[ ] is old law to be omitted.
LBD12574-05-5
S. 3009--C 2 A. 3009--C
in relation to the empire state jobs retention program (Subpart B)
(Part H); to amend the tax law, in relation to film production and
post-production credits (Part I); to amend the economic development
law and the tax law, in relation to the newspaper and broadcast media
jobs program (Part J); to amend the tax law, in relation to the empire
state digital gaming media production credit (Part K); 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 establish-
ing the New York state council on the arts cultural program fund, in
relation to the effectiveness thereof; and to amend the tax law, in
relation to the New York city musical and theatrical production tax
credit (Part L); to amend the tax law, in relation to clarifying the
notices afforded protest rights (Part M); to amend the tax law, in
relation to the filing of tax warrants and warrant-related records
(Part N); to amend the real property tax law and the tax law, in
relation to simplifying STAR income determinations; and to repeal
certain provisions of such laws relating thereto (Part O); inten-
tionally omitted (Part P); intentionally omitted (Part Q); to amend
the tax law, in relation to increasing the estimated tax threshold
under article nine-A of the tax law (Part R); to amend the tax law, in
relation to establishing a tax credit for organ donation (Part S); to
amend the tax law, in relation to extending the estate tax three-year
gift addback rule (Part T); amend the tax law, in relation to expand-
ing the credit for employment of persons with disabilities (Part U);
to amend the tax law, in relation to reporting of federal partnership
adjustments (Subpart A); and to amend the administrative code of the
city of New York, in relation to reporting of federal partnership
adjustments (Subpart B) (Part V); to amend the tax law and the admin-
istrative code of the city of New York, in relation to establishing a
credit against the tax on personal income of certain residents of a
city having a population of one million or more inhabitants (Part W);
intentionally omitted (Part X); to amend the tax law, in relation to
extending the clean heating fuel credit for three years (Part Y); to
amend the tax law, in relation to extending the alternative fuels and
electric vehicle recharging property credit for three years (Part Z);
to amend the tax law, in relation to extending the sales tax exemption
for certain sales made through vending machines (Part AA); to amend
the labor law, in relation to extending the workers with disabilities
tax credit (Part BB); to amend the tax law, in relation to extending
the hire a vet credit (Part CC); to amend part HH of chapter 59 of the
laws of 2014, amending the tax law relating to a musical and theatri-
cal production credit, in relation to the effectiveness thereof (Part
DD); to amend part U of chapter 59 of the laws of 2017, amending the
tax law, relating to the financial institution data match system for
state tax collection purposes, in relation to extending the effective-
ness thereof (Part EE); to amend the racing, pari-mutuel wagering and
breeding law, in relation to simplifying the pari-mutuel tax rate
system; and to repeal section 908 of the racing, pari-mutuel wagering
and breeding law relating thereto (Subpart A); to amend the racing,
pari-mutuel wagering and breeding law, in relation to licenses for
simulcast facilities, sums relating to track simulcast, simulcast of
out-of-state thoroughbred races, simulcasting of races run by out-of-
state harness tracks and distributions of wagers; to amend chapter 281
of the laws of 1994 amending the racing, pari-mutuel wagering and
breeding law and other laws relating to simulcasting, in relation to
S. 3009--C 3 A. 3009--C
the effectiveness thereof; and 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 the effectiveness thereof (Subpart B); and to
amend the racing, pari-mutuel wagering and breeding law and the state
finance law, in relation to market origin credits and fees (Subpart
C)(Part FF); to amend the racing, pari-mutuel wagering and breeding
law, in relation to the tax on gaming revenues in certain regions; to
amend part OOO of chapter 59 of the laws of 2021 amending the racing,
pari-mutuel wagering and breeding law relating to the tax on gaming
revenues, in relation to the effectiveness thereof; and providing for
the repeal of certain provisions upon expiration thereof (Part GG); to
amend the racing, pari-mutuel wagering and breeding law, in relation
to the utilization of funds in the Capital off-track betting corpo-
rations' capital acquisition funds (Part HH); to amend the racing,
pari-mutuel wagering and breeding law, in relation to enhancing the
health and safety of thoroughbred horses; and providing for the repeal
of such provisions upon expiration thereof (Part II); to amend the tax
law and chapter 60 of the laws of 2016 amending the tax law relating
to creating a farm workforce retention credit, in relation to extend-
ing the provisions thereof (Part JJ); to amend the agriculture and
markets law and the tax law, in relation to the farm employer overtime
credit (Part KK); to amend part H of chapter 59 of the laws of 2024
amending the tax law relating to the filing of amended returns under
article 28 thereof, in relation to making technical corrections there-
to (Part LL); to amend the tax law, in relation to vendor fees paid to
certain vendor tracks; and providing for the repeal of such provisions
upon expiration thereof (Part MM); to amend the racing, pari-mutuel
wagering and breeding law, in relation to members of the franchised
corporation appointed by the New York racing association (Part NN); to
amend the racing, pari-mutuel wagering and breeding law, in relation
to mobile sports tax revenue be used for problem gambling (Part OO);
to extend the duration of certain brownfield redevelopment and remedi-
ation tax credits for certain sites (Part PP); to amend the tax law,
in relation to the relief from sales tax liability provided to certain
limited partners and members of limited liability companies (Part QQ);
to amend the tax law, in relation to simplifying the property tax
credit; and to repeal certain provisions of such law relating thereto
(Part RR); to amend the tax law, in relation to authorizing an occu-
pancy tax in the city of Auburn; and providing for the repeal of such
provisions upon expiration thereof (Part SS); to amend the tax law, in
relation to authorizing the city of Buffalo to impose a hotel and
motel tax; and providing for the repeal of such provisions upon the
expiration thereof (Part TT); to amend the tax law, in relation to
geothermal energy systems tax credits (Part UU); to amend the tax law,
in relation to the metropolitan commuter transportation mobility tax;
and to amend the public authorities law, in relation to amending the
rates of tax and the distribution of revenue therefrom (Part VV); to
amend the tax law, in relation to sales and compensating use taxes for
the metropolitan commuter transportation district; to amend the state
finance law, in relation to the mass transportation operating assist-
ance fund and the dedicated mass transportation trust fund; and to
amend the public authorities law, in relation to the metropolitan
transportation authority dedicated tax fund (Part WW); and to amend
the public authorities law, in relation to the aggregate principal
amount of bonds, notes or other obligations issued by the metropolitan
S. 3009--C 4 A. 3009--C
transit authority, the triborough bridge and tunnel authority and the
New York city transit authority (Part XX)
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 2025-2026
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through XX. 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. Section 606 of the tax law is amended by adding a new
subsection (qqq) to read as follows:
(QQQ) INFLATION REFUND CREDIT. (1) A TAXPAYER WHO MEETS THE ELIGIBIL-
ITY STANDARDS IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A
CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE IN THE AMOUNT SPECIFIED
IN PARAGRAPH THREE OF THIS SUBSECTION FOR TAX YEAR TWO THOUSAND TWENTY-
FIVE.
(2) TO BE ELIGIBLE FOR THE CREDIT, THE TAXPAYER (OR TAXPAYERS FILING
JOINT RETURNS)(A) MUST HAVE BEEN A FULL-YEAR RESIDENT IN THE STATE OF
NEW YORK IN TAX YEAR TWO THOUSAND TWENTY-THREE, (B) (I) MUST HAVE HAD
NEW YORK ADJUSTED GROSS INCOME OF THREE HUNDRED THOUSAND DOLLARS OR LESS
IN TAX YEAR TWO THOUSAND TWENTY-THREE IF THEY FILED A NEW YORK STATE
RESIDENT INCOME TAX RETURN AS MARRIED TAXPAYERS FILING JOINTLY OR A
QUALIFIED SURVIVING SPOUSE, OR (II) MUST HAVE HAD NEW YORK ADJUSTED
GROSS INCOME OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR LESS IN TAX YEAR
TWO THOUSAND TWENTY-THREE IF THEY FILED A NEW YORK STATE RESIDENT INCOME
TAX RETURN AS A SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE
RETURN, OR HEAD OF HOUSEHOLD, AND (C) MUST NOT HAVE BEEN CLAIMED AS A
DEPENDENT BY ANOTHER TAXPAYER IN TAX YEAR TWO THOUSAND TWENTY-THREE.
(3) AMOUNT OF CREDIT. (A) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STAN-
DARDS IN PARAGRAPH TWO WHO FILED A NEW YORK STATE RESIDENT INCOME TAX
RETURN AS MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING
SPOUSE, (I) WITH NEW YORK ADJUSTED GROSS INCOME OF GREATER THAN ONE
HUNDRED FIFTY THOUSAND DOLLARS BUT NO GREATER THAN THREE HUNDRED THOU-
SAND DOLLARS IN TAX YEAR TWO THOUSAND TWENTY-THREE, THE CREDIT AMOUNT
SHALL BE THREE HUNDRED DOLLARS, OR (II) WITH NEW YORK ADJUSTED GROSS
INCOME OF NO GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS IN TAX YEAR
TWO THOUSAND TWENTY-THREE, THE CREDIT AMOUNT SHALL BE FOUR HUNDRED
DOLLARS, AND (B) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STANDARDS IN
PARAGRAPH TWO WHO FILED A NEW YORK STATE RESIDENT INCOME TAX RETURN AS A
SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF
HOUSEHOLD, (I) WITH NEW YORK ADJUSTED GROSS INCOME OF GREATER THAN
SEVENTY-FIVE THOUSAND DOLLARS BUT NO GREATER THAN ONE HUNDRED FIFTY
THOUSAND DOLLARS IN TAX YEAR TWO THOUSAND TWENTY-THREE, THE CREDIT
AMOUNT SHALL BE ONE HUNDRED FIFTY DOLLARS, OR (II) WITH NEW YORK
S. 3009--C 5 A. 3009--C
ADJUSTED GROSS INCOME OF NO GREATER THAN SEVENTY-FIVE THOUSAND DOLLARS
IN TAX YEAR TWO THOUSAND TWENTY-THREE, THE CREDIT AMOUNT SHALL BE TWO
HUNDRED DOLLARS.
(4) THE AMOUNT OF THE CREDIT SHALL BE TREATED AS AN OVERPAYMENT OF TAX
TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO
INTEREST SHALL BE PAID THEREON. THE COMMISSIONER SHALL DETERMINE THE
TAXPAYER'S ELIGIBILITY FOR THIS CREDIT UTILIZING THE INFORMATION AVAIL-
ABLE TO THE COMMISSIONER ON THE TAXPAYER'S PERSONAL INCOME TAX RETURN
FILED FOR TAX YEAR TWO THOUSAND TWENTY-THREE. FOR THOSE TAXPAYERS WHOM
THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMIS-
SIONER SHALL ADVANCE A PAYMENT IN THE AMOUNT SPECIFIED IN PARAGRAPH
THREE OF THIS SUBSECTION. A TAXPAYER WHO FAILED TO RECEIVE AN ADVANCE
PAYMENT THAT THEY BELIEVE WAS DUE, OR WHO RECEIVED AN ADVANCE PAYMENT
THAT THEY BELIEVE IS LESS THAN THE AMOUNT THAT WAS DUE, MAY REQUEST
PAYMENT OF THE CLAIMED DEFICIENCY IN A MANNER PRESCRIBED BY THE COMMIS-
SIONER.
§ 2. Notwithstanding any provision of law to the contrary, any credit
paid pursuant to this act, to the extent includible in gross income for
federal income tax purposes, shall not be subject to state or local
income tax.
§ 3. This act shall take effect immediately.
PART B
Section 1. Clauses (vi) and (vii) 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, are amended to
read as follows:
(vi) For taxable years beginning in two thousand twenty-three and
before two thousand [twenty-eight] TWENTY-SIX the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900
Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over
$161,550
Over $323,200 but not over $18,252 plus 6.85% of excess over
$2,155,350 $323,200
Over $2,155,350 but not over $143,754 plus 9.65% of excess over
$5,000,000 $2,155,350
Over $5,000,000 but not over $418,263 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,478,263 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven]
TWENTY-FIVE AND BEFORE TWO THOUSAND TWENTY-SEVEN the following rates
shall apply:
S. 3009--C 6 A. 3009--C
[If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900
Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess
over $161,550
Over $323,200 but not over $18,252 plus 6.85% of excess
$2,155,350 over $323,200
Over $2,155,350 $143,754 plus 8.82% of excess
over $2,155,350]
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 3.90% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $669 PLUS 4.40% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $953 PLUS 5.15% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,174 PLUS 5.40% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,391 PLUS 5.90% OF EXCESS OVER
$161,550
OVER $323,200 BUT NOT OVER $17,928 PLUS 6.85% OF EXCESS
$2,155,350 OVER $323,200
OVER $2,155,350 BUT NOT OVER $143,430 PLUS 9.65% OF EXCESS
$5,000,000 OVER $2,155,350
OVER $5,000,000 BUT NOT OVER $417,939 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,477,939 PLUS 10.90% OF EXCESS
OVER $25,000,000
§ 2. Subparagraph (B) of paragraph 1 of subsection (a) of section 601
of the tax law is amended by adding two new clauses (viii) and (ix) to
read as follows:
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-SIX AND
BEFORE TWO THOUSAND THIRTY-THREE THE FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $652 PLUS 4.30% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $929 PLUS 5.05% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,146 PLUS 5.30% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,229 PLUS 5.80% OF EXCESS
OVER $161,550
OVER $323,200 BUT NOT OVER $17,605 PLUS 6.85% OF EXCESS
$2,155,350 OVER $323,200
OVER $2,155,350 BUT NOT OVER $143,107 PLUS 9.65% OF EXCESS
$5,000,000 OVER $2,155,350
OVER $5,000,000 BUT NOT OVER $417,616 PLUS 10.30% OF EXCESS
S. 3009--C 7 A. 3009--C
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,477,616 PLUS 10.90% OF EXCESS
OVER $25,000,000
(IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND THIRTY-TWO THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $652 PLUS 4.30% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $929 PLUS 5.05% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,146 PLUS 5.30% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,229 PLUS 5.80% OF EXCESS
OVER $161,550
OVER $323,200 BUT NOT OVER $17,605 PLUS 6.85% OF EXCESS
$2,155,350 OVER $323,200
OVER $2,155,350 $143,107 PLUS 8.82% OF EXCESS
OVER $2,155,350
§ 3. Clauses (vi) and (vii) 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, are amended to
read as follows:
(vi) For taxable years beginning in two thousand twenty-three and
before two thousand [twenty-eight] TWENTY-SIX the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800
Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650
Over $20,900 but not over $107,650 $901 plus 5.5% of excess over
$20,900
Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over
$107,650
Over $269,300 but not over $15,371 plus 6.85% of excess over
$1,616,450 $269,300
Over $1,616,450 but not over $107,651 plus 9.65% of excess over
$5,000,000 $1,616,450
Over $5,000,000 but not over $434,163 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,494,163 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven]
TWENTY-FIVE AND BEFORE TWO THOUSAND TWENTY-SEVEN the following rates
shall apply:
[If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $512 plus 4.5% of excess over
$17,650 $12,800
Over $17,650 but not over $730 plus 5.25% of excess over
S. 3009--C 8 A. 3009--C
$20,900 $17,650
Over $20,900 but not over $901 plus 5.5% of excess over
$107,650 $20,900
Over $107,650 but not over $5,672 plus 6.00% of excess
$269,300 over $107,650
Over $269,300 but not over $15,371 plus 6.85% of excess
$1,616,450 over $269,300
Over $1,616,450 $107,651 plus 8.82% of excess
over $1,616,450]
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 3.90% OF THE NEW YORK TAXABLE
INCOME
OVER $12,800 BUT NOT OVER $499 PLUS 4.40% OF EXCESS OVER
$17,650 $12,800
OVER $17,650 BUT NOT OVER $712 PLUS 5.15% OF EXCESS OVER
$20,900 $17,650
OVER $20,900 BUT NOT OVER $879 PLUS 5.40% OF EXCESS OVER
$107,650 $20,900
OVER $107,650 BUT NOT OVER $5,564 PLUS 5.90% OF EXCESS
$269,300 OVER $107,650
OVER $269,300 BUT NOT OVER $15,101 PLUS 6.85% OF EXCESS
$1,616,450 OVER $269,300
OVER $1,616,450 BUT NOT OVER $107,381 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,616,450
OVER $5,000,000 BUT NOT OVER $433,894 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,493,894 PLUS 10.90% OF EXCESS
OVER $25,000,000
§ 4. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
of the tax law is amended by adding two new clauses (viii) and (ix) to
read as follows:
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-SIX AND
BEFORE TWO THOUSAND THIRTY-THREE THE FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $12,800 BUT NOT OVER $486 PLUS 4.30% OF EXCESS OVER
$17,650 $12,800
OVER $17,650 BUT NOT OVER $695 PLUS 5.05% OF EXCESS OVER
$20,900 $17,650
OVER $20,900 BUT NOT OVER $859 PLUS 5.30% OF EXCESS OVER
$107,650 $20,900
OVER $107,650 BUT NOT OVER $5,457 PLUS 5.80% OF EXCESS
$269,300 OVER $107,650
OVER $269,300 BUT NOT OVER $14,833 PLUS 6.85% OF EXCESS
$1,616,450 OVER $269,300
OVER $1,616,450 BUT NOT OVER $107,113 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,616,450
OVER $5,000,000 BUT NOT OVER $433,626 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,493,626 PLUS 10.90% OF EXCESS
OVER $25,000,000
S. 3009--C 9 A. 3009--C
(IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND THIRTY-TWO THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $12,800 BUT NOT OVER $486 PLUS 4.30% OF EXCESS OVER
$17,650 $12,800
OVER $17,650 BUT NOT OVER $695 PLUS 5.05% OF EXCESS OVER
$20,900 $17,650
OVER $20,900 BUT NOT OVER $859 PLUS 5.30% OF EXCESS OVER
$107,650 $20,900
OVER $107,650 BUT NOT OVER $5,457 PLUS 5.80% OF EXCESS
$269,300 OVER $107,650
OVER $269,300 BUT NOT OVER $14,833 PLUS 6.85% OF EXCESS
$1,616,450 OVER $269,300
OVER $1,616,450 $107,113 PLUS 8.82% OF EXCESS
OVER $1,616,450
§ 5. Clauses (vi) and (vii) 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, are amended to
read as follows:
(vi) For taxable years beginning in two thousand twenty-three and
before two thousand [twenty-eight] TWENTY-SIX the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900
Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over
$80,650
Over $215,400 but not over $12,356 plus 6.85% of excess over
$1,077,550 $215,400
Over $1,077,550 but not over $71,413 plus 9.65% of excess over
$5,000,000 $1,077,550
Over $5,000,000 but not over $449,929 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,509,929 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven]
TWENTY-FIVE AND BEFORE TWO THOUSAND TWENTY-SEVEN the following rates
shall apply:
[If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900
Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess
S. 3009--C 10 A. 3009--C
over $80,650
Over $215,400 but not over $12,356 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 $71,413 plus 8.82% of excess
over $1,077,550]
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 3.90% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $332 PLUS 4.40% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $473 PLUS 5.15% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $586 PLUS 5.40% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,191 PLUS 5.90% OF EXCESS
OVER $80,650
OVER $215,400 BUT NOT OVER $12,141 PLUS 6.85% OF EXCESS
$1,077,550 OVER $215,400
OVER $1,077,550 BUT NOT OVER $71,198 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,077,550
OVER $5,000,000 BUT NOT OVER $449,714 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,509,714 PLUS 10.90% OF EXCESS
OVER $25,000,000
§ 6. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
of the tax law is amended by adding two new clauses (viii) and (ix) to
read as follows:
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-SIX AND
BEFORE TWO THOUSAND THIRTY-THREE THE FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 3.80% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $323 PLUS 4.30% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $461 PLUS 5.05% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $572 PLUS 5.30% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,110 PLUS 5.80% OF EXCESS
OVER $80,650
OVER $215,400 BUT NOT OVER $11,926 PLUS 6.85% OF EXCESS
$1,077,550 OVER $215,400
OVER $1,077,550 BUT NOT OVER $70,983 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,077,550
OVER $5,000,000 BUT NOT OVER $449,499 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,509,499 PLUS 10.90% OF EXCESS
OVER $25,000,000
(IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND THIRTY-TWO THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 3.80% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $323 PLUS 4.30% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $461 PLUS 5.05% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $572 PLUS 5.30% OF EXCESS OVER
S. 3009--C 11 A. 3009--C
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,110 PLUS 5.80% OF EXCESS
OVER $80,650
OVER $215,400 BUT NOT OVER $11,926 PLUS 6.85% OF EXCESS
$1,077,550 OVER $215,400
OVER $1,077,550 $70,983 PLUS 8.82% OF EXCESS
OVER $1,077,550
§ 7. The opening paragraph of 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:
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] TWENTY-SIX, 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.
§ 8. Section 601 of the tax law is amended by adding three new
subsections (d-5), (d-6) and (d-7) to read as follows:
(D-5) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-6) OR (D-7)
OF THIS SECTION, FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND
TWENTY-SIX AND BEFORE TWO THOUSAND TWENTY-SEVEN, 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),
(D-3), (D-4), (D-6) OR (D-7) OF THIS SECTION SHALL BE READ AS A REFER-
ENCE 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 $3,071
$2,155,350 $5,000,000 $4,211 $60,350
$5,000,000 $25,000,000 $64,561 $32,500
(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
S. 3009--C 12 A. 3009--C
(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
5.40 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, 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 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH 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 $2,559
$1,616,450 $5,000,000 $3,346 $45,260
$5,000,000 $25,000,000 $48,606 $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 5.90 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
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 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH 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:
S. 3009--C 13 A. 3009--C
(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 $567
$215,400 $1,077,550 $567 $2,047
$1,077,550 $5,000,000 $2,614 $30,172
$5,000,000 $25,000,000 $32,786 $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 5.90
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 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
(D-6) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-5) OR (D-7)
OF THIS SECTION, FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND
TWENTY-SEVEN AND BEFORE TWO THOUSAND THIRTY-THREE, 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 RECAP-
TURING 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), (D-3), (D-4), (D-5) OR (D-7) 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 $808
$323,200 $2,155,350 $1,141 $3,393
$2,155,350 $5,000,000 $4,534 $60,350
$5,000,000 $25,000,000 $64,884 $32,500
S. 3009--C 14 A. 3009--C
(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
5.30 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 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH 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 $2,827
$1,616,450 $5,000,000 $3,614 $45,260
$5,000,000 $25,000,000 $48,874 $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
S. 3009--C 15 A. 3009--C
(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 5.80 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
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 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH 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 $2,261
$1,077,550 $5,000,000 $2,829 $30,172
$5,000,000 $25,000,000 $33,001 $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 5.80
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 PERCENT AND NEW YORK TAXABLE INCOME AND THE
S. 3009--C 16 A. 3009--C
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
(D-7) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-5) OR (D-6)
OF THIS SECTION, FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND
THIRTY-THREE, 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), (D-3), (D-4), (D-5) OR (D-6) 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:
(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 $808
$323,200 $2,155,350 $1,141 $3,393
$2,155,350 $4,534 $42,461
(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 NEW YORK ADJUSTED GROSS INCOME MINUS $2,155,350
(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
5.30 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.
(2) FOR RESIDENT HEADS OF HOUSEHOLDS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650:
(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 $2,827
$1,616,450 $3,614 $31,844
(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 NEW YORK ADJUSTED GROSS INCOME MINUS $1,616,450
S. 3009--C 17 A. 3009--C
(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 5.80 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
GROSS INCOME MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS,
AND THE DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(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:
(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 $2,261
$1,077,550 $2,829 $21,228
(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 NEW YORK ADJUSTED GROSS INCOME MINUS $1,077,550
(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 5.80
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.
§ 9. This act shall take effect immediately.
PART C
Section 1. Paragraph 1 of subsection (c-1) of section 606 of the tax
law, as amended by section 1 of part HH of chapter 56 of the laws of
2023, is amended to read as follows:
(1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE, AND TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-EIGHT, A resident taxpayer shall be allowed a credit as
provided herein equal to the greater of one hundred dollars times the
number of qualifying children of the taxpayer or the applicable percent-
age of the child tax credit allowed the taxpayer under section twenty-
S. 3009--C 18 A. 3009--C
four of the internal 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 qualifying 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. 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 refer-
ence to such section as it existed immediately prior to the enactment of
Public Law 115-97.
§ 2. Subsection (c-1) of section 606 of the tax law is amended by
adding a new paragraph 1-a to read as follows:
(1-A) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED HEREIN, EQUAL
TO THE SUM OF:
(I) ONE THOUSAND DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN OF
THE TAXPAYER AGED THREE OR YOUNGER, AND
(II) THREE HUNDRED THIRTY DOLLARS TIMES THE NUMBER OF QUALIFYING CHIL-
DREN OF THE TAXPAYER WHO HAVE ATTAINED AGE FOUR AND NOT YET ATTAINED AGE
SEVENTEEN.
(B) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, A
RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED HEREIN, EQUAL TO
THE SUM OF:
(I) ONE THOUSAND DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN OF
THE TAXPAYER AGED THREE OR YOUNGER, AND
(II) FIVE HUNDRED DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN OF
THE TAXPAYER WHO HAVE ATTAINED AGE FOUR AND NOT YET ATTAINED AGE SEVEN-
TEEN.
(C) THE AMOUNT OF THE CREDIT ALLOWABLE UNDER SUBPARAGRAPHS (A) AND (B)
OF THIS PARAGRAPH SHALL BE REDUCED (BUT NOT BELOW ZERO) BY SIXTEEN
DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLARS BY WHICH THE
TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME EXCEEDS THE THRESHOLD AMOUNT.
FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE TERM "THRESHOLD AMOUNT" SHALL
MEAN: (I) ONE HUNDRED TEN THOUSAND DOLLARS IN THE CASE OF MARRIED
TAXPAYERS FILING JOINTLY; (II) SEVENTY-FIVE THOUSAND DOLLARS IN THE CASE
OF A TAXPAYER FILING AS SINGLE, HEAD OF HOUSEHOLD, OR QUALIFIED SURVING
SPOUSE; AND (III) FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED
TAXPAYER FILING A SEPARATE RETURN.
