Assembly Bill A11055

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11055
 
                           I N  A S S E M B L Y
 
                              April 24, 2026
                                ___________
 
 Introduced by M. of A. KAY -- read once and referred to the Committee on
   Ways and Means
 
 AN  ACT  to  amend the tax law and the state finance law, in relation to
   establishing the New York rural growth fund tax  credit  and  the  New
   York rural growth fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new section 50  to  read
 as follows:
   § 50. NEW YORK RURAL GROWTH FUND CREDIT. (A) DEFINITIONS. FOR PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1)  "AFFILIATE"  MEANS  A PERSON THAT, DIRECTLY OR INDIRECTLY THROUGH
 ONE OR MORE INTERMEDIARIES, CONTROLS, IS  CONTROLLED  BY,  OR  IS  UNDER
 COMMON  CONTROL WITH ANOTHER PERSON. FOR THE PURPOSES OF THIS PARAGRAPH,
 A PERSON IS "CONTROLLED BY" ANOTHER PERSON  IF  THE  CONTROLLING  PERSON
 HOLDS, DIRECTLY OR INDIRECTLY, THE MAJORITY VOTING OR OWNERSHIP INTEREST
 IN  THE  CONTROLLED PERSON OR HAS CONTROL OVER THE DAY-TO-DAY OPERATIONS
 OF THE CONTROLLED PERSON BY CONTRACT OR BY LAW.
   (2) "CLOSING DATE" MEANS THE DATE ON WHICH  A  RURAL  BUSINESS  GROWTH
 FUND HAS COLLECTED ALL OF THE AMOUNTS SPECIFIED BY SUBPARAGRAPHS (A) AND
 (B) OF PARAGRAPH SEVEN OF SUBDIVISION (B) OF THIS SECTION.
   (3) "CREDIT-ELIGIBLE CAPITAL CONTRIBUTION" MEANS AN INVESTMENT OF CASH
 BY  A  PERSON  IN A RURAL BUSINESS GROWTH FUND FOR WHICH TAX CREDITS ARE
 CERTIFIED THAT IS MADE IN EXCHANGE FOR AN EQUITY INTEREST IN, OR A  DEBT
 INSTRUMENT  ISSUED  BY,  SUCH RURAL BUSINESS GROWTH FUND. THE INVESTMENT
 SHALL PURCHASE AN EQUITY INTEREST IN THE RURAL BUSINESS GROWTH  FUND  OR
 PURCHASE, AT PAR VALUE OR PREMIUM, A DEBT INSTRUMENT ISSUED BY THE RURAL
 BUSINESS GROWTH FUND THAT MEETS ALL OF THE FOLLOWING CRITERIA:
   (A) THE DEBT INSTRUMENT HAS AN ORIGINAL MATURITY DATE OF AT LEAST FIVE
 YEARS AFTER THE DATE OF ISSUANCE;
   (B)  THE  DEBT  INSTRUMENT HAS A REPAYMENT SCHEDULE THAT IS NOT FASTER
 THAN A LEVEL PRINCIPAL AMORTIZATION OVER FIVE YEARS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14844-01-6
 A. 11055                            2
              

 
   (C) THE DEBT INSTRUMENT HAS  NO  INTEREST,  DISTRIBUTION,  OR  PAYMENT
 FEATURES  DEPENDENT ON THE RURAL BUSINESS GROWTH FUND'S PROFITABILITY OR
 THE SUCCESS OF THE RURAL GROWTH INVESTMENTS.
   (4)  "ELIGIBLE  INVESTMENT  AUTHORITY"  MEANS THE AMOUNT STATED ON THE
 NOTICE ISSUED UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B)
 OF THIS SECTION CERTIFYING THE RURAL BUSINESS GROWTH FUND.
   (5) "JOBS CREATED" MEANS THE NUMBER OF  PEOPLE  EMPLOYED  BY  A  RURAL
 BUSINESS  THAT HAS RECEIVED A RURAL GROWTH INVESTMENT DURING THE TAXABLE
 YEAR, DETERMINED BY AVERAGING THE NUMBER OF FULL-TIME EMPLOYEES EMPLOYED
 ON MARCH THIRTY-FIRST, JUNE THIRTIETH, SEPTEMBER THIRTIETH, AND DECEMBER
 THIRTY-FIRST OF SUCH TAXABLE YEAR, TO THE EXTENT SUCH NUMBER EXCEEDS THE
 NUMBER OF JOBS RETAINED. AN  INDIVIDUAL  SHALL  BE  CONSIDERED  EMPLOYED
 FULL-TIME  IF  SUCH INDIVIDUAL WORKS NOT LESS THAN THIRTY-FIVE HOURS PER
 WEEK, OR IF TWO OR MORE INDIVIDUALS TOGETHER CONSTITUTE  THE  EQUIVALENT
 OF ONE FULL-TIME POSITION.
   (6)  "JOBS  RETAINED"  MEANS THE NUMBER OF PERSONS EMPLOYED BY A RURAL
 BUSINESS THAT HAS RECEIVED A RURAL GROWTH INVESTMENT DURING THE  TAXABLE
 YEAR, DETERMINED BY AVERAGING THE NUMBER OF FULL-TIME EMPLOYEES EMPLOYED
 ON MARCH THIRTY-FIRST, JUNE THIRTIETH, SEPTEMBER THIRTIETH, AND DECEMBER
 THIRTY-FIRST  OF  THE  TAXABLE  YEAR  IN  WHICH THE INITIAL RURAL GROWTH
 INVESTMENT WAS MADE. AN INDIVIDUAL SHALL BE  CONSIDERED  EMPLOYED  FULL-
 TIME  IF SUCH INDIVIDUAL WORKS NOT LESS THAN THIRTY-FIVE HOURS PER WEEK,
 OR IF TWO OR MORE INDIVIDUALS TOGETHER CONSTITUTE THE EQUIVALENT OF  ONE
 FULL-TIME POSITION.
   (7) "PRINCIPAL BUSINESS OPERATIONS IN NEW YORK STATE" MEANS A BUSINESS
 THAT HAS AT LEAST EIGHTY PERCENT OF ITS EMPLOYEES WHO RESIDE IN NEW YORK
 STATE,  THE INDIVIDUALS WHO RECEIVE AT LEAST EIGHTY PERCENT OF THE BUSI-
 NESS'S PAYROLL RESIDE IN NEW YORK STATE, OR THE BUSINESS HAS  AGREED  TO
 USE  THE  PROCEEDS  OF  A  RURAL  GROWTH INVESTMENT TO RELOCATE AT LEAST
 EIGHTY PERCENT OF ITS EMPLOYEES TO NEW YORK STATE WITHIN  TWELVE  MONTHS
 OF RECEIVING THE INVESTMENT BY A RURAL BUSINESS GROWTH FUND.
