 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 development 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 allo-
 cation year directly on their empire state film  production  credit  tax
 form for each year a credit is claimed and include a copy of the certif-
 icate  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  imme-
 diately  following the allocation year for which the film has been allo-
 cated credit by the governor's office for motion picture and  television
 development.
   §  8.  Paragraph 2 of subdivision (a) of section 31 of the tax law, as
 amended by section 5 of part M of chapter 59 of the  laws  of  2020,  is
 amended to read as follows:
 S. 4009                            11                            A. 3009
 
   (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] THIRTY percent and the qualified post production costs paid in the
 production  of  a qualified film at a qualified post production facility
 located  within  the  metropolitan  commuter  transportation district as
 defined in section twelve hundred sixty-two of  the  public  authorities
 law  or  [thirty]  THIRTY-FIVE percent and the qualified post production
 costs paid in the production of a qualified film  at  a  qualified  post
 production facility located elsewhere in the state.
   §  9.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
 amended by section 6 of part M of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
   (6)  For the period two thousand fifteen through two thousand [twenty-
 nine] THIRTY-FOUR, 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] COMPOSERS, producers and perform-
 ers, 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 quali-
 fied 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,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
 Columbia, Cortland, Delaware, Dutchess, Erie, Essex,  Franklin,  Fulton,
 Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madi-
 son,  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 paragraph shall be five million dollars each year during the period
 two thousand fifteen through two thousand [twenty-nine]  THIRTY-FOUR  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
 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-nine] THIRTY-FOUR.
 S. 4009                            12                            A. 3009
 
   §  10. This act shall take effect immediately for new initial applica-
 tions received on or after such effective date; provided, however,  that
 the  amendments  to  paragraph 4 of subdivision (e) of section 24 of the
 tax law made by section six of this act shall take effect  on  the  same
 date  and  in the same manner as section 6 of chapter 683 of the laws of
 2019, as amended, takes effect.

                                  PART E
 
   Section 1. Section 1085 of the tax law is  amended  by  adding  a  new
 subsection (e-1) to read as follows:
   (E-1)  WAIVER  OF ADDITION FOR UNDERPAYMENT OF ESTIMATED TAX. NO ADDI-
 TION TO TAX SHALL BE IMPOSED UNDER SUBSECTION (C) OF THIS  SECTION  WITH
 RESPECT  TO  ANY  UNDERPAYMENT TO THE EXTENT THE COMMISSIONER DETERMINES
 THAT BY REASON OF CASUALTY, DISASTER OR OTHER UNUSUAL CIRCUMSTANCES  THE
 IMPOSITION  OF  SUCH  ADDITION  TO  TAX WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section 1. Subdivision 4 of section 484 of  the  economic  development
 law,  as added by section 1 of part E of chapter 59 of the laws of 2022,
 is amended to read as follows:
   4. The business entity must submit its application by  [March  thirty-
 first] SEPTEMBER THIRTIETH, two thousand twenty-three.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section 1. Article 6 of the social services law is amended by adding a
 new title 1-A to read as follows:
                                 TITLE 1-A
           CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM
 SECTION 394.   SHORT TITLE.
         394-A. DEFINITIONS.
         394-B. ELIGIBILITY CRITERIA.
         394-C. APPLICATION AND APPROVAL PROCESS.
         394-D. CHILD CARE CREATION AND EXPANSION TAX CREDIT.
         394-E. ALLOCATION OF CREDIT.
         394-F. POWERS AND DUTIES OF THE COMMISSIONER.
         394-G. MAINTENANCE OF RECORDS.
   §  394. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 "CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM ACT".
   § 394-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
   1. "CERTIFICATE OF TAX CREDIT" SHALL MEAN THE  DOCUMENT  ISSUED  TO  A
 BUSINESS  ENTITY  BY  THE  OFFICE AFTER THE OFFICE HAS VERIFIED THAT THE
 BUSINESS ENTITY HAS MET ALL  APPLICABLE  ELIGIBILITY  CRITERIA  IN  THIS
 TITLE.  THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CREDIT
 UNDER THIS TITLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT  TO  SECTION
 THREE HUNDRED NINETY-FOUR-D OF THIS TITLE, AND THE SERVICE YEAR.
   2.  "CHILD  CARE  PROGRAM"  SHALL  MEAN  A  CHILD DAY CARE FOR WHICH A
 LICENSE OR REGISTRATION TO OPERATE SUCH PROGRAM HAS BEEN ISSUED  BY  THE
 OFFICE PURSUANT TO SECTION THREE HUNDRED NINETY OF THIS ARTICLE.
   3.  "CHILD  CARE RATE" SHALL MEAN THE WEEKLY CHILD CARE SUBSIDY MARKET
 RATES, BASED ON THE EIGHTIETH PERCENTILE OF THE 2021-22 NEW  YORK  STATE
 S. 4009                            13                            A. 3009
 
 CHILD CARE MARKET RATE SURVEY, FOR INFANT AND TODDLER CARE PROVIDED BY A
 LICENSED  OR  REGISTERED  CHILD  CARE  PROGRAM, AS REFLECTED IN THE 2022
 CHILD CARE MARKET RATE SURVEY REPORT PUBLISHED BY THE OFFICE IN  COMPLI-
 ANCE WITH SECTION 98.45 OF TITLE FORTY-FIVE OF THE CODE OF FEDERAL REGU-
 LATIONS.
   4.  "CHILD CARE SEATS" SHALL MEAN 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 LICENSE OR REGISTRATION
 ISSUED FOR SUCH PROGRAM BY THE OFFICE.
   5. "CREATES CHILD CARE" SHALL MEAN THE MAKING AVAILABLE OF CHILD  CARE
 SEATS  IN A CHILD CARE PROGRAM BY A BUSINESS ENTITY, DIRECTLY OR THROUGH
 A THIRD-PARTY, FOR EMPLOYEES OF SUCH BUSINESS ENTITY, WHERE  SUCH  CHILD
 CARE  PROGRAM WAS NOT AVAILABLE PRIOR TO APRIL FIRST, TWO THOUSAND TWEN-
 TY-THREE, PROVIDED THAT THE COSTS IMPOSED ON  SUCH  EMPLOYEES  FOR  SUCH
 CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE RATE.
   6.  "COMMISSIONER"  SHALL  MEAN COMMISSIONER OF THE OFFICE OF CHILDREN
 AND FAMILY SERVICES.
   7. "EXPANDS CHILD CARE" SHALL MEAN THE INCREASE IN THE NUMBER OF CHILD
 CARE SEATS IN A CHILD CARE PROGRAM MADE AVAILABLE BY A BUSINESS  ENTITY,
 DIRECTLY  OR THROUGH A THIRD PARTY, FOR EMPLOYEES OF SUCH BUSINESS ENTI-
 TY, PROVIDED THAT SUCH INCREASE REQUIRES A NEW  OR  AMENDED  LICENSE  OR
 REGISTRATION  ISSUED  BY  THE  OFFICE  PURSUANT TO SECTION THREE HUNDRED
 NINETY OF THIS ARTICLE ON OR AFTER APRIL  FIRST,  TWO  THOUSAND  TWENTY-
 THREE,  AND,  PROVIDED FURTHER, THAT THE COSTS IMPOSED ON SUCH EMPLOYEES
 FOR SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY  PERCENT  OF  THE  CHILD
 CARE RATE.
   8.  "OCCUPIED" SHALL MEAN, FOR EACH SERVICE YEAR IN WHICH A CHILD CARE
 PROGRAM IS IN OPERATION, THE AVERAGE DAILY NUMBER OF CHILDREN IN ATTEND-
 ANCE ON THE PREMISES OF SUCH CHILD CARE PROGRAM.
   9. "OFFICE" SHALL MEAN THE OFFICE OF CHILDREN AND FAMILY SERVICES.
   10. "SERVICE YEAR" SHALL MEAN  THE  TWELVE-MONTH  PERIOD,  OR  PORTION
 THEREOF,  COMMENCING  ON  JANUARY  FIRST  AND ENDING ON DECEMBER THIRTY-
 FIRST.
   § 394-B. ELIGIBILITY CRITERIA. 1. TO BE  ELIGIBLE  FOR  A  TAX  CREDIT
 UNDER  THE CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM, A BUSI-
 NESS ENTITY MUST:
   (A) BE A BUSINESS ENTITY THAT IS REQUIRED TO FILE A TAX RETURN  PURSU-
 ANT TO ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE TAX LAW;
   (B) BE A CHILD CARE PROGRAM, OR CONTRACT WITH SUCH CHILD CARE PROGRAM,
 AS  DEFINED  IN  THIS  TITLE  THAT IS LICENSED OR REGISTERED PURSUANT TO
 SECTION THREE HUNDRED NINETY OF THIS ARTICLE;
   (C) CREATE OR EXPAND CHILD CARE SEATS, DIRECTLY  OR  THROUGH  A  THIRD
 PARTY,  FOR  THE  EMPLOYEES  OF  SUCH  BUSINESS ENTITY ON OR AFTER APRIL
 FIRST, TWO THOUSAND TWENTY-THREE AND BEFORE JANUARY FIRST, TWO  THOUSAND
 TWENTY-FIVE;
   (D) OPERATE A BUSINESS LOCATION IN NEW YORK STATE;
   (E)  BE  IN  SUBSTANTIAL COMPLIANCE WITH ANY CHILD CARE LICENSING LAWS
 AND REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR  OR  OTHER  LAWS
 AND REGULATIONS AS DETERMINED BY THE COMMISSIONER; AND
   (F)  NOT  OWE  PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE
 BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED  BIND-
 ING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY.
   §  394-C.  APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
 SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER  BY  THE
 THIRTY-FIRST OF JANUARY AFTER THE END OF THE SERVICE YEAR.
 S. 4009                            14                            A. 3009
 
   2.  THE  COMMISSIONER SHALL ESTABLISH PROCEDURES FOR A BUSINESS ENTITY
 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) PROVIDE THE LICENSE OR REGISTRATION ISSUED TO THE BUSINESS ENTITY,
 DIRECTLY OR THROUGH A THIRD PARTY, BY THE OFFICE TO OPERATE A CHILD CARE
 PROGRAM INDICATING THE NUMBER OF CHILD CARE SEATS  CREATED  OR,  IN  THE
 CASE  OF A CHILD CARE PROGRAM THAT HAS EXPERIENCED AN EXPANSION OF CHILD
 CARE SEATS, THE LICENSE OR REGISTRATION ISSUED BY THE OFFICE DEMONSTRAT-
 ING SUCH EXPANSION;
   (C) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED  BY  THE  COMMIS-
 SIONER ESTABLISHING:
   (I) THE TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED DURING THE
 SERVICE YEAR;
   (II)  OF SUCH TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED, THE
 NUMBER OF INFANT CHILD CARE SEATS THAT WERE OCCUPIED AND THE  NUMBER  OF
 TODDLER CHILD CARE SEATS THAT WERE OCCUPIED;
   (III)  THAT,  TO THE EXTENT THE BUSINESS ENTITY, DIRECTLY OR THROUGH A
 THIRD PARTY, 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; AND
   (IV) THAT THE COSTS IMPOSED ON THE  BUSINESS  ENTITY'S  EMPLOYEES  FOR
 SUCH  CHILD  CARE  PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE
 RATE.
   (D) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
 BUSINESS ENTITY'S TAX INFORMATION RELEVANT TO THE ADMINISTRATION OF THIS
 TITLE WITH THE OFFICE. HOWEVER, ANY INFORMATION SHARED AS  A  RESULT  OF
 THIS TITLE SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE
 STATE FREEDOM OF INFORMATION LAW;
   (E)  ALLOW  THE  OFFICE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND
 RECORDS THE OFFICE MAY REQUIRE TO MONITOR COMPLIANCE; AND
   (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE OFFICE
 RELEVANT TO THIS TITLE.
   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 TITLE, THE OFFICE MAY ISSUE TO THAT BUSINESS ENTITY A
 CERTIFICATE OF TAX CREDIT, WHICH SHALL SET FORTH THE AMOUNT OF THE CRED-
 IT THAT MAY BE CLAIMED AND THE SERVICE YEAR.
   § 394-D. CHILD CARE CREATION AND EXPANSION TAX  CREDIT.  ALLOWANCE  OF
 CREDIT.  1.  A  BUSINESS ENTITY IN THE CHILD CARE CREATION AND EXPANSION
 TAX CREDIT PROGRAM THAT MEETS THE ELIGIBILITY  REQUIREMENTS  OF  SECTION
 THREE  HUNDRED  NINETY-FOUR-B  OF  THIS TITLE MAY BE ELIGIBLE TO CLAIM A
 CREDIT FOR THE PORTION OF THE SERVICE  YEAR  IN  WHICH  THE  CHILD  CARE
 PROGRAM  WAS  IN  OPERATION, EQUAL TO THE SUM OF: (A) 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  (B) 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.   NOTWITHSTAND-
 ING  THE PRECEDING SENTENCE, A CREDIT 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 SECTION THREE HUNDRED NINETY-FOUR-E OF THIS TITLE.
 S. 4009                            15                            A. 3009
 
   2. THE CREDIT SHALL BE ALLOWED AS  PROVIDED  IN  SECTION  FORTY-EIGHT,
 SUBDIVISION FIFTY-NINE OF SECTION TWO HUNDRED TEN-B, SUBSECTION (OOO) OF
 SECTION  SIX HUNDRED SIX AND SUBDIVISION (EE) OF SECTION FIFTEEN HUNDRED
 ELEVEN OF THE TAX LAW.
   §  394-E.  ALLOCATION  OF  CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED UNDER THIS TITLE, SUBDIVISION FIFTY-NINE OF SECTION TWO  HUNDRED
 TEN-B,  SUBSECTION (OOO) OF SECTION SIX HUNDRED SIX AND SUBDIVISION (EE)
 OF SECTION FIFTEEN ELEVEN OF THE TAX LAW SHALL  BE  TWENTY-FIVE  MILLION
 DOLLARS  EACH  YEAR  DURING THE PERIOD TWO THOUSAND TWENTY-THREE AND TWO
 THOUSAND TWENTY-FOUR. SUCH AGGREGATE AMOUNT OF CREDITS  SHALL  BE  ALLO-
 CATED  BY  THE  OFFICE  ON A PRO RATA BASIS TO EACH BUSINESS ENTITY THAT
 DEMONSTRATES ELIGIBILITY PURSUANT TO SECTION THREE HUNDRED NINETY-FOUR-B
 OF THIS TITLE.
   § 394-F. POWERS AND DUTIES OF THE COMMISSIONER.  1.  THE  COMMISSIONER
 MAY  PROMULGATE  REGULATIONS  ESTABLISHING  AN  APPLICATION  PROCESS AND
 ELIGIBILITY CRITERIA, WHICH WILL BE APPLIED CONSISTENT WITH THE PURPOSES
 OF THIS TITLE SO AS NOT TO EXCEED THE ANNUAL  CAP  ON  TAX  CREDITS  SET
 FORTH IN THIS TITLE, THAT, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRA-
 RY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMER-
 GENCY 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
 BUSINESS ENTITY APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
 BUSINESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIRE-
 MENTS SET FORTH IN SECTION THREE HUNDRED NINETY-FOUR-B OF THIS TITLE.
   § 394-G. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN
 THE  PROGRAM  SHALL  KEEP ALL RELEVANT RECORDS FOR THE DURATION OF THEIR
 PARTICIPATION IN THE PROGRAM FOR AT LEAST THREE YEARS.
   § 2. The tax law is amended by adding a new  section  48  to  read  as
 follows:
   §  48.  CHILD CARE CREATION AND EXPANSION TAX CREDIT. (A) ALLOWANCE OF
 CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE  NINE-A,  TWENTY-TWO  OR
 THIRTY-THREE OF THIS CHAPTER 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 THREE HUNDRED NINETY-FOUR-D OF THE SOCIAL SERVICES
 LAW AND SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES THE LAST  DAY
 OF  THE  SERVICE  YEAR  FOR  WHICH  THE CREDIT IS CALCULATED. 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. TO BE ELIGIBLE FOR THE CHILD CARE CREATION AND EXPAN-
 SION  TAX  CREDIT,  THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF
 TAX CREDIT BY THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  PURSUANT  TO
 SECTION  THREE  HUNDRED  NINETY-FOUR-C  OF  THE  SOCIAL  SERVICES LAW. A
 TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABIL-
 ITY 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
 S. 4009                            16                            A. 3009

 RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE  COMMISSIONER  OF
 THE OFFICE OF CHILDREN AND FAMILY SERVICES.
   (D)  INFORMATION  SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP-
 TER, EMPLOYEES OF THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  AND  THE
 DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE:
   (1)  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
   (2)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
 SUBMITTED TO THE DEPARTMENT. EXCEPT AS PROVIDED IN PARAGRAPH ONE OF THIS
 SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE  OFFICE  OF  CHILDREN
 AND  FAMILY  SERVICES AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLO-
 SURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW.
   (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX  CREDIT  ISSUED  BY  THE
 OFFICE OF CHILDREN AND FAMILY SERVICES UNDER TITLE 1-A OF ARTICLE SIX OF
 THE  SOCIAL SERVICES LAW IS REVOKED BY SUCH OFFICE, 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 59;
   (2) ARTICLE 22: SECTION 606, SUBSECTION (OOO);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 59 to read as follows:
   59. CHILD CARE CREATION AND EXPANSION TAX  CREDIT.  (A)  ALLOWANCE  OF
 CREDIT.    A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS
 PROVIDED IN SECTION FORTY-EIGHT  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
 (ooo) to read as follows:
   (OOO)  CHILD  CARE CREATION AND EXPANSION TAX CREDIT. (1) ALLOWANCE OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN SECTION FORTY-EIGHT 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 (l) to read as follows:
 S. 4009                            17                            A. 3009
 
 (L) CHILD CARE CREATION AND          AMOUNT OF CREDIT
 EXPANSION TAX CREDIT UNDER           UNDER SUBDIVISION 59
 SUBSECTION (OOO)                     OF SECTION TWO HUNDRED
                                      TEN-B
   §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ee) to read as follows:
   (EE) CHILD CARE CREATION AND EXPANSION TAX CREDIT.  (1)  ALLOWANCE  OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN  SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
 FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
 TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
 APPLICABLE.  HOWEVER, IF THE AMOUNT OF THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE 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 ONE THOUSAND
 EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE  PAID
 THEREON.
   § 7. This act shall take effect immediately.
 
                                  PART H
 
   Section 1. Paragraph 5 of subdivision (d) of section 1201-a of the tax
 law,  as  amended by chapter 260 of the laws of 2015, is amended to read
 as follows:
   5. Any local law adopted pursuant to this subdivision may provide  for
 a  credit  as  authorized  by  this  subdivision  for a maximum of three
 consecutive calendar years, provided, however, that any such credit  may
 not  apply to taxable years beginning before January first, two thousand
 [ten] TWENTY-THREE or beginning on or after January first, two  thousand
 [nineteen] TWENTY-SIX.
   § 2. This act shall take effect immediately.
 
                                  PART I
 
   Section  1.  This Part enacts into law major components of legislation
 relating to extending various taxes and tax credits. Each  component  is
 wholly  contained  within  a Subpart identified 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 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 Part sets forth  the  general  effective
 date of this Part.
 
                                 SUBPART A
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 1 of part HHH of chap-
 ter 59 of the laws of 2021, is amended to read as follows:
 S. 4009                            18                            A. 3009
 
   For  taxable  years  beginning  before  January  first,  two  thousand
 sixteen,  the  amount  prescribed by this paragraph shall be computed at
 the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
 income  base. For taxable years beginning on or after January first, two
 thousand  sixteen,  the amount prescribed by this paragraph shall be six
 and one-half percent of the taxpayer's business income base. For taxable
 years beginning on or after January first, two thousand  twenty-one  and
 before  January  first,  two thousand [twenty-four] TWENTY-SEVEN for any
 taxpayer with a business income base for the taxable year of  more  than
 five  million  dollars, the amount prescribed by this paragraph shall be
 seven and one-quarter percent of the taxpayer's  business  income  base.
 The  taxpayer's  business  income  base  shall  mean  the portion of the
 taxpayer's business income apportioned within the state  as  hereinafter
 provided.  However, in the case of a small business taxpayer, as defined
 in paragraph (f) of this subdivision,  the  amount  prescribed  by  this
 paragraph  shall be computed pursuant to subparagraph (iv) of this para-
 graph and in the case of a manufacturer, as defined in subparagraph (vi)
 of this paragraph, the amount prescribed  by  this  paragraph  shall  be
 computed  pursuant  to  subparagraph (vi) of this paragraph, and, in the
 case of a qualified emerging technology company, as defined in  subpara-
 graph  (vii)  of this paragraph, the amount prescribed by this paragraph
 shall be computed pursuant to subparagraph (vii) of this paragraph.
   § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of  section  210
 of the tax law, as amended by section 2 of part HHH of chapter 59 of the
 laws of 2021, is amended to read as follows:
   (1)  (i)  The  amount  prescribed  by this paragraph shall be computed
 at .15 percent for each dollar of the taxpayer's total business capital,
 or the portion thereof  apportioned  within  the  state  as  hereinafter
 provided  for taxable years beginning before January first, two thousand
 sixteen.  However, in the case of a cooperative housing  corporation  as
 defined  in  the internal revenue code, the applicable rate shall be .04
 percent until taxable years beginning on or  after  January  first,  two
 thousand twenty and zero percent for taxable years beginning on or after
 January  first,  two thousand twenty-one. The rate of tax for subsequent
 tax years shall be as follows: .125 percent for taxable years  beginning
 on  or  after  January  first,  two  thousand sixteen and before January
 first, two thousand seventeen; .100 percent for taxable years  beginning
 on  or  after  January  first, two thousand seventeen and before January
 first, two thousand eighteen; .075 percent for taxable  years  beginning
 on  or  after  January  first,  two thousand eighteen and before January
 first, two thousand nineteen; .050 percent for taxable  years  beginning
 on  or  after  January  first,  two thousand nineteen and before January
 first, two thousand twenty; .025 percent for taxable years beginning  on
 or  after  January  first, two thousand twenty and before January first,
 two thousand twenty-one; and .1875 percent for  years  beginning  on  or
 after  January  first, two thousand twenty-one and before January first,
 two thousand [twenty-four] TWENTY-SEVEN, and zero  percent  for  taxable
 years  beginning  on  or after January first, two thousand [twenty-four]
 TWENTY-SEVEN. Provided however, for taxable years beginning on or  after
 January  first,  two  thousand  twenty-one,  the rate of tax for a small
 business as defined in paragraph (f) of this subdivision shall  be  zero
 percent.  The rate of tax for a qualified New York manufacturer shall be
 .132 percent for taxable years beginning on or after January first,  two
 thousand  fifteen  and  before January first, two thousand sixteen, .106
 percent for taxable years beginning on or after January first, two thou-
 sand sixteen and before January  first,  two  thousand  seventeen,  .085
 S. 4009                            19                            A. 3009
 
 percent for taxable years beginning on or after January first, two thou-
 sand  seventeen  and  before  January first, two thousand eighteen; .056
 percent for taxable years beginning on or after January first, two thou-
 sand  eighteen  and  before  January  first, two thousand nineteen; .038
 percent for taxable years beginning on or after January first, two thou-
 sand nineteen and  before  January  first,  two  thousand  twenty;  .019
 percent for taxable years beginning on or after January first, two thou-
 sand  twenty and before January first, two thousand twenty-one; and zero
 percent for years beginning on or  after  January  first,  two  thousand
 twenty-one.  (ii)  In no event shall the amount prescribed by this para-
 graph exceed three hundred fifty thousand dollars for qualified New York
 manufacturers and for all other taxpayers five million dollars.
   § 3. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section 1. Subparagraph (A) of  paragraph  1  of  subsection  (oo)  of
 section 606 of the tax law, as amended by section 1 of part CCC of chap-
 ter 59 of the laws of 2021, is amended 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,  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 cred-
 it  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, however, the credit shall not exceed five million dollars. For
 taxable years beginning on or after January first, two  thousand  [twen-
 ty-five]  THIRTY,  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  thou-
 sand dollars.
   §  2.  Subparagraph  (i) of paragraph (a) of subdivision 26 of section
 210-B of the tax law, as amended by section 2 of part CCC of chapter  59
 of the laws of 2021, is amended to read as follows:
   (i)  For  taxable years beginning on or after January first, two thou-
 sand ten, and before January first, two thousand [twenty-five] THIRTY, 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
 S. 4009                            20                            A. 3009
 
 located within the state. Provided, however, the credit shall not exceed
 five million dollars.
   §  3.  Clause (B) of subparagraph (ii) of paragraph (a) of subdivision
 26 of section 210-B of the tax law, as added by section 17 of part A  of
 chapter  59  of the laws of 2014, is redesignated as paragraph (a-1) and
 is amended to read as follows:
   (a-1) If the taxpayer is a partner in a partnership or  a  shareholder
 in  a  New York S corporation, then the credit caps imposed in [subpara-
 graph (A)] PARAGRAPH  (A)  of  this  [paragraph]  SUBDIVISION  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.
   § 4. Subparagraph (ii) of 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, is amended to read as follows:
   (ii) For taxable years beginning on or after January first, two  thou-
 sand [twenty-five] THIRTY, a taxpayer shall be allowed a credit as here-
 inafter  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  certified
 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.
   §  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 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,  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 cred-
 it  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, however, the credit shall not exceed five million dollars. For
 taxable years beginning on or after January first, two  thousand  [twen-
 ty-five]  THIRTY,  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.
   § 6. This act shall take effect immediately.
 
                                 SUBPART C
 S. 4009                            21                            A. 3009
 
   Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
 law, as amended by section 1 of part AAA of chapter 59 of  the  laws  of
 2019, is amended to read as follows:
   (1)  A taxpayer which is a qualified commercial production company, or
 which is a sole proprietor of a qualified commercial production company,
 and which is subject to tax under article nine-A or twenty-two  of  this
 chapter,  shall  be  allowed  a credit against such tax, pursuant to the
 provisions referenced in subdivision (c) of this section, to be computed
 as provided in this section. Provided, however, to be eligible for  such
 credit, at least seventy-five percent of the production costs (excluding
 post  production  costs)  paid or incurred directly and predominantly in
 the actual filming or recording of  the  qualified  commercial  must  be
 costs  incurred  in  New  York state. The tax credit allowed pursuant to
 this section shall apply  to  taxable  years  beginning  before  January
 first, two thousand [twenty-four] TWENTY-NINE.
   §  2. Paragraph (c) of subdivision 23 of section 210-B of the tax law,
 as amended by chapter 518 of the laws of 2018, is  amended  to  read  as
 follows:
   (c)  Expiration  of  credit. The credit allowed under this subdivision
 shall not be applicable to taxable years beginning on or  after  January
 first, two thousand [twenty-four] TWENTY-NINE.
   §  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
 amended by chapter 518 of the laws  of  2018,  is  amended  to  read  as
 follows:
   (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
 provisions of section twenty-eight of this chapter shall  be  allowed  a
 credit  to  be  computed  as  provided  in  such section against the tax
 imposed by this article. The tax credit allowed pursuant to this section
 shall apply to taxable years beginning before January first,  two  thou-
 sand [twenty-four] TWENTY-NINE.
   § 4. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section  1.  Paragraph  1  of subdivision (a) of section 47 of the tax
 law, as added by section 1 of part I of chapter 59 of the laws of  2022,
 is amended to read as follows:
   (1)  Allowance  of  credit.  A  taxpayer  that  meets  the eligibility
 requirements of subdivision (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 heating 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 at a facility regulated pursuant to section 19-0302 or title ten
 of article seventeen of the environmental conservation law, paid by such
 taxpayer  on  or after January first, two thousand twenty-two and before
 [July] JANUARY first, two  thousand  [twenty-three]  TWENTY-FOUR.    The
 credit cannot exceed five hundred thousand dollars per facility.
   § 2. This act shall take effect immediately.
 
                                 SUBPART E
 
   Section 1. 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
 establishing the New York city musical  and  theatrical  production  tax
 credit  and establishing the New York state council on the arts cultural
 S. 4009                            22                            A. 3009
 
 program fund, as amended by section 7 of part F of  chapter  59  of  the
 laws of 2022, is amended to read as follows:
   §  6.  This  act shall take effect immediately; provided however, that
 [section] SECTIONS 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] 2026 and shall expire and be deemed repealed January 1, [2024]
 2026; provided further, however that the obligations under  paragraph  3
 of  subdivision  (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] 2027.
   § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
 amended by section 1 of part F of chapter 59 of the  laws  of  2022,  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  prior
 to  January  first,  two  thousand  [twenty-three]  TWENTY-FIVE.    [For
 productions whose first performance is 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  theat-
 rical production unless the New York city tourism economy has not suffi-
 ciently  recovered, as determined by the department of economic develop-
 ment 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 limit-
 ed  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.
   § 3. Subparagraph (i) of paragraph 5 of  subdivision  (b)  of  section
 24-c  of the tax law, as amended by section 2 of part F of chapter 59 of
 the laws of 2022, 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, September thirtieth, two  thousand
 [twenty-three]  TWENTY-FIVE or the date the qualified musical and theat-
 rical production closes.
   § 4.  Subdivision (c) 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:
   (c) The credit shall be allowed for the taxable year beginning  on  or
 after  January  first, two thousand twenty-one but before January first,
 two thousand [twenty-four]  TWENTY-SIX.    A  qualified  New  York  city
 musical  and theatrical production company shall claim the credit in the
 year in which its credit period ends.
   § 5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the  tax
 law,  paragraph 1 as amended by section 3 of part F of chapter 59 of the
 S. 4009                            23                            A. 3009
 
 laws of 2022, and paragraph 2 as amended by section 4 of part F of chap-
 ter 59 of the laws of 2022, are 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 [two] THREE
 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.
   (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 June  thirtieth,
 two thousand [twenty-three] TWENTY-FIVE.
   §  6. This act shall take effect immediately; provided that the amend-
 ments to section 24-c of the tax law made by sections two,  three,  four
 and  five  of  this  act shall not affect the repeal of such section and
 shall be deemed repealed therewith.
   § 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 dates of Subparts A through E of this act shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART J
 
   Section 1. This act enacts into law major  components  of  legislation
 relating  to  taxation.  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
 S. 4009                            24                            A. 3009
 
   Section 1. Paragraph (b) of subdivision 38 of section 210-B of the tax
 law,  as  amended  by  section  2 of part L of chapter 59 of the laws of
 2022, is amended to read as follows:
   (b)  Definitions.  The  term "accessible by individuals with disabili-
 ties" shall, for the purposes of this subdivision, refer  to  a  vehicle
 that complies with federal regulations promulgated pursuant to the Amer-
 icans  with Disabilities Act applicable to vans under twenty-two feet in
 length, by the federal Department of Transportation, in Code of  Federal
 Regulations, title 49, parts 37 and 38[, and by the federal Architecture
 and  Transportation  Barriers Compliance Board, in Code of Federal Regu-
 lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
 ty Standards, Code of Federal Regulations, title 49, part [57] 571.  The
 term  "electric  vehicle"  shall,  for the purposes of this subdivision,
 have the same meaning as in section sixty-six-s of  the  public  service
 law.
   §  2. Paragraph 2 of subsection (tt) of section 606 of the tax law, as
 amended by section 4 of part L of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
   (2)  Definitions.  The  term "accessible by individuals with disabili-
 ties" shall, for the purposes of this subsection,  refer  to  a  vehicle
 that complies with federal regulations promulgated pursuant to the Amer-
 icans  with Disabilities Act applicable to vans under twenty-two feet in
 length, by the federal Department of Transportation, in Code of  Federal
 Regulations, title 49, parts 37 and 38[, and by the federal Architecture
 and  Transportation  Barriers Compliance Board, in Code of Federal Regu-
 lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
 ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571.
 The term "electric vehicle" shall, for the purposes of this  subsection,
 have  the  same  meaning as in section sixty-six-s of the public service
 law.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2023.
 
                                 SUBPART B
 
   Section 1. Paragraph 2 of subdivision (b) of section  21  of  the  tax
 law,  as  amended  by  section 7 of part LL of chapter 58 of the laws of
 2022, is amended to read as follows:
   (2) Site preparation costs. The term "site  preparation  costs"  shall
 mean  all  amounts  properly  chargeable to a capital account, which are
 paid or incurred which are necessary  to  implement  a  site's  investi-
 gation,  remediation,  or qualification for a certificate of completion,
 and shall include costs of: excavation; demolition; activities undertak-
 en under the oversight of the department of labor or in accordance  with
 standards  established  by  the  department  of  health to remediate and
 dispose of regulated materials including asbestos, lead  or  polychlori-
 nated  biphenyls;  environmental  consulting;  engineering; legal costs;
 transportation, disposal, treatment or containment of contaminated soil;
 remediation measures taken to address  contaminated  soil  vapor;  cover
 systems  consistent  with  applicable  regulations;  physical support of
 excavation; dewatering and other work to facilitate  or  enable  remedi-
 ation  activities;  sheeting,  shoring,  and  other engineering controls
 required to prevent off-site migration of contamination from the  quali-
 fied  site  or migrating onto the qualified site; and the costs of fenc-
 ing, temporary electric wiring,  scaffolding,  and  security  facilities
 until  such  time as the certificate of completion has been issued. Site
 S. 4009                            25                            A. 3009
 
 preparation shall include all costs paid or incurred within sixty months
 after the last  day  of  the  tax  year  in  which  the  certificate  of
 completion  is issued that are necessary for compliance with the certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program  defined  in  such  certificate  of completion including but not
 limited to institutional controls,  engineering  controls,  an  approved
 site  management plan, and an environmental easement with respect to the
 qualified site; provided, however, with respect to  any  qualified  site
 for  which  [the  department  of environmental conservation has issued a
 notice to the taxpayer on or after July first, two thousand fifteen  but
 on  or  before  June  twenty-fourth,  two  thousand  twenty-one that its
 request for participation has been accepted  under  subdivision  six  of
 section  27-1407 of the environmental conservation law] A CERTIFICATE OF
 COMPLETION WAS ISSUED ON OR AFTER JULY FIRST, TWO THOUSAND  FIFTEEN  BUT
 ON  OR BEFORE JUNE TWENTY-FOURTH, TWO THOUSAND TWENTY-ONE, site prepara-
 tion shall include all costs paid or incurred within eighty-four  months
 after  the  last  day  of  the  tax  year  in  which  the certificate of
 completion is issued that are necessary for compliance with the  certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program  defined  in  such  certificate  of completion including but not
 limited to institutional controls,  engineering  controls,  an  approved
 site  management plan, and an environmental easement with respect to the
 qualified site. Site preparation cost shall not  include  the  costs  of
 foundation  systems  that  exceed  the  cover system requirements in the
 regulations applicable to the qualified site.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in effect on and after April 9, 2022.
 
                                 SUBPART C
 
   Section  1.  Paragraphs 1, 2 and 3 of subsection (h) of section 860 of
 the tax law, paragraph 1 as added by section 1 of part C of  chapter  59
 of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added
 by  section 2 of subpart A of part MM of chapter 59 of the laws of 2022,
 are amended to read as follows:
   (1) In the case of an electing partnership, the sum of (i)  all  items
 of  income,  gain, loss, or deduction derived from or connected with New
 York sources to the extent they are included in the taxable income of  a
 nonresident partner subject to tax under article twenty-two, under para-
 graph  one  of  subsection (a) of section six hundred thirty-two of this
 chapter; [and] (ii) all items of income, gain, loss, or deduction to the
 extent they are included in the taxable income  of  a  resident  partner
 subject  to  tax under article twenty-two of this chapter; AND (III) ALL
 PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW
 YORK, TAXES PAID UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY
 OF NEW YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIAL-
 LY SIMILAR TO THE TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT, FOR
 FEDERAL INCOME TAX PURPOSES, THE TAXES ARE  PAID  AND  DEDUCTED  IN  THE
 TAXABLE  YEAR,  AND  ARE  INCLUDED IN THE TAXABLE INCOME OF THE PARTNERS
 SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE  TAXABLE
 YEAR.
   (2)  In the case of an electing standard S corporation, the sum of (I)
 all items of income, gain, loss, or deduction derived from or  connected
 with  New  York sources to the extent they would be included under para-
 graph two of subsection (a) of section six hundred  thirty-two  of  this
 chapter  in  the  taxable  income  of a shareholder subject to tax under
 S. 4009                            26                            A. 3009
 
 article twenty-two of this chapter; AND  (II)  ALL  PASS-THROUGH  ENTITY
 TAXES  INCLUDING  TAXES  PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
 UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
 TAXES  PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMILAR TO THE
 TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT,  FOR  FEDERAL  INCOME
 TAX  PURPOSES,  THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND
 ARE INCLUDED IN THE TAXABLE INCOME OF THE SHAREHOLDERS  SUBJECT  TO  TAX
 UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   (3)  In the case of an electing resident S corporation, the sum of (I)
 all items of income, gain, loss, or deduction to  the  extent  they  are
 included  in  the  taxable  income of a shareholder subject to tax under
 article twenty-two of this chapter; AND  (II)  ALL  PASS-THROUGH  ENTITY
 TAXES  INCLUDING  TAXES  PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
 UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
 TAXES PAID TO OTHER JURISDICTIONS  THAT  ARE  SUBSTANTIALLY  SIMILAR  TO
 TAXES  PAID  UNDER  THIS ARTICLE, TO THE EXTENT THAT, FOR FEDERAL INCOME
 TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE  YEAR,  AND
 ARE  INCLUDED  IN  THE TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX
 UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   § 2. Subsection (c) of section 861 of  the  tax  law,  as  amended  by
 section  3 of subpart A of part MM of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (c) The annual election must be made [by] ON OR BEFORE the due date of
 the first estimated payment under section eight  hundred  sixty-four  of
 this article and will take effect for the current taxable year. Only one
 election  may  be made during each calendar year. An election made under
 this section is irrevocable [as of] AFTER the due date.
   § 3. Paragraphs 1 and 2 of subsection (b) of section 867  of  the  tax
 law,  as added by section 1 of subpart B of part MM of chapter 59 of the
 laws of 2022, are amended to read as follows:
   (1) In the case of an electing city partnership, the sum  of  (I)  all
 items  of  income,  gain,  loss,  or  deduction  to  the extent they are
 included in the city taxable income of a partner or member of the elect-
 ing city partnership who is a city taxpayer; AND (II)  ALL  PASS-THROUGH
 ENTITY  TAXES  INCLUDING  TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS
 CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE TO THE  CITY  OF  NEW
 YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMI-
 LAR  TO  TAXES  PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, TO THE
 EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE TAXES  WERE  PAID  AND
 DEDUCTED  IN  THE  TAXABLE  YEAR,  AND  THEY ARE INCLUDED IN THE TAXABLE
 INCOME OF THE PARTNERS SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO  OF  THIS
 CHAPTER FOR THE TAXABLE YEAR.
   (2) In the case of an electing city resident S corporation, the sum of
 (I)  all  items  of  income, gain, loss, or deduction to the extent they
 would be included in the city taxable income of  a  shareholder  of  the
 electing  city  resident  S corporation who is a city taxpayer; AND (II)
 ALL PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER  ARTICLE  TWEN-
 TY-FOUR-A  OF THIS CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE TO
 THE CITY OF NEW YORK, AND TAXES PAID TO  OTHER  JURISDICTIONS  THAT  ARE
 SUBSTANTIALLY  SIMILAR TO TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS
 CHAPTER, TO THE EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE  TAXES
 WERE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND THEY ARE INCLUDED IN THE
 TAXABLE  INCOME OF THE SHAREHOLDERS SUBJECT TO TAX UNDER ARTICLE TWENTY-
 TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
 S. 4009                            27                            A. 3009
 
   § 4. Subsection (e) of section 867 of the tax law, as added by section
 1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
 to read as follows:
   (e)  City  taxpayer. A city taxpayer means [a city resident individual
 subject to the tax imposed pursuant to the authority of  article  thirty
 of this chapter]:
   (1)  A  CITY  RESIDENT  INDIVIDUAL,  AS  DEFINED  IN SUBSECTION (A) OF
 SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER; AND
   (2) A CITY RESIDENT TRUST OR ESTATE, AS DEFINED IN SUBSECTION  (C)  OF
 SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER.
   § 5. Subsection (i) of section 867 of the tax law, as added by section
 1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
 to read as follows:
   (i) Eligible city partnership. Eligible  city  partnership  means  any
 partnership as provided for in section 7701(a)(2) of the Internal Reven-
 ue  Code that has a filing requirement under paragraph one of subsection
 (c) of section six hundred fifty-eight of  this  chapter  other  than  a
 publicly  traded  partnership as defined in section 7704 of the Internal
 Revenue Code, where at least one partner or member is a  city  [resident
 individual]  TAXPAYER. An eligible city partnership includes any entity,
 including a limited liability company,  treated  as  a  partnership  for
 federal  income  tax  purposes  that otherwise meets the requirements of
 this subsection.
   § 6. Subsection (j) of section 867 of the tax law, as added by section
 1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
 to read as follows:
   (j)  Eligible  city  resident  S corporation. Eligible city resident S
 corporation means any New York S  corporation  as  defined  pursuant  to
 subdivision  one-A  of section two hundred eight of this chapter that is
 subject to tax under section two hundred nine of this chapter  that  has
 only  city [resident individual] TAXPAYER shareholders. An eligible city
 resident S corporation includes any entity, including a limited  liabil-
 ity company, treated as an S corporation for federal income tax purposes
 that otherwise meets the requirements of this subsection.
   § 7. Subsection (c) of section 868 of the tax law, as added by section
 1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
 to read as follows:
   (c) The annual election to be taxed pursuant to this article  must  be
 made [by] ON OR BEFORE the due date of the first estimated payment under
 section  eight  hundred  sixty-four of this chapter and will take effect
 for the current taxable year. Only one election to be taxed pursuant  to
 this  article  may  be  made during each calendar year. An election made
 under this section is irrevocable [as of] AFTER such due  date.  To  the
 extent  an  election  made under section eight hundred sixty-one of this
 chapter is revoked or otherwise invalidated an election made under  this
 section is automatically invalidated.
   §  8. This act shall take effect immediately, provided, however, that:
 (i) sections one and two of this act shall be deemed  to  have  been  in
 full force and effect on and after the effective date of part C of chap-
 ter  59  of  the laws of 2021; (ii) sections three and seven of this act
 shall be deemed to have been in full force and effect on and  after  the
 effective date of section 1 of subpart B of part MM of chapter 59 of the
 laws  of  2022;  and (iii) sections four, five and six of this act shall
 apply to taxable years beginning on or after January 1, 2023.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 S. 4009                            28                            A. 3009
 
 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 dates of Subparts A through C of this act shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART K
 
   Section  1.  Paragraphs (a) and (d) of subdivision 1 of section 467 of
 the real property tax law, as amended by section 1 of part B of  chapter
 686 of the laws of 2022, are amended to read as follows:
   (a)  Real  property  owned  by  one  or  more persons, each of whom is
 sixty-five years of age or over, or real property owned by [husband  and
 wife]  A  MARRIED COUPLE or by siblings, one of whom is sixty-five years
 of age or over, or real property owned by one or more persons,  some  of
 whom  qualify  under  this  section and the others of whom qualify under
 section four hundred fifty-nine-c of this title, shall  be  exempt  from
 payments  in lieu of taxes (PILOT) to the battery park city authority or
 from taxation by any municipal  corporation  in  which  located  to  the
 extent  of  fifty per centum of the assessed valuation thereof, provided
 the governing board of such municipality, after public hearing, adopts a
 local law, ordinance or resolution providing therefor. For the  purposes
 of  this  section,  [sibling  shall  mean a brother or a sister, whether
 related] THE TERM "SIBLING" SHALL INCLUDE PERSONS WHOSE RELATIONSHIP  AS
 SIBLINGS  HAS BEEN ESTABLISHED through EITHER half blood, whole blood or
 adoption.
   (d) The real property tax or PILOT exemption on real property owned by
 [husband and wife] A MARRIED COUPLE, one of whom is sixty-five years  of
 age  or  over,  once  granted,  shall  not be rescinded by any municipal
 corporation solely because of the death of the older spouse so  long  as
 the surviving spouse is at least sixty-two years of age.
   §  2.  Subdivision  3  of section 467 of the real property tax law, as
 amended by section 1 of part B of chapter 686 of the laws of 2022, para-
 graph (a) as separately amended by chapter 488 of the laws of  2022,  is
 amended to read as follows:
   3. No exemption shall be granted:
   (a)(I) if the income of the owner or the combined income of the owners
 of  the property for the APPLICABLE income tax year [immediately preced-
 ing the date of making application for exemption]  exceeds  the  sum  of
 three  thousand  dollars, or such other sum not less than three thousand
 dollars nor more than [twenty-six thousand dollars beginning July first,
 two thousand six, twenty-seven thousand dollars  beginning  July  first,
 two  thousand seven, twenty-eight thousand dollars beginning July first,
 two thousand eight, twenty-nine thousand dollars beginning  July  first,
 two  thousand  nine,  fifty  thousand  dollars beginning July first, two
 thousand twenty-two, and in a city with a population of one  million  or
 more  fifty  thousand  dollars beginning July first, two thousand seven-
 teen,] FIFTY THOUSAND DOLLARS, as may be  provided  by  the  local  law,
 ordinance or resolution adopted pursuant to this section.
   (II)  Where  the taxable status date is on or before April fourteenth,
 THE APPLICABLE income tax year shall [mean] BE the  twelve-month  period
 S. 4009                            29                            A. 3009
 
 for which the owner or owners filed a federal personal income tax return
 for  the  year before the income tax year immediately preceding the date
 of application and where the taxable status date is on  or  after  April
 fifteenth,  THE  APPLICABLE  income tax year shall [mean] BE the twelve-
 month period for which the owner or  owners  filed  a  federal  personal
 income tax return for the income tax year immediately preceding the date
 of application.
   (III) Where title is vested in [either the husband or the wife, their]
 A  MARRIED  PERSON, THE combined income OF SUCH PERSON AND SUCH PERSON'S
 SPOUSE may not exceed such sum, except where [the husband  or  wife,  or
 ex-husband  or ex-wife] ONE SPOUSE OR EX-SPOUSE is absent from the prop-
 erty as provided in subparagraph (ii) of paragraph (d) of this  subdivi-
 sion,  then  only  the income of the spouse or ex-spouse residing on the
 property shall be considered and may not exceed such sum.  [Such  income
 shall  include  social security and retirement benefits, interest, divi-
 dends, total gain from the sale or exchange of a capital asset which may
 be offset by a loss from the sale or exchange of a capital asset in  the
 same  income  tax  year,  net rental income, salary or earnings, and net
 income from self-employment, but shall not include a return of  capital,
 gifts,  inheritances,  payments  made  to  individuals  because of their
 status as victims of Nazi persecution, as defined  in  P.L.  103-286  or
 monies  earned  through  employment  in  the  federal foster grandparent
 program and  any  such  income  shall  be  offset  by  all  medical  and
 prescription  drug  expenses  actually paid which were not reimbursed or
 paid for by insurance, if the governing board of a municipality, after a
 public hearing, adopts a local law, ordinance  or  resolution  providing
 therefor.  In  addition,  an  exchange  of  an  annuity  for  an annuity
 contract, which resulted in non-taxable gain, as determined  in  section
 one thousand thirty-five of the internal revenue code, shall be excluded
 from  such income. Provided that such exclusion shall be based on satis-
 factory proof that such an exchange was solely an exchange of an annuity
 for an annuity contract that resulted in a non-taxable  transfer  deter-
 mined  by  such  section of the internal revenue code. Furthermore, such
 income shall not include the proceeds of a reverse mortgage, as  author-
 ized  by  section  six-h  of  the  banking law, and sections two hundred
 eighty and two hundred eighty-a of  the  real  property  law;  provided,
 however,  that  monies  used  to  repay  a  reverse  mortgage may not be
 deducted from income, and provided additionally  that  any  interest  or
 dividends  realized  from  the  investment  of reverse mortgage proceeds
 shall be considered income. The provisions of  this  paragraph  notwith-
 standing,  such  income  shall  not  include veterans disability compen-
 sation, as defined in Title 38 of the United States  Code  provided  the
 governing  board  of  such  municipality, after public hearing, adopts a
 local law, ordinance or resolution providing therefor. In computing  net
 rental  income  and  net  income  from  self-employment  no depreciation
 deduction shall be allowed for the exhaustion, wear and tear of real  or
 personal property held for the production of income;]
   (IV)  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, PLUS ANY SOCIAL SECU-
 RITY BENEFITS NOT INCLUDED IN SUCH  ADJUSTED  GROSS  INCOME,  MINUS  ANY
 DISTRIBUTIONS,  TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME,
 RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIRE-
 MENT ANNUITY; PROVIDED THAT IF NO SUCH RETURN WAS FILED FOR THE APPLICA-
 BLE INCOME TAX YEAR, THE APPLICANT'S INCOME SHALL BE DETERMINED BASED ON
 S. 4009                            30                            A. 3009
 
 THE AMOUNTS THAT WOULD HAVE SO BEEN REPORTED IF SUCH A RETURN  HAD  BEEN
 FILED;  AND PROVIDED FURTHER, THAT THE GOVERNING BOARD OF A MUNICIPALITY
 MAY ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT ANY SOCIAL
 SECURITY  BENEFITS  THAT  WERE  NOT INCLUDED IN THE APPLICANT'S ADJUSTED
 GROSS INCOME SHALL  NOT  BE  CONSIDERED  INCOME  FOR  PURPOSES  OF  THIS
 SECTION;
   (b)  unless  the owner shall have held an exemption under this section
 for [his] THE OWNER'S previous residence or  unless  the  title  of  the
 property shall have been vested in the owner or one of the owners of the
 property  for  at  least  twelve consecutive months prior to the date of
 making application for exemption, provided, however, that in  the  event
 of  the  death  of  [either a husband or wife] A MARRIED PERSON in whose
 name title of the property shall have been vested at the time  of  death
 and then becomes vested solely in [the survivor] SUCH PERSON'S SURVIVING
 SPOUSE  by  virtue of devise by or descent from the deceased [husband or
 wife] SPOUSE, the time of ownership of  the  property  by  the  deceased
 [husband or wife] SPOUSE shall be deemed also a time of ownership by the
 [survivor]  SURVIVING  SPOUSE and such ownership shall be deemed contin-
 uous for the purposes of computing such  period  of  twelve  consecutive
 months.  In  the event of a transfer by [either a husband or wife to the
 other] A MARRIED PERSON TO SUCH PERSON'S spouse of all or  part  of  the
 title  to  the  property,  the  time of ownership of the property by the
 transferor spouse shall be deemed also a time of ownership by the trans-
 feree spouse and such ownership  shall  be  deemed  continuous  for  the
 purposes  of  computing  such period of twelve consecutive months. Where
 property of the owner or owners has been acquired  to  replace  property
 formerly  owned  by  such owner or owners and taken by eminent domain or
 other involuntary proceeding, except a tax sale, the period of ownership
 of the former property shall be combined with the period of ownership of
 the property for which application is made for exemption and such  peri-
 ods  of ownership shall be deemed to be consecutive for purposes of this
 section. Where a residence is sold and replaced with another within  one
 year  and  both residences are within the state, the period of ownership
 of both properties shall be  deemed  consecutive  for  purposes  of  the
 exemption from taxation by a municipality within the state granting such
 exemption. Where the owner or owners transfer title to property which as
 of  the  date  of  transfer  was exempt from taxation or PILOT under the
 provisions of this section, the reacquisition of title by such owner  or
 owners  within  nine  months  of the date of transfer shall be deemed to
 satisfy the requirement of this paragraph that the title of the property
 shall have been vested in the owner or one of the owners for such period
 of twelve consecutive months. Where, upon or subsequent to the death  of
 an owner or owners, title to property which as of the date of such death
 was exempt from taxation or PILOT under such provisions, becomes vested,
 by  virtue of devise or descent from the deceased owner or owners, or by
 transfer by any other means within nine months after such death,  solely
 in  a  person or persons who, at the time of such death, maintained such
 property as a primary residence, the requirement of this paragraph  that
 the  title of the property shall have been vested in the owner or one of
 the owners for such period of twelve consecutive months shall be  deemed
 satisfied;
   (c)  unless the property is used exclusively for residential purposes,
 provided, however, that in the event any portion of such property is not
 so used exclusively for residential  purposes  but  is  used  for  other
 purposes,  such  portion  shall  be subject to taxation or PILOT and the
 S. 4009                            31                            A. 3009

 remaining portion only shall be entitled to the  exemption  provided  by
 this section;
   (d) unless the real property is the legal residence of and is occupied
 in  whole or in part by the owner or by all of the owners of the proper-
 ty: except where, (i) an  owner  is  absent  from  the  residence  while
 receiving  health-related  care  as an inpatient of a residential health
 care facility, as defined in section twenty-eight  hundred  one  of  the
 public  health  law,  provided  that  any income accruing to that person
 shall only be income only to the extent that it exceeds the amount  paid
 by  such  owner,  spouse,  or  co-owner  for  care  in the facility, and
 provided further, that during such  confinement  such  property  is  not
 occupied  by  other  than the spouse or co-owner of such owner; or, (ii)
 the real property is owned by a [husband and/or wife, or  an  ex-husband
 and/or an ex-wife, and either] MARRIED PERSON OR A MARRIED COUPLE, OR BY
 A  FORMERLY  MARRIED PERSON OR A FORMERLY MARRIED COUPLE, AND ONE SPOUSE
 OR EX-SPOUSE is absent from the residence due to  divorce,  legal  sepa-
 ration  or  abandonment and all other provisions of this section are met
 provided that where  an  exemption  was  previously  granted  when  both
 resided  on the property, then the person remaining on the real property
 shall be sixty-two years of age or over.
   § 3. Paragraph (a) of subdivision 3-a of section 467 of the real prop-
 erty tax law, as amended by section 1 of part B of chapter  686  of  the
 laws of 2022, is amended to read as follows:
   (a)  For  the  purposes of this section, title to that portion of real
 property owned  by  a  cooperative  apartment  corporation  in  which  a
 tenant-stockholder  of such corporation resides and which is represented
 by [his] THE TENANT-STOCKHOLDER'S share  or  shares  of  stock  in  such
 corporation  as  determined by its or their proportional relationship to
 the total outstanding stock of the corporation, including that owned  by
 the  corporation, shall be deemed to be vested in such tenant-stockhold-
 er.
   § 4. Subdivisions 5 and 5-a of section 467 of the  real  property  tax
 law,  as  amended  by  section 1 of part B of chapter 686 of the laws of
 2022, are amended to read as follows:
   5. Application for such exemption must be made by the owner, or all of
 the owners of the property, on forms prescribed by the  commissioner  to
 be  furnished  by  the appropriate assessing authority and shall furnish
 the information and be executed in the manner required or prescribed  in
 such  forms,  and  shall be filed in such assessor's office on or before
 the appropriate taxable status date. Notwithstanding any other provision
 of law, at the option of the municipal corporation, any person otherwise
 qualifying under this section shall not be denied  the  exemption  under
 this  section  if [he] SUCH PERSON becomes sixty-five years of age after
 the appropriate taxable status date and on or  before  December  thirty-
 first of the same year.
   5-a.  Any  local law or ordinance adopted pursuant to paragraph (a) of
 subdivision one of this section may be amended, or a local law or  ordi-
 nance  may  be  adopted  to provide, notwithstanding subdivision five of
 this section, that an application for such exemption may be  filed  with
 the  assessor  after  the  appropriate taxable status date but not later
 than the last date on which a petition with  respect  to  complaints  of
 assessment  may  be  filed,  where  failure to file a timely application
 resulted from: (a) a death of the applicant's  spouse,  child,  parent[,
 brother  or sister] OR SIBLING; or (b) an illness of the applicant or of
 the applicant's spouse, child, parent[, brother or sister]  OR  SIBLING,
 which  actually prevents the applicant from filing on a timely basis, as
 S. 4009                            32                            A. 3009
 
 certified by a licensed physician. The assessor shall  approve  or  deny
 such application as if it had been filed on or before the taxable status
 date.
   §  5.  Subdivision  6  of section 467 of the real property tax law, as
 amended by section 1 of part B of chapter 686 of the laws  of  2022,  is
 amended to read as follows:
   6.  (a)  At  least  sixty days prior to the appropriate taxable status
 date, the assessing authority shall mail to each person who was  granted
 exemption  pursuant  to  this section on the latest completed assessment
 roll an application form and a notice  that  such  application  must  be
 filed  on or before the taxable status date and be approved in order for
 the exemption to be granted. The assessing authority shall, within three
 days of the completion and filing  of  the  tentative  assessment  roll,
 notify  by mail any applicant [who has included with his] WHOSE applica-
 tion INCLUDES at least one self-addressed,  pre-paid  envelope,  of  the
 approval  or  denial  of  the  application;  provided, however, that the
 assessing authority shall, upon the receipt and filing of  the  applica-
 tion,  send  by  mail  notification  of receipt to any applicant who has
 included two of such envelopes with the application. Where an  applicant
 is  entitled  to  a  notice of denial pursuant to this subdivision, such
 notice shall be on a form prescribed by the commissioner and shall state
 the reasons for such denial and shall further state that  the  applicant
 may  have  such  determination  reviewed  in the manner provided by law.
 Failure to mail any such application form or notices or the  failure  of
 such  person  to  receive  any  of  the same shall not prevent the levy,
 collection and enforcement of the payment of the taxes or PILOT on prop-
 erty owned by such person.
   (b) Except in cities of one million or more, any person who  has  been
 granted  exemption  pursuant  to  this  section  on five (5) consecutive
 completed assessment rolls, including any years when the  exemption  was
 granted  to a property owned by [a husband and/or wife] A MARRIED PERSON
 OR A MARRIED COUPLE while both SPOUSES resided in such  property,  shall
 not  be  subject  to the requirements set forth in paragraph (a) of this
 subdivision provided the governing board of the  municipality  in  which
 said property is situated after public hearing adopts a local law, ordi-
 nance  or  resolution  providing  therefor  however said person shall be
 mailed an application form and a notice [informing him of  his]  SETTING
 FORTH SUCH PERSON'S rights. Such exemption shall be automatically grant-
 ed  on each subsequent assessment roll. Provided, however, that when tax
 payment is made by such person a sworn affidavit must be  included  with
 such payment which shall state that such person continues to be eligible
 for  such exemption. Such affidavit shall be on a form prescribed by the
 commissioner. If such affidavit is not included with  the  tax  payment,
 the  collecting  officer  shall proceed pursuant to section five hundred
 fifty-one-a of this chapter.
   (c) In cities of one million or more, any person who has been  granted
 exemption  pursuant to this section shall file the completed application
 with the appropriate assessing authority every twenty-four  months  from
 the date such exemption was granted without the necessity of having been
 granted  exemption  pursuant  to  this  section  on five (5) consecutive
 completed assessment rolls including any years when  the  exemption  was
 granted  to a property owned by [a husband and/or wife] A MARRIED PERSON
 OR A MARRIED COUPLE while both SPOUSES resided in such property.
   § 6. Subdivision 8-a of section 467 of the real property tax  law,  as
 amended  by  section  1 of part B of chapter 686 of the laws of 2022, is
 amended to read as follows:
 S. 4009                            33                            A. 3009
 
   8-a. Notwithstanding any provision of law to the contrary,  the  local
 governing  body of a municipal corporation that is authorized to adopt a
 local law pursuant to subdivision  eight  of  this  section  is  further
 authorized  to adopt a local law providing that where a renewal applica-
 tion  for the exemption authorized by 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 renewal application by that
 date, the owner may, no later than the last  day  for  paying  taxes  or
 PILOT without incurring interest or penalty, submit a written request to
 the assessor asking [him or her] THE ASSESSOR to extend the filing dead-
 line  and grant the exemption. Such request shall contain an explanation
 of why the deadline was missed, and shall be accompanied  by  a  renewal
 application,  reflecting  the facts and circumstances as they existed on
 the taxable status date. The assessor may extend the filing deadline and
 grant the exemption if [he or she] THE ASSESSOR is  satisfied  that  (i)
 good  cause  existed  for the failure to file the renewal application by
 the taxable status date, and that (ii) the applicant is otherwise  enti-
 tled  to the exemption. The assessor shall MAKE A DETERMINATION AND mail
 notice [of his or her determination] THEREOF to the owner. If the deter-
 mination states that the assessor has granted the exemption, [he or she]
 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 appro-
 priate corrections. If the correction  is  not  made  before  taxes  are
 levied,  the  failure to take the exemption into account in the computa-
 tion of the tax shall be deemed a "clerical error" for purposes of title
 three of article five of this chapter, and shall be corrected according-
 ly.
   § 7. This act shall take effect immediately and  shall  apply  to  all
 applications for exemptions pursuant to section 467 of the real property
 tax  law  on  assessment  rolls  that  are based on taxable status dates
 occurring on and after October 1, 2023.
 
                                  PART L
 
   Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
 real  property  tax  law  relating to oil and gas charges, as amended by
 section 1 of part C of chapter 59 of the laws of  2020,  is  amended  to
 read as follows:
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 1992; provided,
 however that any charges imposed by section 593 of the real property tax
 law as added by section one of this act shall first be  due  for  values
 for assessment rolls with tentative completion dates after July 1, 1992,
 and  provided  further,  that  this  act  shall remain in full force and
 effect until March 31, [2024] 2027, at which time  section  593  of  the
 real  property  tax  law  as  added  by section one of this act shall be
 repealed.
   § 2. This act shall take effect immediately.
 
                                  PART M
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 989 to read as follows:
   §  989.  DISTRIBUTION  OF  SURPLUS IN TAX ENFORCEMENT PROCEEDINGS.  1.
 NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL  LAW  TO
 S. 4009                            34                            A. 3009

 THE  CONTRARY,  WHEN  A  PROPERTY  OWNER IS DIVESTED OF TITLE DUE TO THE
 FORECLOSURE OF A DELINQUENT REAL PROPERTY TAX LIEN ON THE PROPERTY,  AND
 THE  PROPERTY  IS SOLD TO A THIRD PARTY, THE PROCEEDS OF SUCH SALE SHALL
 BE DISTRIBUTED AS FOLLOWS:
   (A)  IF  THE  PROCEEDS OF THE SALE ARE LESS THAN OR EQUAL TO THE TOTAL
 TAXES DUE ON THE PROPERTY PLUS INTEREST,  PENALTIES  AND  OTHER  CHARGES
 DULY IMPOSED UPON THE PROPERTY, INCLUDING THE ADMINISTRATIVE COSTS ASSO-
 CIATED  WITH  THE FORECLOSURE PROCESS, THE ENTIRE PROCEEDS SHALL BE PAID
 TO THE LOCAL GOVERNMENT.
   (B) IF THE PROCEEDS OF THE SALE EXCEED THE  TOTAL  TAXES  DUE  ON  THE
 PROPERTY  PLUS  INTEREST,  PENALTIES AND OTHER CHARGES DULY IMPOSED UPON
 THE PROPERTY, INCLUDING THE ADMINISTRATIVE  COSTS  ASSOCIATED  WITH  THE
 FORECLOSURE PROCESS, THE EXCESS SHALL BE DISTRIBUTED AS FOLLOWS:
   (I) IF THE PROPERTY IS NOT SUBJECT TO OTHER LIENS, THE EXCESS PROCEEDS
 SHALL BE PAID TO THE PRIOR OWNER OR OWNERS OF THE PROPERTY.
   (II)  IF THE PROPERTY IS SUBJECT TO OTHER LIENS, THE LIENHOLDERS SHALL
 BE PAID FROM THE EXCESS PROCEEDS IN THE  SAME  ORDER  AND  TO  THE  SAME
 EXTENT AS THEY WOULD BE IN AN ACTION TO FORECLOSE A MORTGAGE PURSUANT TO
 ARTICLE  THIRTEEN  OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW. ANY
 PROCEEDS REMAINING AFTER THE OTHER LIENHOLDERS HAVE BEEN SO  PAID  SHALL
 BE PAID TO THE PRIOR OWNER OR OWNERS OF THE PROPERTY.
   2. THE PROVISIONS OF THIS SECTION SHALL APPLY WHETHER PROPERTY IS SOLD
 THROUGH A PUBLIC AUCTION OR OTHERWISE.
   3.  WHEN A FORECLOSURE CONCLUDES WITH THE TAX DISTRICT TAKING TITLE TO
 PROPERTY, THE PROVISIONS OF THIS SECTION  SHALL  NOT  APPLY  UNLESS  AND
 UNTIL  THE  TAX  DISTRICT  SELLS THE PROPERTY TO A THIRD PARTY; PROVIDED
 THAT IN SUCH A CASE, IF THERE ARE EXCESS PROCEEDS  TO  BE  PAID  TO  THE
 PRIOR  OWNER  OR  OWNERS OF THE PROPERTY, SUCH PROCEEDS SHALL BE PAID TO
 THE OWNER OR OWNERS OF THE PROPERTY PRIOR TO ITS ACQUISITION BY THE  TAX
 DISTRICT.
   4.  THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE ENFORCEMENT
 OF TAX LIENS ON ABANDONED REAL PROPERTY. FOR PURPOSES OF  THIS  SECTION,
 REAL PROPERTY SHALL BE DEEMED ABANDONED IF IT:
   (A)  HAS  BEEN INCLUDED ON A LOCAL MUNICIPAL ROLL, REGISTRY OR LIST OF
 VACANT AND ABANDONED RESIDENTIAL PROPERTY  PURSUANT  TO  SECTION  ELEVEN
 HUNDRED ELEVEN-A OF THIS CHAPTER, OR
   (B)  HAS  BEEN  CERTIFIED  AS  ABANDONED COMMERCIAL OR INDUSTRIAL REAL
 PROPERTY PURSUANT TO ARTICLE NINETEEN-A OF THE REAL PROPERTY ACTIONS AND
 PROCEEDINGS LAW, OR
   (C) HAS BEEN INCLUDED ON THE STATEWIDE REGISTRY OF  VACANT  AND  ABAN-
 DONED  PROPERTY  PURSUANT  TO  SECTION  THIRTEEN HUNDRED TEN OF THE REAL
 PROPERTY ACTIONS AND PROCEEDINGS LAW.
   5. THIS SECTION SHALL BE CONSTRUED TO SUPERSEDE ALL  GENERAL,  SPECIAL
 AND  LOCAL LAWS RELATING TO TAX ENFORCEMENT TO THE EXTENT THAT SUCH LAWS
 WOULD OTHERWISE ALLOW THE PROCEEDS OF A SALE  TO  BE  DISTRIBUTED  IN  A
 MANNER  OTHER  THAN  AS  SET  FORTH IN THIS SECTION. THIS SECTION IS NOT
 INTENDED TO SUPERSEDE SUCH LAWS IN OTHER RESPECTS.
   § 2. Subdivision 2 of section 1104 of the real property  tax  law,  as
 amended  by  chapter 532 of the laws of 1994, paragraph (iii) as further
 amended by subdivision (b) of section 1 of part W of chapter 56  of  the
 laws of 2010, is amended to read as follows:
   2. The provisions of this article shall not be applicable to a county,
 city or town which: (i) on January first, nineteen hundred ninety-three,
 was authorized to enforce the collection of delinquent taxes pursuant to
 a county charter, city charter, administrative code or special law; (ii)
 adopted  a local law, no later than July first, nineteen hundred ninety-
 S. 4009                            35                            A. 3009
 
 four, providing that the collection of taxes in  such  county,  city  or
 town  shall  continue  to  be enforced pursuant to such charter, code or
 special law, as such charter, code or special law may from time to  time
 be  amended;  and  (iii) filed a copy of such local law with the commis-
 sioner  no  later  than  August  first,  nineteen  hundred  ninety-four.
 PROVIDED,  HOWEVER,  THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO
 EXEMPT ANY SUCH COUNTY, CITY OR TOWN FROM THE PROVISIONS OF SECTION NINE
 HUNDRED EIGHTY-NINE OF THIS CHAPTER.
   § 3. Subdivision 1 of section 1166 of the real property  tax  law,  as
 amended  by  chapter  500  of  the  laws  of 2015, is amended to read as
 follows:
   1. Whenever any tax district shall become vested  with  the  title  to
 real  property by virtue of a foreclosure proceeding brought pursuant to
 the provisions of this article, such tax district is  hereby  authorized
 to  sell  and  convey the real property so acquired, which shall include
 any and all gas, oil or mineral rights associated with such real proper-
 ty, either with or without advertising  for  bids,  notwithstanding  the
 provisions  of any general, special or local law.  THE PROCEEDS OBTAINED
 FROM ANY SUCH SALE SHALL  BE  DISTRIBUTED  IN  THE  MANNER  PROVIDED  BY
 SECTION NINE HUNDRED EIGHTY-NINE OF THIS CHAPTER.
   §  4.  This  act shall take effect October 1, 2023, and shall apply to
 all tax foreclosure proceedings commenced on and after such date.
 