(D) FOR THE PURPOSES OF THIS PARAGRAPH, A QUALIFYING CHILD SHALL BE AN
INDIVIDUAL WHO: (I) IS A CHILD, SIBLING, OR STEPSIBLING OF THE TAXPAYER,
OR A DESCENDENT OF ANY SUCH RELATIVE; (II) HAS THE SAME PRINCIPAL PLACE
OF ABODE AS THE TAXPAYER FOR MORE THAN ONE-HALF OF THE TAXABLE YEAR;
(III) HAS NOT ATTAINED AGE SEVENTEEN; (IV) HAS NOT PROVIDED OVER ONE-
HALF OF SUCH INDIVIDUAL'S OWN SUPPORT FOR THE CALENDAR YEAR IN WHICH THE
TAXABLE YEAR OF THE TAXPAYER BEGINS; (V) HAS NOT FILED A JOINT RETURN
(OTHER THAN ONLY FOR A CLAIM OF REFUND) WITH THE INDIVIDUAL'S SPOUSE
UNDER SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE TAXABLE
YEAR; AND (VI) IS A CITIZEN OR NATIONAL OF THE UNITED STATES, OR AN
INDIVIDUAL WITH AN INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER ISSUED BY
THE INTERNAL REVENUE SERVICE.
S. 3009--C 19 A. 3009--C
(E) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "CHILD" SHALL MEAN AN
INDIVIDUAL WHO IS THE OFFSPRING OR STEPCHILD OF THE TAXPAYER, OR AN
ELIGIBLE FOSTER CHILD OF THE TAXPAYER, OR A LEGALLY ADOPTED INDIVIDUAL
OF THE TAXPAYER, OR AN INDIVIDUAL WHO IS LAWFULLY PLACED WITH THE
TAXPAYER FOR LEGAL ADOPTION BY THE TAXPAYER.
(F) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH, IF
AN INDIVIDUAL MAY BE CLAIMED AS A QUALIFYING CHILD BY TWO OR MORE
TAXPAYERS FOR A TAXABLE YEAR, SUCH INDIVIDUAL SHALL BE TREATED AS THE
QUALIFYING CHILD OF THE TAXPAYER WHO IS: (I) A PARENT OF THE INDIVIDUAL,
OR (II) IF SUBCLAUSE (I) DOES NOT APPLY, THE TAXPAYER WITH THE HIGHEST
FEDERAL ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR.
(II) IF THE PARENTS CLAIMING ANY QUALIFYING CHILD DO NOT FILE A JOINT
RETURN TOGETHER, SUCH CHILD SHALL BE TREATED AS THE QUALIFYING CHILD OF:
(I) THE PARENT WITH WHOM THE CHILD RESIDED FOR THE LONGEST PERIOD OF
TIME DURING THE TAXABLE YEAR, OR (II) IF THE CHILD RESIDES WITH BOTH
PARENTS FOR THE SAME AMOUNT OF TIME DURING SUCH TAXABLE YEAR, THE PARENT
WITH THE HIGHEST FEDERAL ADJUSTED GROSS INCOME WHO FILES A RETURN PURSU-
ANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE.
(III) IF THE PARENTS OF AN INDIVIDUAL MAY CLAIM SUCH INDIVIDUAL AS A
QUALIFYING CHILD BUT NO PARENT SO CLAIMS THE INDIVIDUAL, SUCH INDIVIDUAL
MAY BE CLAIMED AS THE QUALIFYING CHILD OF ANOTHER TAXPAYER, BUT ONLY IF
THE FEDERAL ADJUSTED GROSS INCOME OF SUCH TAXPAYER IS HIGHER THAN THE
HIGHEST FEDERAL ADJUSTED GROSS INCOME OF ANY PARENT OF THE INDIVIDUAL,
REGARDLESS OF A REQUIREMENT TO FILE A RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE.
§ 3. This act shall take effect immediately.
PART D
Section 1. Subdivision 3 of section 22 of the public housing law, as
added by section 1 of part CC of chapter 63 of the laws of 2000, is
amended to read as follows:
3. Amount of credit. Except as provided in subdivisions four and five
of this section, the amount of low-income housing credit shall be the
applicable percentage of the qualified basis of each eligible low-income
building. BUILDINGS FINANCED BY REFUNDED BONDS USING THE RULES OF
SECTION 146(I)(6) OF THE INTERNAL REVENUE CODE, SHALL BE ELIGIBLE FOR
CREDIT PURSUANT TO THE RULES OF SECTION 42(B)(2) OF THE INTERNAL REVENUE
CODE.
§ 2. Subdivision 4 of section 22 of the public housing law, as amended
by section 4 of part J of chapter 59 of the laws of 2022, is amended to
read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be one hundred [seventy-two] EIGHTY-SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commission-
er[,] and does not apply to allowance to a taxpayer of the credit with
respect to an eligible low-income building for each year of the credit
period.
§ 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be [one] TWO hundred [eighty-seven] SEVENTEEN million
dollars. The limitation provided by this subdivision applies only to
S. 3009--C 20 A. 3009--C
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be two hundred [seventeen] FORTY-SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be two hundred [forty-seven] SEVENTY-SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 6. Subdivision 4 of section 22 of the public housing law, as amended
by section five of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be [two] THREE hundred [seventy-seven] SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 7. This act shall take effect immediately; provided, however,
section two of this act shall take effect on the same date and in the
same manner as section 4 of part J of chapter 59 of the laws of 2022
takes effect; section three of this act shall take effect April 1, 2026;
section four of this act shall take effect April 1, 2027; section five
of this act shall take effect April 1, 2028; and section six of this act
shall take effect April 1, 2029.
PART E
Section 1. 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, paragraphs (a)
and (c) as amended by section 2 of part RR of chapter 59 of the laws of
2018, subparagraph (i) of paragraph (a) as amended by section 2, subpar-
agraph (ii) of paragraph (a) as amended by section 4 and paragraph (a-1)
as amended by section 3 of subpart B of part I of chapter 59 of the laws
of 2023, paragraph (e) as amended by section 1 of part U of chapter 59
of the laws of 2019, paragraph (f) as added by section 2 of part CCC of
chapter 59 of the laws of 2021, is amended to read as follows:
26. Credit for rehabilitation of historic properties. (a) Application
of credit. (i) For taxable years beginning on or after January first,
two thousand ten, and before January first, two thousand thirty, a
taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH
(G) OF THIS SUBDIVISION, 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
S. 3009--C 21 A. 3009--C
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.
(ii) For taxable years beginning on or after January first, two thou-
sand thirty, a taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED
IN PARAGRAPH (G) OF THIS SUBDIVISION, 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.
(a-1) If the taxpayer OR TRANSFEREE is a partner in a partnership or a
shareholder in a New York S corporation, then the credit caps imposed in
paragraph (a) of this 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.
(b) Tax credits allowed pursuant to this subdivision shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
(c) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision must be added back BY THE TAXPAYER OR
TRANSFEREE in the same taxable year and in the same proportion as the
federal credit.
(d) The credit allowed under this subdivision for any taxable year
shall not reduce the tax due for such year to less than the amount
prescribed in paragraph (d) of subdivision one of section two hundred
ten of this article. However, if the amount of the credit allowed under
this subdivision for any taxable year reduces the tax to such amount or
if the taxpayer otherwise pays tax based on the fixed dollar minimum
amount, any amount of credit thus not deductible in such taxable year
shall be treated as an overpayment of tax to be recredited 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.
(e) [Except in the case of a qualified rehabilitation project under-
taken within a state park, state historic site, or other land owned by
the state, that is under the jurisdiction of the office of parks, recre-
ation and historic preservation, to] TO be eligible for the credit
allowable under this subdivision, the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
S. 3009--C 22 A. 3009--C
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subdivision for an additional two
calendar years. THE ELIGIBILITY RESTRICTIONS SET FORTH IN THIS PARAGRAPH
SHALL NOT BE APPLICABLE IF:
(I) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN WITHIN A STATE
PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS
UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC
PRESERVATION; OR
(II) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN FOR THE
PROVISION OF AFFORDABLE HOUSING AND THE TAXPAYER HAS ENTERED INTO A
REGULATORY AGREEMENT WITH ANY STATE OR FEDERAL AGENCY OR AUTHORITY, OR
ANY OTHER GOVERNMENT ENTITY THAT IS AUTHORIZED TO ENGAGE IN THE FINANC-
ING, CONSTRUCTION OR OVERSIGHT OF AFFORDABLE HOUSING WITHIN SUCH ENTI-
TY'S JURISDICTION, AND WHERE SUCH REGULATORY AGREEMENT SETS FORTH
AFFORDABILITY REQUIREMENTS APPLICABLE FOR A PERIOD OF NOT LESS THAN
THIRTY YEARS AND THAT IS BINDING ON ALL SUCCESSORS OF THE TAXPAYER.
(f) For purposes of this subdivision "small project" means qualified
rehabilitation expenditures totaling two million five hundred thousand
dollars or less.
(G)(I) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY
TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY
TAX CREDIT AUTHORIZED PURSUANT TO SECTION FORTY-SEVEN OF THE INTERNAL
REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION PROJECT MAY BE
ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO
INTEREST IN THE QUALIFIED REHABILITATION PROJECT OR IN AN ENTITY WITH AN
OWNERSHIP INTEREST IN THE QUALIFIED REHABILITATION PROJECT. A TRANSFEREE
MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
(II) A TAXPAYER SEEKING TO TRANSFER A CREDIT ALLOWED PURSUANT TO THIS
SUBDIVISION MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE
TRANSFER CONTRACT MUST SPECIFY:
(A) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE
PROJECT;
(B) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
(C) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE CLAIMED
AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
(D) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE
TRANSFER CREDIT; AND
(E) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(III) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A
CREDIT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT
FILES A TRANSFER APPLICATION WITH THE COMMISSIONER OF PARKS, RECREATION
AND HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND SUCH TRANSFER APPLI-
CATION IS APPROVED. THE TRANSFER APPLICATION SHALL INCLUDE THE NAME AND
FEDERAL IDENTIFICATION NUMBERS OF THE TAXPAYER AND EACH PROPOSED TRANS-
FEREE, THE AMOUNT OF CREDIT PROPOSED TO BE TRANSFERRED TO EACH PROPOSED
TRANSFEREE, A COPY OF THE TRANSFER CONTRACT, AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OR THE COMMISSIONER OF PARKS, RECREATION AND HISTOR-
IC PRESERVATION MAY REQUIRE. THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION SHALL APPROVE OR DENY EACH TRANSFER APPLICATION
AND, IF AN APPLICATION IS DENIED, SHALL ISSUE A WRITTEN DETERMINATION TO
THE TAXPAYER. IF THE TRANSFER IS APPROVED, THE COMMISSIONER OF PARKS,
S. 3009--C 23 A. 3009--C
RECREATION AND HISTORIC PRESERVATION SHALL ISSUE A TRANSFER APPROVAL
CERTIFICATE THAT PROVIDES THE NAME OF THE TRANSFEROR AND ALL TRANSFER-
EES, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION AND
THE COMMISSIONER DEEM NECESSARY. A COPY OF THE TRANSFER APPROVAL CERTIF-
ICATE MUST BE ATTACHED TO EACH TRANSFEREE'S TAX RETURN. THE COMMISSIONER
OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE
COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED
NECESSARY FOR THE TRANSFERABILITY OF CREDITS ALLOWED UNDER THIS SUBDIVI-
SION.
(IV) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION
SHALL FORWARD COPIES OF ALL TRANSFER APPLICATIONS AND ATTACHMENTS THERE-
TO AND APPROVAL CERTIFICATES TO THE COMMISSIONER WITHIN THIRTY DAYS
AFTER THE TRANSFER IS APPROVED.
(V) A TAXPAYER ALLOWED A CREDIT PURSUANT TO SECTION FORTY-SEVEN OF THE
INTERNAL REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION THAT IS
ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBDIVISION SHALL REMAIN
SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
ER WITH RESPECT TO THE CREDIT ALLOWED BY THIS SUBDIVISION, NONE OF WHICH
SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANS-
FERRED.
§ 2. Subsection (oo) of section 606 of the tax law, as amended by
chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 472
of the laws of 2010, subparagraph (A) of paragraph 1 as amended by
section 1 of subpart B of part I of chapter 59 of the laws of 2023,
paragraph 3 as amended by section 1 of part RR of chapter 59 of the laws
of 2018, paragraph 4 as amended by section 1 of part F of chapter 59 of
the laws of 2013, paragraph 5 as amended by section 2 of part U of chap-
ter 59 of the laws of 2019, paragraph 6 as added by section 1 of part
CCC of chapter 59 of the laws of 2021, is amended to read as follows:
(oo) Credit for rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand thirty, a taxpayer, OR A TRANSFEREE
OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH SEVEN OF THIS SUBSECTION,
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 thirty,
a taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH
SEVEN OF THIS SUBSECTION, 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. 3009--C 24 A. 3009--C
(B) If the taxpayer OR TRANSFEREE is a partner in a partnership or a
shareholder of a New York S corporation, then the credit cap imposed in
subparagraph (A) of this paragraph 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.
(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
(3) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subsection and that cred-
it pursuant to such section 47 is recaptured pursuant to subsection (a)
of section 50 of the internal revenue code, a portion of the credit
allowed under this subsection must be added back BY THE TAXPAYER OR
TRANSFEREE in the same taxable year and in the same proportion as the
federal recapture.
(4) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(5) [Except in the case of a qualified rehabilitation project under-
taken within a state park, state historic site, or other land owned by
the state, that is under the jurisdiction of the office of parks, recre-
ation and historic preservation, to] TO be eligible for the credit
allowable under this subsection the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subsection for an additional two calen-
dar years. THE ELIGIBILITY RESTRICTIONS SET FORTH IN THIS PARAGRAPH
SHALL NOT BE APPLICABLE IF:
(A) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN WITHIN A STATE
PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS
UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC
PRESERVATION; OR
(B) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN FOR THE PROVISION
OF AFFORDABLE HOUSING AND THE TAXPAYER HAS ENTERED INTO A REGULATORY
AGREEMENT WITH ANY STATE OR FEDERAL AGENCY OR AUTHORITY, OR ANY OTHER
GOVERNMENT ENTITY THAT IS AUTHORIZED TO ENGAGE IN THE FINANCING,
CONSTRUCTION OR OVERSIGHT OF AFFORDABLE HOUSING WITHIN SUCH ENTITY'S
JURISDICTION, AND WHERE SUCH REGULATORY AGREEMENT SETS FORTH AFFORDABIL-
ITY REQUIREMENTS APPLICABLE FOR A PERIOD OF NOT LESS THAN THIRTY YEARS
AND THAT IS BINDING ON ALL SUCCESSORS OF THE TAXPAYER.
(6) For purposes of this subsection the term "small project" means
qualified rehabilitation expenditures totaling two million five hundred
thousand dollars or less.
(7)(A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBSECTION MAY
TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY
TAX CREDIT AUTHORIZED PURSUANT TO SECTION FORTY-SEVEN OF THE INTERNAL
S. 3009--C 25 A. 3009--C
REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION PROJECT MAY BE
ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO
INTEREST IN THE QUALIFIED REHABILITATION PROJECT OR IN AN ENTITY WITH AN
OWNERSHIP INTEREST IN THE QUALIFIED REHABILITATION PROJECT. A TRANSFEREE
MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
(B) A TAXPAYER SEEKING TO TRANSFER A CREDIT ALLOWED PURSUANT TO THIS
SUBSECTION MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE
TRANSFER CONTRACT MUST SPECIFY:
(I) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE
PROJECT;
(II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
(III) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE
CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
(IV) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE
TRANSFER CREDIT; AND
(V) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
IT PURSUANT TO THIS SUBSECTION AND SEEKING TO TRANSFER THE CREDIT FILES
A TRANSFER APPLICATION WITH THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND SUCH TRANSFER APPLICA-
TION IS APPROVED. THE TRANSFER APPLICATION SHALL INCLUDE THE NAME AND
FEDERAL IDENTIFICATION NUMBERS OF THE TAXPAYER AND EACH PROPOSED TRANS-
FEREE, THE AMOUNT OF CREDIT PROPOSED TO BE TRANSFERRED TO EACH PROPOSED
TRANSFEREE, A COPY OF THE TRANSFER CONTRACT, AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OR THE COMMISSIONER OF PARKS, RECREATION AND HISTOR-
IC PRESERVATION MAY REQUIRE. THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION SHALL APPROVE OR DENY EACH TRANSFER APPLICATION
AND, IF AN APPLICATION IS DENIED, SHALL ISSUE A WRITTEN DETERMINATION TO
THE TAXPAYER. IF THE TRANSFER IS APPROVED, THE COMMISSIONER OF PARKS,
RECREATION AND HISTORIC PRESERVATION SHALL ISSUE A TRANSFER APPROVAL
CERTIFICATE THAT PROVIDES THE NAME OF THE TRANSFEROR AND ALL TRANSFER-
EES, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION AND
THE COMMISSIONER DEEM NECESSARY. A COPY OF THE TRANSFER APPROVAL CERTIF-
ICATE MUST BE ATTACHED TO EACH TRANSFEREE'S TAX RETURN. THE COMMISSIONER
OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE
COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED
NECESSARY FOR THE TRANSFERABILITY OF CREDITS ALLOWED UNDER THIS
SUBSECTION.
(D) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION
SHALL FORWARD COPIES OF ALL TRANSFER APPLICATIONS AND ATTACHMENTS THERE-
TO AND APPROVAL CERTIFICATES TO THE COMMISSIONER WITHIN THIRTY DAYS
AFTER THE TRANSFER IS APPROVED.
(E) A TAXPAYER ALLOWED A CREDIT PURSUANT TO SECTION FORTY-SEVEN OF THE
INTERNAL REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION THAT IS
ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBSECTION SHALL REMAIN
SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
ER WITH RESPECT TO THE CREDIT ALLOWED BY THIS SUBSECTION, NONE OF WHICH
SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANS-
FERRED.
§ 3. Subdivision (y) of section 1511 of the tax law, as added by chap-
ter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended
by section 5 of subpart B of part I of chapter 59 of the laws of 2023,
paragraph 3 as amended by section 3 of part RR of chapter 59 of the laws
of 2018, paragraph 4 as amended by section 4 of part F of chapter 59 of
the laws of 2013, paragraph 5 as amended by section 3 of part U of chap-
S. 3009--C 26 A. 3009--C
ter 59 of the laws of 2019, paragraph 6 as added by section 3 of part
CCC of chapter 59 of the laws of 2021, is amended to read as follows:
(y) Credit for rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand thirty, a taxpayer, OR A TRANSFEREE
OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH SEVEN OF THIS SUBDIVISION,
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 thirty,
a taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH
SEVEN OF THIS SUBDIVISION, 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.
(B) If the taxpayer OR TRANSFEREE is a partner in a partnership, then
the cap imposed in subparagraph (A) of this paragraph shall be applied
at the entity level, so that the aggregate credit allowed to all the
partners of such partnership in the taxable year does not exceed the
credit cap that is applicable in that taxable year.
(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
(3) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision in the taxable year the credit was
claimed must be added back BY THE TAXPAYER OR TRANSFEREE in the same
taxable year and in the same proportion as the federal recapture.
(4) The credit allowed under this subdivision for any taxable year
shall not reduce the tax due for such year to 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 credits allowed under this subdi-
vision for any taxable year reduces the tax to such 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 eight-
y-eight of this chapter notwithstanding, no interest shall be paid ther-
eon.
S. 3009--C 27 A. 3009--C
(5) [Except in the case of a qualified rehabilitation project under-
taken within a state park, state historic site, or other land owned by
the state, that is under the jurisdiction of the office of parks, recre-
ation and historic preservation, to] TO be eligible for the credit
allowable under this subdivision, the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subdivision for an additional two
calendar years. THE ELIGIBILITY RESTRICTIONS SET FORTH IN THIS PARAGRAPH
SHALL NOT BE APPLICABLE IF:
(A) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN WITHIN A STATE
PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS
UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC
PRESERVATION; OR
(B) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN FOR THE PROVISION
OF AFFORDABLE HOUSING AND THE TAXPAYER HAS ENTERED INTO A REGULATORY
AGREEMENT WITH ANY STATE OR FEDERAL AGENCY OR AUTHORITY, OR ANY OTHER
GOVERNMENT ENTITY THAT IS AUTHORIZED TO ENGAGE IN THE FINANCING,
CONSTRUCTION OR OVERSIGHT OF AFFORDABLE HOUSING WITHIN SUCH ENTITY'S
JURISDICTION, AND WHERE SUCH REGULATORY AGREEMENT SETS FORTH AFFORDABIL-
ITY REQUIREMENTS APPLICABLE FOR A PERIOD OF NOT LESS THAN THIRTY YEARS
AND THAT IS BINDING ON ALL SUCCESSORS OF THE TAXPAYER.
(6) For purposes of this subdivision "small project" means qualified
rehabilitation expenditures totaling two million five hundred thousand
dollars or less.
(7)(A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY
TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY
TAX CREDIT AUTHORIZED PURSUANT TO SECTION FORTY-SEVEN OF THE INTERNAL
REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION PROJECT MAY BE
ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO
INTEREST IN THE QUALIFIED REHABILITATION PROJECT OR IN AN ENTITY WITH AN
OWNERSHIP INTEREST IN THE QUALIFIED REHABILITATION PROJECT. A TRANSFEREE
MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
(B) A TAXPAYER SEEKING TO TRANSFER A CREDIT ALLOWED PURSUANT TO THIS
SUBDIVISION MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE
TRANSFER CONTRACT MUST SPECIFY:
(I) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE
PROJECT;
(II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
(III) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE
CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
(IV) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE
TRANSFER CREDIT; AND
(V) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
IT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT FILES
A TRANSFER APPLICATION WITH THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND SUCH TRANSFER APPLICA-
TION IS APPROVED. THE TRANSFER APPLICATION SHALL INCLUDE THE NAME AND
FEDERAL IDENTIFICATION NUMBERS OF THE TAXPAYER AND EACH PROPOSED TRANS-
S. 3009--C 28 A. 3009--C
FEREE, THE AMOUNT OF CREDIT PROPOSED TO BE TRANSFERRED TO EACH PROPOSED
TRANSFEREE, A COPY OF THE TRANSFER CONTRACT, AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OR THE COMMISSIONER OF PARKS, RECREATION AND HISTOR-
IC PRESERVATION MAY REQUIRE. THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION SHALL APPROVE OR DENY EACH TRANSFER APPLICATION
AND, IF AN APPLICATION IS DENIED, SHALL ISSUE A WRITTEN DETERMINATION TO
THE TAXPAYER. IF THE TRANSFER IS APPROVED, THE COMMISSIONER OF PARKS,
RECREATION AND HISTORIC PRESERVATION SHALL ISSUE A TRANSFER APPROVAL
CERTIFICATE THAT PROVIDES THE NAME OF THE TRANSFEROR AND ALL TRANSFER-
EES, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION AND
THE COMMISSIONER DEEM NECESSARY. A COPY OF THE TRANSFER APPROVAL CERTIF-
ICATE MUST BE ATTACHED TO EACH TRANSFEREE'S TAX RETURN. THE COMMISSIONER
OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE
COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED
NECESSARY FOR THE TRANSFERABILITY OF CREDITS ALLOWED UNDER THIS SUBDIVI-
SION.
(D) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION
SHALL FORWARD COPIES OF ALL TRANSFER APPLICATIONS AND ATTACHMENTS THERE-
TO AND APPROVAL CERTIFICATES TO THE COMMISSIONER WITHIN THIRTY DAYS
AFTER THE TRANSFER IS APPROVED.
(E) A TAXPAYER ALLOWED A CREDIT PURSUANT TO SECTION FORTY-SEVEN OF THE
INTERNAL REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION THAT IS
ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBDIVISION SHALL REMAIN
SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
ER WITH RESPECT TO THE CREDIT ALLOWED BY THIS SUBDIVISION, NONE OF WHICH
SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANS-
FERRED.
§ 4. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2026.
PART F
Section 1. This Part enacts into law major components of legislation
relating to the purchase of residential real property by certain
purchasers, taxation relating thereto, and notice regarding nonsolicita-
tion orders adopted by the secretary of state. 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 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 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 real property law is amended by adding a new article 16
to read as follows:
ARTICLE 16
NINETY-DAY WAITING PERIOD FOR
SALE OF SINGLE-FAMILY AND TWO-FAMILY
RESIDENCES TO CERTAIN PURCHASERS
SECTION 520. DEFINITIONS.
S. 3009--C 29 A. 3009--C
521. NINETY-DAY WAITING PERIOD.
522. ENFORCEMENT.
§ 520. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "COMMUNITY LAND TRUST" SHALL MEAN A NONPROFIT ORGANIZATION EXEMPT
FROM CERTAIN TAXES PURSUANT TO SECTION 501 (C) (3) OR SECTION 501(C) (4)
OF THE UNITED STATES INTERNAL REVENUE CODE AND/OR THAT IS INCORPORATED
UNDER THE NOT-FOR-PROFIT CORPORATION LAW WHOSE PRIMARY PURPOSE IS TO
PROVIDE AFFORDABLE HOUSING BY OWNING LAND AND LEASING OR SELLING RESI-
DENTIAL HOUSING SITUATED ON THAT LAND TO HOUSEHOLDS THAT MEET CERTAIN
INCOME REQUIREMENTS.
2. (A) "COVERED ENTITY" SHALL MEAN AN INSTITUTIONAL REAL ESTATE INVES-
TOR OR AN ENTITY THAT RECEIVES FUNDING FROM AN INSTITUTIONAL REAL ESTATE
INVESTOR FOR THE PURCHASE OF A SINGLE-FAMILY RESIDENCE OR TWO-FAMILY
RESIDENCE. A LOAN PROVIDED IN EXCHANGE FOR A MORTGAGE OF THE RESIDENCE
THAT IS BEING PURCHASED SHALL NOT BE CONSIDERED FUNDING FOR THE PURPOSES
OF THIS SUBDIVISION, PROVIDED THAT SUCH MORTGAGE MUST BE OF A TYPE FOR
WHICH MEMBERS OF THE GENERAL PUBLIC CAN APPLY.