   (8) "RURAL AREA" SHALL HAVE THE SAME MEANING AS DEFINED IN SUBDIVISION
 SEVEN OF SECTION FOUR HUNDRED EIGHTY-ONE OF THE EXECUTIVE LAW.
   (9)  (A)  "RURAL  BUSINESS"  MEANS ANY BUSINESS THAT HAS ITS PRINCIPAL
 BUSINESS OPERATIONS IN NEW YORK STATE THAT, AT THE TIME OF  THE  INITIAL
 INVESTMENT  IN  THE BUSINESS BY A RURAL BUSINESS GROWTH FUND, EMPLOYS NO
 MORE THAN TWO HUNDRED FIFTY FULL-TIME EMPLOYEES AND HAS EARNED NOT  MORE
 THAN  FIFTEEN  MILLION  DOLLARS  IN NET INCOME FOR THE PRECEDING TAXABLE
 YEAR. A "RURAL BUSINESS" SHALL EXCLUDE THE FOLLOWING:
   (I) A COUNTRY CLUB;
   (II) A RACETRACK OR OTHER FACILITY USED FOR GAMBLING;
   (III) A STORE FOR WHICH THE PRINCIPAL PURPOSE IS THE SALE OF ALCOHOLIC
 BEVERAGES FOR CONSUMPTION OFF PREMISES;
   (IV) A MASSAGE PARLOR;
   (V) A HOT TUB FACILITY;
   (VI) A SUNTAN FACILITY;
   (VII) A BUSINESS ENGAGED IN THE DEVELOPMENT OR HOLDING OF  INTANGIBLES
 FOR SALE;
   (VIII) A PRIVATE OR COMMERCIAL GOLF COURSE;
   (IX)  A BUSINESS THAT DERIVES OR PROJECTS TO DERIVE FIFTEEN PERCENT OR
 MORE OF ITS NET INCOME FROM THE RENTAL OR SALE OF REAL PROPERTY,  EXCEPT
 ANY  BUSINESS  THAT  IS  A SPECIAL PURPOSE ENTITY PRINCIPALLY OWNED BY A
 PRINCIPAL USER OF THAT PROPERTY FORMED SOLELY FOR THE PURPOSE  OF  RENT-
 ING,  EITHER  DIRECTLY  OR  INDIRECTLY, OR SELLING REAL PROPERTY BACK TO
 SUCH PRINCIPAL USER IF SUCH  PRINCIPAL  USER  DOES  NOT  DERIVE  FIFTEEN
 A. 11055                            3
 
 PERCENT  OR  MORE OF ITS GROSS ANNUAL REVENUE FROM THE RENTAL OR SALE OF
 REAL PROPERTY; OR
   (X) A PUBLICLY TRADED BUSINESS OR ANY BUSINESS OR ORGANIZATION THAT IS
 EXEMPT  FROM  TAXATION UNDER SECTION 501(C) OF THE INTERNAL REVENUE CODE
 OR  ANY  FOR-PROFIT  ENTITY  THAT  IS  DIRECTLY  OR  INDIRECTLY   OWNED,
 CONTROLLED,  OR  OPERATED BY, OR UNDER COMMON CONTROL WITH, AN ORGANIZA-
 TION EXEMPT FROM TAXATION UNDER SECTION 501(C) OF THE  INTERNAL  REVENUE
 CODE.
   (B)  FOR  PURPOSES  OF  THIS  PARAGRAPH,  "NET  INCOME"  MEANS FEDERAL
 ADJUSTED GROSS INCOME AS REQUIRED TO  BE  REPORTED  UNDER  THE  INTERNAL
 REVENUE  CODE  LESS  FEDERAL  AND  STATE TAXES IMPOSED ON OR MEASURED BY
 INCOME. ANY BUSINESS WHICH IS CLASSIFIED AS A RURAL BUSINESS AT THE TIME
 OF THE INITIAL INVESTMENT IN SUCH BUSINESS BY A  RURAL  BUSINESS  GROWTH
 FUND  SHALL  REMAIN  CLASSIFIED  AS  A  RURAL  BUSINESS  AND MAY RECEIVE
 FOLLOW-ON INVESTMENTS FROM ANY RURAL  BUSINESS  GROWTH  FUND,  AND  SUCH
 FOLLOW-ON  INVESTMENTS  SHALL  QUALIFY  AS  A  RURAL  GROWTH  INVESTMENT
 PROVIDED IT OTHERWISE MEETS THE DEFINITION OF RURAL  BUSINESS  WITH  THE
 EXCEPTION  OF  THE EMPLOYEE LIMITATION AND NET INCOME LIMITATION IN SUCH
 DEFINITION.
   (10) "RURAL BUSINESS GROWTH FUND" MEANS AN  ENTITY  CERTIFIED  BY  THE
 DEPARTMENT UNDER THIS SECTION.
   (11)  "RURAL GROWTH INVESTMENT" MEANS ANY CAPITAL OR EQUITY INVESTMENT
 IN A RURAL BUSINESS OR ANY LOAN TO A RURAL BUSINESS WITH A  TERM  OF  AT
 LEAST ONE YEAR.
   (12) "TAX CREDIT CERTIFICATE" MEANS THE DOCUMENT ISSUED BY THE DEPART-
 MENT  TO A PERSON WHO HAS MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 A RURAL BUSINESS GROWTH FUND.
   (13) "TAXABLE YEAR", WHEN USED IN REFERENCE TO AN  INSURANCE  COMPANY,
 MEANS  THE CALENDAR YEAR ENDING ON THE THIRTY-FIRST DAY OF DECEMBER NEXT
 PRECEDING THE DAY THE ANNUAL REPORT IS REQUIRED  TO  BE  RETURNED  UNDER
 SUBDIVISION (D) OF THIS SECTION.