                                  PART N

   Section 1. Section 575-b of the real property tax law  is  amended  by
 adding a new subdivision 1-a to read as follows:
   1-A.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE SOLAR
 OR WIND ENERGY SYSTEM APPRAISAL MODEL AUTHORIZED BY THIS  SECTION  SHALL
 BE  IDENTIFIED, FORMULATED, ADOPTED, PUBLISHED, AND UPDATED PERIODICALLY
 IN THE MANNER PROVIDED IN THIS SECTION WITHOUT REGARD TO THE  PROVISIONS
 OF ARTICLE TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
   §  2. Subparagraph (viii) of paragraph (b) of subdivision 2 of section
 102 of the state administrative procedure act, as amended by chapter  74
 of the laws of 1987, is amended to read as follows:
   (viii)  APPRAISAL  MODELS,  DISCOUNT  RATES, state equalization rates,
 class ratios, special equalization rates and special equalization ratios
 established pursuant to the real property tax law;
   § 3.  No assessing unit that failed to use the appraisal model  pursu-
 ant  to section 575-b of the real property tax law in 2022 shall be held
 liable for failing to use such model in 2022. Within fifteen  days  from
 the effective date of this act, the commissioner of taxation and finance
 may  readopt  the  2022 appraisal model or models and discount rates for
 use in 2023, without additional consultation with  the  New  York  state
 energy  research  and development authority or the New York state asses-
 sors association,  and  without  soliciting  or  considering  additional
 public comments.
   §  4.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after the  effective  date  of
 part X of chapter 59 of the laws of 2021.

                                  PART O
 
   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:
 S. 4009                            36                            A. 3009
 
   (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;
   (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; (IV) THE ONE  AND  THREE-QUARTERS  PERCENT  ADDI-
 TIONAL  RATE TO BE IMPOSED BY THE COUNTY OF ERIE SHALL BE SUBJECT TO THE
 LIMITATIONS SET FORTH IN SECTION  TWELVE  HUNDRED  SIXTY-TWO-Q  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,
 S. 4009                            37                            A. 3009
 
 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.  Subdivision (a) of section 1223 of the tax law,  as  amended  by
 chapter 44 of the laws of 2019, is amended to read as follows:
   (a)  No  transaction taxable under sections twelve hundred two through
 twelve hundred four of this article shall  be  taxed  pursuant  to  this
 article  by any county or by any city located therein, or by both, at an
 aggregate rate in excess of the highest rate set forth in the applicable
 subdivision of section twelve hundred one of this  article  or,  in  the
 case  of  any  taxes imposed pursuant to the authority of section twelve
 hundred ten or twelve hundred eleven of this article (other  than  taxes
 imposed  by the county of Nassau, Erie, [Steuben, Cattaraugus, Suffolk,]
 Oneida, [Genesee, Greene, Franklin, Hamilton,] Herkimer,  [Tioga,  Orle-
 ans,]  AND  Allegany[,  Ulster,  Albany,  Rensselaer, Tompkins, Wyoming,
 Columbia, Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca,  Sulli-
 van,  Wayne,  Livingston,  Schenectady,  Montgomery,  Delaware, Clinton,
 Niagara, Yates, Lewis, Essex, Dutchess, Schoharie,  Putnam,  Chautauqua,
 Orange, Oswego, Ontario, Jefferson, St. Lawrence, Westchester or Ononda-
 ga  and  by  the  county of Cortland and the city of Cortland and by the
 county of Broome and the city of Binghamton and by the county of  Cayuga
 and  the  city  of  Auburn  and  by the county of Otsego and the city of
 Oneonta and by the county of Madison and the city of Oneida and  by  the
 county  of Fulton and the city of Gloversville or the city of Johnstown]
 as provided in section twelve hundred ten of this article) at a rate  in
 excess of [three] FOUR percent, except that, in the city of Yonkers[, in
 the  city  of  Mount Vernon, in the city of New Rochelle, in the city of
 Fulton, in the city of Oswego, and in the city  of  White  Plains,]  the
 rate  may not be in excess of four AND ONE-HALF percent, and except that
 in the city of Poughkeepsie in the county of Dutchess,  if  such  county
 withdraws  from the metropolitan commuter transportation district pursu-
 ant to section twelve hundred seventy-nine-b of the  public  authorities
 law  and  if  the revenues from a three-eighths percent rate of such tax
 imposed by such county, pursuant to  the  authority  of  section  twelve
 hundred  ten  of this article, are required by local laws, ordinances or
 resolutions to be set aside for mass transportation purposes,  the  rate
 may not be in excess of [three] FOUR and three-eighths percent.
 S. 4009                            38                            A. 3009
 
   §  7.  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.
   § 8. 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. 4009                            39                            A. 3009
 
 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.
   § 9. Subdivision (b) of section 1262-b of the tax law is REPEALED.
   § 10. Section 1262-e of the tax law, as amended by section 2  of  item
 BB  of  subpart  C  of  part  XXX  of chapter 58 of the laws of 2020, is
 amended to read as follows:
   § 1262-e. Establishment of local  government  assistance  programs  in
 Nassau  county. 1. Towns and cities. Notwithstanding any other provision
 of law to the contrary, for  the  calendar  year  beginning  on  January
 first, nineteen hundred ninety-eight and continuing through the calendar
 year  beginning  on  January  first, two thousand twenty-three, AND EACH
 CALENDAR YEAR THEREAFTER BEGINNING  ON  JANUARY  FIRST,  the  county  of
 Nassau  shall  enact and establish a local government assistance program
 for the towns and cities within such county to  assist  such  towns  and
 cities  to  minimize real property taxes; defray the cost and expense of
 the treatment, collection, management, disposal, and  transportation  of
 municipal  solid waste, and to comply with the provisions of chapter two
 hundred ninety-nine of the laws of nineteen  hundred  eighty-three;  and
 defray  the  cost  of maintaining conservation and environmental control
 programs. Such special assistance program for the towns and cities with-
 in such county and the funding for such program shall equal one-third of
 the revenues received by such county from the imposition of  the  three-
 quarters  percent  sales  and use tax during calendar years two thousand
 one, two thousand two, two thousand three, two thousand four, two  thou-
 sand five, two thousand six, two thousand seven, two thousand eight, two
 thousand  nine,  two  thousand  ten,  two  thousand eleven, two thousand
 twelve, two thousand  thirteen,  two  thousand  fourteen,  two  thousand
 fifteen,  two  thousand  sixteen,  two  thousand seventeen, two thousand
 eighteen, two thousand nineteen, two thousand twenty, two thousand twen-
 ty-one, two thousand twenty-two [and],  two  thousand  twenty-three  AND
 EACH  CALENDAR  YEAR  THEREAFTER additional to the regular three percent
 rate authorized for such county in section twelve hundred  ten  of  this
 article.  The monies for such special local assistance shall be paid and
 distributed to the towns and cities on a  per  capita  basis  using  the
 population  figures  in  the  latest  decennial federal census. Provided
 further, that notwithstanding any other law to the contrary, the  estab-
 lishment  of  such special assistance program shall preclude any city or
 town within such county from preempting  or  claiming  under  any  other
 section  of  this  chapter  the revenues derived from the additional tax
 authorized by section twelve  hundred  ten  of  this  article.  Provided
 further,  that  any  such  town  or towns may, by resolution of the town
 board, apportion all or a  part  of  monies  received  in  such  special
 assistance  program  to  an  improvement  district  or  special district
 account within such town or towns in order to accomplish the purposes of
 this special assistance program.
   2. Villages. Notwithstanding any other provision of law to the contra-
 ry, for the calendar year beginning on January first,  nineteen  hundred
 ninety-eight and continuing through the calendar year beginning on Janu-
 ary first, two thousand twenty-three, AND EACH CALENDAR YEAR THEREAFTER,
 the  county  of  Nassau,  by local law, is hereby empowered to enact and
 establish a local government assistance program for the villages  within
 such  county  to  assist  such villages to minimize real property taxes;
 defray the cost and expense of the  treatment,  collection,  management,
 S. 4009                            40                            A. 3009
 
 disposal,  and  transportation  of municipal solid waste; and defray the
 cost of maintaining conservation and environmental control programs. The
 funding of such local assistance program for the  villages  within  such
 county  may  be  provided  by  Nassau county during any calendar year in
 which such village local assistance program is in effect and  shall  not
 exceed  one-sixth  of  the  revenues received from the imposition of the
 three-quarters percent sales and use tax that are  remaining  after  the
 towns  and cities have received their funding pursuant to the provisions
 of subdivision one of this section.  The funding for such village  local
 assistance  program  shall  be paid and distributed to the villages on a
 per capita basis using the population figures in  the  latest  decennial
 federal census. Provided further, that the establishment of such village
 local  assistance  program shall preclude any village within such county
 from preempting or claiming under any other section of this chapter  the
 revenues  derived  from  the additional tax authorized by section twelve
 hundred ten of this article.
   § 11. 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
 S. 4009                            41                            A. 3009

 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
 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.
   §  12. Section 1262-h of the tax law, as amended by chapter 315 of the
 laws of 2020, is amended to read as follows:
   § 1262-h. Allocation and distribution  of  net  collections  from  the
 additional one percent rate of sales and compensating use taxes in Steu-
 ben county. Notwithstanding any provision of law to the contrary, of the
 net  collections  received  by  the county of Steuben as a result of the
 imposition of the additional one  percent  rate  of  tax  authorized  by
 section twelve hundred ten of this article [(a) during the period begin-
 ning  December  first, nineteen hundred ninety-three and ending November
 thirtieth, nineteen hundred ninety-four, the county of Steuben shall pay
 or cause to be paid to the city of Hornell the sum of two hundred  thou-
 sand  dollars,  to the city of Corning the sum of three hundred thousand
 dollars, and the sum of five hundred thousand dollars to the  towns  and
 villages  of  the county of Steuben, on the basis of the ratio which the
 full valuation of real property in each town or  village  bears  to  the
 aggregate  full  valuation  of  real  property  in  all of the towns and
 villages in such area. Of the net collections received by the county  of
 Steuben  as  a  result  of the imposition of said additional one percent
 rate of tax authorized by section twelve hundred  ten  of  this  article
 during the period beginning December first, nineteen hundred ninety-four
 and  ending November thirtieth, nineteen hundred ninety-five, the county
 of Steuben shall pay or cause to be paid to the city of Hornell the  sum
 of  three  hundred  thousand  dollars, to the city of Corning the sum of
 four hundred fifty thousand dollars, and the sum of seven hundred  fifty
 thousand  dollars to the towns and villages of the county of Steuben, on
 the basis of the ratio which the full valuation of real property in each
 town or village bears to the aggregate full valuation of  real  property
 in all of the towns and villages in such area; and (b) during the period
 beginning December first, nineteen hundred ninety-five and ending Novem-
 ber  thirtieth, two thousand seven, the county of Steuben shall annually
 pay or cause to be paid to the city of Hornell the sum of  five  hundred
 S. 4009                            42                            A. 3009

 fifty  thousand  dollars,  to the city of Corning the sum of six hundred
 thousand dollars, and the sum of seven hundred fifty thousand dollars to
 the towns and villages of the county of Steuben, on  the  basis  of  the
 ratio  which the full valuation of real property in each town or village
 bears to the aggregate full valuation of real property  in  all  of  the
 towns  and villages in such area; and during the period beginning Decem-
 ber first, two thousand seven and ending November thirtieth,  two  thou-
 sand  nine, the county of Steuben shall annually pay or cause to be paid
 to the city of Hornell the sum of six hundred ten thousand  dollars,  to
 the  city  of Corning the sum of six hundred fifty thousand dollars, and
 the sum of seven  hundred  fifty  thousand  dollars  to  the  towns  and
 villages  of  the county of Steuben, on the basis of the ratio which the
 full valuation of real property in each town or  village  bears  to  the
 aggregate  full  valuation  of  real  property  in  all of the towns and
 villages in such area; and during the period beginning  December  first,
 two  thousand  nine  and ending November thirtieth, two thousand eleven,
 the county of Steuben shall annually pay or cause to be paid to the city
 of Hornell the sum of seven hundred ten thousand dollars, to the city of
 Corning the sum of seven hundred ten thousand dollars, and  the  sum  of
 seven  hundred  fifty  thousand dollars to the towns and villages of the
 county of Steuben, on the basis of the ratio which the full valuation of
 real property in each town or village bears to the aggregate full  valu-
 ation  of  real  property in all of the towns and villages in such area;
 and during the period beginning December first, two thousand eleven  and
 ending  November thirtieth, two thousand thirteen, the county of Steuben
 shall annually pay or cause to be paid to the city of Hornell the sum of
 seven hundred forty thousand dollars, to the city of Corning the sum  of
 seven hundred forty thousand dollars, and the sum of seven hundred fifty
 thousand  dollars to the towns and villages of the county of Steuben, on
 the basis of the ratio which the full valuation of real property in each
 town or village bears to the aggregate full valuation of  real  property
 in  all  of  the  towns and villages in such area; and during the period
 beginning December first, two  thousand  thirteen  and  ending  November
 thirtieth,  two  thousand  fifteen, the county of Steuben shall annually
 pay or cause to be paid to the city of Hornell the sum of seven  hundred
 sixty-five  thousand  dollars,  to  the city of Corning the sum of seven
 hundred sixty-five thousand dollars, and the sum of seven hundred  fifty
 thousand  dollars to the towns and villages of the county of Steuben, on
 the basis of the ratio which the full valuation of real property in each
 town or village bears to the aggregate full valuation of  real  property
 in  all  of  the  towns and villages in such area; and during the period
 beginning December first, two thousand fifteen and ending November thir-
 tieth, two thousand seventeen, the county of Steuben shall annually  pay
 or  cause  to  be  paid  to the city of Hornell the sum of seven hundred
 sixty-five thousand dollars, to the city of Corning  the  sum  of  seven
 hundred  sixty-five thousand dollars, and the sum of seven hundred fifty
 thousand dollars to the towns and villages of the county of Steuben,  on
 the basis of the ratio which the full valuation of real property in each
 town  or  village bears to the aggregate full valuation of real property
 in all of the towns and villages in such area;  and  during  the  period
 beginning  December  first,  two  thousand seventeen and ending November
 thirtieth, two thousand twenty, the county of Steuben shall annually pay
 or cause to be paid to the city of Hornell  the  sum  of  seven  hundred
 eighty thousand dollars, to the city of Corning the sum of seven hundred
 eighty  thousand  dollars,  and  the sum of seven hundred fifty thousand
 dollars to the towns and villages of the county of Steuben, on the basis
 S. 4009                            43                            A. 3009

 of the ratio which the full valuation of real property in each  town  or
 village bears to the aggregate full valuation of real property in all of
 the  towns  and  villages  in  such area; and during the] FOR ANY period
 beginning  ON  OR  AFTER December first, two thousand twenty [and ending
 November thirtieth, two thousand twenty-three], the  county  of  Steuben
 shall annually pay or cause to be paid to the city of Hornell the sum of
 eight hundred twenty thousand dollars, to the city of Corning the sum of
 eight  hundred  twenty  thousand  dollars,  and the sum of seven hundred
 ninety thousand dollars to the towns and villages of the county of Steu-
 ben, on the basis of the ratio which the full valuation of real property
 in each town or village bears to the aggregate full  valuation  of  real
 property in all of the towns and villages in such area.
   §  13. Subdivision (c) of section 1262-j of the tax law, as amended by
 section 2 of item TT of subpart C of part XXX of chapter 58 of the  laws
 of 2020, is amended to read as follows:
   (c)  Notwithstanding  any provision of law to the contrary, of the net
 collections received by the  county  of  Suffolk  as  a  result  of  the
 increase  of one percent to the tax authorized by section twelve hundred
 ten of this article for [the] ANY period beginning OR AFTER June  first,
 two  thousand  one  [and ending November thirtieth, two thousand twenty-
 three], imposed by local laws or resolutions (by simple majority) by the
 county legislature, and signed by the county executive,  the  county  of
 Suffolk  shall  allocate  such  net collections as follows: no less than
 one-eighth and no  more  than  three-eighths  of  such  net  collections
 received  shall  be dedicated for public safety purposes and the balance
 shall be deposited in the general fund of the county of Suffolk.
   § 14. Section 1262-l of the tax law, as amended by section 2  of  item
 MM  of  subpart  C  of  part  XXX  of chapter 58 of the laws of 2020, is
 amended to read as follows:
   § 1262-1. Allocation and distribution  of  net  collections  from  the
 additional rate of sales and compensating use tax in Rockland county. 1.
 Notwithstanding  any  provision of law to the contrary, if the county of
 Rockland imposes the additional five-eighths of one percent rate of  tax
 authorized  by  section  twelve hundred ten of this article [during the]
 FOR EACH period beginning ON OR AFTER March  first,  two  thousand  two,
 [and  ending November thirtieth, two thousand twenty-three,] such county
 shall allocate and distribute twenty percent of the net collections from
 such additional rate to the towns and villages in the county in  accord-
 ance  with  subdivision  (c) of section twelve hundred sixty-two of this
 part on the basis of the ratio which the population of each such town or
 village bears to such county's total population; and
   2. Notwithstanding any provision of law to the contrary, if the county
 of Rockland imposes the additional three-eighths of one percent rate  of
 tax  authorized  by  section  twelve hundred ten of this article [during
 the] FOR ANY period beginning ON OR  AFTER  March  first,  two  thousand
 seven,  [and ending November thirtieth, two thousand twenty-three,] such
 county shall allocate and distribute [sixteen  and  two-thirds]  THIRTY-
 THREE  AND ONE-THIRD percent of the net collections from such additional
 rate to the general funds of towns and villages  within  the  county  of
 Rockland  with  existing town and village police departments from [March
 first, two thousand seven through December  thirty-first,  two  thousand
 seven and thirty-three and one-third percent of the net collections from
 such  additional  rate  from] January first, two thousand eight [through
 November thirtieth,  two  thousand  twenty-three]  AND  THEREAFTER.  The
 monies  allocated  and distributed pursuant to this subdivision shall be
 allocated and distributed to towns and villages with police  departments
 S. 4009                            44                            A. 3009
 
 on  the  basis  of  the  number  of full-time equivalent police officers
 employed by each police department and shall not be  used  for  salaries
 heretofore or hereafter negotiated.
   §  15.  Section 1262-n of the tax law, as amended by section 2 of item
 CC of subpart C of part XXX of chapter  58  of  the  laws  of  2020,  is
 amended to read as follows:
   §  1262-n.  Disposition  of  net  collections  from the additional one
 percent rate of sales and  compensating  use  taxes  in  the  county  of
 Niagara.    Notwithstanding any contrary provision of law, if the county
 of Niagara imposes the additional one percent rate of sales and  compen-
 sating  use taxes authorized by section twelve hundred ten of this arti-
 cle for all or any portion of [the] EACH period beginning  ON  OR  AFTER
 March  first,  two  thousand  three  [and ending November thirtieth, two
 thousand twenty-three,] the county shall use all  net  collections  from
 such  additional one percent rate to pay the county's expenses for Medi-
 caid. The net collections from the additional one percent  rate  imposed
 pursuant  to  this  section  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 one percent tax, after the Medicaid expenses are paid,  shall
 be deposited by the county of Niagara in the general fund of such county
 for any county purpose.
   § 16. Section 1262-o of the tax law, as amended by section 2 of item F
 of  subpart  C of part XXX of chapter 58 of the laws of 2020, is amended
 to read as follows:
   § 1262-o. Disposition of net collections from the additional  rate  of
 sales and compensating use taxes in the county of Chautauqua.  [Notwith-
 standing  any  contrary  provision  of  law, if the county of Chautauqua
 imposes the additional one and one-quarter percent  rate  of  sales  and
 compensating  use taxes authorized by section twelve hundred ten of this
 article for all or any portion of the period beginning March first,  two
 thousand  five  and  ending  August  thirty-first, two thousand six, the
 additional one percent rate authorized by such section for all or any of
 the period beginning September first, two thousand six and ending Novem-
 ber thirtieth, two thousand seven, the additional three-quarters of  one
 percent  rate  authorized  by  such section for all or any of the period
 beginning December first, two thousand seven and ending November thirti-
 eth, two thousand ten, the county shall allocate one-fifth  of  the  net
 collections  from  the  additional  three-quarters of one percent to the
 cities, towns and villages in the county on the basis of  their  respec-
 tive  populations,  determined  in  accordance with the latest decennial
 federal census or special population 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, and allocate the
 remainder of the net collections from the additional  three-quarters  of
 one  percent  as  follows: (1) to pay the county's expenses for Medicaid
 and other expenses required by law; (2) to pay for local road and bridge
 projects; (3) for the purposes of  capital  projects  and  repaying  any
 debts  incurred  for  such  capital projects in the county of Chautauqua
 that are not otherwise paid for by revenue received  from  the  mortgage
 recording  tax;  and  (4)  for  deposit  into  a reserve fund for bonded
 indebtedness established pursuant to the general municipal law. Notwith-
 standing any contrary provision of law,  if  the  county  of  Chautauqua
 imposes  the  additional one-half percent rate of sales and compensating
 use taxes authorized by such section twelve hundred ten for all  or  any
 of  the  period  beginning  December  first, two thousand ten and ending
 S. 4009                            45                            A. 3009

 November thirtieth, two thousand  fifteen,  the  county  shall  allocate
 three-tenths  of the net collections from the additional one-half of one
 percent to the cities, towns and villages in the county on the basis  of
 their  respective  populations, determined in accordance with the latest
 decennial federal census or special population 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,  and
 allocate  the  remainder of the net collections from the additional one-
 half of one percent as follows: (1) to pay  the  county's  expenses  for
 Medicaid  and  other expenses required by law; (2) to pay for local road
 and bridge projects; (3) for the purposes of capital projects and repay-
 ing any debts incurred for such capital projects in the county of  Chau-
 tauqua  that  are  not  otherwise  paid for by revenue received from the
 mortgage recording tax; and (4) for deposit  into  a  reserve  fund  for
 bonded  indebtedness established pursuant to the general municipal law.]
 Notwithstanding any contrary provision of law, if the county of Chautau-
 qua imposes the additional one percent rate of  sales  and  compensating
 use  taxes  authorized by such section twelve hundred ten for all or any
 of [the] ANY period beginning ON OR AFTER December first,  two  thousand
 fifteen  and [ending November thirtieth, two thousand twenty-three,] the
 county shall allocate three-twentieths of the net collections  from  the
 additional  one  percent to the cities, towns and villages in the county
 on the basis of their respective populations, determined  in  accordance
 with  the  latest  decennial federal census or special population 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, and allocate the remainder of  the  net  collections  from  the
 additional  one percent as follows: (1) to pay the county's expenses for
 Medicaid and other expenses required by law; (2) to pay for  local  road
 and bridge projects; (3) for the purposes of capital projects and repay-
 ing  any debts incurred for such capital projects in the county of Chau-
 tauqua that are not otherwise paid for  by  revenue  received  from  the
 mortgage  recording  tax;  and  (4)  for deposit into a reserve fund for
 bonded indebtedness established pursuant to the general  municipal  law.
 The  net  collections from the additional rates imposed pursuant to this
 section shall be deposited in a special fund to be created by such coun-
 ty separate and apart from any other funds and accounts of the county to
 be used for purposes above described.
   § 17. Section 1262-p of the tax law, as amended by section 2 of item X
 of subpart C of part XXX of chapter 58 of the laws of 2020,  is  amended
 to read as follows:
   §  1262-p.  Disposition  of  net  collections  from the additional one
 percent rate of sales and  compensating  use  taxes  in  the  county  of
 Livingston.  Notwithstanding any contrary provision of law, if the coun-
 ty  of  Livingston  imposes the additional one percent rate of sales and
 compensating use taxes authorized by section twelve hundred ten of  this
 article for all or any portion of [the] ANY period beginning ON OR AFTER
 June first, two thousand three [and ending November thirtieth, two thou-
 sand  twenty-three],  the county shall use all net collections from such
 additional one percent rate to pay the county's expenses  for  Medicaid.
 The  net collections from the additional one percent rate imposed pursu-
 ant to this section 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
 one percent tax, after the Medicaid expenses are paid, shall be deposit-
 S. 4009                            46                            A. 3009
 
 ed  by  the  county of Livingston in the general fund of such county for
 any county purpose.
   §  18.  Subdivision  1 of section 1262-q of the tax law, as amended by
 chapter 243 of the laws of 2011, is amended to read as follows:
   (1) If the county of Erie imposes the additional one percent  rate  of
 sales  and  compensating use taxes authorized by [item (i) of clause (4)
 of subparagraph (i) of the opening paragraph of] section twelve  hundred
 ten of this article [during the] FOR ANY period beginning January first,
 two thousand seven, or thereafter, the county shall allocate each calen-
 dar  year  the first twelve million five hundred thousand dollars of the
 net collections from such one percent rate to the cities of such  county
 and the area in such county outside its cities to be applied or distrib-
 uted  in  the same manner and proportion as the net collections for such
 cities and area are applied or distributed under  the  revenue  distrib-
 ution  agreement  entered  into pursuant to the authority of subdivision
 (c) of section twelve hundred sixty-two of this part in effect on  Janu-
 ary  first,  two  thousand  six,  and  subject to all provisions of such
 agreement governing the net collections for such  cities  and  area  and
 shall  retain  the  remainder  of  such  net  collections for any county
 purpose.
   § 19. Subdivision 2 of section 1262-q of the tax law,  as  amended  by
 section  2  of item N of subpart C of part XXX of chapter 58 of the laws
 of 2020, is amended to read as follows:
   (2) Net collections from the additional three-quarters of one  percent
 rate  of  sales  and  compensating use taxes which the county may impose
 [during the period] commencing December first, two thousand eleven, [and
 ending November thirtieth, two thousand twenty-three,] pursuant  to  the
 authority of [item (ii) of clause (4) of subparagraph (i) of the opening
 paragraph  of]  section twelve hundred ten of this article shall be used
 by the county solely for county purposes and shall not be subject to any
 revenue distribution agreement the county entered into pursuant  to  the
 authority of subdivision (c) of section twelve hundred sixty-two of this
 part.
   § 20. 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 SUCH ADDITIONAL
 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:
   § 21. 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:
 S. 4009                            47                            A. 3009
 
   § 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
 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.
   § 22. Section 1262-t of the tax law, as added by  chapter  67  of  the
 laws of 2015, is amended to read as follows:
   §  1262-t.  City  of Yonkers - disposition of net collections from the
 additional one-half of one percent rate of sales  and  compensating  use
 taxes  in  the  city of Yonkers. Notwithstanding any provision of law to
 the contrary, if the city of Yonkers imposes the additional one-half  of
 one percent rate of sales and compensating use taxes authorized by [item
 (b)  of  clause  one  of]  subparagraph (ii) of the opening paragraph of
 section twelve hundred ten of this article, the city shall use  the  net
 collections from such additional one-half of one percent rate solely for
 the  support  of  education, unless the city council votes, on an annual
 basis, to use such net collections for a different purpose of the  city,
 provided,  however,  that the requirements of paragraph b of subdivision
 five-b of section two thousand five hundred seventy-six of the education
 law are met.
   § 23. The tax law is amended by adding a new section 1262-w to read as
 follows:
   § 1262-W. 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.
   § 24. The tax law is amended by adding a new section 1262-x to read as
 follows:
   § 1262-X. ALLOCATION AND DISTRIBUTION  OF  NET  COLLECTIONS  FROM  THE
 ADDITIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES IN WEST-
 CHESTER  COUNTY.   NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,
 S. 4009                            48                            A. 3009
 
 IF THE COUNTY OF WESTCHESTER IMPOSES THE ADDITIONAL ONE PERCENT RATE  OF
 SALES  AND COMPENSATING USE TAX AUTHORIZED BY SECTION TWELVE HUNDRED TEN
 OF THIS ARTICLE, THE  COUNTY  SHALL  ALLOCATE  AND  CREDIT  OR  PAY  NET
 COLLECTIONS  FROM  SUCH  ADDITIONAL ONE PERCENT RATE WITH RESPECT TO THE
 AREA OF THE COUNTY OUTSIDE ANY CITY IMPOSING SALES AND COMPENSATING  USE
 TAXES  AT  A RATE OF ONE AND ONE-HALF PERCENT OR GREATER PURSUANT TO THE
 AUTHORITY OF SUBDIVISION (A) OR AT ANY RATE PURSUANT TO THE AUTHORITY OF
 SUBDIVISION (B) OF  SECTION  TWELVE  HUNDRED  TEN  OF  THIS  ARTICLE  AS
 FOLLOWS:
   (1)  SEVENTY  PERCENT OF SUCH NET COLLECTIONS SHALL BE RETAINED BY THE
 COUNTY TO BE USED FOR ANY COUNTY PURPOSE.
   (2) TEN PERCENT OF SUCH NET COLLECTIONS SHALL BE  ALLOCATED  AND  PAID
 QUARTERLY BY THE COUNTY COMMISSIONER OF FINANCE, IN CASH, TO THE SEVERAL
 SCHOOL DISTRICTS IN SUCH AREA OF THE COUNTY OUTSIDE ANY SUCH CITY IMPOS-
 ING  SALES  AND  COMPENSATING USE TAXES. SUCH ALLOCATION AND PAYMENT, TO
 SUCH SEVERAL SCHOOL DISTRICTS, SHALL BE MADE ON THE BASIS OF  THE  RATIO
 WHICH THE POPULATION OF EACH SUCH SCHOOL DISTRICT BEARS TO THE AGGREGATE
 POPULATION  OF  ALL OF THE SCHOOL DISTRICTS IN SUCH AREA. IN THE CASE OF
 SCHOOL DISTRICTS WHICH ARE PARTIALLY WITHIN AND  PARTIALLY  WITHOUT  THE
 COUNTY,  OR PARTIALLY WITHIN OR PARTIALLY WITHOUT THE AREA OF THE COUNTY
 OUTSIDE A CITY IMPOSING SALES AND COMPENSATING USE TAXES, THE ALLOCATION
 AND PAYMENT TO EACH SUCH SCHOOL DISTRICT SHALL BE MADE ON THE  BASIS  OF
 THE POPULATION IN SUCH SCHOOL DISTRICT IN THE COUNTY, OR IN SUCH AREA OF
 THE  COUNTY OUTSIDE A CITY IMPOSING SALES AND COMPENSATING USE TAXES, AS
 THE CASE MAY BE. SUCH POPULATIONS SHALL BE DETERMINED IN ACCORDANCE WITH
 THE LATEST FEDERAL CENSUS OR SPECIAL  POPULATION  CENSUS  UNDER  SECTION
 TWENTY OF THE GENERAL MUNICIPAL LAW COMPLETED AND PUBLISHED PRIOR TO THE
 END  OF THE QUARTER IN WHICH SUCH ALLOCATION AND PAYMENT ARE MADE, WHICH
 SPECIAL POPULATION CENSUS SHALL INCLUDE THE ENTIRE AREA OF  THE  COUNTY;
 PROVIDED  THAT  SUCH  SPECIAL  POPULATION CENSUS SHALL NOT BE TAKEN MORE
 THAN ONCE IN EVERY TWO YEARS. A SCHOOL DISTRICT SPLIT BETWEEN  WESTCHES-
 TER  COUNTY  AND  ANOTHER COUNTY SHALL APPLY SUCH ALLOCATION AND PAYMENT
 SOLELY TO THE BENEFIT OF THE RESIDENTS OF THE COUNTY IN WHICH THE  SALES
 AND COMPENSATING USE TAXES ARE IMPOSED.
   (3) TWENTY PERCENT OF SUCH NET COLLECTIONS SHALL BE ALLOCATED AND PAID
 QUARTERLY  BY THE COUNTY COMMISSIONER OF FINANCE, IN CASH, TO THE CITIES
 NOT IMPOSING SALES AND COMPENSATING USE  TAXES  AND  TO  THE  TOWNS  AND
 VILLAGES  ON WHICH SUCH RATE IS IMPOSED, ON THE BASIS OF THE RATIO WHICH
 THE POPULATION OF EACH SUCH CITY, TOWN OR VILLAGE ON WHICH SUCH RATE  IS
 IMPOSED  BEARS  TO  THE  ENTIRE POPULATION OF ALL SUCH CITIES, TOWNS AND
 VILLAGES IN THE AREA ON WHICH SUCH RATE  IS  IMPOSED.  SUCH  POPULATIONS
 SHALL  BE  DETERMINED  IN  ACCORDANCE  WITH THE LATEST FEDERAL CENSUS OR
 SPECIAL POPULATION CENSUS UNDER SECTION TWENTY OF THE GENERAL  MUNICIPAL
 LAW  COMPLETED  AND  PUBLISHED  PRIOR TO THE END OF THE QUARTER IN WHICH
 SUCH ALLOCATION IS MADE, WHICH SPECIAL POPULATION CENSUS  SHALL  INCLUDE
 THE  ENTIRE  AREA  OF  THE COUNTY; PROVIDED THAT SUCH SPECIAL POPULATION
 CENSUS SHALL NOT BE TAKEN MORE THAN ONCE IN EVERY TWO YEARS.
   § 25. Paragraph 2 of subdivision (c) of section 1261 of the  tax  law,
 as  amended  by  chapter  67  of the laws of 2015, is amended to read as
 follows:
   (2) However, the taxes, penalties and interest from the additional one
 percent rate which the city of Yonkers is authorized to impose  pursuant
 to  [item  (a)  of clause one of] subparagraph (ii) of the opening para-
 graph of section twelve hundred ten of this  article,  after  the  comp-
 troller has reserved such refund fund and such cost shall be paid to the
 special  sales  and  compensating  use  tax fund for the city of Yonkers
 S. 4009                            49                            A. 3009
 
 established by section ninety-two-f of the  state  finance  law  at  the
 times set forth in the preceding sentence.
   §  26.  The tax law is amended by adding a new section 1265 to read as
 follows:
   § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES.
 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY  REFERENCE  IN
 ANY  SECTION  OF  THIS  CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDI-
 NANCE, 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
 THE CHAPTER OF THE LAWS OF TWO THOUSAND  TWENTY-THREE  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 EQUIVALENT 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 THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE.
   § 27. Section 7 of chapter 67 of the laws of 2015,  amending  the  tax
 law  relating  to  authorizing  the city of Yonkers to impose additional
 sales tax, as amended by section 2 of item CCC of subpart C of part  XXX
 of chapter 58 of the laws of 2020, is amended to read as follows:
   §  7.  This act shall take effect immediately [and shall expire and be
 deemed repealed November 30, 2023].
   § 28. Section 2 of item R of subpart C of part XXX of  chapter  58  of
 the  laws of 2020 amending the tax law relating to extending the expira-
 tion of the authorization to the county of Genesee to  impose  an  addi-
 tional  one  percent  of sales and compensating use taxes, is amended to
 read as follows:
   § 2. Notwithstanding any other provision of law to the  contrary,  the
 one  percent increase in sales and compensating use taxes authorized for
 the county of Genesee [until November 30, 2023] pursuant to  [clause  20
 of subparagraph (i) of the opening paragraph of] section 1210 of the tax
 law[,  as  amended  by section one of this act,] shall be divided in the
 same manner and proportion as  the  existing  three  percent  sales  and
 compensating use taxes in such county are divided.
   §  29.   Section 2 of item Z of subpart C of part XXX of chapter 58 of
 the laws of 2020 amending the tax law relating to  the  imposition    of
 sales   and   compensating use taxes by the county of Monroe, is amended
 to read as follows:
   § 2. Notwithstanding the provisions of subdivisions  (b)  and  (c)  of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion  of sales and compensating use taxes by the county of Monroe at the
 additional rate of one percent as authorized pursuant to [clause (25) of
 subparagraph (i) of the opening paragraph of] section 1210  of  the  tax
 law[,  as  amended by section one of this act,] which are in addition to
 the current net collections derived from the imposition of such taxes at
 the three percent rate authorized by [the opening paragraph of]  section
 1210 of the tax law, shall be distributed and allocated as follows:  for
 [the]  ANY  period  [of] BEGINNING ON OR AFTER December 1, 2020 [through
 November 30, 2023] in cash, five percent to the school districts in  the
 area  of  the county outside the city of Rochester, three percent to the
 towns located within the county, one  and  one-quarter  percent  to  the
 S. 4009                            50                            A. 3009
 
 villages  located  within  the  county,  and  ninety  and three-quarters
 percent to the city of Rochester and county of Monroe. The amount of the
 ninety and three-quarters percent to be distributed and allocated to the
 city  of  Rochester  and county of Monroe shall be distributed and allo-
 cated to each so that the combined total distribution and allocation  to
 each from the sales tax revenues pursuant to sections 1262 and 1262-g of
 the tax law and this section shall result in the same total amount being
 distributed and allocated to the city of Rochester and county of Monroe.
 The  amount so distributed and allocated to the county shall be used for
 county purposes. The foregoing cash payments  to  the  school  districts
 shall  be  allocated  on the basis of the enrolled public school pupils,
 thereof, as such term is used in subdivision (b) of section 1262 of  the
 tax  law,  residing  in  the  county of Monroe. The cash payments to the
 towns located within the county of Monroe  shall  be  allocated  on  the
 basis  of  the ratio which the population of each town, exclusive of the
 population of any village or portion  thereof  located  within  a  town,
 bears  to the total population of the towns, exclusive of the population
 of the villages located within such towns.  The  cash  payments  to  the
 villages  located  within  the county shall be allocated on the basis of
 the ratio which the population of each village bears to the total  popu-
 lation of the villages located within the county. The term population as
 used  in this section shall have the same meaning as used in subdivision
 (b) of section 1262 of the tax law.
   § 30. Section 4 of item EE of subpart C of part XXX of chapter  58  of
 the laws of 2020 amending the tax law relating to extending the authori-
 zation  of  the county of Onondaga to impose an additional rate of sales
 and compensating use  taxes, is amended to read as follows:
   § 4. Notwithstanding any contrary provision of  law,  net  collections
 from the additional one percent rate of sales and compensating use taxes
 which  may  be imposed by the county of Onondaga during [the] ANY period
 commencing ON OR AFTER December 1, 2022 [and ending November 30,  2023],
 pursuant  to  the authority of section 1210 of the tax law, shall not be
 subject to any revenue distribution agreement entered into under  subdi-
 vision  (c)  of  section 1262 of the tax law, but shall be allocated and
 distributed or paid, at least quarterly, as follows: (i)  1.58%  to  the
 county  of  Onondaga  for any county purpose; (ii) 97.79% to the city of
 Syracuse; and (iii) .63% to the  school  districts  in  accordance  with
 subdivision (a) of section 1262 of the tax law.
   §  31.  Section 2 of item GG of subpart C of part XXX of chapter 58 of
 the laws of 2020 amending the tax law relating to extending the authori-
 ty of the county of Orange to impose an additional  rate  of  sales  and
 compensating use taxes, is amended to read as follows:
   §  2.  Notwithstanding subdivision (c) of section 1262 of the tax law,
 net collections from any additional rate of sales and  compensating  use
 taxes  which may be imposed by the county of Orange [during the] FOR ANY
 period commencing ON OR AFTER December 1, 2020, [and ending November 30,
 2023,] pursuant to the authority of section 1210 of the tax  law,  shall
 be  paid to the county of Orange and shall be used by such county solely
 for county purposes and shall not be subject to any revenue distribution
 agreement entered into pursuant to the authority of subdivision  (c)  of
 section 1262 of the tax law.
   §  32.  Section 3 of item XX of subpart C of part XXX of chapter 58 of
 the laws of 2020 amending the tax law relating to extending the authori-
 ty of the county of Ulster to impose an additional 1 percent  sales  and
 compensating use tax, is amended to read as follows:
 S. 4009                            51                            A. 3009
 
   §  3.  If, pursuant to the authority of this act, the county of Ulster
 imposes sales and compensating use taxes at a rate  greater  than  three
 percent  for  all  or  any  portion of [the] ANY period commencing ON OR
 AFTER September 1, 2002, [and ending November 30, 2023,] net collections
 from  such  additional  rate  of tax imposed during such period shall be
 deemed to be, and shall be included in, net collections subject to  such
 county's  existing  agreement  with  the  city  of Kingston entered into
 pursuant to subdivision (c) of section 1262 of the tax law and such  net
 collections shall be allocated in accordance with such agreement.
   § 33. This act shall take effect immediately.

                                  PART P
 
   Section 1. Section 1299-C of the tax law is REPEALED.
   § 2. Notwithstanding any provision of law to the contrary, there shall
 be  no  refund of any registration fees paid prior to the effective date
 of this act.
   § 3. This act shall take effect immediately.
 
                                  PART Q
 
   Section 1. Section 285-a of the tax law is amended  by  adding  a  new
 subdivision 4 to read as follow:
   4.  UPON  EACH SALE OF MOTOR FUEL, OTHER THAN A SALE THAT IS OTHERWISE
 EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE  TAX  IMPOSED
 BY  THIS  ARTICLE  TO  THE  PURCHASER  ON EACH GALLON SOLD. IF THE TAXES
 IMPOSED BY THIS ARTICLE HAVE NOT ALREADY  BEEN  ASSUMED  OR  PAID  BY  A
 DISTRIBUTOR  ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
 NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A  RESULT  OF  TEMPERATURE
 FLUCTUATION,  THE  DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   § 2. Section 285-b of the tax law is amended by adding a new  subdivi-
 sion 5 to read as follows:
   5.  UPON  EACH  SALE  OF  DIESEL MOTOR FUEL, OTHER THAN A SALE THAT IS
 OTHERWISE EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE TAX
 IMPOSED BY THIS ARTICLE TO THE PURCHASER ON EACH  GALLON  SOLD.  IF  THE
 TAXES IMPOSED BY THIS ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY A
 DISTRIBUTOR  ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
 NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A  RESULT  OF  TEMPERATURE
 FLUCTUATION,  THE  DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   § 3. Section 308 of the tax law is amended by adding a new subdivision
 (j) to read as follows:
   (J) EVERY PETROLEUM BUSINESS SUBJECT TO TAX UNDER THIS ARTICLE THAT IS
 ALSO A DISTRIBUTOR, AS DEFINED IN SECTION TWO HUNDRED EIGHTY-TWO OF THIS
 CHAPTER, MUST CHARGE THE TAX IMPOSED BY THIS ARTICLE TO THE PURCHASER ON
 EACH GALLON SOLD, UNLESS OTHERWISE EXEMPT. IF THE TAXES IMPOSED BY  THIS
 ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY SUCH PETROLEUM BUSINESS
 ON  ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT NOT LIMITED
 TO, THE EXPANSION OF SUCH FUEL AS A RESULT OF  TEMPERATURE  FLUCTUATION,
 SUCH PETROLEUM BUSINESS MUST REMIT SUCH TAXES TO THE COMMISSIONER ON THE
 RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   §  4.  Section 1102 of the tax law is amended by adding a new subdivi-
 sion (g) to read as follows:
   (G) THE TAX IMPOSED BY THIS SECTION MUST BE CHARGED ON THE SALE, OTHER
 THAN A RETAIL SALE OR A SALE THAT IS OTHERWISE EXEMPT UNDER  THIS  ARTI-
 S. 4009                            52                            A. 3009
 
 CLE,  OF  EACH  GALLON  OF MOTOR FUEL OR DIESEL MOTOR FUEL. IF THE TAXES
 IMPOSED BY THIS SECTION HAVE NOT ALREADY BEEN ASSUMED  OR  PAID  BY  THE
 DISTRIBUTOR  ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
 NOT  LIMITED  TO,  THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
 FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO  THE  COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   §  5.  This act shall take effect on September 1, 2023 and shall apply
 to sales of motor fuel and Diesel motor fuel on or after such date.
 
                                  PART R
 
   Section 1. Subparagraph (B) of  paragraph  1  of  subdivision  (a)  of
 section 1115 of the tax law, as amended by section 1 of part GG of chap-
 ter 59 of the laws of 2022, is amended to read as follows:
   (B) Until May [thirty first] THIRTY-FIRST, two thousand [twenty-three]
 TWENTY-FOUR,  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: (I) when sold
 for one dollar and fifty cents or less through any vending machine OPER-
 ATED BY A PARTICIPANT IN THE "BUSINESS ENTERPRISE PROGRAM", AS SUCH TERM
 IS DEFINED IN PARAGRAPH TWO OF SUBDIVISION  A  OF  SECTION  ELEVEN-A  OF
 CHAPTER  FOUR  HUNDRED  FIFTEEN OF THE LAWS OF NINETEEN HUNDRED THIRTEEN
 that accepts coin or currency only; or (II) when sold for two dollars or
 less through any vending machine OPERATED BY  SUCH  A  PARTICIPANT  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 June 1, 2023.
 
                                  PART S

   Section 1. Subdivision 1 of section 471 of the tax law, as amended  by
 section  1  of  part D of chapter 134 of the laws of 2010, is amended to
 read as follows:
   1. There is hereby imposed and shall be paid a tax on  all  cigarettes
 possessed  in the state by any person for sale, except that no tax shall
 be imposed on cigarettes sold under such circumstances that  this  state
 is  without power to impose such tax, including sales to qualified Indi-
 ans for their own use and consumption on their nations' or tribes' qual-
 ified reservation, or sold to the United States  or  sold  to  or  by  a
 voluntary  unincorporated organization of the armed forces of the United
 States operating a place for the sale of goods pursuant  to  regulations
 promulgated by the appropriate executive agency of the United States, to
 the extent provided in such regulations and policy statements of such an
 agency  applicable  to  such  sales.  The tax imposed by this section is
 imposed on all cigarettes sold on an Indian reservation  to  non-members
 of  the  Indian  nation or tribe and to non-Indians and evidence of such
 tax shall be by means of an affixed cigarette tax stamp. Indian  nations
 or  tribes  may  elect to participate in the Indian tax exemption coupon
 system established in section four hundred seventy-one-e of this article
 which provides a mechanism for the collection of the tax imposed by this
 section on cigarette sales on qualified reservations to such non-members
 and non-Indians and for the delivery of quantities of  tax-exempt  ciga-
 rettes  to Indian nations or tribes for the personal use and consumption
 of qualified members of the Indian nation or tribe. If an Indian  nation
 or  tribe  does  not  elect  to  participate in the Indian tax exemption
 coupon system, the prior approval system shall be the mechanism for  the
 S. 4009                            53                            A. 3009
 
 delivery  of  quantities  of  tax-exempt cigarettes to Indian nations or
 tribes for the personal use and consumption of qualified members of  the
 Indian  nation  or tribe as provided for in paragraph (b) of subdivision
 five  of  this  section.  Such tax on cigarettes shall be at the rate of
 [four] FIVE dollars and thirty-five cents for each twenty cigarettes  or
 fraction  thereof,  provided,  however,  that if a package of cigarettes
 contains more than twenty cigarettes, the rate of tax on the  cigarettes
 in  such  package  in  excess  of twenty shall be one dollar and [eight]
 THIRTY-THREE and three-quarters cents for each five cigarettes or  frac-
 tion  thereof.  Such tax is intended to be imposed upon only one sale of
 the same package of cigarettes. It shall be presumed that all cigarettes
 within the state are subject to tax until the contrary  is  established,
 and  the  burden  of proof that any cigarettes are not taxable hereunder
 shall be upon the person in possession thereof.
   § 2.  Section 471-a of the tax law, as amended by section 5 of part  D
 of chapter 134 of the laws of 2010, is amended to read as follows:
   §  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
 paid a tax on all cigarettes used in the state  by  any  person,  except
 that  no  tax  shall  be imposed (1) if the tax provided in section four
 hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
 rettes  which are exempt from the tax imposed by said section, or (3) on
 the use of four hundred or less cigarettes, brought into the  state  on,
 or  in the possession of, any person. Such tax on cigarettes shall be at
 the rate of [four] FIVE dollars and thirty-five cents  for  each  twenty
 cigarettes  or fraction thereof, provided, however, that if a package of
 cigarettes contains more than twenty cigarettes, the rate of tax on  the
 cigarettes  in  such package in excess of twenty shall be one dollar and
 [eight] THIRTY-THREE and three-quarters cents for each  five  cigarettes
 or  fraction  thereof.  Within twenty-four hours after liability for the
 tax accrues, each such person shall file with the commissioner a  return
 in  such  form  as the commissioner may prescribe together with a remit-
 tance of the tax shown to be due thereon. For purposes of this  article,
 the  word  "use"  means  the  exercise  of  any right or power actual or
 constructive and shall include but is not limited to the receipt,  stor-
 age  or  any  keeping or retention for any length of time, but shall not
 include possession for sale. All other provisions of this article if not
 inconsistent shall apply to the administration and  enforcement  of  the
 tax  imposed  by  this  section in the same manner as if the language of
 said provisions had been incorporated in full into this section.
   § 3. Notwithstanding any other provision of law to the  contrary,  the
 tax  due  on  cigarettes  possessed in New York state as of the close of
 business on August 31, 2023, by any person for sale solely  attributable
 to the increase imposed by the amendments to section 471 of the tax law,
 as  amended  by  section  one of this act, shall be paid by November 20,
 2023, subject to such terms and conditions as the commissioner of  taxa-
 tion and finance shall prescribe.
   §  4. This act shall take effect on September 1, 2023, and shall apply
 to all cigarettes possessed in this state by any person for sale and all
 cigarettes used in this state by any person on or after such date.
 
                                  PART T
 
   Section 1. Subdivision 4 of section 474 of the tax law, as amended  by
 chapter 61 of the laws of 1989, is amended to read as follows:
   4.  (A)  At the time of delivering cigarettes to any person each agent
 or wholesale dealer, and at the time of delivering tobacco  products  to
 S. 4009                            54                            A. 3009
 
 any  person  each  distributor  or wholesale dealer of tobacco products,
 shall make a true duplicate invoice showing the date  of  delivery,  the
 number  of  packages and number of cigarettes contained therein, in each
 shipment  of cigarettes delivered, and the items and quantity and whole-
 sale price of each item in each shipment of tobacco products  delivered,
 and the name of the purchaser to whom delivery is made, and shall retain
 the  same  for a period of three years subject to the use and inspection
 of the commissioner [of taxation and finance]. Each dealer shall procure
 and retain invoices showing the number of packages and number  of  ciga-
 rettes contained therein, in each shipment of cigarettes received by him
 OR  HER,  and the items and quantity and wholesale price of each item in
 each shipment of tobacco products received by him OR HER, the date ther-
 eof, and the name of the shipper, and shall retain the same for a period
 of three years subject to the use and inspection of the commissioner [of
 taxation and finance]. The commissioner [of  taxation  and  finance]  by
 regulation  may provide that whenever cigarettes or tobacco products are
 shipped into the state, the railroad company, express company,  trucking
 company  or other public carrier transporting any shipment thereof shall
 file with the commissioner [of taxation  and  finance]  a  copy  of  the
 freight  bill  within  ten  days after the delivery in the state of each
 shipment. All dealers shall maintain and keep  for  a  period  of  three
 years  such  other  records  of cigarettes or tobacco products received,
 sold or delivered within the state as may be required by the commission-
 er [of taxation and finance]. The commissioner [of taxation and finance]
 is hereby authorized to examine the books, papers,  invoices  and  other
 records  of  any person in possession, control or occupancy of any prem-
 ises where cigarettes or tobacco products are placed,  stored,  sold  or
 offered for sale, and the equipment of any such person pertaining to the
 stamping of cigarettes or the sale and delivery of cigarettes or tobacco
 products  taxable under this article, as well as the stock of cigarettes
 or tobacco products in any such premises or vehicle. To verify the accu-
 racy of the tax imposed and assessed by this article, each  such  person
 is hereby directed and required to give to the commissioner [of taxation
 and  finance]  or his OR HER duly authorized representatives, the means,
 facilities and opportunity for such examinations as are herein  provided
 for and required.
   (B)  IF  A  RETAIL DEALER, OR ITS EMPLOYEES OR AGENTS, REFUSES TO GIVE
 THE COMMISSIONER OR HIS OR  HER  DULY  AUTHORIZED  REPRESENTATIVES,  THE
 MEANS,  FACILITIES AND OPPORTUNITY FOR SUCH EXAMINATIONS AS ARE REQUIRED
 AND PROVIDED FOR BY THIS SECTION: (I) ITS  REGISTRATION  TO  SELL  CIGA-
 RETTES  AND  TOBACCO PRODUCTS SHALL BE REVOKED FOR A PERIOD OF ONE YEAR;
 (II) FOR A SECOND SUCH FAILURE WITHIN  A  PERIOD  OF  THREE  YEARS,  ITS
 REGISTRATION  SHALL  BE  PERMANENTLY REVOKED. IF SUCH RETAIL DEALER DOES
 NOT POSSESS A VALID REGISTRATION, EITHER BECAUSE IT FAILED TO  OBTAIN  A
 REGISTRATION  OR ITS REGISTRATION IS SUSPENDED OR REVOKED AT THE TIME OF
 SUCH REFUSAL, THE RETAIL DEALER SHALL BE SUBJECT TO A PENALTY OF  UP  TO
 FIVE THOUSAND DOLLARS FOR A FIRST REFUSAL AND UP TO TEN THOUSAND DOLLARS
 FOR A SECOND REFUSAL WITHIN THREE YEARS.
   § 2. This act shall take effect immediately.
 
                                  PART U
 
   Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
 subdivision  (b) of section 1402 of the tax law, as amended by section 1
 of item UUU of subpart B of part XXX of chapter 58 of the laws of  2020,
 is amended to read as follows:
 S. 4009                            55                            A. 3009
 
   For  purposes  of this subdivision, the phrase "real estate investment
 trust transfer" shall mean any conveyance of real property or an  inter-
 est  therein  to  a  REIT, or to a partnership or corporation in which a
 REIT owns a controlling interest immediately following  the  conveyance,
 which  conveyance (I) occurs in connection with the initial formation of
 the REIT, provided that the conditions set forth in clauses (i) and (ii)
 of this subparagraph are satisfied, or (II) in  the  case  of  any  real
 estate  investment trust transfer occurring on or after July thirteenth,
 nineteen hundred ninety-six and before  September  first,  two  thousand
 [twenty-three]  TWENTY-SIX,  is  described  in the last sentence of this
 subparagraph.
   § 2. Subparagraph 2 of paragraph (xi) of subdivision  (b)  of  section
 1201 of the tax law, as amended by section 2 of item UUU of subpart B of
 part  XXX  of  chapter  58  of  the  laws of 2020, is amended to read as
 follows:
   (2) any issuance or transfer of an interest in a REIT, or in  a  part-
 nership or corporation in which a REIT owns a controlling interest imme-
 diately  following the issuance or transfer, in connection with a trans-
 action described in subparagraph one of this paragraph.  Notwithstanding
 the foregoing, a transaction described in the preceding  sentence  shall
 not  constitute  a  real  estate investment trust transfer unless (A) it
 occurs in connection with the initial formation  of  the  REIT  and  the
 conditions  described  in subparagraphs three and four of this paragraph
 are satisfied, or (B) in the case of any real  estate  investment  trust
 transfer  occurring  on or after July thirteenth, nineteen hundred nine-
 ty-six and before September first, two thousand  [twenty-three]  TWENTY-
 SIX, the transaction is described in subparagraph five of this paragraph
 in which case the provisions of such subparagraph shall apply.
   §  3.  Subparagraph  (B)  of  paragraph  2 of subdivision e of section
 11-2102 of the administrative code of the city of New York,  as  amended
 by  section  3 of item UUU of subpart B of part XXX of chapter 58 of the
 laws of 2020, is amended to read as follows:
   (B) any issuance or transfer of an interest in a REIT, or in  a  part-
 nership or corporation in which a REIT owns a controlling interest imme-
 diately  following  the issuance or transfer in connection with a trans-
 action described in subparagraph (A) of this paragraph.  Notwithstanding
 the foregoing, a transaction described in the preceding  sentence  shall
 not  constitute  a  real  estate investment trust transfer unless (i) it
 occurs in connection with the initial formation  of  the  REIT  and  the
 conditions  described in subparagraphs (C) and (D) of this paragraph are
 satisfied, or (ii) in the case  of  any  real  estate  investment  trust
 transfer  occurring  on or after July thirteenth, nineteen hundred nine-
 ty-six and before September first, two thousand  [twenty-three]  TWENTY-
 SIX,  the transaction is described in subparagraph (E) of this paragraph
 in which case the provision of such subparagraph shall apply.
   § 4. This act shall take effect immediately.
 
                                  PART V
 
   Section 1. Section 2016 of the tax law, as amended by chapter  401  of
 the laws of 1987, is amended to read as follows:
   § 2016. Judicial review. A decision of the tax appeals tribunal, which
 is  not  subject to any further administrative review, shall finally and
 irrevocably decide all the  issues  which  were  raised  in  proceedings
 before  the  division  of  tax appeals upon which such decision is based
 unless, within four months after notice of such decision  is  served  by
 S. 4009                            56                            A. 3009
 
 the  tax appeals tribunal upon every party to the proceeding before such
 tribunal by certified mail  or  personal  service,  the  petitioner  who
 commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
 TION for judicial review in the manner provided by article seventy-eight
 of  the  civil  practice  law and rules, except as otherwise provided in
 this [section] CHAPTER.    Such  service  by  certified  mail  shall  be
 complete  upon  deposit of such notice, enclosed in a post-paid properly
 addressed wrapper, in a post office or  official  depository  under  the
 exclusive  care  and custody of the United States postal service.  [The]
 WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
 TAX APPEALS FILES A PETITION FOR JUDICIAL  REVIEW,  THE  PETITION  shall
 designate the tax appeals tribunal and the commissioner [of taxation and
 finance]  as  respondents  in the proceeding for judicial review.  WHERE
 THE COMMISSIONER FILES A PETITION  FOR  JUDICIAL  REVIEW,  THE  PETITION
 SHALL  DESIGNATE  THE  TAX  APPEALS  TRIBUNAL  AND  THE  PETITIONER  WHO
 COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS  RESPOND-
 ENTS  IN  THE  PROCEEDING  FOR JUDICIAL REVIEW. The tax appeals tribunal
 shall not participate in proceedings for judicial review  of  its  deci-
 sions and such proceedings for judicial review shall be commenced in the
 appellate  division of the supreme court, third department. In all other
 respects the provisions and standards of article  seventy-eight  of  the
 civil  practice law and rules shall apply.  The record to be reviewed in
 such proceedings for judicial review shall include the determination  of
 the  administrative law judge, the decision of the tax appeals tribunal,
 the stenographic transcript of the hearing before the administrative law
 judge, the transcript of any oral proceedings  before  the  tax  appeals
 tribunal  and  any  exhibit  or  document submitted into evidence at any
 proceeding in the division of tax appeals upon which  such  decision  is
 based.
   §  2.  This act shall take effect immediately and shall apply to deci-
 sions and orders issued by the tax appeals tribunal  on  or  after  such
 date.
 
                                  PART W
 
   Section  1.  Subdivision 1 of section 105 of the state finance law, as
 amended by chapter 204 of the laws  of  2002,  is  amended  to  read  as
 follows:
   1.  All moneys received by the commissioner of taxation and finance on
 account of the state, excepting such moneys as are required by law to be
 deposited to the credit of the comptroller, but including such moneys as
 are thereafter paid into the state treasury by the comptroller, shall be
 deposited by the commissioner of taxation and finance within three BUSI-
 NESS days after the receipt thereof, either as a demand  deposit  or  an
 interest-bearing  time  deposit (other than a time certificate of depos-
 it), as [he] THE COMMISSIONER and the comptroller may determine, in such
 banks, trust companies and industrial banks as in [his] THE  opinion  OF
 THE  COMMISSIONER  and  the  opinion  of the comptroller are secure. The
 moneys so deposited shall be placed to the account of  the  commissioner
 of taxation and finance.  [He] THE COMMISSIONER shall keep a bankbook in
 which  shall  be  entered  [his]  THEIR account of deposit in and moneys
 drawn from the banks and trust companies and industrial banks  in  which
 deposits  are  made  by  [him]  THE  COMMISSIONER, which [he] THEY shall
 exhibit to the comptroller for [his] inspection on the first Tuesday  of
 every  month  and  oftener  if required. [He] THE COMMISSIONER shall not
 draw any moneys from such banks, trust  companies  or  industrial  banks
 S. 4009                            57                            A. 3009
 
 unless  by  checks  signed and countersigned in the manner prescribed by
 section one hundred one, unless otherwise provided  by  law.  No  moneys
 shall  be paid by any such bank, trust company or industrial bank out of
 any  such  deposit  except upon such checks.  Moneys may be paid through
 electronic transfer in  accordance  with  procedures  developed  by  the
 commissioner  of taxation and finance and the comptroller and consistent
 with the requirements of  this  section  for  recording  payments.  Such
 payments  through  electronic transfer shall be considered, for purposes
 of this chapter, to be moneys drawn by check.   Every such  bank,  trust
 company  or  industrial  bank  shall transmit to the comptroller monthly
 statements of all moneys received and paid  by  it  on  account  of  the
 commissioner of taxation and finance.
   § 2. This act shall take effect immediately.
 