(B) "COVERED ENTITY" SHALL NOT INCLUDE:
(I) AN ORGANIZATION WHICH IS DESCRIBED IN SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE AND EXEMPT FROM TAX UNDER SECTION 501(A) OF THE
INTERNAL REVENUE CODE;
(II) A LAND BANK;
(III) A COMMUNITY LAND TRUST; OR
(IV) A CREDITOR OR ITS LOAN SERVICER ACQUIRING OWNERSHIP OF REAL PROP-
ERTY IN FULL OR PARTIAL SATISFACTION OF A SECURED DEBT.
3. (A) "INSTITUTIONAL REAL ESTATE INVESTOR" SHALL MEAN AN ENTITY OR
COMBINED GROUP THAT, DIRECTLY OR INDIRECTLY:
(I) OWNS TEN OR MORE SINGLE-FAMILY RESIDENCES AND/OR TWO-FAMILY RESI-
DENCES;
(II) MANAGES OR RECEIVES FUNDS POOLED FROM INVESTORS AND ACTS AS A
FIDUCIARY WITH RESPECT TO ONE OR MORE INVESTORS; AND
(III) HAS THIRTY MILLION DOLLARS OR MORE IN NET VALUE OR ASSETS UNDER
MANAGEMENT ON ANY DAY DURING THE TAXABLE YEAR.
(B) AN ENTITY IS CONSIDERED OWNING A SINGLE-FAMILY RESIDENCE OR TWO-
FAMILY RESIDENCE IF IT DIRECTLY OWNS THE SINGLE-FAMILY RESIDENCE OR
TWO-FAMILY RESIDENCE OR INDIRECTLY OWNS TEN PERCENT OR MORE OF THE
SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE.
4. "LAND BANK" SHALL MEAN AN ENTITY CREATED IN ACCORDANCE WITH ARTICLE
SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
5. "SINGLE-FAMILY RESIDENCE" SHALL MEAN A RESIDENTIAL PROPERTY
CONSISTING OF ONE DWELLING UNIT; PROVIDED THAT SUCH TERM SHALL NOT
INCLUDE:
(A) ANY SINGLE-FAMILY RESIDENCE THAT IS TO BE USED AS THE PRINCIPAL
RESIDENCE OF ANY PERSON WHO HAS AN OWNERSHIP INTEREST IN THE COVERED
ENTITY THAT SEEKS TO PURCHASE THE SINGLE-FAMILY RESIDENCE; OR
(B) ANY SINGLE-FAMILY RESIDENCE CONSTRUCTED, ACQUIRED, OR OPERATED
WITH FEDERAL, STATE, OR LOCAL APPROPRIATED FUNDING SOURCES.
6. "TWO-FAMILY RESIDENCE" SHALL MEAN A RESIDENTIAL PROPERTY CONSISTING
OF TWO DWELLING UNITS; PROVIDED THAT SUCH TERM SHALL NOT INCLUDE:
(A) ANY TWO-FAMILY RESIDENCE IN WHICH ONE OF THE DWELLING UNITS IS TO
BE USED AS THE PRINCIPAL RESIDENCE OF ANY PERSON WHO HAS AN OWNERSHIP
INTEREST IN THE COVERED ENTITY THAT SEEKS TO PURCHASE THE TWO-FAMILY
RESIDENCE; OR
(B) ANY TWO-FAMILY RESIDENCE CONSTRUCTED, ACQUIRED, OR OPERATED WITH
FEDERAL, STATE, OR LOCAL APPROPRIATED FUNDING SOURCES.
S. 3009--C 30 A. 3009--C
§ 521. NINETY-DAY WAITING PERIOD. 1. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, ON AND AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE, IT
SHALL BE UNLAWFUL FOR A COVERED ENTITY TO PURCHASE, ACQUIRE, OR OFFER TO
PURCHASE OR ACQUIRE ANY INTEREST IN A SINGLE-FAMILY RESIDENCE OR TWO-FA-
MILY RESIDENCE UNLESS THE SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESI-
DENCE HAS BEEN LISTED FOR SALE TO THE GENERAL PUBLIC FOR AT LEAST NINETY
DAYS.
2. THE NINETY-DAY WAITING PERIOD SET FORTH IN SUBDIVISION ONE OF THIS
SECTION SHALL RESTART IF THE SELLER CHANGES THE ASKING PRICE FOR THE
SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE, AND A COVERED ENTITY
SHALL BE PROHIBITED FROM PURCHASING, ACQUIRING, OR OFFERING TO PURCHASE
OR ACQUIRE ANY INTEREST IN THE SINGLE-FAMILY RESIDENCE OR TWO-FAMILY
RESIDENCE UNTIL IT HAS BEEN LISTED FOR SALE TO THE GENERAL PUBLIC AT THE
NEW ASKING PRICE FOR AT LEAST AN ADDITIONAL NINETY DAYS.
3. A COVERED ENTITY THAT VIOLATES SUBDIVISION ONE OR TWO OF THIS
SECTION MAY BE SUBJECT TO CIVIL DAMAGES AND PENALTIES IN AN AMOUNT NOT
TO EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS.
4. (A) AT THE TIME AN OFFER IS MADE BY A COVERED ENTITY PURCHASING
SUCH RESIDENCE, SUCH COVERED ENTITY SHALL BE REQUIRED TO SUBMIT TO THE
SELLER OR ANYONE ACTING AS AN AGENT FOR SUCH SELLER, A FORM THAT HAS
BEEN SIGNED BY THE COVERED ENTITY PURCHASER, OR AN AUTHORIZED AGENT
THEREOF, AND NOTARIZED, STATING THAT THE PURCHASER IS A COVERED ENTITY.
(B) WITHIN THREE DAYS OF SUBMITTING A FORM TO A SELLER OR SELLER'S
AGENT PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, A COVERED ENTITY
SHALL FILE SUCH FORM WITH THE DEPARTMENT OF LAW. THE DEPARTMENT OF LAW
MAY ISSUE REGULATIONS OR GUIDANCE REGARDING THE PROCEDURE FOR MAKING
SUCH FILING.
(C) ANY COVERED ENTITY OR COVERED ENTITY'S AGENT THAT VIOLATES THIS
SUBDIVISION MAY BE SUBJECT TO CIVIL DAMAGES AND PENALTIES IN AN AMOUNT
NOT TO EXCEED TEN THOUSAND DOLLARS.
5. THE FOLLOWING FORM SHALL BE COMPLETED BY A COVERED ENTITY PURCHAS-
ING A SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE:
"COMPLIANCE WITH REAL PROPERTY LAW ARTICLE 16
PURSUANT TO ARTICLE 16 OF THE NEW YORK STATE REAL PROPERTY LAW,
COVERED ENTITIES ARE REQUIRED TO WAIT AT LEAST 90 DAYS AFTER A SINGLE-
FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE HAS BEEN LISTED FOR SALE TO THE
GENERAL PUBLIC TO PURCHASE, ACQUIRE, OR OFFER TO PURCHASE OR ACQUIRE ANY
INTEREST IN THE SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE. AT THE
TIME AN OFFER IS MADE, THE COVERED ENTITY OR ITS AGENT IS REQUIRED TO
COMPLETE THIS FORM AND SUBMIT IT TO THE SELLER STATING THAT THE PURCHAS-
ER IS A COVERED ENTITY. WITHIN THREE DAYS OF SUBMITTING THE FORM TO THE
SELLER, THE COVERED ENTITY OR ITS AGENT IS REQUIRED TO FILE THIS FORM
WITH THE NEW YORK STATE OFFICE OF THE ATTORNEY GENERAL, IN ACCORDANCE
WITH ANY REGULATIONS OR GUIDANCE THAT THE ATTORNEY GENERAL MAY ISSUE
WITH RESPECT TO SUCH FILING.
THE BUYER OF THIS SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE IS A
COVERED ENTITY AS DEFINED IN NEW YORK STATE REAL PROPERTY LAW § 520. THE
BUYER IS SUBJECT TO THE STATUTORY 90-DAY WAITING PERIOD. FAILURE TO
COMPLY WITH THE 90-DAY WAITING PERIOD MAY RESULT IN CIVIL FINES AND
PENALTIES.
ANY COVERED ENTITY OR COVERED ENTITY'S AGENT THAT DOES NOT COMPLETE
AND SUBMIT THIS FORM AS REQUIRED BY STATUTE, OR ABIDE BY THE STATUTORY
WAITING PERIOD, MAY BE LIABLE FOR CIVIL DAMAGES.
IDENTIFYING INFORMATION
BUYER OR BUYERS OF THIS RESIDENCE:
____________________________
S. 3009--C 31 A. 3009--C
PRINTED NAME AND MAILING ADDRESS
____________________________
PRINTED NAME AND MAILING ADDRESS
BY SIGNING THIS FORM, THE BUYER OR ITS AGENT AFFIRMS THAT THE STATEMENTS
HEREIN ARE TRUE UNDER THE PENALTIES OF PERJURY.
SIGNATURE OF BUYER(S) OR ITS AGENT OF THIS SINGLE-FAMILY RESIDENCE OR
TWO-FAMILY RESIDENCE:
____________________________
SIGNATURE DATE
____________________________
SIGNATURE DATE
____________________________
SIGNATURE OF WITNESSES
____________________________
SIGNATURE DATE
____________________________
SIGNATURE DATE
____________________________
NOTARY ACKNOWLEDGEMENT
(INSERT NOTARY ACKNOWLEDGEMENT FOR THIS FORM HERE)"
§ 522. ENFORCEMENT. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
ATTORNEY GENERAL OF THE STATE OF NEW YORK SHALL HAVE THE AUTHORITY TO
ENFORCE THE PROVISIONS OF SECTION FIVE HUNDRED TWENTY-ONE OF THIS ARTI-
CLE BY APPLYING, IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK, TO
THE SUPREME COURT OF THE STATE OF NEW YORK, ON NOTICE OF FIVE DAYS, FOR
AN ORDER ENJOINING THE CONTINUANCE OF SUCH VIOLATIVE ACTIVITY, INCLUDING
BUT NOT LIMITED TO BY BRINGING AN ACTION FOR INJUNCTIVE OR DECLARATORY
RELIEF IF A SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE IS IN THE
PROCESS OF BEING OR HAS BEEN SOLD IN A MANNER THAT CONTRAVENES THE
REQUIREMENTS OF SECTION FIVE HUNDRED TWENTY-ONE OF THIS ARTICLE, AND
IMPOSING CIVIL DAMAGES AND PENALTIES PURSUANT TO SUBDIVISIONS THREE AND
FOUR OF SECTION FIVE HUNDRED TWENTY-ONE OF THIS ARTICLE, AS APPLICABLE.
§ 2. Severability. If any provision of this act, or any application of
any provision of this act, is held to be invalid, that shall not affect
the validity or effectiveness of any other provision of this act, or of
any other application of any provision of this act, which can be given
effect without that provision or application; and to that end, the
provisions and applications of this act are severable.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.
SUBPART B
Section 1. Subdivision 9 of section 208 of the tax law is amended by
adding a new paragraph (c-4) to read as follows:
(C-4) DEPRECIATION AND INTEREST DEDUCTION ADJUSTMENTS FOR COVERED
PROPERTIES OWNED BY AN INSTITUTIONAL REAL ESTATE INVESTOR. (1) NOTWITH-
STANDING ANY OTHER PROVISION OF THIS SECTION, IN THE CASE OF A CORPO-
RATION OR COMBINED GROUP THAT IS AN INSTITUTIONAL REAL ESTATE INVESTOR
OR A PARTNER, MEMBER OR SHAREHOLDER OF AN ENTITY THAT IS AN INSTITU-
TIONAL REAL ESTATE INVESTOR, ENTIRE NET INCOME SHALL BE COMPUTED WITH
THE ADJUSTMENTS FOR DEPRECIATION AND INTEREST RELATED TO COVERED PROPER-
TIES AS SET FORTH IN THIS PARAGRAPH.
S. 3009--C 32 A. 3009--C
(2) DEFINITIONS. (A) "INSTITUTIONAL REAL ESTATE INVESTOR" MEANS AN
ENTITY OR COMBINED GROUP THAT, DIRECTLY OR INDIRECTLY (I) OWNS TEN OR
MORE COVERED PROPERTIES, (II) MANAGES FUNDS POOLED FROM INVESTORS AND
ACTS AS A FIDUCIARY WITH RESPECT TO ONE OR MORE INVESTORS, AND (III) HAS
THIRTY MILLION DOLLARS OR MORE IN NET VALUE OR ASSETS UNDER MANAGEMENT
ON ANY DAY DURING THE TAXABLE YEAR. AN ENTITY IS CONSIDERED OWNING A
COVERED PROPERTY IF IT DIRECTLY OWNS THE COVERED PROPERTY OR INDIRECTLY
OWNS TEN PERCENT OR MORE OF THE COVERED PROPERTY.
(B) "COVERED PROPERTY" MEANS A RESIDENTIAL PROPERTY CONSISTING OF NO
MORE THAN TWO DWELLING UNITS LOCATED IN NEW YORK STATE.
(3) DEPRECIATION DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, NO
DEDUCTION FOR DEPRECIATION ALLOWED UNDER THE INTERNAL REVENUE CODE OR
THIS SECTION SHALL BE ALLOWED.
(4) INTEREST DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, THE
INTEREST DEDUCTION FOR FEDERAL INCOME TAX PURPOSES ALLOWED UNDER SECTION
ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE SHALL NOT BE
ALLOWED AND MUST BE ADDED BACK IN THE COMPUTATION OF ENTIRE NET INCOME,
EXCEPT WITH RESPECT TO INTEREST PAID OR ACCRUED IN THE TAXABLE YEAR WHEN
SUCH COVERED PROPERTY IS SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPAL
RESIDENCE OF SUCH INDIVIDUAL OR SOLD TO A NONPROFIT ORGANIZATION THAT
HAS AS ITS PRINCIPAL PURPOSE THE CREATION, DEVELOPMENT, OR PRESERVATION
OF AFFORDABLE HOUSING. FOR PURPOSES OF THIS SUBPARAGRAPH, ANY AMOUNT OF
INTEREST THAT WOULD HAVE BEEN ALLOWED UNDER SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE IN CONNECTION WITH A COVERED PROPERTY
BUT FOR AN ELECTION TO TREAT SUCH INTEREST AS CHARGEABLE TO CAPITAL
ACCOUNT SHALL BE TREATED AS AN AMOUNT ALLOWED UNDER SECTION ONE HUNDRED
SIXTY-THREE OF THE INTERNAL REVENUE CODE.
§ 2. Section 612 of the tax law is amended by adding a new subsection
(y) to read as follows:
(Y) DEPRECIATION AND INTEREST ADJUSTMENTS FOR COVERED PROPERTIES OWNED
BY AN INSTITUTIONAL REAL ESTATE INVESTOR. (1) NOTWITHSTANDING ANY OTHER
PROVISION OF THIS SECTION, IN THE CASE OF A TAXPAYER THAT IS A PARTNER,
MEMBER OR SHAREHOLDER OF AN ENTITY THAT IS AN INSTITUTIONAL REAL ESTATE
INVESTOR AS DEFINED IN PARAGRAPH (C-4) OF SUBDIVISION NINE OF SECTION
TWO HUNDRED EIGHT OF THIS CHAPTER, NEW YORK ADJUSTED GROSS INCOME SHALL
BE COMPUTED WITH ADJUSTMENTS FOR DEPRECIATION AND INTEREST RELATED TO
COVERED PROPERTIES AS SET FORTH IN THIS SUBSECTION.
(2) DEPRECIATION DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, NO
DEDUCTION FOR DEPRECIATION ALLOWED UNDER THE INTERNAL REVENUE CODE OR
THIS SECTION SHALL BE ALLOWED.
(3) FEDERAL INTEREST DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES,
THE INTEREST DEDUCTION FOR FEDERAL INCOME TAX PURPOSES ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE SHALL NOT
BE ALLOWED AND MUST BE ADDED BACK IN THE COMPUTATION OF NEW YORK
ADJUSTED GROSS INCOME, EXCEPT WITH RESPECT TO INTEREST PAID OR ACCRUED
IN THE TAXABLE YEAR WHEN SUCH COVERED PROPERTY IS SOLD TO AN INDIVIDUAL
FOR USE AS THE PRINCIPAL RESIDENCE OF SUCH INDIVIDUAL OR SOLD TO A
NONPROFIT ORGANIZATION THAT HAS AS ITS PRINCIPAL PURPOSE THE CREATION,
DEVELOPMENT, OR PRESERVATION OF AFFORDABLE HOUSING. FOR PURPOSES OF THIS
PARAGRAPH, ANY AMOUNT OF INTEREST THAT WOULD HAVE BEEN ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE IN
CONNECTION WITH A COVERED PROPERTY BUT FOR AN ELECTION TO TREAT SUCH
INTEREST AS CHARGEABLE TO CAPITAL ACCOUNT SHALL BE TREATED AS AN AMOUNT
ALLOWED UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE
CODE.
S. 3009--C 33 A. 3009--C
§ 3. Subdivision (b) of section 1503 of the tax law is amended by
adding a new paragraph 17 to read as follows:
(17) DEPRECIATION AND INTEREST ADJUSTMENTS FOR COVERED PROPERTIES
OWNED BY AN INSTITUTIONAL REAL ESTATE INVESTOR. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF THIS SECTION, IN THE CASE OF A TAXPAYER THAT IS AN
INSTITUTIONAL REAL ESTATE INVESTOR OR PARTNER, MEMBER OR SHAREHOLDER OF
AN ENTITY THAT IS AN INSTITUTIONAL REAL ESTATE INVESTOR AS DEFINED IN
PARAGRAPH (C-4) OF SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS
CHAPTER, ENTIRE NET INCOME SHALL BE COMPUTED WITH ADJUSTMENTS FOR DEPRE-
CIATION AND INTEREST RELATED TO COVERED PROPERTIES AS SET FORTH IN THIS
PARAGRAPH.
(B) DEPRECIATION DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, NO
DEDUCTION FOR DEPRECIATION ALLOWED UNDER THE INTERNAL REVENUE CODE OR
THIS SECTION SHALL BE ALLOWED.
(C) FEDERAL INTEREST DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES,
THE INTEREST DEDUCTION FOR FEDERAL INCOME TAX PURPOSES ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE SHALL NOT
BE ALLOWED AND MUST BE ADDED BACK IN THE COMPUTATION OF ENTIRE NET
INCOME, EXCEPT WITH RESPECT TO INTEREST PAID OR ACCRUED IN THE TAXABLE
YEAR WHEN SUCH COVERED PROPERTY IS SOLD TO AN INDIVIDUAL FOR USE AS THE
PRINCIPAL RESIDENCE OF SUCH INDIVIDUAL OR SOLD TO A NONPROFIT ORGANIZA-
TION THAT HAS AS ITS PRINCIPAL PURPOSE THE CREATION, DEVELOPMENT, OR
PRESERVATION OF AFFORDABLE HOUSING. FOR PURPOSES OF THIS SUBPARAGRAPH,
ANY AMOUNT OF INTEREST THAT WOULD HAVE BEEN ALLOWED UNDER SECTION ONE
HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE IN CONNECTION WITH A
COVERED PROPERTY BUT FOR AN ELECTION TO TREAT SUCH INTEREST AS CHARGEA-
BLE TO CAPITAL ACCOUNT SHALL BE TREATED AS AN AMOUNT ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE.
§ 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
SUBPART C
Section 1. Paragraph (a) of subdivision 3 of section 442-h of the real
property law, as amended by chapter 505 of the laws of 2001, is amended
to read as follows:
(a) If the secretary of state determines that some owners of residen-
tial real property within a defined geographic area are subject to
intense and repeated solicitation by real estate brokers and salesper-
sons to place their property for sale with such real estate brokers or
salespersons, or are subject to intense and repeated solicitation by
other persons regularly engaged in the trade or business of buying and
selling real estate to sell their real estate, the secretary of state
may adopt a rule establishing a cease and desist zone, which zone shall
be bounded or otherwise specifically defined in the rule. After the
secretary of state has established a cease and desist zone, the owners
of residential real property located within the zone may file an owner's
statement with the secretary of state expressing their wish not to be
solicited by real estate brokers, salespersons or other persons regular-
ly engaged in the trade or business of buying and selling real estate.
The form and content of the statement shall be prescribed by the secre-
tary of state. AFTER A CEASE AND DESIST ZONE HAS BEEN ESTABLISHED BY
THE SECRETARY OF STATE, THE SECRETARY OF STATE SHALL PROVIDE PUBLIC
NOTICE ON ITS WEBSITE OF SUCH ZONE, SHALL PUBLISH NOTICE OF SUCH ZONE AT
LEAST ONCE ANNUALLY IN A NEWSPAPER OF GENERAL CIRCULATION IN THE AREA
AFFECTED BY THE CEASE AND DESIST ZONE, AND SHALL PROVIDE SUCH FURTHER
S. 3009--C 34 A. 3009--C
PUBLIC NOTICE OF SUCH CEASE AND DESIST ZONE AS THE SECRETARY OF STATE
DEEMS NECESSARY TO MAXIMIZE AWARENESS TO OWNERS OF RESIDENTIAL REAL
PROPERTY LOCATED WITHIN THE CEASE AND DESIST ZONE THAT THEY MAY FILE A
STATEMENT PURSUANT TO THIS PARAGRAPH. After a cease and desist zone has
been established by the secretary of state, no real estate broker,
salesperson or other person regularly engaged in the trade or business
of buying and selling real estate shall solicit a listing from any owner
who has filed a statement with the secretary of state if such owner's
name appears on the current cease and desist list prepared by the secre-
tary of state. The prohibition on solicitation shall apply to direct
forms of solicitation such as the use of the telephone, the mail,
personal contact and other forms of direct solicitation as may be speci-
fied by the secretary of state.
§ 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.
§ 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 Subparts A through C of this act shall
be as specifically set forth in the last section of such Subparts.
PART G
Intentionally Omitted
PART H
Section 1. This Part enacts into law major components of legislation
relating to the excelsior jobs program and the empire state jobs
retention program. Each component is wholly contained within a Subpart
identified as Subpart A and Subpart B. 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 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 Subpart in which it is found. Section three
of this Part sets forth the general effective date of this Part.
SUBPART A
Section 1. Section 352 of the economic development law is amended by
adding a new subdivision 25 to read as follows:
25. "SEMICONDUCTOR SUPPLY CHAIN PROJECT" MEANS A PROJECT DEEMED BY THE
COMMISSIONER TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE PRIMARILY
S. 3009--C 35 A. 3009--C
AIMED AT SUPPORTING THE GROWTH OF THE SEMICONDUCTOR MANUFACTURING AND
RELATED EQUIPMENT AND MATERIAL SUPPLIER SECTOR. "SEMICONDUCTOR SUPPLY
CHAIN PROJECT" SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, SEMICONDUCTOR
DEVICE MANUFACTURING, PRODUCERS OF COMPONENT PARTS, DIRECT INPUT MATERI-
ALS AND EQUIPMENT NECESSARY FOR THE MANUFACTURE OF SEMICONDUCTOR CHIPS,
MACHINERY, EQUIPMENT, AND MATERIALS NECESSARY FOR THE OPERATIONAL EFFI-
CIENCY OF SEMICONDUCTOR MANUFACTURING FACILITIES, OTHER SUCH INPUTS
DIRECTLY SUPPORTIVE OF THE DOMESTIC PRODUCTION OF SEMICONDUCTOR CHIPS,
AND COMPANIES ENGAGED IN THE ASSEMBLY, TESTING, PACKAGING AND ADVANCED
PACKAGING SEMICONDUCTOR VALUE CHAIN. "SEMICONDUCTOR SUPPLY CHAIN
PROJECT" SHALL NOT INCLUDE A PROJECT PRIMARILY COMPOSED OF: (I) MACHIN-
ERY, EQUIPMENT, OR MATERIALS THAT ARE INPUTS TO MANUFACTURING GENERALLY,
BUT ARE NOT DIRECT INPUTS TO SEMICONDUCTOR MANUFACTURING IN SPECIFIC;
(II) THE PRODUCTION OF PRODUCTS OR DEVELOPMENT OF TECHNOLOGIES THAT
WOULD PRODUCE ONLY MARGINAL AND INCREMENTAL BENEFITS TO THE SEMICONDUC-
TOR MANUFACTURING SECTOR; (III) PROJECTS THAT WOULD OTHERWISE QUALIFY AS
A GREEN CHIPS PROJECT AS DEFINED IN SECTION TWENTY-FOUR OF THIS SECTION.
§ 2. Paragraphs (m) and (n) of subdivision 1 of section 353 of the
economic development law, as amended by chapter 494 of the laws of 2022,
are amended and a new paragraph (o) is added to read as follows:
(m) as a participant operating in one of the industries listed in
paragraphs (a) through (k) of this subdivision and operating or sponsor-
ing child care services to its employees as defined in section three
hundred fifty-two of this article; [or]
(n) as a Green CHIPS project[.]; OR
(O) AS A COMPANY OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARA-
GRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND ENGAGING IN A SEMICONDUC-
TOR SUPPLY CHAIN PROJECT AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO
OF THIS ARTICLE.
§ 3. Subdivisions 1, 2 and 3 of section 355 of the economic develop-
ment law, as amended by chapter 494 of the laws of 2022, are amended to
read as follows:
1. Excelsior jobs tax credit component. A participant in the excelsior
jobs program shall be eligible to claim a credit for each net new job it
creates in New York state. In a project that is not a green project, the
amount of such credit per job shall be equal to the product of the gross
wages paid and up to 6.85 percent. In a green project, or a Green CHIPS
project, the amount of such credit per job shall be equal to the product
of the gross wages paid and up to 7.5 percent. Provided, however, given
the transformational nature of Green CHIPS projects, only the first two
hundred thousand dollars of gross wages per job shall be eligible for
this credit. The maximum amount of gross wages per job for a Green CHIPS
project may be adjusted for inflation at an annual amount determined by
the commissioner in a manner substantially similar to the cost of living
adjustments calculated by the United States Social Security Adminis-
tration based on changes in consumer price indices or a rate of four
percent per year, whichever is higher. IN A SEMICONDUCTOR SUPPLY CHAIN
PROJECT, THE AMOUNT OF SUCH CREDIT PER JOB SHALL BE EQUAL TO THE PRODUCT
OF THE GROSS WAGES PAID AND UP TO SEVEN PERCENT.