   (14) "DEPARTMENT" MEANS THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
   (B)  CERTIFICATION.  (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND TWEN-
 TY-SIX, AN APPLICANT THAT HAS DEVELOPED A BUSINESS  PLAN  TO  INVEST  IN
 RURAL  BUSINESS  IN  THIS  STATE  AND HAS SUCCESSFULLY SOLICITED PRIVATE
 INVESTORS TO MAKE CAPITAL CONTRIBUTIONS IN SUPPORT OF SUCH BUSINESS PLAN
 MAY APPLY TO THE DEPARTMENT FOR CERTIFICATION AS A RURAL BUSINESS GROWTH
 FUND. SUCH APPLICATION SHALL INCLUDE ALL OF THE FOLLOWING:
   (A) THE TOTAL ELIGIBLE INVESTMENT AUTHORITY SOUGHT  BY  THE  APPLICANT
 UNDER THE BUSINESS PLAN;
   (B)  DOCUMENTS  AND OTHER EVIDENCE SUFFICIENT TO PROVE THAT THE APPLI-
 CANT MEETS ALL OF THE FOLLOWING CRITERIA: (I) THE APPLICANT OR AN AFFIL-
 IATE OF THE APPLICANT IS LICENSED AS A RURAL BUSINESS INVESTMENT COMPANY
 UNDER 7 U.S.C. 2009CC, OR AS A SMALL BUSINESS INVESTMENT  COMPANY  UNDER
 15  U.S.C.    681, AND A CERTIFICATE EXECUTED BY AN EXECUTIVE OFFICER OF
 THE APPLICANT ATTESTING THAT SUCH LICENSE REMAINS IN EFFECT AND HAS  NOT
 BEEN  REVOKED, AND (II) AS OF THE DATE THE APPLICATION IS SUBMITTED, THE
 APPLICANT HAS INVESTED MORE THAN ONE HUNDRED MILLION DOLLARS IN  OPERAT-
 ING  COMPANIES  IN  RURAL  AREAS  LOCATED  INSIDE OR OUTSIDE OF NEW YORK
 STATE. IN COMPUTING INVESTMENTS UNDER THIS  SUBDIVISION,  THE  APPLICANT
 MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT;
   (C)  AN  ESTIMATE OF THE NUMBER OF JOBS CREATED AND JOBS RETAINED THAT
 WILL RESULT FROM THE APPLICANT'S RURAL GROWTH INVESTMENTS, TOGETHER WITH
 THE ANTICIPATED AVERAGE WAGE PER JOB;
   (D) A REVENUE IMPACT ASSESSMENT FOR  THE  APPLICANT'S  PROPOSED  RURAL
 GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE-
 A. 11055                            4
 
 PENDENT  ECONOMIC  FORECASTING FIRM USING A DYNAMIC ECONOMIC FORECASTING
 MODEL.   THE REVENUE IMPACT ASSESSMENT  SHALL  ANALYZE  THE  APPLICANT'S
 BUSINESS  PLAN  OVER THE TEN YEARS FOLLOWING THE DATE THE APPLICATION IS
 SUBMITTED TO THE DEPARTMENT;
   (E)  A  SIGNED  AFFIDAVIT FROM EACH INVESTOR SUCCESSFULLY SOLICITED BY
 THE APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN  SUPPORT
 OF  THE  BUSINESS  PLAN. EACH AFFIDAVIT SHALL INCLUDE INFORMATION SUFFI-
 CIENT FOR THE DEPARTMENT TO IDENTIFY THE INVESTOR AND  SHALL  STATE  THE
 AMOUNT OF THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION; AND
   (F) A NON-REFUNDABLE APPLICATION FEE OF TEN THOUSAND DOLLARS.
   (2)  THE DEPARTMENT SHALL REVIEW AND MAKE A DETERMINATION WITH RESPECT
 TO EACH APPLICATION SUBMITTED UNDER PARAGRAPH ONE  OF  THIS  SUBDIVISION
 WITHIN  THIRTY DAYS OF RECEIPT. THE DEPARTMENT SHALL MAKE DETERMINATIONS
 ON THE APPLICATIONS IN THE ORDER IN WHICH THE APPLICATIONS ARE  RECEIVED
 BY  THE  DEPARTMENT. APPLICATIONS RECEIVED BY THE DEPARTMENT ON THE SAME
 DAY SHALL BE DEEMED TO HAVE  BEEN  RECEIVED  SIMULTANEOUSLY.  EXCEPT  AS
 PROVIDED  IN  PARAGRAPH  FOUR  OF  SUBDIVISION  (C) OF THIS SECTION, THE
 DEPARTMENT SHALL NOT APPROVE MORE THAN TWO HUNDRED FIFTY MILLION DOLLARS
 IN ELIGIBLE INVESTMENT AUTHORITY OR MORE THAN ONE  HUNDRED  SEVENTY-FIVE
 MILLION DOLLARS IN TAX CREDITS.
   (3)  THE  DEPARTMENT  SHALL  DENY  AN APPLICATION SUBMITTED UNDER THIS
 SECTION IF ANY OF THE FOLLOWING ARE TRUE:
   (A) THE APPLICATION IS INCOMPLETE;
   (B) THE APPLICATION FEE IS NOT PAID IN FULL;
   (C) THE APPLICANT DOES NOT  SATISFY  ALL  THE  CRITERIA  DESCRIBED  IN
 SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION;
   (D)  THE REVENUE IMPACT ASSESSMENT SUBMITTED UNDER SUBPARAGRAPH (D) OF
 PARAGRAPH ONE OF THIS SUBDIVISION DOES NOT DEMONSTRATE THAT  THE  APPLI-
 CANT'S  BUSINESS  PLAN WILL RESULT IN A POSITIVE ECONOMIC IMPACT ON THIS
 STATE OVER A TEN-YEAR PERIOD THAT EXCEEDS THE  CREDIT  ELIGIBLE  CAPITAL
 CONTRIBUTIONS SOUGHT BY THE APPLICANT; OR
   (E) THE DEPARTMENT HAS ALREADY APPROVED THE MAXIMUM AMOUNT OF ELIGIBLE
 INVESTMENT  AUTHORITY  AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS ALLOWED
 UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
   (4) IF THE DEPARTMENT DENIES AN APPLICATION UNDER PARAGRAPH  THREE  OF
 THIS  SUBDIVISION, THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION
 OF THE APPLICATION TO THE  APPLICANT.  SUCH  NOTICE  SHALL  INCLUDE  THE
 REASONS  THAT  THE APPLICATION WAS DENIED. IF THE APPLICATION WAS DENIED
 FOR ANY REASON OTHER THAN THE REASON SPECIFIED IN  SUBPARAGRAPH  (E)  OF
 PARAGRAPH  THREE  OF  THIS  SUBDIVISION, THE APPLICANT MAY PROVIDE ADDI-
 TIONAL INFORMATION TO THE  DEPARTMENT  TO  COMPLETE,  CLARIFY,  OR  CURE
 DEFECTS  IN THE APPLICATION. THE ADDITIONAL INFORMATION SHALL BE SUBMIT-
 TED WITHIN THIRTY DAYS AFTER THE DATE THE NOTICE OF DENIAL WAS  SENT  BY
 THE  DEPARTMENT.  IF THE PERSON OR ENTITY SUBMITS ADDITIONAL INFORMATION
 WITHIN THIRTY DAYS, THE  DEPARTMENT  SHALL  RECONSIDER  THE  APPLICATION
 WITHIN  THIRTY  DAYS  AFTER  RECEIVING  SUCH ADDITIONAL INFORMATION. IF,
 AFTER SUBMISSION OF ADDITIONAL INFORMATION, THE APPLICATION IS APPROVED,
 THEN THE SUBMISSION DATE SHALL BE THE DATE OF THE ORIGINAL SUBMISSION OF
 THE APPLICATION. IF THE PERSON OR  ENTITY  DOES  NOT  SUBMIT  ADDITIONAL
 INFORMATION  WITHIN THIRTY DAYS AFTER THE NOTICE OF DENIAL WAS SENT, THE
 APPLICANT MAY SUBMIT A NEW APPLICATION WITH A NEW SUBMISSION DATE AT ANY
 TIME.