                                  PART X
 
   Section  1.  Legislative findings. The legislature finds that it is in
 the interests of the state to assist The New  York  Racing  Association,
 Inc.,  which  is  the  franchised  corporation  pursuant  to section two
 hundred six of the racing, pari-mutuel wagering  and  breeding  law,  to
 renovate  Belmont  Park  racetrack  and repurpose the Aqueduct property.
 The legislature further finds and determines that the  anticipated  cost
 of  renovating Belmont Park racetrack is four hundred fifty-five million
 dollars and that the renovation of Belmont Park racetrack shall initial-
 ly be financed by the state subject to the provisions of  the  repayment
 agreement  of the franchised corporation required by section two of this
 act. The franchised corporation will be responsible for repayment of the
 state funds in accordance with the terms of such repayment agreement.
   § 2. Prior to, and as a condition to  the  state  initially  providing
 funds  for  the  renovation  of  Belmont  Park racetrack, the franchised
 corporation shall enter  into  a  repayment  agreement  with  the  state
 authorizing  and directing that a portion of the funds of the franchised
 corporation dedicated for capital expenditures of the franchised  corpo-
 ration  pursuant  to  paragraph  3  of  subdivision f and paragraph 3 of
 subdivision f-1 of section 1612 of the tax law shall be  used  to  repay
 the  state  for  the  funds  provided by the state for the renovation of
 Belmont Park racetrack,  in  accordance  with  the  repayment  agreement
 between  the  state and the franchised corporation. Such agreement shall
 further provide that in the event the  franchised  corporation  receives
 future  statutory  payments  enacted for the specific purpose of holding
 the franchised corporation harmless for any loss of payments pursuant to
 paragraph 3 of subdivision f and  paragraph  3  of  subdivision  f-1  of
 section  1612 of the tax law, such statutory payments shall also be used
 to repay the state for the funds provided by the  state  for  the  reno-
 vation  of  Belmont  Park  racetrack. Such agreement may also be amended
 from time to time as agreed to by the state and  the  franchised  corpo-
 ration.    At any time prior to the repayment of the state funds for the
 renovation of Belmont Park racetrack, the state may issue state personal
 income tax revenue bonds or state sales tax revenue bonds. In the  event
 of  the issuance of such bonds, the repayment agreement shall be revised
 to reflect the obligation of the franchised corporation to  fully  repay
 the debt service costs associated with such bonds.
   §  3.  Prior  to, and as a condition of, the state initially providing
 funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
 corporation  shall  also  enter  into an agreement with the state relin-
 quishing to the state its leasehold interest in real property located in
 S. 4009                            58                            A. 3009
 
 South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial
 completion of the renovation of Belmont Park racetrack.
   §  4.  The  New  York State Gaming Commission shall ensure that to the
 extent that the law allows for a franchise agreement for  the  operation
 of  Belmont  Park  racetrack with a franchisee other than the franchised
 corporation, the term of any  such  franchise  agreement  awarded  after
 funding  provided  by the state for the renovation of Belmont Park race-
 track described by section one of this act  shall  include  a  provision
 obligating  such  franchisee  to  assume  the payments of the franchised
 corporation required by section two of this act.
   § 5. The opening paragraph of paragraph 3 of subdivision f of  section
 1612  of  the  tax law is designated subparagraph (i) and a new subpara-
 graph (ii) is added to read as follows:
   (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE  EVENT
 THE  STATE  PROVIDES  FUNDS  TO THE FRANCHISED CORPORATION FOR THE RENO-
 VATION OF BELMONT PARK RACETRACK, OUT OF THE AMOUNT PAYABLE TO THE FRAN-
 CHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I)
 OF THIS PARAGRAPH DURING ANY STATE FISCAL YEAR, AN  AMOUNT  PURSUANT  TO
 THE REPAYMENT AGREEMENT BETWEEN THE STATE AND THE FRANCHISED CORPORATION
 SHALL INSTEAD BE DEPOSITED INTO THE MISCELLANEOUS CAPITAL PROJECTS FUND,
 NEW  YORK RACING CAPITAL IMPROVEMENT FUND AS REQUIRED TO REPAY THE STATE
 FOR FUNDS PROVIDED FOR THE RENOVATION OF BELMONT PARK  RACETRACK.    ANY
 AMOUNT PAYABLE TO THE  FRANCHISED CORPORATION  IN ANY  STATE FISCAL YEAR
 FOR  CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH
 IN EXCESS OF THE  AMOUNT  PURSUANT TO THE  REPAYMENT  AGREEMENT  BETWEEN
 THE  STATE AND THE FRANCHISED CORPORATION SHALL BE DEPOSITED PURSUANT TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH.  ONCE THE STATE HAS BEEN FULLY REIM-
 BURSED FOR THE COSTS RELATED TO THE RENOVATION  OF  BELMONT  PARK  RACE-
 TRACK,  THIS  SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH (I) OF
 THIS PARAGRAPH SHALL APPLY.
   § 6. The opening paragraph  of  paragraph  3  of  subdivision  f-1  of
 section  1612  of  the  tax law is designated subparagraph (i) and a new
 subparagraph (ii) is added to read as follows:
   (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE  EVENT
 THE  STATE  PROVIDES  FUNDS  TO THE FRANCHISED CORPORATION FOR THE RENO-
 VATION OF BELMONT PARK RACETRACK, AND IN THE EVENT THE AMOUNT  DEPOSITED
 PURSUANT  TO  SUBPARAGRAPH  (II)  OF PARAGRAPH THREE OF SUBDIVISION F OF
 THIS SECTION IS INSUFFICIENT TO MAKE THE REQUIRED REPAYMENT PURSUANT  TO
 SUCH SUBPARAGRAPH DURING ANY STATE FISCAL YEAR, AN AMOUNT PAYABLE TO THE
 FRANCHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH
 (I)  OF THIS PARAGRAPH SHALL INSTEAD BE DEPOSITED INTO THE MISCELLANEOUS
 CAPITAL PROJECTS FUND, NEW YORK RACING CAPITAL IMPROVEMENT FUND  TO  THE
 EXTENT  NECESSARY,  WHEN  COMBINED WITH THE AMOUNT SET FORTH IN SUBPARA-
 GRAPH (II) OF PARAGRAPH THREE OF SUBDIVISION F OF THIS SECTION, TO  MAKE
 ANY  REQUIRED  REPAYMENT  OF  FUNDS PROVIDED BY THE STATE RELATED TO THE
 RENOVATION OF BELMONT PARK RACETRACK DURING SUCH FISCAL YEAR. ANY AMOUNT
 PAYABLE TO THE FRANCHISED CORPORATION IN ANY STATE FISCAL YEAR FOR CAPI-
 TAL EXPENDITURES PURSUANT TO  SUBPARAGRAPH  (I)  OF  THIS  PARAGRAPH  IN
 EXCESS  OF  THE  AMOUNT  PURSUANT TO THE REPAYMENT AGREEMENT BETWEEN THE
 STATE AND THE FRANCHISED CORPORATION  SHALL  BE  DEPOSITED  PURSUANT  TO
 SUBPARAGRAPH  (I) OF THIS PARAGRAPH. ONCE THE STATE HAS BEEN FULLY REIM-
 BURSED FOR SUCH COSTS RELATED TO THE RENOVATION OF  BELMONT  PARK  RACE-
 TRACK,  THIS  SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH (I) OF
 THIS PARAGRAPH SHALL APPLY.
   § 7. The state comptroller is hereby authorized and directed  to  loan
 money  in  accordance  with the provisions set forth in subdivision 5 of
 S. 4009                            59                            A. 3009
 
 section 4 of the state finance law to the miscellaneous capital projects
 fund, New York racing capital improvement fund.
   §  8. 1.  Notwithstanding any other provisions of law to the contrary,
 the dormitory authority, the urban development corporation, and the  New
 York  state  thruway  authority  are hereby authorized to issue personal
 income tax revenue bonds or notes or state sales tax  revenue  bonds  or
 notes  in  one  or  more  series in an aggregate principal amount not to
 exceed four hundred fifty-five million dollars ($455,000,000)  excluding
 bonds  or  notes  issued to pay costs of issuance of such bonds or notes
 and bonds or notes issued to refund or otherwise  repay  such  bonds  or
 notes  previously issued, for the purpose of financing the renovation of
 Belmont Park racetrack.
   2. Notwithstanding any other provision of  law  to  the  contrary,  in
 order  to assist the dormitory authority, urban development corporation,
 and the New York state thruway authority in  undertaking  the  financing
 for the renovation of Belmont Park racetrack, the director of the budget
 is hereby authorized to enter into one or more financing agreements with
 the  dormitory authority, the urban development corporation, and the New
 York state thruway authority, upon such  terms  and  conditions  as  the
 director  of  the budget and the dormitory authority, the urban develop-
 ment corporation and the New York state thruway authority agree,  so  as
 to  annually  provide  to the dormitory authority, the urban development
 corporation, and the New York state thruway authority, in the aggregate,
 a sum not to  exceed  the  principal,  interest,  and  related  expenses
 required  for such bonds and notes. Any financing agreement entered into
 pursuant to this section shall provide that the obligation of the  state
 to  pay  the  amount therein provided shall not constitute a debt of the
 state within the meaning of any constitutional  or  statutory  provision
 and shall be deemed executory only to the extent of monies available and
 that  no  liability  shall  be  incurred  by the state beyond the monies
 available for such purpose,  subject  to  annual  appropriation  by  the
 legislature. Any such contract or any payments made or to be made there-
 under  may be assigned and pledged by the dormitory authority, the urban
 development corporation, and the New York  state  thruway  authority  as
 security for such bonds and notes, as authorized by this section.
   §  9.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed in each state fiscal year to transfer, upon request of  the
 director  of  the budget, up to the unencumbered balance or an amount up
 to twenty-five million eight hundred thousand dollars ($25,800,000) from
 the  miscellaneous  capital  projects  fund,  New  York  racing  capital
 improvement fund to the general fund.
   § 10. This act shall take effect immediately.
 
                                  PART Y
 
   Section  1.  Paragraph  1  of subdivision a of section 1612 of the tax
 law, as amended by chapter 174 of the laws of 2013, is amended  to  read
 as follows:
   (1) sixty percent of the total amount for which tickets have been sold
 for  [a  lawful lottery] THE QUICK DRAW game [introduced on or after the
 effective date of this paragraph,] subject to [the following provisions:
   (A) such game shall be available only on premises occupied by licensed
 lottery sales agents, subject to the following provisions:
   (i) if the licensee does not hold a license  issued  pursuant  to  the
 alcoholic  beverage control law to sell alcoholic beverages for consump-
 S. 4009                            60                            A. 3009

 tion on the premises, then the  premises  must  have  a  minimum  square
 footage greater than two thousand five hundred square feet;
   (ii)  notwithstanding  the  foregoing provisions, television equipment
 that  automatically  displays  the  results  of  such  drawings  may  be
 installed and used without regard to the square footage if such premises
 are used as:
   (I) a commercial bowling establishment, or
   (II)  a facility authorized under the racing, pari-mutuel wagering and
 breeding law to accept pari-mutuel wagers;
   (B) the] rules for the operation of such game [shall be] as prescribed
 by regulations promulgated and adopted by the division[, provided howev-
 er, that such rules shall provide that no person under the age of  twen-
 ty-one  may  participate in such games on the premises of a licensee who
 holds a license issued pursuant to the alcoholic beverage control law to
 sell alcoholic beverages for consumption on the premises; and, provided,
 further, that such regulations may be revised on an emergency basis  not
 later than ninety days after the enactment of this paragraph in order to
 conform such regulations to the requirements of this paragraph]; or
   § 2. This act shall take effect immediately.
 
                                  PART Z
 
   Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
 amended by adding a new section 502-a to read as follows:
   § 502-A. CLOSURE OF CATSKILL REGIONAL OFF-TRACK  BETTING  CORPORATION.
 1.  CATSKILL  REGIONAL  OFF-TRACK  BETTING CORPORATION ESTABLISHED UNDER
 SECTION FIVE HUNDRED TWO OF THIS ARTICLE IS TERMINATED, SUBJECT  TO  THE
 SATISFACTION  OF  OUTSTANDING  DEBTS AND OBLIGATIONS AND DISTRIBUTION OF
 ANY REMAINING ASSETS, AS SET FORTH IN THIS SECTION.
   2. CATSKILL REGIONAL OFF-TRACK BETTING CORPORATION SHALL  CONTINUE  IN
 ITS EXISTENCE SOLELY FOR THE PURPOSE OF SATISFYING ALL OUTSTANDING DEBTS
 AND  OBLIGATIONS  AND  DISTRIBUTION OF ANY REMAINING ASSETS, TAKING INTO
 ACCOUNT THE PRIORITY REQUIREMENTS OF SUBDIVISION  TWO  OF  SECTION  FIVE
 HUNDRED  SIX AND SUBDIVISION TWO OF SECTION FIVE HUNDRED SIXTEEN OF THIS
 ARTICLE.  SUCH CORPORATION SHALL SUBMIT A LIST OF ALL OUTSTANDING  DEBTS
 AND  OBLIGATIONS  TO  THE  COMMISSION  AND A PLAN PROPOSING THE ORDER IN
 WHICH SUCH DEBTS AND OBLIGATIONS  SHALL  BE  SATISFIED.  THE  COMMISSION
 SHALL  APPROVE  OR  MODIFY SUCH PLAN. ONCE ALL DEBTS AND OBLIGATIONS ARE
 SATISFIED OR ALL AVAILABLE FUNDS HAVE BEEN EXHAUSTED, AND ANY  REMAINING
 ASSETS  ARE  DISTRIBUTED,  SUCH  CORPORATION SHALL BE TERMINATED FOR ALL
 PURPOSES.  SUCH CORPORATION MAY USE THE FOLLOWING TO SATISFY ITS  EXIST-
 ING DEBTS AND OBLIGATIONS:
   (A)  IN  ACCORDANCE WITH SUBDIVISION FOUR OF SECTION FIVE HUNDRED NINE
 OF THIS ARTICLE, ANY  REMAINING  MONEY  IN  SUCH  CORPORATION'S  CAPITAL
 RESERVE  FUND,  AFTER  USE OF SUCH FUNDS FOR PAYMENT OF THE PRINCIPAL OF
 BONDS, INTEREST ON SUCH BONDS AND THE PAYMENT OF ANY REDEMPTION  PREMIUM
 REQUIRED, AS SET FORTH IN SUCH SECTION; AND
   (B) IN ACCORDANCE WITH SUBDIVISION FOUR OF SECTION FIVE HUNDRED NINE-A
 OF THIS ARTICLE, FUNDS FROM ITS CAPITAL ACQUISITION FUND.
   §  2. Paragraph c of subdivision 1 of section 509 of the racing, pari-
 mutuel wagering and breeding law, as amended by chapter 243 of the  laws
 of  2020,  is  amended  and  a  new  subdivision  4 is added, to read as
 follows:
   c. Any other moneys that may be made available to the corporation  for
 the purpose of such capital reserve fund from any other source or sourc-
 es. All moneys held in the capital reserve fund, except as [hereinafter]
 S. 4009                            61                            A. 3009
 
 provided  IN  THIS  PARAGRAPH  AND  IN SUBDIVISION FOUR OF THIS SECTION,
 shall be used solely for the payment of the principal of  bonds  of  the
 corporation,  the  payment  of interest on such bonds, or the payment of
 any  redemption premium required to be paid when such bonds are redeemed
 prior to maturity;  provided,  however,  that  moneys  in  such  capital
 reserve fund shall not be withdrawn therefrom at any time in such amount
 as  would reduce the amount of such fund to less than the maximum amount
 of principal and interest maturing and becoming due  in  any  succeeding
 fiscal  year  of  the  corporation  on all bonds of the corporation then
 outstanding, except for the purpose of paying principal of and  interest
 on  such  bonds of the corporation maturing and becoming due and for the
 payment of which other moneys of the corporation are not available.  Any
 income  or interest earned by, or increment to, the capital reserve fund
 due to the investment thereof may  be  transferred  to  other  funds  or
 accounts  to  the  extent  it  does not reduce the amount of the capital
 reserve fund below the maximum amount of principal and interest maturing
 and becoming due in any such succeeding fiscal year on all bonds of  the
 corporation then outstanding.
   4.  UPON THE TERMINATION OF CATSKILL REGIONAL OFF-TRACK BETTING CORPO-
 RATION PURSUANT TO SECTION FIVE  HUNDRED  TWO-A  OF  THIS  ARTICLE,  THE
 REMAINDER  OF  THE  CORPORATION'S CAPITAL RESERVE FUND, AFTER SUCH FUNDS
 ARE USED FOR THE PURPOSES SET FORTH IN PARAGRAPH C OF SUBDIVISION ONE OF
 THIS SECTION, SHALL BE USED TO PAY OTHER OBLIGATIONS, DEBTS AND  LIABIL-
 ITIES  OF  THE  CORPORATION  PURSUANT  TO  THE  COMMISSION-APPROVED PLAN
 DESCRIBED IN SUBDIVISION TWO OF SECTION FIVE HUNDRED TWO-A OF THIS ARTI-
 CLE.
   § 3. Section 509-a of the racing, pari-mutuel  wagering  and  breeding
 law is amended by adding a new subdivision 4 to read as follows:
   4.  AS  OF  APRIL  FIRST, TWO THOUSAND TWENTY-THREE, CATSKILL REGIONAL
 OFF-TRACK BETTING CORPORATION MAY USE ANY REMAINING MONEY IN ITS CAPITAL
 ACQUISITION FUND TO PAY OFF ANY OUTSTANDING  DEBTS  AND  OBLIGATIONS  IN
 ACCORDANCE  WITH  THE  COMMISSION-APPROVED PLAN DESCRIBED IN SUBDIVISION
 TWO OF SECTION FIVE HUNDRED TWO-A OF THIS ARTICLE. THE USE OF SUCH MONEY
 SHALL BE SUBJECT TO THE APPROVAL OF THE COMMISSION AND SHALL NOT BE USED
 TO PAY THE WAGES AND BENEFITS OF EMPLOYEES OF SUCH CORPORATION UNTIL ALL
 OTHER DEBTS AND OBLIGATIONS HAVE BEEN SATISFIED. ANY MONEY REMAINING  IN
 THE  FUND  AFTER  SUCH  DEBTS AND OBLIGATIONS HAVE BEEN PAID UPON TERMI-
 NATION OF SUCH CORPORATION SHALL  BE  DISTRIBUTED  TO  THE  COUNTIES  IN
 ACCORDANCE WITH LAW.
   §  4. Section 521 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 9 to read as follows:
   9. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE TO THE  CONTRA-
 RY,  A  COUNTY  FOR  WHOSE  BENEFIT  CATSKILL REGIONAL OFF-TRACK BETTING
 CORPORATION HAD BEEN ESTABLISHED MAY ENTER INTO  AN  AGREEMENT  WITH  AN
 EXISTING  OFF-TRACK  BETTING  CORPORATION  FROM  A  DIFFERENT  REGION TO
 PROVIDE THE SERVICES AUTHORIZED UNDER THIS ARTICLE WITHIN SUCH COUNTY.
   § 5. This act shall take effect immediately.
 
                                  PART AA

   Section 1. Subdivision 2 of section 509-a of the  racing,  pari-mutuel
 wagering and breeding law, as amended by section 1 of part DD of chapter
 59 of the laws of 2022, is amended to read as follows:
   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,
 S. 4009                            62                            A. 3009
 
 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  thirty-
 first, two thousand twenty-three, 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 established  pursuant  to
 this  section, and twenty-three percent of the funds, not to exceed four
 hundred forty thousand dollars, in the Capital off-track betting  corpo-
 ration's  capital acquisition fund established pursuant to this section,
 shall be available  to  such  off-track  betting  corporations  for  the
 purposes  of  statutory obligations, payroll, and expenditures necessary
 to accept authorized wagers.
   c. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  OR  REGULATION  TO  THE
 CONTRARY,  FROM  APRIL FIRST, TWO THOUSAND TWENTY-THREE TO MARCH THIRTY-
 FIRST, TWO THOUSAND TWENTY-FOUR, 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 BE AVAILABLE TO SUCH OFF-TRACK BETTING CORPORATION
 FOR THE PURPOSES OF STATUTORY  OBLIGATIONS,  PAYROLL,  AND  EXPENDITURES
 NECESSARY TO ACCEPT AUTHORIZED WAGERS.
   D.  Prior  to a corporation being able to utilize the funds authorized
 by [paragraph] PARAGRAPHS b AND C of this subdivision,  the  corporation
 must  submit  an  expenditure  plan to the gaming commission for review.
 Such plan  shall  include  the  corporation's  outstanding  liabilities,
 projected  revenue  for the upcoming year, a detailed explanation of how
 the funds will be used, and any other information  determined  necessary
 by the commission. Upon review, the commission will make a determination
 as to whether access to the funds is needed and warranted.
   § 2. This act shall take effect immediately.
 
                                  PART BB
 
   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  EE  of  chapter  59 of the laws of 2022, 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
 S. 4009                            63                            A. 3009
 
 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-three] TWENTY-FOUR; 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-three] TWENTY-FOUR; 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 EE of chapter 59 of the laws of 2022,  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-three]  TWENTY-FOUR,  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.
 S. 4009                            64                            A. 3009
 
   §  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  EE  of  chapter  59 of the laws of 2022, 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-three]  TWENTY-FOUR  and  on  any  day
 regardless  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-three] TWENTY-FOUR. 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 EE of chapter 59 of
 the laws of 2022, 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-three] TWENTY-FOUR. 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 EE of chapter 59 of the laws of 2022,  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-three]  TWENTY-FOUR.  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 EE of chapter
 59 of the laws of 2022, 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-
 S. 4009                            65                            A. 3009
 
 sand  [twenty-two]  TWENTY-THREE,  when  a  franchised  corporation   is
 conducting  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 EE of chapter  59  of  the
 laws of 2022, 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,  [2023]  2024;  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 EE of chapter 59 of the laws of 2022, 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, [2023] 2024; 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
 EE of chapter 59 of the laws of 2022, 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
 S. 4009                            66                            A. 3009
 
 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-three] TWENTY-FOUR, 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-three]  TWENTY-FOUR,  such payment
 shall be seven-tenths of one percent of  regular,  multiple  and  exotic
 pools.
   § 10. This act shall take effect immediately.
 
                                  PART CC
 
   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 FEDERAL S corporation [subject to tax under this article
 for which an election is in effect pursuant to] REQUIRED TO  FILE  AS  A
 NEW YORK S CORPORATION PURSUANT TO subsection (a) of section six hundred
 sixty  of this chapter for such year, AND any such year shall be denomi-
 nated a "New York S year", [and such election  shall  be  denominated  a
 "New York S election"] UNLESS THE CORPORATION IS TREATED AS A NEW YORK C
 CORPORATION  FOR  SUCH  YEAR UNDER SUBSECTION (B) OF SECTION SIX HUNDRED
 SIXTY OF THIS CHAPTER. 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
 S. 4009                            67                            A. 3009
 
 AS  A  New  York S [election] CORPORATION 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 denominated 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 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-B. The term "QSSS" means a corporation which is a qualified subchap-
 ter S subsidiary as defined in subparagraph (B) of  paragraph  three  of
 subsection  (b)  of  section  thirteen hundred sixty-one of the internal
 revenue code. [The term "exempt QSSS" means a QSSS exempt from tax under
 this article as provided in paragraph (k) of subdivision  nine  of  this
 section,  or a QSSS described in subclause (i) of clause (B) of subpara-
 graph two of paragraph (k) of subdivision nine of this section,  wherein
 the parent corporation of the QSSS is subject to tax under this article,
 and  the  assets,  liabilities,  income  and  deductions of the QSSS are
 treated as the assets, liabilities, income and deductions of the  parent
 corporation. Where a QSSS is an exempt QSSS, then for all purposes under
 this  article]  WHEN  THE PARENT CORPORATION OF THE QSSS IS A NEW YORK S
 CORPORATION:
   (a) the assets, liabilities, income,  deductions,  property,  payroll,
 receipts, capital, credits, and all other tax attributes and elements of
 economic  activity of the QSSS shall be deemed to be those of the parent
 corporation,
   (b) the stocks, bonds and other securities issued by, and any  indebt-
 edness from, the QSSS shall not be investment or business capital of the
 parent corporation,
   (c)  transactions between the parent corporation and the QSSS, includ-
 ing the payment of interest and  dividends,  shall  not  be  taken  into
 account, [and]
   (d)  general  executive  officers  of  the  QSSS shall be deemed to be
 general executive officers of the parent corporation, AND
   (E) THE QSSS SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE.
   § 3. Paragraph (k) of subdivision 9 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:
   (k) QSSS. (1) [New York S corporation. In the case of  a  New  York  S
 corporation  which  is the parent of a qualified subchapter S subsidiary
 (QSSS) with respect to a taxable year:
   (A) where the QSSS is not an excluded corporation,
   (i) in determining the entire net income of such  parent  corporation,
 all  assets,  liabilities,  income  and  deductions of the QSSS shall be
 treated as assets, liabilities, income  and  deductions  of  the  parent
 corporation, and
   (ii)  the QSSS shall be exempt from all taxes imposed by this article,
 and
   (B) where the QSSS is an excluded corporation, the entire  net  income
 of  the  parent  corporation  shall be determined as if the federal QSSS
 election had not been made.
   (2)] New York C corporation. In the case of a  FEDERAL  S  CORPORATION
 THAT  IS  A  New  York  C corporation [which is] UNDER SUBSECTION (B) OF
 SECTION SIX HUNDRED SIXTY OF THIS CHAPTER AND IS the parent  of  a  QSSS
 with respect to a taxable year:
 S. 4009                            68                            A. 3009

   (A) where the QSSS is a taxpayer,
   (i)  in  determining the entire net income of such parent corporation,
 all assets, liabilities, income and deductions  of  the  QSSS  shall  be
 treated  as  assets,  liabilities,  income  and deductions of the parent
 corporation, and
   (ii) the QSSS shall be exempt from all taxes imposed by this  article,
 and
   (B) where the QSSS is not a taxpayer,
   (i) if the QSSS is not an excluded corporation, the parent corporation
 may  make  a QSSS inclusion election to include all assets, liabilities,
 income and deductions of the QSSS as  assets,  liabilities,  income  and
 deductions of the parent corporation, and
   (ii) in the absence of such election, or where the QSSS is an excluded
 corporation,  the  entire  net income of the parent corporation shall be
 determined as if the federal QSSS election had not been made.
   [(3) Non-New York S corporation not excluded. In  the  case  of  an  S
 corporation which is not a taxpayer and not an excluded corporation, and
 which  is  the parent of a QSSS which is a taxpayer, the shareholders of
 the parent corporation shall be entitled to make the New York S election
 under subsection (a) of section six hundred sixty of this chapter.
   (A) For any taxable year for which such election  is  in  effect,  the
 parent  corporation  shall be subject to tax under this article as a New
 York S corporation, and the provisions of clause (A) of subparagraph one
 of this paragraph shall apply.
   (B) For any taxable year for which such election is not in effect, the
 QSSS shall be a New York C corporation, and the entire net income of the
 QSSS shall be determined as if the federal QSSS election  had  not  been
 made. For purposes of such determination, the taxable year of the parent
 corporation  shall  constitute  the taxable year of the QSSS, excluding,
 however, any portion of such year during which the QSSS is not a taxpay-
 er.
   (4) S corporation excluded. In the case of an S corporation  which  is
 an  excluded  corporation  and  which is the parent of a QSSS which is a
 taxpayer, the QSSS shall be a New York C corporation and the  provisions
 of clause (B) of subparagraph three of this paragraph shall apply.
   (5)] (2) Excluded corporation. The term "excluded corporation" means a
 corporation  subject  to  tax  under  sections  one hundred eighty-three
 through one hundred eighty-six, inclusive, or  article  thirty-three  of
 this  chapter, or a foreign corporation not taxable by this state which,
 if it were taxable, would be subject to tax under any of  such  sections
 or article.
   [(6)]  (3) Taxpayer. For purposes of this paragraph, the term "taxpay-
 er" means a parent corporation or QSSS subject to tax under  this  arti-
 cle, determined without regard to the provisions of this paragraph.
   [(7)] (4) QSSS inclusion election. The election under subclause (i) of
 clause  (B)  of subparagraph [two] ONE of this paragraph shall be effec-
 tive for the taxable year for which made and for all succeeding  taxable
 years  of the corporation until such election is terminated. An election
 or termination shall be made on such form and  in  such  manner  as  the
 commissioner may prescribe by regulation or instruction.
   § 4. Subparagraph (A) 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, is amended to read as follows:
   (A) In the case of a shareholder of an S corporation, (i)  [where  the
 election  provided for in] EXCEPT FOR WHEN SUCH S CORPORATION IS TREATED
 AS A NEW YORK C CORPORATION UNDER subsection [(a)] (B)  of  section  six
 S. 4009                            69                            A. 3009
 
 hundred  sixty of this chapter [is in effect with respect to such corpo-
 ration], there shall be added  to  federal  unrelated  business  taxable
 income an amount equal to the shareholder's pro rata share of the corpo-
 ration'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] S CORPORATION IS TREATED AS A  NEW  YORK  C
 CORPORATION  UNDER  SUBSECTION  (B) OF SECTION SIX HUNDRED SIXTY OF THIS
 CHAPTER, there shall be subtracted from federal unrelated business taxa-
 ble 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] AN 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.
   §  5. 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 OF THIS ARTICLE:
   (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] AN S termination year, subparagraph
 (A) of this paragraph shall apply to the amount of reductions for  taxes
 determined under subsection (s) of this section.
   §  6. Paragraph 19 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:
   (19) In the case of a shareholder of an S corporation (A)  where  [the
 election provided for in]  SUCH S CORPORATION IS TREATED AS A NEW YORK C
 CORPORATION UNDER subsection [(a)] (B) of section six hundred sixty [has
 not  been  made  with  respect to such corporation] OF THIS ARTICLE, any
 item of loss or deduction of the corporation included in  federal  gross
 income  pursuant  to  section thirteen hundred sixty-six of the internal
 revenue code, and (B) in the case of [a New York] AN S termination year,
 subparagraph (A) of this paragraph shall apply to the amounts of loss or
 deduction determined under subsection (s) of this section.
   § 7. Paragraph 20 of subsection (b) of section 612 of the tax law,  as
 amended  by  chapter  606  of  the  laws  of 1984, is 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 (A) FOR TAX YEARS BEGINNING BEFORE
 JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, because the  election  provided
 for  in  subsection (a) of section six hundred sixty OF THIS ARTICLE had
 not been made, OR (B) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST,
 S. 4009                            70                            A. 3009
 
 TWO THOUSAND TWENTY-FOUR, BECAUSE THE S CORPORATION FILED A RETURN UNDER
 ARTICLE NINE-A OF THIS CHAPTER PURSUANT TO SUBSECTION (B) OF SECTION SIX
 HUNDRED SIXTY OF THIS ARTICLE. 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 arti-
 cle.
   § 8.  Paragraph 22 of subsection (c) 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:
   (22) In the case of a shareholder of an S corporation (A)  where  [the
 election  provided for in] SUCH S CORPORATION IS TREATED AS A NEW YORK C
 CORPORATION UNDER subsection [(a)] (B) of section six hundred sixty [has
 not been made with respect to such corporation]  OF  THIS  ARTICLE,  any
 item  of  income  of  the  corporation  included in federal gross income
 pursuant to section thirteen hundred sixty-six of the  internal  revenue
 code, and
   (B)  in  the  case of [a New York] AN S termination year, subparagraph
 (A) of this paragraph shall apply to the amounts  of  income  determined
 under subsection (s) of this section.
   §  9. The section heading and paragraph 1 of subsection (s) of section
 612 of the tax law, as amended by chapter 760 of the laws  of  1992,  is
 amended to read as follows:
   (s)  [New York] S termination year. (1) General. In the case of [a New
 York] AN S termination year, the amount of any  item  of  S  corporation
 income,  loss  and  deduction  included  in  the  shareholder's  federal
 adjusted gross income and any 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  accordance
 with   the  treatment  provided  in  paragraph  two  or  three  of  this
 subsection.
   § 10. Paragraph 6 of subsection (c) of section 615 of the tax law,  as
 added by chapter 606 of the laws of 1984, subparagraph (B) as amended by
 chapter 190 of the laws of 1990, is amended to read as follows:
   (6) in the case of a shareholder of an S corporation
   (A) where [the election provided for in] SUCH S CORPORATION IS TREATED
 AS  A  NEW  YORK C CORPORATION UNDER subsection [(a)] (B) of section six
 hundred sixty [has not been made] OF THIS ARTICLE, S  corporation  items
 of deduction included in federal itemized deductions, and
   (B) in the case of [a New York] AN S termination year, [the portion of
 such  items  assigned  to  the  period beginning on the day the election
 ceases to be effective, as] THE MODIFICATION UNDER SUBPARAGRAPH  (A)  OF
 THIS  PARAGRAPH  SHALL BE determined under subsection (s) of section six
 hundred twelve OF THIS PART.
   § 11. Subparagraph (C) of paragraph 1 of subsection (b) of section 631
 of the tax law, as amended by chapter  586  of  the  laws  of  1999,  is
 amended to read as follows:
   (C)  in  the  case  of  a  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], the ownership of shares
 issued by such corporation, to the extent determined under  section  six
 hundred thirty-two of this [article] PART; or
   §  12.  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:
 S. 4009                            71                            A. 3009
 
   (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.
   § 13. 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] A NEW YORK S corporation [where the  election  provided  for  in
 subsection  (a)  of section six hundred sixty] AS DEFINED IN SUBDIVISION
 ONE-A OF SECTION TWO HUNDRED EIGHT of [this article is in  effect]  THIS
 CHAPTER,  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] A NEW YORK S corporation [where the election provided for in
 subsection (a) of section six hundred sixty] AS DEFINED  IN  SUBDIVISION
 ONE-A  OF  SECTION TWO HUNDRED EIGHT of [this article is in effect] THIS
 CHAPTER, 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
 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.
   §  14.  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
 S. 4009                            72                            A. 3009
 
 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 subsection (a)  of  section  six  hundred  sixty  is  in
 effect]  TREATED  AS  A NEW YORK S CORPORATION AS DEFINED IN SUBDIVISION
 ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER shall make  a  return
 for  the  taxable  year  setting  forth  all  items  of income, loss and
 deduction and such other pertinent information 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] A NEW  YORK
 S  corporation [for which the election provided for in subsection (a) of
 section six hundred sixty of this part  is  in  effect]  AS  DEFINED  IN
 SUBDIVISION  ONE-A  OF  SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, 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 corporations, and which has any income  derived  from  New
 York  sources,  determined  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  partner's,  member's or shareholder's distributive share or pro
 rata share of the entity income derived from New  York  sources,  multi-
 plied  by  the highest rate of tax prescribed by section six hundred one
 of this article for the taxable year of any partner,  member  or  share-
 holder  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 corporation 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.
   §  15.  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, EXCEPT FOR ELIGIBLE S CORPORATIONS TREATED AS NEW YORK C
 CORPORATIONS UNDER SUBSECTION (B) OF THIS SECTION, 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
 S. 4009                            73                            A. 3009
 
 this  article  (or in article thirteen 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 corpo-
 ration have so elected.] An eligible S  corporation  is  (i)  [an  S]  A
 corporation  [which] 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 THAT is subject to tax under article nine-A of
 this  chapter,  or (ii) [an S] A corporation [which] 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 THAT IS NOT
 SUBJECT TO TAX UNDER ARTICLE NINE-A OF  THIS  CHAPTER,  OR  AN  EXCLUDED
 CORPORATION, AND 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 shareholders 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.    EXCEPT  AS  PROVIDED  IN
 SUBSECTION  (B) OF THIS SECTION, AN ELIGIBLE S CORPORATION IS A NEW YORK
 S CORPORATION.
   (b)  [Requirements  of  election]  TREATMENT  OF  QUALIFIED  NEW  YORK
 MANUFACTURERS  AS  NEW YORK C CORPORATIONS.  [An election] AN ELIGIBLE S
 CORPORATION THAT MEETS THE REQUIREMENTS OF SUBPARAGRAPH  (VI)  OF  PARA-
 GRAPH  (A) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER
 TO BE A QUALIFIED NEW YORK MANUFACTURER MAY BE TREATED AS A NEW  YORK  C
 CORPORATION  SUBJECT TO TAX UNDER ARTICLE NINE-A OF THIS CHAPTER. TREAT-
 MENT under THIS subsection [(a) of this section] AS A NEW YORK C  CORPO-
 RATION shall be made on such form and in such manner as the [tax commis-
 sion] COMMISSIONER may prescribe by regulation or instruction.
   (1)  [When  made]  TIMING.    [An  election]  TO BE TREATED under THIS
 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
   (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.
 S. 4009                            74                            A. 3009

   (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.]  AS  A  NEW  YORK C CORPORATION FOR A TAXABLE YEAR, THE CORPO-
 RATION SHALL FILE A REPORT AS A NEW YORK  C  CORPORATION  UNDER  ARTICLE
 NINE-A  OF THIS CHAPTER FOR SUCH YEAR. SUCH TREATMENT SHALL BE EFFECTIVE
 AS OF THE FIRST DAY OF THE TAXABLE YEAR COVERED BY SUCH REPORT.
   (c) Termination. [An election] (1) TREATMENT OF  A  FEDERAL  S  CORPO-
 RATION AS A NEW YORK S CORPORATION UNDER SUBSECTION (A) OF THIS SECTION,
 AND  TREATMENT  OF  A  FEDERAL S CORPORATION AS A NEW YORK C CORPORATION
 under subsection [(a)] (B) of this section shall cease to be effective
   [(1)] on the day an election to be  an  S  corporation  ceases  to  be
 effective  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
 manner the tax commission may prescribe by regulation, on the  day  such
 person  becomes  a shareholder] AND, IN SUCH CASE, THE CORPORATION SHALL
 BE TREATED AS A NEW YORK C CORPORATION  SUBJECT  TO  TAX  UNDER  ARTICLE
 NINE-A OF THIS CHAPTER.
   (2)  TREATMENT  OF A FEDERAL S CORPORATION AS A NEW YORK C CORPORATION
 UNDER SUBSECTION (B) OF THIS SECTION SHALL CEASE TO BE EFFECTIVE IF  THE
 CORPORATION  NO  LONGER MEETS THE REQUIREMENTS TO BE CONSIDERED A QUALI-
 FIED NEW YORK MANUFACTURER UNDER SUBPARAGRAPH (VI) OF PARAGRAPH  (A)  OF
 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER FOR THE TAXA-
 S. 4009                            75                            A. 3009
 
 BLE  YEAR,  AND  IN  SUCH CASE THE CORPORATION SHALL BE TREATED AS A NEW
 YORK S CORPORATION SUBJECT TO SUBSECTION (A) OF THIS SECTION.
   (d)  [New  York]  S termination year. In the case of [a New York] AN 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.] QUALIFIED SUBCHAPTER S
 SUBSIDIARIES ("QSSS"). IF A NEW YORK 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.
   (f)  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,
   (3)  then]  such  corporation  shall be treated as a New York S corpo-
 ration, SUBJECT TO SUBSECTION (A) OF THIS  SECTION,  during  [such]  THE
 year  or  years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED EXCEPT IF THE
 S. 4009                            76                            A. 3009
 
 ELIGIBLE S CORPORATION IS TREATED AS A  NEW  YORK  C  CORPORATION  UNDER
 SUBSECTION (B) OF THIS SECTION.
   (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)] RULES RELATED TO CHANGE IN STATUS. (1) NET OPERATING LOSSES.  ANY
 NET  OPERATING  LOSS CARRYFORWARD THAT OTHERWISE WOULD HAVE BEEN ALLOWED
 UNDER SUBPARAGRAPH (IX) OF PARAGRAPH (A) OF SUBDIVISION ONE  OF  SECTION
 TWO  HUNDRED  TEN  OF  THIS  CHAPTER  FOR  A NEW YORK C CORPORATION THAT
 BECOMES A NEW YORK S CORPORATION SHALL BE HELD IN ABEYANCE AND BE AVAIL-
 ABLE TO SUCH TAXPAYER IF SUCH TAXPAYER IS TREATED AS A NEW YORK C CORPO-
 RATION BECAUSE ITS ELECTION TO BE A FEDERAL S CORPORATION IS  TERMINATED
 OR  BY OPERATION OF SUBSECTION (B) OF THIS SECTION. HOWEVER, THE TAXPAY-
 ER'S YEARS AS A NEW YORK S CORPORATION SHALL BE COUNTED FOR PURPOSES  OF
 COMPUTING ANY TIME PERIOD APPLICABLE TO THE ALLOWANCE OF ANY NET OPERAT-
 ING LOSS.
   (2)  CREDIT  CARRYFORWARDS. ANY CARRYFORWARDS OF CREDITS ALLOWED UNDER
 SECTION TWO HUNDRED TEN-B OF THIS CHAPTER FOR A NEW YORK  C  CORPORATION
 THAT  BECOMES  A NEW YORK S CORPORATION SHALL BE HELD IN ABEYANCE AND BE
 AVAILABLE TO SUCH TAXPAYER IF SUCH TAXPAYER IS TREATED AS A NEW  YORK  C
 CORPORATION BECAUSE ITS ELECTION TO BE A FEDERAL S CORPORATION IS TERMI-
 NATED  OR  BY  OPERATION OF SUBSECTION (B) OF THIS SECTION. 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 ANY
 CREDIT CARRYFORWARD.
   (3)  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
 S. 4009                            77                            A. 3009
 
 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.
   (H)  EXCLUDED  CORPORATION.   FOR PURPOSES OF THIS SECTION AN EXCLUDED
 CORPORATION SHALL BE AS DEFINED IN PARAGRAPH (K) OF SUBDIVISION NINE  OF
 SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
   §  16.  Transition  rules.  Any  prior  net  operating loss conversion
 subtraction that otherwise would have been  allowed  under  subparagraph
 (viii) of paragraph (a) of subdivision one of section two hundred ten of
 the tax law for the taxable years beginning on or after January 1, 2024,
 to  any  taxpayer  that  was a New York C corporation for a taxable year
 beginning on or after January 1, 2023, and before January 1,  2024,  and
 that becomes a New York S corporation for a taxable year beginning on or
 after  January  1, 2024, as a result of the amendments made by this act,
 shall be held in abeyance and be available  to  such  taxpayer  if  such
 taxpayer  is treated as a New York C corporation because its election to
 be a federal S corporation is terminated or by operation  of  subsection
 (b)  of  section six hundred sixty of the  tax law. However, the taxpay-
 er's years as a New York S corporation shall be counted for purposes  of
 computing  the  twenty-year  time  period specified in subclause four of
 clause (B) of subparagraph (viii) of paragraph (a) of subdivision one of
 section two hundred ten of the tax law applicable to  the  allowance  of
 the prior net operating loss conversion subtraction.
   §  17. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2024.
   § 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 CC of this act shall be
 as specifically set forth in the last section of such Parts.

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 4009--A                                            A. 3009--A
 
                       S E N A T E - A S S E M B L Y
 
                             February 1, 2023
                                ___________
 
 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 providing the authority to
   abate interest for taxpayers impacted by declared disasters (Part  A);
   to  amend  the  tax  law,  in relation to clarifying the definition of
   limited partner for the purposes of the metropolitan  commuter  trans-
   portation  mobility tax (Part B); to amend the tax law, in relation to
   making the investment tax credit refundable for eligible  farmers  for
   five  years  (Part C); to amend the tax law, in relation to the empire
   state film production credit and the empire state film post-production
   credit (Part D); to amend the tax law, in relation to the abatement of
   penalties for underpayment of estimated tax by a corporation (Part E);
   to amend the economic development law, in  relation  to  the  COVID-19
   capital  costs  tax  credit  program  (Part  F);  to  amend the social
   services law and the tax law, in relation to creating a tax credit for
   the creation and expansion of child care (Part G); to  amend  the  tax
   law,  in  relation to extending the authorization of any city having a
   population of one million or more to provide  a  biotechnology  credit
   against  the general corporation tax, unincorporated business tax, and
   banking corporation tax of such city (Part H); to amend the  tax  law,
   in  relation to extending the current corporate tax rates (Subpart A);
   to amend the tax law, in relation to extending the  rehabilitation  of
   historic  properties  tax credit (Subpart B); to amend the tax law, in
   relation to extending the empire state commercial production tax cred-
   it for five years (Subpart C); to amend the tax law,  in  relation  to
   extending  provisions  of  law relating to the grade No. 6 heating oil
   conversion tax credit (Subpart D); 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD12574-02-3
 S. 4009--A                          2                         A. 3009--A
 
   theatrical production tax credit and establishing the New  York  state
   council  on  the arts cultural program fund, in relation to the effec-
   tiveness thereof; and to amend the tax law, in  relation  to  the  New
   York  city  musical  and  theatrical  production  tax  credit (Subpart
   E)(Part I); to amend the tax law,  in  relation  to  making  technical
   corrections  to the credit for companies who provide transportation to
   individuals with disabilities (Subpart A); to amend the  tax  law,  in
   relation  to  eligibility  for the brownfield redevelopment tax credit
   (Subpart B); to amend the tax law, in  relation  to  the  pass-through
   entity  tax  and  city  pass-through  entity  tax and making technical
   corrections thereto (Subpart C) (Part  J); to amend the real  property
   tax  law, in relation to simplifying the senior citizens real property
   tax exemption (Part K); to amend chapter 540  of  the  laws  of  1992,
   amending the real property tax law relating to oil and gas charges, in
   relation  to  the  effectiveness  thereof  (Part L); to amend the real
   property tax law, in relation to requiring excess proceeds from a  tax
   foreclosure sale to be returned to the former owner (Part M); to amend
   the  real property tax law and the state administrative procedure act,
   in relation to clarifying the solar or wind  energy  system  appraisal
   model  (Part N); to amend the tax law, in relation to the authority of
   counties to impose sales and compensating use  taxes  permanently;  to
   amend chapter 67 of the laws of 2015, relating to authorizing the city
   of  Yonkers  to impose additional sales tax, in relation to the effec-
   tiveness thereof; to amend section 2 of item R of subpart  C  of  part
   XXX of chapter 58 of the laws of 2020 amending the tax law relating to
   extending the expiration of the authorization to the county of Genesee
   to  impose  an additional  one  percent  of sales and compensating use
   taxes, in relation to  making  such  provisions  permanent;  to  amend
   section 2 of item Z of subpart C of part XXX of chapter 58 of the laws
   of  2020  amending  the  tax law relating to the imposition  of  sales
   and  compensating use taxes by the county of Monroe,  in  relation  to
   making  such  provisions  permanent;  to amend section 4 of item EE of
   subpart C of part XXX of chapter 58 of the laws of 2020  amending  the
   tax law relating to extending the authorization of the county of Onon-
   daga  to  impose  an  additional  rate  of  sales and compensating use
   taxes, in relation to  making  such  provisions  permanent;  to  amend
   section  2  of  item  GG of subpart C of part XXX of chapter 58 of the
   laws of 2020 amending the tax law relating to extending the  authority
   of  the  county  of  Orange  to impose an additional rate of sales and
   compensating use taxes, in relation to making such  provisions  perma-
   nent;  to amend section 3 of item XX of subpart C of part XXX of chap-
   ter 58 of the laws of 2020 amending the tax law relating to  extending
   the  authority  of  the  county  of  Ulster  to impose an additional 1
   percent sales and compensating use tax, in  relation  to  making  such
   provisions  permanent;  and  to  repeal certain provisions of such law
   relating thereto (Part O); to repeal certain  provisions  of  the  tax
   law,   relating   to  eliminating  congestion  surcharge  registration
   requirements (Part P); to amend  the  tax  law,  in  relation  to  the
   payment  of tax on increased quantities of motor fuel and Diesel motor
   fuel on which the taxes pursuant to articles 12-A, 13-A  and  28  were
   not  previously  paid  (Part  Q); to amend the tax law, in relation to
   extending the sales tax exemption for certain sales made through vend-
   ing machines for those operated by business enterprise program partic-
   ipants (Part R); to amend the tax law, in relation to an  increase  in
   the  rate  of  tax  on  cigarettes  (Part S); to amend the tax law, in
   relation to the revocation of certain certificates and civil penalties
 S. 4009--A                          3                         A. 3009--A
 
   for refusal of a cigarette and tobacco inspection (Part T);  to  amend
   the  tax  law  and the administrative code of the city of New York, in
   relation to extending the tax rate reduction under the New York  state
   real  estate transfer tax and the New York city real property transfer
   tax for conveyances of real property to existing real  estate  invest-
   ment  funds  (Part U); to amend the tax law, in relation to permitting
   the commissioner of taxation and finance to seek  judicial  review  of
   decisions  of  the  tax  appeals tribunal (Part V); to amend the state
   finance law, in relation  to  clarifying  the  deposit  timeframe  for
   moneys deposited by the commissioner of taxation and finance (Part W);
   to  amend  the  tax  law, in relation to requiring the New York Racing
   Association, Inc. to enter into a repayment agreement with  the  state
   of  New  York for the repayment of funds provided by the state for the
   renovation of Belmont Park (Part X); to amend the tax law, in relation
   to a keno style lottery game (Part Y); to amend the racing, pari-mutu-
   el wagering and breeding law, in relation to the  operations  of  off-
   track  betting corporations (Part Z); to amend the racing, pari-mutuel
   wagering and breeding law, in relation to the utilization of funds  in
   the Capital region off-track betting corporations' capital acquisition
   funds  (Part AA); to amend the racing, pari-mutuel wagering and breed-
   ing law, in relation to licenses for simulcast facilities, sums relat-
   ing to track simulcast, simulcast of out-of-state thoroughbred  races,
   simulcasting  of races run by out-of-state harness tracks and distrib-
   utions 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 extend-
   ing certain provisions thereof (Part BB); and to amend the tax law, in
   relation to conforming to the federal taxation of S corporations (Part
   CC)
 
   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 2023-2024
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified as Parts A through CC. 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.  The opening paragraph of paragraph a of subdivision twen-
 ty-eighth of section 171 of the tax law, as amended by  chapter  451  of
 the laws of 2022, is amended to read as follows:
 S. 4009--A                          4                         A. 3009--A
 
   [In  the case of a taxpayer who is determined for federal tax purposes
 under the provisions of] HAVE THE AUTHORITY TO  POSTPONE  CERTAIN  DEAD-
 LINES  FOR  A  PERIOD  OF UP TO NINETY DAYS, OR LONGER WHEN NECESSARY TO
 ALIGN WITH RELIEF PROVIDED BY THE INTERNAL REVENUE SERVICE  PURSUANT  TO
 section seven thousand five hundred eight-A of the internal revenue code
 [to  be  affected  by a presidentially declared disaster, or who], FOR A
 TAXPAYER WHO is determined [under regulations promulgated by the commis-
 sioner] to be affected by a presidentially declared  disaster  or  by  a
 disaster  emergency declared by the governor[, have authority to provide
 that a period of up to ninety days, or a longer period when necessary to
 align with relief that has already been provided by the Internal Revenue
 Service under the authority to postpone  certain  deadlines  in  section
 seven  thousand five hundred eight-A of the internal revenue code, may].
 ANY EXTENSION PERIOD PROVIDED PURSUANT TO THE AUTHORITY IN THIS SUBDIVI-
 SION SHALL be disregarded in determining under the tax law, or  under  a
 law  enacted  pursuant to the authority of the tax law or former article
 2-E of the general city law where administered by the  commissioner,  in
 respect  of  any  tax  liability (including any interest, penalty, addi-
 tional amount, or addition to the tax) of such taxpayer:
   § 2. Paragraph c of subdivision twenty-eighth of section  171  of  the
 tax  law,  as added by chapter 8 of the laws of 1998, is amended to read
 as follows:
   c. DEFINITIONS. 1. Presidentially declared disaster. For  purposes  of
 this  subdivision, the term "presidentially declared disaster" means any
 disaster which, with respect to an area, resulted in a subsequent deter-
 mination by the president of the United States that such  area  warrants
 assistance by the federal government under the disaster relief and emer-
 gency assistance act.
   2.  TAXPAYER.  FOR  PURPOSES  OF THIS SUBDIVISION, THE TERM "TAXPAYER"
 MEANS ANY PERSON OR ENTITY REQUIRED TO FILE A RETURN OR REMIT ANY TAX TO
 THE COMMISSIONER PURSUANT TO THIS CHAPTER.
   § 3. Subdivision twenty-eighth of  section  171  of  the  tax  law  is
 amended by adding a new paragraph d to read as follows:
   D.  WHERE  A  TAXPAYER  WHO,  PURSUANT  TO SECTION SEVEN THOUSAND FIVE
 HUNDRED EIGHT-A OF THE INTERNAL REVENUE CODE, IS DETERMINED FOR  FEDERAL
 TAX  PURPOSES  TO  BE AFFECTED BY A PRESIDENTIALLY DECLARED DISASTER, OR
 WHO IS DETERMINED TO BE AFFECTED BY A DISASTER EMERGENCY DECLARED BY THE
 GOVERNOR, BUT THE COMMISSIONER HAS NOT POSTPONED A TAX DEADLINE PURSUANT
 TO THE AUTHORITY IN  PARAGRAPH A OF THIS SUBDIVISION DUE TO SUCH  DISAS-
 TER,  THE  COMMISSIONER MAY ABATE ANY AMOUNT OF INTEREST FROM THE UNDER-
 PAYMENT OF ANY TAX ADMINISTERED BY THE COMMISSIONER UNDER  THIS  CHAPTER
 THAT ACCRUED FOR THE PERIOD DURING WHICH THE TAXPAYER WAS UNABLE TO MEET
 SUCH DEADLINE DUE TO DIRECT IMPACTS OF THE DISASTER.
   § 4. This act shall take effect immediately.
 
                                  PART B
 
   Section  1.  Subsection (e) of section 800 of the tax law, as added by
 section 1 of part C of chapter 25 of the laws of  2009,  is  amended  to
 read as follows:
   (e)  Net earnings from self-employment. Net earnings from self-employ-
 ment has the same meaning as in section 1402  of  the  internal  revenue
 code,  PROVIDED,  HOWEVER,  THAT FOR PURPOSES OF DETERMINING WHETHER THE
 EXCLUSION PURSUANT TO PARAGRAPH 13 OF SUBSECTION (A) OF SECTION 1402  OF
 THE INTERNAL REVENUE CODE APPLIES, AN INDIVIDUAL SHALL NOT BE CONSIDERED
 A  LIMITED PARTNER IF THE INDIVIDUAL, DIRECTLY OR INDIRECTLY, TAKES PART
 S. 4009--A                          5                         A. 3009--A
 
 IN THE CONTROL, OR PARTICIPATES IN THE MANAGEMENT OR OPERATIONS  OF  THE
 PARTNERSHIP  SUCH THAT THE INDIVIDUAL IS NOT A PASSIVE INVESTOR, REGARD-
 LESS OF THE INDIVIDUAL'S TITLE OR CHARACTERIZATION IN A  PARTNERSHIP  OR
 OPERATING AGREEMENT.
   § 2. This act shall take effect immediately.
 
                                  PART C
 
   Section  1. Paragraph (d) of subdivision 1 of section 210-B of the tax
 law, as amended by section 31 of part T of chapter 59  of  the  laws  of
 2015, is amended to read as follows:
   (d) Except as otherwise provided in this paragraph, the credit allowed
 under this subdivision for any taxable year shall not reduce the tax due
 for such year to less than the fixed dollar minimum amount prescribed in
 paragraph  (d)  of  subdivision  one  of section two hundred ten of this
 article. However, if the amount of credit allowable under this  subdivi-
 sion  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  allowed  for a taxable year commencing prior to
 January first, nineteen hundred eighty-seven and not deductible in  such
 taxable  year may be carried over to the following year or years and may
 be deducted from the taxpayer's tax for such year or  years  but  in  no
 event  shall  such credit be carried over to taxable years commencing on
 or after January first, two thousand  two,  and  any  amount  of  credit
 allowed  for  a taxable year commencing on or after January first, nine-
 teen hundred eighty-seven and not deductible in such year may be carried
 over to the fifteen taxable years next following such taxable  year  and
 may be deducted from the taxpayer's tax for such year or years.  In lieu
 of  such carryover, (I) any such taxpayer which qualifies as a new busi-
 ness under paragraph (f) of this subdivision  may  elect  to  treat  the
 amount  of  such  carryover  as  an overpayment of tax to be credited or
 refunded in accordance with  the  provisions  of  section  one  thousand
 eighty-six of this chapter, AND (II) ANY SUCH TAXPAYER THAT IS AN ELIGI-
 BLE  FARMER,  AS  DEFINED IN SUBDIVISION ELEVEN OF THIS SECTION, MAY FOR
 TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT,
 ELECT TO TREAT THE AMOUNT OF SUCH CARRYOVER 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.
   §  2.  Paragraph 5 of subsection (a) of section 606 of the tax law, as
 amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
 follows:
   (5)  If  the  amount of credit allowable under this subsection for any
 taxable year shall exceed the taxpayer's tax for such year,  the  excess
 allowed  for  a taxable year commencing prior to January first, nineteen
 hundred eighty-seven may be carried over to the following year or  years
 and  may be deducted from the taxpayer's tax for such year or years, but
 in no event shall such credit be carried over to taxable years  commenc-
 ing  on  or  after January first, nineteen hundred ninety-seven, and any
 amount of credit allowed for a taxable year commencing on or after Janu-
 ary first, nineteen hundred eighty-seven and not deductible in such year
 may be carried over to the ten taxable years next following such taxable
 year and may be deducted from the taxpayer's tax for such year or years.
 In lieu of carrying over any such excess, (A) a taxpayer  who  qualifies
 as  an  owner  of  a  new business for purposes of paragraph ten of this
 S. 4009--A                          6                         A. 3009--A
 
 subsection may, at [his] THE TAXPAYER'S option, receive such excess as a
 refund, AND (B) A TAXPAYER THAT IS AN  ELIGIBLE  FARMER  AS  DEFINED  IN
 SUBSECTION  (N) OF THIS SECTION MAY, AT THE TAXPAYER'S OPTION, FOR TAXA-
 BLE  YEARS  BEGINNING  BEFORE  JANUARY  FIRST, TWO THOUSAND TWENTY-EIGHT
 RECEIVE SUCH EXCESS AS A REFUND. Any refund paid pursuant to this  para-
 graph  shall  be  deemed  to  be  a  refund  of an overpayment of tax as
 provided in section six hundred eighty-six of  this  article,  provided,
 however, that no interest shall be paid thereon.
   §  3.  This  act  shall  take effect immediately, and apply to taxable
 years beginning on or after January 1, 2023.
 
                                  PART D
 
   Section 1.  Paragraph 2 of subdivision (a) of section 24  of  the  tax
 law,  as  separately amended by sections 1 and 2 of part M of chapter 59
 of the laws of 2020, 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] THIRTY percent, OR THIRTY-FIVE PERCENT IN THE CASE OF AN  ELIGIBLE
 RELOCATED  TELEVISION SERIES, and the qualified production costs paid or
 incurred in the production of a qualified film, provided that:  (i)  the
 qualified  production  costs  (excluding  post production costs) paid or
 incurred which are attributable to the use of tangible property  or  the
 performance  of  services at a qualified film production facility in the
 production of such qualified film equal or exceed  seventy-five  percent
 of  the  production  costs  (excluding  post  production  costs) paid or
 incurred which are attributable to the use of tangible property  or  the
 performance of services at any film production facility within and with-
 out  the state in the production of such qualified film, and (ii) except
 with respect to a  qualified  independent  film  production  company  or
 pilot,  at least ten percent of the total principal photography shooting
 days spent in the production of such qualified film must be spent  at  a
 qualified film production facility. However, if the qualified production
 costs  (excluding  post  production costs) which are attributable to the
 use of tangible property or the performance of services at  a  qualified
 film  production  facility  in  the production of such qualified film is
 less than three million dollars,  then  the  portion  of  the  qualified
 production  costs  attributable  to  the use of tangible property or the
 performance of services in the production of such qualified film outside
 of a qualified film production facility shall be  allowed  only  if  the
 shooting days spent in New York outside of a film production facility in
 the  production  of  such  qualified  film  equal or exceed seventy-five
 percent of the total shooting days spent within  and  without  New  York
 outside  of  a film production facility in the production of such quali-
 fied film. The credit shall be allowed for the taxable year in which the
 production of such qualified film is completed. However, in the case  of
 a  qualified  film that receives funds from additional pool 2, no credit
 shall be claimed before the later of (1) the taxable year the production
 of the qualified film is complete,  or  (2)  the  [first]  taxable  year
 [beginning  immediately  after  the]  THAT  INCLUDES THE LAST DAY OF THE
 allocation year for which the film has  been  allocated  credit  by  the
 [governor's  office  for  motion  picture  and television] DEPARTMENT OF
 ECONOMIC development. If the amount  of  the  credit  is  at  least  one
 million  dollars but less than five million dollars, the credit shall be
 claimed over a two year period beginning in the first  taxable  year  in
 which the credit may be claimed and in the next succeeding taxable year,
 S. 4009--A                          7                         A. 3009--A
 
 with  one-half  of  the  amount  of credit allowed being claimed in each
 year. If the amount of the credit is at least five million dollars,  the
 credit  shall be claimed over a three year period beginning in the first
 taxable  year  in  which  the  credit may be claimed and in the next two
 succeeding taxable years, with one-third of the  amount  of  the  credit
 allowed being claimed in each year.
   §  2.  Paragraph 5 of subdivision (a) of section 24 of the tax law, as
 amended by section 2 of part M of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
   (5)  For the period two thousand fifteen through two thousand [twenty-
 nine] THIRTY-FOUR, 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] COMPOSERS, producers and perform-
 ers, [including] OTHER THAN 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,  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-nine] THIRTY-FOUR of the
 annual allocation made available to the program  pursuant  to  paragraph
 four  of subdivision (e) of this section. Such aggregate amount of cred-
 its shall be allocated by the [governor's office for motion picture  and
 television]  DEPARTMENT OF ECONOMIC 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
 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 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  period  two  thousand fifteen through two thousand [twenty-
 nine] THIRTY-FOUR.
   § 2-a. Paragraph 1 of subdivision (b) of section 24 of the tax law, as
 amended by section 4 of part B of chapter 59 of the  laws  of  2013,  is
 amended to read as follows:
 S. 4009--A                          8                         A. 3009--A

   (1)  "Qualified  production  costs" means production costs only to the
 extent such costs are attributable to the use of  tangible  property  or
 the  performance of services within the state directly and predominantly
 in the production (including pre-production and post  production)  of  a
 qualified  film.    THE  AGGREGATE   TOTAL ELIGIBLE QUALIFIED PRODUCTION
 COSTS FOR PRODUCERS, WRITERS, DIRECTORS, PERFORMERS  (OTHER  THAN  BACK-
 GROUND  ACTORS  WITH  NO SCRIPTED LINES), AND COMPOSERS SHALL NOT EXCEED
 FORTY PERCENT  OF  THE  AGGREGATE  SUM  TOTAL  OF  ALL  OTHER  QUALIFIED
 PRODUCTION COSTS.
   §  3.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
 added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
 amended to read as follows:
   (2)  "Production costs" means any costs for tangible property used and
 services performed directly and predominantly in the production (includ-
 ing  pre-production  and  post  production)   of   a   qualified   film.
 "Production  costs"  shall  not include (i) costs for a story, script or
 scenario to be used for a qualified film and (ii) wages or  salaries  or
 other  compensation  for writers, directors, [including music directors]
 COMPOSERS, producers and performers (other than background  actors  with
 no  scripted  lines)  TO  THE  EXTENT  THOSE  WAGES OR SALARIES OR OTHER
 COMPENSATION  EXCEED  FIVE  HUNDRED  THOUSAND  DOLLARS  PER  INDIVIDUAL.
 "Production  costs"  generally  include  technical  and  crew production
 costs, such as expenditures for film production facilities, or any  part
 thereof, props, makeup, wardrobe, film processing, camera, sound record-
 ing, set construction, lighting, shooting, editing and meals.
   §  4.  Paragraph 8 of subdivision (b) of section 24 of the tax law, as
 added by section 2 of part B of chapter 59  of  the  laws  of  2013,  is
 amended to read as follows:
   (8)  "Relocated television production" shall mean, notwithstanding the
 limitations in subparagraph (i) of paragraph three of this  subdivision,
 a television production that is a talk or variety program that filmed at
 least  [five] TWO seasons outside the state prior to its first relocated
 season in New York, the episodes are filmed before a studio audience  of
 two  hundred or more, and the relocated television production incurs (i)
 at least thirty million dollars in annual production costs in the state,
 or (ii) at least ten million dollars in capital expenditures at a quali-
 fied production facility in the state.
   § 5. Subdivision (b) of section 24 of the tax law is amended by adding
 a new paragraph 9 to read as follows:
   (9) "ELIGIBLE RELOCATED TELEVISION SERIES" SHALL MEAN  THE  FIRST  TWO
 YEARS OF A REGULARLY OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL
 BROADCAST,  REGARDLESS  OF  THE MEDIUM OR MODE OF ITS DISTRIBUTION, IN A
 SERIES OF NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, EACH OF  WHICH
 HAS  A  RUNNING  TIME OF AT LEAST THIRTY MINUTES IN LENGTH (INCLUSIVE OF
 COMMERCIAL ADVERTISEMENT AND INTERSTITIAL PROGRAMMING, IF ANY). FOR  THE
 PURPOSES  OF  THIS  DEFINITION ONLY, A TELEVISION SERIES PRODUCED BY AND
 FOR MEDIA SERVICES PROVIDERS  DESCRIBED  AS  STREAMING  SERVICES  AND/OR
 DIGITAL  PLATFORMS  (AND EXCLUDING NETWORK/CABLE) SHALL MEAN A REGULARLY
 OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL RELEASE IN A  SERIES
 OF  NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, THE AGGREGATE LENGTH
 OF WHICH IS AT LEAST SEVENTY-FIVE MINUTES, ALTHOUGH THE  EPISODES  THEM-
 SELVES  MAY  VARY  IN  DURATION  FROM  THE  THIRTY MINUTES SPECIFIED FOR
 NETWORK/CABLE PRODUCTION, WHICH HAD FILMED A MINIMUM OF SIX EPISODES  OF
 THE  TELEVISION SERIES OUTSIDE THE STATE IMMEDIATELY PRIOR TO RELOCATING
 TO THE STATE, WHERE THE TELEVISION SERIES HAD A TOTAL MINIMUM BUDGET  OF
 AT LEAST ONE MILLION DOLLARS PER EPISODE.
 S. 4009--A                          9                         A. 3009--A
 
   §  6.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
 amended by section 3 of part M of chapter 59 of the  laws  of  2022,  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-nine]  TWENTY-THREE  AND  SEVEN  HUNDRED
 MILLION DOLLARS EACH YEAR STARTING IN TWO THOUSAND  TWENTY-FOUR  THROUGH
 TWO THOUSAND THIRTY-FOUR, 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  [twen-
 ty-nine and] TWENTY-THREE, AND FORTY-FIVE MILLIONS 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 TWENTY-FOUR THROUGH TWO THOUSAND THIRTY-FOUR.
 PROVIDED FURTHER, five million dollars of the annual allocation shall be
 made available for the television writers' and directors' fees and sala-
 ries credit pursuant to section twenty-four-b of this  article  in  each
 year  starting in two thousand twenty through two thousand [twenty-nine]
 THIRTY-FOUR. This amount shall be allocated by  the  [governor's  office
 for  motion  picture  and television] DEPARTMENT OF ECONOMIC 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]
 DEPARTMENT  OF ECONOMIC development must notify taxpayers of their allo-
 cation 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
 S. 4009--A                         10                         A. 3009--A
 
 claimed  before  the later of (1) the taxable year the production of the
 qualified film is complete, or (2) the taxable year [immediately follow-
 ing] THAT INCLUDES THE LAST DAY OF the allocation  year  for  which  the
 film  has  been  allocated  credit  by the [governor's office for motion
 picture and television] DEPARTMENT OF ECONOMIC development.
   § 7. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
 amended  by  section  4  of part M of chapter 59 of the laws of 2022, 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-nine]  TWENTY-THREE  AND  SEVEN  HUNDRED
 MILLION  DOLLARS  IN  EACH  YEAR  STARTING  IN  TWO THOUSAND TWENTY-FOUR
 THROUGH  TWO  THOUSAND  THIRTY-FOUR,  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 arti-
 cle  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-nine] TWENTY-THREE, AND FORTY-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  TWENTY-FOUR  THROUGH  TWO  THOUSAND
 THIRTY-FOUR.  This  amount  shall be allocated by the [governor's office
 for motion picture and television] DEPARTMENT  OF  ECONOMIC  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]
 DEPARTMENT OF ECONOMIC development must notify taxpayers of their  allo-
 cation  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
 S. 4009--A                         11                         A. 3009--A
 
 from  additional pool 2, no empire state film production credit shall be
 claimed before the later of (1) the taxable year the production  of  the
 qualified film is complete, or (2) the taxable year [immediately follow-
 ing]  THAT  INCLUDES  THE  LAST DAY OF the allocation year for which the
 film has been allocated credit by  the  [governor's  office  for  motion
 picture and television] DEPARTMENT OF ECONOMIC development.
   §  8.  Paragraph 2 of subdivision (a) of section 31 of the tax law, as
 amended by section 5 of part M of chapter 59 of the  laws  of  2020,  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] THIRTY percent and the qualified post production costs paid in the
 production  of  a qualified film at a qualified post production facility
 located within the  metropolitan  commuter  transportation  district  as
 defined  in  section  twelve hundred sixty-two of the public authorities
 law or [thirty] THIRTY-FIVE percent and the  qualified  post  production
 costs  paid  in  the  production of a qualified film at a qualified post
 production facility located elsewhere in the state.
   § 9. Paragraph 6 of subdivision (a) of section 31 of the tax  law,  as
 amended  by  section  6  of part M of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (6) For the period two thousand fifteen through two thousand  [twenty-
 nine]  THIRTY-FOUR,  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] COMPOSERS, producers and  perform-
 ers,  [including]  OTHER  THAN background actors with no scripted lines)
 for services performed by those individuals in one of the counties spec-
 ified 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,  Cattaraugus,  Cayuga, Chautauqua, Chemung, Chenango,
 Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,  Franklin,
 Fulton,  Genesee,  Greene, Hamilton, Herkimer, Jefferson, Lewis, Living-
 ston, Madison, Monroe, Montgomery, Niagara, Oneida,  Onondaga,  Ontario,
 Orange,  Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenec-
 tady, 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 paragraph shall be five million dollars each year during the period
 two thousand fifteen through two thousand [twenty-nine]  THIRTY-FOUR  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
 television]  DEPARTMENT OF ECONOMIC 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 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
 S. 4009--A                         12                         A. 3009--A
 
 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  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-
 nine] THIRTY-FOUR.
   § 10. This act shall take effect immediately for initial  applications
 received  on  or  after such effective date; provided, however, that the
 amendments to paragraph 4 of subdivision (e) of section 24  of  the  tax
 law  made  by section six of this act shall take effect on the same date
 and in the same manner as section 6 of chapter 683 of the laws of  2019,
 as amended, takes effect.
 