2. Excelsior investment tax credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on qualified
investments. In a project that is not a green project, the credit shall
be equal to two percent of the cost or other basis for federal income
tax purposes of the qualified investment. In a green project, the credit
shall be equal to five percent of the cost or other basis for federal
income tax purposes of the qualified investment. In a project for child
S. 3009--C 36 A. 3009--C
care services or a Green CHIPS project, the credit shall be up to five
percent of the cost or other basis for federal income tax purposes of
the qualified investment in child care services or in the Green CHIPS
project as applicable. IN A SEMICONDUCTOR SUPPLY CHAIN PROJECT, THE
CREDIT SHALL BE UP TO THREE PERCENT OF THE COST OR OTHER BASIS FOR
FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT. A participant
may not claim both the excelsior investment tax credit component and the
investment tax credit set forth in subdivision one of section two
hundred ten-B, subsection (a) of section six hundred six, the former
subsection (i) of section fourteen hundred fifty-six, or subdivision (q)
of section fifteen hundred eleven of the tax law for the same property
in any taxable year, except that a participant may claim both the
excelsior investment tax credit component and the investment tax credit
for research and development property. In addition, a taxpayer who or
which is qualified to claim the excelsior investment tax credit compo-
nent and is also qualified to claim the brownfield tangible property
credit component under section twenty-one of the tax law may claim
either the excelsior investment tax credit component or such tangible
property credit component, but not both with regard to a particular
piece of property. A credit may not be claimed until a business enter-
prise has received a certificate of tax credit, provided that qualified
investments made on or after the issuance of the certificate of eligi-
bility but before the issuance of the certificate of tax credit to the
business enterprise, may be claimed in the first taxable year for which
the business enterprise is allowed to claim the credit. Expenses
incurred prior to the date the certificate of eligibility is issued are
not eligible to be included in the calculation of the credit.
3. Excelsior research and development tax credit component. A partic-
ipant in the excelsior jobs program shall be eligible to claim a credit
equal to fifty percent of the portion of the participant's federal
research and development tax credit that relates to the participant's
research and development expenditures in New York state during the taxa-
ble year; provided however, if not a green project, the excelsior
research and development tax credit shall not exceed six percent of the
qualified research and development expenditures attributable to activ-
ities conducted in New York state, or, if a green project or a Green
CHIPS project, the excelsior research and development tax credit shall
not exceed eight percent of the research and development expenditures
attributable to activities conducted in New York state, OR IF A SEMICON-
DUCTOR SUPPLY CHAIN PROJECT, THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX
CREDIT SHALL NOT EXCEED SEVEN PERCENT OF THE QUALIFIED RESEARCH AND
DEVELOPMENT EXPENDITURES ATTRIBUTABLE TO ACTIVITIES CONDUCTED IN NEW
YORK STATE. If the federal research and development credit has expired,
then the research and development expenditures relating to the federal
research and development credit shall be calculated as if the federal
research and development credit structure and definition in effect in
two thousand nine were still in effect. Notwithstanding any other
provision of this chapter to the contrary, research and development
expenditures in this state, including salary or wage expenses for jobs
related to research and development activities in this state, may be
used as the basis for the excelsior research and development tax credit
component and the qualified emerging technology company facilities,
operations and training credit under the tax law.
§ 4. Section 359 of the economic development law, as amended by chap-
ter 494 of the laws of 2022, is amended to read as follows:
S. 3009--C 37 A. 3009--C
§ 359. Cap on tax credit. 1. Except with respect to tax credits issued
to Green CHIPS projects as articulated in subdivision four of this
section, the total amount of tax credits issued by the commissioner for
any taxable year may not exceed the limitations set forth in this subdi-
vision. Except with respect to tax credits issued to Green CHIPS
projects as articulated in subdivision four of this section, one-half of
any amount of tax credits not awarded for a particular taxable year may
be used by the commissioner to award tax credits in another taxable
year.
Credit components in the aggregate With respect to taxable
shall not exceed: years beginning in:
$ 50 million 2011
$ 100 million 2012
$ 150 million 2013
$ 200 million 2014
$ 250 million 2015
$ 183 million 2016
$ 183 million 2017
$ 183 million 2018
$ 183 million 2019
$ 183 million 2020
$ 183 million 2021
$ 133 million 2022
$ 83 million 2023
$ 36 million 2024
$ 200 million 2025
$ 200 million 2026
$ 200 million 2027
$ 200 million 2028
$ 200 million 2029
$ 200 MILLION 2030
$ 200 MILLION 2031
$ 200 MILLION 2032
$ 200 MILLION 2033
$ 200 MILLION 2034
2. Twenty-five percent of tax credits shall be allocated to businesses
accepted into the program under subdivision four of section three
hundred fifty-three of this article and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
3. Provided, however, if by September thirtieth of a calendar year,
the department has not allocated the full amount of credits available in
that year to either: (i) businesses accepted into the program under
subdivision four of section three hundred fifty-three of this article or
(ii) businesses accepted into the program under subdivision three of
section three hundred fifty-three of this article, the commissioner may
allocate any remaining tax credits to businesses referenced in this
paragraph as needed; provided, however, that under no circumstances may
the aggregate statutory cap for all program years be exceeded. One
hundred percent of the unawarded amounts remaining at the end of two
thousand twenty-nine may be allocated in subsequent years, notwithstand-
ing the fifty percent limitation on any amounts of tax credits not
awarded in taxable years two thousand eleven through two thousand twen-
S. 3009--C 38 A. 3009--C
ty-nine. Provided, however, no tax credits may be allowed for taxable
years beginning on or after January first, two thousand [forty] FIFTY.
4. The total amount of tax credits issued by the commissioner for the
taxable years two thousand twenty-two to two thousand forty-one for
Green CHIPS projects shall not exceed five hundred million per year. One
hundred percent of any amount of tax credits not awarded for a partic-
ular taxable year may be used by the commissioner to award tax credits
in another taxable year. Notwithstanding the foregoing, Green CHIPS
projects may be allowed to claim credits for taxable years up to January
first, two thousand fifty.
§ 5. Article 22 of the economic development law is REPEALED.
§ 6. Paragraph (a) of subdivision 50 of section 210-B of the tax law,
as added by section 2 of part O of chapter 59 of the laws of 2015, is
amended to read as follows:
(a) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-NINE, A taxpayer that has been approved by the commissioner of
economic development to participate in the employee training incentive
program and has been issued a certificate of tax credit pursuant to
section four hundred forty-three of the economic development law shall
be allowed to claim a credit against the tax imposed by this article.
The credit shall equal fifty percent of a taxpayer's eligible training
costs, up to a credit of ten thousand dollars per employee completing
eligible training pursuant to paragraph (a) of subdivision three of
section four hundred forty-one of the economic development law. The
credit shall equal fifty percent of the stipend paid to an intern, up to
a credit of three thousand dollars per intern completing eligible train-
ing pursuant to paragraph (b) of subdivision three of section four
hundred forty-one of the economic development law. In no event shall a
taxpayer be allowed a credit greater than the amount of credit listed on
the certificate of tax credit issued by the commissioner of economic
development. The credit will be allowed in the taxable year in which the
eligible training is completed.
§ 7. Paragraph 1 of subsection (ddd) of section 606 of the tax law, as
added by section 3 of part O of chapter 59 of the laws of 2015, is
amended to read as follows:
(1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-NINE, A taxpayer that has been approved by the commissioner of
economic development to participate in the employee training incentive
program and has been issued a certificate of tax credit pursuant to
section four hundred forty-three of the economic development law shall
be allowed to claim a credit against the tax imposed by this article.
The credit shall equal fifty percent of a taxpayer's eligible training
costs, up to a credit of ten thousand dollars per employee completing
eligible training pursuant to paragraph (a) of subdivision three of
section four hundred forty-one of the economic development law. The
credit shall equal fifty percent of the stipend paid to an intern, up to
a credit of three thousand dollars per intern completing eligible train-
ing pursuant to paragraph (b) of subdivision three of section four
hundred forty-one of the economic development law. In no event shall a
taxpayer be allowed a credit greater than the amount listed on the
certificate of tax credit issued by the commissioner of economic devel-
opment. In the case of a taxpayer who is a partner in a partnership,
member of a limited liability company or shareholder in an S corpo-
ration, the taxpayer shall be allowed its pro rata share of the credit
earned by the partnership, limited liability company or S corporation.
S. 3009--C 39 A. 3009--C
The credit will be allowed in the taxable year in which the eligible
training is completed.
§ 8. The economic development law is amended by adding a new article
17-A to read as follows:
ARTICLE 17-A
SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM
SECTION 359-A. SHORT TITLE.
359-B. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
359-C. DEFINITIONS.
359-D. ELIGIBILITY CRITERIA.
359-E. APPLICATION AND APPROVAL PROCESS.
359-F. POWERS AND DUTIES OF THE COMMISSIONER.
359-G. SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT.
359-H. REPORTING.
§ 359-A. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT ACT".
§ 359-B. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS
HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF
PUBLIC POLICY, TO CREATE COMPETITIVE FINANCIAL INCENTIVES TO ATTRACT
LARGE SCALE SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECTS TO NEW YORK
STATE, AND TO POSITION NEW YORK STATE TO BE AT THE CENTER OF CUTTING
EDGE INNOVATIONS IN THE SEMICONDUCTOR INDUSTRY.
§ 359-C. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. "CERTIFICATE OF ELIGIBILITY" MEANS THE DOCUMENT ISSUED BY THE
DEPARTMENT TO AN APPLICANT THAT HAS COMPLETED AN APPLICATION TO BE
ADMITTED INTO THE SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM
AND HAS BEEN ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF
A CERTIFICATE OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBIL-
ITY TO CLAIM THE TAX CREDIT.
2. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
IPANT BY THE DEPARTMENT, AFTER THE DEPARTMENT HAS VERIFIED THAT THE
PARTICIPANT HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE.
THE CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED
AND SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CREDIT UNDER THIS ARTICLE
THAT A PARTICIPANT MAY CLAIM AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH
SUCH CREDIT MAY BE CLAIMED.
3. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
(A) HAS COMPLETED AN APPLICATION PRESCRIBED BY THE DEPARTMENT TO BE
ADMITTED INTO THE PROGRAM;
(B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
(C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
THREE HUNDRED FIFTY-NINE-D AND SUBDIVISION TWO OF SECTION THREE HUNDRED
FIFTY-NINE-E OF THIS ARTICLE; AND
(D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
4. "PRELIMINARY SCHEDULE OF BENEFITS" MEANS THE AGGREGATE AMOUNT OF
THE TAX CREDIT THAT A PARTICIPANT IN THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT PROJECT PROGRAM MAY BE ELIGIBLE TO RECEIVE PURSUANT TO THIS
ARTICLE. THE SCHEDULE SHALL INDICATE THE ANNUAL AMOUNT OF THE CREDIT A
PARTICIPANT MAY CLAIM IN EACH OF ITS TEN YEARS OF ELIGIBILITY. THE
PRELIMINARY SCHEDULE OF BENEFITS SHALL BE ISSUED BY THE DEPARTMENT WHEN
THE DEPARTMENT APPROVES THE APPLICATION FOR ADMISSION INTO THE PROGRAM.
5. "QUALIFIED INVESTMENT" MEANS AN INVESTMENT IN TANGIBLE PROPERTY
(INCLUDING A BUILDING OR A STRUCTURAL COMPONENT OF A BUILDING) OWNED BY
A BUSINESS ENTERPRISE WHICH:
S. 3009--C 40 A. 3009--C
(A) IS DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE;
(B) HAS A USEFUL LIFE OF FOUR YEARS OR MORE;
(C) IS ACQUIRED BY PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVEN-
TY-NINE (D) OF THE INTERNAL REVENUE CODE;
(D) HAS A SITUS IN THIS STATE; AND
(E) IS PLACED IN SERVICE IN THE STATE ON OR AFTER THE DATE THE CERTIF-
ICATE OF ELIGIBILITY IS ISSUED TO THE BUSINESS ENTERPRISE.
6. "SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT" MEANS A PROJECT
FOR A PHYSICAL RESEARCH AND DEVELOPMENT FACILITY, DEEMED BY THE COMMIS-
SIONER AS BEING PRIMARILY AIMED AT SUPPORTING RESEARCH AND DEVELOPMENT
WITHIN THE SEMICONDUCTOR MANUFACTURING AND RELATED EQUIPMENT AND MATERI-
AL SUPPLIER SECTOR. SUCH PROJECT SHALL INCUR AT LEAST ONE HUNDRED
MILLION DOLLARS IN QUALIFIED INVESTMENT IN NEW YORK STATE. SUCH PROJECT
MUST LEAD TO THE ESTABLISHMENT AND OPERATION OF A RESEARCH AND DEVELOP-
MENT FACILITY SEPARATE AND APART FROM NEW OR EXISTING SEMICONDUCTOR OR
SEMICONDUCTOR SUPPLY CHAIN MANUFACTURING FACILITIES.
§ 359-D. ELIGIBILITY CRITERIA. 1. TO BE A PARTICIPANT IN THE SEMICON-
DUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM, A BUSINESS ENTITY SHALL
OPERATE IN NEW YORK STATE AND BE UNDERTAKING A SEMICONDUCTOR RESEARCH
AND DEVELOPMENT PROJECT AS DEFINED IN SECTION THREE HUNDRED FIFTY-NINE-C
OF THIS ARTICLE.
2. A BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION
AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A BUSINESS ENTITY
MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE
BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BIND-
ING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY.
§ 359-E. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTERPRISE
MUST SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER.
2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE MUST:
(A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
BUSINESS ENTERPRISE'S TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY
INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE
FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(B) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS EMPLOYER
INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A
RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE;
(D) PROVIDE TO THE DEPARTMENT, UPON REQUEST, A PLAN OUTLINING THE
SCHEDULE FOR MEETING THE INVESTMENT REQUIREMENTS AS SET FORTH IN SUBDI-
VISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C OF THIS ARTICLE. SUCH
PLAN MUST INCLUDE THE AMOUNT AND DESCRIPTION OF PROJECTED QUALIFIED
INVESTMENTS FOR WHICH IT PLANS TO CLAIM THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT TAX CREDIT;
(E) AGREE TO ALLOW THE DEPARTMENT AND THE DEPARTMENT OF TAXATION AND
FINANCE TO SHARE AND EXCHANGE INFORMATION CONTAINED IN OR DERIVED FROM
THE APPLICATIONS FOR ADMISSION INTO THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT PROJECT PROGRAM AND THE CREDIT CLAIM FORMS SUBMITTED TO THE
DEPARTMENT OF TAXATION AND FINANCE. HOWEVER, ANY INFORMATION SHARED AS A
RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
(F) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
AND FEDERAL TAX LAWS.
S. 3009--C 41 A. 3009--C
3. AFTER REVIEWING A BUSINESS ENTERPRISE'S COMPLETED APPLICATION AND
DETERMINING THAT THE BUSINESS ENTERPRISE WILL MEET THE CONDITION SET
FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C OF THIS
ARTICLE, THE DEPARTMENT MAY ADMIT THE APPLICANT INTO THE PROGRAM AND
PROVIDE THE APPLICANT WITH A CERTIFICATE OF ELIGIBILITY AND A PRELIMI-
NARY SCHEDULE OF BENEFITS BY YEAR BASED ON THE APPLICANT'S PROJECTIONS
AS SET FORTH IN ITS APPLICATION. THIS PRELIMINARY SCHEDULE OF BENEFITS
DELINEATES THE MAXIMUM POSSIBLE BENEFITS AN APPLICANT MAY RECEIVE.
4. IN ORDER TO BECOME A PARTICIPANT IN THE PROGRAM, AN APPLICANT MUST
SUBMIT EVIDENCE THAT IT SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN
SECTION THREE HUNDRED FIFTY-NINE-D OF THIS ARTICLE AND SUBDIVISION TWO
OF THIS SECTION IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE. AFTER
REVIEWING SUCH EVIDENCE AND FINDING IT SUFFICIENT, THE DEPARTMENT SHALL
CERTIFY THE APPLICANT AS A PARTICIPANT AND ISSUE TO THAT PARTICIPANT A
CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO RECEIVE A CERTIFICATE
OF TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE PARTICIPANT MUST SUBMIT
TO THE DEPARTMENT A PERFORMANCE REPORT DEMONSTRATING THAT THE PARTIC-
IPANT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN THIS
ARTICLE.
5. A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST TAXA-
BLE YEAR THAT THE BUSINESS ENTERPRISE RECEIVES A CERTIFICATE OF TAX
CREDIT. A PARTICIPANT MAY CLAIM SUCH BENEFITS FOR THE NEXT NINE CONSEC-
UTIVE TAXABLE YEARS, PROVIDED THAT THE PARTICIPANT DEMONSTRATES TO THE
DEPARTMENT THAT IT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECI-
FIED IN SECTION THREE HUNDRED FIFTY-NINE-D OF THIS ARTICLE AND SUBDIVI-
SION TWO OF THIS SECTION IN EACH OF THOSE TAXABLE YEARS.
§ 359-F. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND
ELIGIBILITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES
OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN SECTION THREE HUNDRED FIFTY-NINE-G OF THIS ARTICLE WHICH,
NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPANTS. PARTICIPANTS MUST INCLUDE
THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE ANY TAX
BENEFITS UNDER THIS ARTICLE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C OF
THIS ARTICLE AND SECTION THREE HUNDRED FIFTY-NINE-D OF THIS ARTICLE.
§ 359-G. SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT. 1. A
PARTICIPANT IN THE SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT
PROGRAM SHALL BE ELIGIBLE TO CLAIM A CREDIT ON QUALIFIED INVESTMENTS IN
SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECTS IN NEW YORK STATE. THE
AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO FIFTEEN PERCENT OF THE COST OR
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT.
2. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CRED-
IT ISSUED BY THE COMMISSIONER SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE
FOR GREEN CHIPS TAX CREDITS AS PROVIDED UNDER SUBDIVISION FOUR OF
SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
§ 359-H. REPORTING. THE CORPORATION, BEGINNING FEBRUARY FIRST, TWO
THOUSAND TWENTY-SEVEN, AND ANNUALLY THEREAFTER PROVIDED PROGRAM FUNDS
REMAIN, SHALL SUBMIT A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT
S. 3009--C 42 A. 3009--C
OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY. SUCH ANNUAL REPORT SHALL
INCLUDE, BUT NEED NOT BE LIMITED TO: THE NUMBER OF PARTICIPANTS APPROVED
FOR THE PROGRAM; NAMES OF BUSINESS ENTITIES ADMITTED TO THE PROGRAM;
REGIONAL ECONOMIC DEVELOPMENT COUNCIL REGION WHEREIN THE PROJECT
RESIDES; THE TOTAL AMOUNT OF BENEFITS APPROVED PER BUSINESS AND IN TOTAL
FOR THE PROGRAM; TOTAL PRIVATE SECTOR CO-INVESTMENT PROVIDED BY EACH
APPROVED BUSINESS AND IN TOTAL FOR THE PROGRAM; TOTAL JOBS CREATED AT
THE PROJECT LOCATION FOR ALL YEARS IN WHICH THE RECIPIENT IS RECEIVING
BENEFITS UNDER THE PROGRAM, INCLUDING THE MEDIAN WAGE PAID TO EMPLOYEES
AT THE PROJECT LOCATION AND TYPES OF JOBS CREATED; AND SUCH OTHER INFOR-
MATION AS THE COMMISSIONER DETERMINES IS NECESSARY AND APPROPRIATE.
ADDITIONALLY, IN ALL YEARS IN WHICH THE PROGRAM IS FULLY OPERATIONAL,
SUCH REPORT SHALL INCLUDE NOTEWORTHY PROJECTS WHICH SERVE TO HIGHLIGHT
THE DEVELOPMENTS OCCURRING IN NEW YORK STATE AS A RESULT OF THE PROGRAM.
SUCH REPORT SHALL BE INCLUDED ON THE CORPORATION'S WEBSITE AND ALL
PROGRAM PARTICIPANTS SHALL ALSO BE INCLUDED IN THE DATABASE OF ECONOMIC
INCENTIVES AS DEFINED IN SECTION FIFTY-EIGHT OF SECTION ONE OF CHAPTER
ONE HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN HUNDRED SIXTY-EIGHT
CONSTITUTING THE URBAN DEVELOPMENT CORPORATION ACT.
§ 9. Section 210-B of the tax law is amended by adding a new subdivi-
sion 61 to read as follows:
61. SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT PROGRAM AND HAS BEEN ISSUED A CERTIFICATE OF TAX CREDIT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC DEVELOP-
MENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE. THE CREDIT SHALL EQUAL UP TO FIFTEEN PERCENT OF THE COST
OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVEST-
MENT AND SHALL BE ALLOWABLE IN EACH TAXABLE YEAR FOR WHICH THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT HAS ISSUED A CERTIFICATE OF TAX CREDIT,
FOR UP TO TEN CONSECUTIVE TAXABLE YEARS. IN NO EVENT SHALL A TAXPAYER BE
ALLOWED A CREDIT GREATER THAN THE AMOUNT OF CREDIT LISTED ON THE CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS THE BASIS
FOR THIS CREDIT SHALL BE THE BASIS FOR ANY OTHER TAX CREDIT PROVIDED BY
THIS CHAPTER.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
(C) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC DEVELOP-
MENT LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER
THAN THE AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT,
OR IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER
OF A LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS
S. 3009--C 43 A. 3009--C
PRO RATA SHARE OF THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX
CREDIT.
(D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE SEVENTEEN-A OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C
OF THE ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBDIVISION 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.
§ 10. Section 606 of the tax law is amended by adding a new subsection
(rrr) to read as follows:
(RRR) SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT. (1) ALLOWANCE
OF CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT TAX CREDIT PROGRAM AND HAS BEEN ISSUED A CERTIFICATE OF TAX
CREDIT PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC
DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL UP TO FIFTEEN PERCENT OF
THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED
INVESTMENT AND SHALL BE ALLOWABLE IN EACH TAXABLE YEAR FOR WHICH THE
COMMISSIONER OF ECONOMIC DEVELOPMENT HAS ISSUED A CERTIFICATE OF TAX
CREDIT, FOR UP TO TEN CONSECUTIVE TAXABLE YEARS. IN NO EVENT SHALL A
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT LISTED ON THE
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT. IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPO-
RATION, THE TAXPAYER SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION.
NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS THE BASIS
FOR THIS CREDIT SHALL BE THE BASIS FOR ANY OTHER TAX CREDIT PROVIDED BY
THIS CHAPTER.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE
TAXABLE YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, NO INTEREST WILL
BE PAID THEREON.
(3) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC DEVELOP-
MENT LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER
THAN THE AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT,
OR IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER
OF A LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS
PRO RATA SHARE OF THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX
CREDIT.
(4) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE SEVENTEEN-A OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C
OF ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBDIVISION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL
S. 3009--C 44 A. 3009--C
BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 11. The economic development law is amended by adding a new article
28 to read as follows:
ARTICLE 28
SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM
SECTION 501. DEFINITIONS.
502. ELIGIBILITY CRITERIA.
503. APPLICATION AND APPROVAL PROCESS.
504. POWERS AND DUTIES OF THE COMMISSIONER.
505. RECORDKEEPING REQUIREMENTS.
506. CAP ON TAX CREDIT.
507. REPORTING.
§ 501. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "APPROVED PROVIDER" MEANS AN ENTITY APPROVED BY THE COMMISSIONER
THAT MAY PROVIDE ELIGIBLE TRAINING TO EMPLOYEES OF A BUSINESS ENTITY
PARTICIPATING IN THE SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING
INCENTIVE PROGRAM. SUCH CRITERIA SHALL ENSURE THAT ANY APPROVED PROVIDER
POSSESSES ADEQUATE CREDENTIALS TO PROVIDE THE TRAINING DESCRIBED IN AN
APPLICATION BY A BUSINESS ENTITY TO THE COMMISSIONER TO PARTICIPATE IN
THE SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM.
2. "ELIGIBLE TRAINING" MEANS TRAINING PROVIDED TO AN EMPLOYEE HIRED
WITHIN TWELVE MONTHS OF THE BUSINESS ENTITY APPLYING FOR THIS PROGRAM BY
THE BUSINESS ENTITY OR AN APPROVED PROVIDER THAT IS:
(A) TO UPGRADE, RETRAIN OR IMPROVE THE PRODUCTIVITY OF EMPLOYEES;
(B) DETERMINED BY THE COMMISSIONER TO SATISFY A BUSINESS NEED ON THE
PART OF A PARTICIPATING BUSINESS ENTITY;
(C) NOT DESIGNED TO TRAIN OR UPGRADE SKILLS AS REQUIRED BY A FEDERAL
OR STATE ENTITY; AND
(D) STRUCTURED TO RESULT IN MEASURABLE ADVANCEMENTS IN SKILLS AND
COMPETENCIES THAT WILL CONTRIBUTE TO OPPORTUNITIES FOR ADVANCEMENT FOR
EMPLOYEES WHO COMPLETE THE TRAINING.
3. "MANUFACTURING BUSINESS" MEANS A BUSINESS THAT IS ENGAGED IN THE
PROCESS OF WORKING RAW MATERIALS INTO PRODUCTS SUITABLE FOR USE OR WHICH
GIVES NEW SHAPES, NEW QUALITY OR NEW COMBINATIONS TO MATTER WHICH HAS
ALREADY GONE THROUGH SOME ARTIFICIAL PROCESS BY THE USE OF MACHINERY,
TOOLS, APPLIANCES, OR OTHER SIMILAR EQUIPMENT. "MANUFACTURING" DOES NOT
INCLUDE AN OPERATION THAT INVOLVES ONLY THE ASSEMBLY OF COMPONENTS,
PROVIDED, HOWEVER, THAT THE ASSEMBLY OF MOTOR VEHICLES OR OTHER HIGH
VALUE-ADDED PRODUCTS SHALL BE CONSIDERED MANUFACTURING.