   (5) IF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS  WOULD
 RESULT  IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED BY
 PARAGRAPH TWO OF THIS SUBDIVISION, THE DEPARTMENT  SHALL  PROPORTIONALLY
 REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL
 A. 11055                            5
 
 CONTRIBUTIONS  FOR  EACH  APPROVED  APPLICATION  AS  NECESSARY  TO AVOID
 EXCEEDING THE LIMIT.
   (6)  THE  DEPARTMENT  SHALL  NOT  DENY  A RURAL BUSINESS GROWTH FUND'S
 APPLICATION OR REDUCE THE REQUESTED ELIGIBLE  INVESTMENT  AUTHORITY  FOR
 ANY  REASONS OTHER THAN THOSE DESCRIBED IN PARAGRAPH THREE AND PARAGRAPH
 FIVE OF THIS SUBDIVISION. IF THE DEPARTMENT APPROVES  SUCH  APPLICATION,
 THE DEPARTMENT SHALL:
   (A)  ISSUE A WRITTEN NOTICE CERTIFYING THAT THE APPLICANT QUALIFIES AS
 A RURAL BUSINESS GROWTH FUND, SPECIFYING THE AMOUNT OF  THE  APPLICANT'S
 ELIGIBLE  INVESTMENT  AUTHORITY, AND CERTIFYING AND MAKING AVAILABLE TAX
 CREDITS IN AN AGGREGATE AMOUNT EQUAL TO SEVENTY PERCENT OF SUCH ELIGIBLE
 INVESTMENT AUTHORITY, TO BE ALLOCATED AMONG INVESTORS IN ACCORDANCE WITH
 THE AFFIDAVITS SUBMITTED PURSUANT TO SUBPARAGRAPH (E) OF  PARAGRAPH  ONE
 OF THIS SUBDIVISION;
   (B)  TO EACH INVESTOR WHOSE AFFIDAVIT WAS INCLUDED IN THE APPLICATION,
 ISSUE A TAX CREDIT CERTIFICATE SPECIFYING THE AMOUNT OF THE  TAX  CREDIT
 AND  THE  UTILIZATION  SCHEDULE OF SUCH TAX CREDIT, WHICH, IN THE AGGRE-
 GATE, SHALL EQUAL SEVENTY PERCENT OF THE APPLICANT'S ELIGIBLE INVESTMENT
 AUTHORITY; AND
   (C) SUBMIT TO THE COMMISSIONER A COPY OF EACH TAX  CREDIT  CERTIFICATE
 ISSUED UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH.
   (7)  A RURAL BUSINESS GROWTH FUND WHOSE APPLICATION WAS ACCEPTED SHALL
 COMPLETE SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH WITHIN  SIXTY  DAYS
 OF  RECEIVING  THE  WRITTEN  NOTICE  ISSUED  UNDER PARAGRAPH SIX OF THIS
 SUBDIVISION AND SHALL COMPLETE THE REQUIREMENTS SET  FORTH  IN  SUBPARA-
 GRAPH  (C)  OF  THIS  PARAGRAPH  WITHIN SIXTY-FIVE DAYS OF RECEIVING THE
 WRITTEN NOTICE ISSUED UNDER PARAGRAPH SIX OF THIS SUBDIVISION:
   (A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES-
 TOR WHOSE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS ARE DESCRIBED IN AFFIDA-
 VITS SUBMITTED PURSUANT TO SUBPARAGRAPH (E) OF  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION IN THE FORM OF CASH PAID IN EXCHANGE FOR EQUITY INTERESTS OR
 DEBT INSTRUMENTS.
   (B)  COLLECT  ONE OR MORE INVESTMENTS OF CASH, WHICH SHALL PURCHASE AN
 EQUITY INTEREST IN THE RURAL BUSINESS GROWTH FUND OR A  DEBT  INSTRUMENT
 ISSUED BY THE RURAL BUSINESS GROWTH FUND AT PAR VALUE OR PREMIUM, WITH A
 MATURITY  DATE  OF  AT LEAST FIVE YEARS FROM THE CLOSING DATE THAT, WHEN
 ADDED TO THE CONTRIBUTIONS COLLECTED  UNDER  SUBPARAGRAPH  (A)  OF  THIS
 PARAGRAPH,  EQUAL THE FUND'S ELIGIBLE INVESTMENT AUTHORITY. AT LEAST TEN
 PERCENT OF THE FUND'S ELIGIBLE INVESTMENT AUTHORITY SHALL BE COMPOSED OF
 CAPITAL RAISED DIRECTLY OR INDIRECTLY BY AFFILIATES OF THE  RURAL  BUSI-
 NESS  GROWTH  FUND, INCLUDING EMPLOYEES, OFFICERS, AND DIRECTORS OF SUCH
 AFFILIATES.