                                  PART E
 
   Section  1.  Section  1085  of  the tax law is amended by adding a new
 subsection (e-1) to read as follows:
   (E-1) WAIVER OF ADDITION FOR UNDERPAYMENT OF ESTIMATED TAX.  NO  ADDI-
 TION  TO  TAX SHALL BE IMPOSED UNDER SUBSECTION (C) OF THIS SECTION WITH
 RESPECT TO ANY UNDERPAYMENT TO THE EXTENT  THE  COMMISSIONER  DETERMINES
 THAT  BY REASON OF CASUALTY, DISASTER OR OTHER UNUSUAL CIRCUMSTANCES THE
 IMPOSITION OF SUCH ADDITION TO TAX WOULD  BE  AGAINST  EQUITY  AND  GOOD
 CONSCIENCE.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section  1.  Subdivision  4 of section 484 of the economic development
 law, as added by section 1 of part E of chapter 59 of the laws of  2022,
 is amended to read as follows:
   4.  The  business entity must submit its application by [March thirty-
 first] SEPTEMBER THIRTIETH, two thousand twenty-three.
   § 2. This act shall take effect immediately.

                                  PART G
 
   Section 1. Article 6 of the social services law is amended by adding a
 new title 1-A to read as follows:
                                 TITLE 1-A
           CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM
 SECTION 394.   SHORT TITLE.
         394-A. DEFINITIONS.
         394-B. ELIGIBILITY CRITERIA.
         394-C. APPLICATION AND APPROVAL PROCESS.
         394-D. CHILD CARE CREATION AND EXPANSION TAX CREDIT.
         394-E. ALLOCATION OF CREDIT.
         394-F. POWERS AND DUTIES OF THE COMMISSIONER.
         394-G. MAINTENANCE OF RECORDS.
   § 394. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS  THE
 "CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM ACT".
   § 394-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
 S. 4009--A                         13                         A. 3009--A
 
   1.  "CERTIFICATE  OF  TAX  CREDIT" SHALL MEAN THE DOCUMENT ISSUED TO A
 BUSINESS ENTITY BY THE OFFICE AFTER THE OFFICE  HAS  VERIFIED  THAT  THE
 BUSINESS  ENTITY  HAS  MET  ALL  APPLICABLE ELIGIBILITY CRITERIA IN THIS
 TITLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX  CREDIT
 UNDER  THIS  TITLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION
 THREE HUNDRED NINETY-FOUR-D OF THIS TITLE, AND THE SERVICE YEAR.
   2. "CHILD CARE PROGRAM" SHALL MEAN  A  CHILD  DAY  CARE  FOR  WHICH  A
 LICENSE  OR  REGISTRATION TO OPERATE SUCH PROGRAM HAS BEEN ISSUED BY THE
 OFFICE PURSUANT TO SECTION THREE HUNDRED NINETY OF THIS ARTICLE.
   3. "CHILD CARE RATE" SHALL MEAN THE WEEKLY CHILD CARE  SUBSIDY  MARKET
 RATES,  BASED  ON THE EIGHTIETH PERCENTILE OF THE 2021-22 NEW YORK STATE
 CHILD CARE MARKET RATE SURVEY, FOR INFANT AND TODDLER CARE PROVIDED BY A
 LICENSED OR REGISTERED CHILD CARE PROGRAM,  AS  REFLECTED  IN  THE  2022
 CHILD  CARE MARKET RATE SURVEY REPORT PUBLISHED BY THE OFFICE IN COMPLI-
 ANCE WITH SECTION 98.45 OF TITLE FORTY-FIVE OF THE CODE OF FEDERAL REGU-
 LATIONS.
   4. "CHILD CARE SEATS" SHALL MEAN 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  LICENSE  OR  REGISTRATION
 ISSUED FOR SUCH PROGRAM BY THE OFFICE.
   5.  "CREATES CHILD CARE" SHALL MEAN THE MAKING AVAILABLE OF CHILD CARE
 SEATS IN A CHILD CARE PROGRAM BY A BUSINESS ENTITY, DIRECTLY OR  THROUGH
 A  THIRD-PARTY,  FOR EMPLOYEES OF SUCH BUSINESS ENTITY, WHERE SUCH CHILD
 CARE PROGRAM WAS NOT AVAILABLE PRIOR TO APRIL FIRST, TWO THOUSAND  TWEN-
 TY-THREE,  PROVIDED  THAT  THE  COSTS IMPOSED ON SUCH EMPLOYEES FOR SUCH
 CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE RATE.
   6. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE  OFFICE  OF  CHILDREN
 AND FAMILY SERVICES.
   7. "EXPANDS CHILD CARE" SHALL MEAN THE INCREASE IN THE NUMBER OF CHILD
 CARE  SEATS IN A CHILD CARE PROGRAM MADE AVAILABLE BY A BUSINESS ENTITY,
 DIRECTLY OR THROUGH A THIRD PARTY, FOR EMPLOYEES OF SUCH BUSINESS  ENTI-
 TY,  PROVIDED  THAT  SUCH  INCREASE REQUIRES A NEW OR AMENDED LICENSE OR
 REGISTRATION ISSUED BY THE OFFICE  PURSUANT  TO  SECTION  THREE  HUNDRED
 NINETY  OF  THIS  ARTICLE  ON OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-
 THREE, AND, PROVIDED FURTHER, THAT THE COSTS IMPOSED ON  SUCH  EMPLOYEES
 FOR  SUCH  CHILD  CARE  PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD
 CARE RATE.
   8. "OCCUPIED" SHALL MEAN, FOR EACH SERVICE YEAR IN WHICH A CHILD  CARE
 PROGRAM IS IN OPERATION, THE AVERAGE DAILY NUMBER OF CHILDREN IN ATTEND-
 ANCE ON THE PREMISES OF SUCH CHILD CARE PROGRAM.
   9. "OFFICE" SHALL MEAN THE OFFICE OF CHILDREN AND FAMILY SERVICES.
   10.  "SERVICE  YEAR"  SHALL  MEAN  THE TWELVE-MONTH PERIOD, OR PORTION
 THEREOF, COMMENCING ON JANUARY FIRST  AND  ENDING  ON  DECEMBER  THIRTY-
 FIRST.
   §  394-B.  ELIGIBILITY  CRITERIA.  1.  TO BE ELIGIBLE FOR A TAX CREDIT
 UNDER THE CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM, A  BUSI-
 NESS ENTITY MUST:
   (A)  BE A BUSINESS ENTITY THAT IS REQUIRED TO FILE A TAX RETURN PURSU-
 ANT TO ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE TAX LAW;
   (B) BE A CHILD CARE PROGRAM, OR CONTRACT WITH SUCH CHILD CARE PROGRAM,
 AS DEFINED IN THIS TITLE THAT IS  LICENSED  OR  REGISTERED  PURSUANT  TO
 SECTION THREE HUNDRED NINETY OF THIS ARTICLE;
   (C)  CREATE  OR  EXPAND  CHILD CARE SEATS, DIRECTLY OR THROUGH A THIRD
 PARTY, FOR THE EMPLOYEES OF SUCH  BUSINESS  ENTITY  ON  OR  AFTER  APRIL
 FIRST,  TWO THOUSAND TWENTY-THREE AND BEFORE JANUARY FIRST, TWO THOUSAND
 TWENTY-FIVE;
 S. 4009--A                         14                         A. 3009--A
 
   (D) OPERATE A BUSINESS LOCATION IN NEW YORK STATE;
   (E)  BE  IN  SUBSTANTIAL COMPLIANCE WITH ANY CHILD CARE LICENSING LAWS
 AND REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR  OR  OTHER  LAWS
 AND REGULATIONS AS DETERMINED BY THE COMMISSIONER; AND
   (F)  NOT  OWE  PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE
 BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED  BIND-
 ING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY.
   §  394-C.  APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
 SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER  BY  THE
 THIRTY-FIRST OF JANUARY AFTER THE END OF THE SERVICE YEAR.
   2.  THE  COMMISSIONER SHALL ESTABLISH PROCEDURES FOR A BUSINESS ENTITY
 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) PROVIDE THE LICENSE OR REGISTRATION ISSUED TO THE BUSINESS ENTITY,
 DIRECTLY OR THROUGH A THIRD PARTY, BY THE OFFICE TO OPERATE A CHILD CARE
 PROGRAM  INDICATING  THE  NUMBER  OF CHILD CARE SEATS CREATED OR, IN THE
 CASE OF A CHILD CARE PROGRAM THAT HAS EXPERIENCED AN EXPANSION OF  CHILD
 CARE SEATS, THE LICENSE OR REGISTRATION ISSUED BY THE OFFICE DEMONSTRAT-
 ING SUCH EXPANSION;
   (C)  PROVIDE  EVIDENCE  IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
 SIONER ESTABLISHING:
   (I) THE TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED DURING THE
 SERVICE YEAR;
   (II) OF SUCH TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED,  THE
 NUMBER  OF  INFANT CHILD CARE SEATS THAT WERE OCCUPIED AND THE NUMBER OF
 TODDLER CHILD CARE SEATS THAT WERE OCCUPIED;
   (III) THAT, TO THE EXTENT THE BUSINESS ENTITY, DIRECTLY OR  THROUGH  A
 THIRD  PARTY, 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; AND
   (IV)  THAT  THE  COSTS  IMPOSED ON THE BUSINESS ENTITY'S EMPLOYEES FOR
 SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF  THE  CHILD  CARE
 RATE.
   (D) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
 BUSINESS ENTITY'S TAX INFORMATION RELEVANT TO THE ADMINISTRATION OF THIS
 TITLE  WITH  THE  OFFICE. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF
 THIS TITLE SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE
 STATE FREEDOM OF INFORMATION LAW;
   (E) ALLOW THE OFFICE AND ITS AGENTS ACCESS TO ANY AND  ALL  BOOKS  AND
 RECORDS THE OFFICE MAY REQUIRE TO MONITOR COMPLIANCE; AND
   (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE OFFICE
 RELEVANT TO THIS TITLE.
   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 TITLE, THE OFFICE MAY ISSUE TO THAT BUSINESS ENTITY  A
 CERTIFICATE OF TAX CREDIT, WHICH SHALL SET FORTH THE AMOUNT OF THE CRED-
 IT THAT MAY BE CLAIMED AND THE SERVICE YEAR.
   §  394-D.  CHILD  CARE CREATION AND EXPANSION TAX CREDIT. ALLOWANCE OF
 CREDIT. 1. A BUSINESS ENTITY IN THE CHILD CARE  CREATION  AND  EXPANSION
 TAX  CREDIT  PROGRAM  THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION
 THREE HUNDRED NINETY-FOUR-B OF THIS TITLE MAY BE  ELIGIBLE  TO  CLAIM  A
 CREDIT  FOR  THE  PORTION  OF  THE  SERVICE YEAR IN WHICH THE CHILD CARE
 PROGRAM WAS IN OPERATION, EQUAL TO THE SUM OF: (A) THE  PRODUCT  OF  THE
 NUMBER OF INFANT CHILD CARE SEATS THAT HAVE BEEN CREATED OR EXPANDED AND
 S. 4009--A                         15                         A. 3009--A
 
 TWENTY  PERCENT  OF THE CHILD CARE RATE FOR SUCH INFANT CHILD CARE SEATS
 AND (B) 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.   NOTWITHSTAND-
 ING  THE PRECEDING SENTENCE, A CREDIT 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 SECTION THREE HUNDRED NINETY-FOUR-E OF THIS TITLE.
   2. THE CREDIT SHALL BE ALLOWED AS  PROVIDED  IN  SECTION  FORTY-EIGHT,
 SUBDIVISION FIFTY-NINE OF SECTION TWO HUNDRED TEN-B, SUBSECTION (OOO) OF
 SECTION  SIX HUNDRED SIX AND SUBDIVISION (EE) OF SECTION FIFTEEN HUNDRED
 ELEVEN OF THE TAX LAW.
   § 394-E. ALLOCATION OF CREDIT. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS
 ALLOWED  UNDER THIS TITLE, SUBDIVISION FIFTY-NINE OF SECTION TWO HUNDRED
 TEN-B, SUBSECTION (OOO) OF SECTION SIX HUNDRED SIX AND SUBDIVISION  (EE)
 OF  SECTION  FIFTEEN  ELEVEN OF THE TAX LAW SHALL BE TWENTY-FIVE MILLION
 DOLLARS EACH YEAR DURING THE PERIOD TWO THOUSAND  TWENTY-THREE  AND  TWO
 THOUSAND  TWENTY-FOUR.  SUCH  AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
 CATED BY THE OFFICE ON A PRO RATA BASIS TO  EACH  BUSINESS  ENTITY  THAT
 DEMONSTRATES ELIGIBILITY PURSUANT TO SECTION THREE HUNDRED NINETY-FOUR-B
 OF THIS TITLE.
   §  394-F.  POWERS  AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
 MAY PROMULGATE  REGULATIONS  ESTABLISHING  AN  APPLICATION  PROCESS  AND
 ELIGIBILITY CRITERIA, WHICH WILL BE APPLIED CONSISTENT WITH THE PURPOSES
 OF  THIS  TITLE  SO  AS  NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
 FORTH IN THIS TITLE, THAT, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRA-
 RY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMER-
 GENCY 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
 BUSINESS ENTITY APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
 BUSINESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIRE-
 MENTS SET FORTH IN SECTION THREE HUNDRED NINETY-FOUR-B OF THIS TITLE.
   § 394-G. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN
 THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THE  DURATION  OF  THEIR
 PARTICIPATION IN THE PROGRAM FOR AT LEAST THREE YEARS.
   §  2.  The  tax  law  is amended by adding a new section 48 to read as
 follows:
   § 48. CHILD CARE CREATION AND EXPANSION TAX CREDIT. (A)  ALLOWANCE  OF
 CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO OR
 THIRTY-THREE OF THIS CHAPTER 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 THREE HUNDRED NINETY-FOUR-D OF THE  SOCIAL  SERVICES
 LAW  AND SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES THE LAST DAY
 OF THE SERVICE YEAR FOR WHICH THE  CREDIT  IS  CALCULATED.  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. TO BE ELIGIBLE FOR THE CHILD CARE CREATION AND EXPAN-
 SION TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED  A  CERTIFICATE  OF
 S. 4009--A                         16                         A. 3009--A
 
 TAX  CREDIT  BY  THE  OFFICE OF CHILDREN AND FAMILY SERVICES PURSUANT TO
 SECTION THREE HUNDRED  NINETY-FOUR-C  OF  THE  SOCIAL  SERVICES  LAW.  A
 TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABIL-
 ITY  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 OFFICE OF CHILDREN AND FAMILY SERVICES.
   (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF  THIS  CHAP-
 TER,  EMPLOYEES  OF  THE  OFFICE OF CHILDREN AND FAMILY SERVICES AND THE
 DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE:
   (1) 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
   (2) INFORMATION CONTAINED  IN  OR  DERIVED  FROM  CREDIT  CLAIM  FORMS
 SUBMITTED TO THE DEPARTMENT. EXCEPT AS PROVIDED IN PARAGRAPH ONE OF THIS
 SUBDIVISION,  ALL  INFORMATION  EXCHANGED BETWEEN THE OFFICE OF CHILDREN
 AND FAMILY SERVICES AND THE DEPARTMENT SHALL NOT BE SUBJECT  TO  DISCLO-
 SURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW.
   (E)  CREDIT  RECAPTURE.  IF  A CERTIFICATE OF TAX CREDIT ISSUED BY THE
 OFFICE OF CHILDREN AND FAMILY SERVICES UNDER TITLE 1-A OF ARTICLE SIX OF
 THE SOCIAL SERVICES LAW IS REVOKED BY SUCH OFFICE, 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 59;
   (2) ARTICLE 22: SECTION 606, SUBSECTION (OOO);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
   § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 59 to read as follows:
   59.  CHILD  CARE  CREATION  AND EXPANSION TAX CREDIT. (A) ALLOWANCE OF
 CREDIT.   A TAXPAYER SHALL BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
 PROVIDED  IN  SECTION  FORTY-EIGHT  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
 (ooo) to read as follows:
   (OOO) CHILD CARE CREATION AND EXPANSION TAX CREDIT. (1)  ALLOWANCE  OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 S. 4009--A                         17                         A. 3009--A
 
 IN  SECTION FORTY-EIGHT 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 (l) to read as follows:
 (L) CHILD CARE CREATION AND          AMOUNT OF CREDIT
 EXPANSION TAX CREDIT UNDER           UNDER SUBDIVISION 59
 SUBSECTION (OOO)                     OF SECTION TWO HUNDRED
                                      TEN-B
   §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ee) to read as follows:
   (EE) CHILD CARE CREATION AND EXPANSION TAX CREDIT.  (1)  ALLOWANCE  OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN  SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
 FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
 TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
 APPLICABLE.  HOWEVER, IF THE AMOUNT OF THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE 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 ONE THOUSAND
 EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE  PAID
 THEREON.
   § 7. This act shall take effect immediately.
 
                                  PART H
 
   Section 1. Paragraph 5 of subdivision (d) of section 1201-a of the tax
 law,  as  amended by chapter 260 of the laws of 2015, is amended to read
 as follows:
   5. Any local law adopted pursuant to this subdivision may provide  for
 a  credit  as  authorized  by  this  subdivision  for a maximum of three
 consecutive calendar years, provided, however, that any such credit  may
 not  apply to taxable years beginning before January first, two thousand
 [ten] TWENTY-THREE or beginning on or after January first, two  thousand
 [nineteen] TWENTY-SIX.
   § 2. This act shall take effect immediately.
 
                                  PART I
 
   Section  1.  This Part enacts into law major components of legislation
 relating to extending various taxes and tax credits. Each  component  is
 wholly  contained  within  a Subpart identified 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 reference to a section "of this act", when
 S. 4009--A                         18                         A. 3009--A
 
 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 Part sets forth  the  general  effective
 date of this Part.
 
                                 SUBPART A
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 1 of part HHH of chap-
 ter 59 of the laws of 2021, is amended to read as follows:
   For  taxable  years  beginning  before  January  first,  two  thousand
 sixteen,  the  amount  prescribed by this paragraph shall be computed at
 the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
 income  base. For taxable years beginning on or after January first, two
 thousand sixteen, the amount prescribed by this paragraph shall  be  six
 and one-half percent of the taxpayer's business income base. For taxable
 years  beginning  on or after January first, two thousand twenty-one and
 before January first, two thousand [twenty-four]  TWENTY-SEVEN  for  any
 taxpayer  with  a business income base for the taxable year of more than
 five million dollars, the amount prescribed by this paragraph  shall  be
 seven  and  one-quarter  percent of the taxpayer's business income base.
 The taxpayer's business income  base  shall  mean  the  portion  of  the
 taxpayer's  business  income apportioned within the state as hereinafter
 provided. However, in the case of a small business taxpayer, as  defined
 in  paragraph  (f)  of  this  subdivision, the amount prescribed by this
 paragraph shall be computed pursuant to subparagraph (iv) of this  para-
 graph and in the case of a manufacturer, as defined in subparagraph (vi)
 of  this  paragraph,  the  amount  prescribed by this paragraph shall be
 computed pursuant to subparagraph (vi) of this paragraph,  and,  in  the
 case  of a qualified emerging technology company, as defined in subpara-
 graph (vii) of this paragraph, the amount prescribed by  this  paragraph
 shall be computed pursuant to subparagraph (vii) of this paragraph.
   §  2.  Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
 of the tax law, as amended by section 2 of part HHH of chapter 59 of the
 laws of 2021, is amended to read as follows:
   (1) (i) The amount prescribed by  this  paragraph  shall  be  computed
 at .15 percent for each dollar of the taxpayer's total business capital,
 or  the  portion  thereof  apportioned  within  the state as hereinafter
 provided for taxable years beginning before January first, two  thousand
 sixteen.    However, in the case of a cooperative housing corporation as
 defined in the internal revenue code, the applicable rate shall  be  .04
 percent  until  taxable  years  beginning on or after January first, two
 thousand twenty and zero percent for taxable years beginning on or after
 January first, two thousand twenty-one. The rate of tax  for  subsequent
 tax  years shall be as follows: .125 percent for taxable years beginning
 on or after January first,  two  thousand  sixteen  and  before  January
 first,  two thousand seventeen; .100 percent for taxable years beginning
 on or after January first, two thousand  seventeen  and  before  January
 first,  two  thousand eighteen; .075 percent for taxable years beginning
 on or after January first, two  thousand  eighteen  and  before  January
 first,  two  thousand nineteen; .050 percent for taxable years beginning
 on or after January first, two  thousand  nineteen  and  before  January
 first,  two thousand twenty; .025 percent for taxable years beginning on
 or after January first, two thousand twenty and  before  January  first,
 two  thousand  twenty-one;  and  .1875 percent for years beginning on or
 after January first, two thousand twenty-one and before  January  first,
 S. 4009--A                         19                         A. 3009--A
 
 two  thousand  [twenty-four]  TWENTY-SEVEN, and zero percent for taxable
 years beginning on or after January first,  two  thousand  [twenty-four]
 TWENTY-SEVEN.  Provided however, for taxable years beginning on or after
 January  first,  two  thousand  twenty-one,  the rate of tax for a small
 business as defined in paragraph (f) of this subdivision shall  be  zero
 percent.  The rate of tax for a qualified New York manufacturer shall be
 .132 percent for taxable years beginning on or after January first,  two
 thousand  fifteen  and  before January first, two thousand sixteen, .106
 percent for taxable years beginning on or after January first, two thou-
 sand sixteen and before January  first,  two  thousand  seventeen,  .085
 percent for taxable years beginning on or after January first, two thou-
 sand  seventeen  and  before  January first, two thousand eighteen; .056
 percent for taxable years beginning on or after January first, two thou-
 sand eighteen and before January  first,  two  thousand  nineteen;  .038
 percent for taxable years beginning on or after January first, two thou-
 sand  nineteen  and  before  January  first,  two  thousand twenty; .019
 percent for taxable years beginning on or after January first, two thou-
 sand twenty and before January first, two thousand twenty-one; and  zero
 percent  for  years  beginning  on  or after January first, two thousand
 twenty-one. (ii) In no event shall the amount prescribed by  this  para-
 graph exceed three hundred fifty thousand dollars for qualified New York
 manufacturers and for all other taxpayers five million dollars.
   § 3. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subsection (oo) of
 section 606 of the tax law, as amended by section 1 of part CCC of chap-
 ter 59 of the laws of 2021, is amended 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, 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 cred-
 it 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, however, the credit shall not exceed five million dollars. For
 taxable  years  beginning on or after January first, two thousand [twen-
 ty-five] THIRTY, 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 thou-
 sand dollars.
   § 2. Subparagraph (i) of paragraph (a) of subdivision  26  of  section
 210-B  of the tax law, as amended by section 2 of part CCC of chapter 59
 of the laws of 2021, is amended to read as follows:
   (i) For taxable years beginning on or after January first,  two  thou-
 sand ten, and before January first, two thousand [twenty-five] THIRTY, a
 S. 4009--A                         20                         A. 3009--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, however, the credit shall not exceed
 five million dollars.
   §  3.  Clause (B) of subparagraph (ii) of paragraph (a) of subdivision
 26 of section 210-B of the tax law, as added by section 17 of part A  of
 chapter  59  of the laws of 2014, is redesignated as paragraph (a-1) and
 is amended to read as follows:
   (a-1) If the taxpayer is a partner in a partnership or  a  shareholder
 in  a  New York S corporation, then the credit caps imposed in [subpara-
 graph (A)] PARAGRAPH  (A)  of  this  [paragraph]  SUBDIVISION  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.
   § 4. Subparagraph (ii) of 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, is amended to read as follows:
   (ii) For taxable years beginning on or after January first, two  thou-
 sand [twenty-five] THIRTY, a taxpayer shall be allowed a credit as here-
 inafter  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  certified
 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.
   §  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 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,  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 cred-
 it  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, however, the credit shall not exceed five million dollars. For
 taxable years beginning on or after January first, two  thousand  [twen-
 ty-five]  THIRTY,  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
 S. 4009--A                         21                         A. 3009--A
 
 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.
   § 6. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
 law, as amended by section 1 of part AAA of chapter 59 of  the  laws  of
 2019, is amended to read as follows:
   (1)  A taxpayer which is a qualified commercial production company, or
 which is a sole proprietor of a qualified commercial production company,
 and which is subject to tax under article nine-A or twenty-two  of  this
 chapter,  shall  be  allowed  a credit against such tax, pursuant to the
 provisions referenced in subdivision (c) of this section, to be computed
 as provided in this section. Provided, however, to be eligible for  such
 credit, at least seventy-five percent of the production costs (excluding
 post  production  costs)  paid or incurred directly and predominantly in
 the actual filming or recording of  the  qualified  commercial  must  be
 costs  incurred  in  New  York state. The tax credit allowed pursuant to
 this section shall apply  to  taxable  years  beginning  before  January
 first, two thousand [twenty-four] TWENTY-NINE.
   §  2. Paragraph (c) of subdivision 23 of section 210-B of the tax law,
 as amended by chapter 518 of the laws of 2018, is  amended  to  read  as
 follows:
   (c)  Expiration  of  credit. The credit allowed under this subdivision
 shall not be applicable to taxable years beginning on or  after  January
 first, two thousand [twenty-four] TWENTY-NINE.
   §  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
 amended by chapter 518 of the laws  of  2018,  is  amended  to  read  as
 follows:
   (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
 provisions of section twenty-eight of this chapter shall  be  allowed  a
 credit  to  be  computed  as  provided  in  such section against the tax
 imposed by this article. The tax credit allowed pursuant to this section
 shall apply to taxable years beginning before January first,  two  thou-
 sand [twenty-four] TWENTY-NINE.
   § 4. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section  1.  Paragraph  1  of subdivision (a) of section 47 of the tax
 law, as added by section 1 of part I of chapter 59 of the laws of  2022,
 is amended to read as follows:
   (1)  Allowance  of  credit.  A  taxpayer  that  meets  the eligibility
 requirements of subdivision (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 heating 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 at a facility regulated pursuant to section 19-0302 or title ten
 of article seventeen of the environmental conservation law, paid by such
 taxpayer  on  or after January first, two thousand twenty-two and before
 [July] JANUARY first, two  thousand  [twenty-three]  TWENTY-FOUR.    The
 credit cannot exceed five hundred thousand dollars per facility.
 S. 4009--A                         22                         A. 3009--A
 
   § 2. This act shall take effect immediately.
 
                                 SUBPART E
 
   Section 1. 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
 establishing the New York city musical  and  theatrical  production  tax
 credit  and establishing the New York state council on the arts cultural
 program fund, as amended by section 7 of part F of  chapter  59  of  the
 laws of 2022, is amended to read as follows:
   §  6.  This  act shall take effect immediately; provided however, that
 [section] SECTIONS 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] 2026 and shall expire and be deemed repealed January 1, [2024]
 2026; provided further, however that the obligations under  paragraph  3
 of  subdivision  (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] 2027.
   § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
 amended by section 1 of part F of chapter 59 of the  laws  of  2022,  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  prior
 to  January  first,  two  thousand  [twenty-three]  TWENTY-FIVE.    [For
 productions whose first performance is 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  theat-
 rical production unless the New York city tourism economy has not suffi-
 ciently  recovered, as determined by the department of economic develop-
 ment 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 limit-
 ed  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.
   § 3. Subparagraph (i) of paragraph 5 of  subdivision  (b)  of  section
 24-c  of the tax law, as amended by section 2 of part F of chapter 59 of
 the laws of 2022, 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, September thirtieth, two  thousand
 [twenty-three]  TWENTY-FIVE or the date the qualified musical and theat-
 rical production closes.
   § 4.  Subdivision (c) 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:
 S. 4009--A                         23                         A. 3009--A
 
   (c) The credit shall be allowed for the taxable year beginning  on  or
 after  January  first, two thousand twenty-one but before January first,
 two thousand [twenty-four]  TWENTY-SIX.    A  qualified  New  York  city
 musical  and theatrical production company shall claim the credit in the
 year in which its credit period ends.
   §  5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax
 law, paragraph 1 as amended by section 3 of part F of chapter 59 of  the
 laws of 2022, and paragraph 2 as amended by section 4 of part F of chap-
 ter 59 of the laws of 2022, are 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 [two] THREE
 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.
   (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 June  thirtieth,
 two thousand [twenty-three] TWENTY-FIVE.
   §  6. This act shall take effect immediately; provided that the amend-
 ments to section 24-c of the tax law made by sections two,  three,  four
 and  five  of  this  act shall not affect the repeal of such section and
 shall be deemed repealed therewith.
   § 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 dates of Subparts A through E of this act shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART J
 
   Section 1. This act enacts into law major  components  of  legislation
 relating  to  taxation.  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
 S. 4009--A                         24                         A. 3009--A
 
 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. Paragraph (b) of subdivision 38 of section 210-B of the tax
 law,  as  amended  by  section  2 of part L of chapter 59 of the laws of
 2022, is amended to read as follows:
   (b) Definitions. The term "accessible by  individuals  with  disabili-
 ties"  shall,  for  the purposes of this subdivision, refer to a vehicle
 that complies with federal regulations promulgated pursuant to the Amer-
 icans with Disabilities Act applicable to vans under twenty-two feet  in
 length,  by the federal Department of Transportation, in Code of Federal
 Regulations, title 49, parts 37 and 38[, and by the federal Architecture
 and Transportation Barriers Compliance Board, in Code of  Federal  Regu-
 lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
 ty  Standards, Code of Federal Regulations, title 49, part [57] 571. The
 term "electric vehicle" shall, for the  purposes  of  this  subdivision,
 have  the  same  meaning as in section sixty-six-s of the public service
 law.
   § 2. Paragraph 2 of subsection (tt) of section 606 of the tax law,  as
 amended  by  section  4  of part L of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (2) Definitions. The term "accessible by  individuals  with  disabili-
 ties"  shall,  for  the  purposes of this subsection, refer to a vehicle
 that complies with federal regulations promulgated pursuant to the Amer-
 icans with Disabilities Act applicable to vans under twenty-two feet  in
 length,  by the federal Department of Transportation, in Code of Federal
 Regulations, title 49, parts 37 and 38[, and by the federal Architecture
 and Transportation Barriers Compliance Board, in Code of  Federal  Regu-
 lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
 ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571.
 The  term "electric vehicle" shall, for the purposes of this subsection,
 have the same meaning as in section sixty-six-s of  the  public  service
 law.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2023.
 
                                 SUBPART B
 
   Section  1.  Paragraph  2  of subdivision (b) of section 21 of the tax
 law, as amended by section 7 of part LL of chapter 58  of  the  laws  of
 2022, is amended to read as follows:
   (2)  Site  preparation  costs. The term "site preparation costs" shall
 mean all amounts properly chargeable to a  capital  account,  which  are
 paid  or  incurred  which  are  necessary to implement a site's investi-
 gation, remediation, or qualification for a certificate  of  completion,
 and shall include costs of: excavation; demolition; activities undertak-
 en  under the oversight of the department of labor or in accordance with
 standards established by the  department  of  health  to  remediate  and
 dispose  of  regulated materials including asbestos, lead or polychlori-
 nated biphenyls; environmental  consulting;  engineering;  legal  costs;
 transportation, disposal, treatment or containment of contaminated soil;
 remediation  measures  taken  to  address contaminated soil vapor; cover
 systems consistent with  applicable  regulations;  physical  support  of
 S. 4009--A                         25                         A. 3009--A

 excavation;  dewatering  and  other work to facilitate or enable remedi-
 ation activities; sheeting,  shoring,  and  other  engineering  controls
 required  to prevent off-site migration of contamination from the quali-
 fied  site  or migrating onto the qualified site; and the costs of fenc-
 ing, temporary electric wiring,  scaffolding,  and  security  facilities
 until  such  time as the certificate of completion has been issued. Site
 preparation shall include all costs paid or incurred within sixty months
 after the last  day  of  the  tax  year  in  which  the  certificate  of
 completion  is issued that are necessary for compliance with the certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program defined in such certificate  of  completion  including  but  not
 limited  to  institutional  controls,  engineering controls, an approved
 site management plan, and an environmental easement with respect to  the
 qualified  site;  provided,  however, with respect to any qualified site
 for which [the department of environmental  conservation  has  issued  a
 notice  to the taxpayer on or after July first, two thousand fifteen but
 on or before  June  twenty-fourth,  two  thousand  twenty-one  that  its
 request  for  participation  has  been accepted under subdivision six of
 section 27-1407 of the environmental conservation law] A CERTIFICATE  OF
 COMPLETION  WAS  ISSUED ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN BUT
 ON OR BEFORE JUNE TWENTY-FOURTH, TWO THOUSAND TWENTY-ONE, site  prepara-
 tion  shall include all costs paid or incurred within eighty-four months
 after the last  day  of  the  tax  year  in  which  the  certificate  of
 completion  is issued that are necessary for compliance with the certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program defined in such certificate  of  completion  including  but  not
 limited  to  institutional  controls,  engineering controls, an approved
 site management plan, and an environmental easement with respect to  the
 qualified  site.  Site  preparation  cost shall not include the costs of
 foundation systems that exceed the  cover  system  requirements  in  the
 regulations applicable to the qualified site.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in effect on and after April 9, 2022.
 
                                 SUBPART C
 
   Section 1. Paragraphs 1, 2 and 3 of subsection (h) of section  860  of
 the  tax  law, paragraph 1 as added by section 1 of part C of chapter 59
 of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added
 by section 2 of subpart A of part MM of chapter 59 of the laws of  2022,
 are amended to read as follows:
   (1)  In  the case of an electing partnership, the sum of (i) all items
 of income, gain, loss, or deduction derived from or connected  with  New
 York  sources to the extent they are included in the taxable income of a
 nonresident partner subject to tax under article twenty-two, under para-
 graph one of subsection (a) of section six hundred  thirty-two  of  this
 chapter; [and] (ii) all items of income, gain, loss, or deduction to the
 extent  they  are  included  in the taxable income of a resident partner
 subject to tax under article twenty-two of this chapter; AND  (III)  ALL
 PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW
 YORK, TAXES PAID UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY
 OF NEW YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIAL-
 LY SIMILAR TO THE TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT, FOR
 FEDERAL  INCOME  TAX  PURPOSES,  THE  TAXES ARE PAID AND DEDUCTED IN THE
 TAXABLE YEAR, AND ARE INCLUDED IN THE TAXABLE  INCOME  OF  THE  PARTNERS
 S. 4009--A                         26                         A. 3009--A
 
 SUBJECT  TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE
 YEAR.
   (2)  In the case of an electing standard S corporation, the sum of (I)
 all items of income, gain, loss, or deduction derived from or  connected
 with  New  York sources to the extent they would be included under para-
 graph two of subsection (a) of section six hundred  thirty-two  of  this
 chapter  in  the  taxable  income  of a shareholder subject to tax under
 article twenty-two of this chapter; AND  (II)  ALL  PASS-THROUGH  ENTITY
 TAXES  INCLUDING  TAXES  PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
 UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
 TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMILAR TO  THE
 TAXES  PAID  UNDER  THIS ARTICLE, TO THE EXTENT THAT, FOR FEDERAL INCOME
 TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE  YEAR,  AND
 ARE  INCLUDED  IN  THE TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX
 UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   (3) In the case of an electing resident S corporation, the sum of  (I)
 all  items  of  income,  gain, loss, or deduction to the extent they are
 included in the taxable income of a shareholder  subject  to  tax  under
 article  twenty-two  of  this  chapter; AND (II) ALL PASS-THROUGH ENTITY
 TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW  YORK,  TAXES  PAID
 UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
 TAXES  PAID  TO  OTHER  JURISDICTIONS  THAT ARE SUBSTANTIALLY SIMILAR TO
 TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT,  FOR  FEDERAL  INCOME
 TAX  PURPOSES,  THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND
 ARE INCLUDED IN THE TAXABLE INCOME OF THE SHAREHOLDERS  SUBJECT  TO  TAX
 UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   §  2.  Subsection  (c)  of  section  861 of the tax law, as amended by
 section 3 of subpart A of part MM of chapter 59 of the laws of 2022,  is
 amended to read as follows:
   (c) The annual election must be made [by] ON OR BEFORE the due date of
 the  first  estimated  payment under section eight hundred sixty-four of
 this article and will take effect for the current taxable year. Only one
 election may be made during each calendar year. An election  made  under
 this section is irrevocable [as of] AFTER the due date.
   §  3.  Paragraphs  1 and 2 of subsection (b) of section 867 of the tax
 law, as added by section 1 of subpart B of part MM of chapter 59 of  the
 laws of 2022, are amended to read as follows:
   (1)  In  the  case of an electing city partnership, the sum of (I) all
 items of income, gain,  loss,  or  deduction  to  the  extent  they  are
 included in the city taxable income of a partner or member of the elect-
 ing  city  partnership who is a city taxpayer; AND (II) ALL PASS-THROUGH
 ENTITY TAXES INCLUDING TAXES PAID UNDER ARTICLE  TWENTY-FOUR-A  OF  THIS
 CHAPTER  TO  NEW  YORK, TAXES PAID UNDER THIS ARTICLE TO THE CITY OF NEW
 YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMI-
 LAR TO TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS  CHAPTER,  TO  THE
 EXTENT  THAT,  FOR  FEDERAL INCOME TAX PURPOSES, THE TAXES WERE PAID AND
 DEDUCTED IN THE TAXABLE YEAR, AND  THEY  ARE  INCLUDED  IN  THE  TAXABLE
 INCOME  OF  THE PARTNERS SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS
 CHAPTER FOR THE TAXABLE YEAR.
   (2) In the case of an electing city resident S corporation, the sum of
 (I) all items of income, gain, loss, or deduction  to  the  extent  they
 would  be  included  in  the city taxable income of a shareholder of the
 electing city resident S corporation who is a city  taxpayer;  AND  (II)
 ALL  PASS-THROUGH  ENTITY TAXES INCLUDING TAXES PAID UNDER ARTICLE TWEN-
 TY-FOUR-A OF THIS CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE  TO
 THE  CITY  OF  NEW  YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE
 S. 4009--A                         27                         A. 3009--A
 
 SUBSTANTIALLY SIMILAR TO TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF  THIS
 CHAPTER,  TO THE EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE TAXES
 WERE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND THEY ARE INCLUDED IN THE
 TAXABLE  INCOME OF THE SHAREHOLDERS SUBJECT TO TAX UNDER ARTICLE TWENTY-
 TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   § 4. Subsection (e) of section 867 of the tax law, as added by section
 1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
 to read as follows:
   (e)  City  taxpayer. A city taxpayer means [a city resident individual
 subject to the tax imposed pursuant to the authority of  article  thirty
 of this chapter]:
   (1)  A  CITY  RESIDENT  INDIVIDUAL,  AS  DEFINED  IN SUBSECTION (A) OF
 SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER; AND
   (2) A CITY RESIDENT TRUST OR ESTATE, AS DEFINED IN SUBSECTION  (C)  OF
 SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER.
   § 5. Subsection (i) of section 867 of the tax law, as added by section
 1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
 to read as follows:
   (i) Eligible city partnership. Eligible  city  partnership  means  any
 partnership as provided for in section 7701(a)(2) of the Internal Reven-
 ue  Code that has a filing requirement under paragraph one of subsection
 (c) of section six hundred fifty-eight of  this  chapter  other  than  a
 publicly  traded  partnership as defined in section 7704 of the Internal
 Revenue Code, where at least one partner or member is a  city  [resident
 individual]  TAXPAYER. An eligible city partnership includes any entity,
 including a limited liability company,  treated  as  a  partnership  for
 federal  income  tax  purposes  that otherwise meets the requirements of
 this subsection.
   § 6. Subsection (j) of section 867 of the tax law, as added by section
 1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
 to read as follows:
   (j)  Eligible  city  resident  S corporation. Eligible city resident S
 corporation means any New York S  corporation  as  defined  pursuant  to
 subdivision  one-A  of section two hundred eight of this chapter that is
 subject to tax under section two hundred nine of this chapter  that  has
 only  city [resident individual] TAXPAYER shareholders. An eligible city
 resident S corporation includes any entity, including a limited  liabil-
 ity company, treated as an S corporation for federal income tax purposes
 that otherwise meets the requirements of this subsection.
   § 7. Subsection (c) of section 868 of the tax law, as added by section
 1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
 to read as follows:
   (c) The annual election to be taxed pursuant to this article  must  be
 made [by] ON OR BEFORE the due date of the first estimated payment under
 section  eight  hundred  sixty-four of this chapter and will take effect
 for the current taxable year. Only one election to be taxed pursuant  to
 this  article  may  be  made during each calendar year. An election made
 under this section is irrevocable [as of] AFTER such due  date.  To  the
 extent  an  election  made under section eight hundred sixty-one of this
 chapter is revoked or otherwise invalidated an election made under  this
 section is automatically invalidated.
   §  8. This act shall take effect immediately, provided, however, that:
 (i) sections one and two of this act shall be deemed  to  have  been  in
 full force and effect on and after the effective date of part C of chap-
 ter  59  of  the laws of 2021; (ii) sections three and seven of this act
 shall be deemed to have been in full force and effect on and  after  the
 S. 4009--A                         28                         A. 3009--A
 
 effective date of section 1 of subpart B of part MM of chapter 59 of the
 laws  of  2022;  and (iii) sections four, five and six of this act shall
 apply to taxable years beginning on or after January 1, 2023.
   § 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 dates of Subparts A through C of this act shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART K
 
   Section  1.  Paragraphs (a) and (d) of subdivision 1 of section 467 of
 the real property tax law, as amended by section 1 of part B of  chapter
 686 of the laws of 2022, are amended to read as follows:
   (a)  Real  property  owned  by  one  or  more persons, each of whom is
 sixty-five years of age or over, or real property owned by [husband  and
 wife]  A  MARRIED COUPLE or by siblings, one of whom is sixty-five years
 of age or over, or real property owned by one or more persons,  some  of
 whom  qualify  under  this  section and the others of whom qualify under
 section four hundred fifty-nine-c of this title, shall  be  exempt  from
 payments  in lieu of taxes (PILOT) to the battery park city authority or
 from taxation by any municipal  corporation  in  which  located  to  the
 extent  of  fifty per centum of the assessed valuation thereof, provided
 the governing board of such municipality, after public hearing, adopts a
 local law, ordinance or resolution providing therefor. For the  purposes
 of  this  section,  [sibling  shall  mean a brother or a sister, whether
 related] THE TERM "SIBLING" SHALL INCLUDE PERSONS WHOSE RELATIONSHIP  AS
 SIBLINGS  HAS BEEN ESTABLISHED through EITHER half blood, whole blood or
 adoption.
   (d) The real property tax or PILOT exemption on real property owned by
 [husband and wife] A MARRIED COUPLE, one of whom is sixty-five years  of
 age  or  over,  once  granted,  shall  not be rescinded by any municipal
 corporation solely because of the death of the older spouse so  long  as
 the surviving spouse is at least sixty-two years of age.
   §  2.  Subdivision  3  of section 467 of the real property tax law, as
 amended by section 1 of part B of chapter 686 of the laws of 2022, para-
 graph (a) as separately amended by chapter 488 of the laws of  2022,  is
 amended to read as follows:
   3. No exemption shall be granted:
   (a)(I) if the income of the owner or the combined income of the owners
 of  the property for the APPLICABLE income tax year [immediately preced-
 ing the date of making application for exemption]  exceeds  the  sum  of
 three  thousand  dollars, or such other sum not less than three thousand
 dollars nor more than [twenty-six thousand dollars beginning July first,
 two thousand six, twenty-seven thousand dollars  beginning  July  first,
 two  thousand seven, twenty-eight thousand dollars beginning July first,
 two thousand eight, twenty-nine thousand dollars beginning  July  first,
 two  thousand  nine,  fifty  thousand  dollars beginning July first, two
 thousand twenty-two, and in a city with a population of one  million  or
 S. 4009--A                         29                         A. 3009--A

 more  fifty  thousand  dollars beginning July first, two thousand seven-
 teen,] FIFTY THOUSAND DOLLARS, as may be  provided  by  the  local  law,
 ordinance or resolution adopted pursuant to this section.
   (II)  Where  the taxable status date is on or before April fourteenth,
 THE APPLICABLE income tax year shall [mean] BE the  twelve-month  period
 for which the owner or owners filed a federal personal income tax return
 for  the  year before the income tax year immediately preceding the date
 of application and where the taxable status date is on  or  after  April
 fifteenth,  THE  APPLICABLE  income tax year shall [mean] BE the twelve-
 month period for which the owner or  owners  filed  a  federal  personal
 income tax return for the income tax year immediately preceding the date
 of application.
   (III) Where title is vested in [either the husband or the wife, their]
 A  MARRIED  PERSON, THE combined income OF SUCH PERSON AND SUCH PERSON'S
 SPOUSE may not exceed such sum, except where [the husband  or  wife,  or
 ex-husband  or ex-wife] ONE SPOUSE OR EX-SPOUSE is absent from the prop-
 erty as provided in subparagraph (ii) of paragraph (d) of this  subdivi-
 sion,  then  only  the income of the spouse or ex-spouse residing on the
 property shall be considered and may not exceed such sum.  [Such  income
 shall  include  social security and retirement benefits, interest, divi-
 dends, total gain from the sale or exchange of a capital asset which may
 be offset by a loss from the sale or exchange of a capital asset in  the
 same  income  tax  year,  net rental income, salary or earnings, and net
 income from self-employment, but shall not include a return of  capital,
 gifts,  inheritances,  payments  made  to  individuals  because of their
 status as victims of Nazi persecution, as defined  in  P.L.  103-286  or
 monies  earned  through  employment  in  the  federal foster grandparent
 program and  any  such  income  shall  be  offset  by  all  medical  and
 prescription  drug  expenses  actually paid which were not reimbursed or
 paid for by insurance, if the governing board of a municipality, after a
 public hearing, adopts a local law, ordinance  or  resolution  providing
 therefor.  In  addition,  an  exchange  of  an  annuity  for  an annuity
 contract, which resulted in non-taxable gain, as determined  in  section
 one thousand thirty-five of the internal revenue code, shall be excluded
 from  such income. Provided that such exclusion shall be based on satis-
 factory proof that such an exchange was solely an exchange of an annuity
 for an annuity contract that resulted in a non-taxable  transfer  deter-
 mined  by  such  section of the internal revenue code. Furthermore, such
 income shall not include the proceeds of a reverse mortgage, as  author-
 ized  by  section  six-h  of  the  banking law, and sections two hundred
 eighty and two hundred eighty-a of  the  real  property  law;  provided,
 however,  that  monies  used  to  repay  a  reverse  mortgage may not be
 deducted from income, and provided additionally  that  any  interest  or
 dividends  realized  from  the  investment  of reverse mortgage proceeds
 shall be considered income. The provisions of  this  paragraph  notwith-
 standing,  such  income  shall  not  include veterans disability compen-
 sation, as defined in Title 38 of the United States  Code  provided  the
 governing  board  of  such  municipality, after public hearing, adopts a
 local law, ordinance or resolution providing therefor. In computing  net
 rental  income  and  net  income  from  self-employment  no depreciation
 deduction shall be allowed for the exhaustion, wear and tear of real  or
 personal property held for the production of income;]
   (IV)  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, PLUS ANY SOCIAL SECU-
 S. 4009--A                         30                         A. 3009--A
 
 RITY BENEFITS NOT INCLUDED IN SUCH  ADJUSTED  GROSS  INCOME,  MINUS  ANY
 DISTRIBUTIONS,  TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME,
 RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIRE-
 MENT ANNUITY; PROVIDED THAT IF NO SUCH RETURN WAS FILED FOR THE APPLICA-
 BLE INCOME TAX YEAR, THE APPLICANT'S INCOME SHALL BE DETERMINED BASED ON
 THE  AMOUNTS  THAT WOULD HAVE SO BEEN REPORTED IF SUCH A RETURN HAD BEEN
 FILED; AND PROVIDED FURTHER, THAT THE GOVERNING BOARD OF A  MUNICIPALITY
 MAY ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT ANY SOCIAL
 SECURITY  BENEFITS  THAT  WERE  NOT INCLUDED IN THE APPLICANT'S ADJUSTED
 GROSS INCOME SHALL  NOT  BE  CONSIDERED  INCOME  FOR  PURPOSES  OF  THIS
 SECTION;
   (b)  unless  the owner shall have held an exemption under this section
 for [his] THE OWNER'S previous residence or  unless  the  title  of  the
 property shall have been vested in the owner or one of the owners of the
 property  for  at  least  twelve consecutive months prior to the date of
 making application for exemption, provided, however, that in  the  event
 of  the  death  of  [either a husband or wife] A MARRIED PERSON in whose
 name title of the property shall have been vested at the time  of  death
 and then becomes vested solely in [the survivor] SUCH PERSON'S SURVIVING
 SPOUSE  by  virtue of devise by or descent from the deceased [husband or
 wife] SPOUSE, the time of ownership of  the  property  by  the  deceased
 [husband or wife] SPOUSE shall be deemed also a time of ownership by the
 [survivor]  SURVIVING  SPOUSE and such ownership shall be deemed contin-
 uous for the purposes of computing such  period  of  twelve  consecutive
 months.  In  the event of a transfer by [either a husband or wife to the
 other] A MARRIED PERSON TO SUCH PERSON'S spouse of all or  part  of  the
 title  to  the  property,  the  time of ownership of the property by the
 transferor spouse shall be deemed also a time of ownership by the trans-
 feree spouse and such ownership  shall  be  deemed  continuous  for  the
 purposes  of  computing  such period of twelve consecutive months. Where
 property of the owner or owners has been acquired  to  replace  property
 formerly  owned  by  such owner or owners and taken by eminent domain or
 other involuntary proceeding, except a tax sale, the period of ownership
 of the former property shall be combined with the period of ownership of
 the property for which application is made for exemption and such  peri-
 ods  of ownership shall be deemed to be consecutive for purposes of this
 section. Where a residence is sold and replaced with another within  one
 year  and  both residences are within the state, the period of ownership
 of both properties shall be  deemed  consecutive  for  purposes  of  the
 exemption from taxation by a municipality within the state granting such
 exemption. Where the owner or owners transfer title to property which as
 of  the  date  of  transfer  was exempt from taxation or PILOT under the
 provisions of this section, the reacquisition of title by such owner  or
 owners  within  nine  months  of the date of transfer shall be deemed to
 satisfy the requirement of this paragraph that the title of the property
 shall have been vested in the owner or one of the owners for such period
 of twelve consecutive months. Where, upon or subsequent to the death  of
 an owner or owners, title to property which as of the date of such death
 was exempt from taxation or PILOT under such provisions, becomes vested,
 by  virtue of devise or descent from the deceased owner or owners, or by
 transfer by any other means within nine months after such death,  solely
 in  a  person or persons who, at the time of such death, maintained such
 property as a primary residence, the requirement of this paragraph  that
 the  title of the property shall have been vested in the owner or one of
 the owners for such period of twelve consecutive months shall be  deemed
 satisfied;
 S. 4009--A                         31                         A. 3009--A

   (c)  unless the property is used exclusively for residential purposes,
 provided, however, that in the event any portion of such property is not
 so used exclusively for residential  purposes  but  is  used  for  other
 purposes,  such  portion  shall  be subject to taxation or PILOT and the
 remaining  portion  only  shall be entitled to the exemption provided by
 this section;
   (d) unless the real property is the legal residence of and is occupied
 in whole or in part by the owner or by all of the owners of the  proper-
 ty:  except  where,  (i)  an  owner  is  absent from the residence while
 receiving health-related care as an inpatient of  a  residential  health
 care  facility,  as  defined  in section twenty-eight hundred one of the
 public health law, provided that any  income  accruing  to  that  person
 shall  only be income only to the extent that it exceeds the amount paid
 by such owner, spouse,  or  co-owner  for  care  in  the  facility,  and
 provided  further,  that  during  such  confinement such property is not
 occupied by other than the spouse or co-owner of such  owner;  or,  (ii)
 the  real  property is owned by a [husband and/or wife, or an ex-husband
 and/or an ex-wife, and either] MARRIED PERSON OR A MARRIED COUPLE, OR BY
 A FORMERLY MARRIED PERSON OR A FORMERLY MARRIED COUPLE, AND  ONE  SPOUSE
 OR  EX-SPOUSE  is  absent from the residence due to divorce, legal sepa-
 ration or abandonment and all other provisions of this section  are  met
 provided  that  where  an  exemption  was  previously  granted when both
 resided on the property, then the person remaining on the real  property
 shall be sixty-two years of age or over.
   § 3. Paragraph (a) of subdivision 3-a of section 467 of the real prop-
 erty  tax  law,  as amended by section 1 of part B of chapter 686 of the
 laws of 2022, is amended to read as follows:
   (a) For the purposes of this section, title to that  portion  of  real
 property  owned  by  a  cooperative  apartment  corporation  in  which a
 tenant-stockholder of such corporation resides and which is  represented
 by  [his]  THE  TENANT-STOCKHOLDER'S  share  or  shares of stock in such
 corporation as determined by its or their proportional  relationship  to
 the  total outstanding stock of the corporation, including that owned by
 the corporation, shall be deemed to be vested in such  tenant-stockhold-
 er.
   §  4.  Subdivisions  5 and 5-a of section 467 of the real property tax
 law, as amended by section 1 of part B of chapter 686  of  the  laws  of
 2022, are amended to read as follows:
   5. Application for such exemption must be made by the owner, or all of
 the  owners  of the property, on forms prescribed by the commissioner to
 be furnished by the appropriate assessing authority  and  shall  furnish
 the  information and be executed in the manner required or prescribed in
 such forms, and shall be filed in such assessor's office  on  or  before
 the appropriate taxable status date. Notwithstanding any other provision
 of law, at the option of the municipal corporation, any person otherwise
 qualifying  under  this  section shall not be denied the exemption under
 this section if [he] SUCH PERSON becomes sixty-five years of  age  after
 the  appropriate  taxable  status date and on or before December thirty-
 first of the same year.
   5-a. Any local law or ordinance adopted pursuant to paragraph  (a)  of
 subdivision  one of this section may be amended, or a local law or ordi-
 nance may be adopted to provide,  notwithstanding  subdivision  five  of
 this  section,  that an application for such exemption may be filed with
 the assessor after the appropriate taxable status  date  but  not  later
 than  the  last  date  on which a petition with respect to complaints of
 assessment may be filed, where failure  to  file  a  timely  application
 S. 4009--A                         32                         A. 3009--A
 
 resulted  from:  (a)  a death of the applicant's spouse, child, parent[,
 brother or sister] OR SIBLING; or (b) an illness of the applicant or  of
 the  applicant's  spouse, child, parent[, brother or sister] OR SIBLING,
 which  actually prevents the applicant from filing on a timely basis, as
 certified by a licensed physician. The assessor shall  approve  or  deny
 such application as if it had been filed on or before the taxable status
 date.
   §  5.  Subdivision  6  of section 467 of the real property tax law, as
 amended by section 1 of part B of chapter 686 of the laws  of  2022,  is
 amended to read as follows:
   6.  (a)  At  least  sixty days prior to the appropriate taxable status
 date, the assessing authority shall mail to each person who was  granted
 exemption  pursuant  to  this section on the latest completed assessment
 roll an application form and a notice  that  such  application  must  be
 filed  on or before the taxable status date and be approved in order for
 the exemption to be granted. The assessing authority shall, within three
 days of the completion and filing  of  the  tentative  assessment  roll,
 notify  by mail any applicant [who has included with his] WHOSE applica-
 tion INCLUDES at least one self-addressed,  pre-paid  envelope,  of  the
 approval  or  denial  of  the  application;  provided, however, that the
 assessing authority shall, upon the receipt and filing of  the  applica-
 tion,  send  by  mail  notification  of receipt to any applicant who has
 included two of such envelopes with the application. Where an  applicant
 is  entitled  to  a  notice of denial pursuant to this subdivision, such
 notice shall be on a form prescribed by the commissioner and shall state
 the reasons for such denial and shall further state that  the  applicant
 may  have  such  determination  reviewed  in the manner provided by law.
 Failure to mail any such application form or notices or the  failure  of
 such  person  to  receive  any  of  the same shall not prevent the levy,
 collection and enforcement of the payment of the taxes or PILOT on prop-
 erty owned by such person.
   (b) Except in cities of one million or more, any person who  has  been
 granted  exemption  pursuant  to  this  section  on five (5) consecutive
 completed assessment rolls, including any years when the  exemption  was
 granted  to a property owned by [a husband and/or wife] A MARRIED PERSON
 OR A MARRIED COUPLE while both SPOUSES resided in such  property,  shall
 not  be  subject  to the requirements set forth in paragraph (a) of this
 subdivision provided the governing board of the  municipality  in  which
 said property is situated after public hearing adopts a local law, ordi-
 nance  or  resolution  providing  therefor  however said person shall be
 mailed an application form and a notice [informing him of  his]  SETTING
 FORTH SUCH PERSON'S rights. Such exemption shall be automatically grant-
 ed  on each subsequent assessment roll. Provided, however, that when tax
 payment is made by such person a sworn affidavit must be  included  with
 such payment which shall state that such person continues to be eligible
 for  such exemption. Such affidavit shall be on a form prescribed by the
 commissioner. If such affidavit is not included with  the  tax  payment,
 the  collecting  officer  shall proceed pursuant to section five hundred
 fifty-one-a of this chapter.
   (c) In cities of one million or more, any person who has been  granted
 exemption  pursuant to this section shall file the completed application
 with the appropriate assessing authority every twenty-four  months  from
 the date such exemption was granted without the necessity of having been
 granted  exemption  pursuant  to  this  section  on five (5) consecutive
 completed assessment rolls including any years when  the  exemption  was
 S. 4009--A                         33                         A. 3009--A
 
 granted  to a property owned by [a husband and/or wife] A MARRIED PERSON
 OR A MARRIED COUPLE while both SPOUSES resided in such property.
   §  6.  Subdivision 8-a of section 467 of the real property tax law, as
 amended by section 1 of part B of chapter 686 of the laws  of  2022,  is
 amended to read as follows:
   8-a.  Notwithstanding  any provision of law to the contrary, the local
 governing body of a municipal corporation that is authorized to adopt  a
 local  law  pursuant  to  subdivision  eight  of this section is further
 authorized to adopt a local law providing that where a renewal  applica-
 tion  for the exemption authorized by 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 renewal application by that
 date, the owner may, no later than the last  day  for  paying  taxes  or
 PILOT without incurring interest or penalty, submit a written request to
 the assessor asking [him or her] THE ASSESSOR to extend the filing dead-
 line  and grant the exemption. Such request shall contain an explanation
 of why the deadline was missed, and shall be accompanied  by  a  renewal
 application,  reflecting  the facts and circumstances as they existed on
 the taxable status date. The assessor may extend the filing deadline and
 grant the exemption if [he or she] THE ASSESSOR is  satisfied  that  (i)
 good  cause  existed  for the failure to file the renewal application by
 the taxable status date, and that (ii) the applicant is otherwise  enti-
 tled  to the exemption. The assessor shall MAKE A DETERMINATION AND mail
 notice [of his or her determination] THEREOF to the owner. If the deter-
 mination states that the assessor has granted the exemption, [he or she]
 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 appro-
 priate corrections. If the correction  is  not  made  before  taxes  are
 levied,  the  failure to take the exemption into account in the computa-
 tion of the tax shall be deemed a "clerical error" for purposes of title
 three of article five of this chapter, and shall be corrected according-
 ly.
   § 7. This act shall take effect immediately and  shall  apply  to  all
 applications for exemptions pursuant to section 467 of the real property
 tax  law  on  assessment  rolls  that  are based on taxable status dates
 occurring on and after October 1, 2023.
 
                                  PART L
 
   Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
 real  property  tax  law  relating to oil and gas charges, as amended by
 section 1 of part C of chapter 59 of the laws of  2020,  is  amended  to
 read as follows:
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 1992; provided,
 however that any charges imposed by section 593 of the real property tax
 law as added by section one of this act shall first be  due  for  values
 for assessment rolls with tentative completion dates after July 1, 1992,
 and  provided  further,  that  this  act  shall remain in full force and
 effect until March 31, [2024] 2027, at which time  section  593  of  the
 real  property  tax  law  as  added  by section one of this act shall be
 repealed.
   § 2. This act shall take effect immediately.
 