4. "SEMICONDUCTOR MANUFACTURING BUSINESS" MEANS A BUSINESS DEEMED BY
THE COMMISSIONER TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE
PRIMARILY AIMED AT SUPPORTING THE GROWTH OF THE SEMICONDUCTOR MANUFAC-
TURING AND RELATED EQUIPMENT AND MATERIAL SUPPLIER SECTOR. THIS SHALL
INCLUDE, BUT NEED NOT BE LIMITED TO, SEMICONDUCTOR DEVICE MANUFACTURING,
PRODUCERS OF COMPONENT PARTS, DIRECT INPUT MATERIALS AND EQUIPMENT
NECESSARY FOR THE MANUFACTURE OF SEMICONDUCTOR CHIPS, MACHINERY, EQUIP-
MENT, AND MATERIALS NECESSARY FOR THE OPERATIONAL EFFICIENCY OF SEMICON-
DUCTOR MANUFACTURING FACILITIES, OTHER SUCH INPUTS DIRECTLY SUPPORTIVE
OF THE DOMESTIC PRODUCTION OF SEMICONDUCTOR CHIPS, AND COMPANIES ENGAGED
IN THE ASSEMBLY, TESTING, PACKAGING AND ADVANCED PACKAGING SEMICONDUCTOR
VALUE CHAIN. THE "SEMICONDUCTOR AND SUPPLY CHAIN" TIER SHALL NOT
INCLUDE A PROJECT PRIMARILY COMPOSED OF: (A) MACHINERY, EQUIPMENT, OR
MATERIALS THAT ARE INPUTS TO MANUFACTURING GENERALLY, BUT ARE NOT DIRECT
INPUTS TO SEMICONDUCTOR MANUFACTURING IN SPECIFIC; OR (B) THE PRODUCTION
S. 3009--C 45 A. 3009--C
OF PRODUCTS OR DEVELOPMENT OF TECHNOLOGIES THAT WOULD PRODUCE ONLY
MARGINAL AND INCREMENTAL BENEFITS TO THE SEMICONDUCTOR MANUFACTURING
SECTOR.
5. "WRAP AROUND SERVICES" MEANS TRANSPORTATION, CHILDCARE, CASE
MANAGEMENT AND OTHER SERVICES DESIGNED TO MAXIMIZE THE ECONOMIC IMPACT
OF WORKFORCE DEVELOPMENT TRAINING FOR PARTICIPANTS, AND TO PROVIDE THE
SUPPORT SERVICES NECESSARY TO ENSURE TRAINEES CAN ACCESS TRAINING.
§ 502. ELIGIBILITY CRITERIA. IN ORDER TO PARTICIPATE IN THE MANUFAC-
TURING WORKFORCE TRAINING INCENTIVE PROGRAM, A BUSINESS ENTITY MUST
SATISFY THE FOLLOWING CRITERIA:
1. THE BUSINESS ENTITY MUST OPERATE IN THE STATE AS A SEMICONDUCTOR
MANUFACTURING BUSINESS OR A MANUFACTURING BUSINESS AS DEFINED IN THIS
ARTICLE;
2. THE BUSINESS ENTITY MUST DEMONSTRATE THAT IT IS CONDUCTING ELIGIBLE
TRAINING OR OBTAINING ELIGIBLE TRAINING FROM AN APPROVED PROVIDER; AND
3. THE BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER
PROTECTION AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, THE
BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY
TAXES.
4. THE BUSINESS ENTITY MUST SUBMIT A REPORT UPON COMPLETION OF THE
ELIGIBLE TRAINING THAT SPECIFIES THE TOTAL AMOUNT OF ELIGIBLE TRAINING
COSTS COVERED, INCLUDING A BREAKDOWN BETWEEN TRAINING EXPENSES, WAGES,
AND WRAPAROUND SERVICES; THE TOTAL NUMBER OF EMPLOYEES THAT BEGIN TRAIN-
ING; THE TOTAL NUMBER OF EMPLOYEES THAT FINISH TRAINING; THE SKILLS OR
TYPE OF TRAINING PROVIDED, INCLUDING A LIST OF APPLICABLE TRANSFERRABLE
CREDENTIALING OPPORTUNITIES THAT WERE PROVIDED AND INFORMATION ON WHETH-
ER OR NOT THE PROGRAM IS A REGISTERED APPRENTICESHIP PROGRAM; INFORMA-
TION ON ANY FORMALIZED AGREEMENTS OR PARTNERSHIPS WITH COMMUNITY OR
LABOR ORGANIZATIONS TO SUPPORT THE TRAINING PROGRAM; THE NAME OF THE
TRAINING PROVIDER; AND WHETHER THE COVERED EMPLOYEE IS RETAINED ONE YEAR
AFTER THE COMPLETION OF THE FUNDED TRAINING.
§ 503. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
SUBMIT A COMPLETED APPLICATION IN SUCH FORM AND WITH SUCH INFORMATION AS
PRESCRIBED BY THE COMMISSIONER.
2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTITY MUST:
(A) PROVIDE SUCH DOCUMENTATION AS THE COMMISSIONER MAY REQUIRE IN
ORDER FOR THE COMMISSIONER TO DETERMINE THAT THE BUSINESS ENTITY INTENDS
TO CONDUCT ELIGIBLE TRAINING OR PROCURE ELIGIBLE TRAINING FOR ITS
EMPLOYEES FROM AN APPROVED PROVIDER;
(B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(C) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION
SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(D) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; AND
(E) AGREE TO ALLOW THE DEPARTMENT AND THE DEPARTMENT OF TAXATION AND
FINANCE TO SHARE AND EXCHANGE INFORMATION CONTAINED IN OR DERIVED FROM
THE APPLICATIONS FOR ADMISSION INTO THE SEMICONDUCTOR MANUFACTURING
WORKFORCE TRAINING INCENTIVE PROGRAM AND THE CREDIT CLAIM FORMS SUBMIT-
TED TO THE DEPARTMENT OF TAXATION AND FINANCE. HOWEVER, ANY INFORMATION
SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
S. 3009--C 46 A. 3009--C
3. THE COMMISSIONER MAY APPROVE AN APPLICATION FROM A BUSINESS ENTITY
UPON DETERMINING THAT SUCH BUSINESS ENTITY MEETS THE ELIGIBILITY CRITE-
RIA ESTABLISHED IN SECTION FIVE HUNDRED TWO OF THIS ARTICLE. FOLLOWING
APPROVAL BY THE COMMISSIONER OF AN APPLICATION BY A BUSINESS ENTITY TO
PARTICIPATE IN THE SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCEN-
TIVE PROGRAM, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT
TO THE BUSINESS ENTITY UPON ITS DEMONSTRATING SUCCESSFUL COMPLETION OF
SUCH ELIGIBLE TRAINING TO THE SATISFACTION OF THE COMMISSIONER. FOR
ELIGIBLE TRAINING AS DEFINED BY SUBDIVISION TWO OF SECTION FIVE HUNDRED
ONE OF THIS ARTICLE THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO SEVENTY-
FIVE PERCENT OF WAGES, SALARIES OR OTHER COMPENSATION, TRAINING COSTS,
AND WRAP AROUND SERVICES, UP TO A CREDIT OF TWENTY-FIVE THOUSAND DOLLARS
PER EMPLOYEE RECEIVING ELIGIBLE TRAINING, UP TO ONE MILLION DOLLARS PER
ELIGIBLE NON-SEMICONDUCTOR MANUFACTURING BUSINESS AND UP TO FIVE MILLION
DOLLARS PER ELIGIBLE SEMICONDUCTOR MANUFACTURING BUSINESS. THE TAX CRED-
ITS SHALL BE CLAIMED BY THE QUALIFIED EMPLOYER AS SPECIFIED IN SUBDIVI-
SION SIXTY-TWO OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (RRR) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW.
§ 504. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
SHALL PROMULGATE REGULATIONS CONSISTENT WITH THE PURPOSES OF THIS ARTI-
CLE THAT, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE
ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. SUCH
REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ELIGIBILITY CRITERIA
FOR BUSINESS ENTITIES DESIRING TO PARTICIPATE IN THE SEMICONDUCTOR MANU-
FACTURING WORKFORCE TRAINING INCENTIVE PROGRAM, PROCEDURES FOR THE
RECEIPT AND EVALUATION OF APPLICATIONS FROM BUSINESS ENTITIES TO PARTIC-
IPATE IN THE PROGRAM, AND SUCH OTHER PROVISIONS AS THE COMMISSIONER
DEEMS TO BE APPROPRIATE IN ORDER TO IMPLEMENT THE PROVISIONS OF THIS
ARTICLE.
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 PARTICIPATING BUSINESS ENTITIES. PARTIC-
IPANTS MAY BE REQUIRED BY THE COMMISSIONER OF TAXATION AND FINANCE TO
INCLUDE THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE
ANY TAX BENEFITS UNDER THIS ARTICLE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SECTION FIVE HUNDRED TWO OF THIS ARTICLE OR FOR MAKING A
MATERIAL MISREPRESENTATION WITH RESPECT TO ITS PARTICIPATION IN THE
PROGRAM.
§ 505. RECORDKEEPING REQUIREMENTS. EACH BUSINESS ENTITY PARTICIPATING
IN THE PROGRAM SHALL MAINTAIN ALL RELEVANT RECORDS FOR THE DURATION OF
ITS PROGRAM PARTICIPATION PLUS THREE YEARS.
§ 506. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER FOR ANY TAXABLE
YEAR MAY NOT EXCEED TWENTY MILLION DOLLARS, AND SHALL BE ALLOTTED FROM
THE FUNDS AVAILABLE FOR TAX CREDITS UNDER THE EXCELSIOR JOBS PROGRAM ACT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
§ 507. REPORTING. THE CORPORATION, BEGINNING OCTOBER FIRST, TWO THOU-
SAND TWENTY-SEVEN, AND ANNUALLY THEREAFTER PROVIDED PROGRAM FUNDS
REMAIN, SHALL SUBMIT A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT
OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY. SUCH ANNUAL REPORT SHALL
INCLUDE, BUT NEED NOT BE LIMITED TO: THE NUMBER OF BUSINESS PARTICIPANTS
IN THE PROGRAM, THE TOTAL NUMBER OF WORKERS TRAINED UNDER THE PROGRAM IN
TOTAL AND PER PARTICIPATING BUSINESS INCLUDING AN ARTICULATION OF THE
S. 3009--C 47 A. 3009--C
NUMBER OF WORKERS THAT BEGIN TRAINING, COMPLETE TRAINING, AND ARE STILL
EMPLOYED WITH THE PARTICIPATING BUSINESS ONE YEAR AFTER TRAINING IS
COMPLETED, THE TOTAL PROGRAM FUNDING LEVEL ALLOCATED IN TOTAL AND PER
PARTICIPATING BUSINESS, THE REGIONAL ECONOMIC DEVELOPMENT COUNCIL REGION
WHEREIN EACH PARTICIPATING BUSINESS RESIDES, A BREAKDOWN BETWEEN FUNDING
ALLOCATED TO TRAINING, WAGES, AND WRAPAROUND SERVICES, A SUMMARY OF THE
SKILLS OR TYPE OF TRAINING PROVIDED PER PARTICIPATING BUSINESS, AND SUCH
OTHER INFORMATION AS THE COMMISSIONER DETERMINES IS NECESSARY AND APPRO-
PRIATE. ADDITIONALLY, IN ALL YEARS IN WHICH THE PROGRAM IS FULLY OPERA-
TIONAL, SUCH REPORT SHALL INCLUDE NOTEWORTHY PROJECTS WHICH SERVE TO
HIGHLIGHT THE DEVELOPMENTS OCCURRING IN NEW YORK STATE AS A RESULT OF
THE PROGRAM. SUCH REPORT SHALL BE INCLUDED ON THE CORPORATION'S WEBSITE
AND ALL PROGRAM PARTICIPANTS SHALL ALSO BE INCLUDED IN THE DATABASE OF
ECONOMIC INCENTIVES AS DEFINED IN SECTION FIFTY-EIGHT OF SECTION ONE OF
CHAPTER ONE HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN HUNDRED SIXTY-
EIGHT CONSTITUTING THE URBAN DEVELOPMENT CORPORATION ACT.
§ 12. Section 210-B of the tax law is amended by adding a new subdivi-
sion 62 to read as follows:
62. SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING PROGRAM TAX CREDIT.
(A) ALLOWANCE OF TAX CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE
COMMISSIONER OF ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR
MANUFACTURING WORKFORCE TRAINING PROGRAM AND HAS BEEN ISSUED A CERTIF-
ICATE OF TAX CREDIT PURSUANT TO SECTION FIVE HUNDRED THREE OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL SEVENTY-FIVE PERCENT
OF WAGES, SALARIES OR OTHER COMPENSATION, TRAINING COSTS, AND WRAP
AROUND SERVICES, UP TO A CREDIT OF TWENTY-FIVE THOUSAND DOLLARS PER
EMPLOYEE RECEIVING ELIGIBLE TRAINING, UP TO ONE MILLION DOLLARS PER
ELIGIBLE NON-SEMICONDUCTOR MANUFACTURING BUSINESS AND UP TO FIVE MILLION
DOLLARS PER ELIGIBLE SEMICONDUCTOR MANUFACTURING BUSINESS PURSUANT TO
SUBDIVISION THREE OF SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOP-
MENT LAW. IN NO EVENT SHALL A TAXPAYER BE ALLOWED A CREDIT GREATER THAN
THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT ISSUED BY
THE COMMISSIONER OF ECONOMIC DEVELOPMENT. THE CREDIT SHALL BE ALLOWED IN
THE TAXABLE YEAR IN WHICH THE ELIGIBLE TRAINING IS COMPLETED. NO COST OR
OTHER EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS THE BASIS FOR
THIS CREDIT SHALL BE THE BASIS FOR ANY OTHER TAX CREDIT PROVIDED BY THIS
CHAPTER.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
(C) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW.
IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT, OR IN THE
CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER OF A
S. 3009--C 48 A. 3009--C
LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS PRO
RATA SHARE OF THE AMOUNT OF CREDIT LISTED IN THE CERTIFICATE OF TAX
CREDIT.
(D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF THE ECONOMIC DEVELOPMENT UNDER
ARTICLE TWENTY-EIGHT OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION THREE OF SECTION FIVE HUNDRED THREE OF THE
ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS SUBDI-
VISION 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.
§ 13. Section 606 of the tax law is amended by adding a new subsection
(sss) to read as follows:
(SSS) SEMICONDUCTOR WORKFORCE TRAINING PROGRAM TAX CREDIT. (1) ALLOW-
ANCE OF TAX CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE COMMISSION-
ER OF ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR WORKFORCE
TRAINING PROGRAM AND HAS BEEN ISSUED A CERTIFICATE OF TAX CREDIT PURSU-
ANT TO SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW SHALL
BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE.
THE CREDIT SHALL EQUAL SEVENTY-FIVE PERCENT OF WAGES, SALARIES OR OTHER
COMPENSATION, TRAINING COSTS, AND WRAP AROUND SERVICES, UP TO A CREDIT
OF TWENTY-FIVE THOUSAND DOLLARS PER EMPLOYEE RECEIVING ELIGIBLE TRAIN-
ING, UP TO ONE MILLION DOLLARS PER ELIGIBLE NON-SEMICONDUCTOR MANUFAC-
TURING BUSINESS AND UP TO FIVE MILLION DOLLARS PER ELIGIBLE SEMICONDUC-
TOR MANUFACTURING BUSINESS PURSUANT TO SUBDIVISION THREE OF SECTION FIVE
HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW. IN NO EVENT SHALL A
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT LISTED ON THE
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT. IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPO-
RATION, THE TAXPAYER SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION.
THE CREDIT SHALL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE
TRAINING IS COMPLETED. NO COST OR EXPENSE PAID OR INCURRED BY THE
TAXPAYER THAT IS THE BASIS FOR THIS CREDIT SHALL BE THE BASIS FOR ANY
OTHER TAX CREDIT PROVIDED BY THIS CHAPTER.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE
TAXABLE YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, NO INTEREST WILL
BE PAID THEREON.
(3) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW.
IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT, OR IN THE
CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER OF A
LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS PRO
RATA SHARE OF THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX
CREDIT.
(4) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE TWENTY-EIGHT OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
S. 3009--C 49 A. 3009--C
MENT SET FORTH IN SUBDIVISION THREE OF SECTION FIVE HUNDRED THREE OF THE
ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBSECTION 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.
§ 14. This act shall take effect immediately and apply to taxable
years beginning on or after January 1, 2025; provided, however, that
section five of this act shall take effect December 31, 2028.
SUBPART B
Section 1. Section 421 of the economic development law, as added by
section 1 of part E of chapter 56 of the laws of 2011, is amended to
read as follows:
§ 421. Statement of legislative findings and declaration. It is hereby
found and declared that New York state needs, as a matter of public
policy, to create competitive financial incentives to retain [strategic]
businesses, INCLUDING SMALL BUSINESSES and jobs that are at risk of
leaving the state OR CLOSING OPERATIONS due to the impact on its busi-
ness operations of an event leading to an emergency declaration by the
governor. The empire state jobs retention program is created to support
the retention of the state's [most strategic] businesses, INCLUDING
SMALL BUSINESSES in the event of an emergency.
This legislation creates a jobs tax credit for each job of a [strate-
gic] business, INCLUDING A SMALL BUSINESS directly impacted by an emer-
gency and protects state taxpayers' dollars by ensuring that New York
provides tax benefits only to businesses that can demonstrate substan-
tial physical damage and economic harm resulting from an event leading
to an emergency declaration by the governor.
§ 2. Section 422 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 422. Definitions. For the purposes of this article:
1. ["Agriculture" means both agricultural production (establishments
performing the complete farm or ranch operation, such as farm owner-op-
erators, tenant farm operators, and sharecroppers) and agricultural
support (establishments that perform one or more activities associated
with farm operation, such as soil preparation, planting, harvesting, and
management, on a contract or fee basis).
2. "Back office operations" means a business function that may include
one or more of the following activities: customer service, information
technology and data processing, human resources, accounting and related
administrative functions.
3.] "Certificate of eligibility" means the document issued by the
department to an applicant that has completed an application to be
admitted into the empire state jobs retention program and has been
accepted into the program by the department. Possession of a certificate
of eligibility does not by itself guarantee the eligibility to claim the
tax credit.
[4.] 2. "Certificate of tax credit" means the document issued to a
participant by the department, after the department has verified that
the participant has met all applicable eligibility criteria in this
article. The certificate shall be issued annually if such criteria are
satisfied and shall specify the exact amount of each tax credit under
this article that a participant may claim, pursuant to section four
S. 3009--C 50 A. 3009--C
hundred twenty-five of this article, and shall specify the taxable year
in which such credit may be claimed.
[5. "Distribution center" means a large scale facility involving proc-
essing, repackaging and/or movement of finished or semi-finished goods
to retail locations across a multi-state area.
6. "Financial services data centers" or "financial services customer
back office operations" means operations that manage the data or
accounts of existing customers or provide product or service information
and support to customers of financial services companies, including
banks, other lenders, securities and commodities brokers and dealers,
investment banks, portfolio managers, trust offices, and insurance
companies.
7.] 3. "Impacted jobs" means jobs [existing] at a business enterprise
[at a location or locations within the county declared an emergency by
the governor on the day immediately preceding the day on which the event
leading to the emergency declaration by the governor occurred] EXISTING
THE DAY BEFORE AN EVENT LEADING TO AN EMERGENCY DECLARATION BY THE
GOVERNOR AT A LOCATION OR LOCATIONS WHICH DEMONSTRATE SUBSTANTIAL PHYS-
ICAL DAMAGE AND ECONOMIC HARM CAUSED BY THE EVENT FOR WHICH THE EMERGEN-
CY DECLARATION WAS MADE.
[8. "Manufacturing" means the process of working raw materials into
products suitable for use or which gives new shapes, new quality or new
combinations to matter which has already gone through some artificial
process by the use of machinery, tools, appliances, or other similar
equipment. "Manufacturing" does not include an operation that involves
only the assembly of components, provided, however, the assembly of
motor vehicles or other high value-added products shall be considered
manufacturing.
9.] 4. "Participant" means a business entity that:
(a) has completed an application prescribed by the department to be
admitted into the program;
(b) has been issued a certificate of eligibility by the department;
(c) has demonstrated that it meets the eligibility criteria in section
four hundred twenty-three and subdivision two of section four hundred
twenty-four of this article; and
(d) has been certified as a participant by the commissioner.
[10.] 5. "Preliminary schedule of benefits" means the maximum aggre-
gate amount of the tax credit that a participant in the empire state
jobs retention program is eligible to receive pursuant to this article.
The schedule shall indicate the annual amount of the credit a partic-
ipant may claim in [each of] its [ten years] SIX MONTHS of eligibility.
The preliminary schedule of benefits shall be issued by the department
when the department approves the application for admission into the
program. The commissioner may amend that schedule, provided that the
commissioner complies with the credit caps in section three hundred
fifty-nine of this chapter.
[11.] 6. "Related person" means a related person pursuant to subpara-
graph (c) of paragraph three of subsection (b) of section four hundred
sixty-five of the internal revenue code.
[12. "Scientific research and development" means conducting research
and experimental development in the physical, engineering, and life
sciences, including but not limited to agriculture, electronics, envi-
ronmental, biology, botany, biotechnology, computers, chemistry, food,
fisheries, forests, geology, health, mathematics, medicine, oceanogra-
phy, pharmacy, physics, veterinary, and other allied subjects. For the
S. 3009--C 51 A. 3009--C
purposes of this article, scientific research and development does not
include medical or veterinary laboratory testing facilities.
13. "Software development" means the creation of coded computer
instructions and includes new media as defined by the commissioner in
regulations.]
7. "BUSINESS ENTITY" MEANS A FOR PROFIT BUSINESS DULY AUTHORIZED TO DO
BUSINESS IN AND IN GOOD STANDING IN THE STATE OF NEW YORK.
§ 3. Section 423 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 423. Eligibility criteria. 1. [To be a participant in the empire
state jobs retention program, a business entity shall operate in New
York state predominantly:
(a) as a financial services data center or a financial services back
office operation;
(b) in manufacturing;
(c) in software development and new media;
(d) in scientific research and development;
(e) in agriculture;
(f) in the creation or expansion of back office operations in the
state; or
(g) in a distribution center.
2. When determining whether an applicant is operating predominantly in
one of the industries listed in subdivision one of this section, the
commissioner will examine the nature of the business activity at the
location for the proposed project and will make eligibility determi-
nations based on such activity.
3.] For the purposes of this article, in order to participate in the
empire state jobs retention program[, a business entity operating in one
of the strategic industries listed in subdivision one of this section
(a) must be located in a county in which an emergency has been declared
by the governor] on or after [January] JUNE first, two thousand [eleven]
TWENTY-FIVE, [(b)] A BUSINESS ENTITY must demonstrate substantial phys-
ical damage and economic harm AT A LOCATION OR LOCATIONS WITHIN AN AREA
FOR WHICH THE GOVERNOR HAS ISSUED AN EMERGENCY DECLARATION AND resulting
from the event leading to the emergency declaration by the governor[,
and (c) must have had at least one hundred full-time equivalent jobs in
the county in which an emergency has been declared by the governor on
the day immediately preceding the day on which the event leading to the
emergency declaration by the governor occurred, and must retain or
exceed that number of jobs in New York state.
4. A not-for-profit business entity, a business entity whose primary
function is the provision of services including personal services, busi-
ness services, or the provision of utilities, a business entity engaged
predominantly in the retail or entertainment industry, or a company
engaged in the generation or distribution of electricity, the distrib-
ution of natural gas, or the production of steam associated with the
generation of electricity are not eligible to receive the tax credit
described in this article]. AT THE TIME OF APPLICATION, A BUSINESS ENTI-
TY SHALL SUBMIT TO THE DEPARTMENT A PLAN TO RETAIN, RESTORE OR INCREASE
STAFFING LEVELS WITHIN ONE YEAR FROM THE DATE OF APPLICATION TO AT LEAST
THE STAFFING LEVELS THAT EXISTED AT THE SITE THE DAY PRIOR TO THE DATE
OF THE APPLICABLE DECLARATION OF THE STATE OF EMERGENCY. ANY RECIPIENT
THAT DOES NOT ADHERE TO ITS JOBS RETENTION PLAN, SHALL HAVE ITS PROGRAM
AWARD RESCINDED UNLESS THE RECIPIENT CAN DEMONSTRATE ECONOMIC HARDSHIP
S. 3009--C 52 A. 3009--C
TO THE COMMISSIONER, IN WHICH CASE ANY SUCH PROGRAM AWARD MAY BE REDUCED
PROPORTIONALLY BY THE NUMBER OF EMPLOYEES NOT RESTORED OR RETAINED.
[5.] 2. A business entity must be in compliance with all worker
protection and environmental laws and regulations. In addition, a busi-
ness entity may not owe past due state taxes. In addition, a business
entity must not owe local property taxes for any year prior to the year
in which it applies to participate in the empire state jobs retention
program.
§ 4. Section 424 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 424. Application and approval process. 1. A business [enterprise]
ENTITY must submit a completed application as prescribed by the commis-
sioner. Such completed application must be submitted to the commissioner
within [(a)] one hundred eighty days of the declaration of an emergency
by the governor in the county in which the business enterprise is
located [or (b) one hundred eighty days of the enactment of this arti-
cle, if such date is later than the date specified in paragraph (a) of
this subdivision]; PROVIDED, HOWEVER, THAT THE ELIGIBILITY PERIOD FOR
THE CREDIT SHALL BEGIN UPON THE DATE OF DECLARATION OF AN EMERGENCY BY
THE GOVERNOR COVERING THE COUNTY IN WHICH THE BUSINESS ENTITY IS
LOCATED.
2. As part of such application, each business [enterprise] ENTITY
must:
(a) agree to allow the department of taxation and finance to share its
tax information with the department. However, any information shared as
a result of this agreement shall not be available for disclosure or
inspection under the state freedom of information law.
(b) agree to allow the department of labor to share its tax and
employer information with the department. However, any information
shared as a result of this agreement shall not be available for disclo-
sure or inspection under the state freedom of information law.
(c) allow the department and its agents access to any and all books
and records the department may require to monitor compliance.
(d) agree to be permanently disqualified for empire zone tax benefits
at any location or locations that qualify for empire state jobs
retention program benefits if admitted into the empire state jobs
retention program.
(e) provide the following information to the department upon request:
(i) a plan outlining the schedule for meeting the jobs retention
requirements as set forth in subdivision [three] ONE of section four
hundred twenty-three of this article. Such plan must include details on
jobs titles and expected salaries;
(ii) the prior three years of federal and state income or franchise
tax returns, unemployment insurance quarterly returns, real property tax
bills and audited financial statements; and
(iii) the employer identification or social security numbers for all
related persons to the applicant, including those of any members of a
limited liability company or partners in a partnership.