   (C) SEND TO THE DEPARTMENT DOCUMENTATION SUFFICIENT TO PROVE THAT  THE
 AMOUNTS  DESCRIBED  IN  SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH HAVE
 BEEN COLLECTED. IF THE RURAL BUSINESS GROWTH FUND FAILS TO FULLY  COMPLY
 WITH  THIS  PARAGRAPH,  THE  RURAL  BUSINESS GROWTH FUND'S CERTIFICATION
 SHALL LAPSE.
   (8) ELIGIBLE INVESTMENT AUTHORITY  AND  CORRESPONDING  CREDIT-ELIGIBLE
 CAPITAL  CONTRIBUTIONS  ELIGIBLE  FOR TAX CREDITS THAT LAPSE UNDER PARA-
 GRAPH SEVEN OF THIS SUBDIVISION SHALL NOT COUNT TOWARD  THE  LIMITATIONS
 ON  TOTAL  ELIGIBLE  INVESTMENT  AUTHORITY  AND  CREDIT-ELIGIBLE CAPITAL
 CONTRIBUTIONS PRESCRIBED IN PARAGRAPH  TWO  OF  THIS  SUBDIVISION.  ONCE
 ELIGIBLE  INVESTMENT  AUTHORITY  HAS  LAPSED, THE DEPARTMENT SHALL FIRST
 AWARD SUCH LAPSED AUTHORITY PRO RATA TO EACH RURAL BUSINESS GROWTH  FUND
 THAT  WAS  AWARDED LESS THAN THE REQUESTED ELIGIBLE INVESTMENT AUTHORITY
 A. 11055                            6
 
 UNDER PARAGRAPH FIVE OF THIS SUBDIVISION. ANY REMAINING ELIGIBLE INVEST-
 MENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT TO NEW APPLICANTS.
   (9)  APPLICATION FEES SUBMITTED TO THE DEPARTMENT PURSUANT TO SUBPARA-
 GRAPH (F) OF PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE CREDITED TO  THE
 NEW  YORK  RURAL GROWTH FUND, AS ESTABLISHED PURSUANT TO SECTION NINETY-
 NINE-UU OF THE STATE FINANCE LAW.
   (C) REVOCATION OF CERTIFICATION  AND  PENALTIES.  (1)  THE  DEPARTMENT
 SHALL  REVOKE  A  TAX CREDIT CERTIFICATE ISSUED UNDER SUBDIVISION (B) OF
 THIS SECTION IF ANY OF THE FOLLOWING OCCUR WITH RESPECT TO A RURAL BUSI-
 NESS GROWTH FUND BEFORE THE FUND EXITS THE PROGRAM PURSUANT TO PARAGRAPH
 FIVE OF THIS SUBDIVISION:
   (A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE  CAPI-
 TAL  CONTRIBUTION  WAS  MADE  DOES NOT INVEST ONE HUNDRED PERCENT OF ITS
 ELIGIBLE INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS  STATE
 WITHIN TWO YEARS OF THE CLOSING DATE;
   (B)  AFTER  INVESTING  ONE  HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT
 AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL  BUSINESS
 GROWTH FUND FAILS TO MAINTAIN SUCH INVESTMENT UNTIL THE SEVENTH ANNIVER-
 SARY  OF  THE CLOSING DATE. FOR PURPOSES OF THIS SUBDIVISION, AN INVEST-
 MENT SHALL BE DEEMED "MAINTAINED" EVEN IF  THE  INVESTMENT  IS  SOLD  OR
 REPAID  SO  LONG  AS  THE RURAL BUSINESS GROWTH FUND REINVESTS AN AMOUNT
 EQUAL TO THE CAPITAL RETURNED OR RECOVERED BY THE FUND FROM THE ORIGINAL
 INVESTMENT, EXCLUSIVE OF ANY PROFITS REALIZED,  IN  OTHER  RURAL  GROWTH
 INVESTMENTS  IN  THIS  STATE WITHIN TWELVE MONTHS OF THE RECEIPT OF SUCH
 CAPITAL. AMOUNTS RECEIVED PERIODICALLY BY A RURAL BUSINESS  GROWTH  FUND
 SHALL  BE TREATED AS CONTINUALLY INVESTED IN RURAL GROWTH INVESTMENTS IF
 THE AMOUNTS ARE REINVESTED IN ONE OR MORE RURAL  GROWTH  INVESTMENTS  BY
 THE  END  OF  THE  FOLLOWING CALENDAR YEAR. A RURAL BUSINESS GROWTH FUND
 SHALL NOT BE REQUIRED TO REINVEST CAPITAL  RETURNED  FROM  RURAL  GROWTH
 INVESTMENTS IN THE TWELVE MONTHS IMMEDIATELY PRECEDING THE SEVENTH ANNI-
 VERSARY  OF THE CLOSING DATE, AND SUCH RURAL GROWTH INVESTMENTS SHALL BE
 CONSIDERED HELD CONTINUOUSLY BY THE RURAL BUSINESS GROWTH  FUND  THROUGH
 THE SEVENTH ANNIVERSARY OF THE CLOSING DATE;
   (C)  THE  RURAL  BUSINESS GROWTH FUND INVESTS MORE THAN THE GREATER OF
 FIVE MILLION DOLLARS  OR  TWENTY  PERCENT  OF  ITS  ELIGIBLE  INVESTMENT
 AUTHORITY  IN  THE  SAME  RURAL  BUSINESS, INCLUDING AMOUNTS INVESTED IN
 AFFILIATES OF THE RURAL BUSINESS BUT EXCLUDING AMOUNTS REINVESTED IN THE
 RURAL BUSINESS GROWTH FUND WITH REPAID OR REDEEMED RURAL BUSINESS GROWTH
 INVESTMENTS, PROVIDED SUCH REINVESTMENTS SHALL  NOT  COUNT  TOWARDS  THE
 REQUIREMENT OF SUBPARAGRAPH (A) OF THIS PARAGRAPH; OR
   (D)  THE RURAL BUSINESS GROWTH FUND MAKES A RURAL GROWTH INVESTMENT IN
 A RURAL BUSINESS THAT DIRECTLY OR INDIRECTLY THROUGH AN AFFILIATE  OWNS,
 HAS  THE RIGHT TO ACQUIRE AN OWNERSHIP INTEREST, MAKE A LOAN TO, OR MAKE
 AN INVESTMENT IN THE RURAL BUSINESS GROWTH FUND,  AN  AFFILIATE  OF  THE
 RURAL  BUSINESS GROWTH FUND, OR AN INVESTOR IN THE RURAL BUSINESS GROWTH
 FUND.  THIS PARAGRAPH SHALL NOT APPLY TO INVESTMENTS IN PUBLICLY  TRADED
 SECURITIES BY A RURAL BUSINESS OR AN OWNER OR AFFILIATE OF SUCH CONCERN.