                                  PART M
 S. 4009--A                         34                         A. 3009--A
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 989 to read as follows:
   §  989.  DISTRIBUTION  OF  SURPLUS IN TAX ENFORCEMENT PROCEEDINGS.  1.
 NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL  LAW  TO
 THE  CONTRARY,  WHEN  A  PROPERTY  OWNER IS DIVESTED OF TITLE DUE TO THE
 FORECLOSURE OF A DELINQUENT REAL PROPERTY TAX LIEN ON THE PROPERTY,  AND
 THE  PROPERTY  IS SOLD TO A THIRD PARTY, THE PROCEEDS OF SUCH SALE SHALL
 BE DISTRIBUTED AS FOLLOWS:
   (A) IF THE PROCEEDS OF THE SALE ARE LESS THAN OR EQUAL  TO  THE  TOTAL
 TAXES  DUE  ON  THE  PROPERTY PLUS INTEREST, PENALTIES AND OTHER CHARGES
 DULY IMPOSED UPON THE PROPERTY, INCLUDING THE ADMINISTRATIVE COSTS ASSO-
 CIATED WITH THE FORECLOSURE PROCESS, THE ENTIRE PROCEEDS SHALL  BE  PAID
 TO THE LOCAL GOVERNMENT.
   (B)  IF  THE  PROCEEDS  OF  THE SALE EXCEED THE TOTAL TAXES DUE ON THE
 PROPERTY PLUS INTEREST, PENALTIES AND OTHER CHARGES  DULY  IMPOSED  UPON
 THE  PROPERTY,  INCLUDING  THE  ADMINISTRATIVE COSTS ASSOCIATED WITH THE
 FORECLOSURE PROCESS, THE EXCESS SHALL BE DISTRIBUTED AS FOLLOWS:
   (I) IF THE PROPERTY IS NOT SUBJECT TO OTHER LIENS, THE EXCESS PROCEEDS
 SHALL BE PAID TO THE PRIOR OWNER OR OWNERS OF THE PROPERTY.
   (II) IF THE PROPERTY IS SUBJECT TO OTHER LIENS, THE LIENHOLDERS  SHALL
 BE  PAID  FROM  THE  EXCESS  PROCEEDS  IN THE SAME ORDER AND TO THE SAME
 EXTENT AS THEY WOULD BE IN AN ACTION TO FORECLOSE A MORTGAGE PURSUANT TO
 ARTICLE THIRTEEN OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS  LAW.  ANY
 PROCEEDS  REMAINING  AFTER THE OTHER LIENHOLDERS HAVE BEEN SO PAID SHALL
 BE PAID TO THE PRIOR OWNER OR OWNERS OF THE PROPERTY.
   2. THE PROVISIONS OF THIS SECTION SHALL APPLY WHETHER PROPERTY IS SOLD
 THROUGH A PUBLIC AUCTION OR OTHERWISE.
   3. WHEN A FORECLOSURE CONCLUDES WITH THE TAX DISTRICT TAKING TITLE  TO
 PROPERTY,  THE  PROVISIONS  OF  THIS  SECTION SHALL NOT APPLY UNLESS AND
 UNTIL THE TAX DISTRICT SELLS THE PROPERTY TO  A  THIRD  PARTY;  PROVIDED
 THAT  IN  SUCH  A  CASE,  IF THERE ARE EXCESS PROCEEDS TO BE PAID TO THE
 PRIOR OWNER OR OWNERS OF THE PROPERTY, SUCH PROCEEDS SHALL  BE  PAID  TO
 THE  OWNER OR OWNERS OF THE PROPERTY PRIOR TO ITS ACQUISITION BY THE TAX
 DISTRICT.
   4. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO  THE  ENFORCEMENT
 OF  TAX  LIENS ON ABANDONED REAL PROPERTY. FOR PURPOSES OF THIS SECTION,
 REAL PROPERTY SHALL BE DEEMED ABANDONED IF IT:
   (A) HAS BEEN INCLUDED ON A LOCAL MUNICIPAL ROLL, REGISTRY OR  LIST  OF
 VACANT  AND  ABANDONED  RESIDENTIAL  PROPERTY PURSUANT TO SECTION ELEVEN
 HUNDRED ELEVEN-A OF THIS CHAPTER, OR
   (B) HAS BEEN CERTIFIED AS  ABANDONED  COMMERCIAL  OR  INDUSTRIAL  REAL
 PROPERTY PURSUANT TO ARTICLE NINETEEN-A OF THE REAL PROPERTY ACTIONS AND
 PROCEEDINGS LAW, OR
   (C)  HAS  BEEN  INCLUDED ON THE STATEWIDE REGISTRY OF VACANT AND ABAN-
 DONED PROPERTY PURSUANT TO SECTION THIRTEEN  HUNDRED  TEN  OF  THE  REAL
 PROPERTY ACTIONS AND PROCEEDINGS LAW.
   5.  THIS  SECTION SHALL BE CONSTRUED TO SUPERSEDE ALL GENERAL, SPECIAL
 AND LOCAL LAWS RELATING TO TAX ENFORCEMENT TO THE EXTENT THAT SUCH  LAWS
 WOULD  OTHERWISE  ALLOW  THE  PROCEEDS  OF A SALE TO BE DISTRIBUTED IN A
 MANNER OTHER THAN AS SET FORTH IN THIS  SECTION.  THIS  SECTION  IS  NOT
 INTENDED TO SUPERSEDE SUCH LAWS IN OTHER RESPECTS.
   §  2.  Subdivision  2 of section 1104 of the real property tax law, as
 amended by chapter 532 of the laws of 1994, paragraph (iii)  as  further
 amended  by  subdivision (b) of section 1 of part W of chapter 56 of the
 laws of 2010, is amended to read as follows:
 S. 4009--A                         35                         A. 3009--A
 
   2. The provisions of this article shall not be applicable to a county,
 city or town which: (i) on January first, nineteen hundred ninety-three,
 was authorized to enforce the collection of delinquent taxes pursuant to
 a county charter, city charter, administrative code or special law; (ii)
 adopted  a local law, no later than July first, nineteen hundred ninety-
 four, providing that the collection of taxes in  such  county,  city  or
 town  shall  continue  to  be enforced pursuant to such charter, code or
 special law, as such charter, code or special law may from time to  time
 be  amended;  and  (iii) filed a copy of such local law with the commis-
 sioner  no  later  than  August  first,  nineteen  hundred  ninety-four.
 PROVIDED,  HOWEVER,  THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO
 EXEMPT ANY SUCH COUNTY, CITY OR TOWN FROM THE PROVISIONS OF SECTION NINE
 HUNDRED EIGHTY-NINE OF THIS CHAPTER.
   § 3. Subdivision 1 of section 1166 of the real property  tax  law,  as
 amended  by  chapter  500  of  the  laws  of 2015, is amended to read as
 follows:
   1. Whenever any tax district shall become vested  with  the  title  to
 real  property by virtue of a foreclosure proceeding brought pursuant to
 the provisions of this article, such tax district is  hereby  authorized
 to  sell  and  convey the real property so acquired, which shall include
 any and all gas, oil or mineral rights associated with such real proper-
 ty, either with or without advertising  for  bids,  notwithstanding  the
 provisions  of any general, special or local law.  THE PROCEEDS OBTAINED
 FROM ANY SUCH SALE SHALL  BE  DISTRIBUTED  IN  THE  MANNER  PROVIDED  BY
 SECTION NINE HUNDRED EIGHTY-NINE OF THIS CHAPTER.
   §  4.  This  act shall take effect October 1, 2023, and shall apply to
 all tax foreclosure proceedings commenced on and after such date.
 
                                  PART N
 
   Section 1. Section 575-b of the real property tax law  is  amended  by
 adding a new subdivision 1-a to read as follows:
   1-A.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE SOLAR
 OR WIND ENERGY SYSTEM APPRAISAL MODEL AUTHORIZED BY THIS  SECTION  SHALL
 BE  IDENTIFIED, FORMULATED, ADOPTED, PUBLISHED, AND UPDATED PERIODICALLY
 IN THE MANNER PROVIDED IN THIS SECTION WITHOUT REGARD TO THE  PROVISIONS
 OF ARTICLE TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
   §  2. Subparagraph (viii) of paragraph (b) of subdivision 2 of section
 102 of the state administrative procedure act, as amended by chapter  74
 of the laws of 1987, is amended to read as follows:
   (viii)  APPRAISAL  MODELS,  DISCOUNT  RATES, state equalization rates,
 class ratios, special equalization rates and special equalization ratios
 established pursuant to the real property tax law;
   § 3.  No assessing unit that failed to use the appraisal model  pursu-
 ant  to section 575-b of the real property tax law in 2022 shall be held
 liable for failing to use such model in 2022. Within fifteen  days  from
 the effective date of this act, the commissioner of taxation and finance
 may  readopt  the  2022 appraisal model or models and discount rates for
 use in 2023, without additional consultation with  the  New  York  state
 energy  research  and development authority or the New York state asses-
 sors association,  and  without  soliciting  or  considering  additional
 public comments.
   §  4.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after the  effective  date  of
 part X of chapter 59 of the laws of 2021.
 S. 4009--A                         36                         A. 3009--A
 
                                  PART O
 
   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;
   (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; (IV) THE ONE  AND  THREE-QUARTERS  PERCENT  ADDI-
 TIONAL  RATE TO BE IMPOSED BY THE COUNTY OF ERIE SHALL BE SUBJECT TO THE
 LIMITATIONS SET FORTH IN SECTION  TWELVE  HUNDRED  SIXTY-TWO-Q  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.
 S. 4009--A                         37                         A. 3009--A
 
   § 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.  Subdivision (a) of section 1223 of the tax law,  as  amended  by
 chapter 44 of the laws of 2019, is amended to read as follows:
   (a)  No  transaction taxable under sections twelve hundred two through
 twelve hundred four of this article shall  be  taxed  pursuant  to  this
 article  by any county or by any city located therein, or by both, at an
 aggregate rate in excess of the highest rate set forth in the applicable
 subdivision of section twelve hundred one of this  article  or,  in  the
 case  of  any  taxes imposed pursuant to the authority of section twelve
 hundred ten or twelve hundred eleven of this article (other  than  taxes
 imposed  by the county of Nassau, Erie, [Steuben, Cattaraugus, Suffolk,]
 Oneida, [Genesee, Greene, Franklin, Hamilton,] Herkimer,  [Tioga,  Orle-
 ans,]  AND  Allegany[,  Ulster,  Albany,  Rensselaer, Tompkins, Wyoming,
 Columbia, Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca,  Sulli-
 van,  Wayne,  Livingston,  Schenectady,  Montgomery,  Delaware, Clinton,
 Niagara, Yates, Lewis, Essex, Dutchess, Schoharie,  Putnam,  Chautauqua,
 Orange, Oswego, Ontario, Jefferson, St. Lawrence, Westchester or Ononda-
 ga  and  by  the  county of Cortland and the city of Cortland and by the
 county of Broome and the city of Binghamton and by the county of  Cayuga
 and  the  city  of  Auburn  and  by the county of Otsego and the city of
 Oneonta and by the county of Madison and the city of Oneida and  by  the
 county  of Fulton and the city of Gloversville or the city of Johnstown]
 as provided in section twelve hundred ten of this article) at a rate  in
 excess of [three] FOUR percent, except that, in the city of Yonkers[, in
 the  city  of  Mount Vernon, in the city of New Rochelle, in the city of
 Fulton, in the city of Oswego, and in the city  of  White  Plains,]  the
 rate  may not be in excess of four AND ONE-HALF percent, and except that
 in the city of Poughkeepsie in the county of Dutchess,  if  such  county
 withdraws  from the metropolitan commuter transportation district pursu-
 ant to section twelve hundred seventy-nine-b of the  public  authorities
 S. 4009--A                         38                         A. 3009--A
 
 law  and  if  the revenues from a three-eighths percent rate of such tax
 imposed by such county, pursuant to  the  authority  of  section  twelve
 hundred  ten  of this article, are required by local laws, ordinances or
 resolutions  to  be set aside for mass transportation purposes, the rate
 may not be in excess of [three] FOUR and three-eighths percent.
   § 7. 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.
   § 8. 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;
 S. 4009--A                         39                         A. 3009--A
 
 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
 SECTION  TWELVE  HUNDRED  TWENTY-THREE  OF THIS SUBPART AND TO THE OTHER
 REQUIREMENTS OF THIS ARTICLE.
   § 9. Subdivision (b) of section 1262-b of the tax law is REPEALED.
   § 10. Section 1262-e of the tax law, as amended by section 2  of  item
 BB  of  subpart  C  of  part  XXX  of chapter 58 of the laws of 2020, is
 amended to read as follows:
   § 1262-e. Establishment of local  government  assistance  programs  in
 Nassau  county. 1. Towns and cities. Notwithstanding any other provision
 of law to the contrary, for  the  calendar  year  beginning  on  January
 first, nineteen hundred ninety-eight and continuing through the calendar
 year  beginning  on  January  first, two thousand twenty-three, AND EACH
 CALENDAR YEAR THEREAFTER BEGINNING  ON  JANUARY  FIRST,  the  county  of
 Nassau  shall  enact and establish a local government assistance program
 for the towns and cities within such county to  assist  such  towns  and
 cities  to  minimize real property taxes; defray the cost and expense of
 the treatment, collection, management, disposal, and  transportation  of
 municipal  solid waste, and to comply with the provisions of chapter two
 hundred ninety-nine of the laws of nineteen  hundred  eighty-three;  and
 defray  the  cost  of maintaining conservation and environmental control
 programs. Such special assistance program for the towns and cities with-
 in such county and the funding for such program shall equal one-third of
 the revenues received by such county from the imposition of  the  three-
 quarters  percent  sales  and use tax during calendar years two thousand
 one, two thousand two, two thousand three, two thousand four, two  thou-
 sand five, two thousand six, two thousand seven, two thousand eight, two
 thousand  nine,  two  thousand  ten,  two  thousand eleven, two thousand
 twelve, two thousand  thirteen,  two  thousand  fourteen,  two  thousand
 fifteen,  two  thousand  sixteen,  two  thousand seventeen, two thousand
 eighteen, two thousand nineteen, two thousand twenty, two thousand twen-
 ty-one, two thousand twenty-two [and],  two  thousand  twenty-three  AND
 EACH  CALENDAR  YEAR  THEREAFTER additional to the regular three percent
 rate authorized for such county in section twelve hundred  ten  of  this
 article.  The monies for such special local assistance shall be paid and
 distributed to the towns and cities on a  per  capita  basis  using  the
 population  figures  in  the  latest  decennial federal census. Provided
 further, that notwithstanding any other law to the contrary, the  estab-
 lishment  of  such special assistance program shall preclude any city or
 town within such county from preempting  or  claiming  under  any  other
 section  of  this  chapter  the revenues derived from the additional tax
 authorized by section twelve  hundred  ten  of  this  article.  Provided
 further,  that  any  such  town  or towns may, by resolution of the town
 board, apportion all or a  part  of  monies  received  in  such  special
 assistance  program  to  an  improvement  district  or  special district
 account within such town or towns in order to accomplish the purposes of
 this special assistance program.
   2. Villages. Notwithstanding any other provision of law to the contra-
 ry, for the calendar year beginning on January first,  nineteen  hundred
 ninety-eight and continuing through the calendar year beginning on Janu-
 S. 4009--A                         40                         A. 3009--A
 
 ary first, two thousand twenty-three, AND EACH CALENDAR YEAR THEREAFTER,
 the  county  of  Nassau,  by local law, is hereby empowered to enact and
 establish a local government assistance program for the villages  within
 such  county  to  assist  such villages to minimize real property taxes;
 defray the cost and expense of the  treatment,  collection,  management,
 disposal,  and  transportation  of municipal solid waste; and defray the
 cost of maintaining conservation and environmental control programs. The
 funding of such local assistance program for the  villages  within  such
 county  may  be  provided  by  Nassau county during any calendar year in
 which such village local assistance program is in effect and  shall  not
 exceed  one-sixth  of  the  revenues received from the imposition of the
 three-quarters percent sales and use tax that are  remaining  after  the
 towns  and cities have received their funding pursuant to the provisions
 of subdivision one of this section.  The funding for such village  local
 assistance  program  shall  be paid and distributed to the villages on a
 per capita basis using the population figures in  the  latest  decennial
 federal census. Provided further, that the establishment of such village
 local  assistance  program shall preclude any village within such county
 from preempting or claiming under any other section of this chapter  the
 revenues  derived  from  the additional tax authorized by section twelve
 hundred ten of this article.
   § 11. 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
 S. 4009--A                         41                         A. 3009--A

 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
 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.
   § 12. Section 1262-h of the tax law, as amended by chapter 315 of  the
 laws of 2020, is amended to read as follows:
   §  1262-h.  Allocation  and  distribution  of net collections from the
 additional one percent rate of sales and compensating use taxes in Steu-
 ben county. Notwithstanding any provision of law to the contrary, of the
 net collections received by the county of Steuben as  a  result  of  the
 imposition  of  the  additional  one  percent  rate of tax authorized by
 section twelve hundred ten of this article [(a) during the period begin-
 ning December first, nineteen hundred ninety-three and  ending  November
 thirtieth, nineteen hundred ninety-four, the county of Steuben shall pay
 or  cause to be paid to the city of Hornell the sum of two hundred thou-
 sand dollars, to the city of Corning the sum of three  hundred  thousand
 dollars,  and  the sum of five hundred thousand dollars to the towns and
 villages of the county of Steuben, on the basis of the ratio  which  the
 full  valuation  of  real  property in each town or village bears to the
 aggregate full valuation of real  property  in  all  of  the  towns  and
 villages  in such area. Of the net collections received by the county of
 Steuben as a result of the imposition of  said  additional  one  percent
 rate  of  tax  authorized  by section twelve hundred ten of this article
 during the period beginning December first, nineteen hundred ninety-four
 and ending November thirtieth, nineteen hundred ninety-five, the  county
 of  Steuben shall pay or cause to be paid to the city of Hornell the sum
 of three hundred thousand dollars, to the city of  Corning  the  sum  of
 four  hundred fifty thousand dollars, and the sum of seven hundred fifty
 thousand dollars to the towns and villages of the county of Steuben,  on
 the basis of the ratio which the full valuation of real property in each
 S. 4009--A                         42                         A. 3009--A

 town  or  village bears to the aggregate full valuation of real property
 in all of the towns and villages in such area; and (b) during the period
 beginning December first, nineteen hundred ninety-five and ending Novem-
 ber  thirtieth, two thousand seven, the county of Steuben shall annually
 pay or cause to be paid to the city of Hornell the sum of  five  hundred
 fifty  thousand  dollars,  to the city of Corning the sum of six hundred
 thousand dollars, and the sum of seven hundred fifty thousand dollars to
 the towns and villages of the county of Steuben, on  the  basis  of  the
 ratio  which the full valuation of real property in each town or village
 bears to the aggregate full valuation of real property  in  all  of  the
 towns  and villages in such area; and during the period beginning Decem-
 ber first, two thousand seven and ending November thirtieth,  two  thou-
 sand  nine, the county of Steuben shall annually pay or cause to be paid
 to the city of Hornell the sum of six hundred ten thousand  dollars,  to
 the  city  of Corning the sum of six hundred fifty thousand dollars, and
 the sum of seven  hundred  fifty  thousand  dollars  to  the  towns  and
 villages  of  the county of Steuben, on the basis of the ratio which the
 full valuation of real property in each town or  village  bears  to  the
 aggregate  full  valuation  of  real  property  in  all of the towns and
 villages in such area; and during the period beginning  December  first,
 two  thousand  nine  and ending November thirtieth, two thousand eleven,
 the county of Steuben shall annually pay or cause to be paid to the city
 of Hornell the sum of seven hundred ten thousand dollars, to the city of
 Corning the sum of seven hundred ten thousand dollars, and  the  sum  of
 seven  hundred  fifty  thousand dollars to the towns and villages of the
 county of Steuben, on the basis of the ratio which the full valuation of
 real property in each town or village bears to the aggregate full  valu-
 ation  of  real  property in all of the towns and villages in such area;
 and during the period beginning December first, two thousand eleven  and
 ending  November thirtieth, two thousand thirteen, the county of Steuben
 shall annually pay or cause to be paid to the city of Hornell the sum of
 seven hundred forty thousand dollars, to the city of Corning the sum  of
 seven hundred forty thousand dollars, and the sum of seven hundred fifty
 thousand  dollars to the towns and villages of the county of Steuben, on
 the basis of the ratio which the full valuation of real property in each
 town or village bears to the aggregate full valuation of  real  property
 in  all  of  the  towns and villages in such area; and during the period
 beginning December first, two  thousand  thirteen  and  ending  November
 thirtieth,  two  thousand  fifteen, the county of Steuben shall annually
 pay or cause to be paid to the city of Hornell the sum of seven  hundred
 sixty-five  thousand  dollars,  to  the city of Corning the sum of seven
 hundred sixty-five thousand dollars, and the sum of seven hundred  fifty
 thousand  dollars to the towns and villages of the county of Steuben, on
 the basis of the ratio which the full valuation of real property in each
 town or village bears to the aggregate full valuation of  real  property
 in  all  of  the  towns and villages in such area; and during the period
 beginning December first, two thousand fifteen and ending November thir-
 tieth, two thousand seventeen, the county of Steuben shall annually  pay
 or  cause  to  be  paid  to the city of Hornell the sum of seven hundred
 sixty-five thousand dollars, to the city of Corning  the  sum  of  seven
 hundred  sixty-five thousand dollars, and the sum of seven hundred fifty
 thousand dollars to the towns and villages of the county of Steuben,  on
 the basis of the ratio which the full valuation of real property in each
 town  or  village bears to the aggregate full valuation of real property
 in all of the towns and villages in such area;  and  during  the  period
 beginning  December  first,  two  thousand seventeen and ending November
 S. 4009--A                         43                         A. 3009--A

 thirtieth, two thousand twenty, the county of Steuben shall annually pay
 or cause to be paid to the city of Hornell  the  sum  of  seven  hundred
 eighty thousand dollars, to the city of Corning the sum of seven hundred
 eighty  thousand  dollars,  and  the sum of seven hundred fifty thousand
 dollars to the towns and villages of the county of Steuben, on the basis
 of the ratio which the full valuation of real property in each  town  or
 village bears to the aggregate full valuation of real property in all of
 the  towns  and  villages  in  such area; and during the] FOR ANY period
 beginning ON OR AFTER December first, two thousand  twenty  [and  ending
 November  thirtieth,  two  thousand twenty-three], the county of Steuben
 shall annually pay or cause to be paid to the city of Hornell the sum of
 eight hundred twenty thousand dollars, to the city of Corning the sum of
 eight hundred twenty thousand dollars, and  the  sum  of  seven  hundred
 ninety thousand dollars to the towns and villages of the county of Steu-
 ben, on the basis of the ratio which the full valuation of real property
 in  each  town  or village bears to the aggregate full valuation of real
 property in all of the towns and villages in such area.
   § 13. Subdivision (c) of section 1262-j of the tax law, as amended  by
 section  2 of item TT of subpart C of part XXX of chapter 58 of the laws
 of 2020, is amended to read as follows:
   (c) Notwithstanding any provision of law to the contrary, of  the  net
 collections  received  by  the  county  of  Suffolk  as  a result of the
 increase of one percent to the tax authorized by section twelve  hundred
 ten  of this article for [the] ANY period beginning OR AFTER June first,
 two thousand one [and ending November thirtieth,  two  thousand  twenty-
 three], imposed by local laws or resolutions (by simple majority) by the
 county  legislature,  and  signed by the county executive, the county of
 Suffolk shall allocate such net collections as  follows:  no  less  than
 one-eighth  and  no  more  than  three-eighths  of  such net collections
 received shall be dedicated for public safety purposes and  the  balance
 shall be deposited in the general fund of the county of Suffolk.
   §  14.  Section 1262-l of the tax law, as amended by section 2 of item
 MM of subpart C of part XXX of chapter  58  of  the  laws  of  2020,  is
 amended to read as follows:
   §  1262-1.  Allocation  and  distribution  of net collections from the
 additional rate of sales and compensating use tax in Rockland county. 1.
 Notwithstanding any provision of law to the contrary, if the  county  of
 Rockland  imposes the additional five-eighths of one percent rate of tax
 authorized by section twelve hundred ten of this  article  [during  the]
 FOR  EACH  period  beginning  ON OR AFTER March first, two thousand two,
 [and ending November thirtieth, two thousand twenty-three,] such  county
 shall allocate and distribute twenty percent of the net collections from
 such  additional rate to the towns and villages in the county in accord-
 ance with subdivision (c) of section twelve hundred  sixty-two  of  this
 part on the basis of the ratio which the population of each such town or
 village bears to such county's total population; and
   2. Notwithstanding any provision of law to the contrary, if the county
 of  Rockland imposes the additional three-eighths of one percent rate of
 tax authorized by section twelve hundred ten  of  this  article  [during
 the]  FOR  ANY  period  beginning  ON OR AFTER March first, two thousand
 seven, [and ending November thirtieth, two thousand twenty-three,]  such
 county  shall  allocate  and distribute [sixteen and two-thirds] THIRTY-
 THREE AND ONE-THIRD percent of the net collections from such  additional
 rate  to  the  general  funds of towns and villages within the county of
 Rockland with existing town and village police departments  from  [March
 first,  two  thousand  seven through December thirty-first, two thousand
 S. 4009--A                         44                         A. 3009--A

 seven and thirty-three and one-third percent of the net collections from
 such additional rate from] January first, two  thousand  eight  [through
 November  thirtieth,  two  thousand  twenty-three]  AND  THEREAFTER. The
 monies  allocated  and distributed pursuant to this subdivision shall be
 allocated and distributed to towns and villages with police  departments
 on  the  basis  of  the  number  of full-time equivalent police officers
 employed by each police department and shall not be  used  for  salaries
 heretofore or hereafter negotiated.
   §  15.  Section 1262-n of the tax law, as amended by section 2 of item
 CC of subpart C of part XXX of chapter  58  of  the  laws  of  2020,  is
 amended to read as follows:
   §  1262-n.  Disposition  of  net  collections  from the additional one
 percent rate of sales and  compensating  use  taxes  in  the  county  of
 Niagara.    Notwithstanding any contrary provision of law, if the county
 of Niagara imposes the additional one percent rate of sales and  compen-
 sating  use taxes authorized by section twelve hundred ten of this arti-
 cle for all or any portion of [the] EACH period beginning  ON  OR  AFTER
 March  first,  two  thousand  three  [and ending November thirtieth, two
 thousand twenty-three,] the county shall use all  net  collections  from
 such  additional one percent rate to pay the county's expenses for Medi-
 caid. The net collections from the additional one percent  rate  imposed
 pursuant  to  this  section  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 one percent tax, after the Medicaid expenses are paid,  shall
 be deposited by the county of Niagara in the general fund of such county
 for any county purpose.
   § 16. Section 1262-o of the tax law, as amended by section 2 of item F
 of  subpart  C of part XXX of chapter 58 of the laws of 2020, is amended
 to read as follows:
   § 1262-o. Disposition of net collections from the additional  rate  of
 sales and compensating use taxes in the county of Chautauqua.  [Notwith-
 standing  any  contrary  provision  of  law, if the county of Chautauqua
 imposes the additional one and one-quarter percent  rate  of  sales  and
 compensating  use taxes authorized by section twelve hundred ten of this
 article for all or any portion of the period beginning March first,  two
 thousand  five  and  ending  August  thirty-first, two thousand six, the
 additional one percent rate authorized by such section for all or any of
 the period beginning September first, two thousand six and ending Novem-
 ber thirtieth, two thousand seven, the additional three-quarters of  one
 percent  rate  authorized  by  such section for all or any of the period
 beginning December first, two thousand seven and ending November thirti-
 eth, two thousand ten, the county shall allocate one-fifth  of  the  net
 collections  from  the  additional  three-quarters of one percent to the
 cities, towns and villages in the county on the basis of  their  respec-
 tive  populations,  determined  in  accordance with the latest decennial
 federal census or special population 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, and allocate the
 remainder of the net collections from the additional  three-quarters  of
 one  percent  as  follows: (1) to pay the county's expenses for Medicaid
 and other expenses required by law; (2) to pay for local road and bridge
 projects; (3) for the purposes of  capital  projects  and  repaying  any
 debts  incurred  for  such  capital projects in the county of Chautauqua
 that are not otherwise paid for by revenue received  from  the  mortgage
 recording  tax;  and  (4)  for  deposit  into  a reserve fund for bonded
 S. 4009--A                         45                         A. 3009--A

 indebtedness established pursuant to the general municipal law. Notwith-
 standing any contrary provision of law,  if  the  county  of  Chautauqua
 imposes  the  additional one-half percent rate of sales and compensating
 use  taxes  authorized by such section twelve hundred ten for all or any
 of the period beginning December first,  two  thousand  ten  and  ending
 November  thirtieth,  two  thousand  fifteen,  the county shall allocate
 three-tenths of the net collections from the additional one-half of  one
 percent  to the cities, towns and villages in the county on the basis of
 their respective populations, determined in accordance with  the  latest
 decennial  federal census or special population 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, and
 allocate the remainder of the net collections from the  additional  one-
 half  of  one  percent  as follows: (1) to pay the county's expenses for
 Medicaid and other expenses required by law; (2) to pay for  local  road
 and bridge projects; (3) for the purposes of capital projects and repay-
 ing  any debts incurred for such capital projects in the county of Chau-
 tauqua that are not otherwise paid for  by  revenue  received  from  the
 mortgage  recording  tax;  and  (4)  for deposit into a reserve fund for
 bonded indebtedness established pursuant to the general municipal  law.]
 Notwithstanding any contrary provision of law, if the county of Chautau-
 qua  imposes  the  additional one percent rate of sales and compensating
 use taxes authorized by such section twelve hundred ten for all  or  any
 of  [the]  ANY period beginning ON OR AFTER December first, two thousand
 fifteen and [ending November thirtieth, two thousand twenty-three,]  the
 county  shall  allocate three-twentieths of the net collections from the
 additional one percent to the cities, towns and villages in  the  county
 on  the  basis of their respective populations, determined in accordance
 with the latest decennial federal census or  special  population  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,  and  allocate  the  remainder of the net collections from the
 additional one percent as follows: (1) to pay the county's expenses  for
 Medicaid  and  other expenses required by law; (2) to pay for local road
 and bridge projects; (3) for the purposes of capital projects and repay-
 ing any debts incurred for such capital projects in the county of  Chau-
 tauqua  that  are  not  otherwise  paid for by revenue received from the
 mortgage recording tax; and (4) for deposit  into  a  reserve  fund  for
 bonded  indebtedness  established pursuant to the general municipal law.
 The net collections from the additional rates imposed pursuant  to  this
 section shall be deposited in a special fund to be created by such coun-
 ty separate and apart from any other funds and accounts of the county to
 be used for purposes above described.
   § 17. Section 1262-p of the tax law, as amended by section 2 of item X
 of  subpart  C of part XXX of chapter 58 of the laws of 2020, is amended
 to read as follows:
   § 1262-p. Disposition of  net  collections  from  the  additional  one
 percent  rate  of  sales  and  compensating  use  taxes in the county of
 Livingston.  Notwithstanding any contrary provision of law, if the coun-
 ty of Livingston imposes the additional one percent rate  of  sales  and
 compensating  use taxes authorized by section twelve hundred ten of this
 article for all or any portion of [the] ANY period beginning ON OR AFTER
 June first, two thousand three [and ending November thirtieth, two thou-
 sand twenty-three], the county shall use all net collections  from  such
 additional  one  percent rate to pay the county's expenses for Medicaid.
 The net collections from the additional one percent rate imposed  pursu-
 S. 4009--A                         46                         A. 3009--A

 ant  to  this section 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
 one percent tax, after the Medicaid expenses are paid, shall be deposit-
 ed  by  the  county of Livingston in the general fund of such county for
 any county purpose.
   § 18. Subdivision 1 of section 1262-q of the tax law,  as  amended  by
 chapter 243 of the laws of 2011, is amended to read as follows:
   (1)  If  the county of Erie imposes the additional one percent rate of
 sales and compensating use taxes authorized by [item (i) of  clause  (4)
 of  subparagraph (i) of the opening paragraph of] section twelve hundred
 ten of this article [during the] FOR ANY period beginning January first,
 two thousand seven, or thereafter, the county shall allocate each calen-
 dar year the first twelve million five hundred thousand dollars  of  the
 net  collections from such one percent rate to the cities of such county
 and the area in such county outside its cities to be applied or distrib-
 uted in the same manner and proportion as the net collections  for  such
 cities  and  area  are applied or distributed under the revenue distrib-
 ution agreement entered into pursuant to the  authority  of  subdivision
 (c)  of section twelve hundred sixty-two of this part in effect on Janu-
 ary first, two thousand six, and  subject  to  all  provisions  of  such
 agreement  governing  the  net  collections for such cities and area and
 shall retain the remainder  of  such  net  collections  for  any  county
 purpose.
   §  19.  Subdivision  2 of section 1262-q of the tax law, as amended by
 section 2 of item N of subpart C of part XXX of chapter 58 of  the  laws
 of 2020, is amended to read as follows:
   (2)  Net collections from the additional three-quarters of one percent
 rate of sales and compensating use taxes which  the  county  may  impose
 [during the period] commencing December first, two thousand eleven, [and
 ending  November  thirtieth, two thousand twenty-three,] pursuant to the
 authority of [item (ii) of clause (4) of subparagraph (i) of the opening
 paragraph of] section twelve hundred ten of this article shall  be  used
 by the county solely for county purposes and shall not be subject to any
 revenue  distribution  agreement the county entered into pursuant to the
 authority of subdivision (c) of section twelve hundred sixty-two of this
 part.
   § 20. 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 SUCH ADDITIONAL
 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
 S. 4009--A                         47                         A. 3009--A
 
 hundred sixty-two of this part to be effective March first, two thousand
 six, such agreement may provide that:
   § 21. 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
 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.
   §  22.  Section  1262-t  of the tax law, as added by chapter 67 of the
 laws of 2015, is amended to read as follows:
   § 1262-t. City of Yonkers - disposition of net  collections  from  the
 additional  one-half  of  one percent rate of sales and compensating use
 taxes in the city of Yonkers. Notwithstanding any provision  of  law  to
 the  contrary, if the city of Yonkers imposes the additional one-half of
 one percent rate of sales and compensating use taxes authorized by [item
 (b) of clause one of] subparagraph (ii)  of  the  opening  paragraph  of
 section  twelve  hundred ten of this article, the city shall use the net
 collections from such additional one-half of one percent rate solely for
 the support of education, unless the city council votes,  on  an  annual
 basis,  to use such net collections for a different purpose of the city,
 provided, however, that the requirements of paragraph b  of  subdivision
 five-b of section two thousand five hundred seventy-six of the education
 law are met.
   § 23. The tax law is amended by adding a new section 1262-w to read as
 follows:
   §  1262-W.  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.
 S. 4009--A                         48                         A. 3009--A
 
   § 24. The tax law is amended by adding a new section 1262-x to read as
 follows:
   §  1262-X.  ALLOCATION  AND  DISTRIBUTION  OF NET COLLECTIONS FROM THE
 ADDITIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES IN WEST-
 CHESTER COUNTY.  NOTWITHSTANDING ANY PROVISION OF LAW TO  THE  CONTRARY,
 IF  THE COUNTY OF WESTCHESTER IMPOSES THE ADDITIONAL ONE PERCENT RATE OF
 SALES AND COMPENSATING USE TAX AUTHORIZED BY SECTION TWELVE HUNDRED  TEN
 OF  THIS  ARTICLE,  THE  COUNTY  SHALL  ALLOCATE  AND  CREDIT OR PAY NET
 COLLECTIONS FROM SUCH ADDITIONAL ONE PERCENT RATE WITH  RESPECT  TO  THE
 AREA  OF THE COUNTY OUTSIDE ANY CITY IMPOSING SALES AND COMPENSATING USE
 TAXES AT A RATE OF ONE AND ONE-HALF PERCENT OR GREATER PURSUANT  TO  THE
 AUTHORITY OF SUBDIVISION (A) OR AT ANY RATE PURSUANT TO THE AUTHORITY OF
 SUBDIVISION  (B)  OF  SECTION  TWELVE  HUNDRED  TEN  OF  THIS ARTICLE AS
 FOLLOWS:
   (1) SEVENTY PERCENT OF SUCH NET COLLECTIONS SHALL BE RETAINED  BY  THE
 COUNTY TO BE USED FOR ANY COUNTY PURPOSE.
   (2)  TEN  PERCENT  OF SUCH NET COLLECTIONS SHALL BE ALLOCATED AND PAID
 QUARTERLY BY THE COUNTY COMMISSIONER OF FINANCE, IN CASH, TO THE SEVERAL
 SCHOOL DISTRICTS IN SUCH AREA OF THE COUNTY OUTSIDE ANY SUCH CITY IMPOS-
 ING SALES AND COMPENSATING USE TAXES. SUCH ALLOCATION  AND  PAYMENT,  TO
 SUCH  SEVERAL  SCHOOL DISTRICTS, SHALL BE MADE ON THE BASIS OF THE RATIO
 WHICH THE POPULATION OF EACH SUCH SCHOOL DISTRICT BEARS TO THE AGGREGATE
 POPULATION OF ALL OF THE SCHOOL DISTRICTS IN SUCH AREA. IN THE  CASE  OF
 SCHOOL  DISTRICTS  WHICH  ARE PARTIALLY WITHIN AND PARTIALLY WITHOUT THE
 COUNTY, OR PARTIALLY WITHIN OR PARTIALLY WITHOUT THE AREA OF THE  COUNTY
 OUTSIDE A CITY IMPOSING SALES AND COMPENSATING USE TAXES, THE ALLOCATION
 AND  PAYMENT  TO EACH SUCH SCHOOL DISTRICT SHALL BE MADE ON THE BASIS OF
 THE POPULATION IN SUCH SCHOOL DISTRICT IN THE COUNTY, OR IN SUCH AREA OF
 THE COUNTY OUTSIDE A CITY IMPOSING SALES AND COMPENSATING USE TAXES,  AS
 THE CASE MAY BE. SUCH POPULATIONS SHALL BE DETERMINED IN ACCORDANCE WITH
 THE  LATEST  FEDERAL  CENSUS  OR SPECIAL POPULATION CENSUS UNDER SECTION
 TWENTY OF THE GENERAL MUNICIPAL LAW COMPLETED AND PUBLISHED PRIOR TO THE
 END OF THE QUARTER IN WHICH SUCH ALLOCATION AND PAYMENT ARE MADE,  WHICH
 SPECIAL  POPULATION  CENSUS SHALL INCLUDE THE ENTIRE AREA OF THE COUNTY;
 PROVIDED THAT SUCH SPECIAL POPULATION CENSUS SHALL  NOT  BE  TAKEN  MORE
 THAN  ONCE IN EVERY TWO YEARS. A SCHOOL DISTRICT SPLIT BETWEEN WESTCHES-
 TER COUNTY AND ANOTHER COUNTY SHALL APPLY SUCH  ALLOCATION  AND  PAYMENT
 SOLELY  TO THE BENEFIT OF THE RESIDENTS OF THE COUNTY IN WHICH THE SALES
 AND COMPENSATING USE TAXES ARE IMPOSED.
   (3) TWENTY PERCENT OF SUCH NET COLLECTIONS SHALL BE ALLOCATED AND PAID
 QUARTERLY BY THE COUNTY COMMISSIONER OF FINANCE, IN CASH, TO THE  CITIES
 NOT  IMPOSING  SALES  AND  COMPENSATING  USE  TAXES AND TO THE TOWNS AND
 VILLAGES ON WHICH SUCH RATE IS IMPOSED, ON THE BASIS OF THE RATIO  WHICH
 THE  POPULATION OF EACH SUCH CITY, TOWN OR VILLAGE ON WHICH SUCH RATE IS
 IMPOSED BEARS TO THE ENTIRE POPULATION OF ALL  SUCH  CITIES,  TOWNS  AND
 VILLAGES  IN  THE  AREA  ON WHICH SUCH RATE IS IMPOSED. SUCH POPULATIONS
 SHALL BE DETERMINED IN ACCORDANCE WITH  THE  LATEST  FEDERAL  CENSUS  OR
 SPECIAL  POPULATION CENSUS UNDER SECTION TWENTY OF THE GENERAL MUNICIPAL
 LAW COMPLETED AND PUBLISHED PRIOR TO THE END OF  THE  QUARTER  IN  WHICH
 SUCH  ALLOCATION  IS MADE, WHICH SPECIAL POPULATION CENSUS SHALL INCLUDE
 THE ENTIRE AREA OF THE COUNTY; PROVIDED  THAT  SUCH  SPECIAL  POPULATION
 CENSUS SHALL NOT BE TAKEN MORE THAN ONCE IN EVERY TWO YEARS.
   §  25.  Paragraph 2 of subdivision (c) of section 1261 of the tax law,
 as amended by chapter 67 of the laws of 2015,  is  amended  to  read  as
 follows:
 S. 4009--A                         49                         A. 3009--A
 
   (2) However, the taxes, penalties and interest from the additional one
 percent  rate which the city of Yonkers is authorized to impose pursuant
 to [item (a) of clause one of] subparagraph (ii) of  the  opening  para-
 graph  of  section  twelve  hundred ten of this article, after the comp-
 troller has reserved such refund fund and such cost shall be paid to the
 special  sales  and  compensating  use  tax fund for the city of Yonkers
 established by section ninety-two-f of the  state  finance  law  at  the
 times set forth in the preceding sentence.
   §  26.  The tax law is amended by adding a new section 1265 to read as
 follows:
   § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES.
 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY  REFERENCE  IN
 ANY  SECTION  OF  THIS  CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDI-
 NANCE, 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
 THE CHAPTER OF THE LAWS OF TWO THOUSAND  TWENTY-THREE  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 EQUIVALENT 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 THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE.
   § 27. Section 7 of chapter 67 of the laws of 2015,  amending  the  tax
 law  relating  to  authorizing  the city of Yonkers to impose additional
 sales tax, as amended by section 2 of item CCC of subpart C of part  XXX
 of chapter 58 of the laws of 2020, is amended to read as follows:
   §  7.  This act shall take effect immediately [and shall expire and be
 deemed repealed November 30, 2023].
   § 28. Section 2 of item R of subpart C of part XXX of  chapter  58  of
 the  laws of 2020 amending the tax law relating to extending the expira-
 tion of the authorization to the county of Genesee to  impose  an  addi-
 tional  one  percent  of sales and compensating use taxes, is amended to
 read as follows:
   § 2. Notwithstanding any other provision of law to the  contrary,  the
 one  percent increase in sales and compensating use taxes authorized for
 the county of Genesee [until November 30, 2023] pursuant to  [clause  20
 of subparagraph (i) of the opening paragraph of] section 1210 of the tax
 law[,  as  amended  by section one of this act,] shall be divided in the
 same manner and proportion as  the  existing  three  percent  sales  and
 compensating use taxes in such county are divided.
   §  29.   Section 2 of item Z of subpart C of part XXX of chapter 58 of
 the laws of 2020 amending the tax law relating to  the  imposition    of
 sales   and   compensating use taxes by the county of Monroe, is amended
 to read as follows:
   § 2. Notwithstanding the provisions of subdivisions  (b)  and  (c)  of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion  of sales and compensating use taxes by the county of Monroe at the
 additional rate of one percent as authorized pursuant to [clause (25) of
 subparagraph (i) of the opening paragraph of] section 1210  of  the  tax
 law[,  as  amended by section one of this act,] which are in addition to
 the current net collections derived from the imposition of such taxes at
 S. 4009--A                         50                         A. 3009--A
 
 the three percent rate authorized by [the opening paragraph of]  section
 1210 of the tax law, shall be distributed and allocated as follows:  for
 [the]  ANY  period  [of] BEGINNING ON OR AFTER December 1, 2020 [through
 November  30, 2023] in cash, five percent to the school districts in the
 area of the county outside the city of Rochester, three percent  to  the
 towns  located  within  the  county,  one and one-quarter percent to the
 villages located  within  the  county,  and  ninety  and  three-quarters
 percent to the city of Rochester and county of Monroe. The amount of the
 ninety and three-quarters percent to be distributed and allocated to the
 city  of  Rochester  and county of Monroe shall be distributed and allo-
 cated to each so that the combined total distribution and allocation  to
 each from the sales tax revenues pursuant to sections 1262 and 1262-g of
 the tax law and this section shall result in the same total amount being
 distributed and allocated to the city of Rochester and county of Monroe.
 The  amount so distributed and allocated to the county shall be used for
 county purposes. The foregoing cash payments  to  the  school  districts
 shall  be  allocated  on the basis of the enrolled public school pupils,
 thereof, as such term is used in subdivision (b) of section 1262 of  the
 tax  law,  residing  in  the  county of Monroe. The cash payments to the
 towns located within the county of Monroe  shall  be  allocated  on  the
 basis  of  the ratio which the population of each town, exclusive of the
 population of any village or portion  thereof  located  within  a  town,
 bears  to the total population of the towns, exclusive of the population
 of the villages located within such towns.  The  cash  payments  to  the
 villages  located  within  the county shall be allocated on the basis of
 the ratio which the population of each village bears to the total  popu-
 lation of the villages located within the county. The term population as
 used  in this section shall have the same meaning as used in subdivision
 (b) of section 1262 of the tax law.
   § 30. Section 4 of item EE of subpart C of part XXX of chapter  58  of
 the laws of 2020 amending the tax law relating to extending the authori-
 zation  of  the county of Onondaga to impose an additional rate of sales
 and compensating use  taxes, is amended to read as follows:
   § 4. Notwithstanding any contrary provision of  law,  net  collections
 from the additional one percent rate of sales and compensating use taxes
 which  may  be imposed by the county of Onondaga during [the] ANY period
 commencing ON OR AFTER December 1, 2022 [and ending November 30,  2023],
 pursuant  to  the authority of section 1210 of the tax law, shall not be
 subject to any revenue distribution agreement entered into under  subdi-
 vision  (c)  of  section 1262 of the tax law, but shall be allocated and
 distributed or paid, at least quarterly, as follows: (i)  1.58%  to  the
 county  of  Onondaga  for any county purpose; (ii) 97.79% to the city of
 Syracuse; and (iii) .63% to the  school  districts  in  accordance  with
 subdivision (a) of section 1262 of the tax law.
   §  31.  Section 2 of item GG of subpart C of part XXX of chapter 58 of
 the laws of 2020 amending the tax law relating to extending the authori-
 ty of the county of Orange to impose an additional  rate  of  sales  and
 compensating use taxes, is amended to read as follows:
   §  2.  Notwithstanding subdivision (c) of section 1262 of the tax law,
 net collections from any additional rate of sales and  compensating  use
 taxes  which may be imposed by the county of Orange [during the] FOR ANY
 period commencing ON OR AFTER December 1, 2020, [and ending November 30,
 2023,] pursuant to the authority of section 1210 of the tax  law,  shall
 be  paid to the county of Orange and shall be used by such county solely
 for county purposes and shall not be subject to any revenue distribution
 S. 4009--A                         51                         A. 3009--A
 
 agreement entered into pursuant to the authority of subdivision  (c)  of
 section 1262 of the tax law.
   §  32.  Section 3 of item XX of subpart C of part XXX of chapter 58 of
 the laws of 2020 amending the tax law relating to extending the authori-
 ty of the county of Ulster to impose an additional 1 percent  sales  and
 compensating use tax, is amended to read as follows:
   §  3.  If, pursuant to the authority of this act, the county of Ulster
 imposes sales and compensating use taxes at a rate  greater  than  three
 percent  for  all  or  any  portion of [the] ANY period commencing ON OR
 AFTER September 1, 2002, [and ending November 30, 2023,] net collections
 from such additional rate of tax imposed during  such  period  shall  be
 deemed  to be, and shall be included in, net collections subject to such
 county's existing agreement with  the  city  of  Kingston  entered  into
 pursuant  to subdivision (c) of section 1262 of the tax law and such net
 collections shall be allocated in accordance with such agreement.
   § 33. This act shall take effect immediately.
 
                                  PART P
 
   Section 1. Section 1299-C of the tax law is REPEALED.
   § 2. Notwithstanding any provision of law to the contrary, there shall
 be no refund of any registration fees paid prior to the  effective  date
 of this act.
   § 3. This act shall take effect immediately.
 
                                  PART Q
 
   Section  1.  Section  285-a  of the tax law is amended by adding a new
 subdivision 4 to read as follow:
   4. UPON EACH SALE OF MOTOR FUEL, OTHER THAN A SALE THAT  IS  OTHERWISE
 EXEMPT  UNDER  THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE TAX IMPOSED
 BY THIS ARTICLE TO THE PURCHASER ON  EACH  GALLON  SOLD.  IF  THE  TAXES
 IMPOSED  BY  THIS  ARTICLE  HAVE  NOT  ALREADY BEEN ASSUMED OR PAID BY A
 DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING,  BUT
 NOT  LIMITED  TO,  THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
 FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO  THE  COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   §  2. Section 285-b of the tax law is amended by adding a new subdivi-
 sion 5 to read as follows:
   5. UPON EACH SALE OF DIESEL MOTOR FUEL, OTHER  THAN  A  SALE  THAT  IS
 OTHERWISE EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE TAX
 IMPOSED  BY  THIS  ARTICLE  TO THE PURCHASER ON EACH GALLON SOLD. IF THE
 TAXES IMPOSED BY THIS ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY A
 DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING,  BUT
 NOT  LIMITED  TO,  THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
 FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO  THE  COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   § 3. Section 308 of the tax law is amended by adding a new subdivision
 (j) to read as follows:
   (J) EVERY PETROLEUM BUSINESS SUBJECT TO TAX UNDER THIS ARTICLE THAT IS
 ALSO A DISTRIBUTOR, AS DEFINED IN SECTION TWO HUNDRED EIGHTY-TWO OF THIS
 CHAPTER, MUST CHARGE THE TAX IMPOSED BY THIS ARTICLE TO THE PURCHASER ON
 EACH  GALLON SOLD, UNLESS OTHERWISE EXEMPT. IF THE TAXES IMPOSED BY THIS
 ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY SUCH PETROLEUM BUSINESS
 ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT NOT  LIMITED
 TO,  THE  EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE FLUCTUATION,
 S. 4009--A                         52                         A. 3009--A
 
 SUCH PETROLEUM BUSINESS MUST REMIT SUCH TAXES TO THE COMMISSIONER ON THE
 RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   §  4.  Section 1102 of the tax law is amended by adding a new subdivi-
 sion (g) to read as follows:
   (G) THE TAX IMPOSED BY THIS SECTION MUST BE CHARGED ON THE SALE, OTHER
 THAN A RETAIL SALE OR A SALE THAT IS OTHERWISE EXEMPT UNDER  THIS  ARTI-
 CLE,  OF  EACH  GALLON  OF MOTOR FUEL OR DIESEL MOTOR FUEL. IF THE TAXES
 IMPOSED BY THIS SECTION HAVE NOT ALREADY BEEN ASSUMED  OR  PAID  BY  THE
 DISTRIBUTOR  ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
 NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A  RESULT  OF  TEMPERATURE
 FLUCTUATION,  THE  DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   § 5. This act shall take effect on September 1, 2023 and  shall  apply
 to sales of motor fuel and Diesel motor fuel on or after such date.
 
                                  PART R
 
   Section  1.  Subparagraph  (B)  of  paragraph  1 of subdivision (a) of
 section 1115 of the tax law, as amended by section 1 of part GG of chap-
 ter 59 of the laws of 2022, is amended to read as follows:
   (B) Until May [thirty first] THIRTY-FIRST, two thousand [twenty-three]
 TWENTY-FOUR, 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:  (I)  when  sold
 for one dollar and fifty cents or less through any vending machine OPER-
 ATED BY A PARTICIPANT IN THE "BUSINESS ENTERPRISE PROGRAM", AS SUCH TERM
 IS  DEFINED  IN  PARAGRAPH  TWO  OF SUBDIVISION A OF SECTION ELEVEN-A OF
 CHAPTER FOUR HUNDRED FIFTEEN OF THE LAWS OF  NINETEEN  HUNDRED  THIRTEEN
 that accepts coin or currency only; or (II) when sold for two dollars or
 less  through  any  vending  machine OPERATED BY SUCH A PARTICIPANT 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 June 1, 2023.
 
                                  PART S
 
   Section  1. Subdivision 1 of section 471 of the tax law, as amended by
 section 1 of part D of chapter 134 of the laws of 2010,  is  amended  to
 read as follows:
   1.  There  is hereby imposed and shall be paid a tax on all cigarettes
 possessed in the state by any person for sale, except that no tax  shall
 be  imposed  on cigarettes sold under such circumstances that this state
 is without power to impose such tax, including sales to qualified  Indi-
 ans for their own use and consumption on their nations' or tribes' qual-
 ified  reservation,  or  sold  to  the  United States or sold to or by a
 voluntary unincorporated organization of the armed forces of the  United
 States  operating  a place for the sale of goods pursuant to regulations
 promulgated by the appropriate executive agency of the United States, to
 the extent provided in such regulations and policy statements of such an
 agency applicable to such sales. The tax  imposed  by  this  section  is
 imposed  on  all cigarettes sold on an Indian reservation to non-members
 of the Indian nation or tribe and to non-Indians and  evidence  of  such
 tax  shall be by means of an affixed cigarette tax stamp. Indian nations
 or tribes may elect to participate in the Indian  tax  exemption  coupon
 system established in section four hundred seventy-one-e of this article
 which provides a mechanism for the collection of the tax imposed by this
 S. 4009--A                         53                         A. 3009--A
 
 section on cigarette sales on qualified reservations to such non-members
 and  non-Indians  and for the delivery of quantities of tax-exempt ciga-
 rettes to Indian nations or tribes for the personal use and  consumption
 of  qualified members of the Indian nation or tribe. If an Indian nation
 or tribe does not elect to  participate  in  the  Indian  tax  exemption
 coupon  system, the prior approval system shall be the mechanism for the
 delivery of quantities of tax-exempt cigarettes  to  Indian  nations  or
 tribes  for the personal use and consumption of qualified members of the
 Indian nation or tribe as provided for in paragraph (b)  of  subdivision
 five  of  this  section.  Such tax on cigarettes shall be at the rate of
 [four] FIVE dollars and thirty-five cents for each twenty cigarettes  or
 fraction  thereof,  provided,  however,  that if a package of cigarettes
 contains more than twenty cigarettes, the rate of tax on the  cigarettes
 in  such  package  in  excess  of twenty shall be one dollar and [eight]
 THIRTY-THREE and three-quarters cents for each five cigarettes or  frac-
 tion  thereof.  Such tax is intended to be imposed upon only one sale of
 the same package of cigarettes. It shall be presumed that all cigarettes
 within the state are subject to tax until the contrary  is  established,
 and  the  burden  of proof that any cigarettes are not taxable hereunder
 shall be upon the person in possession thereof.
   § 2.  Section 471-a of the tax law, as amended by section 5 of part  D
 of chapter 134 of the laws of 2010, is amended to read as follows:
   §  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
 paid a tax on all cigarettes used in the state  by  any  person,  except
 that  no  tax  shall  be imposed (1) if the tax provided in section four
 hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
 rettes  which are exempt from the tax imposed by said section, or (3) on
 the use of four hundred or less cigarettes, brought into the  state  on,
 or  in the possession of, any person. Such tax on cigarettes shall be at
 the rate of [four] FIVE dollars and thirty-five cents  for  each  twenty
 cigarettes  or fraction thereof, provided, however, that if a package of
 cigarettes contains more than twenty cigarettes, the rate of tax on  the
 cigarettes  in  such package in excess of twenty shall be one dollar and
 [eight] THIRTY-THREE and three-quarters cents for each  five  cigarettes
 or  fraction  thereof.  Within twenty-four hours after liability for the
 tax accrues, each such person shall file with the commissioner a  return
 in  such  form  as the commissioner may prescribe together with a remit-
 tance of the tax shown to be due thereon. For purposes of this  article,
 the  word  "use"  means  the  exercise  of  any right or power actual or
 constructive and shall include but is not limited to the receipt,  stor-
 age  or  any  keeping or retention for any length of time, but shall not
 include possession for sale. All other provisions of this article if not
 inconsistent shall apply to the administration and  enforcement  of  the
 tax  imposed  by  this  section in the same manner as if the language of
 said provisions had been incorporated in full into this section.
   § 3. Notwithstanding any other provision of law to the  contrary,  the
 tax  due  on  cigarettes  possessed in New York state as of the close of
 business on August 31, 2023, by any person for sale solely  attributable
 to the increase imposed by the amendments to section 471 of the tax law,
 as  amended  by  section  one of this act, shall be paid by November 20,
 2023, subject to such terms and conditions as the commissioner of  taxa-
 tion and finance shall prescribe.
   §  4. This act shall take effect on September 1, 2023, and shall apply
 to all cigarettes possessed in this state by any person for sale and all
 cigarettes used in this state by any person on or after such date.
 S. 4009--A                         54                         A. 3009--A
 
                                  PART T
 
   Section  1. Subdivision 4 of section 474 of the tax law, as amended by
 chapter 61 of the laws of 1989, is amended to read as follows:
   4. (A) At the time of delivering cigarettes to any person  each  agent
 or  wholesale  dealer, and at the time of delivering tobacco products to
 any person each distributor or wholesale  dealer  of  tobacco  products,
 shall  make  a  true duplicate invoice showing the date of delivery, the
 number of packages and number of cigarettes contained therein,  in  each
 shipment  of cigarettes delivered, and the items and quantity and whole-
 sale price of each item in each shipment of tobacco products  delivered,
 and the name of the purchaser to whom delivery is made, and shall retain
 the  same  for a period of three years subject to the use and inspection
 of the commissioner [of taxation and finance]. Each dealer shall procure
 and retain invoices showing the number of packages and number  of  ciga-
 rettes contained therein, in each shipment of cigarettes received by him
 OR  HER,  and the items and quantity and wholesale price of each item in
 each shipment of tobacco products received by him OR HER, the date ther-
 eof, and the name of the shipper, and shall retain the same for a period
 of three years subject to the use and inspection of the commissioner [of
 taxation and finance]. The commissioner [of  taxation  and  finance]  by
 regulation  may provide that whenever cigarettes or tobacco products are
 shipped into the state, the railroad company, express company,  trucking
 company  or other public carrier transporting any shipment thereof shall
 file with the commissioner [of taxation  and  finance]  a  copy  of  the
 freight  bill  within  ten  days after the delivery in the state of each
 shipment. All dealers shall maintain and keep  for  a  period  of  three
 years  such  other  records  of cigarettes or tobacco products received,
 sold or delivered within the state as may be required by the commission-
 er [of taxation and finance]. The commissioner [of taxation and finance]
 is hereby authorized to examine the books, papers,  invoices  and  other
 records  of  any person in possession, control or occupancy of any prem-
 ises where cigarettes or tobacco products are placed,  stored,  sold  or
 offered for sale, and the equipment of any such person pertaining to the
 stamping of cigarettes or the sale and delivery of cigarettes or tobacco
 products  taxable under this article, as well as the stock of cigarettes
 or tobacco products in any such premises or vehicle. To verify the accu-
 racy of the tax imposed and assessed by this article, each  such  person
 is hereby directed and required to give to the commissioner [of taxation
 and  finance]  or his OR HER duly authorized representatives, the means,
 facilities and opportunity for such examinations as are herein  provided
 for and required.
   (B)  IF  A  RETAIL DEALER, OR ITS EMPLOYEES OR AGENTS, REFUSES TO GIVE
 THE COMMISSIONER OR HIS OR  HER  DULY  AUTHORIZED  REPRESENTATIVES,  THE
 MEANS,  FACILITIES AND OPPORTUNITY FOR SUCH EXAMINATIONS AS ARE REQUIRED
 AND PROVIDED FOR BY THIS SECTION: (I) ITS  REGISTRATION  TO  SELL  CIGA-
 RETTES  AND  TOBACCO PRODUCTS SHALL BE REVOKED FOR A PERIOD OF ONE YEAR;
 (II) FOR A SECOND SUCH FAILURE WITHIN  A  PERIOD  OF  THREE  YEARS,  ITS
 REGISTRATION  SHALL  BE  PERMANENTLY REVOKED. IF SUCH RETAIL DEALER DOES
 NOT POSSESS A VALID REGISTRATION, EITHER BECAUSE IT FAILED TO  OBTAIN  A
 REGISTRATION  OR ITS REGISTRATION IS SUSPENDED OR REVOKED AT THE TIME OF
 SUCH REFUSAL, THE RETAIL DEALER SHALL BE SUBJECT TO A PENALTY OF  UP  TO
 FIVE THOUSAND DOLLARS FOR A FIRST REFUSAL AND UP TO TEN THOUSAND DOLLARS
 FOR A SECOND REFUSAL WITHIN THREE YEARS.
   § 2. This act shall take effect immediately.
 S. 4009--A                         55                         A. 3009--A
 
                                  PART U
 
   Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
 subdivision  (b) of section 1402 of the tax law, as amended by section 1
 of item UUU of subpart B of part XXX of chapter 58 of the laws of  2020,
 is amended to read as follows:
   For  purposes  of this subdivision, the phrase "real estate investment
 trust transfer" shall mean any conveyance of real property or an  inter-
 est  therein  to  a  REIT, or to a partnership or corporation in which a
 REIT owns a controlling interest immediately following  the  conveyance,
 which  conveyance (I) occurs in connection with the initial formation of
 the REIT, provided that the conditions set forth in clauses (i) and (ii)
 of this subparagraph are satisfied, or (II) in  the  case  of  any  real
 estate  investment trust transfer occurring on or after July thirteenth,
 nineteen hundred ninety-six and before  September  first,  two  thousand
 [twenty-three]  TWENTY-SIX,  is  described  in the last sentence of this
 subparagraph.
   § 2. Subparagraph 2 of paragraph (xi) of subdivision  (b)  of  section
 1201 of the tax law, as amended by section 2 of item UUU of subpart B of
 part  XXX  of  chapter  58  of  the  laws of 2020, is amended to read as
 follows:
   (2) any issuance or transfer of an interest in a REIT, or in  a  part-
 nership or corporation in which a REIT owns a controlling interest imme-
 diately  following the issuance or transfer, in connection with a trans-
 action described in subparagraph one of this paragraph.  Notwithstanding
 the foregoing, a transaction described in the preceding  sentence  shall
 not  constitute  a  real  estate investment trust transfer unless (A) it
 occurs in connection with the initial formation  of  the  REIT  and  the
 conditions  described  in subparagraphs three and four of this paragraph
 are satisfied, or (B) in the case of any real  estate  investment  trust
 transfer  occurring  on or after July thirteenth, nineteen hundred nine-
 ty-six and before September first, two thousand  [twenty-three]  TWENTY-
 SIX, the transaction is described in subparagraph five of this paragraph
 in which case the provisions of such subparagraph shall apply.
   §  3.  Subparagraph  (B)  of  paragraph  2 of subdivision e of section
 11-2102 of the administrative code of the city of New York,  as  amended
 by  section  3 of item UUU of subpart B of part XXX of chapter 58 of the
 laws of 2020, is amended to read as follows:
   (B) any issuance or transfer of an interest in a REIT, or in  a  part-
 nership or corporation in which a REIT owns a controlling interest imme-
 diately  following  the issuance or transfer in connection with a trans-
 action described in subparagraph (A) of this paragraph.  Notwithstanding
 the foregoing, a transaction described in the preceding  sentence  shall
 not  constitute  a  real  estate investment trust transfer unless (i) it
 occurs in connection with the initial formation  of  the  REIT  and  the
 conditions  described in subparagraphs (C) and (D) of this paragraph are
 satisfied, or (ii) in the case  of  any  real  estate  investment  trust
 transfer  occurring  on or after July thirteenth, nineteen hundred nine-
 ty-six and before September first, two thousand  [twenty-three]  TWENTY-
 SIX,  the transaction is described in subparagraph (E) of this paragraph
 in which case the provision of such subparagraph shall apply.
   § 4. This act shall take effect immediately.
 
                                  PART V
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   Section 1. Section 2016 of the tax law, as amended by chapter  401  of
 the laws of 1987, is amended to read as follows:
   § 2016. Judicial review. A decision of the tax appeals tribunal, which
 is  not  subject to any further administrative review, shall finally and
 irrevocably decide all the  issues  which  were  raised  in  proceedings
 before  the  division  of  tax appeals upon which such decision is based
 unless, within four months after notice of such decision  is  served  by
 the  tax appeals tribunal upon every party to the proceeding before such
 tribunal by certified mail  or  personal  service,  the  petitioner  who
 commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
 TION for judicial review in the manner provided by article seventy-eight
 of  the  civil  practice  law and rules, except as otherwise provided in
 this [section] CHAPTER.    Such  service  by  certified  mail  shall  be
 complete  upon  deposit of such notice, enclosed in a post-paid properly
 addressed wrapper, in a post office or  official  depository  under  the
 exclusive  care  and custody of the United States postal service.  [The]
 WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
 TAX APPEALS FILES A PETITION FOR JUDICIAL  REVIEW,  THE  PETITION  shall
 designate the tax appeals tribunal and the commissioner [of taxation and
 finance]  as  respondents  in the proceeding for judicial review.  WHERE
 THE COMMISSIONER FILES A PETITION  FOR  JUDICIAL  REVIEW,  THE  PETITION
 SHALL  DESIGNATE  THE  TAX  APPEALS  TRIBUNAL  AND  THE  PETITIONER  WHO
 COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS  RESPOND-
 ENTS  IN  THE  PROCEEDING  FOR JUDICIAL REVIEW. The tax appeals tribunal
 shall not participate in proceedings for judicial review  of  its  deci-
 sions and such proceedings for judicial review shall be commenced in the
 appellate  division of the supreme court, third department. In all other
 respects the provisions and standards of article  seventy-eight  of  the
 civil  practice law and rules shall apply.  The record to be reviewed in
 such proceedings for judicial review shall include the determination  of
 the  administrative law judge, the decision of the tax appeals tribunal,
 the stenographic transcript of the hearing before the administrative law
 judge, the transcript of any oral proceedings  before  the  tax  appeals
 tribunal  and  any  exhibit  or  document submitted into evidence at any
 proceeding in the division of tax appeals upon which  such  decision  is
 based.
   §  2.  This act shall take effect immediately and shall apply to deci-
 sions and orders issued by the tax appeals tribunal  on  or  after  such
 date.
 