(f) provide a clear and detailed presentation of all related persons
to the applicant to assure the department that jobs are not being shift-
ed within the state.
(g) certify, under penalty of perjury, that it is in substantial
compliance with all environmental, worker protection, and local, state,
and federal tax laws.
S. 3009--C 53 A. 3009--C
3. After reviewing a business enterprise's completed application and
determining that the business enterprise will meet the conditions set
forth in subdivision [three] ONE of section four hundred twenty-three of
this article, the department may admit the applicant into the program
and provide the applicant with a certificate of eligibility and a
preliminary schedule of benefits by year based on the applicant's
projections as set forth in its application. This preliminary schedule
of benefits delineates the maximum possible benefits an applicant may
receive.
4. In order to become a participant in the program, an applicant must
submit evidence that it satisfies the eligibility criteria specified in
section four hundred twenty-three of this article and subdivision two of
this section in such form as the commissioner may prescribe. After
reviewing such evidence and finding it sufficient, the department shall
certify the applicant as a participant and issue to that participant a
certificate of tax credit [for one taxable year. To receive a certif-
icate of tax credit for subsequent taxable years, the participant must
submit to the department a performance report demonstrating that the
participant continues to satisfy the eligibility criteria specified in
section four hundred twenty-three of this article and subdivision two of
this section].
5. A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise receives a certificate of tax
credit or the first taxable year listed on its preliminary schedule of
benefits, whichever is later. [A participant may claim such benefits for
the next nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy the eligi-
bility criteria specified in section four hundred twenty-three of this
article and subdivision two of this section in each of those taxable
years.]
§ 5. Section 425 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 425. Empire state jobs retention program credit. 1. A participant in
the empire state jobs retention program shall be eligible to claim a
credit for the impacted jobs. [The] FOR A BUSINESS ENTITY THAT EMPLOYES
THREE TO FORTY-NINE EMPLOYEES, THE amount of such credit shall be equal
to the product of the gross wages paid for the impacted jobs and [6.85]
UP TO 15 percent. FOR A BUSINESS ENTITY THAT EMPLOYS FIFTY TO ONE
HUNDRED EMPLOYEES, THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO THE PROD-
UCT OF THE GROSS WAGES PAID FOR THE IMPACTED JOBS AND UP TO 7.5 PERCENT.
FOR A BUSINESS ENTITY THAT EMPLOYS GREATER THAN ONE HUNDRED EMPLOYEES,
THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO THE PRODUCT OF THE GROSS
WAGES PAID FOR THE IMPACTED JOBS AND UP TO 3.75 PERCENT. AN ELIGIBLE
BUSINESS ENTITY MAY ONLY RECEIVE UP TO $500,000 IN TAX CREDITS PER EVENT
TRIGGERING AN EMERGENCY DECLARATION BY THE GOVERNOR.
2. The tax credit established in this section shall be refundable as
provided in the tax law. If a participant fails to satisfy the eligibil-
ity criteria [in any one year], it will lose the ability to claim credit
[for that year]. The event of such failure shall not extend the original
[ten-year] SIX-MONTH eligibility period.
3. The business enterprise shall be allowed to claim the credit as
prescribed in section thirty-six of the tax law[; provided, however, a
business enterprise shall not be allowed to claim the credit prior to
tax year two thousand twelve].
S. 3009--C 54 A. 3009--C
4. A participant may be eligible for benefits under this article as
well as article seventeen of this chapter, provided the participant can
only receive benefits pursuant to subdivision two of section three
hundred fifty-five of this chapter for costs in excess of costs recov-
ered by insurance.
§ 6. Section 426 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 426. Powers and duties of the commissioner. 1. The commissioner
shall promulgate regulations establishing [an] THE TYPE OF application
process and THE eligibility criteria, that will be applied consistent
with the purposes of this article, so as not to exceed THIRTY MILLION
DOLLARS FROM the annual cap on tax credits set forth in section three
hundred fifty-nine of this chapter which, notwithstanding any provisions
to the contrary in the state administrative procedure act, may be
adopted on an emergency basis. Such regulations shall include, but not
be limited to, criteria for determining whether a business entity demon-
strates substantial physical damage and economic harm from the event
leading to an emergency declaration by the governor.
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 participants. Participants may be required
by the commissioner of taxation and finance to include the certificate
of tax credit with their tax return to receive any tax benefits under
this article.
3. The commissioner shall solely determine the eligibility of any
applicant applying for entry into the program and shall remove any
participant from the program for failing to meet any of the requirements
set forth in subdivision two of section four hundred twenty-four of this
article, or for failing to meet the job retention requirements set forth
in [subdivision three of] section four hundred twenty-three of this
article[, or for failing to meet the requirements of subdivision five of
section four hundred twenty-three of this article].
§ 7. 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 Subparts A and B of this act shall be
as specifically set forth in the last section of such Subparts.
PART I
Section 1. Paragraphs 2 and 5 of subdivision (a) of section 24 of the
tax law, paragraph 2 as amended by section 1 and paragraph 5 as amended
by section 2 of part D of chapter 59 of the laws of 2023, are amended
and a new paragraph 6 is added 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 thirty
percent and the qualified production costs paid or incurred in the
S. 3009--C 55 A. 3009--C
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 perform-
ance 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 shoot-
ing days spent in the production of such qualified film must be spent at
a qualified film production facility, AND (III) QUALIFIED PRODUCTION
COSTS THAT ARE ATTRIBUTABLE TO SCORING SHALL BE ELIGIBLE FOR AN ADDI-
TIONAL TEN PERCENT CREDIT ON SUCH SCORING COSTS WHEN INCURRED WITHIN THE
STATE AND WHEN SUCH SCORING COSTS INCLUDE PAYMENT TO A MINIMUM OF FIVE
MUSICIANS. 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 quali-
fied 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 qualified 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 taxable year that includes the last day of the
allocation year for which the film has been allocated credit by the
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 taxa-
ble 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. PROVIDED, HOWEVER, IN THE CASE OF A
QUALIFIED FILM FOR WHICH THE CREDIT APPLICATION WAS RECEIVED ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE CREDIT SHALL BE CLAIMED IN
THE TAXABLE YEAR THAT INCLUDES THE LAST DAY OF THE ALLOCATION YEAR FOR
WHICH THE FILM HAS BEEN ALLOCATED A CREDIT BY THE DEPARTMENT OF ECONOMIC
DEVELOPMENT.
(5) For the period two thousand fifteen through two thousand [thirty-
four] THIRTY-SIX, in addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a credit
equal to (i) the product (or pro rata share of the product, in the case
of a member of a partnership) of ten percent and the wages, salaries or
other compensation constituting qualified production costs as defined in
paragraph two of subdivision (b) of this section, paid to individuals
S. 3009--C 56 A. 3009--C
directly employed 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, and (ii) the product (or pro rata share of the prod-
uct, in the case of a member of a partnership) of ten percent and the
qualified production costs (excluding wages, salaries or other compen-
sation) paid or incurred in the production of a qualified film where the
property constituting such qualified production costs was used, and the
services constituting such qualified production costs were performed in
any of the counties specified in this paragraph in connection with a
qualified film with a minimum budget of five hundred thousand dollars
where the majority of principal photography shooting days in the
production of such film were shot in any of the counties specified in
this paragraph. Provided, however, that the aggregate total eligible
qualified production costs constituting wages, salaries or other compen-
sation, for writers, directors, composers, producers, and performers
shall not exceed forty percent of the aggregate sum total of all other
qualified production costs. For purposes of the credit, the services
must be performed and the property must be used in one or more of the
following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chau-
tauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutch-
ess, 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, Washing-
ton, Wayne, Wyoming, or Yates.
(6) PRODUCTION PLUS PROGRAM. (I) A QUALIFIED INDEPENDENT FILM
PRODUCTION COMPANY OR A QUALIFIED FILM PRODUCTION COMPANY, OR A COMPANY
THAT IS A MAJORITY OWNER OF ONE OR MORE QUALIFIED FILM PRODUCTION COMPA-
NIES OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANIES, MAY APPLY TO
PARTICIPATE IN THE PRODUCTION PLUS PROGRAM AFTER IT, OR QUALIFIED FILM
PRODUCTION COMPANIES OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANIES
OF WHICH IT IS THE MAJORITY OWNER, HAS SUBMITTED TWO OR MORE INITIAL
APPLICATIONS TO THE EMPIRE STATE FILM PRODUCTION TAX CREDIT PROGRAM
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE.
(II) A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM
PRODUCTION COMPANY THAT HAS BEEN ACCEPTED INTO THE PRODUCTION PLUS
PROGRAM, OR IS MAJORITY-OWNED BY A COMPANY THAT HAS BEEN ACCEPTED INTO
THE PRODUCTION PLUS PROGRAM, MAY BE ELIGIBLE TO RECEIVE AN ADDITIONAL
TAX CREDIT EQUAL TO THE PRODUCT OF TEN PERCENT AND THE QUALIFIED
PRODUCTION COSTS IN NEW YORK STATE IF PROGRAM ACCEPTANCE WAS BASED ON
INITIAL APPLICATIONS, THE SUM OF WHICH TOTALED AT LEAST ONE HUNDRED
MILLION DOLLARS IN QUALIFIED PRODUCTION COSTS IN NEW YORK STATE.
(III) A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS BEEN
ACCEPTED INTO THE PRODUCTION PLUS PROGRAM, OR IS MAJORITY-OWNED BY A
COMPANY THAT HAS BEEN ACCEPTED INTO THE PRODUCTION PLUS PROGRAM, THAT IS
ENGAGING IN THE PRODUCTION OF A FEATURE LENGTH FILM, TELEVISION FILM OR
TELEVISION SERIES AS DEFINED IN THE REGULATIONS PROMULGATED FOR THIS
PROGRAM, MAY RECEIVE AN ADDITIONAL TAX CREDIT EQUAL TO THE PRODUCT OF
FIVE PERCENT AND THE QUALIFIED PRODUCTION COSTS INCURRED ON ALL SUBSE-
QUENT FILMS OR SERIES APPLIED FOR IF PROGRAM ACCEPTANCE WAS BASED ON
INITIAL APPLICATIONS THE SUM OF WHICH TOTALED AT LEAST TWENTY MILLION
DOLLARS IN QUALIFIED PRODUCTION COSTS IN NEW YORK STATE.
S. 3009--C 57 A. 3009--C
(IV) INITIAL APPLICATIONS FOR FEATURE LENGTH FILMS AND NEW TELEVISION
SERIES SUBMITTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-EIGHT
SHALL NOT BE ELIGIBLE FOR THE PROGRAM PURSUANT TO THIS PARAGRAPH;
PROVIDED, HOWEVER, A TELEVISION SERIES THAT ENTERS THE PROGRAM PURSUANT
TO THIS PARAGRAPH BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-NINE SHALL
CONTINUE TO BE ELIGIBLE.
§ 2. Paragraphs 2 and 7 of subdivision (b) of section 24 of the tax
law, paragraph 2 as amended by section 3 of part D of chapter 59 of the
laws of 2023, paragraph 7 as added by section 9 of part Q of chapter 57
of the laws of 2010, are 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, composers, and performers
(other than background actors with no scripted lines) to the extent
those wages or salaries or other compensation exceed five hundred thou-
sand dollars per individual]. "Production costs" generally include THE
WAGES OR SALARIES OR OTHER COMPENSATION FOR WRITERS, DIRECTORS, COMPOS-
ERS AND PERFORMERS, technical and crew production costs, such as expend-
itures for film production facilities, or any part thereof, props, make-
up, wardrobe, film processing, camera, sound recording, set
construction, lighting, shooting, editing and meals, and shall include
the wages, salaries or other compensation of no more than two producers
per qualified film[, not to exceed five hundred thousand dollars per
producer, where only one of whom is the principal individual responsible
for overseeing the creative and managerial process of production of the
qualified film and only one of whom is the principal individual respon-
sible for the day-to-day operational management of production of the
qualified film; provided, however, that such producers are not compen-
sated for any other position on the qualified film by a qualified film
production company or a qualified independent film production company
for services performed].
(7) "Qualified independent film production company" is a corporation,
partnership, limited partnership, or other entity or individual, that or
who (i) is principally engaged in the production of a qualified film
[with a maximum budget of fifteen million dollars], [and] (ii) [controls
the qualified film during production] IS NOT PUBLICLY TRADED, and (iii)
[either is not a publicly traded entity, or no more than five percent of
the beneficial ownership of which is owned, directly or indirectly, by a
publicly traded entity]IS NOT MAJORITY OWNED, FIFTY-ONE PERCENT OR MORE,
BY A COMPANY PUBLICLY TRADED ON A UNITED STATES STOCK EXCHANGE.
§ 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 2 of chapter 606 of the laws of 2023, 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-three and seven hundred million dollars in
each year starting in two thousand twenty-four through two thousand
[thirty-four] THIRTY-SIX, 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
S. 3009--C 58 A. 3009--C
post production credit pursuant to section thirty-one of this article in
each year starting in two thousand fifteen through two thousand 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] THIRTY-SIX. Provided
further, five million dollars of the annual allocation shall be made
available for the television writers' and directors' fees and salaries
credit pursuant to section twenty-four-b of this article in each year
starting in two thousand twenty through two thousand [thirty-four] THIR-
TY-SIX. This amount shall be allocated by the 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 department of economic 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
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 where the taxpayer filed an
initial application before April first, two thousand twenty-three AND
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, 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 taxa-
ble year immediately following the allocation year for which the film
has been allocated credit by the department of economic development. In
the case of a qualified film that receives funds from additional pool 2
where the taxpayer filed an initial application on or after April first,
two thousand twenty-three AND BEFORE JANUARY FIRST, TWO THOUSAND TWEN-
TY-FIVE, 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 that includes the last day of the
allocation year for which the film has been allocated credit by the
department of economic development. IN THE CASE OF A QUALIFIED FILM FOR
WHICH THE TAXPAYER FILED AN INITIAL APPLICATION ON OR AFTER JANUARY
S. 3009--C 59 A. 3009--C
FIRST, TWO THOUSAND TWENTY-FIVE, THE CREDIT SHALL BE CLAIMED IN THE
TAXABLE YEAR THAT INCLUDES THE LAST DAY OF THE ALLOCATION YEAR FOR WHICH
THE PRODUCTION OF SUCH QUALIFIED FILM HAS BEEN ALLOCATED A CREDIT BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT.
§ 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 3 of chapter 606 of the laws of 2023, 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-three and seven hundred million dollars each
year starting in two thousand twenty-four through two thousand [thirty-
four] THIRTY-SIX, provided however, seven million dollars of the annual
allocation shall be available for the empire state film post production
credit pursuant to section thirty-one of this article in two thousand
thirteen and two thousand fourteen, twenty-five million dollars of the
annual allocation shall be available for the empire state film post
production credit pursuant to section thirty-one of this article in each
year starting in two thousand fifteen through two thousand twenty-three,
and forty-five million dollars of the annual allocation shall be avail-
able 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] THIRTY-SIX. This amount
shall be allocated by the 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 department of economic 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
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 where the taxpayer filed an
initial application before April first, two thousand twenty-three, no
empire state film production credit shall be claimed before the later of
S. 3009--C 60 A. 3009--C
(1) the taxable year the production of the qualified film is complete,
or (2) the taxable year immediately following the allocation year for
which the film has been allocated credit by the department of economic
development. In the case of a qualified film that receives funds from
additional pool 2 where the taxpayer filed an initial application on or
after April first, two thousand twenty-three AND BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-FIVE, 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 that includes
the last day of the allocation year for which the film has been allo-
cated credit by the department of economic development. PROVIDED, HOWEV-
ER, IN THE CASE OF A QUALIFIED FILM FOR WHICH THE CREDIT APPLICATION WAS
RECEIVED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE CREDIT
SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES THE LAST DAY OF THE
ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLOCATED A CREDIT BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT.
§ 5. Section 24 of the tax law is amended by adding a new subdivision
(g) to read as follows:
(G) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SECTION IS REVOKED
BY SUCH DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY
REQUIREMENTS OF THIS SECTION, 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.
§ 6. Paragraphs 3, 5 and 6 of subdivision (a) of section 31 of the tax
law, paragraph 3 as amended by section 5 and paragraph 5 as added by
section 5-a of part B of chapter 59 of the laws of 2013, and paragraph 6
as amended by section 9 of part D of chapter 59 of the laws of 2023, are
amended to read as follows:
(3) (i) A taxpayer shall not be eligible for the credit established by
this section for qualified post production costs, excluding the costs
for visual effects and animation, unless the qualified post production
costs, excluding the costs for visual effects and animation, at a quali-
fied post production facility meet or exceed ONE MILLION DOLLARS OR
seventy-five percent of the total post production costs, excluding the
costs for visual effects and animation, paid or incurred in the post
production of the qualified film at any post production facility, WHICH-
EVER IS LESS. (ii) A taxpayer shall not be eligible for the credit
established by this section for qualified post production costs which
are costs for visual effects or animation unless the qualified post
production costs for visual effects or animation at a qualified post
production facility meet or exceed [three million] FIVE HUNDRED THOUSAND
dollars or [twenty] TEN percent of the total post production costs for
visual effects or animation paid or incurred in the post production of a
qualified film at any post production facility, whichever is less. (iii)
A taxpayer may claim a credit for qualified post production costs
excluding the costs for visual effects and animation, and for qualified
post production costs of visual effects and animation, provided that the
criteria in subparagraphs (i) and (ii) of this paragraph are both satis-
fied. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed.
(5) 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
S. 3009--C 61 A. 3009--C
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. PROVIDED, HOWEVER, IN THE CASE OF A QUALIFIED FILM FOR WHICH THE
TAXPAYER FILED AN INITIAL APPLICATION ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, THE CREDIT SHALL BE CLAIMED FOR THE TAXABLE YEAR
IN WHICH SUCH QUALIFIED FILM IS COMPLETED.
(6) For the period two thousand fifteen through two thousand [thirty-
four] THIRTY-SIX, 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, composers, producers and performers, other than
background actors with no scripted lines) for services performed by
those individuals in one of the counties specified in this paragraph in
connection with the post production work on a qualified film with a
minimum budget of five hundred thousand dollars at a qualified post
production facility in one of the counties listed in this paragraph. For
purposes of this additional credit, the services must be performed in
one or more of the following counties: Albany, Allegany, Broome, Catta-
raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort-
land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee,
Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison,
Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans,
Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie,
Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins,
Ulster, Warren, Washington, Wayne, Wyoming, or Yates.
§ 7. Paragraph 2 of subdivision (b) of section 31 of the tax law, as
added by section 12 of part Q of chapter 57 of the laws of 2010, is
amended to read as follows:
(2) "[Post] QUALIFIED production costs" means production of original
content for a qualified film employing traditional, emerging and new
workflow techniques used in post-production for picture, sound and music
editorial, rerecording and mixing, visual effects, graphic design,
original scoring, animation, and musical composition IN THE STATE; but
shall not include the editing of previously produced content for a qual-
ified film.
§ 8. Section 31 of the tax law, as added by section 12 of part Q of
chapter 57 of the laws of 2010, is amended by adding a new subdivision
(f) to read as follows:
(F) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SECTION IS REVOKED
BY SUCH DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY
REQUIREMENTS OF THIS SECTION, 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.
§ 9. The tax law is amended by adding a new section 24-d to read as
follows:
§ 24-D. EMPIRE STATE INDEPENDENT FILM PRODUCTION CREDIT. (A) (1)
ALLOWANCE OF CREDIT. A TAXPAYER WHICH IS A QUALIFIED INDEPENDENT FILM
PRODUCTION COMPANY, OR WHICH IS A SOLE PROPRIETOR OF OR A MEMBER OF A
PARTNERSHIP WHICH IS A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
S. 3009--C 62 A. 3009--C
AND WHICH IS SUBJECT TO TAX UNDER ARTICLES 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 HEREINAFTER PROVIDED.
(2) (I) 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 THIR-
TY PERCENT AND THE QUALIFIED PRODUCTION COSTS PAID OR INCURRED IN THE
PRODUCTION OF A QUALIFIED FILM, PROVIDED THAT 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 PERFORM-
ANCE OF SERVICES AT ANY FILM PRODUCTION FACILITY WITHIN AND WITHOUT THE
STATE IN THE PRODUCTION OF SUCH QUALIFIED FILM. HOWEVER, IF THE QUALI-
FIED 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 QUALI-
FIED 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 THE STATE OUTSIDE OF A FILM PRODUCTION FACILITY IN THE
PRODUCTION OF SUCH QUALIFIED FILM. THE CREDIT SHALL BE ALLOWED FOR THE
TAXABLE YEAR IN WHICH THE PRODUCTION OF SUCH QUALIFIED FILM IS
COMPLETED. A TAXPAYER SHALL NOT BE ELIGIBLE FOR A TAX CREDIT ESTABLISHED
BY THIS SECTION FOR THE PRODUCTION OF MORE THAN TWO QUALIFIED FILMS PER
CALENDAR YEAR.
(II) IN ADDITION TO THE AMOUNT OF CREDIT ESTABLISHED IN SUBPARAGRAPH
(I) OF THIS PARAGRAPH, A TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO (A)
THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER
OF A PARTNERSHIP) OF TEN PERCENT AND THE WAGES, SALARIES OR OTHER
COMPENSATION CONSTITUTING QUALIFIED PRODUCTION COSTS AS DEFINED IN PARA-
GRAPH ONE OF SUBDIVISION (B) OF THIS SECTION, PAID TO INDIVIDUALS
DIRECTLY EMPLOYED BY A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY FOR
SERVICES PERFORMED BY THOSE INDIVIDUALS IN ONE OF THE COUNTIES SPECIFIED
IN THIS SUBPARAGRAPH IN CONNECTION WITH A QUALIFIED INDEPENDENT FILM
WITH A MINIMUM BUDGET OF FIVE HUNDRED THOUSAND DOLLARS, AND (B) 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 (EXCLUD-
ING WAGES, SALARIES OR OTHER COMPENSATION) PAID OR INCURRED IN THE
PRODUCTION OF A QUALIFIED FILM WHERE THE PROPERTY CONSTITUTING SUCH
QUALIFIED PRODUCTION COSTS WAS USED, AND THE SERVICES CONSTITUTING SUCH
QUALIFIED PRODUCTION COSTS WERE PERFORMED IN ANY OF THE COUNTIES SPECI-
FIED IN THIS SUBPARAGRAPH IN CONNECTION WITH A QUALIFIED FILM WITH A
MINIMUM BUDGET OF FIVE HUNDRED THOUSAND DOLLARS WHERE THE MAJORITY OF
PRINCIPAL PHOTOGRAPHY SHOOTING DAYS IN THE PRODUCTION OF SUCH FILM
WERE SHOT IN ANY OF THE COUNTIES SPECIFIED IN THIS PARAGRAPH. PROVIDED,
HOWEVER, THAT THE AGGREGATE TOTAL ELIGIBLE QUALIFIED PRODUCTION COSTS
CONSTITUTING WAGES, SALARIES OR OTHER COMPENSATION, FOR WRITERS,
DIRECTORS, COMPOSERS, PRODUCERS, AND PERFORMERS SHALL NOT EXCEED FORTY
PERCENT OF THE AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED PRODUCTION
S. 3009--C 63 A. 3009--C
COSTS. FOR PURPOSES OF THE CREDIT, THE SERVICES MUST BE PERFORMED AND
THE PROPERTY MUST BE USED IN ONE OR MORE OF THE FOLLOWING COUNTIES:
ALBANY, ALLEGANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG,
CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ERIE, ESSEX,
FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, HERKIMER, JEFFERSON, LEWIS,
LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONEIDA, ONONDAGA,
ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, SARATOGA,
SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, ST. LAWRENCE, STEUBEN, SULLI-
VAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WYOMING, OR
YATES AND (C) QUALIFIED PRODUCTION COSTS THAT ARE ATTRIBUTABLE TO SCOR-
ING SHALL BE ELIGIBLE FOR AN ADDITIONAL TEN PERCENT CREDIT ON SUCH SCOR-
ING COSTS WHEN INCURRED WITHIN THE STATE AND WHEN SUCH SCORING COSTS
INCLUDE PAYMENT TO A MINIMUM OF FIVE MUSICIANS.
(3) NO QUALIFIED PRODUCTION COSTS USED BY A TAXPAYER EITHER AS THE
BASIS FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS SECTION OR
USED IN THE CALCULATION OF THE CREDIT PROVIDED FOR UNDER THIS SECTION
SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSU-
ANT TO THIS CHAPTER.
(4) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, A
QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CRED-
IT UNDER THE PROVISIONS OF THIS SECTION, AGREES AS A CONDITION FOR THE
GRANTING OF THE CREDIT: (I) TO INCLUDE IN EACH QUALIFIED FILM DISTRIB-
UTED BY DVD, OR OTHER MEDIA FOR THE SECONDARY MARKET, A NEW YORK PROMO-
TIONAL VIDEO APPROVED BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND
TELEVISION DEVELOPMENT OR TO INCLUDE IN THE END CREDITS OF EACH QUALI-
FIED FILM "FILMED WITH THE SUPPORT OF THE NEW YORK STATE GOVERNOR'S
OFFICE OF MOTION PICTURE AND TELEVISION DEVELOPMENT" AND A LOGO PROVIDED
BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION DEVELOPMENT,
AND (II) TO CERTIFY THAT IT WILL PURCHASE TAXABLE TANGIBLE PROPERTY AND
SERVICES, DEFINED AS QUALIFIED PRODUCTION COSTS PURSUANT TO PARAGRAPH
ONE OF SUBDIVISION (B) OF THIS SECTION, ONLY FROM COMPANIES REGISTERED
TO COLLECT AND REMIT STATE AND LOCAL SALES AND USE TAXES PURSUANT TO
ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAPTER.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "QUALIFIED PRODUCTION COSTS" MEANS PRODUCTION COSTS ONLY TO THE
EXTENT SUCH COSTS, EXCLUDING LABOR COSTS, DO NOT EXCEED SIXTY MILLION
DOLLARS AND 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 QUAL-
IFIED FILM. IN THE CASE OF AN ELIGIBLE RELOCATED TELEVISION SERIES, THE
TERM "QUALIFIED PRODUCTION COSTS" SHALL INCLUDE, IN THE FIRST SEASON
THAT THE ELIGIBLE RELOCATED TELEVISION SERIES IS PRODUCED IN NEW YORK
AFTER RELOCATION, QUALIFIED RELOCATION COSTS. PROVIDED, HOWEVER, THAT
THE AGGREGATE TOTAL ELIGIBLE QUALIFIED PRODUCTION COSTS FOR PRODUCERS,
WRITERS, DIRECTORS, PERFORMERS (OTHER THAN BACKGROUND ACTORS WITH NO
SCRIPTED LINES), AND COMPOSERS SHALL NOT EXCEED FORTY PERCENT OF THE
AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED PRODUCTION COSTS.