   (2)  BEFORE  TAKING ACTION PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE
 OF THIS SUBDIVISION, THE DEPARTMENT  SHALL  NOTIFY  THE  RURAL  BUSINESS
 GROWTH FUND OF THE REASONS FOR THE PENDING ACTION. IF THE RURAL BUSINESS
 GROWTH  FUND  CORRECTS THE VIOLATIONS, OTHER THAN VIOLATIONS OF SUBPARA-
 GRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, OUTLINED IN  THE  NOTICE
 TO  THE SATISFACTION OF THE DEPARTMENT WITHIN ONE HUNDRED EIGHTY DAYS OF
 THE DATE THE NOTICE WAS SENT, THE DEPARTMENT SHALL NOT  REVOKE  THE  TAX
 CREDIT CERTIFICATES OR LEVY A FINE.
 A. 11055                            7
 
   (3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH
 ONE  OF  THIS  SUBDIVISION,  IT SHALL NOTIFY THE COMMISSIONER, WHO SHALL
 MAKE AN ASSESSMENT FOR THE AMOUNT OF THE CREDIT CLAIMED BY  THE  CERTIF-
 ICATE  HOLDER BEFORE THE CERTIFICATE WAS REVOKED. THE COMMISSIONER SHALL
 MAKE  THE  ASSESSMENT  WITHIN  ONE  YEAR  AFTER THE CERTIFICATE HAS BEEN
 REVOKED.
   (4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS
 SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND TAX  CRED-
 ITS  IDENTIFIED  ON SUCH CERTIFICATE SHALL NOT COUNT TOWARD THE LIMIT ON
 TOTAL ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL CONTRIB-
 UTIONS DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (B)  OF  THIS  SECTION.
 THE  DEPARTMENT  SHALL  FIRST  AWARD SUCH REVERTED AUTHORITY PRO RATA TO
 EACH RURAL BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE REQUESTED
 ELIGIBLE INVESTMENT AUTHORITY UNDER PARAGRAPH FIVE OF SUBDIVISION (B) OF
 THIS SECTION. ANY REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED
 BY THE DEPARTMENT TO NEW APPLICANTS.
   (5) (A) ON OR AFTER THE SEVENTH ANNIVERSARY OF  THE  CLOSING  DATE,  A
 RURAL  BUSINESS  GROWTH  FUND  THAT  HAS  NOT  COMMITTED ANY OF THE ACTS
 DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION MAY APPLY TO THE  DEPART-
 MENT  TO  EXIT THE PROGRAM AS A RURAL BUSINESS GROWTH FUND AND NO LONGER
 BE SUBJECT TO  REGULATION  UNDER  THIS  SECTION.  THE  DEPARTMENT  SHALL
 RESPOND  TO  THE  APPLICATION  WITHIN  THIRTY  DAYS AFTER RECEIVING SUCH
 APPLICATION. IN EVALUATING SUCH REQUEST, THE FACT  THAT  NO  TAX  CREDIT
 CERTIFICATES HAVE BEEN REVOKED WITH RESPECT TO THE RURAL BUSINESS GROWTH
 FUND  SHALL BE SUFFICIENT EVIDENCE TO PROVE THAT THE FUND IS ELIGIBLE TO
 EXIT THE PROGRAM. THE DEPARTMENT SHALL NOT UNREASONABLY DENY AN APPLICA-
 TION SUBMITTED UNDER THIS SUBDIVISION.
   (B) THE DEPARTMENT SHALL SEND WRITTEN NOTICE OF ITS DETERMINATION WITH
 RESPECT TO AN APPLICATION SUBMITTED UNDER SUBPARAGRAPH (A) OF THIS PARA-
 GRAPH TO THE RURAL BUSINESS GROWTH FUND. IF THE APPLICATION  IS  DENIED,
 THE NOTICE SHALL INCLUDE THE REASONS FOR SUCH DETERMINATION.
   (C)  THE  DEPARTMENT  SHALL NOT REVOKE A TAX CREDIT CERTIFICATE DUE TO
 ANY ACTIONS OF A RURAL BUSINESS GROWTH FUND THAT OCCUR  AFTER  THE  DATE
 THE FUND'S APPLICATION FOR EXITING THE PROGRAM IS APPROVED UNDER SUBPAR-
 AGRAPH (A) OF THIS PARAGRAPH.
   (6)  A  RURAL BUSINESS GROWTH FUND MAY, PRIOR TO MAKING A RURAL GROWTH
 INVESTMENT, REQUEST FROM THE DEPARTMENT A WRITTEN  DETERMINATION  AS  TO
 WHETHER  THE BUSINESS ENTITY IN WHICH IT PROPOSES TO INVEST QUALIFIES AS
 A RURAL BUSINESS. SUCH REQUEST SHALL BE IN  A  FORM  PRESCRIBED  BY  THE
 DEPARTMENT.  RURAL  BUSINESS  DETERMINATION  REQUESTS SHALL BE ACCEPTED,
 REVIEWED, AND APPROVED ON A ROLLING BASIS. THE DEPARTMENT SHALL ISSUE  A
 WRITTEN  DETERMINATION,  NOT LATER THAN THE TWENTIETH BUSINESS DAY AFTER
 THE DATE OF RECEIPT OF SUCH REQUEST, PROVIDED THE REQUEST  INCLUDES  ALL
 OF THE REQUIRED INFORMATION TO PERFORM SUCH REVIEW, AND SHALL NOTIFY THE
 RURAL BUSINESS GROWTH FUND OF ITS DETERMINATION. IF THE DEPARTMENT FAILS
 TO NOTIFY SUCH FUND OF ITS DETERMINATION WITHIN SUCH TWENTY BUSINESS DAY
 PERIOD, THE BUSINESS IN WHICH THE RURAL BUSINESS GROWTH FUND PROPOSES TO
 INVEST  SHALL  BE DEEMED TO QUALIFY AS A RURAL BUSINESS. A DETERMINATION
 OR DEEMED DETERMINATION UNDER THIS PARAGRAPH SHALL  BE  BINDING  ON  THE
 DEPARTMENT FOR ALL PURPOSES OF THIS SECTION.