                                  PART W
 
   Section  1.  Subdivision 1 of section 105 of the state finance law, as
 amended by chapter 204 of the laws  of  2002,  is  amended  to  read  as
 follows:
   1.  All moneys received by the commissioner of taxation and finance on
 account of the state, excepting such moneys as are required by law to be
 deposited to the credit of the comptroller, but including such moneys as
 are thereafter paid into the state treasury by the comptroller, shall be
 deposited by the commissioner of taxation and finance within three BUSI-
 NESS days after the receipt thereof, either as a demand  deposit  or  an
 interest-bearing  time  deposit (other than a time certificate of depos-
 it), as [he] THE COMMISSIONER and the comptroller may determine, in such
 banks, trust companies and industrial banks as in [his] THE  opinion  OF
 THE  COMMISSIONER  and  the  opinion  of the comptroller are secure. The
 moneys so deposited shall be placed to the account of  the  commissioner
 S. 4009--A                         57                         A. 3009--A
 
 of taxation and finance.  [He] THE COMMISSIONER shall keep a bankbook in
 which  shall  be  entered  [his]  THEIR account of deposit in and moneys
 drawn from the banks and trust companies and industrial banks  in  which
 deposits  are  made  by  [him]  THE  COMMISSIONER, which [he] THEY shall
 exhibit to the comptroller for [his] inspection on the first Tuesday  of
 every  month  and  oftener  if required. [He] THE COMMISSIONER shall not
 draw any moneys from such banks, trust  companies  or  industrial  banks
 unless  by  checks  signed and countersigned in the manner prescribed by
 section one hundred one, unless otherwise provided  by  law.  No  moneys
 shall  be paid by any such bank, trust company or industrial bank out of
 any such deposit except upon such checks.   Moneys may be  paid  through
 electronic  transfer  in  accordance  with  procedures  developed by the
 commissioner of taxation and finance and the comptroller and  consistent
 with  the  requirements  of  this  section  for recording payments. Such
 payments through electronic transfer shall be considered,  for  purposes
 of  this  chapter,  to be moneys drawn by check.  Every such bank, trust
 company or industrial bank shall transmit  to  the  comptroller  monthly
 statements  of  all  moneys  received  and  paid by it on account of the
 commissioner of taxation and finance.
   § 2. This act shall take effect immediately.
 
                                  PART X
 
   Section 1. Legislative findings. The legislature finds that it  is  in
 the  interests  of  the state to assist The New York Racing Association,
 Inc., which is  the  franchised  corporation  pursuant  to  section  two
 hundred  six  of  the  racing, pari-mutuel wagering and breeding law, to
 renovate Belmont Park racetrack and  repurpose  the  Aqueduct  property.
 The  legislature  further finds and determines that the anticipated cost
 of renovating Belmont Park racetrack is four hundred fifty-five  million
 dollars and that the renovation of Belmont Park racetrack shall initial-
 ly  be  financed by the state subject to the provisions of the repayment
 agreement of the franchised corporation required by section two of  this
 act. The franchised corporation will be responsible for repayment of the
 state funds in accordance with the terms of such repayment agreement.
   §  2.  Prior  to,  and as a condition to the state initially providing
 funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
 corporation  shall  enter  into  a  repayment  agreement  with the state
 authorizing and directing that a portion of the funds of the  franchised
 corporation  dedicated for capital expenditures of the franchised corpo-
 ration pursuant to paragraph 3 of  subdivision  f  and  paragraph  3  of
 subdivision  f-1  of  section 1612 of the tax law shall be used to repay
 the state for the funds provided by the  state  for  the  renovation  of
 Belmont  Park  racetrack,  in  accordance  with  the repayment agreement
 between the state and the franchised corporation. Such  agreement  shall
 further  provide  that  in the event the franchised corporation receives
 future statutory payments enacted for the specific  purpose  of  holding
 the franchised corporation harmless for any loss of payments pursuant to
 paragraph  3  of  subdivision  f  and  paragraph 3 of subdivision f-1 of
 section 1612 of the tax law, such statutory payments shall also be  used
 to  repay  the  state  for the funds provided by the state for the reno-
 vation of Belmont Park racetrack. Such agreement  may  also  be  amended
 from  time  to  time as agreed to by the state and the franchised corpo-
 ration.  At any time prior to the repayment of the state funds  for  the
 renovation of Belmont Park racetrack, the state may issue state personal
 income  tax revenue bonds or state sales tax revenue bonds. In the event
 S. 4009--A                         58                         A. 3009--A
 
 of the issuance of such bonds, the repayment agreement shall be  revised
 to  reflect  the obligation of the franchised corporation to fully repay
 the debt service costs associated with such bonds.
   §  3.  Prior  to, and as a condition of, the state initially providing
 funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
 corporation  shall  also  enter  into an agreement with the state relin-
 quishing to the state its leasehold interest in real property located in
 South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial
 completion of the renovation of Belmont Park racetrack.
   § 4. The New York State Gaming Commission shall  ensure  that  to  the
 extent  that  the law allows for a franchise agreement for the operation
 of Belmont Park racetrack with a franchisee other  than  the  franchised
 corporation,  the  term  of  any  such franchise agreement awarded after
 funding provided by the state for the renovation of Belmont  Park  race-
 track  described  by  section  one of this act shall include a provision
 obligating such franchisee to assume  the  payments  of  the  franchised
 corporation required by section two of this act.
   §  5. The opening paragraph of paragraph 3 of subdivision f of section
 1612 of the tax law is designated subparagraph (i) and  a  new  subpara-
 graph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 THE STATE PROVIDES FUNDS TO THE FRANCHISED  CORPORATION  FOR  THE  RENO-
 VATION OF BELMONT PARK RACETRACK, OUT OF THE AMOUNT PAYABLE TO THE FRAN-
 CHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I)
 OF  THIS  PARAGRAPH  DURING ANY STATE FISCAL YEAR, AN AMOUNT PURSUANT TO
 THE REPAYMENT AGREEMENT BETWEEN THE STATE AND THE FRANCHISED CORPORATION
 SHALL INSTEAD BE DEPOSITED INTO THE MISCELLANEOUS CAPITAL PROJECTS FUND,
 NEW YORK RACING CAPITAL IMPROVEMENT FUND AS REQUIRED TO REPAY THE  STATE
 FOR  FUNDS  PROVIDED  FOR THE RENOVATION OF BELMONT PARK RACETRACK.  ANY
 AMOUNT PAYABLE TO THE  FRANCHISED CORPORATION  IN ANY  STATE FISCAL YEAR
 FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I) OF THIS  PARAGRAPH
 IN  EXCESS  OF THE   AMOUNT  PURSUANT TO THE REPAYMENT AGREEMENT BETWEEN
 THE STATE AND THE FRANCHISED CORPORATION SHALL BE DEPOSITED PURSUANT  TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH.  ONCE THE STATE HAS BEEN FULLY REIM-
 BURSED  FOR  THE  COSTS  RELATED TO THE RENOVATION OF BELMONT PARK RACE-
 TRACK, THIS SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH  (I)  OF
 THIS PARAGRAPH SHALL APPLY.
   §  6.  The  opening  paragraph  of  paragraph  3 of subdivision f-1 of
 section 1612 of the tax law is designated subparagraph  (i)  and  a  new
 subparagraph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 THE STATE PROVIDES FUNDS TO THE FRANCHISED  CORPORATION  FOR  THE  RENO-
 VATION  OF BELMONT PARK RACETRACK, AND IN THE EVENT THE AMOUNT DEPOSITED
 PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH THREE  OF  SUBDIVISION  F  OF
 THIS  SECTION IS INSUFFICIENT TO MAKE THE REQUIRED REPAYMENT PURSUANT TO
 SUCH SUBPARAGRAPH DURING ANY STATE FISCAL YEAR, AN AMOUNT PAYABLE TO THE
 FRANCHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH
 (I) OF THIS PARAGRAPH SHALL INSTEAD BE DEPOSITED INTO THE  MISCELLANEOUS
 CAPITAL  PROJECTS  FUND, NEW YORK RACING CAPITAL IMPROVEMENT FUND TO THE
 EXTENT NECESSARY, WHEN COMBINED WITH THE AMOUNT SET  FORTH  IN  SUBPARA-
 GRAPH  (II) OF PARAGRAPH THREE OF SUBDIVISION F OF THIS SECTION, TO MAKE
 ANY REQUIRED REPAYMENT OF FUNDS PROVIDED BY THE  STATE  RELATED  TO  THE
 RENOVATION OF BELMONT PARK RACETRACK DURING SUCH FISCAL YEAR. ANY AMOUNT
 PAYABLE TO THE FRANCHISED CORPORATION IN ANY STATE FISCAL YEAR FOR CAPI-
 TAL  EXPENDITURES  PURSUANT  TO  SUBPARAGRAPH  (I)  OF THIS PARAGRAPH IN
 EXCESS OF THE AMOUNT PURSUANT TO THE  REPAYMENT  AGREEMENT  BETWEEN  THE
 S. 4009--A                         59                         A. 3009--A
 
 STATE  AND  THE  FRANCHISED  CORPORATION  SHALL BE DEPOSITED PURSUANT TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH. ONCE THE STATE HAS BEEN FULLY  REIM-
 BURSED  FOR  SUCH  COSTS RELATED TO THE RENOVATION OF BELMONT PARK RACE-
 TRACK,  THIS  SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH (I) OF
 THIS PARAGRAPH SHALL APPLY.
   § 7. The state comptroller is hereby authorized and directed  to  loan
 money  in  accordance  with the provisions set forth in subdivision 5 of
 section 4 of the state finance law to the miscellaneous capital projects
 fund, New York racing capital improvement fund.
   § 8. 1.  Notwithstanding any other provisions of law to the  contrary,
 the  dormitory authority, the urban development corporation, and the New
 York state thruway authority are hereby  authorized  to  issue  personal
 income  tax  revenue  bonds or notes or state sales tax revenue bonds or
 notes in one or more series in an  aggregate  principal  amount  not  to
 exceed  four hundred fifty-five million dollars ($455,000,000) excluding
 bonds or notes issued to pay costs of issuance of such  bonds  or  notes
 and  bonds  or  notes  issued to refund or otherwise repay such bonds or
 notes previously issued, for the purpose of financing the renovation  of
 Belmont Park racetrack.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority, urban development  corporation,
 and  the  New  York state thruway authority in undertaking the financing
 for the renovation of Belmont Park racetrack, the director of the budget
 is hereby authorized to enter into one or more financing agreements with
 the dormitory authority, the urban development corporation, and the  New
 York  state  thruway  authority,  upon  such terms and conditions as the
 director of the budget and the dormitory authority, the  urban  develop-
 ment  corporation  and the New York state thruway authority agree, so as
 to annually provide to the dormitory authority,  the  urban  development
 corporation, and the New York state thruway authority, in the aggregate,
 a  sum  not  to  exceed  the  principal,  interest, and related expenses
 required for such bonds and notes. Any financing agreement entered  into
 pursuant  to this section shall provide that the obligation of the state
 to pay the amount therein provided shall not constitute a  debt  of  the
 state  within  the  meaning of any constitutional or statutory provision
 and shall be deemed executory only to the extent of monies available and
 that no liability shall be incurred  by  the  state  beyond  the  monies
 available  for  such  purpose,  subject  to  annual appropriation by the
 legislature. Any such contract or any payments made or to be made there-
 under may be assigned and pledged by the dormitory authority, the  urban
 development  corporation,  and  the  New York state thruway authority as
 security for such bonds and notes, as authorized by this section.
   § 9. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed in each state fiscal year to transfer, upon request of the
 director of the budget, up to the unencumbered balance or an  amount  up
 to twenty-five million eight hundred thousand dollars ($25,800,000) from
 the  miscellaneous  capital  projects  fund,  New  York  racing  capital
 improvement fund to the general fund.
   § 10. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Paragraph 1 of subdivision a of section  1612  of  the  tax
 law,  as  amended by chapter 174 of the laws of 2013, is amended to read
 as follows:
 S. 4009--A                         60                         A. 3009--A
 
   (1) sixty percent of the total amount for which tickets have been sold
 for [a lawful lottery] THE QUICK DRAW game [introduced on or  after  the
 effective date of this paragraph,] subject to [the following provisions:
   (A) such game shall be available only on premises occupied by licensed
 lottery sales agents, subject to the following provisions:
   (i)  if  the  licensee  does not hold a license issued pursuant to the
 alcoholic beverage control law to sell alcoholic beverages for  consump-
 tion  on  the  premises,  then  the  premises must have a minimum square
 footage greater than two thousand five hundred square feet;
   (ii) notwithstanding the foregoing  provisions,  television  equipment
 that  automatically  displays  the  results  of  such  drawings  may  be
 installed and used without regard to the square footage if such premises
 are used as:
   (I) a commercial bowling establishment, or
   (II) a facility authorized under the racing, pari-mutuel wagering  and
 breeding law to accept pari-mutuel wagers;
   (B) the] rules for the operation of such game [shall be] as prescribed
 by regulations promulgated and adopted by the division[, provided howev-
 er,  that such rules shall provide that no person under the age of twen-
 ty-one may participate in such games on the premises of a  licensee  who
 holds a license issued pursuant to the alcoholic beverage control law to
 sell alcoholic beverages for consumption on the premises; and, provided,
 further,  that such regulations may be revised on an emergency basis not
 later than ninety days after the enactment of this paragraph in order to
 conform such regulations to the requirements of this paragraph]; or
   § 2. This act shall take effect immediately.
 
                                  PART Z
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new section 502-a to read as follows:
   §  502-A.  CLOSURE OF CATSKILL REGIONAL OFF-TRACK BETTING CORPORATION.
 1. CATSKILL REGIONAL OFF-TRACK  BETTING  CORPORATION  ESTABLISHED  UNDER
 SECTION  FIVE  HUNDRED TWO OF THIS ARTICLE IS TERMINATED, SUBJECT TO THE
 SATISFACTION OF OUTSTANDING DEBTS AND OBLIGATIONS  AND  DISTRIBUTION  OF
 ANY REMAINING ASSETS, AS SET FORTH IN THIS SECTION.
   2.  CATSKILL  REGIONAL OFF-TRACK BETTING CORPORATION SHALL CONTINUE IN
 ITS EXISTENCE SOLELY FOR THE PURPOSE OF SATISFYING ALL OUTSTANDING DEBTS
 AND OBLIGATIONS AND DISTRIBUTION OF ANY REMAINING  ASSETS,  TAKING  INTO
 ACCOUNT  THE  PRIORITY  REQUIREMENTS  OF SUBDIVISION TWO OF SECTION FIVE
 HUNDRED SIX AND SUBDIVISION TWO OF SECTION FIVE HUNDRED SIXTEEN OF  THIS
 ARTICLE.   SUCH CORPORATION SHALL SUBMIT A LIST OF ALL OUTSTANDING DEBTS
 AND OBLIGATIONS TO THE COMMISSION AND A  PLAN  PROPOSING  THE  ORDER  IN
 WHICH  SUCH  DEBTS  AND  OBLIGATIONS  SHALL BE SATISFIED. THE COMMISSION
 SHALL APPROVE OR MODIFY SUCH PLAN. ONCE ALL DEBTS  AND  OBLIGATIONS  ARE
 SATISFIED  OR ALL AVAILABLE FUNDS HAVE BEEN EXHAUSTED, AND ANY REMAINING
 ASSETS ARE DISTRIBUTED, SUCH CORPORATION SHALL  BE  TERMINATED  FOR  ALL
 PURPOSES.   SUCH CORPORATION MAY USE THE FOLLOWING TO SATISFY ITS EXIST-
 ING DEBTS AND OBLIGATIONS:
   (A) IN ACCORDANCE WITH SUBDIVISION FOUR OF SECTION FIVE  HUNDRED  NINE
 OF  THIS  ARTICLE,  ANY  REMAINING  MONEY  IN SUCH CORPORATION'S CAPITAL
 RESERVE FUND, AFTER USE OF SUCH FUNDS FOR PAYMENT OF  THE  PRINCIPAL  OF
 BONDS,  INTEREST ON SUCH BONDS AND THE PAYMENT OF ANY REDEMPTION PREMIUM
 REQUIRED, AS SET FORTH IN SUCH SECTION; AND
   (B) IN ACCORDANCE WITH SUBDIVISION FOUR OF SECTION FIVE HUNDRED NINE-A
 OF THIS ARTICLE, FUNDS FROM ITS CAPITAL ACQUISITION FUND.
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   § 2. Paragraph c of subdivision 1 of section 509 of the racing,  pari-
 mutuel  wagering and breeding law, as amended by chapter 243 of the laws
 of 2020, is amended and a  new  subdivision  4  is  added,  to  read  as
 follows:
   c.  Any other moneys that may be made available to the corporation for
 the purpose of such capital reserve fund from any other source or sourc-
 es. All moneys held in the capital reserve fund, except as [hereinafter]
 provided IN THIS PARAGRAPH AND IN  SUBDIVISION  FOUR  OF  THIS  SECTION,
 shall  be  used  solely for the payment of the principal of bonds of the
 corporation, the payment of interest on such bonds, or  the  payment  of
 any  redemption premium required to be paid when such bonds are redeemed
 prior to maturity;  provided,  however,  that  moneys  in  such  capital
 reserve fund shall not be withdrawn therefrom at any time in such amount
 as  would reduce the amount of such fund to less than the maximum amount
 of principal and interest maturing and becoming due  in  any  succeeding
 fiscal  year  of  the  corporation  on all bonds of the corporation then
 outstanding, except for the purpose of paying principal of and  interest
 on  such  bonds of the corporation maturing and becoming due and for the
 payment of which other moneys of the corporation are not available.  Any
 income  or interest earned by, or increment to, the capital reserve fund
 due to the investment thereof may  be  transferred  to  other  funds  or
 accounts  to  the  extent  it  does not reduce the amount of the capital
 reserve fund below the maximum amount of principal and interest maturing
 and becoming due in any such succeeding fiscal year on all bonds of  the
 corporation then outstanding.
   4.  UPON THE TERMINATION OF CATSKILL REGIONAL OFF-TRACK BETTING CORPO-
 RATION PURSUANT TO SECTION FIVE  HUNDRED  TWO-A  OF  THIS  ARTICLE,  THE
 REMAINDER  OF  THE  CORPORATION'S CAPITAL RESERVE FUND, AFTER SUCH FUNDS
 ARE USED FOR THE PURPOSES SET FORTH IN PARAGRAPH C OF SUBDIVISION ONE OF
 THIS SECTION, SHALL BE USED TO PAY OTHER OBLIGATIONS, DEBTS AND  LIABIL-
 ITIES  OF  THE  CORPORATION  PURSUANT  TO  THE  COMMISSION-APPROVED PLAN
 DESCRIBED IN SUBDIVISION TWO OF SECTION FIVE HUNDRED TWO-A OF THIS ARTI-
 CLE.
   § 3. Section 509-a of the racing, pari-mutuel  wagering  and  breeding
 law is amended by adding a new subdivision 4 to read as follows:
   4.  AS  OF  APRIL  FIRST, TWO THOUSAND TWENTY-THREE, CATSKILL REGIONAL
 OFF-TRACK BETTING CORPORATION MAY USE ANY REMAINING MONEY IN ITS CAPITAL
 ACQUISITION FUND TO PAY OFF ANY OUTSTANDING  DEBTS  AND  OBLIGATIONS  IN
 ACCORDANCE  WITH  THE  COMMISSION-APPROVED PLAN DESCRIBED IN SUBDIVISION
 TWO OF SECTION FIVE HUNDRED TWO-A OF THIS ARTICLE. THE USE OF SUCH MONEY
 SHALL BE SUBJECT TO THE APPROVAL OF THE COMMISSION AND SHALL NOT BE USED
 TO PAY THE WAGES AND BENEFITS OF EMPLOYEES OF SUCH CORPORATION UNTIL ALL
 OTHER DEBTS AND OBLIGATIONS HAVE BEEN SATISFIED. ANY MONEY REMAINING  IN
 THE  FUND  AFTER  SUCH  DEBTS AND OBLIGATIONS HAVE BEEN PAID UPON TERMI-
 NATION OF SUCH CORPORATION SHALL  BE  DISTRIBUTED  TO  THE  COUNTIES  IN
 ACCORDANCE WITH LAW.
   §  4. Section 521 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 9 to read as follows:
   9. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE TO THE  CONTRA-
 RY,  A  COUNTY  FOR  WHOSE  BENEFIT  CATSKILL REGIONAL OFF-TRACK BETTING
 CORPORATION HAD BEEN ESTABLISHED MAY ENTER INTO  AN  AGREEMENT  WITH  AN
 EXISTING  OFF-TRACK  BETTING  CORPORATION  FROM  A  DIFFERENT  REGION TO
 PROVIDE THE SERVICES AUTHORIZED UNDER THIS ARTICLE WITHIN SUCH COUNTY.
   § 5. This act shall take effect immediately.
 
                                  PART AA
 S. 4009--A                         62                         A. 3009--A
 
   Section 1. Subdivision 2 of section 509-a of the  racing,  pari-mutuel
 wagering and breeding law, as amended by section 1 of part DD of chapter
 59 of the laws of 2022, is amended to read as follows:
   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 thirty-
 first, two thousand twenty-three, 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 established pursuant to
 this section, and twenty-three percent of the funds, not to exceed  four
 hundred  forty thousand dollars, in the Capital off-track betting corpo-
 ration's capital acquisition fund established pursuant to this  section,
 shall  be  available  to  such  off-track  betting  corporations for the
 purposes of statutory obligations, payroll, and  expenditures  necessary
 to accept authorized wagers.
   c.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW OR REGULATION TO THE
 CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-THREE TO  MARCH  THIRTY-
 FIRST,  TWO THOUSAND TWENTY-FOUR, 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 BE AVAILABLE TO SUCH OFF-TRACK  BETTING  CORPORATION
 FOR  THE  PURPOSES  OF  STATUTORY OBLIGATIONS, PAYROLL, AND EXPENDITURES
 NECESSARY TO ACCEPT AUTHORIZED WAGERS.
   D. Prior to a corporation being able to utilize the  funds  authorized
 by  [paragraph]  PARAGRAPHS b AND C of this subdivision, the corporation
 must submit an expenditure plan to the  gaming  commission  for  review.
 Such  plan  shall  include  the  corporation's  outstanding liabilities,
 projected revenue for the upcoming year, a detailed explanation  of  how
 the  funds  will be used, and any other information determined necessary
 by the commission. Upon review, the commission will make a determination
 as to whether access to the funds is needed and warranted.
   § 2. This act shall take effect immediately.
 
                                  PART BB
 
   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 EE of chapter 59 of the laws of 2022,  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
 S. 4009--A                         63                         A. 3009--A
 
 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-three] TWENTY-FOUR; 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-three] TWENTY-FOUR; 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 EE of chapter 59 of the laws of 2022,  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-three]  TWENTY-FOUR,  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
 S. 4009--A                         64                         A. 3009--A
 
 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  EE  of  chapter  59 of the laws of 2022, 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-three]  TWENTY-FOUR  and  on  any day
 regardless 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-three] TWENTY-FOUR. 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 EE of  chapter  59  of
 the laws of 2022, 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-three] TWENTY-FOUR. 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  EE  of  chapter  59 of the laws of 2022, 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-three]  TWENTY-FOUR.  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
 S. 4009--A                         65                         A. 3009--A
 
 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 EE of chapter
 59 of the laws of 2022, 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-two]  TWENTY-THREE,  when  a  franchised  corporation   is
 conducting  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 EE of chapter 59 of the
 laws of 2022, 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,  [2023]  2024;  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  EE of chapter 59 of the laws of 2022, 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, [2023] 2024; 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
 EE of chapter 59 of the laws of 2022, 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. 4009--A                         66                         A. 3009--A
 
 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-three] TWENTY-FOUR, 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-three]  TWENTY-FOUR,  such payment
 shall be seven-tenths of one percent of  regular,  multiple  and  exotic
 pools.
   § 10. This act shall take effect immediately.
 
                                  PART CC
 
   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 FEDERAL S corporation [subject to tax under this article
 for which an election is in effect pursuant to] REQUIRED TO  FILE  AS  A
 NEW YORK S CORPORATION PURSUANT TO subsection (a) of section six hundred
 sixty  of this chapter for such year, AND any such year shall be denomi-
 nated a "New York S year", [and such election  shall  be  denominated  a
 S. 4009--A                         67                         A. 3009--A

 "New York S election"] UNLESS THE CORPORATION IS TREATED AS A NEW YORK C
 CORPORATION  FOR  SUCH  YEAR UNDER SUBSECTION (B) OF SECTION SIX HUNDRED
 SIXTY OF THIS CHAPTER. 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] CORPORATION 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 denominated 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  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-B. The term "QSSS" means a corporation which is a qualified subchap-
 ter  S  subsidiary  as defined in subparagraph (B) of paragraph three of
 subsection (b) of section thirteen hundred  sixty-one  of  the  internal
 revenue code. [The term "exempt QSSS" means a QSSS exempt from tax under
 this  article  as  provided in paragraph (k) of subdivision nine of this
 section, or a QSSS described in subclause (i) of clause (B) of  subpara-
 graph  two of paragraph (k) of subdivision nine of this section, wherein
 the parent corporation of the QSSS is subject to tax under this article,
 and the assets, liabilities, income  and  deductions  of  the  QSSS  are
 treated  as the assets, liabilities, income and deductions of the parent
 corporation. Where a QSSS is an exempt QSSS, then for all purposes under
 this article] WHEN THE PARENT CORPORATION OF THE QSSS IS A  NEW  YORK  S
 CORPORATION:
   (a)  the  assets,  liabilities, income, deductions, property, payroll,
 receipts, capital, credits, and all other tax attributes and elements of
 economic activity of the QSSS shall be deemed to be those of the  parent
 corporation,
   (b)  the stocks, bonds and other securities issued by, and any indebt-
 edness from, the QSSS shall not be investment or business capital of the
 parent corporation,
   (c) transactions between the parent corporation and the QSSS,  includ-
 ing  the  payment  of  interest  and  dividends, shall not be taken into
 account, [and]
   (d) general executive officers of the  QSSS  shall  be  deemed  to  be
 general executive officers of the parent corporation, AND
   (E) THE QSSS SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE.
   §  3. Paragraph (k) of subdivision 9 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:
   (k)  QSSS.  (1)  [New  York S corporation. In the case of a New York S
 corporation which is the parent of a qualified subchapter  S  subsidiary
 (QSSS) with respect to a taxable year:
   (A) where the QSSS is not an excluded corporation,
   (i)  in  determining the entire net income of such parent corporation,
 all assets, liabilities, income and deductions  of  the  QSSS  shall  be
 treated  as  assets,  liabilities,  income  and deductions of the parent
 corporation, and
   (ii) the QSSS shall be exempt from all taxes imposed by this  article,
 and
 S. 4009--A                         68                         A. 3009--A

   (B)  where  the QSSS is an excluded corporation, the entire net income
 of the parent corporation shall be determined as  if  the  federal  QSSS
 election had not been made.
   (2)]  New  York  C corporation. In the case of a FEDERAL S CORPORATION
 THAT IS A New York C corporation [which  is]  UNDER  SUBSECTION  (B)  OF
 SECTION  SIX  HUNDRED  SIXTY OF THIS CHAPTER AND IS the parent of a QSSS
 with respect to a taxable year:
   (A) where the QSSS is a taxpayer,
   (i) in determining the entire net income of such  parent  corporation,
 all  assets,  liabilities,  income  and  deductions of the QSSS shall be
 treated as assets, liabilities, income  and  deductions  of  the  parent
 corporation, and
   (ii)  the QSSS shall be exempt from all taxes imposed by this article,
 and
   (B) where the QSSS is not a taxpayer,
   (i) if the QSSS is not an excluded corporation, the parent corporation
 may make a QSSS inclusion election to include all  assets,  liabilities,
 income  and  deductions  of  the QSSS as assets, liabilities, income and
 deductions of the parent corporation, and
   (ii) in the absence of such election, or where the QSSS is an excluded
 corporation, the entire net income of the parent  corporation  shall  be
 determined as if the federal QSSS election had not been made.
   [(3)  Non-New  York  S  corporation  not excluded. In the case of an S
 corporation which is not a taxpayer and not an excluded corporation, and
 which is the parent of a QSSS which is a taxpayer, the  shareholders  of
 the parent corporation shall be entitled to make the New York S election
 under subsection (a) of section six hundred sixty of this chapter.
   (A)  For  any  taxable  year for which such election is in effect, the
 parent corporation shall be subject to tax under this article as  a  New
 York S corporation, and the provisions of clause (A) of subparagraph one
 of this paragraph shall apply.
   (B) For any taxable year for which such election is not in effect, the
 QSSS shall be a New York C corporation, and the entire net income of the
 QSSS  shall  be  determined as if the federal QSSS election had not been
 made. For purposes of such determination, the taxable year of the parent
 corporation shall constitute the taxable year of  the  QSSS,  excluding,
 however, any portion of such year during which the QSSS is not a taxpay-
 er.
   (4)  S  corporation excluded. In the case of an S corporation which is
 an excluded corporation and which is the parent of a  QSSS  which  is  a
 taxpayer,  the QSSS shall be a New York C corporation and the provisions
 of clause (B) of subparagraph three of this paragraph shall apply.
   (5)] (2) Excluded corporation. The term "excluded corporation" means a
 corporation subject to  tax  under  sections  one  hundred  eighty-three
 through  one  hundred  eighty-six, inclusive, or article thirty-three of
 this chapter, or a foreign corporation not taxable by this state  which,
 if  it  were taxable, would be subject to tax under any of such sections
 or article.
   [(6)] (3) Taxpayer. For purposes of this paragraph, the term  "taxpay-
 er"  means  a parent corporation or QSSS subject to tax under this arti-
 cle, determined without regard to the provisions of this paragraph.
   [(7)] (4) QSSS inclusion election. The election under subclause (i) of
 clause (B) of subparagraph [two] ONE of this paragraph shall  be  effec-
 tive  for the taxable year for which made and for all succeeding taxable
 years of the corporation until such election is terminated. An  election
 S. 4009--A                         69                         A. 3009--A
 
 or  termination  shall  be  made  on such form and in such manner as the
 commissioner may prescribe by regulation or instruction.
   § 4. Subparagraph (A) 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, is amended to read as follows:
   (A) In the case of a shareholder of an S corporation, (i)  [where  the
 election  provided for in] EXCEPT FOR WHEN SUCH S CORPORATION IS TREATED
 AS A NEW YORK C CORPORATION UNDER subsection [(a)] (B)  of  section  six
 hundred  sixty of this chapter [is in effect with respect to such corpo-
 ration], there shall be added  to  federal  unrelated  business  taxable
 income an amount equal to the shareholder's pro rata share of the corpo-
 ration'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] S CORPORATION IS TREATED AS A  NEW  YORK  C
 CORPORATION  UNDER  SUBSECTION  (B) OF SECTION SIX HUNDRED SIXTY OF THIS
 CHAPTER, there shall be subtracted from federal unrelated business taxa-
 ble 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] AN 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.
   §  5. 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 OF THIS ARTICLE:
   (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] AN S termination year, subparagraph
 (A) of this paragraph shall apply to the amount of reductions for  taxes
 determined under subsection (s) of this section.
   §  6. Paragraph 19 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:
   (19) In the case of a shareholder of an S corporation (A)  where  [the
 election provided for in]  SUCH S CORPORATION IS TREATED AS A NEW YORK C
 CORPORATION UNDER subsection [(a)] (B) of section six hundred sixty [has
 not  been  made  with  respect to such corporation] OF THIS ARTICLE, any
 item of loss or deduction of the corporation included in  federal  gross
 income  pursuant  to  section thirteen hundred sixty-six of the internal
 revenue code, and (B) in the case of [a New York] AN S termination year,
 subparagraph (A) of this paragraph shall apply to the amounts of loss or
 deduction determined under subsection (s) of this section.
   § 7. Paragraph 20 of subsection (b) of section 612 of the tax law,  as
 amended  by  chapter  606  of  the  laws  of 1984, is amended to read as
 follows:
 S. 4009--A                         70                         A. 3009--A
 
   (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 (A) FOR  TAX  YEARS  BEGINNING  BEFORE
 JANUARY  FIRST,  TWO THOUSAND TWENTY-FOUR, because the election provided
 for in subsection (a) of section six hundred sixty OF THIS  ARTICLE  had
 not been made, OR (B) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST,
 TWO THOUSAND TWENTY-FOUR, BECAUSE THE S CORPORATION FILED A RETURN UNDER
 ARTICLE NINE-A OF THIS CHAPTER PURSUANT TO SUBSECTION (B) OF SECTION SIX
 HUNDRED  SIXTY  OF  THIS  ARTICLE.  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  arti-
 cle.
   § 8.  Paragraph 22 of subsection (c) 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:
   (22)  In  the case of a shareholder of an S corporation (A) where [the
 election provided for in] SUCH S CORPORATION IS TREATED AS A NEW YORK  C
 CORPORATION UNDER subsection [(a)] (B) of section six hundred sixty [has
 not  been  made  with  respect to such corporation] OF THIS ARTICLE, any
 item of income of the  corporation  included  in  federal  gross  income
 pursuant  to  section thirteen hundred sixty-six of the internal revenue
 code, and
   (B) in the case of [a New York] AN S  termination  year,  subparagraph
 (A)  of  this  paragraph shall apply to the amounts of income determined
 under subsection (s) of this section.
   § 9. The section heading and paragraph 1 of subsection (s) of  section
 612  of  the  tax law, as amended by chapter 760 of the laws of 1992, is
 amended to read as follows:
   (s) [New York] S termination year. (1) General. In the case of [a  New
 York]  AN  S  termination  year, the amount of any item of S corporation
 income,  loss  and  deduction  included  in  the  shareholder's  federal
 adjusted  gross  income  and  any  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 accordance
 with  the  treatment  provided  in  paragraph  two  or  three  of   this
 subsection.
   §  10. Paragraph 6 of subsection (c) of section 615 of the tax law, as
 added by chapter 606 of the laws of 1984, subparagraph (B) as amended by
 chapter 190 of the laws of 1990, is amended to read as follows:
   (6) in the case of a shareholder of an S corporation
   (A) where [the election provided for in] SUCH S CORPORATION IS TREATED
 AS A NEW YORK C CORPORATION UNDER subsection [(a)] (B)  of  section  six
 hundred  sixty  [has not been made] OF THIS ARTICLE, S corporation items
 of deduction included in federal itemized deductions, and
   (B) in the case of [a New York] AN S termination year, [the portion of
 such items assigned to the period beginning  on  the  day  the  election
 ceases  to  be effective, as] THE MODIFICATION UNDER SUBPARAGRAPH (A) OF
 THIS PARAGRAPH SHALL BE determined under subsection (s) of  section  six
 hundred twelve OF THIS PART.
 S. 4009--A                         71                         A. 3009--A
 
   § 11. Subparagraph (C) of paragraph 1 of subsection (b) of section 631
 of  the  tax  law,  as  amended  by  chapter 586 of the laws of 1999, is
 amended to read as follows:
   (C)  in  the  case  of  a  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], the ownership of shares
 issued by such corporation, to the extent determined under  section  six
 hundred thirty-two of this [article] PART; or
   §  12.  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.
   § 13. 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] A NEW YORK S corporation [where the  election  provided  for  in
 subsection  (a)  of section six hundred sixty] AS DEFINED IN SUBDIVISION
 ONE-A OF SECTION TWO HUNDRED EIGHT of [this article is in  effect]  THIS
 CHAPTER,  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] A NEW YORK S corporation [where the election provided for in
 subsection (a) of section six hundred sixty] AS DEFINED  IN  SUBDIVISION
 ONE-A  OF  SECTION TWO HUNDRED EIGHT of [this article is in effect] THIS
 CHAPTER, 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
 S. 4009--A                         72                         A. 3009--A
 
 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.
   § 14. 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 subsection (a)  of  section  six  hundred  sixty  is  in
 effect]  TREATED  AS  A NEW YORK S CORPORATION AS DEFINED IN SUBDIVISION
 ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER shall make  a  return
 for  the  taxable  year  setting  forth  all  items  of income, loss and
 deduction and such other pertinent information 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] A NEW  YORK
 S  corporation [for which the election provided for in subsection (a) of
 section six hundred sixty of this part  is  in  effect]  AS  DEFINED  IN
 SUBDIVISION  ONE-A  OF  SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, 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 corporations, and which has any income  derived  from  New
 York  sources,  determined  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  partner's,  member's or shareholder's distributive share or pro
 rata share of the entity income derived from New  York  sources,  multi-
 plied  by  the highest rate of tax prescribed by section six hundred one
 of this article for the taxable year of any partner,  member  or  share-
 holder  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 corporation 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.
   §  15.  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)
 S. 4009--A                         73                         A. 3009--A
 
 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, EXCEPT FOR ELIGIBLE S CORPORATIONS TREATED AS NEW YORK  C
 CORPORATIONS  UNDER  SUBSECTION (B) OF THIS SECTION, 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 thirteen 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 corpo-
 ration have so elected.] An eligible S  corporation  is  (i)  [an  S]  A
 corporation  [which] 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 THAT is subject to tax under article nine-A of
 this  chapter,  or (ii) [an S] A corporation [which] 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 THAT IS NOT
 SUBJECT TO TAX UNDER ARTICLE NINE-A OF  THIS  CHAPTER,  OR  AN  EXCLUDED
 CORPORATION, AND 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 shareholders 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.    EXCEPT  AS  PROVIDED  IN
 SUBSECTION  (B) OF THIS SECTION, AN ELIGIBLE S CORPORATION IS A NEW YORK
 S CORPORATION.
   (b)  [Requirements  of  election]  TREATMENT  OF  QUALIFIED  NEW  YORK
 MANUFACTURERS  AS  NEW YORK C CORPORATIONS.  [An election] AN ELIGIBLE S
 CORPORATION THAT MEETS THE REQUIREMENTS OF SUBPARAGRAPH  (VI)  OF  PARA-
 GRAPH  (A) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER
 TO BE A QUALIFIED NEW YORK MANUFACTURER MAY BE TREATED AS A NEW  YORK  C
 CORPORATION  SUBJECT TO TAX UNDER ARTICLE NINE-A OF THIS CHAPTER. TREAT-
 MENT under THIS subsection [(a) of this section] AS A NEW YORK C  CORPO-
 RATION shall be made on such form and in such manner as the [tax commis-
 sion] COMMISSIONER may prescribe by regulation or instruction.
   (1)  [When  made]  TIMING.    [An  election]  TO BE TREATED under THIS
 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
   (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
 S. 4009--A                         74                         A. 3009--A

 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.] AS A NEW YORK C CORPORATION FOR A  TAXABLE  YEAR,  THE  CORPO-
 RATION  SHALL  FILE  A  REPORT AS A NEW YORK C CORPORATION UNDER ARTICLE
 NINE-A OF THIS CHAPTER FOR SUCH YEAR. SUCH TREATMENT SHALL BE  EFFECTIVE
 AS OF THE FIRST DAY OF THE TAXABLE YEAR COVERED BY SUCH REPORT.
   (c)  Termination.  [An  election]  (1) TREATMENT OF A FEDERAL S CORPO-
 RATION AS A NEW YORK S CORPORATION UNDER SUBSECTION (A) OF THIS SECTION,
 AND TREATMENT OF A FEDERAL S CORPORATION AS A  NEW  YORK  C  CORPORATION
 under subsection [(a)] (B) of this section shall cease to be effective
   [(1)]  on  the  day  an  election  to be an S corporation ceases to be
 effective 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-
 S. 4009--A                         75                         A. 3009--A

 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] AND, IN SUCH CASE, THE  CORPORATION  SHALL
 BE  TREATED  AS  A  NEW  YORK C CORPORATION SUBJECT TO TAX UNDER ARTICLE
 NINE-A OF THIS CHAPTER.
   (2) TREATMENT OF A FEDERAL S CORPORATION AS A NEW YORK  C  CORPORATION
 UNDER  SUBSECTION (B) OF THIS SECTION SHALL CEASE TO BE EFFECTIVE IF THE
 CORPORATION NO LONGER MEETS THE REQUIREMENTS TO BE CONSIDERED  A  QUALI-
 FIED  NEW  YORK MANUFACTURER UNDER SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF
 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER FOR THE TAXA-
 BLE YEAR, AND IN SUCH CASE THE CORPORATION SHALL BE  TREATED  AS  A  NEW
 YORK S CORPORATION SUBJECT TO SUBSECTION (A) OF THIS SECTION.
   (d)  [New  York]  S termination year. In the case of [a New York] AN 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.] QUALIFIED SUBCHAPTER S
 SUBSIDIARIES ("QSSS"). IF A NEW YORK 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.
   (f)  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-
 S. 4009--A                         76                         A. 3009--A
 
 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,
   (3) then] such corporation shall be treated as a  New  York  S  corpo-
 ration,  SUBJECT  TO  SUBSECTION  (A) OF THIS SECTION, during [such] THE
 year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED EXCEPT  IF  THE
 ELIGIBLE  S  CORPORATION  IS  TREATED  AS A NEW YORK C CORPORATION UNDER
 SUBSECTION (B) OF THIS SECTION.
   (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)]  RULES RELATED TO CHANGE IN STATUS. (1) NET OPERATING LOSSES. ANY
 NET OPERATING LOSS CARRYFORWARD THAT OTHERWISE WOULD HAVE  BEEN  ALLOWED
 UNDER  SUBPARAGRAPH  (IX) OF PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION
 TWO HUNDRED TEN OF THIS CHAPTER  FOR  A  NEW  YORK  C  CORPORATION  THAT
 BECOMES A NEW YORK S CORPORATION SHALL BE HELD IN ABEYANCE AND BE AVAIL-
 ABLE TO SUCH TAXPAYER IF SUCH TAXPAYER IS TREATED AS A NEW YORK C CORPO-
 RATION  BECAUSE ITS ELECTION TO BE A FEDERAL S CORPORATION IS TERMINATED
 OR BY OPERATION OF SUBSECTION (B) OF THIS SECTION. HOWEVER, THE  TAXPAY-
 ER'S  YEARS AS A NEW YORK S CORPORATION SHALL BE COUNTED FOR PURPOSES OF
 COMPUTING ANY TIME PERIOD APPLICABLE TO THE ALLOWANCE OF ANY NET OPERAT-
 ING LOSS.
   (2) CREDIT CARRYFORWARDS. ANY CARRYFORWARDS OF CREDITS  ALLOWED  UNDER
 SECTION  TWO  HUNDRED TEN-B OF THIS CHAPTER FOR A NEW YORK C CORPORATION
 THAT BECOMES A NEW YORK S CORPORATION SHALL BE HELD IN ABEYANCE  AND  BE
 AVAILABLE  TO  SUCH TAXPAYER IF SUCH TAXPAYER IS TREATED AS A NEW YORK C
 CORPORATION BECAUSE ITS ELECTION TO BE A FEDERAL S CORPORATION IS TERMI-
 NATED OR BY OPERATION OF SUBSECTION (B) OF THIS  SECTION.  HOWEVER,  THE
 TAXPAYER'S  YEARS  AS  A  NEW  YORK  S  CORPORATION SHALL BE COUNTED FOR
 S. 4009--A                         77                         A. 3009--A
 
 PURPOSES OF COMPUTING ANY TIME PERIOD APPLICABLE TO THE ALLOWANCE OF ANY
 CREDIT CARRYFORWARD.
   (3)  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.
   (H) EXCLUDED CORPORATION.  FOR PURPOSES OF THIS  SECTION  AN  EXCLUDED
 CORPORATION  SHALL BE AS DEFINED IN PARAGRAPH (K) OF SUBDIVISION NINE OF
 SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
   § 16. Transition  rules.  Any  prior  net  operating  loss  conversion
 subtraction  that  otherwise  would have been allowed under subparagraph
 (viii) of paragraph (a) of subdivision one of section two hundred ten of
 the tax law for the taxable years beginning on or after January 1, 2024,
 to any taxpayer that was a New York C corporation  for  a  taxable  year
 beginning  on  or after January 1, 2023, and before January 1, 2024, and
 that becomes a New York S corporation for a taxable year beginning on or
 after January 1, 2024, as a result of the amendments made by  this  act,
 shall  be  held  in  abeyance  and be available to such taxpayer if such
 taxpayer is treated as a New York C corporation because its election  to
 be  a  federal S corporation is terminated or by operation of subsection
 (b) of section six hundred sixty of the  tax law. However,  the  taxpay-
 er's  years as a New York S corporation shall be counted for purposes of
 computing the twenty-year time period specified  in  subclause  four  of
 clause (B) of subparagraph (viii) of paragraph (a) of subdivision one of
 section  two  hundred  ten of the tax law applicable to the allowance of
 the prior net operating loss conversion subtraction.
   § 17. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning on or after January 1, 2024.
   § 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 CC of this act shall be
 as specifically set forth in the last section of such Parts.

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4009--B
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article 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  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT to amend the tax law, in relation to providing the  authority  to
   abate  interest for taxpayers impacted by declared disasters (Part A);
   to amend the tax law, in relation  to  clarifying  the  definition  of
   limited  partner  for the purposes of the metropolitan commuter trans-
   portation mobility tax (Part B); to amend the tax law, in relation  to
   making  the  investment tax credit refundable for eligible farmers for
   five years (Part C); to amend the tax law, in relation to  the  empire
   state film production credit and the empire state film post-production
   credit (Part D); to amend the tax law, in relation to the abatement of
   penalties for underpayment of estimated tax by a corporation (Part E);
   to  amend  the  economic  development law, in relation to the COVID-19
   capital costs tax  credit  program  (Part  F);  to  amend  the  social
   services law and the tax law, in relation to creating a tax credit for
   the  creation  and  expansion of child care (Part G); to amend the tax
   law, in relation to extending the authorization of any city  having  a
   population  of  one  million or more to provide a biotechnology credit
   against the general corporation tax, unincorporated business tax,  and
   banking  corporation  tax of such city (Part H); to amend the tax law,
   in relation to extending the current corporate tax rates (Subpart  A);
   to  amend  the tax law, in relation to extending the rehabilitation of
   historic properties tax credit (Subpart B); to amend the tax  law,  in
   relation to extending the empire state commercial production tax cred-
   it  for  five  years (Subpart C); to amend the tax law, in relation to
   extending provisions of law relating to the grade No.  6  heating  oil
   conversion  tax  credit  (Subpart D); 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  effec-
   tiveness  thereof;  and  to  amend the tax law, in relation to the New
   York city  musical  and  theatrical  production  tax  credit  (Subpart
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD12574-03-3
 S. 4009--B                          2
 
   E)(Part  I);  to  amend  the  tax law, in relation to making technical
   corrections to the credit for companies who provide transportation  to
   individuals  with  disabilities  (Subpart A); to amend the tax law, in
   relation  to  eligibility  for the brownfield redevelopment tax credit
   (Subpart B); and to amend the tax law, in relation to the pass-through
   entity tax and city  pass-through  entity  tax  and  making  technical
   corrections  thereto (Subpart C) (Part J); intentionally omitted (Part
   K); to amend chapter 540 of the laws of 1992, amending the real  prop-
   erty  tax  law  relating  to  oil  and gas charges, in relation to the
   effectiveness thereof (Part L); intentionally omitted (Part M); inten-
   tionally omitted (Part N); intentionally omitted (Part O);  to  repeal
   certain  provisions of the tax law, relating to eliminating congestion
   surcharge registration requirements (Part P); to amend the tax law, in
   relation to the payment of tax on increased quantities of  motor  fuel
   and  Diesel  motor  fuel on which the taxes pursuant to articles 12-A,
   13-A and 28 were not previously paid (Part Q); to amend the  tax  law,
   in  relation  to  extending  the sales tax exemption for certain sales
   made through vending machines for those operated  by  business  enter-
   prise program participants (Part R); to amend the tax law, in relation
   to an increase in the rate of tax on cigarettes (Part S); to amend the
   tax  law,  in  relation  to the revocation of certain certificates and
   civil penalties for refusal of  a  cigarette  and  tobacco  inspection
   (Part  T); intentionally omitted (Part U); intentionally omitted (Part
   V); to amend the state finance law,  in  relation  to  clarifying  the
   deposit timeframe for moneys deposited by the commissioner of taxation
   and  finance  (Part W); to amend the tax law, in relation to requiring
   the New York Racing Association, Inc. to enter into a repayment agree-
   ment with the state of New York for the repayment of funds provided by
   the state for the renovation of Belmont Park (Part X);  to  amend  the
   tax  law,  in  relation  to a keno style lottery game (Part Y); inten-
   tionally omitted (Part Z); to amend the racing,  pari-mutuel  wagering
   and breeding law, in relation to the utilization of funds in the Capi-
   tal  region  off-track betting corporations' capital acquisition funds
   (Part AA); 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, simul-
   casting 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  BB);  intentionally  omitted (Part CC); to
   amend the tax law and the administrative code of the city of New York,
   in relation to treatment of gains from qualified opportunity zones  in
   calculating taxable income (Part DD); to amend the racing, pari-mutuel
   wagering  and  breeding  law, in relation to prohibiting regional off-
   track betting corporations from providing  items  of  value  exceeding
   fifteen dollars to certain associates of the corporation (Part EE); to
   amend  the  racing, pari-mutuel wagering and breeding law, in relation
   to prohibiting off-track betting corporation vehicles from being  used
   as  take-home  vehicles  (Part  FF);  to amend the racing, pari-mutuel
   wagering and breeding law, in relation to the membership of the  board
   of  directors  of  the  western regional off-track betting corporation
 S. 4009--B                          3
 
   (Part GG); to amend the tax law, in relation to residential solar  tax
   credits  (Part  HH); to repeal article 20-B of the tax law relating to
   the excise tax on medical cannabis; and to repeal section 89-h of  the
   state  finance  law  relating to the medical cannabis trust fund (Part
   II); to amend the tax law, in relation to eligibility for  the  empire
   state  child  credit  (Part  JJ);  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 KK); to
   amend the tax law, in relation to adjusting certain income  tax  rates
   (Part  LL);  and  to amend the tax law, in relation to eligibility for
   the earned income tax credit and the enhanced earned income tax credit
   (Part MM)
 
   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 2023-2024
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified as Parts A through MM. 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.  The opening paragraph of paragraph a of subdivision twen-
 ty-eighth of section 171 of the tax law, as amended by  chapter  451  of
 the laws of 2022, is amended to read as follows:
   [In  the case of a taxpayer who is determined for federal tax purposes
 under the provisions of] HAVE THE AUTHORITY TO  POSTPONE  CERTAIN  DEAD-
 LINES  FOR  A  PERIOD  OF UP TO NINETY DAYS, OR LONGER WHEN NECESSARY TO
 ALIGN WITH RELIEF PROVIDED BY THE INTERNAL REVENUE SERVICE  PURSUANT  TO
 section seven thousand five hundred eight-A of the internal revenue code
 [to  be  affected  by a presidentially declared disaster, or who], FOR A
 TAXPAYER WHO is determined [under regulations promulgated by the commis-
 sioner] to be affected by a presidentially declared  disaster  or  by  a
 disaster  emergency declared by the governor[, have authority to provide
 that a period of up to ninety days, or a longer period when necessary to
 align with relief that has already been provided by the Internal Revenue
 Service under the authority to postpone  certain  deadlines  in  section
 seven  thousand five hundred eight-A of the internal revenue code, may].
 ANY EXTENSION PERIOD PROVIDED PURSUANT TO THE AUTHORITY IN THIS SUBDIVI-
 SION SHALL be disregarded in determining under the tax law, or  under  a
 law  enacted  pursuant to the authority of the tax law or former article
 2-E of the general city law where administered by the  commissioner,  in
 respect  of  any  tax  liability (including any interest, penalty, addi-
 tional amount, or addition to the tax) of such taxpayer:
   § 2. Paragraph c of subdivision twenty-eighth of section  171  of  the
 tax  law,  as added by chapter 8 of the laws of 1998, is amended to read
 as follows:
 S. 4009--B                          4

   c. DEFINITIONS. 1. Presidentially declared disaster. For  purposes  of
 this  subdivision, the term "presidentially declared disaster" means any
 disaster which, with respect to an area, resulted in a subsequent deter-
 mination by the president of the United States that such  area  warrants
 assistance by the federal government under the disaster relief and emer-
 gency assistance act.
   2.  TAXPAYER.  FOR  PURPOSES  OF THIS SUBDIVISION, THE TERM "TAXPAYER"
 MEANS ANY PERSON OR ENTITY REQUIRED TO FILE A RETURN OR REMIT ANY TAX TO
 THE COMMISSIONER PURSUANT TO THIS CHAPTER.
   § 3. Subdivision twenty-eighth of  section  171  of  the  tax  law  is
 amended by adding a new paragraph d to read as follows:
   D.  WHERE  A  TAXPAYER  WHO,  PURSUANT  TO SECTION SEVEN THOUSAND FIVE
 HUNDRED EIGHT-A OF THE INTERNAL REVENUE CODE, IS DETERMINED FOR  FEDERAL
 TAX  PURPOSES  TO  BE AFFECTED BY A PRESIDENTIALLY DECLARED DISASTER, OR
 WHO IS DETERMINED TO BE AFFECTED BY A DISASTER EMERGENCY DECLARED BY THE
 GOVERNOR, BUT THE COMMISSIONER HAS NOT POSTPONED A TAX DEADLINE PURSUANT
 TO THE AUTHORITY IN  PARAGRAPH A OF THIS SUBDIVISION DUE TO SUCH  DISAS-
 TER,  THE  COMMISSIONER MAY ABATE ANY AMOUNT OF INTEREST FROM THE UNDER-
 PAYMENT OF ANY TAX ADMINISTERED BY THE COMMISSIONER UNDER  THIS  CHAPTER
 THAT ACCRUED FOR THE PERIOD DURING WHICH THE TAXPAYER WAS UNABLE TO MEET
 SUCH DEADLINE DUE TO DIRECT IMPACTS OF THE DISASTER.
   § 4. This act shall take effect immediately.
 
                                  PART B

   Section  1.  Subsection (e) of section 800 of the tax law, as added by
 section 1 of part C of chapter 25 of the laws of  2009,  is  amended  to
 read as follows:
   (e)  Net earnings from self-employment. Net earnings from self-employ-
 ment has the same meaning as in section 1402  of  the  internal  revenue
 code,  PROVIDED,  HOWEVER,  THAT FOR PURPOSES OF DETERMINING WHETHER THE
 EXCLUSION PURSUANT TO PARAGRAPH 13 OF SUBSECTION (A) OF SECTION 1402  OF
 THE INTERNAL REVENUE CODE APPLIES, AN INDIVIDUAL SHALL NOT BE CONSIDERED
 A  LIMITED PARTNER IF THE INDIVIDUAL, DIRECTLY OR INDIRECTLY, TAKES PART
 IN THE CONTROL, OR PARTICIPATES IN THE MANAGEMENT OR OPERATIONS  OF  THE
 PARTNERSHIP  SUCH THAT THE INDIVIDUAL IS NOT A PASSIVE INVESTOR, REGARD-
 LESS OF THE INDIVIDUAL'S TITLE OR CHARACTERIZATION IN A  PARTNERSHIP  OR
 OPERATING AGREEMENT.
   § 2. This act shall take effect immediately.
 
                                  PART C
 
   Section  1. Paragraph (d) of subdivision 1 of section 210-B of the tax
 law, as amended by section 31 of part T of chapter 59  of  the  laws  of
 2015, is amended to read as follows:
   (d) Except as otherwise provided in this paragraph, the credit allowed
 under this subdivision for any taxable year shall not reduce the tax due
 for such year to less than the fixed dollar minimum amount prescribed in
 paragraph  (d)  of  subdivision  one  of section two hundred ten of this
 article. However, if the amount of credit allowable under this  subdivi-
 sion  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  allowed  for a taxable year commencing prior to
 January first, nineteen hundred eighty-seven and not deductible in  such
 taxable  year may be carried over to the following year or years and may
 be deducted from the taxpayer's tax for such year or  years  but  in  no
 S. 4009--B                          5
 
 event  shall  such credit be carried over to taxable years commencing on
 or after January first, two thousand  two,  and  any  amount  of  credit
 allowed  for  a taxable year commencing on or after January first, nine-
 teen hundred eighty-seven and not deductible in such year may be carried
 over  to  the fifteen taxable years next following such taxable year and
 may be deducted from the taxpayer's tax for such year or years.  In lieu
 of such carryover, (I) any such taxpayer which qualifies as a new  busi-
 ness  under  paragraph  (f)  of  this subdivision may elect to treat the
 amount of such carryover as an overpayment of  tax  to  be  credited  or
 refunded  in  accordance  with  the  provisions  of section one thousand
 eighty-six of this chapter, AND (II) ANY SUCH TAXPAYER THAT IS AN ELIGI-
 BLE FARMER, AS DEFINED IN SUBDIVISION ELEVEN OF THIS  SECTION,  MAY  FOR
 TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT,
 ELECT  TO TREAT THE AMOUNT OF SUCH CARRYOVER 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.
   § 2. Paragraph 5 of subsection (a) of section 606 of the tax  law,  as
 amended  by  chapter  170  of  the  laws  of 1994, is amended to read as
 follows:
   (5) If the amount of credit allowable under this  subsection  for  any
 taxable  year  shall exceed the taxpayer's tax for such year, the excess
 allowed for a taxable year commencing prior to January  first,  nineteen
 hundred  eighty-seven may be carried over to the following year or years
 and may be deducted from the taxpayer's tax for such year or years,  but
 in  no event shall such credit be carried over to taxable years commenc-
 ing on or after January first, nineteen hundred  ninety-seven,  and  any
 amount of credit allowed for a taxable year commencing on or after Janu-
 ary first, nineteen hundred eighty-seven and not deductible in such year
 may be carried over to the ten taxable years next following such taxable
 year and may be deducted from the taxpayer's tax for such year or years.
 In  lieu  of carrying over any such excess, (A) a taxpayer who qualifies
 as an owner of a new business for purposes  of  paragraph  ten  of  this
 subsection may, at [his] THE TAXPAYER'S option, receive such excess as a
 refund,  AND  (B)  A  TAXPAYER  THAT IS AN ELIGIBLE FARMER AS DEFINED IN
 SUBSECTION (N) OF THIS SECTION MAY, AT THE TAXPAYER'S OPTION, FOR  TAXA-
 BLE  YEARS  BEGINNING  BEFORE  JANUARY  FIRST, TWO THOUSAND TWENTY-EIGHT
 RECEIVE SUCH EXCESS AS A REFUND. Any refund paid pursuant to this  para-
 graph  shall  be  deemed  to  be  a  refund  of an overpayment of tax as
 provided in section six hundred eighty-six of  this  article,  provided,
 however, that no interest shall be paid thereon.
   §  3.  This  act  shall  take effect immediately, and apply to taxable
 years beginning on or after January 1, 2023.
 