(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 COSTS FOR A STORY, SCRIPT OR
SCENARIO TO BE USED FOR A QUALIFIED FILM. "PRODUCTION COSTS" GENERALLY
INCLUDE WRITERS, DIRECTORS, COMPOSERS AND PERFORMERS, TECHNICAL AND CREW
PRODUCTION COSTS, SUCH AS EXPENDITURES FOR FILM PRODUCTION FACILITIES,
OR ANY PART THEREOF, PROPS, MAKEUP, WARDROBE, FILM PROCESSING, CAMERA,
S. 3009--C 64 A. 3009--C
SOUND RECORDING, SCORING, SET CONSTRUCTION, LIGHTING, SHOOTING, EDITING
AND MEALS.
(3) "QUALIFIED FILM" MEANS A SCRIPTED NARRATIVE FEATURE-LENGTH FILM,
TELEVISION FILM, RELOCATED TELEVISION SERIES OR TELEVISION SERIES,
REGARDLESS OF THE MEDIUM BY MEANS OF WHICH THE FILM 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 SHOOT-
ING DAYS IN THE PRODUCTION OF THE QUALIFIED FILM ARE SHOT IN WESTCHES-
TER, 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 TELEVISION PILOT, DOCUMENTARY FILM, NEWS OR CURRENT
AFFAIRS PROGRAM, INTERVIEW OR TALK PROGRAM, "HOW-TO" (I.E., INSTRUC-
TIONAL) 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 INSTITU-
TIONAL 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) A TELEVISION 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 PERFORM-
ANCES, DANCING, COOKING, CRAFTS, PRANKS, STUNTS, AND GAMES AND WHICH MAY
BE FURTHER DEFINED IN REGULATIONS OF THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT.
(4) "FILM PRODUCTION FACILITY" SHALL MEAN A BUILDING AND/OR COMPLEX OF
BUILDINGS AND THEIR IMPROVEMENTS AND ASSOCIATED BACK-LOT FACILITIES IN
WHICH FILMS ARE OR ARE INTENDED TO BE REGULARLY PRODUCED AND WHICH
CONTAIN AT LEAST ONE SOUND STAGE, PROVIDED, HOWEVER, THAT AN ARMORY
OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF NEW YORK
SHALL NOT BE CONSIDERED TO BE A "FILM PRODUCTION FACILITY" UNLESS SUCH
FACILITY IS USED BY A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY.
(5) "QUALIFIED FILM PRODUCTION FACILITY" SHALL MEAN A FILM PRODUCTION
FACILITY IN THE STATE, WHICH CONTAINS AT LEAST ONE SOUND STAGE HAVING A
MINIMUM OF SEVEN THOUSAND SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE.
(6) "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM,
(II) IS NOT PUBLICLY TRADED, AND (III) IS NOT MAJORITY OWNED, FIFTY-ONE
PERCENT OR MORE, BY A COMPANY PUBLICLY TRADED ON A UNITED STATES STOCK
EXCHANGE.
(7) "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 COMMER-
CIAL ADVERTISEMENT AND INTERSTITIAL PROGRAMMING, IF ANY), 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
S. 3009--C 65 A. 3009--C
SERIES HAD A TOTAL MINIMUM BUDGET OF AT LEAST ONE MILLION DOLLARS PER
EPISODE. 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 THEMSELVES MAY VARY IN DURATION FROM THE THIRTY MINUTES
SPECIFIED FOR NETWORK/CABLE PRODUCTION.
(8) "QUALIFIED RELOCATION COSTS" MEANS THE COSTS INCURRED, EXCLUDING
WAGES, SALARIES AND OTHER COMPENSATION, IN THE FIRST SEASON THAT A RELO-
CATED TELEVISION SERIES RELOCATES TO NEW YORK, INCLUDING SUCH COSTS
INCURRED TO TRANSPORT SETS, PROPS AND WARDROBE TO NEW YORK AND OTHER
COSTS AS DETERMINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO THE
EXTENT SUCH COSTS DO NOT EXCEED SIX MILLION DOLLARS.
(9) IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY
PARTICULAR YEAR IS LESS THAN THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
FOR SUCH YEAR UNDER THIS SECTION, ANY UNUSED PORTION MAY BE CARRIED OVER
AND ADDED TO THE AGGREGATE AMOUNT OF CREDITS ALLOWED IN THE NEXT
SUCCEEDING TAXABLE YEAR OR YEARS.
(C) 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 20-A.
(2) ARTICLE 22: SECTION 606: SUBSECTION (GG-1).
(D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION DEVELOP-
MENT AND THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE INFORMATION REGARDING THE CREDITS APPLIED FOR, ALLOWED, OR
CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR
CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED IN
OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND
APPLICATIONS FOR CREDIT SUBMITTED TO THE GOVERNOR'S OFFICE OF MOTION
PICTURE AND TELEVISION DEVELOPMENT.
(E) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION TWENTY-A OF SECTION TWO HUNDRED TEN AND
SUBSECTION (GG-1) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
CALENDAR YEAR SHALL BE (1) TWENTY MILLION DOLLARS FOR QUALIFIED FILMS
WITH A BUDGET OF LESS THAN TEN MILLION DOLLARS OF QUALIFIED PRODUCTION
COSTS; AND (2) EIGHTY MILLION DOLLARS FOR QUALIFIED FILMS WITH A BUDGET
OF TEN MILLION DOLLARS OR MORE OF QUALIFIED PRODUCTION COSTS. THERE
SHALL BE AT LEAST TWO APPLICATION PERIODS EACH YEAR; 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 OF AN APPLICATION FOR ALLOCATION OF THE
INDEPENDENT FILM PRODUCTION CREDIT WITH SUCH OFFICE WITHIN EACH APPLICA-
TION PERIOD. IF THE COMMISSIONER OF ECONOMIC DEVELOPMENT DETERMINES THAT
THE AGGREGATE AMOUNT OF TAX CREDITS AVAILABLE FOR AN APPLICATION PERIOD
UNDER PARAGRAPH ONE OF THIS SUBDIVISION HAVE BEEN PREVIOUSLY ALLOCATED,
AND DETERMINES THAT THE PENDING APPLICATIONS FROM ELIGIBLE APPLICANTS
FOR THE OTHER APPLICATION PERIOD IN SUCH CALENDAR YEAR IS INSUFFICIENT
TO UTILIZE THE BALANCE OF UNALLOCATED TAX CREDITS FOR SUCH PERIOD, THEN
SUCH COMMISSIONER MAY ALLOCATE TO PRODUCTIONS ELIGIBLE UNDER SUCH PARA-
GRAPH ANY CREDITS THAT REMAIN UNALLOCATED FOR SUCH PERIOD PURSUANT TO
PARAGRAPH TWO OF THIS SUBDIVISION. PROVIDED, HOWEVER, THE TOTAL AMOUNT
OF ALLOCATED CREDITS APPLIED IN ANY CALENDAR YEAR SHALL NOT EXCEED THE
S. 3009--C 66 A. 3009--C
AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS
SECTION.
(F) (1) THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL REDUCE BY ONE-
HALF OF ONE PERCENT THE AMOUNT OF CREDIT ALLOWED TO A TAXPAYER AND THIS
REDUCED AMOUNT SHALL BE REPORTED ON A CERTIFICATE OF TAX CREDIT ISSUED
PURSUANT TO THIS SECTION AND THE REGULATIONS PROMULGATED BY THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT TO IMPLEMENT THIS CREDIT PROGRAM.
(2) BY JANUARY THIRTY-FIRST OF EACH YEAR, THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL REPORT TO THE COMPTROLLER THE TOTAL AMOUNT OF SUCH
REDUCTIONS OF TAX CREDIT DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR.
ON OR BEFORE MARCH THIRTY-FIRST OF EACH YEAR, THE COMPTROLLER SHALL
TRANSFER WITHOUT APPROPRIATIONS FROM THE GENERAL FUND TO THE EMPIRE
STATE ENTERTAINMENT DIVERSITY JOB TRAINING DEVELOPMENT FUND ESTABLISHED
UNDER SECTION NINETY-SEVEN-FF OF THE STATE FINANCE LAW AN AMOUNT EQUAL
TO THE TOTAL AMOUNT OF SUCH REDUCTIONS REPORTED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT FOR THE IMMEDIATELY PRECEDING CALENDAR YEAR.
(G) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SECTION IS REVOKED
BY SUCH DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY
REQUIREMENTS OF THIS SECTION, 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.
§ 10. Section 210-B of the tax law is amended by adding a new subdivi-
sion 20-a to read as follows:
20-A. EMPIRE STATE INDEPENDENT FILM PRODUCTION CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-D
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION TWENTY-FOUR-D AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED,
HOWEVER, THAT IF THE AMOUNT OF THE 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,
THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
§ 11. Section 606 of the tax law is amended by adding a new subsection
(gg-1) to read as follows:
(GG-1) EMPIRE STATE INDEPENDENT FILM PRODUCTION CREDIT. (1) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-D
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION TWENTY-FOUR-D AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 12. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (lii) to read as
follows:
(LII) EMPIRE STATE FILM AMOUNT OF CREDIT FOR QUALIFIED
S. 3009--C 67 A. 3009--C
PRODUCTION CREDIT UNDER PRODUCTION COSTS IN PRODUCTION OF
SUBSECTION (GG-1) A QUALIFIED FILM UNDER
SUBDIVISION TWENTY-A OF
SECTION TWO HUNDRED TEN-B
§ 13. This act shall take effect immediately and shall apply to
initial applications received on or after January 1, 2025, provided,
however, that the amendments to paragraph 4 of subdivision (e) of
section 24 of the tax law made by section three of this act shall take
effect on the same date and in the same manner as section 6 of chapter
683 of the laws of 2019, takes effect.
PART J
Section 1. Subdivisions 1, 2, 3, 4, 7, 9, 10 and 13 of section 492 of
the economic development law, as added by section 2 of part AAA of chap-
ter 56 of the laws of 2024, are amended to read as follows:
1. "Average full-time employment" shall mean the average number of
full-time positions employed by [a] AN ELIGIBLE business [entity] in an
eligible industry during a given period.
2. "Average starting full-time employment" shall be calculated as the
average number of full-time positions employed by [a] AN ELIGIBLE busi-
ness [entity] in an eligible industry during a timeframe to be deter-
mined by the department of economic development.
3. "Average ending full-time employment" shall be calculated as the
average number of full-time positions employed by [a] AN ELIGIBLE busi-
ness [entity] in an eligible industry during a timeframe to be deter-
mined by the department of economic development.
4. "Certificate of tax credit" means the document issued to [a] AN
ELIGIBLE business [entity] by the department after the department has
verified that the ELIGIBLE business [entity] has met all applicable
eligibility criteria in this article. The certificate shall specify the
exact amount of the tax credit under this article that [a] AN ELIGIBLE
business [entity] may claim, pursuant to section four hundred ninety-
five and section four hundred ninety-six of this article.
7. "Eligible business" shall mean a print media or broadcast media
business operating within an eligible industry, which also carries media
liability insurance. FOR THE PURPOSES OF THIS SUBDIVISION, EACH PRINT
MEDIA PUBLICATION SERVING A SEPARATE MARKET, AS DETERMINED BY THE
DEPARTMENT, SHALL BE TREATED AS A SEPARATE PRINT MEDIA BUSINESS.
9. "Eligible industry" means [a] AN ELIGIBLE business [entity] operat-
ing predominantly in the newspaper publishing sector or the broadcast
media sector, as determined by the department.
10. "Net employee increase" means an increase of at least one full-
time employee between the average starting full-time employment and the
average ending full-time employment of [a] AN ELIGIBLE business [enti-
ty], as defined by the department.
13. "Independently owned" shall mean a business entity that is not[:
(a)] a publicly traded entity or no more than five percent of the bene-
ficial ownership of which is owned, directly or indirectly by a publicly
traded entity[; (b) a subsidiary; and (c) any other criteria that the
department shall determine via regulations to ensure the business is not
controlled by another business entity].
§ 2. Subdivision 3 of section 494 of the economic development law, as
added by section 2 of part AAA of chapter 56 of the laws of 2024, is
amended to read as follows:
S. 3009--C 68 A. 3009--C
3. After reviewing a business entity's completed final application and
determining that the business entity meets the eligibility criteria as
set forth in this article, the department may issue [to that business
entity] a certificate of tax credit. [A business entity may claim the
tax credit.]
§ 3. Subdivisions 1, 2 and 3 of section 495 of the economic develop-
ment law, as added by section 2 of part AAA of chapter 56 of the laws of
2024, are amended to read as follows:
1. A business entity that meets the eligibility requirements of
section four hundred ninety-three of this article, and meets any addi-
tional eligibility criteria as articulated in regulations established
pursuant to this section, and demonstrates a net employee increase, may
be [eligible to claim] ISSUED a CERTIFICATE OF TAX credit equal to five
thousand dollars per each full-time net employee increase as defined in
section four hundred ninety-two of this article. A business entity,
including a partnership, limited liability company and subchapter S
corporation, may not receive in excess of twenty thousand dollars in tax
credits FOR EACH PRINT MEDIA BUSINESS OR BROADCAST MEDIA BUSINESS under
this program.
2. A business entity that meets the eligibility requirements of
section four hundred ninety-three of this article, and meets any addi-
tional eligibility criteria as articulated in regulations established
pursuant to this section, may be [eligible to claim] ISSUED a CERTIF-
ICATE OF TAX credit equal to fifty percent of annual wages of an eligi-
ble employee. The calculation of such a credit shall only be applied to
up to fifty thousand dollars in wages paid annually per eligible employ-
ee. A business entity, including a partnership, limited liability compa-
ny and subchapter S corporation, may not receive in excess of three
hundred thousand dollars in tax credits FOR EACH PRINT MEDIA BUSINESS OR
BROADCAST MEDIA BUSINESS under this program.
3. The total amount of tax credits listed on certificates of tax cred-
it issued by the commissioner pursuant to this article may not exceed
thirty million dollars for each year the credit is available. Within
this amount, the newspaper and broadcast media new job creation compo-
nent of the credit may not exceed four million dollars per year and the
newspaper and broadcast media existing jobs component of the credit may
not exceed twenty-six million dollars per year. Fifty percent of the
newspaper and broadcast media existing jobs component credits will be
set-aside for eligible [business entities] BUSINESSES with one hundred
or fewer employees. Fifty percent of the newspaper and broadcast media
existing jobs component credits will be set-aside for eligible [business
entities] BUSINESSES with over one hundred employees. In both instances
the cap will be three hundred thousand dollars under this program.
§ 4. Subdivisions (a), (b) and (c) of section 49 of the tax law, as
added by section 3 of part AAA of chapter 56 of the laws of 2024, are
amended to read as follows:
(a) Allowance of credit. A taxpayer 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 (e) of
this section. The amount of the credit is equal to the amount determined
pursuant to article twenty-seven of the economic development law AND
SHALL BE BASED ON THE CERTIFICATES OF TAX CREDIT ISSUED TO ELIGIBLE
BUSINESSES OWNED BY THE TAXPAYER OR BY AN ENTITY OF WHICH THE TAXPAYER
IS A PARTNER OR SHAREHOLDER. A taxpayer that is a partner in a partner-
ship, member of a limited liability company or shareholder in a subchap-
ter S corporation shall be allowed its pro-rata share of the credit
S. 3009--C 69 A. 3009--C
allowed for the partnership, limited liability company or subchapter S
corporation. No cost or expense paid or incurred 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 to claim the newspaper and broadcast
media jobs tax credit the ELIGIBLE BUSINESSES OWNED BY THE taxpayer OR
BY AN ENTITY OF WHICH THE TAXPAYER IS A PARTNER OR SHAREHOLDER shall
have been issued a certificate of tax credit by the department of
economic development pursuant to article twenty-seven of the economic
development law, which certificate OR CERTIFICATES shall set forth the
amount of the credit that may be claimed for the taxable year. The
taxpayer shall be allowed to claim only the amount OR AMOUNTS listed on
the certificate OR CERTIFICATES of tax credit ISSUED TO ELIGIBLE BUSI-
NESSES OWNED BY THE TAXPAYER OR BY AN ENTITY OF WHICH THE TAXPAYER IS A
PARTNER OR SHAREHOLDER for that taxable year.
(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 OR CERTIFICATES of tax credit issued by the
commissioner of the department of economic development.
§ 5. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2025.
PART K
Section 1. Subdivisions (b) and (c) of section 45 of the tax law, as
added by section 1 of part OO of chapter 59 of the laws of 2022, are
amended to read as follows:
(b) Allocation of credit. The aggregate amount of tax credits allowed
under this section, subdivision fifty-five of section two hundred ten-B
and subsection (nnn) of section six hundred six of this chapter in any
taxable year shall be five million dollars. Such credit shall be allo-
cated by the department of economic development in order of priority
based upon the date of filing an application for allocation of digital
gaming media production credit with such office. If the total amount of
allocated credits applied for in any particular year exceeds the aggre-
gate amount of tax credits allowed for such year under this section,
such excess shall be treated as having been applied for on the first day
of the subsequent taxable year. PROVIDED, HOWEVER, THAT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, IF
THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR
IS LESS THAN THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR
UNDER THIS SECTION, ANY UNUSED PORTION MAY BE CARRIED OVER AND ADDED TO
THE AGGREGATE AMOUNT OF CREDITS ALLOWED IN THE NEXT SUCCEEDING TAXABLE
YEAR OR YEARS.
(c) Definitions. As used in this section:
(1) "Qualified digital gaming media production" means: (i) a website,
the digital media production costs of which are paid or incurred predo-
minately in connection with (A) video simulation, animation, text,
audio, graphics or similar gaming related property embodied in digital
format, and (B) interactive features of digital gaming (e.g., links,
message boards, communities or content manipulation); (ii) video or
interactive games produced primarily for distribution over the internet,
wireless network or successors thereto; and (iii) animation, simulation
or embedded graphics digital gaming related software intended for
commercial distribution regardless of medium; provided, however, that
the qualified digital game development media productions described in
S. 3009--C 70 A. 3009--C
subparagraphs (i) through (iii) of this paragraph must have digital
media production costs equal to or in excess of [one hundred] FIFTY
thousand dollars per production. A qualified digital gaming media
production does not include a website, video, interactive game or soft-
ware that is used predominately for: electronic commerce (retail or
wholesale purposes other than the sale of video interactive games),
gambling (including activities regulated by a New York gaming agency),
or political advocacy purposes.
(2) "Digital gaming media production costs" means any costs for wages
or salaries paid to individuals, other than actors or writers, directly
employed for services performed by those individuals directly and
predominantly in the creation of a digital gaming media production or
productions. Up to [one] TWO hundred thousand dollars in wages and sala-
ries paid to such employees, other than actors and writers, directly
employed shall be used in the calculation of this credit. Digital gaming
media production costs include but shall not be limited to payments for
services performed directly and predominantly in the development
(including concept AND PROTOTYPE creation), design (INCLUDING NARRATIVE
DIRECTION AND SOUND DESIGN), production (including [concept creation]
TESTING AND ENCODING), [design, production (including testing), editing
(including encoding)] EDITING (INCLUDING BUG FIXING) and compositing
(including the integration of digital files for interaction by end
users) of digital gaming media. Digital gaming media production costs
shall not include expenses incurred for the distribution, marketing,
promotion, or advertising content generated by end users, other costs
not directly [and predominantly] related to the creation, production or
modification of digital gaming media or costs used by the taxpayer as a
basis of the calculation of any other tax credit allowed under this
chapter. In addition, [salaries or other income distribution] WAGES
related to the creation of digital gaming media for any person who
PREDOMINANTLY serves IN A CORPORATE CAPACITY in the role of chief execu-
tive officer, chief financial officer, president, treasurer or similar
CORPORATE position shall not be included as digital gaming media
production costs if the digital gaming media production entity has more
[then] THAN ten employees. [Salaries or other income] WAGES PAID to a
person serving in such a role for the digital gaming media production
entity shall also not be included if the person was employed by a
related person of the digital gaming media production entity within
sixty months of the date the digital gaming media production entity
applied for the tax credit certificate described in subdivision (d) of
this section. For purposes of the preceding sentence, a related person
shall have the same meaning as the term "related person" in section four
hundred sixty-five of the internal revenue code. Furthermore, any income
or other distribution to any individual including, but not limited to,
licensing or royalty fees, who holds an ownership interest in a digital
gaming media production entity, whether or not such individual is serv-
ing in the role of chief executive officer, chief financial officer,
president, treasurer or similar position for such an entity, shall not
be included as digital gaming media production costs. Up to [four] FIVE
million dollars in qualified digital gaming media production costs per
production shall be used in the calculation of this credit. Digital
gaming media production costs shall not include those costs used by the
taxpayer or another taxpayer as the basis calculation of any other tax
credit allowed under this chapter.
(3) "Qualified digital gaming media production costs" means digital
gaming media production costs only to the extent such costs are attrib-
S. 3009--C 71 A. 3009--C
utable to the use of property or the performance of services by any
persons within the state directly and predominantly in the creation,
production or modification of digital gaming related media. Such total
production costs incurred and paid in this state shall be equal to or
exceed [seventy-five] FIFTY-ONE percent of total cost of an eligible
production incurred and paid within and without this state.
(4) "Digital gaming media production entity" means a corporation,
partnership, limited partnership or other entity or individual engaged
in qualified digital game development media production.
§ 2. This act shall take effect immediately.
PART L
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 1 of subpart E of part I of chapter
59 of the laws of 2023, is amended to read as follows:
§ 6. This act shall take effect immediately; provided however, that
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,
[2026] 2028 and shall expire and be deemed repealed January 1, [2026]
2028; 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, [2027] 2029.
§ 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section
24-c of the tax law, as amended by section 3 of subpart E of part I of
chapter 59 of the laws of 2023, 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-five] TWENTY-SEVEN or the date the qualified musical and theat-
rical production closes.
§ 3. Subdivision (c) of section 24-c of the tax law, as amended by
section 4 of subpart E of part I of chapter 59 of the laws of 2023, 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-six] TWENTY-EIGHT. A qualified New York city
musical and theatrical production company shall claim the credit in the
year in which its credit period ends.
§ 4. Subdivision (f) of section 24-c of the tax law, as added by
section 1 of subpart B of part PP of chapter 59 of the laws of 2021,
paragraphs 1 and 2 as amended by section 5 of subpart E of part I of
chapter 59 of the laws of 2023, is amended to read as follows:
(f) Maximum amount of credits. (1) The aggregate amount of tax cred-
its 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 [three] FOUR hundred million dollars. Such aggregate
amount of credits shall be allocated by the department of economic
development among taxpayers based on the date of first performance of
the qualified musical and theatrical production.
S. 3009--C 72 A. 3009--C
(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-five] TWENTY-SEVEN.
§ 5. This act shall take effect immediately; provided, however, that
the amendments to section 24-c of the tax law, made by sections two,
three and four of this act, shall not affect the repeal of such section
and shall be deemed to be repealed therewith.
PART M
Section 1. Section 35 of the tax law, as added by section 12 of part U
of chapter 61 of the laws of 2011, is amended to read as follows:
§ 35. Use of electronic means of communication. Notwithstanding any
other provision of New York state law, where the department has obtained
authorization of an online services account holder, in such form as may
be prescribed by the commissioner, the department may use electronic
means of communication to furnish any document it is required to mail
per law or regulation. If the department furnishes such document in
accordance with this section, department records of such transaction
shall constitute appropriate and sufficient proof of delivery thereof
and be admissible in any action or proceeding. PROVIDED, HOWEVER, THAT
IF A TAXPAYER USES A DEPARTMENT SYSTEM TO ACCESS TAXPAYER INFORMATION,
INCLUDING, BUT NOT LIMITED TO, NOTICES, DOCUMENTS AND ACCOUNT BALANCE
INFORMATION, THAT IS NOT AN ELECTRONIC COMMUNICATION FURNISHED IN LIEU
OF MAILING IN ACCORDANCE WITH THIS SECTION, SUCH ACCESSED INFORMATION
SHALL NOT GIVE THE TAXPAYER THE RIGHT TO A HEARING IN THE DIVISION OF
TAX APPEALS, UNLESS THE RIGHT TO PROTEST SUCH INFORMATION IS EXPRESSLY
AUTHORIZED BY THIS CHAPTER OR ANOTHER PROVISION OF LAW.
§ 2. Subdivision 1 of section 2008 of the tax law, as amended by
section 3 of subpart C of part V-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
1. All proceedings in the division of tax appeals shall be commenced
by the filing of a petition with the division of tax appeals protesting
any written notice of the division of taxation, INCLUDING ANY ELECTRONIC
NOTICE PROVIDED IN ACCORDANCE WITH SECTION THIRTY-FIVE OF THIS CHAPTER,
which has advised the petitioner of a tax deficiency, a determination of
tax due, a denial of a refund or credit application, a cancellation,
revocation or suspension of a license, permit or registration, a denial
of an application for a license, permit or registration or any other
notice which EXPRESSLY gives a person the right to a hearing in the
division of tax appeals under this chapter or other law. PROVIDED,
HOWEVER, THAT ANY WRITTEN COMMUNICATIONS OF THE DIVISION OF TAXATION
THAT ADVISE A TAXPAYER OF A PAST-DUE TAX LIABILITY, AS DEFINED IN
SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER, SHALL NOT GIVE A
PERSON THE RIGHT TO A HEARING IN THE DIVISION OF TAX APPEALS.
S. 3009--C 73 A. 3009--C
§ 3. This act shall take effect immediately.