   (7)  A RURAL BUSINESS GROWTH FUND SHALL BE SUBJECT TO A PENALTY IF THE
 AGGREGATE NUMBER OF JOBS CREATED AND JOBS RETAINED, AS REPORTED  IN  THE
 ANNUAL REPORTS SUBMITTED PURSUANT TO SUBDIVISION (D) OF THIS SECTION, IS
 LESS  THAN THE NUMBER OF JOBS CREATED AND JOBS RETAINED CERTIFIED IN THE
 DEPARTMENT'S NOTICE OF APPROVAL ISSUED UNDER PARAGRAPH SIX  OF  SUBDIVI-
 SION (B) OF THIS SECTION.
 A. 11055                            8
 
   (8)  THE  AMOUNT  OF  THE  PENALTY SHALL BE EQUAL TO THE AMOUNT OF TAX
 CREDITS ISSUED TO THE RURAL BUSINESS GROWTH FUND PURSUANT TO TAX  CREDIT
 CERTIFICATES ISSUED UNDER SUBDIVISION (B) OF THIS SECTION, MULTIPLIED BY
 A FRACTION:
   (A)  THE  NUMERATOR  OF  WHICH IS THE DIFFERENCE BETWEEN THE NUMBER OF
 JOBS CREATED AND JOBS RETAINED CERTIFIED IN THE NOTICE OF  APPROVAL  AND
 THE  AGGREGATE  NUMBER  OF  JOBS  CREATED  AND  JOBS  RETAINED  ACTUALLY
 REPORTED; AND
   (B) THE DENOMINATOR OF WHICH IS THE NUMBER OF JOBS  CREATED  AND  JOBS
 RETAINED CERTIFIED IN THE NOTICE OF APPROVAL.
   (9)  PRIOR  TO  MAKING  ANY  DISTRIBUTION TO EQUITY HOLDERS, THE RURAL
 BUSINESS GROWTH FUND SHALL DEDUCT THE AMOUNT OF ANY  PENALTY  CALCULATED
 PURSUANT TO PARAGRAPH SEVEN OF THIS SUBDIVISION AND REMIT SUCH AMOUNT TO
 THE DEPARTMENT.
   (D) REPORTS. (1) A RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT TO
 THE  DEPARTMENT  ON OR BEFORE THE FIRST DAY OF MARCH AFTER EACH ANNIVER-
 SARY OF THE CLOSING DATE UNTIL THE RURAL BUSINESS GROWTH FUND HAS EXITED
 THE PROGRAM IN ACCORDANCE WITH PARAGRAPH FIVE OF SUBDIVISION (C) OF THIS
 SECTION. SUCH REPORT SHALL DOCUMENT THE  RURAL  BUSINESS  GROWTH  FUND'S
 GROWTH INVESTMENTS AND SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO:
   (A)  A  BANK  STATEMENT OR EQUIVALENT DOCUMENTATION SHOWING EACH RURAL
 GROWTH INVESTMENT;
   (B) THE NAME, LOCATION, AND  NORTH  AMERICAN  INDUSTRY  CLASSIFICATION
 SYSTEM  CODE OF EACH RURAL BUSINESS RECEIVING A RURAL GROWTH INVESTMENT,
 TOGETHER WITH EITHER THE DETERMINATION NOTICE DESCRIBED BY PARAGRAPH SIX
 OF SUBDIVISION (C) OF THIS SECTION OR EVIDENCE THAT  SUCH  DETERMINATION
 WAS REQUESTED AND NO NOTICE WAS PROVIDED;
   (C)  THE  NUMBER OF EMPLOYMENT POSITIONS THAT EXISTED AT EACH BUSINESS
 DESCRIBED IN SUBPARAGRAPH (B) OF THIS PARAGRAPH;
   (D) THE NUMBER OF JOBS CREATED AND JOBS RETAINED DURING THE  PRECEDING
 TWELVE-MONTH REPORTING PERIOD, CALCULATED IN ACCORDANCE WITH SUBDIVISION
 (A) OF THIS SECTION; AND
   (E)  ANY OTHER INFORMATION THE DEPARTMENT MAY REQUIRE BY RULE OR GUID-
 ANCE.
   (2) THE DEPARTMENT MAY ADOPT RULES AND REGULATIONS NECESSARY TO IMPLE-
 MENT THE PROVISIONS OF THIS SECTION.
   (3) EACH CERTIFIED RURAL BUSINESS GROWTH FUND SHALL PAY AN ANNUAL  FEE
 OF  TWENTY  THOUSAND  DOLLARS  TO THE DEPARTMENT. THE INITIAL ANNUAL FEE
 SHALL BE SUBMITTED ALONG WITH THE FUND'S  INITIAL  REPORT.  ANNUAL  FEES
 RECEIVED  SHALL BE CREDITED TO THE NEW YORK RURAL GROWTH FUND, AS ESTAB-
 LISHED PURSUANT TO SECTION NINETY-NINE-UU OF THE STATE FINANCE LAW.  ANY
 RURAL BUSINESS GROWTH FUND REQUIRED TO FILE AN ANNUAL REPORT PURSUANT TO
 PARAGRAPH ONE OF THIS SUBDIVISION SHALL REMIT THE FEE TOGETHER WITH SUCH
 REPORT. NO ANNUAL FEE SHALL BE REQUIRED AFTER THE FUND HAS BEEN APPROVED
 TO EXIT THE PROGRAM UNDER SUBDIVISION (C) OF THIS SECTION.
   §  2.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ff) to read as follows:
   (FF) CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS  GROWTH  FUND.
 (1)  THERE  IS  HEREBY  ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS
 THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO  A  RURAL  BUSINESS
 GROWTH  FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
 (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FIFTY OF  THIS  CHAP-
 TER.  THE  TOTAL  AMOUNT  OF CREDIT AUTHORIZED BY SUCH CERTIFICATE SHALL
 EQUAL THE AMOUNT OF TAX CREDIT SPECIFIED ON THE TAX CREDIT  CERTIFICATE,
 WHICH,  IN  THE AGGREGATE, SHALL REFLECT SEVENTY PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY CERTIFIED PURSUANT TO SECTION FIFTY OF  THIS  CHAP-
 A. 11055                            9

 TER.  SUCH CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTICLE
 AND SECTION ONE THOUSAND ONE HUNDRED TWELVE OF THE INSURANCE  LAW.  SUCH
 CREDIT  MAY  NOT  BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY OTHER
 THAN AN AFFILIATE OF THE TAXPAYER.