                                  PART D
 
   Section 1.  Paragraph 2 of subdivision (a) of section 24  of  the  tax
 law,  as  separately amended by sections 1 and 2 of part M of chapter 59
 of the laws of 2020, 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] THIRTY  percent,  and  the  qualified  production  costs  paid  or
 incurred  in  the production of a qualified film, provided that: (i) the
 qualified production costs (excluding post  production  costs)  paid  or
 incurred  which  are attributable to the use of tangible property or the
 S. 4009--B                          6
 
 performance of services at a qualified film production facility  in  the
 production  of  such qualified film equal or exceed seventy-five percent
 of the production  costs  (excluding  post  production  costs)  paid  or
 incurred  which  are attributable to the use of tangible property or the
 performance of services at any film production facility within and with-
 out the state in the production of such qualified film, and (ii)  except
 with  respect  to  a  qualified  independent  film production company or
 pilot, at least ten percent of the total principal photography  shooting
 days  spent  in the production of such qualified film must be spent at a
 qualified film production facility. However, if the qualified production
 costs (excluding post production costs) which are  attributable  to  the
 use  of  tangible property or the performance of services at a qualified
 film production facility in the production of  such  qualified  film  is
 less  than  three  million  dollars,  then  the portion of the qualified
 production costs attributable to the use of  tangible  property  or  the
 performance of services in the production of such qualified film outside
 of  a  qualified  film  production facility shall be allowed only if the
 shooting days spent in New York outside of a film production facility in
 the production of such  qualified  film  equal  or  exceed  seventy-five
 percent  of  the  total  shooting days spent within and without New York
 outside of a film production facility in the production of  such  quali-
 fied film. The credit shall be allowed for the taxable year in which the
 production  of such qualified film is completed. However, in the case of
 a qualified film that receives funds from additional pool 2,  no  credit
 shall be claimed before the later of (1) the taxable year the production
 of  the  qualified  film  is  complete,  or (2) the [first] taxable year
 [beginning immediately after the] THAT INCLUDES  THE  LAST  DAY  OF  THE
 allocation  year  for  which  the  film has been allocated credit by the
 [governor's office for motion  picture  and  television]  DEPARTMENT  OF
 ECONOMIC  development.  If  the  amount  of  the  credit is at least one
 million dollars but less than five million dollars, the credit shall  be
 claimed  over  a  two year period beginning in the first taxable year in
 which the credit may be claimed and in the next succeeding taxable year,
 with one-half of the amount of credit  allowed  being  claimed  in  each
 year.  If the amount of the credit is at least five million dollars, the
 credit shall be claimed over a three year period beginning in the  first
 taxable  year  in  which  the  credit may be claimed and in the next two
 succeeding taxable years, with one-third of the  amount  of  the  credit
 allowed being claimed in each year.
   §  2.  Paragraph 5 of subdivision (a) of section 24 of the tax law, as
 amended by section 2 of part M of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
   (5)  For the period two thousand fifteen through two thousand [twenty-
 nine] THIRTY-FOUR, in addition to the amount of  credit  established  in
 paragraph  two  of  this subdivision, FOR TAXABLE YEARS ON OR BEFORE TWO
 THOUSAND TWENTY-THREE 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 salaries paid  to
 individuals  directly  employed  (excluding  those  employed as writers,
 directors,  [music  directors]  COMPOSERS,  producers  and   performers,
 [including]  OTHER  THAN  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, AND FOR
 TAXABLE YEARS TWO THOUSAND TWENTY-FOUR THROUGH TWO THOUSAND  THIRTY-FOUR
 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
 S. 4009--B                          7
 
 PERCENT  AND  THE  QUALIFIED  PRODUCTION  COSTS  PAID OR INCURRED IN THE
 PRODUCTION OF THE QUALIFIED FILM, 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 cred-
 it, the services must be performed OR  THE  QUALIFIED  PRODUCTION  COSTS
 PAID OR INCURRED MUST BE IN THE PRODUCTION OF A QUALIFIED FILM 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, Mont-
 gomery, 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 paragraph shall be
 five million dollars each year during the period  two  thousand  fifteen
 through  two  thousand  [twenty-nine]  TWENTY-THREE  AND  TWENTY MILLION
 DOLLARS EACH YEAR DURING THE PERIOD TWO THOUSAND TWENTY-FOUR THROUGH TWO
 THOUSAND THIRTY-FOUR 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] DEPARTMENT OF ECONOMIC devel-
 opment 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  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 AGGREGATE AMOUNT PURSUANT TO THE AUTHORITY OF THIS PARAGRAPH FOR THE
 TAXABLE YEAR, the remainder shall be treated as part of the annual allo-
 cation 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  period  two
 thousand  fifteen  through  two  thousand [twenty-nine] TWENTY-THREE AND
 TWENTY MILLION DOLLARS IN ANY YEAR DURING THE PERIOD TWO THOUSAND  TWEN-
 TY-FOUR THROUGH TWO THOUSAND THIRTY-FOUR.
   § 2-a. Intentionally omitted.
   §  3.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
 added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
 amended to read as follows:
   (2)  "Production costs" means any costs for tangible property used and
 services performed directly and predominantly in the production (includ-
 ing  pre-production  and  post  production)   of   a   qualified   film.
 "Production  costs"  shall  not include (i) costs for a story, script or
 scenario to be used for a qualified film and (ii) wages or  salaries  or
 other  compensation  for writers, directors, [including music directors]
 COMPOSERS, producers and performers (other than background  actors  with
 no  scripted  lines). "Production costs" generally include technical and
 crew production costs, such as expenditures for film production  facili-
 ties,  or  any  part  thereof, props, makeup, wardrobe, film processing,
 camera, sound recording, set construction, lighting,  shooting,  editing
 and meals.
 S. 4009--B                          8
 
   § 4. Intentionally omitted.
   § 5. Intentionally omitted.
   §  6.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
 amended by section 3 of part M of chapter 59 of the  laws  of  2022,  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-nine]  TWENTY-THREE  AND  SEVEN  HUNDRED
 MILLION DOLLARS EACH YEAR STARTING IN TWO THOUSAND  TWENTY-FOUR  THROUGH
 TWO THOUSAND THIRTY-FOUR, 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  [twen-
 ty-nine and] TWENTY-THREE, AND FORTY-FIVE MILLIONS 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 TWENTY-FOUR THROUGH TWO THOUSAND THIRTY-FOUR.
 PROVIDED FURTHER, five million dollars of the annual allocation shall be
 made available for the television writers' and directors' fees and sala-
 ries credit pursuant to section twenty-four-b of this  article  in  each
 year  starting in two thousand twenty through two thousand [twenty-nine]
 THIRTY-FOUR. This amount shall be allocated by  the  [governor's  office
 for  motion  picture  and television] DEPARTMENT OF ECONOMIC 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]
 DEPARTMENT  OF ECONOMIC development must notify taxpayers of their allo-
 cation 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
 S. 4009--B                          9

 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 (1) the taxable year the production of the
 qualified film is complete, or (2) the taxable year [immediately follow-
 ing]  THAT  INCLUDES  THE  LAST DAY OF the allocation year for which the
 film has been allocated credit by  the  [governor's  office  for  motion
 picture and television] DEPARTMENT OF ECONOMIC development.
   §  7.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
 amended by section 4 of part M of chapter 59 of the  laws  of  2022,  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-nine]  TWENTY-THREE  AND  SEVEN  HUNDRED
 MILLION DOLLARS IN  EACH  YEAR  STARTING  IN  TWO  THOUSAND  TWENTY-FOUR
 THROUGH  TWO  THOUSAND  THIRTY-FOUR,  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 arti-
 cle 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-nine] TWENTY-THREE, AND FORTY-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 TWENTY-FOUR THROUGH TWO THOUSAND
 THIRTY-FOUR. This amount shall be allocated by  the  [governor's  office
 for  motion  picture  and television] DEPARTMENT OF ECONOMIC 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]
 DEPARTMENT  OF ECONOMIC development must notify taxpayers of their allo-
 cation 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
 S. 4009--B                         10
 
 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 (1) the taxable year the production of the
 qualified film is complete, or (2) the taxable year [immediately follow-
 ing] THAT INCLUDES THE LAST DAY OF the allocation  year  for  which  the
 film  has  been  allocated  credit  by the [governor's office for motion
 picture and television] DEPARTMENT OF ECONOMIC development.
   § 8. Paragraph 2 of subdivision (a) of section 31 of the tax  law,  as
 amended  by  section  5  of part M of chapter 59 of the laws of 2020, 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] THIRTY percent and the qualified post production costs paid in the
 production of a qualified film at a qualified post  production  facility
 located  within  the  metropolitan  commuter  transportation district as
 defined in section twelve hundred sixty-two of  the  public  authorities
 law  or  [thirty]  THIRTY-FIVE percent and the qualified post production
 costs paid in the production of a qualified film  at  a  qualified  post
 production facility located elsewhere in the state.
   §  9.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
 amended by section 6 of part M of chapter 59 of the  laws  of  2022,  is
 amended to read as follows:
   (6)  For the period two thousand fifteen through two thousand [twenty-
 nine] THIRTY-FOUR, in addition to the amount of  credit  established  in
 paragraph  two  of  this subdivision, FOR TAXABLE YEARS ON OR BEFORE TWO
 THOUSAND TWENTY-THREE 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 salaries paid  to
 individuals  directly  employed  (excluding  those  employed as writers,
 directors,  [music  directors]  COMPOSERS,  producers  and   performers,
 including  background  actors  with  no  scripted  lines)  for  services
 performed by those individuals, AND FOR TAXABLE YEARS TWO THOUSAND TWEN-
 TY-FOUR THROUGH TWO THOUSAND THIRTY-FOUR 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  QUALIFIED
 PRODUCTION  COSTS  PAID  OR  INCURRED IN THE PRODUCTION OF THE QUALIFIED
 FILM, 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   OR THE QUALIFIED
 PRODUCTION COSTS PAID OR INCURRED MUST BE IN THE PRODUCTION OF A  QUALI-
 FIED  FILM  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, Madi-
 son, 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 paragraph shall be five million dollars each year during the period
 two thousand fifteen through two thousand [twenty-nine] TWENTY-THREE AND
 TWENTY  MILLION DOLLARS EACH YEAR DURING THE PERIOD TWO THOUSAND TWENTY-
 FOUR THROUGH TWO THOUSAND THIRTY-FOUR  of  the  annual  allocation  made
 S. 4009--B                         11
 
 available  to  the  empire state film post production credit pursuant to
 paragraph four of subdivision (e) of section twenty-four of  this  arti-
 cle.  Such aggregate amount of credits shall be allocated by the [gover-
 nor's  office  for motion picture and television] DEPARTMENT OF ECONOMIC
 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  paragraph
 at  the  conclusion  of any year is less than [five million dollars] THE
 AGGREGATE AMOUNT PURSUANT TO THE AUTHORITY OF  THIS  PARAGRAPH  FOR  THE
 TAXABLE YEAR, the remainder shall be treated as part of the annual allo-
 cation  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 peri-
 od two thousand fifteen through two thousand [twenty-nine]  TWENTY-THREE
 AND  TWENTY  MILLION  DOLLARS IN ANY YEAR DURING THE PERIOD TWO THOUSAND
 TWENTY-FOUR THROUGH TWO THOUSAND THIRTY-FOUR.
   § 9-a. Paragraph 3 of subdivision (b) of section 24 of the tax law, as
 amended by section 5 of part F of chapter 59 of the  laws  of  2021,  is
 amended to read as follows:
   (3)  "Qualified  film"  means  a feature-length film, television film,
 relocated television production, television pilot or television  series,
 regardless  of the medium by means of which the film, pilot or series is
 created or conveyed. For the purposes of the  credit  provided  by  this
 section only, a "qualified film" whose majority of principal photography
 shooting  days in the production of the qualified film are shot in West-
 chester, Rockland, Nassau, or Suffolk county or any of the five New York
 City boroughs shall have a minimum budget  of  one  million  dollars.  A
 "qualified  film", whose majority of principal photography shooting days
 in the production of the qualified film are shot in any other county  of
 the state than those listed in the preceding sentence shall have a mini-
 mum budget of two hundred fifty thousand dollars. "Qualified film" shall
 not  include:  (i)  a documentary film, news or current affairs program,
 interview or  talk  program,  "how-to"  (i.e.,  instructional)  film  or
 program, film or program consisting primarily of stock footage, sporting
 event  or  sporting  program, game show, award ceremony, film or program
 intended primarily for industrial, corporate or institutional end-users,
 fundraising film or program, daytime drama (i.e., daytime "soap opera"),
 commercials, music videos or "reality" program; (ii)  a  production  for
 which records are required under section 2257 of title 18, United States
 code,  to be maintained with respect to any performer in such production
 (reporting of books, films,  etc.  with  respect  to  sexually  explicit
 conduct); or (iii) other than a relocated television production, a tele-
 vision  series  commonly  known as variety entertainment, variety sketch
 and variety talk, i.e., a program with components of improvisational  or
 scripted  content (monologues, sketches, interviews), either exclusively
 or in combination with other  entertainment  elements  such  as  musical
 performances,  dancing,  cooking,  crafts, pranks, stunts, and games and
 which may be further defined  in  regulations  of  the  commissioner  of
 economic  development.  However,  a qualified film shall include a tele-
 S. 4009--B                         12
 
 vision series as described in subparagraph (iii) of this paragraph  only
 if an application for such series has been deemed conditionally eligible
 for the tax credit under this section prior to April first, two thousand
 twenty,  such  series  remains in continuous production for each season,
 and an annual application for each season of such series is  continually
 submitted  for  such  series  after  April first, two thousand twenty. A
 SERIES THAT CHANGES THE TITLE OF THE SERIES AND/OR  THE  PRINCIPAL  CAST
 PRIOR TO MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, SHALL BE CONSID-
 ERED TO REMAIN IN CONTINUOUS PRODUCTION FOR EACH SEASON, NOTWITHSTANDING
 A CHANGE IN THE TITLE AND/OR PRINCIPAL CAST OF SUCH SERIES, PROVIDED THE
 SERIES  FILMS  AT THE SAME LOCATION AS PRIOR SEASONS, IS PRODUCED BY THE
 SAME ENTITY, AND RETAINS AT LEAST EIGHTY PERCENT OF THE STAFF  FROM  THE
 PRIOR SEASON.
   §  10. This act shall take effect immediately for initial applications
 received on or after such effective date; provided,  however,  that  the
 amendments  to  paragraph  4 of subdivision (e) of section 24 of the tax
 law made by section six of this act shall take effect on the  same  date
 and  in the same manner as section 6 of chapter 683 of the laws of 2019,
 as amended, takes effect.
 
                                  PART E
 
   Section 1. Section 1085 of the tax law is  amended  by  adding  a  new
 subsection (e-1) to read as follows:
   (E-1)  WAIVER  OF ADDITION FOR UNDERPAYMENT OF ESTIMATED TAX. NO ADDI-
 TION TO TAX SHALL BE IMPOSED UNDER SUBSECTION (C) OF THIS  SECTION  WITH
 RESPECT  TO  ANY  UNDERPAYMENT TO THE EXTENT THE COMMISSIONER DETERMINES
 THAT BY REASON OF CASUALTY, DISASTER OR OTHER UNUSUAL CIRCUMSTANCES  THE
 IMPOSITION  OF  SUCH  ADDITION  TO  TAX WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section 1. Subdivision 4 of section 484 of  the  economic  development
 law,  as added by section 1 of part E of chapter 59 of the laws of 2022,
 is amended to read as follows:
   4. The business entity must submit its application by  [March  thirty-
 first] SEPTEMBER THIRTIETH, two thousand twenty-three.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section 1. Article 6 of the social services law is amended by adding a
 new title 1-A to read as follows:
                                 TITLE 1-A
           CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM
 SECTION 394.   SHORT TITLE.
         394-A. DEFINITIONS.
         394-B. ELIGIBILITY CRITERIA.
         394-C. APPLICATION AND APPROVAL PROCESS.
         394-D. CHILD CARE CREATION AND EXPANSION TAX CREDIT.
         394-E. ALLOCATION OF CREDIT.
         394-F. POWERS AND DUTIES OF THE COMMISSIONER.
         394-G. MAINTENANCE OF RECORDS.
 S. 4009--B                         13
 
   §  394. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 "CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM ACT".
   § 394-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
   1.  "CERTIFICATE  OF  TAX  CREDIT" SHALL MEAN THE DOCUMENT ISSUED TO A
 BUSINESS ENTITY BY THE OFFICE AFTER THE OFFICE  HAS  VERIFIED  THAT  THE
 BUSINESS  ENTITY  HAS  MET  ALL  APPLICABLE ELIGIBILITY CRITERIA IN THIS
 TITLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX  CREDIT
 UNDER  THIS  TITLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION
 THREE HUNDRED NINETY-FOUR-D OF THIS TITLE, AND THE SERVICE YEAR.
   2. "CHILD CARE PROGRAM" SHALL MEAN  A  CHILD  DAY  CARE  FOR  WHICH  A
 LICENSE  OR  REGISTRATION TO OPERATE SUCH PROGRAM HAS BEEN ISSUED BY THE
 OFFICE PURSUANT TO SECTION THREE HUNDRED NINETY OF THIS ARTICLE.
   3. "CHILD CARE RATE" SHALL MEAN THE WEEKLY CHILD CARE  SUBSIDY  MARKET
 RATES,  BASED  ON THE EIGHTIETH PERCENTILE OF THE 2021-22 NEW YORK STATE
 CHILD CARE MARKET RATE SURVEY, FOR INFANT AND TODDLER CARE PROVIDED BY A
 LICENSED OR REGISTERED CHILD CARE PROGRAM,  AS  REFLECTED  IN  THE  2022
 CHILD  CARE MARKET RATE SURVEY REPORT PUBLISHED BY THE OFFICE IN COMPLI-
 ANCE WITH SECTION 98.45 OF TITLE FORTY-FIVE OF THE CODE OF FEDERAL REGU-
 LATIONS.
   4. "CHILD CARE SEATS" SHALL MEAN 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  LICENSE  OR  REGISTRATION
 ISSUED FOR SUCH PROGRAM BY THE OFFICE.
   5.  "CREATES CHILD CARE" SHALL MEAN THE MAKING AVAILABLE OF CHILD CARE
 SEATS IN A CHILD CARE PROGRAM BY A BUSINESS ENTITY, DIRECTLY OR  THROUGH
 A  THIRD-PARTY,  FOR EMPLOYEES OF SUCH BUSINESS ENTITY, WHERE SUCH CHILD
 CARE PROGRAM WAS NOT AVAILABLE PRIOR TO APRIL FIRST, TWO THOUSAND  TWEN-
 TY-THREE,  PROVIDED  THAT  THE  COSTS IMPOSED ON SUCH EMPLOYEES FOR SUCH
 CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE RATE.
   6. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE  OFFICE  OF  CHILDREN
 AND FAMILY SERVICES.
   7. "EXPANDS CHILD CARE" SHALL MEAN THE INCREASE IN THE NUMBER OF CHILD
 CARE  SEATS IN A CHILD CARE PROGRAM MADE AVAILABLE BY A BUSINESS ENTITY,
 DIRECTLY OR THROUGH A THIRD PARTY, FOR EMPLOYEES OF SUCH BUSINESS  ENTI-
 TY,  PROVIDED  THAT  SUCH  INCREASE REQUIRES A NEW OR AMENDED LICENSE OR
 REGISTRATION ISSUED BY THE OFFICE  PURSUANT  TO  SECTION  THREE  HUNDRED
 NINETY  OF  THIS  ARTICLE  ON OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-
 THREE, AND, PROVIDED FURTHER, THAT THE COSTS IMPOSED ON  SUCH  EMPLOYEES
 FOR  SUCH  CHILD  CARE  PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD
 CARE RATE.
   8. "OCCUPIED" SHALL MEAN, FOR EACH SERVICE YEAR IN WHICH A CHILD  CARE
 PROGRAM IS IN OPERATION, THE AVERAGE DAILY NUMBER OF CHILDREN IN ATTEND-
 ANCE ON THE PREMISES OF SUCH CHILD CARE PROGRAM.
   9. "OFFICE" SHALL MEAN THE OFFICE OF CHILDREN AND FAMILY SERVICES.
   10.  "SERVICE  YEAR"  SHALL  MEAN  THE TWELVE-MONTH PERIOD, OR PORTION
 THEREOF, COMMENCING ON JANUARY FIRST  AND  ENDING  ON  DECEMBER  THIRTY-
 FIRST.
   §  394-B.  ELIGIBILITY  CRITERIA.  1.  TO BE ELIGIBLE FOR A TAX CREDIT
 UNDER THE CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM, A  BUSI-
 NESS ENTITY MUST:
   (A)  BE A BUSINESS ENTITY THAT IS REQUIRED TO FILE A TAX RETURN PURSU-
 ANT TO ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE TAX LAW;
   (B) BE A CHILD CARE PROGRAM, OR CONTRACT WITH SUCH CHILD CARE PROGRAM,
 AS DEFINED IN THIS TITLE THAT IS  LICENSED  OR  REGISTERED  PURSUANT  TO
 SECTION THREE HUNDRED NINETY OF THIS ARTICLE;
 S. 4009--B                         14
 
   (C)  CREATE  OR  EXPAND  CHILD CARE SEATS, DIRECTLY OR THROUGH A THIRD
 PARTY, FOR THE EMPLOYEES OF SUCH  BUSINESS  ENTITY  ON  OR  AFTER  APRIL
 FIRST,  TWO THOUSAND TWENTY-THREE AND BEFORE JANUARY FIRST, TWO THOUSAND
 TWENTY-FIVE;
   (D) OPERATE A BUSINESS LOCATION IN NEW YORK STATE;
   (E)  BE  IN  SUBSTANTIAL COMPLIANCE WITH ANY CHILD CARE LICENSING LAWS
 AND REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR  OR  OTHER  LAWS
 AND REGULATIONS AS DETERMINED BY THE COMMISSIONER; AND
   (F)  NOT  OWE  PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE
 BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED  BIND-
 ING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY.
   §  394-C.  APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
 SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER  BY  THE
 THIRTY-FIRST OF JANUARY AFTER THE END OF THE SERVICE YEAR.
   2.  THE  COMMISSIONER SHALL ESTABLISH PROCEDURES FOR A BUSINESS ENTITY
 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) PROVIDE THE LICENSE OR REGISTRATION ISSUED TO THE BUSINESS ENTITY,
 DIRECTLY OR THROUGH A THIRD PARTY, BY THE OFFICE TO OPERATE A CHILD CARE
 PROGRAM  INDICATING  THE  NUMBER  OF CHILD CARE SEATS CREATED OR, IN THE
 CASE OF A CHILD CARE PROGRAM THAT HAS EXPERIENCED AN EXPANSION OF  CHILD
 CARE SEATS, THE LICENSE OR REGISTRATION ISSUED BY THE OFFICE DEMONSTRAT-
 ING SUCH EXPANSION;
   (C)  PROVIDE  EVIDENCE  IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
 SIONER ESTABLISHING:
   (I) THE TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED DURING THE
 SERVICE YEAR;
   (II) OF SUCH TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED,  THE
 NUMBER  OF  INFANT CHILD CARE SEATS THAT WERE OCCUPIED AND THE NUMBER OF
 TODDLER CHILD CARE SEATS THAT WERE OCCUPIED;
   (III) THAT, TO THE EXTENT THE BUSINESS ENTITY, DIRECTLY OR  THROUGH  A
 THIRD  PARTY, 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; AND
   (IV)  THAT  THE  COSTS  IMPOSED ON THE BUSINESS ENTITY'S EMPLOYEES FOR
 SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF  THE  CHILD  CARE
 RATE.
   (D) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
 BUSINESS ENTITY'S TAX INFORMATION RELEVANT TO THE ADMINISTRATION OF THIS
 TITLE  WITH  THE  OFFICE. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF
 THIS TITLE SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE
 STATE FREEDOM OF INFORMATION LAW;
   (E) ALLOW THE OFFICE AND ITS AGENTS ACCESS TO ANY AND  ALL  BOOKS  AND
 RECORDS THE OFFICE MAY REQUIRE TO MONITOR COMPLIANCE; AND
   (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE OFFICE
 RELEVANT TO THIS TITLE.
   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 TITLE, THE OFFICE MAY ISSUE TO THAT BUSINESS ENTITY  A
 CERTIFICATE OF TAX CREDIT, WHICH SHALL SET FORTH THE AMOUNT OF THE CRED-
 IT THAT MAY BE CLAIMED AND THE SERVICE YEAR.
   §  394-D.  CHILD  CARE CREATION AND EXPANSION TAX CREDIT. ALLOWANCE OF
 CREDIT. 1. A BUSINESS ENTITY IN THE CHILD CARE  CREATION  AND  EXPANSION
 TAX  CREDIT  PROGRAM  THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION
 S. 4009--B                         15
 
 THREE HUNDRED NINETY-FOUR-B OF THIS TITLE MAY BE  ELIGIBLE  TO  CLAIM  A
 CREDIT  FOR  THE  PORTION  OF  THE  SERVICE YEAR IN WHICH THE CHILD CARE
 PROGRAM WAS IN OPERATION, EQUAL TO THE SUM OF: (A) 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 (B) 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.  NOTWITHSTAND-
 ING THE PRECEDING SENTENCE, A CREDIT 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 SECTION THREE HUNDRED NINETY-FOUR-E OF THIS TITLE.
   2.  THE  CREDIT  SHALL  BE ALLOWED AS PROVIDED IN SECTION FORTY-EIGHT,
 SUBDIVISION FIFTY-NINE OF SECTION TWO HUNDRED TEN-B, SUBSECTION (OOO) OF
 SECTION SIX HUNDRED SIX AND SUBDIVISION (EE) OF SECTION FIFTEEN  HUNDRED
 ELEVEN OF THE TAX LAW.
   §  394-E.  ALLOCATION  OF  CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED UNDER THIS TITLE, SUBDIVISION FIFTY-NINE OF SECTION TWO  HUNDRED
 TEN-B,  SUBSECTION (OOO) OF SECTION SIX HUNDRED SIX AND SUBDIVISION (EE)
 OF SECTION FIFTEEN ELEVEN OF THE TAX LAW SHALL  BE  TWENTY-FIVE  MILLION
 DOLLARS  EACH  YEAR  DURING THE PERIOD TWO THOUSAND TWENTY-THREE AND TWO
 THOUSAND TWENTY-FOUR. SUCH AGGREGATE AMOUNT OF CREDITS  SHALL  BE  ALLO-
 CATED  BY  THE  OFFICE  ON A PRO RATA BASIS TO EACH BUSINESS ENTITY THAT
 DEMONSTRATES ELIGIBILITY PURSUANT TO SECTION THREE HUNDRED NINETY-FOUR-B
 OF THIS TITLE.
   § 394-F. POWERS AND DUTIES OF THE COMMISSIONER.  1.  THE  COMMISSIONER
 MAY  PROMULGATE  REGULATIONS  ESTABLISHING  AN  APPLICATION  PROCESS AND
 ELIGIBILITY CRITERIA, WHICH WILL BE APPLIED CONSISTENT WITH THE PURPOSES
 OF THIS TITLE SO AS NOT TO EXCEED THE ANNUAL  CAP  ON  TAX  CREDITS  SET
 FORTH IN THIS TITLE, THAT, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRA-
 RY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMER-
 GENCY 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
 BUSINESS ENTITY APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
 BUSINESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIRE-
 MENTS SET FORTH IN SECTION THREE HUNDRED NINETY-FOUR-B OF THIS TITLE.
   § 394-G. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN
 THE  PROGRAM  SHALL  KEEP ALL RELEVANT RECORDS FOR THE DURATION OF THEIR
 PARTICIPATION IN THE PROGRAM FOR AT LEAST THREE YEARS.
   § 2. The tax law is amended by adding a new  section  48  to  read  as
 follows:
   §  48.  CHILD CARE CREATION AND EXPANSION TAX CREDIT. (A) ALLOWANCE OF
 CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE  NINE-A,  TWENTY-TWO  OR
 THIRTY-THREE OF THIS CHAPTER 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 THREE HUNDRED NINETY-FOUR-D OF THE SOCIAL SERVICES
 LAW AND SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES THE LAST  DAY
 OF  THE  SERVICE  YEAR  FOR  WHICH  THE CREDIT IS CALCULATED. NO COST OR
 EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS INCLUDED AS PART OF THE
 S. 4009--B                         16
 
 CALCULATION OF THIS CREDIT SHALL BE THE BASIS OF ANY  OTHER  TAX  CREDIT
 ALLOWED UNDER THIS CHAPTER.
   (B) ELIGIBILITY. TO BE ELIGIBLE FOR THE CHILD CARE CREATION AND EXPAN-
 SION  TAX  CREDIT,  THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF
 TAX CREDIT BY THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  PURSUANT  TO
 SECTION  THREE  HUNDRED  NINETY-FOUR-C  OF  THE  SOCIAL  SERVICES LAW. A
 TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABIL-
 ITY 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 OFFICE OF CHILDREN AND FAMILY SERVICES.
   (D)  INFORMATION  SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP-
 TER, EMPLOYEES OF THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  AND  THE
 DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE:
   (1)  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
   (2)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
 SUBMITTED TO THE DEPARTMENT. EXCEPT AS PROVIDED IN PARAGRAPH ONE OF THIS
 SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE  OFFICE  OF  CHILDREN
 AND  FAMILY  SERVICES AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLO-
 SURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW.
   (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX  CREDIT  ISSUED  BY  THE
 OFFICE OF CHILDREN AND FAMILY SERVICES UNDER TITLE 1-A OF ARTICLE SIX OF
 THE  SOCIAL SERVICES LAW IS REVOKED BY SUCH OFFICE, 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 59;
   (2) ARTICLE 22: SECTION 606, SUBSECTION (OOO);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 59 to read as follows:
   59. CHILD CARE CREATION AND EXPANSION TAX  CREDIT.  (A)  ALLOWANCE  OF
 CREDIT.    A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS
 PROVIDED IN SECTION FORTY-EIGHT  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.
 S. 4009--B                         17
 
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (ooo) to read as follows:
   (OOO)  CHILD  CARE CREATION AND EXPANSION TAX CREDIT. (1) ALLOWANCE OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN SECTION FORTY-EIGHT 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 (l) to read as follows:
 (L) CHILD CARE CREATION AND          AMOUNT OF CREDIT
 EXPANSION TAX CREDIT UNDER           UNDER SUBDIVISION 59
 SUBSECTION (OOO)                     OF SECTION TWO HUNDRED
                                      TEN-B
   §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ee) to read as follows:
   (EE) CHILD CARE CREATION AND EXPANSION TAX CREDIT.  (1)  ALLOWANCE  OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN  SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
 FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
 TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
 APPLICABLE.  HOWEVER, IF THE AMOUNT OF THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE 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 ONE THOUSAND
 EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE  PAID
 THEREON.
   § 7. This act shall take effect immediately.
 
                                  PART H
 
   Section 1. Paragraph 5 of subdivision (d) of section 1201-a of the tax
 law,  as  amended by chapter 260 of the laws of 2015, is amended to read
 as follows:
   5. Any local law adopted pursuant to this subdivision may provide  for
 a  credit  as  authorized  by  this  subdivision  for a maximum of three
 consecutive calendar years, provided, however, that any such credit  may
 not  apply to taxable years beginning before January first, two thousand
 [ten] TWENTY-THREE or beginning on or after January first, two  thousand
 [nineteen] TWENTY-SIX.
   § 2. This act shall take effect immediately.
 
                                  PART I
 
   Section  1.  This Part enacts into law major components of legislation
 relating to extending various taxes and tax credits. Each  component  is
 wholly  contained  within  a Subpart identified as Subparts A through E.
 S. 4009--B                         18
 
 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 Part sets forth  the  general  effective
 date of this Part.
 
                                 SUBPART A
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 1 of part HHH of chap-
 ter 59 of the laws of 2021, is amended to read as follows:
   For  taxable  years  beginning  before  January  first,  two  thousand
 sixteen,  the  amount  prescribed by this paragraph shall be computed at
 the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
 income  base. For taxable years beginning on or after January first, two
 thousand sixteen, the amount prescribed by this paragraph shall  be  six
 and one-half percent of the taxpayer's business income base. For taxable
 years  beginning  on or after January first, two thousand twenty-one and
 before January first, two thousand [twenty-four]  TWENTY-SEVEN  for  any
 taxpayer  with  a business income base for the taxable year of more than
 five million dollars, the amount prescribed by this paragraph  shall  be
 seven  and  one-quarter  percent of the taxpayer's business income base.
 The taxpayer's business income  base  shall  mean  the  portion  of  the
 taxpayer's  business  income apportioned within the state as hereinafter
 provided. However, in the case of a small business taxpayer, as  defined
 in  paragraph  (f)  of  this  subdivision, the amount prescribed by this
 paragraph shall be computed pursuant to subparagraph (iv) of this  para-
 graph and in the case of a manufacturer, as defined in subparagraph (vi)
 of  this  paragraph,  the  amount  prescribed by this paragraph shall be
 computed pursuant to subparagraph (vi) of this paragraph,  and,  in  the
 case  of a qualified emerging technology company, as defined in subpara-
 graph (vii) of this paragraph, the amount prescribed by  this  paragraph
 shall be computed pursuant to subparagraph (vii) of this paragraph.
   §  2.  Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
 of the tax law, as amended by section 2 of part HHH of chapter 59 of the
 laws of 2021, is amended to read as follows:
   (1) (i) The amount prescribed by  this  paragraph  shall  be  computed
 at .15 percent for each dollar of the taxpayer's total business capital,
 or  the  portion  thereof  apportioned  within  the state as hereinafter
 provided for taxable years beginning before January first, two  thousand
 sixteen.    However, in the case of a cooperative housing corporation as
 defined in the internal revenue code, the applicable rate shall  be  .04
 percent  until  taxable  years  beginning on or after January first, two
 thousand twenty and zero percent for taxable years beginning on or after
 January first, two thousand twenty-one. The rate of tax  for  subsequent
 tax  years shall be as follows: .125 percent for taxable years beginning
 on or after January first,  two  thousand  sixteen  and  before  January
 first,  two thousand seventeen; .100 percent for taxable years beginning
 on or after January first, two thousand  seventeen  and  before  January
 first,  two  thousand eighteen; .075 percent for taxable years beginning
 on or after January first, two  thousand  eighteen  and  before  January
 first,  two  thousand nineteen; .050 percent for taxable years beginning
 on or after January first, two  thousand  nineteen  and  before  January
 S. 4009--B                         19
 
 first,  two thousand twenty; .025 percent for taxable years beginning on
 or after January first, two thousand twenty and  before  January  first,
 two  thousand  twenty-one;  and  .1875 percent for years beginning on or
 after  January  first, two thousand twenty-one and before January first,
 two thousand [twenty-four] TWENTY-SEVEN, and zero  percent  for  taxable
 years  beginning  on  or after January first, two thousand [twenty-four]
 TWENTY-SEVEN. Provided however, for taxable years beginning on or  after
 January  first,  two  thousand  twenty-one,  the rate of tax for a small
 business as defined in paragraph (f) of this subdivision shall  be  zero
 percent.  The rate of tax for a qualified New York manufacturer shall be
 .132 percent for taxable years beginning on or after January first,  two
 thousand  fifteen  and  before January first, two thousand sixteen, .106
 percent for taxable years beginning on or after January first, two thou-
 sand sixteen and before January  first,  two  thousand  seventeen,  .085
 percent for taxable years beginning on or after January first, two thou-
 sand  seventeen  and  before  January first, two thousand eighteen; .056
 percent for taxable years beginning on or after January first, two thou-
 sand eighteen and before January  first,  two  thousand  nineteen;  .038
 percent for taxable years beginning on or after January first, two thou-
 sand  nineteen  and  before  January  first,  two  thousand twenty; .019
 percent for taxable years beginning on or after January first, two thou-
 sand twenty and before January first, two thousand twenty-one; and  zero
 percent  for  years  beginning  on  or after January first, two thousand
 twenty-one. (ii) In no event shall the amount prescribed by  this  para-
 graph exceed three hundred fifty thousand dollars for qualified New York
 manufacturers and for all other taxpayers five million dollars.
   § 3. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subsection (oo) of
 section 606 of the tax law, as amended by section 1 of part CCC of chap-
 ter 59 of the laws of 2021, is amended 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, 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 cred-
 it 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, however, the credit shall not exceed five million dollars. For
 taxable  years  beginning on or after January first, two thousand [twen-
 ty-five] THIRTY, 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 thou-
 sand dollars.
 S. 4009--B                         20
 
   § 2. Subparagraph (i) of paragraph (a) of subdivision  26  of  section
 210-B  of the tax law, as amended by section 2 of part CCC of chapter 59
 of the laws of 2021, is amended to read as follows:
   (i)  For  taxable years beginning on or after January first, two thou-
 sand ten, and before January first, two thousand [twenty-five] THIRTY, 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, however, the credit shall not exceed
 five million dollars.
   §  3.  Clause (B) of subparagraph (ii) of paragraph (a) of subdivision
 26 of section 210-B of the tax law, as added by section 17 of part A  of
 chapter  59  of the laws of 2014, is redesignated as paragraph (a-1) and
 is amended to read as follows:
   (a-1) If the taxpayer is a partner in a partnership or  a  shareholder
 in  a  New York S corporation, then the credit caps imposed in [subpara-
 graph (A)] PARAGRAPH  (A)  of  this  [paragraph]  SUBDIVISION  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.
   § 4. Subparagraph (ii) of 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, is amended to read as follows:
   (ii) For taxable years beginning on or after January first, two  thou-
 sand [twenty-five] THIRTY, a taxpayer shall be allowed a credit as here-
 inafter  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  certified
 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.
   §  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 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,  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 cred-
 it  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, however, the credit shall not exceed five million dollars. For
 taxable years beginning on or after January first, two  thousand  [twen-
 S. 4009--B                         21

 ty-five]  THIRTY,  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.
   § 6. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section 1. Paragraph 1 of subdivision (a) of section  28  of  the  tax
 law,  as  amended  by section 1 of part AAA of chapter 59 of the laws of
 2019, is amended to read as follows:
   (1) A taxpayer which is a qualified commercial production company,  or
 which is a sole proprietor of a qualified commercial production company,
 and  which  is subject to tax under article nine-A or twenty-two of this
 chapter, shall be allowed a credit against such  tax,  pursuant  to  the
 provisions referenced in subdivision (c) of this section, to be computed
 as  provided in this section. Provided, however, to be eligible for such
 credit, at least seventy-five percent of the production costs (excluding
 post production costs) paid or incurred directly  and  predominantly  in
 the  actual  filming  or  recording  of the qualified commercial must be
 costs incurred in New York state. The tax  credit  allowed  pursuant  to
 this  section  shall  apply  to  taxable  years beginning before January
 first, two thousand [twenty-four] TWENTY-NINE.
   § 2. Paragraph (c) of subdivision 23 of section 210-B of the tax  law,
 as  amended  by  chapter  518 of the laws of 2018, is amended to read as
 follows:
   (c) Expiration of credit. The credit allowed  under  this  subdivision
 shall  not  be applicable to taxable years beginning on or after January
 first, two thousand [twenty-four] TWENTY-NINE.
   § 3. Paragraph 1 of subsection (jj) of section 606 of the tax law,  as
 amended  by  chapter  518  of  the  laws  of 2018, is amended to read as
 follows:
   (1) Allowance of credit. A taxpayer that is eligible pursuant  to  the
 provisions  of  section  twenty-eight of this chapter shall be allowed a
 credit to be computed as  provided  in  such  section  against  the  tax
 imposed by this article. The tax credit allowed pursuant to this section
 shall  apply  to taxable years beginning before January first, two thou-
 sand [twenty-four] TWENTY-NINE.
   § 4. This act shall take effect immediately.
 
                                 SUBPART D

   Section 1. Paragraph 1 of subdivision (a) of section  47  of  the  tax
 law,  as added by section 1 of part I of chapter 59 of the laws of 2022,
 is amended to read as follows:
   (1) Allowance  of  credit.  A  taxpayer  that  meets  the  eligibility
 requirements  of  subdivision  (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 heating 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
 S. 4009--B                         22
 
 located at a facility regulated pursuant to section 19-0302 or title ten
 of article seventeen of the environmental conservation law, paid by such
 taxpayer on or after January first, two thousand twenty-two  and  before
 [July]  JANUARY  first,  two  thousand [twenty-three] TWENTY-FOUR.   The
 credit cannot exceed five hundred thousand dollars per facility.
   § 2. This act shall take effect immediately.
 
                                 SUBPART E
 
   Section 1. 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
 establishing  the  New  York  city musical and theatrical production tax
 credit and establishing the New York state council on the arts  cultural
 program  fund,  as  amended  by section 7 of part F of chapter 59 of the
 laws of 2022, is amended to read as follows:
   § 6. This act shall take effect immediately;  provided  however,  that
 [section]  SECTIONS  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] 2026 and shall expire and be deemed repealed January 1, [2024]
 2026;  provided  further, however that the obligations under paragraph 3
 of subdivision (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] 2027.
   § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
 amended  by  section  1  of part F of chapter 59 of the laws of 2022, 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 prior
 to  January  first,  two  thousand  [twenty-three]  TWENTY-FIVE.    [For
 productions  whose  first  performance is 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 theat-
 rical production unless the New York city tourism economy has not suffi-
 ciently recovered, as determined by the department of economic  develop-
 ment  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 limit-
 ed 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.
   §  3.  Subparagraph  (i)  of paragraph 5 of subdivision (b) of section
 24-c of the tax law, as amended by section 2 of part F of chapter 59  of
 the laws of 2022, 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, September thirtieth, two thousand
 S. 4009--B                         23
 
 [twenty-three] TWENTY-FIVE or the date the qualified musical and  theat-
 rical production closes.
   §  4.    Subdivision  (c)  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:
   (c)  The  credit shall be allowed for the taxable year beginning on or
 after January first, two thousand twenty-one but before  January  first,
 two  thousand  [twenty-four]  TWENTY-SIX.    A  qualified  New York city
 musical and theatrical production company shall claim the credit in  the
 year in which its credit period ends.
   §  5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax
 law, paragraph 1 as amended by section 3 of part F of chapter 59 of  the
 laws of 2022, and paragraph 2 as amended by section 4 of part F of chap-
 ter 59 of the laws of 2022, are 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 [two] THREE
 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.
   (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 June  thirtieth,
 two thousand [twenty-three] TWENTY-FIVE.
   § 6. Paragraph 3 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:
   (3) "Qualified New York city production  facility"  means  a  facility
 located  within  the  city  of  New  York  (i)  in which live theatrical
 productions are or are intended to be  primarily  presented,  (ii)  that
 contains at least one stage, a seating capacity of [five] ONE hundred or
 more seats, and dressing rooms, storage areas, and other ancillary amen-
 ities necessary for the qualified musical and theatrical production, and
 (iii)  for which receipts attributable to ticket sales constitute seven-
 ty-five percent or more of gross receipts of the facility.
   § 7. This act shall take effect immediately; provided that the  amend-
 ments  to section 24-c of the tax law made by sections two, three, four,
 five and six of this act shall not affect the repeal of such section and
 shall be deemed repealed therewith.
   § 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-
 S. 4009--B                         24
 
 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 dates of Subparts A through E of this act shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART J

   Section 1. This act enacts into law major  components  of  legislation
 relating  to  taxation.  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. Paragraph (b) of subdivision 38 of section 210-B of the tax
 law,  as  amended  by  section  2 of part L of chapter 59 of the laws of
 2022, is amended to read as follows:
   (b) Definitions. The term "accessible by  individuals  with  disabili-
 ties"  shall,  for  the purposes of this subdivision, refer to a vehicle
 that complies with federal regulations promulgated pursuant to the Amer-
 icans with Disabilities Act applicable to vans under twenty-two feet  in
 length,  by the federal Department of Transportation, in Code of Federal
 Regulations, title 49, parts 37 and 38[, and by the federal Architecture
 and Transportation Barriers Compliance Board, in Code of  Federal  Regu-
 lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
 ty  Standards, Code of Federal Regulations, title 49, part [57] 571. The
 term "electric vehicle" shall, for the  purposes  of  this  subdivision,
 have  the  same  meaning as in section sixty-six-s of the public service
 law.
   § 2. Paragraph 2 of subsection (tt) of section 606 of the tax law,  as
 amended  by  section  4  of part L of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (2) Definitions. The term "accessible by  individuals  with  disabili-
 ties"  shall,  for  the  purposes of this subsection, refer to a vehicle
 that complies with federal regulations promulgated pursuant to the Amer-
 icans with Disabilities Act applicable to vans under twenty-two feet  in
 length,  by the federal Department of Transportation, in Code of Federal
 Regulations, title 49, parts 37 and 38[, and by the federal Architecture
 and Transportation Barriers Compliance Board, in Code of  Federal  Regu-
 lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
 ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571.
 The  term "electric vehicle" shall, for the purposes of this subsection,
 have the same meaning as in section sixty-six-s of  the  public  service
 law.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2023.
 
                                 SUBPART B
 S. 4009--B                         25
 
   Section  1.  Paragraph  2  of subdivision (b) of section 21 of the tax
 law, as amended by section 7 of part LL of chapter 58  of  the  laws  of
 2022, is amended to read as follows:
   (2)  Site  preparation  costs. The term "site preparation costs" shall
 mean all amounts properly chargeable to a  capital  account,  which  are
 paid  or  incurred  which  are  necessary to implement a site's investi-
 gation, remediation, or qualification for a certificate  of  completion,
 and shall include costs of: excavation; demolition; activities undertak-
 en  under the oversight of the department of labor or in accordance with
 standards established by the  department  of  health  to  remediate  and
 dispose  of  regulated materials including asbestos, lead or polychlori-
 nated biphenyls; environmental  consulting;  engineering;  legal  costs;
 transportation, disposal, treatment or containment of contaminated soil;
 remediation  measures  taken  to  address contaminated soil vapor; cover
 systems consistent with  applicable  regulations;  physical  support  of
 excavation;  dewatering  and  other work to facilitate or enable remedi-
 ation activities; sheeting,  shoring,  and  other  engineering  controls
 required  to prevent off-site migration of contamination from the quali-
 fied site or migrating onto the qualified site; and the costs  of  fenc-
 ing,  temporary  electric  wiring,  scaffolding, and security facilities
 until such time as the certificate of completion has been  issued.  Site
 preparation shall include all costs paid or incurred within sixty months
 after  the  last  day  of  the  tax  year  in  which  the certificate of
 completion is issued that are necessary for compliance with the  certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program  defined  in  such  certificate  of completion including but not
 limited to institutional controls,  engineering  controls,  an  approved
 site  management plan, and an environmental easement with respect to the
 qualified site; provided, however, with respect to  any  qualified  site
 for  which  [the  department  of environmental conservation has issued a
 notice to the taxpayer on or after July first, two thousand fifteen  but
 on  or  before  June  twenty-fourth,  two  thousand  twenty-one that its
 request for participation has been accepted  under  subdivision  six  of
 section  27-1407 of the environmental conservation law] A CERTIFICATE OF
 COMPLETION WAS ISSUED ON OR AFTER JULY FIRST, TWO THOUSAND  FIFTEEN  BUT
 ON  OR BEFORE JUNE TWENTY-FOURTH, TWO THOUSAND TWENTY-ONE, site prepara-
 tion shall include all costs paid or incurred within eighty-four  months
 after  the  last  day  of  the  tax  year  in  which  the certificate of
 completion is issued that are necessary for compliance with the  certif-
 icate of completion or subsequent modifications thereof, or the remedial
 program  defined  in  such  certificate  of completion including but not
 limited to institutional controls,  engineering  controls,  an  approved
 site  management plan, and an environmental easement with respect to the
 qualified site, PROVIDED, HOWEVER, WITH RESPECT TO  ANY  QUALIFIED  SITE
 LOCATED  IN CITIES WITH A POPULATION GREATER THAN TWO HUNDRED FIVE THOU-
 SAND AND LESS THAN TWO HUNDRED FIFTEEN THOUSAND IN COUNTIES WITH A POPU-
 LATION GREATER THAN ONE MILLION BUT LESS THAN ONE MILLION  TEN  THOUSAND
 BASED ON THE LATEST FEDERAL DECENNIAL CENSUS FOR WHICH THE DEPARTMENT OF
 ENVIRONMENTAL CONSERVATION HAS ISSUED A CERTIFICATE OF COMPLETION TO THE
 TAXPAYER ON OR AFTER MARCH TWENTIETH, TWO THOUSAND TEN AND BEFORE DECEM-
 BER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT COMPONENT SHALL BE
 ALLOWED  FOR UP TO ONE HUNDRED EIGHTY MONTHS AFTER THE DATE OF THE ISSU-
 ANCE OF SUCH CERTIFICATE OF COMPLETION.  Site preparation cost shall not
 include the costs of foundation systems that  exceed  the  cover  system
 requirements in the regulations applicable to the qualified site.
 S. 4009--B                         26
 
   §  2. Subparagraph (i) of paragraph 3 of subdivision (a) of section 21
 of the tax law, as amended by section 9 of part LL of chapter 58 of  the
 laws of 2022, is amended to read as follows:
   (i)  The  tangible  property  credit  component  shall be equal to the
 applicable percentage of the cost or other basis for federal income  tax
 purposes  of  tangible  personal  property  and other tangible property,
 including  buildings  and  structural  components  of  buildings,  which
 constitute qualified tangible property and may include any related party
 service  fee  paid; provided that in determining the cost or other basis
 of such property, the taxpayer shall exclude the acquisition cost of any
 item of property with respect to which a credit under this  section  was
 allowable  to  another  taxpayer;  and  provided  further  that  for the
 purposes of this section, starting with taxable year two thousand  twen-
 ty-two,  on  sites  that comply with the track one remediation standards
 promulgated pursuant to subdivision four of section 27-1415 of the envi-
 ronmental conservation law, stadiums, baseball parks, basketball  courts
 and  other  athletic  facilities shall be considered buildings, and that
 components of stadiums, baseball parks,  basketball  courts,  and  other
 athletic  facilities  constructed  on such sites, including sports field
 turf, site  lighting,  sidewalks,  access  and  entry  ways,  and  other
 improvements added to land, shall be considered structural components of
 buildings  under the internal revenue code, and shall be included in the
 definition of tangible property for the purposes of  this  section.    A
 related  party  service  fee shall be allowed only in the calculation of
 the tangible property credit component and shall not be allowed  in  the
 calculation  of  the  site  preparation  credit component or the on-site
 groundwater remediation credit component. The portion  of  the  tangible
 property credit component which is attributable to related party service
 fees  shall be allowed only as follows: (A) in the taxable year in which
 the qualified tangible property described in subparagraph (iii) of  this
 paragraph  is  placed  in service, for that portion of the related party
 service fees which have been earned and actually  paid  to  the  related
 party  on  or  before  the  last  day of such taxable year; and (B) with
 respect to any other taxable year for which the tangible property credit
 component may be claimed under this subparagraph and in which the amount
 of any additional related party service fees are actually  paid  by  the
 taxpayer  to  the  related party, the tangible property credit component
 for such amount shall be allowed in such taxable year. The credit compo-
 nent amount so determined shall be allowed for the taxable year in which
 such qualified tangible property is first placed in service on a  quali-
 fied  site  with  respect  to which a certificate of completion has been
 issued to the taxpayer, or for the taxable year in which the certificate
 of completion is issued if the qualified tangible property is placed  in
 service  prior  to  the  issuance of the certificate of completion. This
 credit component shall only be allowed for  up  to  one  hundred  twenty
 months after the date of the issuance of such certificate of completion,
 provided,  however,  that  for qualified sites to which a certificate of
 completion is issued on or after March twentieth, two thousand ten,  but
 prior to January first, two thousand twelve, the commissioner may extend
 the  credit  component for up to one hundred forty-four months after the
 date of such issuance, if the commissioner,  in  consultation  with  the
 commissioner of environmental conservation, determines that the require-
 ments  for  the  credit  would have been met if not for the restrictions
 related to the state disaster emergency declared pursuant  to  executive
 order 202 of 2020 or any extension thereof or subsequent executive order
 issued  in  response  to  the  novel  coronavirus  (COVID-19)  pandemic;
 S. 4009--B                         27
 
 provided, however, with respect to any  qualified  site  for  which  the
 department  of  environmental  conservation  has issued a certificate of
 completion to the taxpayer on or after March twentieth, two thousand ten
 and  before  December  thirty-first,  two  thousand fifteen, this credit
 component shall be allowed for up to one hundred eighty months after the
 date of the issuance of such certificate  of  completion;  AND  PROVIDED
 FURTHER,  WITH  RESPECT  TO  ANY QUALIFIED SITE LOCATED IN CITIES WITH A
 POPULATION GREATER THAN TWO HUNDRED FIVE  THOUSAND  AND  LESS  THAN  TWO
 HUNDRED  FIFTEEN THOUSAND IN COUNTIES WITH A POPULATION GREATER THAN ONE
 MILLION BUT LESS THAN ONE MILLION  TEN  THOUSAND  BASED  ON  THE  LATEST
 FEDERAL  DECENNIAL  CENSUS  FOR  WHICH  THE  DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION HAS ISSUED A CERTIFICATE OF COMPLETION TO THE  TAXPAYER  ON
 OR  AFTER  MARCH TWENTIETH, TWO THOUSAND TEN AND BEFORE DECEMBER THIRTY-
 FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT COMPONENT  SHALL  BE  ALLOWED
 FOR  UP  TO  ONE HUNDRED EIGHTY MONTHS AFTER THE DATE OF THE ISSUANCE OF
 SUCH CERTIFICATE OF COMPLETION.
   § 3. This act shall take effect immediately and  shall  be  deemed  to
 have been in effect on and after April 9, 2022.
 
                                 SUBPART C
 
   Section  1.  Paragraphs 1, 2 and 3 of subsection (h) of section 860 of
 the tax law, paragraph 1 as added by section 1 of part C of  chapter  59
 of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added
 by  section 2 of subpart A of part MM of chapter 59 of the laws of 2022,
 are amended to read as follows:
   (1) In the case of an electing partnership, the sum of (i)  all  items
 of  income,  gain, loss, or deduction derived from or connected with New
 York sources to the extent they are included in the taxable income of  a
 nonresident partner subject to tax under article twenty-two, under para-
 graph  one  of  subsection (a) of section six hundred thirty-two of this
 chapter; [and] (ii) all items of income, gain, loss, or deduction to the
 extent they are included in the taxable income  of  a  resident  partner
 subject  to  tax under article twenty-two of this chapter; AND (III) ALL
 PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW
 YORK, TAXES PAID UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY
 OF NEW YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIAL-
 LY SIMILAR TO THE TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT, FOR
 FEDERAL INCOME TAX PURPOSES, THE TAXES ARE  PAID  AND  DEDUCTED  IN  THE
 TAXABLE  YEAR,  AND  ARE  INCLUDED IN THE TAXABLE INCOME OF THE PARTNERS
 SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE  TAXABLE
 YEAR.
   (2)  In the case of an electing standard S corporation, the sum of (I)
 all items of income, gain, loss, or deduction derived from or  connected
 with  New  York sources to the extent they would be included under para-
 graph two of subsection (a) of section six hundred  thirty-two  of  this
 chapter  in  the  taxable  income  of a shareholder subject to tax under
 article twenty-two of this chapter; AND  (II)  ALL  PASS-THROUGH  ENTITY
 TAXES  INCLUDING  TAXES  PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
 UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
 TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMILAR TO  THE
 TAXES  PAID  UNDER  THIS ARTICLE, TO THE EXTENT THAT, FOR FEDERAL INCOME
 TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE  YEAR,  AND
 ARE  INCLUDED  IN  THE TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX
 UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
 S. 4009--B                         28
 
   (3) In the case of an electing resident S corporation, the sum of  (I)
 all  items  of  income,  gain, loss, or deduction to the extent they are
 included in the taxable income of a shareholder  subject  to  tax  under
 article  twenty-two  of  this  chapter; AND (II) ALL PASS-THROUGH ENTITY
 TAXES  INCLUDING  TAXES  PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
 UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
 TAXES PAID TO OTHER JURISDICTIONS  THAT  ARE  SUBSTANTIALLY  SIMILAR  TO
 TAXES  PAID  UNDER  THIS ARTICLE, TO THE EXTENT THAT, FOR FEDERAL INCOME
 TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE  YEAR,  AND
 ARE  INCLUDED  IN  THE TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX
 UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   § 2. Subsection (c) of section 861 of  the  tax  law,  as  amended  by
 section  3 of subpart A of part MM of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (c) The annual election must be made [by] ON OR BEFORE the due date of
 the first estimated payment under section eight  hundred  sixty-four  of
 this article and will take effect for the current taxable year. Only one
 election  may  be made during each calendar year. An election made under
 this section is irrevocable [as of] AFTER the due date.
   § 3. Paragraphs 1 and 2 of subsection (b) of section 867  of  the  tax
 law,  as added by section 1 of subpart B of part MM of chapter 59 of the
 laws of 2022, are amended to read as follows:
   (1) In the case of an electing city partnership, the sum  of  (I)  all
 items  of  income,  gain,  loss,  or  deduction  to  the extent they are
 included in the city taxable income of a partner or member of the elect-
 ing city partnership who is a city taxpayer; AND (II)  ALL  PASS-THROUGH
 ENTITY  TAXES  INCLUDING  TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS
 CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE TO THE  CITY  OF  NEW
 YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMI-
 LAR  TO  TAXES  PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, TO THE
 EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE TAXES  WERE  PAID  AND
 DEDUCTED  IN  THE  TAXABLE  YEAR,  AND  THEY ARE INCLUDED IN THE TAXABLE
 INCOME OF THE PARTNERS SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO  OF  THIS
 CHAPTER FOR THE TAXABLE YEAR.
   (2) In the case of an electing city resident S corporation, the sum of
 (I)  all  items  of  income, gain, loss, or deduction to the extent they
 would be included in the city taxable income of  a  shareholder  of  the
 electing  city  resident  S corporation who is a city taxpayer; AND (II)
 ALL PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER  ARTICLE  TWEN-
 TY-FOUR-A  OF THIS CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE TO
 THE CITY OF NEW YORK, AND TAXES PAID TO  OTHER  JURISDICTIONS  THAT  ARE
 SUBSTANTIALLY  SIMILAR TO TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS
 CHAPTER, TO THE EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE  TAXES
 WERE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND THEY ARE INCLUDED IN THE
 TAXABLE  INCOME OF THE SHAREHOLDERS SUBJECT TO TAX UNDER ARTICLE TWENTY-
 TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
   § 4. Subsection (e) of section 867 of the tax law, as added by section
 1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
 to read as follows:
   (e)  City  taxpayer. A city taxpayer means [a city resident individual
 subject to the tax imposed pursuant to the authority of  article  thirty
 of this chapter]:
   (1)  A  CITY  RESIDENT  INDIVIDUAL,  AS  DEFINED  IN SUBSECTION (A) OF
 SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER; AND
   (2) A CITY RESIDENT TRUST OR ESTATE, AS DEFINED IN SUBSECTION  (C)  OF
 SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER.
 S. 4009--B                         29
 
   § 5. Subsection (i) of section 867 of the tax law, as added by section
 1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
 to read as follows:
   (i)  Eligible  city  partnership.  Eligible city partnership means any
 partnership as provided for in section 7701(a)(2) of the Internal Reven-
 ue Code that has a filing requirement under paragraph one of  subsection
 (c)  of  section  six  hundred  fifty-eight of this chapter other than a
 publicly traded partnership as defined in section 7704 of  the  Internal
 Revenue  Code,  where at least one partner or member is a city [resident
 individual] TAXPAYER. An eligible city partnership includes any  entity,
 including  a  limited  liability  company,  treated as a partnership for
 federal income tax purposes that otherwise  meets  the  requirements  of
 this subsection.
   § 6. Subsection (j) of section 867 of the tax law, as added by section
 1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
 to read as follows:
   (j) Eligible city resident S corporation.  Eligible  city  resident  S
 corporation  means  any  New  York  S corporation as defined pursuant to
 subdivision one-A of section two hundred eight of this chapter  that  is
 subject  to  tax under section two hundred nine of this chapter that has
 only city [resident individual] TAXPAYER shareholders. An eligible  city
 resident  S corporation includes any entity, including a limited liabil-
 ity company, treated as an S corporation for federal income tax purposes
 that otherwise meets the requirements of this subsection.
   § 7. Subsection (c) of section 868 of the tax law, as added by section
 1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
 to read as follows:
   (c)  The  annual election to be taxed pursuant to this article must be
 made [by] ON OR BEFORE the due date of the first estimated payment under
 section eight hundred sixty-four of this chapter and  will  take  effect
 for  the current taxable year. Only one election to be taxed pursuant to
 this article may be made during each calendar  year.  An  election  made
 under  this  section  is irrevocable [as of] AFTER such due date. To the
 extent an election made under section eight hundred  sixty-one  of  this
 chapter  is revoked or otherwise invalidated an election made under this
 section is automatically invalidated.
   § 8. This act shall take effect immediately, provided, however,  that:
 (i)  sections  one  and  two of this act shall be deemed to have been in
 full force and effect on and after the effective date of part C of chap-
 ter 59 of the laws of 2021; (ii) sections three and seven  of  this  act
 shall  be  deemed to have been in full force and effect on and after the
 effective date of section 1 of subpart B of part MM of chapter 59 of the
 laws of 2022; and (iii) sections four, five and six of  this  act  shall
 apply to taxable years beginning on or after January 1, 2023.
   § 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 dates of Subparts A through C of this act shall
 be as specifically set forth in the last section of such Subparts.
 S. 4009--B                         30
 
                                  PART K
 
                           Intentionally Omitted
 
                                  PART L

   Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
 real property tax law relating to oil and gas  charges,  as  amended  by
 section  1  of  part  C of chapter 59 of the laws of 2020, is amended to
 read as follows:
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 1992; provided,
 however that any charges imposed by section 593 of the real property tax
 law  as  added  by section one of this act shall first be due for values
 for assessment rolls with tentative completion dates after July 1, 1992,
 and provided further, that this act  shall  remain  in  full  force  and
 effect  until  March  31,  [2024] 2027, at which time section 593 of the
 real property tax law as added by section  one  of  this  act  shall  be
 repealed.
   § 2. This act shall take effect immediately.
 
                                  PART M
 
                           Intentionally Omitted
 
                                  PART N
 
                           Intentionally Omitted
 
                                  PART O
 
                           Intentionally Omitted
 
                                  PART P
 
   Section 1. Section 1299-C of the tax law is REPEALED.
   § 2. Notwithstanding any provision of law to the contrary, there shall
 be  no  refund of any registration fees paid prior to the effective date
 of this act.
   § 3. This act shall take effect immediately.
 
                                  PART Q
 
   Section 1. Section 285-a of the tax law is amended  by  adding  a  new
 subdivision 4 to read as follow:
   4.  UPON  EACH SALE OF MOTOR FUEL, OTHER THAN A SALE THAT IS OTHERWISE
 EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE  TAX  IMPOSED
 BY  THIS  ARTICLE  TO  THE  PURCHASER  ON EACH GALLON SOLD. IF THE TAXES
 IMPOSED BY THIS ARTICLE HAVE NOT ALREADY  BEEN  ASSUMED  OR  PAID  BY  A
 DISTRIBUTOR  ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
 NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A  RESULT  OF  TEMPERATURE
 S. 4009--B                         31
 
 FLUCTUATION,  THE  DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   §  2. Section 285-b of the tax law is amended by adding a new subdivi-
 sion 5 to read as follows:
   5. UPON EACH SALE OF DIESEL MOTOR FUEL, OTHER  THAN  A  SALE  THAT  IS
 OTHERWISE EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE TAX
 IMPOSED  BY  THIS  ARTICLE  TO THE PURCHASER ON EACH GALLON SOLD. IF THE
 TAXES IMPOSED BY THIS ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY A
 DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING,  BUT
 NOT  LIMITED  TO,  THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
 FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO  THE  COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   § 3. Section 308 of the tax law is amended by adding a new subdivision
 (j) to read as follows:
   (J) EVERY PETROLEUM BUSINESS SUBJECT TO TAX UNDER THIS ARTICLE THAT IS
 ALSO A DISTRIBUTOR, AS DEFINED IN SECTION TWO HUNDRED EIGHTY-TWO OF THIS
 CHAPTER, MUST CHARGE THE TAX IMPOSED BY THIS ARTICLE TO THE PURCHASER ON
 EACH  GALLON SOLD, UNLESS OTHERWISE EXEMPT. IF THE TAXES IMPOSED BY THIS
 ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY SUCH PETROLEUM BUSINESS
 ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT NOT  LIMITED
 TO,  THE  EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE FLUCTUATION,
 SUCH PETROLEUM BUSINESS MUST REMIT SUCH TAXES TO THE COMMISSIONER ON THE
 RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   § 4. Section 1102 of the tax law is amended by adding a  new  subdivi-
 sion (g) to read as follows:
   (G) THE TAX IMPOSED BY THIS SECTION MUST BE CHARGED ON THE SALE, OTHER
 THAN  A  RETAIL SALE OR A SALE THAT IS OTHERWISE EXEMPT UNDER THIS ARTI-
 CLE, OF EACH GALLON OF MOTOR FUEL OR DIESEL MOTOR  FUEL.  IF  THE  TAXES
 IMPOSED  BY  THIS  SECTION  HAVE NOT ALREADY BEEN ASSUMED OR PAID BY THE
 DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING,  BUT
 NOT  LIMITED  TO,  THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
 FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO  THE  COMMISSIONER
 ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
   §  5.  This act shall take effect on September 1, 2023 and shall apply
 to sales of motor fuel and Diesel motor fuel on or after such date.
 
                                  PART R
 
   Section 1. Subparagraph (B) of  paragraph  1  of  subdivision  (a)  of
 section 1115 of the tax law, as amended by section 1 of part GG of chap-
 ter 59 of the laws of 2022, is amended to read as follows:
   (B) Until May [thirty first] THIRTY-FIRST, two thousand [twenty-three]
 TWENTY-FOUR,  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: (I) when sold
 for one dollar and fifty cents or less through any vending machine OPER-
 ATED BY A PARTICIPANT IN THE "BUSINESS ENTERPRISE PROGRAM", AS SUCH TERM
 IS DEFINED IN PARAGRAPH TWO OF SUBDIVISION  A  OF  SECTION  ELEVEN-A  OF
 CHAPTER  FOUR  HUNDRED  FIFTEEN OF THE LAWS OF NINETEEN HUNDRED THIRTEEN
 that accepts coin or currency only; or (II) when sold for two dollars or
 less through any vending machine OPERATED BY  SUCH  A  PARTICIPANT  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 June 1, 2023.
 
                                  PART S
 S. 4009--B                         32
 
   Section 1. Subdivision 1 of section 471 of the tax law, as amended  by
 section  1  of  part D of chapter 134 of the laws of 2010, is amended to
 read as follows:
   1.  There  is hereby imposed and shall be paid a tax on all cigarettes
 possessed in the state by any person for sale, except that no tax  shall
 be  imposed  on cigarettes sold under such circumstances that this state
 is without power to impose such tax, including sales to qualified  Indi-
 ans for their own use and consumption on their nations' or tribes' qual-
 ified  reservation,  or  sold  to  the  United States or sold to or by a
 voluntary unincorporated organization of the armed forces of the  United
 States  operating  a place for the sale of goods pursuant to regulations
 promulgated by the appropriate executive agency of the United States, to
 the extent provided in such regulations and policy statements of such an
 agency applicable to such sales. The tax  imposed  by  this  section  is
 imposed  on  all cigarettes sold on an Indian reservation to non-members
 of the Indian nation or tribe and to non-Indians and  evidence  of  such
 tax  shall be by means of an affixed cigarette tax stamp. Indian nations
 or tribes may elect to participate in the Indian  tax  exemption  coupon
 system established in section four hundred seventy-one-e of this article
 which provides a mechanism for the collection of the tax imposed by this
 section on cigarette sales on qualified reservations to such non-members
 and  non-Indians  and for the delivery of quantities of tax-exempt ciga-
 rettes to Indian nations or tribes for the personal use and  consumption
 of  qualified members of the Indian nation or tribe. If an Indian nation
 or tribe does not elect to  participate  in  the  Indian  tax  exemption
 coupon  system, the prior approval system shall be the mechanism for the
 delivery of quantities of tax-exempt cigarettes  to  Indian  nations  or
 tribes  for the personal use and consumption of qualified members of the
 Indian nation or tribe as provided for in paragraph (b)  of  subdivision
 five  of  this  section.  Such tax on cigarettes shall be at the rate of
 [four] FIVE dollars and thirty-five cents for each twenty cigarettes  or
 fraction  thereof,  provided,  however,  that if a package of cigarettes
 contains more than twenty cigarettes, the rate of tax on the  cigarettes
 in  such  package  in  excess  of twenty shall be one dollar and [eight]
 THIRTY-THREE and three-quarters cents for each five cigarettes or  frac-
 tion  thereof.  Such tax is intended to be imposed upon only one sale of
 the same package of cigarettes. It shall be presumed that all cigarettes
 within the state are subject to tax until the contrary  is  established,
 and  the  burden  of proof that any cigarettes are not taxable hereunder
 shall be upon the person in possession thereof.
   § 2.  Section 471-a of the tax law, as amended by section 5 of part  D
 of chapter 134 of the laws of 2010, is amended to read as follows:
   §  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
 paid a tax on all cigarettes used in the state  by  any  person,  except
 that  no  tax  shall  be imposed (1) if the tax provided in section four
 hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
 rettes  which are exempt from the tax imposed by said section, or (3) on
 the use of four hundred or less cigarettes, brought into the  state  on,
 or  in the possession of, any person. Such tax on cigarettes shall be at
 the rate of [four] FIVE dollars and thirty-five cents  for  each  twenty
 cigarettes  or fraction thereof, provided, however, that if a package of
 cigarettes contains more than twenty cigarettes, the rate of tax on  the
 cigarettes  in  such package in excess of twenty shall be one dollar and
 [eight] THIRTY-THREE and three-quarters cents for each  five  cigarettes
 or  fraction  thereof.  Within twenty-four hours after liability for the
 tax accrues, each such person shall file with the commissioner a  return
 S. 4009--B                         33
 
 in  such  form  as the commissioner may prescribe together with a remit-
 tance of the tax shown to be due thereon. For purposes of this  article,
 the  word  "use"  means  the  exercise  of  any right or power actual or
 constructive  and shall include but is not limited to the receipt, stor-
 age or any keeping or retention for any length of time,  but  shall  not
 include possession for sale. All other provisions of this article if not
 inconsistent  shall  apply  to the administration and enforcement of the
 tax imposed by this section in the same manner as  if  the  language  of
 said provisions had been incorporated in full into this section.
   §  3.  Notwithstanding any other provision of law to the contrary, the
 tax due on cigarettes possessed in New York state as  of  the  close  of
 business  on August 31, 2023, by any person for sale solely attributable
 to the increase imposed by the amendments to section 471 of the tax law,
 as amended by section one of this act, shall be  paid  by  November  20,
 2023,  subject to such terms and conditions as the commissioner of taxa-
 tion and finance shall prescribe.
   § 4. This act shall take effect on September 1, 2023, and shall  apply
 to all cigarettes possessed in this state by any person for sale and all
 cigarettes used in this state by any person on or after such date.
 
                                  PART T

   Section  1. Subdivision 4 of section 474 of the tax law, as amended by
 chapter 61 of the laws of 1989, is amended to read as follows:
   4. (A) At the time of delivering cigarettes to any person  each  agent
 or  wholesale  dealer, and at the time of delivering tobacco products to
 any person each distributor or wholesale  dealer  of  tobacco  products,
 shall  make  a  true duplicate invoice showing the date of delivery, the
 number of packages and number of cigarettes contained therein,  in  each
 shipment  of cigarettes delivered, and the items and quantity and whole-
 sale price of each item in each shipment of tobacco products  delivered,
 and the name of the purchaser to whom delivery is made, and shall retain
 the  same  for a period of three years subject to the use and inspection
 of the commissioner [of taxation and finance]. Each dealer shall procure
 and retain invoices showing the number of packages and number  of  ciga-
 rettes contained therein, in each shipment of cigarettes received by him
 OR  HER,  and the items and quantity and wholesale price of each item in
 each shipment of tobacco products received by him OR HER, the date ther-
 eof, and the name of the shipper, and shall retain the same for a period
 of three years subject to the use and inspection of the commissioner [of
 taxation and finance]. The commissioner [of  taxation  and  finance]  by
 regulation  may provide that whenever cigarettes or tobacco products are
 shipped into the state, the railroad company, express company,  trucking
 company  or other public carrier transporting any shipment thereof shall
 file with the commissioner [of taxation  and  finance]  a  copy  of  the
 freight  bill  within  ten  days after the delivery in the state of each
 shipment. All dealers shall maintain and keep  for  a  period  of  three
 years  such  other  records  of cigarettes or tobacco products received,
 sold or delivered within the state as may be required by the commission-
 er [of taxation and finance]. The commissioner [of taxation and finance]
 is hereby authorized to examine the books, papers,  invoices  and  other
 records  of  any person in possession, control or occupancy of any prem-
 ises where cigarettes or tobacco products are placed,  stored,  sold  or
 offered for sale, and the equipment of any such person pertaining to the
 stamping of cigarettes or the sale and delivery of cigarettes or tobacco
 products  taxable under this article, as well as the stock of cigarettes
 S. 4009--B                         34
 
 or tobacco products in any such premises or vehicle. To verify the accu-
 racy of the tax imposed and assessed by this article, each  such  person
 is hereby directed and required to give to the commissioner [of taxation
 and  finance]  or his OR HER duly authorized representatives, the means,
 facilities and opportunity for such examinations as are herein  provided
 for and required.
   (B)  IF  A  RETAIL DEALER, OR ITS EMPLOYEES OR AGENTS, REFUSES TO GIVE
 THE COMMISSIONER OR HIS OR  HER  DULY  AUTHORIZED  REPRESENTATIVES,  THE
 MEANS,  FACILITIES AND OPPORTUNITY FOR SUCH EXAMINATIONS AS ARE REQUIRED
 AND PROVIDED FOR BY THIS SECTION: (I) ITS  REGISTRATION  TO  SELL  CIGA-
 RETTES  AND  TOBACCO PRODUCTS SHALL BE REVOKED FOR A PERIOD OF ONE YEAR;
 (II) FOR A SECOND SUCH FAILURE WITHIN  A  PERIOD  OF  THREE  YEARS,  ITS
 REGISTRATION  SHALL  BE  PERMANENTLY REVOKED. IF SUCH RETAIL DEALER DOES
 NOT POSSESS A VALID REGISTRATION, EITHER BECAUSE IT FAILED TO  OBTAIN  A
 REGISTRATION  OR ITS REGISTRATION IS SUSPENDED OR REVOKED AT THE TIME OF
 SUCH REFUSAL, THE RETAIL DEALER SHALL BE SUBJECT TO A PENALTY OF  UP  TO
 FIVE THOUSAND DOLLARS FOR A FIRST REFUSAL AND UP TO TEN THOUSAND DOLLARS
 FOR A SECOND REFUSAL WITHIN THREE YEARS.
   § 2. This act shall take effect immediately.
 
                                  PART U
 
                           Intentionally Omitted
 
                                  PART V
 
                           Intentionally Omitted
 
                                  PART W

   Section  1.  Subdivision 1 of section 105 of the state finance law, as
 amended by chapter 204 of the laws  of  2002,  is  amended  to  read  as
 follows:
   1.  All moneys received by the commissioner of taxation and finance on
 account of the state, excepting such moneys as are required by law to be
 deposited to the credit of the comptroller, but including such moneys as
 are thereafter paid into the state treasury by the comptroller, shall be
 deposited by the commissioner of taxation and finance within three BUSI-
 NESS days after the receipt thereof, either as a demand  deposit  or  an
 interest-bearing  time  deposit (other than a time certificate of depos-
 it), as [he] THE COMMISSIONER and the comptroller may determine, in such
 banks, trust companies and industrial banks as in [his] THE  opinion  OF
 THE  COMMISSIONER  and  the  opinion  of the comptroller are secure. The
 moneys so deposited shall be placed to the account of  the  commissioner
 of taxation and finance.  [He] THE COMMISSIONER shall keep a bankbook in
 which  shall  be  entered  [his]  THEIR account of deposit in and moneys
 drawn from the banks and trust companies and industrial banks  in  which
 deposits  are  made  by  [him]  THE  COMMISSIONER, which [he] THEY shall
 exhibit to the comptroller for [his] inspection on the first Tuesday  of
 every  month  and  oftener  if required. [He] THE COMMISSIONER shall not
 draw any moneys from such banks, trust  companies  or  industrial  banks
 unless  by  checks  signed and countersigned in the manner prescribed by
 section one hundred one, unless otherwise provided  by  law.  No  moneys
 shall  be paid by any such bank, trust company or industrial bank out of
 S. 4009--B                         35
 
 any such deposit except upon such checks.   Moneys may be  paid  through
 electronic  transfer  in  accordance  with  procedures  developed by the
 commissioner of taxation and finance and the comptroller and  consistent
 with  the  requirements  of  this  section  for recording payments. Such
 payments through electronic transfer shall be considered,  for  purposes
 of  this  chapter,  to be moneys drawn by check.  Every such bank, trust
 company or industrial bank shall transmit  to  the  comptroller  monthly
 statements  of  all  moneys  received  and  paid by it on account of the
 commissioner of taxation and finance.
   § 2. This act shall take effect immediately.
 
                                  PART X
 
   Section 1. Legislative findings. The legislature finds that it  is  in
 the  interests  of  the state to assist The New York Racing Association,
 Inc., which is  the  franchised  corporation  pursuant  to  section  two
 hundred  six  of  the  racing, pari-mutuel wagering and breeding law, to
 renovate Belmont Park racetrack and  repurpose  the  Aqueduct  property.
 The  legislature  further finds and determines that the anticipated cost
 of renovating Belmont Park racetrack is four hundred fifty-five  million
 dollars and that the renovation of Belmont Park racetrack shall initial-
 ly  be  financed by the state subject to the provisions of the repayment
 agreement of the franchised corporation required by section two of  this
 act. The franchised corporation will be responsible for repayment of the
 state funds in accordance with the terms of such repayment agreement.
   §  2.  Prior  to,  and as a condition to the state initially providing
 funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
 corporation  shall  enter  into  a  repayment  agreement  with the state
 authorizing and directing that a portion of the funds of the  franchised
 corporation  dedicated for capital expenditures of the franchised corpo-
 ration pursuant to paragraph 3 of  subdivision  f  and  paragraph  3  of
 subdivision  f-1  of  section 1612 of the tax law shall be used to repay
 the state for the funds provided by the  state  for  the  renovation  of
 Belmont  Park  racetrack,  in  accordance  with  the repayment agreement
 between the state and the franchised corporation. Such  agreement  shall
 further provide that:
   (1)  in the event the franchised corporation receives future statutory
 payments enacted for the specific  purpose  of  holding  the  franchised
 corporation harmless for any loss of payments pursuant to paragraph 3 of
 subdivision  f and paragraph 3 of subdivision f-1 of section 1612 of the
 tax law, such statutory payments shall also be used to repay  the  state
 for  the  funds provided by the state for the renovation of Belmont Park
 racetrack;
   (2) certain renovations shall be required by such agreement, including
 but not limited to:
   (i) a new grandstand consisting of at least two hundred fifty thousand
 square feet;
   (ii) at least forty acres of new, usable infield space;
   (iii) at least one turf  track  and  at  least  one  synthetic  track;
 provided  however,  that at least one of such tracks shall be all-season
 and capable of hosting races for the duration  of  the  entire  calendar
 year;
   (iv) at least four acres of green area for use by patrons;
   (v) at least one commercial tunnel;
   (vi) at least two pedestrian tunnels;
   (vii) a minimum of one thousand five hundred parking spaces; and
 S. 4009--B                         36
 
   (viii) new event and office facilities;
   (3) subsequent to relinquishing to the state its leasehold interest in
 real  property  located  in South Ozone Park, commonly known as Aqueduct
 Racetrack, the franchise corporation shall annually  host  a  number  of
 race  days  at  Belmont  Park  racetrack that is equal to or exceeds the
 number of total race days hosted at Belmont Park racetrack and  Aqueduct
 Racetrack  in the year two thousand nineteen as determined by the gaming
 commission; provided however, that such threshold shall also  require  a
 minimum  number  of winter race days as determined by the gaming commis-
 sion;
   (4) the franchise oversight board established pursuant to section  two
 hundred  twelve  of  the  racing,  pari-mutuel wagering and breeding law
 shall require a project labor agreement for the renovations  subject  to
 the requirements of section two hundred thirteen of the racing, pari-mu-
 tuel wagering and breeding law;
   (5)  the gaming commission established pursuant to section one hundred
 two of the racing, pari-mutuel wagering and breeding law,  in  consulta-
 tion with the division of minority and women business development in the
 department  of economic development, shall establish goals substantially
 similar to articles fifteen-A and seventeen-B of the executive  law  for
 the  utilization  of  minorities, women and service-disabled veterans in
 both construction jobs related to the renovations at Belmont Park  race-
 track  and permanent and part-time jobs at Belmont Park racetrack. These
 goals may include, but shall not be limited to:
   (i) a demonstration by the franchised corporation  that  it  has  made
 significant  efforts  to  attract and retain minority, women, local, and
 service-disabled apprentices;
   (ii) a demonstration by the franchised corporation that  its  contrac-
 tors  and  subcontractors have committed to work with minority and women
 owned business enterprises pursuant to article fifteen-A of  the  execu-
 tive law through joint ventures or subcontractor relationships;
   (iii)  estimates  and specific goals provided by the franchised corpo-
 ration for the utilization of  minorities,  women  and  service-disabled
 veterans  on  construction  jobs  and in permanent and part-time jobs at
 Belmont Park racetrack in substantial compliance with articles fifteen-A
 and seventeen-B of the executive law;
   (iv) a commitment by the franchised corporation to establish an affir-
 mative action program of equal opportunity by  which  it  guarantees  to
 provide  equal  opportunities to all employees in all employment catego-
 ries, including minorities, women, and persons with disabilities;
   (v) a commitment from  the  franchised  corporation  to  partner  with
 women,   minority,  and  service-disabled  veteran-owned  businesses  at
 Belmont Park racetrack in substantial compliance with articles fifteen-A
 and seventeen-B of the executive law; and
   (vi) a plan of affirmative action established by the franchised corpo-
 ration that shall promote diversity in its  business  model,  financing,
 employment  goals, and other social and economic equity roles at Belmont
 Park racetrack;
   (6) the franchised corporation shall establish an  affirmative  action
 program  of  equal  opportunity  by  which  the  applicant guarantees to
 provide equal  employment  opportunities  to  all  employees,  including
 minorities,  women  and  persons  with  disabilities at the Belmont Park
 racetrack;
   (7) the franchised corporation shall consult with the New  York  state
 energy  research  and  development  authority regarding the green energy
 infrastructure that is a component of the renovations  at  Belmont  Park
 S. 4009--B                         37
 
 racetrack,  including  without  limitation  the number of zero emissions
 vehicle charging facilities that the authority finds sufficient, and the
 franchised corporation shall strive to the extent practicable to  ensure
 the  renovations result in a Belmont Park racetrack that is a net energy
 producer;
   (8) subsequent to relinquishing to the state its leasehold interest in
 real property located in South Ozone Park, commonly  known  as  Aqueduct
 Racetrack,  the  franchised  corporation  shall maintain at Belmont Park
 racetrack a number of full time equivalent jobs  that  is  equal  to  or
 greater  than  the  total  number of full time jobs existing at Aqueduct
 Racetrack and Belmont Park racetrack in the year  two  thousand  twenty-
 three, as determined by the gaming commission;
   (9)  the  franchise  oversight  board shall ensure that annual capital
 expenditures at  Saratoga  racetrack  and  Belmont  Park  racetrack  are
 adequate  to  maintain their assets in a state of good repair, including
 ensuring the continued health, safety and well-being of  patrons,  jock-
 eys, backstretch personnel and the horses in their care; and
   (10) such agreement shall be subject to approval of the gaming commis-
 sion,  the franchise oversight board and the director of the division of
 budget; provided additionally, that the gaming commission shall  publish
 such agreement on the public-facing portion of its website.  Such agree-
 ment  may be amended from time to time as agreed to by the state and the
 franchised corporation;  provided  however,  that  such  amendment  must
 comply  with  the  provisions  of  this part.   At any time prior to the
 repayment of the state funds for the renovation of  Belmont  Park  race-
 track,  the  state  may issue state personal income tax revenue bonds or
 state sales tax revenue bonds. In the event  of  the  issuance  of  such
 bonds,  the  repayment  agreement  shall be revised to reflect the obli-
 gation of the franchised corporation to fully  repay  the  debt  service
 costs associated with such bonds.
   §  3.  Prior  to, and as a condition of, the state initially providing
 funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
 corporation  shall  also  enter  into an agreement with the state relin-
 quishing to the state its leasehold interest in real property located in
 South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial
 completion of the renovation of Belmont Park racetrack; provided  howev-
 er,  that  any subsequent transfer, disposal, sale or lease, hereinafter
 "disposal", of such real property shall  be  subject  to  the  following
 restrictions and conditions:
   1.  such  disposal  shall be for the primary purpose of establishing a
 mixed residential and non-residential use development  or  developments,
 which  shall  include but not be limited to, creating affordable housing
 developments whose compliance  requirements  meet  or  exceed  those  as
 defined  in article 2, chapter 3 section 23-154 of the zoning resolution
 of the city of New York relating to the mandatory  inclusionary  housing
 program  as  defined in article 2, chapter 3 section 23-90 of the zoning
 resolution of the city of New York and section 3-119.7 of  the  adminis-
 trative code of the city of New York;
   2.  such disposal shall be determined by a competitive bidding process
 established by the commissioner of the division of housing and community
 renewal in coordination with the New York  city  department  of  housing
 preservation  and  development  and housing and development corporation,
 via a request for proposals issued no later  than  one  year  after  the
 franchised  corporation relinquishes to the state its leasehold interest
 in such real property;
 S. 4009--B                         38
 
   3. the division of housing and community renewal shall hold  at  least
 one  public  hearing  prior  to  making  a  determination with regard to
 disposal of such real property pursuant to the competitive bidding proc-
 ess established by this act; provided however, that such public hearings
 shall  be subject to the provisions of article seven of the public offi-
 cers law, and shall afford  an  opportunity  for  submission  of  public
 comments;
   4.  (a)  There  shall be established a community advisory committee to
 assess bids made in response to the request for proposals issued  pursu-
 ant  to  the competitive bidding process authorized by this section. The
 committee shall consist of six members,  one  to  be  appointed  by  the
 governor,  one  to  be  appointed by the senator representing the senate
 district where the proposed affordable  housing  development  is  to  be
 located,  one  to  be  appointed  by the assemblymember representing the
 assembly district where the proposed affordable housing  development  is
 to  be  located,  one to be appointed by the borough president where the
 affordable housing development is proposed to  be  located,  one  to  be
 appointed  by the city councilmember representing the district where the
 affordable housing development is proposed to be located, and one to  be
 appointed by the New York city mayor.
   (b)  The  activities  of  the community advisory committee constituted
 pursuant  to  this  section  shall  be  subject  to  the  open  meetings
 provisions contained in article seven of the public officers law.
   (c)  The division of housing and community renewal may hire a consult-
 ant to serve as a community consultant to assist and manage the communi-
 ty advisory committee process. The division  of  housing  and  community
 renewal or community consultant shall provide administrative support and
 technical assistance for the establishment and activity of the community
 advisory committee constituted pursuant to this subdivision.
   (d)  Prior  to determination on any bid by the division of housing and
 community renewal the following  community  advisory  committee  process
 shall apply:
   (i) upon issuance of the request for proposals, a community consultant
 may  be hired by the division of housing and community renewal to manage
 the process and any other activities as determined by  the  division  of
 housing and community renewal;
   (ii)  entities  interested in constructing affordable housing projects
 pursuant to this section may submit a bid to the division of housing and
 community renewal who shall provide such bid to the  community  consult-
 ant;
   (iii)  the  community  consultant shall notify the division of housing
 and community renewal of all bids and notify the appropriate  appointing
 authorities  of  their  responsibility  to  submit  appointments for the
 community advisory committee established pursuant to this section;
   (iv) the community  consultant  shall  ensure  the  formation  of  the
 committee, as necessary;
   (v)  upon  notification,  the appointing authority shall appoint their
 respective appointees;
   (vi) upon such committee's first  meeting  the  respective  appointees
 shall elect by majority vote a committee chair;
   (vii)  the  community consultant shall present the bids to the commit-
 tee;
   (viii) the committee shall review, solicit public comments and written
 submissions of such comments, and hold public hearings;
   (ix) upon a two-thirds vote, such  committee  shall  issue  a  finding
 either establishing public support approving or disapproving each bid;
 S. 4009--B                         39
 
   (e)  Following a two-thirds vote by such community advisory committee,
 the following shall apply:
   (i)  upon  notification  of  a finding of support in approval of a bid
 following a two-thirds vote by such committee, the committee  consultant
 shall notify the applicant, board, and commission;
   (ii)  following  such  notification,  the  applicant  must  comply and
 receive approval under the applicable state zoning requirements; and
   (iii) the division of housing and community renewal shall not issue  a
 decision  until  the  applicant  presents  evidence  of  compliance  and
 approval with all necessary state zoning requirements.
   (f) After providing an adequate time period for applicants  to  submit
 bids,  and  after  the  community  advisory council has adequate time to
 approve or disapprove all bids, the division of  housing  and  community
 renewal shall consider such bids and approve or disapprove such bids.
   5.  Notwithstanding the provisions of subdivisions one through four of
 this section, any bid which proposes to establish  a  commercial  gaming
 facility  on  such  real  property  shall be exclusively governed by the
 provisions of part RR of chapter 56 of the laws of 2022; provided howev-
 er, that in addition to the requirements set forth in part RR of chapter
 56 of the laws of 2022, any such commercial gaming  facility  bid  shall
 include  a  mandatory  inclusionary  housing  program affordable housing
 component as established in this section; and provided further, that for
 any such commercial gaming facility bid, the  gaming  facility  location
 board  shall  consult with the division of housing and community renewal
 to ensure that the affordable housing requirements of this  section  are
 adhered to by any such bid.
   6. Such disposal shall be subject to legislative approval.
   §  4.  The  New  York State Gaming Commission shall ensure that to the
 extent that the law allows for a franchise agreement for  the  operation
 of  Belmont  Park  racetrack with a franchisee other than the franchised
 corporation, the term of any  such  franchise  agreement  awarded  after
 funding  provided  by the state for the renovation of Belmont Park race-
 track described by section one of this act  shall  include  a  provision
 obligating  such  franchisee  to  assume  the payments of the franchised
 corporation required by section two of this act.
   § 5. The opening paragraph of paragraph 3 of subdivision f of  section
 1612  of  the  tax law is designated subparagraph (i) and a new subpara-
 graph (ii) is added to read as follows:
   (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE  EVENT
 THE  STATE  PROVIDES  FUNDS  TO THE FRANCHISED CORPORATION FOR THE RENO-
 VATION OF BELMONT PARK RACETRACK, OUT OF THE AMOUNT PAYABLE TO THE FRAN-
 CHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I)
 OF THIS PARAGRAPH DURING ANY STATE FISCAL YEAR, AN  AMOUNT  PURSUANT  TO
 THE REPAYMENT AGREEMENT BETWEEN THE STATE AND THE FRANCHISED CORPORATION
 SHALL INSTEAD BE DEPOSITED INTO THE MISCELLANEOUS CAPITAL PROJECTS FUND,
 NEW  YORK RACING CAPITAL IMPROVEMENT FUND AS REQUIRED TO REPAY THE STATE
 FOR FUNDS PROVIDED FOR THE RENOVATION OF BELMONT PARK  RACETRACK.    ANY
 AMOUNT PAYABLE TO THE  FRANCHISED CORPORATION  IN ANY  STATE FISCAL YEAR
 FOR  CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH
 IN EXCESS OF THE  AMOUNT  PURSUANT TO THE  REPAYMENT  AGREEMENT  BETWEEN
 THE  STATE AND THE FRANCHISED CORPORATION SHALL BE DEPOSITED PURSUANT TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH.  ONCE THE STATE HAS BEEN FULLY REIM-
 BURSED FOR THE COSTS RELATED TO THE RENOVATION  OF  BELMONT  PARK  RACE-
 TRACK,  THIS  SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH (I) OF
 THIS PARAGRAPH SHALL APPLY.
 S. 4009--B                         40
 
   § 6. The opening paragraph  of  paragraph  3  of  subdivision  f-1  of
 section  1612  of  the  tax law is designated subparagraph (i) and a new
 subparagraph (ii) is added to read as follows:
   (II)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
 THE STATE PROVIDES FUNDS TO THE FRANCHISED  CORPORATION  FOR  THE  RENO-
 VATION  OF BELMONT PARK RACETRACK, AND IN THE EVENT THE AMOUNT DEPOSITED
 PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH THREE  OF  SUBDIVISION  F  OF
 THIS  SECTION IS INSUFFICIENT TO MAKE THE REQUIRED REPAYMENT PURSUANT TO
 SUCH SUBPARAGRAPH DURING ANY STATE FISCAL YEAR, AN AMOUNT PAYABLE TO THE
 FRANCHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH
 (I) OF THIS PARAGRAPH SHALL INSTEAD BE DEPOSITED INTO THE  MISCELLANEOUS
 CAPITAL  PROJECTS  FUND, NEW YORK RACING CAPITAL IMPROVEMENT FUND TO THE
 EXTENT NECESSARY, WHEN COMBINED WITH THE AMOUNT SET  FORTH  IN  SUBPARA-
 GRAPH  (II) OF PARAGRAPH THREE OF SUBDIVISION F OF THIS SECTION, TO MAKE
 ANY REQUIRED REPAYMENT OF FUNDS PROVIDED BY THE  STATE  RELATED  TO  THE
 RENOVATION OF BELMONT PARK RACETRACK DURING SUCH FISCAL YEAR. ANY AMOUNT
 PAYABLE TO THE FRANCHISED CORPORATION IN ANY STATE FISCAL YEAR FOR CAPI-
 TAL  EXPENDITURES  PURSUANT  TO  SUBPARAGRAPH  (I)  OF THIS PARAGRAPH IN
 EXCESS OF THE AMOUNT PURSUANT TO THE  REPAYMENT  AGREEMENT  BETWEEN  THE
 STATE  AND  THE  FRANCHISED  CORPORATION  SHALL BE DEPOSITED PURSUANT TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH. ONCE THE STATE HAS BEEN FULLY  REIM-
 BURSED  FOR  SUCH  COSTS RELATED TO THE RENOVATION OF BELMONT PARK RACE-
 TRACK, THIS SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH  (I)  OF
 THIS PARAGRAPH SHALL APPLY.
   §  7.  The state comptroller is hereby authorized and directed to loan
 money in accordance with the provisions set forth in  subdivision  5  of
 section  4 of the state finance law and the provisions of section two of
 this act to the miscellaneous capital projects  fund,  New  York  racing
 capital improvement fund.
   §  8. 1.  Notwithstanding any other provisions of law to the contrary,
 the dormitory authority, the urban development corporation, and the  New
 York  state  thruway  authority  are hereby authorized to issue personal
 income tax revenue bonds or notes or state sales tax  revenue  bonds  or
 notes  in  one  or  more  series in an aggregate principal amount not to
 exceed four hundred fifty-five million dollars ($455,000,000)  excluding
 bonds  or  notes  issued to pay costs of issuance of such bonds or notes
 and bonds or notes issued to refund or otherwise  repay  such  bonds  or
 notes  previously issued, for the purpose of financing the renovation of
 Belmont Park racetrack in accordance with the provisions of section  two
 of this act.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority, urban development  corporation,
 and  the  New  York state thruway authority in undertaking the financing
 for the renovation of Belmont Park racetrack, the director of the budget
 is hereby authorized to enter into one or more financing agreements with
 the dormitory authority, the urban development corporation, and the  New
 York  state  thruway  authority,  upon  such terms and conditions as the
 director of the budget and the dormitory authority, the  urban  develop-
 ment  corporation  and the New York state thruway authority agree, so as
 to annually provide to the dormitory authority,  the  urban  development
 corporation, and the New York state thruway authority, in the aggregate,
 a  sum  not  to  exceed  the  principal,  interest, and related expenses
 required for such bonds and notes. Any financing agreement entered  into
 pursuant  to this section shall provide that the obligation of the state
 to pay the amount therein provided shall not constitute a  debt  of  the
 state  within  the  meaning of any constitutional or statutory provision
 S. 4009--B                         41
 
 and shall be deemed executory only to the extent of monies available and
 that no liability shall be incurred  by  the  state  beyond  the  monies
 available  for  such  purpose,  subject  to  annual appropriation by the
 legislature. Any such contract or any payments made or to be made there-
 under  may be assigned and pledged by the dormitory authority, the urban
 development corporation, and the New York  state  thruway  authority  as
 security for such bonds and notes, as authorized by this section.
   §  9.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law and the provisions of section two  of
 this  act,  the  comptroller  is  hereby authorized and directed in each
 state fiscal year to transfer, upon request of the director of the budg-
 et, up to the unencumbered  balance  or  an  amount  up  to  twenty-five
 million  eight hundred thousand dollars ($25,800,000) from the miscella-
 neous capital projects fund, New York racing capital improvement fund to
 the general fund.
   § 10. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Paragraph 1 of subdivision a of section  1612  of  the  tax
 law,  as  amended by chapter 174 of the laws of 2013, is amended to read
 as follows:
   (1) sixty percent of the total amount for which tickets have been sold
 for [a lawful lottery] THE QUICK DRAW game [introduced on or  after  the
 effective date of this paragraph,] subject to [the following provisions:
   (A) such game shall be available only on premises occupied by licensed
 lottery sales agents, subject to the following provisions:
   (i)  if  the  licensee  does not hold a license issued pursuant to the
 alcoholic beverage control law to sell alcoholic beverages for  consump-
 tion  on  the  premises,  then  the  premises must have a minimum square
 footage greater than two thousand five hundred square feet;
   (ii) notwithstanding the foregoing  provisions,  television  equipment
 that  automatically  displays  the  results  of  such  drawings  may  be
 installed and used without regard to the square footage if such premises
 are used as:
   (I) a commercial bowling establishment, or
   (II) a facility authorized under the racing, pari-mutuel wagering  and
 breeding law to accept pari-mutuel wagers;
   (B) the] rules for the operation of such game [shall be] as prescribed
 by  regulations promulgated and adopted by the division, provided howev-
 er, that such rules shall provide that no person under the age of  twen-
 ty-one  may  participate in such games on the premises of a licensee who
 holds a license issued pursuant to the alcoholic beverage control law to
 sell alcoholic beverages for consumption on the premises; and, provided,
 further, that such regulations may be revised on an emergency basis  not
 later than ninety days after the enactment of this paragraph in order to
 conform such regulations to the requirements of this paragraph; or
   § 2. This act shall take effect immediately.
 
                                  PART Z
 
                           Intentionally Omitted
 
                                  PART AA
 S. 4009--B                         42
 
   Section  1.  Subdivision 2 of section 509-a of the racing, pari-mutuel
 wagering and breeding law, as amended by section 1 of part DD of chapter
 59 of the laws of 2022, is amended to read as follows:
   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 thirty-
 first, two thousand twenty-three, 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 established pursuant to
 this section, and twenty-three percent of the funds, not to exceed  four
 hundred  forty thousand dollars, in the Capital off-track betting corpo-
 ration's capital acquisition fund established pursuant to this  section,
 shall  be  available  to  such  off-track  betting  corporations for the
 purposes of statutory obligations, payroll, and  expenditures  necessary
 to accept authorized wagers.
   c.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
 THE CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-THREE TO MARCH THIR-
 TY-FIRST, TWO THOUSAND TWENTY-FOUR, 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 ESTABLISHED  PURSU-
 ANT  TO  THIS  SECTION,  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 BE AVAILABLE TO SUCH OFF-TRACK BETTING  CORPORATIONS
 FOR  THE  PURPOSES  OF  STATUTORY OBLIGATIONS, PAYROLL, AND EXPENDITURES
 NECESSARY TO ACCEPT AUTHORIZED WAGERS.
   D. Prior to a corporation being able to utilize the  funds  authorized
 by  [paragraph]  PARAGRAPHS b AND C of this subdivision, the corporation
 must submit an expenditure plan to the  gaming  commission  for  review.
 Such  plan  shall  include  the  corporation's  outstanding liabilities,
 projected revenue for the upcoming year, a detailed explanation  of  how
 the  funds  will be used, and any other information determined necessary
 by the commission. Upon review, the commission will make a determination
 as to whether access to the funds is needed and warranted.
   § 2. This act shall take effect immediately.
 
                                  PART BB
 
   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 EE of chapter 59 of the laws of 2022,  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
 S. 4009--B                         43

 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
 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-three] TWENTY-FOUR; 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-three] TWENTY-FOUR; 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 EE of chapter 59 of the laws of 2022,  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
 S. 4009--B                         44
 
 thirtieth, two thousand  [twenty-three]  TWENTY-FOUR,  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 EE of chapter 59 of the laws of 2022,  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-three]  TWENTY-FOUR  and  on  any  day
 regardless  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-three] TWENTY-FOUR. 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 EE of chapter 59 of
 the laws of 2022, 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-three] TWENTY-FOUR. 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 EE of chapter 59 of the laws of 2022,  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-three]  TWENTY-FOUR.  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)
 S. 4009--B                         45
 
 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 EE of chapter
 59 of the laws of 2022, 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-two]  TWENTY-THREE,  when  a  franchised  corporation   is
 conducting  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 EE of chapter 59 of the
 laws of 2022, 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,  [2023]  2024;  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  EE of chapter 59 of the laws of 2022, 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, [2023] 2024; 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
 EE of chapter 59 of the laws of 2022, 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
 S. 4009--B                         46
 
 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
 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-three] TWENTY-FOUR, 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-three]  TWENTY-FOUR,  such payment
 shall be seven-tenths of one percent of  regular,  multiple  and  exotic
 pools.
   § 10. This act shall take effect immediately.
 
                                  PART CC

                           Intentionally Omitted
 
                                  PART DD
 
   Section  1.   Paragraph (b) of subdivision 9 of section 208 of the tax
 law is amended by adding a new subparagraph 28 to read as follows:
 S. 4009--B                         47
 
   (28) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  2. Subdivision 9 of section 208 of the tax law is amended by adding
 a new paragraph (u) to read as follows:
   (U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 3. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 44 to read as follows:
   (44) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 4. Section 612 of the tax law is amended by adding a new  subsection
 (y) to read as follows:
   (Y)  QUALIFIED OPPORTUNITY ZONES.  FOR TAX YEARS BEGINNING ON OR AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-THREE, UPON THE SALE OR  EXCHANGE  OF
 PROPERTY  WITH RESPECT TO WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER
 SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF  SECTION  1400Z-2
 OF  THE  INTERNAL  REVENUE  CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS
 ARTICLE SHALL BE DETERMINED  AS  IF  THE  TAXPAYER  HAD  NOT  MADE  SUCH
 ELECTION.
   §  5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
 amended by adding a new subparagraph (AA) to read as follows:
   (AA)  THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 6. Section 1503 of the tax law is amended by adding a  new  subdivi-
 sion (d) to read as follows:
   (D)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-THREE, UPON THE SALE OR EXCHANGE  OF  PROPERTY  WITH  RESPECT  TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH  (1)  OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE
 CODE, THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE  DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  7. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 17 to read as follows:
   (17) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 8. Section 11-602 of the administrative code of the city of New York
 is amended by adding a new subdivision 11 to read as follows:
   11. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 9. Paragraph (a) of subdivision 8 of section 11-652 of the  adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 18 to read as follows:
 S. 4009--B                         48
 
   (18)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  10.  Subdivision  8 of section 11-652 of the administrative code of
 the city of New York is amended by adding a new paragraph (u) to read as
 follows:
   (U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 11. Subdivision (b) of section 11-1712 of the administrative code of
 the city of New York is amended by adding a new paragraph 40 to read  as
 follows:
   (40)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  12.  Section  11-1712 of the administrative code of the city of New
 York is amended by adding a new subdivision (w) to read as follows:
   (W) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 13. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning on or after January 1, 2023.
 
                                  PART EE
 
   Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
 amended by adding a new section 503-b to read as follows:
   § 503-B. PROMOTIONAL SPENDING RESTRICTED FROM CORPORATION  ASSOCIATES.
 NO  REGIONAL  OFF-TRACK  BETTING CORPORATION OR ANY SUBSIDIARY WHOLLY OR
 PARTIALLY CONTROLLED BY SUCH  REGIONAL  OFF-TRACK  BETTING  CORPORATION,
 INCLUDING  BUT  NOT  LIMITED TO VIDEO LOTTERY TERMINAL FACILITIES, SHALL
 MAKE AVAILABLE TO ANY BOARD MEMBER, OFFICER, OR EMPLOYEE OF  THE  CORPO-
 RATION, ANY CONTRACTOR, SUBCONTRACTOR, CONSULTANT, OR OTHER AGENT OF THE
 CORPORATION,  OR  ANY  SPOUSE,  CHILD, SIBLING OR PARENT RESIDING IN THE
 PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGOING PERSONS, OR  ANY  BUSI-
 NESS,  PROFESSIONAL,  OR  PERSONAL  ASSOCIATES  OF  ANY OF THE FOREGOING
 PERSONS, ANY EVENT TICKETS, BEVERAGES, FOOD, OR  OTHER  THING  OF  VALUE
 THAT  EXCEEDS A VALUE OF FIFTEEN DOLLARS, EXCEPT AS OTHERWISE EXPLICITLY
 PROVIDED IN THIS CHAPTER. THIS LIMITATION SHALL APPLY, BUT NOT BE LIMIT-
 ED TO, THE MARKETING PLAN AND PROMOTIONAL ACTIVITIES OF THE CORPORATION.
 ALL PROMOTIONAL AND MARKETING ACTIVITIES OF  THE  CORPORATION  SHALL  BE
 SUBJECT  TO APPROVAL AND OVERSIGHT BY THE GAMING COMMISSION, WHICH SHALL
 ENSURE THAT SUCH  MARKETING  PLAN  AND  ACTIVITIES  OF  THE  CORPORATION
 PROHIBIT SELF-DEALING.
   § 2. Section 517 of the racing, pari-mutuel wagering and breeding law,
 as  amended  by  chapter  243 of the laws of 2020, is amended to read as
 follows:
   § 517. Annual reports. In addition to the reports required by  article
 five-a  of this chapter, within one hundred twenty days after the end of
 the fiscal year of the corporation, the directors thereof  shall  submit
 S. 4009--B                         49

 to  the  participating counties, the commission, THE TEMPORARY PRESIDENT
 OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, and the state comptroller  a
 complete and detailed audited report setting forth:
   1. its operations and accomplishments during such fiscal year;
   2. its receipts and expenditures during such fiscal year in accordance
 with  categories  or  classifications established by the corporation for
 its own operating and capital outlay purposes;
   3. its assets and liabilities at the end of such fiscal year including
 a schedule of its bonds, notes or other obligations and  the  status  of
 reserves, depreciations, special, sinking or other funds;
   4.  details of branch offices being planned or in the process of being
 constructed or otherwise established and branch offices that  have  been
 constructed or established;
   5.  DETAILS  OF  ITS MARKETING AND PROMOTIONAL PLANS, THE STRUCTURE OF
 SUCH PLANS, ANY SPENDING PURSUANT TO SUCH PLANS, AND HOW SUCH PLANS HAVE
 OR ARE ANTICIPATED TO BENEFIT THE OPERATIONS AND FINANCIAL  POSITION  OF
 THE  CORPORATION, AS WELL AS ANY MEASURES TAKEN TO PROHIBIT SELF-DEALING
 IN CONFLICT OF SECTION FIVE HUNDRED THREE-B OF THIS ARTICLE; and
   [5] 6. such other information relating to the operations of the corpo-
 ration as shall be deemed pertinent by the directors, the  participating
 counties, the commission, and the state comptroller.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
 
                                  PART FF
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new section 503-c to read as follows:
   §  503-C.  PROHIBITION ON TAKE-HOME VEHICLES. 1. NO REGIONAL OFF-TRACK
 BETTING CORPORATION SHALL ISSUE TO ANY BOARD MEMBER, OFFICER, OR EMPLOY-
 EE OF SUCH CORPORATION, ANY CONTRACTOR,  SUBCONTRACTOR,  CONSULTANT,  OR
 OTHER AGENT OF SUCH CORPORATION, OR ANY SPOUSE, CHILD, SIBLING OR PARENT
 RESIDING  IN  THE  PRINCIPAL  PLACE  OF  ABODE  OF ANY OF SUCH FOREGOING
 PERSONS A MOTOR VEHICLE. ALL MOTOR VEHICLES LEASED, OWNED  OR  OTHERWISE
 CONTROLLED BY SUCH CORPORATION SHALL BE RETURNED TO CORPORATION PROPERTY
 WHEN NOT BEING USED FOR OFFICIAL BUSINESS OF SUCH CORPORATION.
   2.  NOTWITHSTANDING  SUBDIVISION  ONE OF THIS SECTION, A REGIONAL OFF-
 TRACK BETTING CORPORATION SHALL BE ALLOWED TO ISSUE  TAKE-HOME  VEHICLES
 TO EMPLOYEES AND OFFICERS PROVIDED SUCH CORPORATION HAS A WRITTEN POLICY
 ON  TAKE-HOME  VEHICLES  THAT  IS COMPLIANT WITH THE OFFICE OF THE STATE
 COMPTROLLER RULES AND REGULATIONS, THAT SUCH  WRITTEN  POLICY  HAS  BEEN
 APPROVED  BY  THE GAMING COMMISSION, AND SUCH POLICY AND RECORDS RELATED
 TO SUCH WRITTEN POLICY ARE SUBJECT TO RANDOM  AUDITS  CONDUCTED  BY  THE
 GAMING COMMISSION.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
 
                                  PART GG
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new section 502-a to read as follows:
   §  502-A.  SPECIAL PROVISIONS WITH REGARD TO THE WESTERN REGIONAL OFF-
 TRACK BETTING CORPORATION. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF
 THIS ARTICLE, ON THE EFFECTIVE DATE OF THIS SECTION  THE  TERM  OF  EACH
 BOARD  MEMBER  OF THE WESTERN REGIONAL OFF-TRACK BETTING CORPORATION, OR
 ANY VACANT POSITION, SHALL BE DEEMED EXPIRED, AND EACH SUCH BOARD MEMBER
 S. 4009--B                         50
 
 OR VACANT POSITION SHALL BE REPLACED  WITH  THE  NEW  APPOINTMENTS  MADE
 PURSUANT  TO  THIS  SECTION.  THE  WESTERN OFF-TRACK BETTING CORPORATION
 BOARD OF DIRECTORS SHALL BE COMPOSED OF FIFTEEN MEMBERS TO BE  APPOINTED
 AS  FOLLOWS: THREE MEMBERS TO REPRESENT THE COUNTIES OF MONROE, WYOMING,
 AND ORLEANS; ONE MEMBER TO REPRESENT THE COUNTIES OF CHAUTAUQUA, CAYUGA,
 GENESEE, LIVINGSTON, SCHUYLER, AND SENECA;  FOUR  MEMBERS  TO  REPRESENT
 ERIE  COUNTY;  ONE  MEMBER  TO  REPRESENT  NIAGARA COUNTY; ONE MEMBER TO
 REPRESENT THE COUNTIES OF OSWEGO, CATTARAUGUS, AND WAYNE; ONE MEMBER  TO
 REPRESENT  THE  CITY  OF  BUFFALO;  ONE  MEMBER TO REPRESENT THE CITY OF
 ROCHESTER; ONE MEMBER APPOINTED BY THE GOVERNOR; ONE MEMBER APPOINTED BY
 THE TEMPORARY PRESIDENT OF THE SENATE; AND ONE MEMBER APPOINTED  BY  THE
 SPEAKER  OF  THE ASSEMBLY. IN THE CASE OF COUNTIES MAKING JOINT APPOINT-
 MENTS, SUCH COUNTIES SHALL COLLABORATE TO SELECT BOARD MEMBERS AND SHALL
 APPOINT SUCH MEMBERS THROUGH JOINT RESOLUTIONS PASSED BY SUCH  COUNTIES'
 COUNTY LEGISLATURE OR BOARD OF SUPERVISORS.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law, provided, however, that effective immediate-
 ly  municipalities  may take any action necessary to begin the selection
 and appointment process for new board member terms pursuant to this act.
 
                                  PART HH
 
    Section 1. Subsection (g-1) of section  606  of  the  tax  law,    as
 amended  by  chapter  378  of  the laws of 2005,   paragraphs 1 and 2 as
 amended by chapter 375 of the laws of  2012,  paragraph  3  as  amended,
 paragraph 5 as added, and paragraphs 6, 7 and 8 as renumbered by chapter
 128 of the laws of 2007, is amended to read as follows:
   (g-1) Solar energy system equipment 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 solar energy system equip-
 ment  expenditures,  except as provided in subparagraph (D) of paragraph
 two of this subsection. This credit  shall  not  exceed  three  thousand
 seven  hundred fifty dollars for qualified solar energy equipment placed
 in service before September first, two thousand six, [and] five thousand
 dollars for qualified solar energy equipment placed  in  service  on  or
 after  September  first,  two  thousand  six AND BEFORE APRIL FIRST, TWO
 THOUSAND TWENTY-THREE, AND TEN  THOUSAND  DOLLARS  FOR  QUALIFIED  SOLAR
 ENERGY EQUIPMENT PLACED IN SERVICE ON OR AFTER APRIL FIRST, TWO THOUSAND
 TWENTY-THREE.
   (2) Qualified solar energy system equipment expenditures. (A) The term
 "qualified  solar  energy  system equipment expenditures" means expendi-
 tures for:
   (i) the purchase of solar 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  principal
 residence  at  the  time  the solar energy system equipment is placed in
 service;
   (ii) the lease of solar energy system equipment under a written agree-
 ment 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 solar
 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 solar
 energy system equipment owned by a person other than the taxpayer  which
 S. 4009--B                         51
 
 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 principal residence at the time the solar 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 solar energy system equipment.
   (C)  Such  qualified  expenditures  for  the  purchase of solar energy
 system equipment shall not include interest or other finance charges.
   (D) Such qualified expenditures for the lease of solar  energy  system
 equipment  or  the  purchase  of  power  under an agreement described in
 clauses (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-
 ment  referenced  in  clauses  (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) Solar energy system  equipment.  The  term  "solar  energy  system
 equipment"  shall  mean  an  arrangement  or  combination  of components
 utilizing solar radiation, which, when installed in a residence, produc-
 es AND STORES energy designed to provide heating, cooling, hot water  or
 electricity  for  use  in such residence. Such arrangement or components
 shall not include equipment connected to solar energy  system  equipment
 that  is  a  component  of part or parts of a non-solar energy system or
 which uses any sort of recreational facility or equipment as  a  storage
 medium.  Solar  energy  system equipment that generates AND STORES elec-
 tricity for use in a residence must conform to  applicable  requirements
 set  forth  in  section sixty-six-j of the public service law. Provided,
 however, where solar energy system equipment is purchased and  installed
 by  a condominium management association or a cooperative housing corpo-
 ration, for purposes of this subsection only, the term  "ten  kilowatts"
 in  such  section  sixty-six-j  shall be read as ["fifty] "TEN kilowatts
 MULTIPLIED BY THE NUMBER OF OWNER-OCCUPIED UNITS IN THE  COOPERATIVE  OR
 CONDOMINIUM MANAGEMENT ASSOCIATION."
   (4)  Multiple  taxpayers.  Where  solar  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 solar energy system equipment contributed by
 each taxpayer.
   (5) Proportionate  share.  Where  solar  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] THEIR principal resi-
 dence.
 S. 4009--B                         52
 
   (6) Grants. For purposes of determining the amount of the  expenditure
 incurred in purchasing and installing solar energy system equipment, 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 nineteen
 hundred ninety-seven, in which the  solar  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. IN LIEU OF CARRYING OVER ANY SUCH
 EXCESS, A TAXPAYER WHO QUALIFIES AS  AN  OWNER  OF  A  NEW  BUSINESS  AS
 DEFINED IN PARAGRAPH TEN OF SUBSECTION (A) OF THIS SECTION MAY, AT THEIR
 OPTION,  RECEIVE  SUCH  EXCESS  AS A REFUND. ANY REFUND PAID PURSUANT TO
 THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT  OF  TAX
 AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED,
 HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. Paragraph 1 of subsection (g-4) of section 606 of the tax law, as
 added  by  section  1  of  part FF of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (1) General. An individual taxpayer shall be allowed a credit  against
 the  tax  imposed by this article equal to twenty-five percent of quali-
 fied geothermal  energy  system  expenditures,  except  as  provided  in
 subparagraph (D) of paragraph two of this subsection, not to exceed five
 thousand dollars FOR TAXABLE YEARS BEGINNING ON OR BEFORE JANUARY FIRST,
 TWO THOUSAND TWENTY-TWO AND NOT TO EXCEED TEN THOUSAND DOLLARS FOR TAXA-
 BLE  YEARS  BEGINNING  ON  AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
 THREE.
   § 3. Paragraph 9 of subsection (g-4) of section 606 of the tax law, as
 added by section 1 of part FF of chapter 59 of  the  laws  of  2022,  is
 amended to read as follows:
   (9)  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.  FOR TAXABLE YEARS  BEGINNING  ON
 OR  AFTER  JANUARY FIRST, TWO THOUSAND TWENTY-THREE, IN LIEU OF CARRYING
 OVER ANY SUCH EXCESS, A TAXPAYER WHO QUALIFIES AS  AN  OWNER  OF  A  NEW
 BUSINESS  AS  DEFINED IN PARAGRAPH TEN OF SUBSECTION (A) OF THIS SECTION
 MAY, AT THEIR OPTION, RECEIVE SUCH EXCESS AS A REFUND. ANY  REFUND  PAID
 PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAY-
 MENT  OF TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 4.  This act shall take effect immediately.
 
                                  PART II

   Section 1. Article 20-B of the tax law is REPEALED.
   § 2. Section 89-h of the state finance law is REPEALED.
   § 3. This act shall take effect May 1, 2023.
 S. 4009--B                         53
 
                                  PART JJ
 
   Section  1.  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.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2023.
 
                                  PART KK
 
   Section  1.  Paragraphs (a) and (b) 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, are amended to read as follows:
   (a)  This  section shall apply to [claims, records, or statements made
 under the] tax law VIOLATIONS 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; (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 in
 this subparagraph shall be deemed to modify or restrict the  application
 of such paragraphs to any act alleged that relates to a violation of the
 tax  law]  PROVIDED THAT (III) FOR PURPOSES OF APPLYING PARAGRAPH (H) OF
 SUBDIVISION ONE OF THIS SECTION TO A TAX LAW VIOLATION,  THE  PERSON  IS
 ALLEGED  TO HAVE KNOWINGLY CONCEALED OR KNOWINGLY AND IMPROPERLY AVOIDED
 AN OBLIGATION TO PAY TAXES TO THE STATE OR A LOCAL GOVERNMENT.
   (b) The attorney general shall consult with the  commissioner  of  the
 department of taxation and finance prior to filing or intervening in any
 action  under this article that is based on [the filing of false claims,
 records or statements made under the tax law] A  VIOLATION  OF  THE  TAX
 LAW.  If the state declines to participate or to authorize participation
 by a local government in such an action pursuant to subdivision  two  of
 section  one  hundred ninety of this article, the qui tam plaintiff must
 obtain approval from the attorney general before making  any  motion  to
 compel the department of taxation and finance to disclose tax records.
   §  2.  Nothing  in  this act shall be deemed to modify or restrict the
 application of paragraph (a), (b), (c), (d), (e), (f) or (g) of subdivi-
 S. 4009--B                         54
 
 sion 1 of section 189 of the state finance law to any act  alleged  that
 relates to a violation of the tax law.
   §  3.  This  act shall take effect immediately and in any pending case
 shall apply to any  tax  obligation  knowingly  concealed  or  knowingly
 avoided before, on, or after such effective date.
 
                                  PART LL
 
   Section  1.  Clause  (vi)  of  subparagraph  (B)  of  paragraph  1  of
 subsection (a) of section 601 of the tax law, as amended by section 1 of
 subpart A of part A of chapter 59 of the laws of  2022,  is  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 5.5% 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] 10.80% of
                                       excess over $5,000,000
 $25,000,000
 Over $25,000,000                      $[2,478,263] 2,578,263 plus
                                       [10.90] 11.40% of excess
                                       over $25,000,000
 
   § 2. Clause (vi) of subparagraph (B) of paragraph 1 of subsection  (b)
 of  section  601 of the tax law, as amended by section 2 of subpart A of
 part A of chapter 59 of the laws of 2022, is 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 5.5% 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] 10.80%
 S. 4009--B                         55
 
                                       of excess over $5,000,000
 $25,000,000
 Over $25,000,000                      $[2,494,163] 2,594,163 plus
                                       [10.90] 11.40% of excess
                                       over $25,000,000
 
   §  3. Clause (vi) of subparagraph (B) of paragraph 1 of subsection (c)
 of section 601 of the tax law, as amended by section 3 of subpart  A  of
 part A of chapter 59 of the laws of 2022, is 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 5.50% 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]  10.80%
                                       of excess over
 $25,000,000                           $5,000,000
 Over $25,000,000                      $[2,509,929] 2,609,929 plus
                                       [10.90] 11.40% of excess over
                                       $25,000,000
   § 4. Subsection (d-4) of section 601 of  the  tax  law,  as  added  by
 section  3  of subpart B of part A of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (d-4) Alternative tax table  benefit  recapture.  Notwithstanding  the
 provisions of subsection (d), (d-1), (d-2) or (d-3) of this section, for
 taxable years beginning on or after two thousand twenty-three and before
 two thousand twenty-eight, there is hereby imposed a supplemental tax in
 addition  to  the tax imposed under subsections (a), (b) and (c) of this
 section for the purpose of recapturing the benefit  of  the  tax  tables
 contained in such subsections. During these taxable years, any reference
 in this chapter to subsection (d), (d-1), (d-2) or (d-3) of this section
 shall be read as a reference to this subsection.
   (1) For resident married individuals filing joint returns and resident
 surviving spouses:
   (A)  If  New  York adjusted gross income is greater than $107,650, but
 not over $25,000,000:
   (i) the recapture base and incremental benefit shall be determined  by
 New York taxable income as follows:
 Greater than    Not over          Recapture Base    Incremental Benefit
 $27,900         $161,550          $0                $333
 $161,550        $323,200          $333              $807
 $323,200        $2,155,350        $1,140            $2,747
 $2,155,350      $5,000,000        $3,887            $60,350
 $5,000,000      $25,000,000       $64,237           $32,500
 S. 4009--B                         56

   (ii)  the  applicable  amount  shall be determined by New York taxable
 income as follows:
 Greater than Not over    Applicable Amount
 $27,900      $161,550    New York adjusted gross income minus $107,650
 $161,550     $323,200    New York adjusted gross income minus $161,550
 $323,200     $2,155,350  New York adjusted gross income minus $323,200
 $2,155,350   $5,000,000  New York adjusted gross income minus $2,155,350
 $5,000,000   $25,000,000 New York adjusted gross income minus $5,000,000
   (iii)  the  phase-in  fraction  shall  be a fraction, the numerator of
 which shall be the lesser of fifty thousand dollars  or  the  applicable
 amount and the denominator of which shall be fifty thousand dollars; and
   (iv)  the  supplemental  tax  due shall equal the sum of the recapture
 base and the product of (i) the incremental benefit and (ii) the  phase-
 in  fraction.  Provided, however, that if the New York taxable income of
 the taxpayer is less than twenty-seven thousand  nine  hundred  dollars,
 the  supplemental  tax shall equal the difference between the product of
 5.50 percent and New York taxable income and the tax  table  computation
 on  the New York taxable income set forth in paragraph one of subsection
 (a) of this section, multiplied by a fraction, the numerator of which is
 the lesser of fifty thousand dollars or New York adjusted  gross  income
 minus  one  hundred  seven  thousand  six hundred fifty dollars, and the
 denominator of which is fifty thousand dollars.
   (B) If New York adjusted gross  income  is  greater  than  twenty-five
 million  dollars,  the  supplemental  tax due shall equal the difference
 between the product of [10.90] 11.40 percent and New York taxable income
 and the tax table computation on the New York taxable income  set  forth
 in paragraph one of subsection (a) of this section.
   (2) For resident heads of households:
   (A)  If  New  York adjusted gross income is greater than $107,650, but
 not over $25,000,000:
   (i) the recapture base and incremental benefit shall be determined  by
 New York taxable income as follows:
 Greater than    Not over          Recapture Base    Incremental Benefit
 $107,650        $269,300          $0                $787
 $269,300        $1,616,450        $787              $2,289
 $1,616,450      $5,000,000        $3,076            $45,261
 $5,000,000      $25,000,000       $48,337           $32,500
   (ii)  the  applicable  amount  shall be determined by New York taxable
 income as follows:
 Greater than Not over    Applicable Amount
 $107,650     $269,300    New York adjusted gross income minus $107,650
 $269,300     $1,616,450  New York adjusted gross income minus $269,300
 $1,616,450   $5,000,000  New York adjusted gross income minus $1,616,450
 $5,000,000   $25,000,000 New York adjusted gross income minus $5,000,000
   (iii) the phase-in fraction shall be  a  fraction,  the  numerator  of
 which  shall  be  the lesser of fifty thousand dollars or the applicable
 amount and the denominator of which shall be fifty thousand dollars; and
   (iv) the supplemental tax due shall equal the  sum  of  the  recapture
 base  and the product of (i) the incremental benefit and (ii) the phase-
 in fraction. Provided, however, that if the New York taxable  income  of
 the  taxpayer  is less than one hundred seven thousand six hundred fifty
 dollars, the supplemental tax shall equal  the  difference  between  the
 product  of  6.00  percent and New York taxable income and the tax table
 computation on the New York taxable income set forth in paragraph one of
 subsection (b) of this section, multiplied by a fraction, the  numerator
 of  which  is  the lesser of fifty thousand dollars or New York adjusted
 S. 4009--B                         57
 
 gross income minus one hundred seven thousand six hundred fifty dollars,
 and the denominator of which is fifty thousand dollars.
   (B)  If  New  York  adjusted  gross income is greater than twenty-five
 million dollars, the supplemental tax due  shall  equal  the  difference
 between the product of [10.90] 11.40 percent and New York taxable income
 and  the  tax table computation on the New York taxable income set forth
 in paragraph one of subsection (b) of this section.
   (3) For resident unmarried individuals, resident  married  individuals
 filing separate returns and resident estates and trusts:
   (A)  If  New  York adjusted gross income is greater than $107,650, but
 not over $25,000,000:
   (i) the recapture base and incremental benefit shall be determined  by
 New York taxable income as follows:
 Greater than    Not over          Recapture Base    Incremental Benefit
 $80,650         $215,400          $0                $568
 $215,400        $1,077,550        $568              $1,831
 $1,077,550      $5,000,000        $2,399            $30,172
 $5,000,000      $25,000,000       $32,571           $32,500
   (ii)  the  applicable  amount  shall be determined by New York taxable
 income as follows:
 Greater than Not over    Applicable Amount
 $80,650      $215,400    New York adjusted gross income minus $107,650
 $215,400     $1,077,550  New York adjusted gross income minus $215,400
 $1,077,550   $5,000,000  New York adjusted gross income minus $1,077,550
 $5,000,000   $25,000,000 New York adjusted gross income minus $5,000,000
   (iii) the phase-in fraction shall be  a  fraction,  the  numerator  of
 which  shall  be  the lesser of fifty thousand dollars or the applicable
 amount and the denominator of which shall be fifty thousand dollars; and
   (iv) the supplemental tax due shall equal the  sum  of  the  recapture
 base  and the product of (i) the incremental benefit and (ii) the phase-
 in fraction. Provided, however, that if the New York taxable  income  of
 the taxpayer is less than eighty thousand six hundred fifty dollars, the
 supplemental  tax shall equal the difference between the product of 6.00
 percent and New York taxable income and the tax table computation on the
 New York taxable income set forth in paragraph one of subsection (c)  of
 this  section,  multiplied  by a fraction, the numerator of which is the
 lesser of fifty thousand dollars or New York adjusted gross income minus
 one hundred seven thousand six hundred fifty dollars, and the  denomina-
 tor of which is fifty thousand dollars.
   (B)  If  New  York  adjusted  gross income is greater than twenty-five
 million dollars, the supplemental tax due  shall  equal  the  difference
 between  the  product  of  [10.90  ]  11.40 percent and New York taxable
 income and the tax table computation on the New York taxable income  set
 forth in paragraph one of subsection (c) of this section.
   § 5. This act shall take effect immediately.
 
                                  PART MM
 
   Section  1. Subsection (d) of section 606 of the tax law is amended by
 adding two new paragraphs 9 and 10 to read as follows:
   (9) TAXPAYERS UTILIZING A FEDERAL INDIVIDUAL  TAXPAYER  IDENTIFICATION
 NUMBER. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-THREE, A TAXPAYER FILING USING A FEDERAL INDIVIDUAL TAXPAYER
 IDENTIFICATION NUMBER WHO OTHERWISE MEETS ALL OTHER ELIGIBILITY REQUIRE-
 MENTS  ESTABLISHED  FOR  THE  EARNED INCOME CREDIT ALLOWED UNDER SECTION
 THIRTY-TWO OF THE INTERNAL  REVENUE  CODE  SHALL  BE  ALLOWED  A  CREDIT
 S. 4009--B                         58
 
 PROVIDED  HEREIN  EQUAL  TO  (A) THE APPLICABLE PERCENTAGE OF THE EARNED
 INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE  INTERNAL  REVENUE
 CODE  FOR  THE  SAME  TAXABLE  YEAR, (B) REDUCED BY THE CREDIT PERMITTED
 UNDER SUBSECTION (B) OF THIS SECTION. THE CREDIT FOR TAXPAYERS UTILIZING
 A  FEDERAL  INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER SHALL BE ALLOCATED
 IN THE SAME MANNER AS THE CREDIT FOR COMPARABLE  TAXPAYERS  UTILIZING  A
 SOCIAL  SECURITY  NUMBER.  A  FEDERAL INDIVIDUAL TAXPAYER IDENTIFICATION
 NUMBER OR A SOCIAL SECURITY NUMBER MUST BE PROVIDED FOR EACH  SPOUSE  IN
 THE  CASE OF A COUPLE FILING JOINTLY OR SEPARATELY AND FOR EACH CHILD IN
 ORDER TO BE ELIGIBLE FOR THE CREDIT.  A  TAXPAYER  UTILIZING  A  FEDERAL
 INDIVIDUAL  TAXPAYER IDENTIFICATION NUMBER IS REQUIRED, UPON THE REQUEST
 FROM THE DEPARTMENT, TO PROVIDE (I) IDENTIFYING DOCUMENTS ACCEPTABLE FOR
 PURPOSES OF OBTAINING A NEW  YORK  DRIVER'S  LICENSE  AS  AUTHORIZED  BY
 SUBDIVISIONS  ONE  AND  SEVEN OF SECTION FIVE HUNDRED TWO OF THE VEHICLE
 AND TRAFFIC LAW AND RELATED REGULATIONS ADOPTED FOR PURPOSES  OF  ESTAB-
 LISHING  DOCUMENTS  ACCEPTABLE  TO  PROVE  IDENTITY AND (II) IDENTIFYING
 DOCUMENTS USED TO REPORT  EARNED  INCOME  FOR  THE  TAXABLE  YEAR.  UPON
 RECEIVING  A VALID SOCIAL SECURITY NUMBER ISSUED TO THAT TAXPAYER BY THE
 SOCIAL SECURITY ADMINISTRATION, THE TAXPAYER SHALL  NOTIFY  THE  DEPART-
 MENT, IN THE TIME AND MANNER PRESCRIBED BY THE DEPARTMENT.
   (10)  FOR  TAX  YEAR  TWO  THOUSAND TWENTY-TWO, THE COMMISSIONER SHALL
 ISSUE A PAYMENT OF A SUPPLEMENTAL EARNED INCOME TAX CREDIT  TO  RESIDENT
 TAXPAYERS  IN THE AMOUNT OF TWENTY-FIVE PERCENT OF THE EARNED INCOME TAX
 CREDIT CALCULATED AND ALLOWED PURSUANT TO THIS SUBSECTION. SUCH  PAYMENT
 SHALL BE ALLOWED TO RESIDENT TAXPAYERS WHO TIMELY FILED RETURNS PURSUANT
 TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, DETERMINED WITH REGARD
 TO  EXTENSIONS PURSUANT TO SECTION SIX HUNDRED FIFTY-SEVEN OF THIS ARTI-
 CLE. PROVIDED, HOWEVER, THAT NO PAYMENT SHALL BE ISSUED IF  IT  IS  LESS
 THAN TWENTY-FIVE DOLLARS.
   §  2.  Subsection  (d-1)  of  section 606 of the tax law is amended by
 adding two new paragraphs 10 and 11 to read as follows:
   (10) TAXPAYERS UTILIZING A FEDERAL INDIVIDUAL TAXPAYER  IDENTIFICATION
 NUMBER. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND  TWENTY-THREE,  A  TAXPAYER  DESCRIBED  IN  PARAGRAPH  TWO  OF THIS
 SUBSECTION FILING USING A  FEDERAL  INDIVIDUAL  TAXPAYER  IDENTIFICATION
 NUMBER  WHO  OTHERWISE  MEETS  ALL OTHER ELIGIBILITY REQUIREMENTS ESTAB-
 LISHED FOR THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF
 THE  INTERNAL  REVENUE  CODE  SHALL  BE ALLOWED A CREDIT PROVIDED HEREIN
 EQUAL TO (A) THE APPLICABLE  PERCENTAGE  OF  THE  EARNED  INCOME  CREDIT
 ALLOWED  UNDER  SECTION  THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE
 SAME TAXABLE YEAR, (B) REDUCED BY THE CREDIT PERMITTED UNDER  SUBSECTION
 (B)  OF THIS SECTION. THE CREDIT FOR TAXPAYERS UTILIZING A FEDERAL INDI-
 VIDUAL TAXPAYER IDENTIFICATION NUMBER SHALL BE  ALLOCATED  IN  THE  SAME
 MANNER AS THE CREDIT FOR COMPARABLE TAXPAYERS UTILIZING A SOCIAL SECURI-
 TY  NUMBER.  A  FEDERAL  INDIVIDUAL  TAXPAYER IDENTIFICATION NUMBER OR A
 SOCIAL SECURITY NUMBER MUST BE PROVIDED FOR EACH SPOUSE IN THE CASE OF A
 COUPLE FILING JOINTLY OR SEPARATELY AND FOR EACH CHILD IN  ORDER  TO  BE
 ELIGIBLE  FOR  THE  CREDIT.    A TAXPAYER UTILIZING A FEDERAL INDIVIDUAL
 TAXPAYER IDENTIFICATION NUMBER IS REQUIRED, UPON THE  REQUEST  FROM  THE
 DEPARTMENT, TO PROVIDE (I) IDENTIFYING DOCUMENTS ACCEPTABLE FOR PURPOSES
 OF  OBTAINING  A NEW YORK DRIVER'S LICENSE AS AUTHORIZED BY SUBDIVISIONS
 ONE AND SEVEN OF SECTION FIVE HUNDRED TWO OF THE VEHICLE AND TRAFFIC LAW
 AND RELATED REGULATIONS ADOPTED FOR PURPOSES OF  ESTABLISHING  DOCUMENTS
 ACCEPTABLE  TO  PROVE  IDENTITY  AND  (II) IDENTIFYING DOCUMENTS USED TO
 REPORT EARNED INCOME FOR THE TAXABLE YEAR. UPON RECEIVING A VALID SOCIAL
 SECURITY NUMBER ISSUED TO THAT TAXPAYER BY THE SOCIAL SECURITY  ADMINIS-
 S. 4009--B                         59
 
 TRATION,  THE  TAXPAYER  SHALL  NOTIFY  THE  DEPARTMENT, IN THE TIME AND
 MANNER PRESCRIBED BY THE DEPARTMENT.
   (11)  FOR  TAX  YEAR  TWO  THOUSAND TWENTY-TWO, THE COMMISSIONER SHALL
 ISSUE A PAYMENT OF A SUPPLEMENTAL ENHANCED EARNED INCOME TAX  CREDIT  IN
 THE  AMOUNT  OF  TWENTY-FIVE  PERCENT  OF THE ENHANCED EARNED INCOME TAX
 CREDIT CALCULATED AND ALLOWED PURSUANT TO THIS SUBSECTION. SUCH  PAYMENT
 SHALL  BE  ALLOWED  TO  TAXPAYERS  WHO  TIMELY FILED RETURNS PURSUANT TO
 SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, DETERMINED WITH REGARD TO
 EXTENSIONS PURSUANT TO SECTION SIX HUNDRED FIFTY-SEVEN OF THIS  ARTICLE.
 PROVIDED,  HOWEVER,  THAT  NO PAYMENT SHALL BE ISSUED IF IT IS LESS THAN
 TWENTY-FIVE DOLLARS.
   § 3. 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 MM of this act shall be
 as specifically set forth in the last section of such Parts.