   (2)  A TAXPAYER MAY CLAIM CREDITS AUTHORIZED BY THE TAX CREDIT CERTIF-
 ICATE IN THE TAXABLE YEARS IN WHICH THE THIRD, FOURTH, FIFTH, SIXTH  AND
 SEVENTH  ANNIVERSARIES  OF  THE  CLOSING  DATE,  AS SUCH TERM IS DEFINED
 PURSUANT TO SECTION FIFTY OF THIS CHAPTER, ASSOCIATED WITH SUCH  CERTIF-
 ICATE  OCCUR,  PROVIDED  THAT THE MAXIMUM CREDIT CLAIMED FOR ANY TAXABLE
 YEAR SHALL NOT EXCEED ONE-FIFTH OF THE AMOUNT STATED ON THE  TAX  CREDIT
 CERTIFICATE,  EXCLUSIVE OF ANY AMOUNTS CARRIED FORWARD PURSUANT TO PARA-
 GRAPH THREE OF THIS SUBDIVISION.
   (3) IF THE AMOUNT OF CREDITS ALLOWABLE FOR ANY  TAXABLE  YEAR  EXCEEDS
 THE TAX OTHERWISE DUE FOR SUCH YEAR, THE EXCESS SHALL BE CARRIED FORWARD
 TO  SUBSEQUENT  TAXABLE  YEARS  UNTIL  FULLY USED. A TAXPAYER CLAIMING A
 CREDIT UNDER THIS SUBDIVISION SHALL SUBMIT A  COPY  OF  THE  TAX  CREDIT
 CERTIFICATE  WITH  THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH
 THE CREDIT IS CLAIMED.
   § 3. The tax law is amended by adding a new section 187-s to  read  as
 follows:
   §  187-S.  CREDIT  FOR  CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH
 FUND.   1. THERE IS HEREBY  ALLOWED  A  NON-REFUNDABLE  TAX  CREDIT  FOR
 TAXPAYERS  THAT  MADE  A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL
 BUSINESS GROWTH FUND AND WERE ISSUED  A  TAX  CREDIT  CERTIFICATE  UNDER
 SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FIFTY OF
 THIS  CHAPTER. THE TOTAL AMOUNT OF CREDIT AUTHORIZED BY SUCH CERTIFICATE
 SHALL EQUAL THE AMOUNT OF TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIF-
 ICATE, WHICH, IN THE AGGREGATE, SHALL REFLECT  SEVENTY  PERCENT  OF  THE
 ELIGIBLE  INVESTMENT  AUTHORITY  CERTIFIED  PURSUANT TO SECTION FIFTY OF
 THIS CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY  THIS
 ARTICLE.  THE  CREDIT  MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY
 ENTITY OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   2. THE TAXPAYER MAY CLAIM CREDITS AUTHORIZED BY THE TAX CREDIT CERTIF-
 ICATE IN THE TAXABLE YEARS IN WHICH THE THIRD, FOURTH, FIFTH, SIXTH  AND
 SEVENTH  ANNIVERSARIES  OF  THE  CLOSING  DATE,  AS SUCH TERM IS DEFINED
 PURSUANT TO SECTION FIFTY OF THIS CHAPTER, ASSOCIATED WITH SUCH  CERTIF-
 ICATE  OCCUR,  PROVIDED  THAT THE MAXIMUM CREDIT ALLOWED FOR ANY TAXABLE
 YEAR SHALL NOT EXCEED ONE-FIFTH OF THE AMOUNT STATED ON THE  TAX  CREDIT
 CERTIFICATE, EXCLUSIVE OF ANY AMOUNTS CARRIED FORWARD PURSUANT TO SUBDI-
 VISION  THREE  OF  THIS SECTION. IN NO EVENT SHALL THE CREDIT UNDER THIS
 SECTION BE ALLOWED IN AN AMOUNT THAT REDUCES THE  TAX  PAYABLE  TO  LESS
 THAN THE MINIMUM TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS
 ARTICLE.
   3.  IF THE AMOUNT OF THE CREDIT ALLOWABLE FOR ANY TAXABLE YEAR EXCEEDS
 THE TAX OTHERWISE DUE FOR SUCH YEAR, THE EXCESS SHALL BE CARRIED FORWARD
 TO SUBSEQUENT TAXABLE YEARS UNTIL FULLY  USED.  A  TAXPAYER  CLAIMING  A
 CREDIT  UNDER THIS SECTION SHALL SUBMIT A COPY OF THE TAX CREDIT CERTIF-
 ICATE WITH THE RETURN FOR EACH TAXABLE YEAR  FOR  WHICH  THE  CREDIT  IS
 CLAIMED.
   § 4. The state finance law is amended by adding a new section 99-uu to
 read as follows:
   §  99-UU.  NEW YORK RURAL GROWTH FUND. 1. THERE IS HEREBY ESTABLISHED,
 IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND  THE  COMMISSIONER  OF
 TAXATION  AND FINANCE, A SPECIAL FUND TO BE KNOWN AS THE "NEW YORK RURAL
 GROWTH FUND".
 A. 11055                           10
 
   2. SUCH FUND SHALL CONSIST OF ALL FEES SUBMITTED PURSUANT  TO  SECTION
 FIFTY  OF  THE  TAX LAW, AND ALL OTHER MONEYS APPROPRIATED, CREDITED, OR
 TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
   3.  MONEYS  OF  THE  FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE,
 SHALL BE EXPENDED ONLY FOR THE PURPOSES OF PROVIDING FUNDING FOR THE NEW
 YORK RURAL GROWTH FUND CREDIT ESTABLISHED BY SECTION FIFTY  OF  THE  TAX
 LAW.    MONEYS SHALL BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF
 THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE  COMMIS-
 SIONER OF TAXATION AND FINANCE. ANY INTEREST RECEIVED BY THE COMPTROLLER
 ON  MONEYS DEPOSITED IN THE FUND SHALL BE RETAINED IN AND BECOME PART OF
 SUCH FUND.
   § 5. This act shall take effect July 1, 2026 and shall apply to  taxa-
 ble years beginning on and after such date.