PART N
Section 1. Section 6 of the tax law, as added by chapter 765 of the
laws of 1985, is amended to read as follows:
§ 6. Filing of ELECTRONIC warrants AND WARRANT-RELATED RECORDS in the
department of state. [Wherever under the provisions] 1. NOTWITHSTANDING
ANY PROVISION of this chapter OR a [warrant is required to] RELATED
STATUTE TO THE CONTRARY, ALL WARRANTS AND WARRANT-RELATED RECORDS ISSUED
BY THE DEPARTMENT SHALL be filed ELECTRONICALLY BY THE DEPARTMENT in the
department of state [in order to create a lien on personal property such
requirement shall be satisfied if there is filed a record of the fact of
the issuance of such warrant, including the name of the person on the
basis of whose tax liability the warrant is issued, the last known
address of such person, and the amount of such tax liability, including
penalties and interest]. No fee shall be required to be paid for such
[filing of such warrant or such record] FILINGS. [The term "filed" in
such provisions shall mean presentation to the department of state, for
filing, of such warrant or such record.] ON THE DATE OF THE ELECTRONIC
FILING OF A WARRANT, AS CONFIRMED BY THE DEPARTMENT OF STATE PURSUANT TO
SUBDIVISION FIVE OF THIS SECTION:
(A) THE AMOUNT OF THE TAX STATED IN THE WARRANT SHALL BECOME A LIEN
UPON THE TITLE TO AND INTEREST IN ALL REAL, PERSONAL OR OTHER PROPERTY
LOCATED IN NEW YORK STATE, OWNED BY THE PERSON OR PERSONS NAMED IN THE
WARRANT. THE LIEN SO CREATED SHALL:
(I) ATTACH TO ALL REAL PROPERTY AND RIGHTS TO REAL PROPERTY LOCATED IN
NEW YORK STATE THAT IS OWNED BY THE PERSON OR PERSONS NAMED IN THE
WARRANT AT ANY TIME DURING THE PERIOD OF THE LIEN, INCLUDING ANY REAL
PROPERTY OR RIGHTS TO REAL PROPERTY LOCATED IN NEW YORK STATE THAT IS
ACQUIRED BY SUCH PERSON OR PERSONS AFTER THE LIEN ARISES; AND
(II) APPLY TO ALL PERSONAL OR OTHER PROPERTY AND RIGHTS TO PERSONAL OR
OTHER PROPERTY LOCATED IN NEW YORK STATE THAT IS OWNED BY THE PERSON OR
PERSONS NAMED IN THE WARRANT AT ANY TIME DURING THE PERIOD OF THE LIEN,
INCLUDING ANY PERSONAL OR OTHER PROPERTY OR RIGHTS TO PERSONAL OR OTHER
PROPERTY LOCATED IN NEW YORK STATE THAT IS ACQUIRED BY SUCH PERSON OR
PERSONS AFTER THE LIEN ARISES; AND
(B) THE COMMISSIONER SHALL, IN THE RIGHT OF THE PEOPLE OF THE STATE OF
NEW YORK, BE DEEMED TO HAVE OBTAINED A JUDGMENT AGAINST THE PERSON OR
PERSONS NAMED IN THE WARRANT FOR THE AMOUNT OF THE TAX STATED IN THE
WARRANT.
2. ENFORCEMENT OF A JUDGMENT OBTAINED PURSUANT TO SUBDIVISION ONE OF
THIS SECTION SHALL BE AS PRESCRIBED IN ARTICLE FIFTY-TWO OF THE CIVIL
PRACTICE LAW AND RULES.
3. A WRITTEN OR ELECTRONIC COPY OF ANY ELECTRONIC WARRANT OR WARRANT-
RELATED RECORD FILED IN THE DEPARTMENT OF STATE SHALL BE FILED BY THE
DEPARTMENT IN THE OFFICE OF THE CLERK OF THE COUNTY NAMED IN THE WARRANT
OR WARRANT-RELATED RECORD.
4. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER OR A RELATED STATUTE
TO THE CONTRARY, ALL WARRANT-RELATED RECORDS ISSUED BY THE DEPARTMENT
THAT ARE AUTHORIZED BY APPLICABLE LAWS, INCLUDING, BUT NOT LIMITED TO,
WARRANT SATISFACTIONS, VACATURS, AMENDMENTS AND EXPIRATIONS, AND ANY
WARRANT-RELATED RECORD ISSUED BY THE DEPARTMENT ON OR AFTER JULY FIRST,
TWO THOUSAND TWENTY-FIVE THAT PERTAINS TO A WARRANT FILED PRIOR TO JULY
FIRST, TWO THOUSAND TWENTY-FIVE, SHALL BE FILED ELECTRONICALLY BY THE
DEPARTMENT IN THE DEPARTMENT OF STATE. NO FEE SHALL BE REQUIRED TO BE
S. 3009--C 74 A. 3009--C
PAID FOR SUCH FILINGS. A WRITTEN OR ELECTRONIC COPY OF THE ELECTRONIC
WARRANT-RELATED RECORD FILED IN THE DEPARTMENT OF STATE SHALL BE FILED
BY THE DEPARTMENT IN THE OFFICE OF THE CLERK OF THE COUNTY NAMED IN THE
WARRANT-RELATED RECORD.
5. THE DEPARTMENT SHALL FILE WARRANTS AND WARRANT-RELATED RECORDS
ELECTRONICALLY WITH THE DEPARTMENT OF STATE. THE DEPARTMENT OF STATE
SHALL PROVIDE ELECTRONIC NOTICE TO THE DEPARTMENT CONFIRMING THE DATE OF
FILING OF THE WARRANTS AND WARRANT-RELATED RECORDS. THE DEPARTMENT OF
STATE SHALL ALSO MAKE INFORMATION REGARDING THE WARRANTS AND WARRANT-RE-
LATED RECORDS, INCLUDING THE DATE OF FILING, AVAILABLE TO THE PUBLIC AND
SEARCHABLE BY THE NAME OF THE PERSON OR PERSONS LISTED IN THE TAX
WARRANT. UPON REQUEST OF THE COMMISSIONER, THE DEPARTMENT OF STATE SHALL
CERTIFY THAT A WARRANT OR WARRANT-RELATED RECORD HAS BEEN FILED AND THE
DATE OF SUCH FILING.
6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER CONCERNING THE
PLACE OF FILING OF A TAX WARRANT AND THE CREATION THEREBY OF A TAX LIEN
AND JUDGMENT, THE PROVISIONS OF THIS SECTION SHALL GOVERN SUCH MATTERS
FOR PURPOSES OF ANY TAXES IMPOSED BY OR PURSUANT TO THIS CHAPTER.
§ 2. Subdivision 1 of section 174-a of the tax law, as added by chap-
ter 176 of the laws of 1997, is amended to read as follows:
1. General rule. Notwithstanding any provision of law to the contrary,
the provisions of the civil practice law and rules relating to the dura-
tion of a lien of a docketed judgment in and upon real property of a
judgment debtor, and the extension of any such lien, shall apply to any
warrant OR OTHER WARRANT-RELATED DOCUMENT ELECTRONICALLY filed on behalf
of the commissioner against a taxpayer with the [clerk of a county wher-
ein such taxpayer owns or has an interest in real property] DEPARTMENT
OF STATE, whether such warrant is being enforced by a sheriff or an
officer or employee of the department.
§ 3. Section 175 of the tax law, as amended by chapter 170 of the laws
of 1994, is amended to read as follows:
§ 175. Manner of execution of instruments by the commissioner.
Notwithstanding any other provision of law, whenever a statute author-
izes or requires the commissioner to execute an instrument, such instru-
ment shall be executed by having the name or title of the commissioner
appear on such instrument and, underneath such name or title, such
instrument shall be signed by the commissioner or by a deputy tax
commissioner or by the secretary to such commissioner[, and the]. AN
ELECTRONIC SIGNATURE MAY BE USED IN LIEU OF A SIGNATURE AFFIXED BY HAND
PURSUANT TO ARTICLE THREE OF THE STATE TECHNOLOGY LAW. THE seal of such
commissioner [shall] MAY be affixed or [shall] appear on such instrument
as a facsimile which is engraved, printed or reproduced in any other
manner. No acknowledgment of the execution of any such instrument shall
be necessary for the purpose of the recordation thereof or for any other
purpose.
§ 4. This act shall take effect July 1, 2025 and shall apply to
warrants and warrant-related records pertaining to such warrants filed,
or deemed to have been filed, on or after such date; provided, however,
that the department of taxation and finance and the department of state
are authorized to take any steps necessary to implement this act on or
before such effective date.
PART O
S. 3009--C 75 A. 3009--C
Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
property tax law, as amended by section 1 of part RR of chapter 59 of
the laws of 2019, is amended to read as follows:
(b-1) Income. For final assessment rolls to be used for the levy of
taxes for the two thousand eleven-two thousand twelve through two thou-
sand eighteen-two thousand nineteen school years, the parcel's affil-
iated income may be no greater than five hundred thousand dollars, as
determined by the commissioner pursuant to subdivision fourteen of this
section or section one hundred seventy-one-u of the tax law, in order to
be eligible for the basic exemption authorized by this section. Begin-
ning with the two thousand nineteen-two thousand twenty school year, for
purposes of the exemption authorized by this section, the parcel's
affiliated income may be no greater than two hundred fifty thousand
dollars, as so determined. As used herein, the term "affiliated income"
shall mean the combined income of all of the owners of the parcel who
resided primarily thereon on the applicable taxable status date, and of
any owners' spouses residing primarily thereon. For exemptions on final
assessment rolls to be used for the levy of taxes for the two thousand
eleven-two thousand twelve school year, affiliated income shall be
determined based upon the parties' incomes for the income tax year
ending in two thousand nine. In each subsequent school year, the appli-
cable income tax year shall be advanced by one year. The term "income"
as used herein shall have the same meaning as in subdivision four of
this section, AND THE PROVISIONS OF CLAUSE (B) OF SUBPARAGRAPH (II) OF
PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION SHALL BE EQUALLY
APPLICABLE TO THE BASIC EXEMPTION.
§ 2. Paragraph (a) of subdivision 4 of section 425 of the real proper-
ty tax law, as amended by section 4 of part A of chapter 405 of the laws
of 1999 and subparagraph (i) as amended by section 2 of part E of chap-
ter 83 of the laws of 2002, is amended to read as follows:
(a) Age. (i) [All] AT LEAST ONE of the owners WHO RESIDES PRIMARILY ON
THE PROPERTY must be [at least] sixty-five years of age or older as of
the date specified herein[, or in the case of property owned by husband
and wife or by siblings, one of the owners must be at least sixty-five
years of age as of that date and the property must serve as the primary
residence of that owner]. For the two thousand--two thousand one school
year, eligibility for the exemption shall be based upon age as of Decem-
ber thirty-first, two thousand. For each subsequent school year, the
applicable date shall be advanced by one year.
(ii) [The term "siblings" as used herein shall have the same meaning
as set forth in section four hundred sixty-seven of this article.
(iii)] In the case of property owned by [husband and wife, one of
whom] A MARRIED COUPLE, IF ONLY ONE OF THE SPOUSES is sixty-five years
of age or over, the exemption, once granted, shall not be rescinded
solely because of the death of the older spouse so long as the surviving
spouse is at least sixty-two years of age as of the date specified in
this paragraph.
§ 3. The opening paragraph of subparagraph (i) of paragraph (b) of
subdivision 4 of section 425 of the real property tax law, as amended by
section 3 of part E of chapter 83 of the laws of 2002, is amended to
read as follows:
The combined income of all of the owners WHO PRIMARILY RESIDE ON THE
PROPERTY, and of any owners' spouses PRIMARILY residing on the [prem-
ises] PROPERTY, may not exceed the applicable income standard specified
herein.
S. 3009--C 76 A. 3009--C
§ 4. Subparagraph (ii) of paragraph (b) of subdivision 4 of section
425 of the real property tax law, as amended by section 1 of part B of
chapter 59 of the laws of 2018, is amended to read as follows:
(ii) The term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on the applicant's
federal or state income tax return for the applicable income tax year,
subject to any subsequent amendments or revisions, reduced by distrib-
utions, to the extent included in federal adjusted gross income,
received from an individual retirement account and an individual retire-
ment annuity; provided that if no such return was filed for the applica-
ble income tax year, "income" shall mean the [adjusted gross income]
AMOUNT that would have been so reported if such a return had been filed.
Provided further, that [effective]:
(A) EFFECTIVE with exemption applications for final assessment rolls
to be completed in two thousand nineteen, where an income-eligibility
determination is wholly or partly based upon the income of one or more
individuals who did not file a return for the applicable income tax
year, then in order for the application to be considered complete, each
such individual must file a statement with the department showing the
source or sources of [his or her] SUCH INDIVIDUAL'S income for that
income tax year, and the amount or amounts thereof, that would have been
reported on such a return if one had been filed. Such statement shall be
filed at such time, and in such form and manner, as may be prescribed by
the department, and shall be subject to the secrecy provisions of the
tax law to the same extent that a personal income tax return would be.
The department shall make such forms and instructions available for the
filing of such statements. The local assessor shall upon the request of
a taxpayer assist such taxpayer in the filing of the statement with the
department.
(B) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBPARAGRAPH,
WHERE PROPERTY IS OWNED SOLELY BY A PERSON OR PERSONS WHO RECEIVED THE
EXEMPTION FOR THREE CONSECUTIVE YEARS WITHOUT HAVING FILED RETURNS FOR
THE APPLICABLE INCOME TAX YEARS, BUT WHO DEMONSTRATED THEIR ELIGIBILITY
FOR THE EXEMPTION TO THE COMMISSIONER'S SATISFACTION BY FILING STATE-
MENTS PURSUANT TO CLAUSE (A) OF THIS SUBPARAGRAPH, SUCH PERSON OR
PERSONS SHALL BE PRESUMED TO SATISFY THE APPLICABLE INCOME-ELIGIBILITY
REQUIREMENTS EACH YEAR THEREAFTER AND SHALL NOT BE REQUIRED TO CONTINUE
TO FILE SUCH STATEMENTS IN THE ABSENCE OF A SPECIFIC REQUEST THEREFOR
FROM THE COMMISSIONER. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO
PREVENT THE COMMISSIONER FROM DENYING AN EXEMPTION PURSUANT TO THIS
SECTION WHEN THE COMMISSIONER DETERMINES THAT A PROPERTY OWNER HAS A
SOURCE OF INCOME THAT RENDERS THAT OWNER INELIGIBLE FOR THAT EXEMPTION.
§ 5. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of
subdivision 4 of section 425 of the real property tax law are REPEALED
and a new clause (C) is added to read as follows:
(C) WHEN THE COMMISSIONER DETERMINES THAT PROPERTY IS INELIGIBLE FOR A
STAR EXEMPTION, NOTICE OF SUCH DETERMINATION AND AN OPPORTUNITY FOR
REVIEW THEREOF SHALL BE PROVIDED IN THE MANNER SET FORTH IN SUBDIVISION
FOUR-B OF THIS SECTION.
§ 6. Section 425 of the real property tax law is amended by adding a
new subdivision 4-b to read as follows:
4-B. AUTHORITY OF THE COMMISSIONER IN RELATION TO ELIGIBILITY DETERMI-
NATIONS. (A) (I) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
CONTRARY, IT SHALL BE THE RESPONSIBILITY OF THE COMMISSIONER TO DETER-
MINE ELIGIBILITY FOR THE BASIC AND ENHANCED STAR EXEMPTIONS AUTHORIZED
BY THIS SECTION, IN CONSULTATION WITH LOCAL ASSESSORS AS NECESSARY.
S. 3009--C 77 A. 3009--C
(II) THE COMMISSIONER'S ELIGIBILITY DETERMINATIONS SHALL BE BASED UPON
DATA THE COMMISSIONER HAS OBTAINED FROM LOCAL ASSESSMENT ROLLS, PERSONAL
INCOME TAX RETURNS, THE STAR REGISTRATION PROGRAM, THE STAR INCOME
VERIFICATION PROGRAM AND SUCH OTHER DATA SOURCES AS MAY BE AVAILABLE TO
THE COMMISSIONER.
(III) THE PROCESS FOLLOWED BY THE COMMISSIONER TO VERIFY ELIGIBILITY
FOR THE BASIC AND ENHANCED STAR EXEMPTIONS SHALL BE THE SAME, EXCEPT TO
THE EXTENT THAT DIFFERENCES ARE REQUIRED BY LAW.
(B) IF THE COMMISSIONER SHOULD DETERMINE THAT A PARCEL THAT HAS A
BASIC STAR EXEMPTION IS ELIGIBLE FOR AN ENHANCED STAR EXEMPTION, THE
COMMISSIONER SHALL SO NOTIFY THE ASSESSOR. THE ASSESSOR SHALL THEREUPON
GRANT THE PARCEL AN ENHANCED STAR EXEMPTION WITHOUT REQUESTING A NEW
APPLICATION FROM THE OWNER.
(C) IF THE COMMISSIONER DETERMINES THAT PROPERTY IS NOT ELIGIBLE FOR A
STAR EXEMPTION IT HAS BEEN RECEIVING, THE PROVISIONS OF THIS SUBDIVISION
SHALL BE APPLICABLE.
(I) THE COMMISSIONER SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND
AN OPPORTUNITY TO SHOW THE COMMISSIONER THAT THE PROPERTY IS ELIGIBLE TO
RECEIVE THE EXEMPTION. IF THE OWNERS FAIL TO RESPOND TO SUCH NOTICE
WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, OR IF THEIR RESPONSE
DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION THAT THE PROPERTY IS
ELIGIBLE FOR THE EXEMPTION, THE COMMISSIONER SHALL DIRECT THE ASSESSOR
OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL TO REMOVE OR DENY THE EXEMPTION, AND TO CORRECT THE ROLL ACCORDING-
LY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON
HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL
BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION
OR APPROVAL.
(II) NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE
AUTHORITY TO CONSIDER AN OBJECTION TO THE REMOVAL OR DENIAL OF AN
EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE
REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE
OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE
CHALLENGED BEFORE THE DEPARTMENT OF TAXATION AND FINANCE. IF A TAXPAYER
IS DISSATISFIED WITH THE DEPARTMENT'S FINAL DETERMINATION, THE TAXPAYER
MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX
SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH
APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE
DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE STATE BOARD
OF REAL PROPERTY TAX SERVICES' DETERMINATION, THE TAXPAYER MAY SEEK
JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO
CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE
PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER,
THE DEPARTMENT OF TAXATION AND FINANCE, THE STATE BOARD OF REAL PROPERTY
TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF
THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION.
§ 7. The section heading of section 171-u of the tax law, as added by
section 2 of part FF of chapter 57 of the laws of 2010, is amended to
read as follows:
Verification of [income] eligibility for [basic] STAR exemption.
§ 8. Subdivisions 1, 2, 3 and 4 of section 171-u of the tax law are
REPEALED, subdivision 5 is renumbered subdivision 2, and a new subdivi-
sion 1 is added to read as follows:
S. 3009--C 78 A. 3009--C
(1) THE COMMISSIONER SHALL VERIFY THE ELIGIBILITY OF PROPERTIES FOR
STAR EXEMPTIONS IN THE MANNER PROVIDED BY SECTION FOUR HUNDRED TWENTY-
FIVE OF THE REAL PROPERTY TAX LAW.
§ 9. Subparagraphs (B) and (E) of paragraph 1 of subsection (eee) of
section 606 of the tax law, subparagraph (B) as amended by section 10 of
part B of chapter 59 of the laws of 2018 and subparagraph (E) as amended
by section 2 of part H of chapter 59 of the laws of 2017, are amended to
read as follows:
(B) (I) "Affiliated income" shall mean [for purposes of the basic STAR
credit,] the combined income of all of the owners of the parcel who
resided primarily thereon as of [December thirty-first] JULY FIRST of
the taxable year, and of any owners' spouses residing primarily thereon
as of such date[, and for purposes of the enhanced STAR credit, the
combined income of all of the owners of the parcel as of December thir-
ty-first of the taxable year, and of any owners' spouses residing prima-
rily thereon as of such date; provided that for both purposes]; PROVIDED
THAT the income to be so combined shall be the "adjusted gross income"
for the taxable year as reported for federal income tax purposes, or
that would be reported as adjusted gross income if a federal income tax
return were required to be filed, reduced by distributions, to the
extent included in federal adjusted gross income, received from an indi-
vidual retirement account and an individual retirement annuity.
(II) For taxable years beginning on and after January first, two thou-
sand nineteen, where an income-eligibility determination is wholly or
partly based upon the income of one or more individuals who did not file
a return pursuant to section six hundred fifty-one of this article for
the applicable income tax year, then in order to be eligible for the
credit authorized by this subsection, each such individual must file a
statement with the department showing the source or sources of [his or
her] SUCH INDIVIDUAL'S income for that income tax year, and the amount
or amounts thereof, that would have been reported on such a return if
one had been filed. Such statement shall be filed at such time, and in
such form and manner, as may be prescribed by the department, and shall
be subject to the provisions of section six hundred ninety-seven of this
article to the same extent that a return would be. The department shall
make such forms and instructions available for the filing of such state-
ments. The local assessor shall upon the request of a taxpayer assist
such taxpayer in the filing of the statement with the department.
[Provided further, that if the qualified taxpayer was an owner of the
property during the taxable year but did not own it on December thirty-
first of the taxable year, then the determination as to whether the
income of an individual should be included in "affiliated income" shall
be based upon the ownership and/or residency status of that individual
as of the first day of the month during which the qualified taxpayer
ceased to be an owner of the property, rather than as of December thir-
ty-first of the taxable year.]
(III) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBPARAGRAPH,
WHERE PROPERTY IS OWNED SOLELY BY A PERSON OR PERSONS WHO RECEIVED THE
CREDIT FOR THREE CONSECUTIVE YEARS WITHOUT HAVING FILED RETURNS FOR THE
APPLICABLE INCOME TAX YEARS, BUT WHO DEMONSTRATED THEIR ELIGIBILITY FOR
THE CREDIT TO THE COMMISSIONER'S SATISFACTION BY FILING STATEMENTS
PURSUANT TO CLAUSE (II) OF THIS SUBPARAGRAPH, SUCH PERSON OR PERSONS
SHALL BE PRESUMED TO SATISFY THE APPLICABLE INCOME-ELIGIBILITY REQUIRE-
MENTS EACH YEAR THEREAFTER AND SHALL NOT BE REQUIRED TO CONTINUE TO FILE
SUCH STATEMENTS IN THE ABSENCE OF A SPECIFIC REQUEST THEREFOR FROM THE
COMMISSIONER. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO PREVENT THE
S. 3009--C 79 A. 3009--C
COMMISSIONER FROM DENYING A CREDIT PURSUANT TO THIS SUBSECTION WHEN THE
COMMISSIONER DETERMINES THAT A PROPERTY OWNER HAS A SOURCE OF INCOME
THAT RENDERS THAT OWNER TEMPORARILY OR PERMANENTLY INELIGIBLE FOR THAT
CREDIT.
(E) "Qualifying taxes" means the school district taxes that were OR
ARE TO BE levied upon the taxpayer's primary residence for the associ-
ated fiscal year [that were actually paid by the taxpayer during the
taxable year]; or, in the case of a city school district that is subject
to article fifty-two of the education law, the combined city and school
district taxes that were OR ARE TO BE levied upon the taxpayer's primary
residence for the associated fiscal year [that were actually paid by the
taxpayer during the taxable year]. Provided, however, that in the case
of a cooperative apartment, "qualifying taxes" means the school district
taxes that would have been levied upon the tenant-stockholder's primary
residence if it were separately assessed, as determined by the commis-
sioner based on the statement provided by the assessor pursuant to
subparagraph (ii) of paragraph (k) of subdivision two of section four
hundred twenty-five of the real property tax law, or in the case of a
cooperative apartment corporation that is described in subparagraph (iv)
of paragraph (k) of subdivision two of section four hundred twenty-five
of the real property tax law, one third of such amount. In no case shall
the term "qualifying taxes" be construed to include penalties or inter-
est.
§ 10. Paragraph 2 of subsection (eee) of section 606 of the tax law is
REPEALED.
§ 11. The opening paragraph and clause (i) of subparagraph (A) of
paragraph 4 of subsection (eee) of section 606 of the tax law, as
amended by section 8 of part A of chapter 73 of the laws of 2016, are
amended to read as follows:
Beginning with taxable years after two thousand [fifteen] TWENTY-FOUR,
an enhanced STAR credit shall be available to a qualified taxpayer where
both of the following conditions are satisfied:
(i) [All] AT LEAST ONE of the owners of the parcel that serves as the
taxpayer's primary residence [are] IS at least sixty-five years of age
as of December thirty-first of the taxable year [or, in the case of
property owned by a married couple or by siblings, at least one of the
owners is at least sixty-five years of age as of that date. The terms
"siblings" as used herein shall have the same meaning as set forth in
section four hundred sixty-seven of the real property tax law]. In the
case of property owned by a married couple, [one of whom] IF ONLY ONE OF
THE SPOUSES is sixty-five years of age or over, the credit, once
allowed, shall not be disallowed because of the death of the older
spouse so long as the surviving spouse is at least sixty-two years of
age as of December thirty-first of the taxable year.
§ 12. Subsection (eee) of section 606 of the tax law is amended by
adding a new paragraph 14 to read as follows:
(14) THE PROCESS EMPLOYED BY THE COMMISSIONER IN VERIFYING ELIGIBILITY
FOR THE BASIC STAR CREDIT SHALL BE THE SAME AS FOR THE ENHANCED STAR
CREDIT, EXCEPT TO THE EXTENT THAT DIFFERENCES ARE REQUIRED BY LAW.
§ 13. This act shall take effect immediately; provided, however, that
sections two, three, five, six, seven, eight, eleven and twelve of this
act shall take effect January 1, 2026; and the amendments to clause (i)
of subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of
the tax law made by section nine of this act shall take effect January
1, 2026.
S. 3009--C 80 A. 3009--C
PART P
Intentionally Omitted
PART Q
Intentionally Omitted
PART R
Section 1. Subdivision (a) of section 213-a of the tax law, as amended
by chapter 166 of the laws of 1991, is amended to read as follows:
(a) Requirement of declaration.--Every taxpayer subject to the tax
imposed by section two hundred nine of this [chapter] ARTICLE shall make
a declaration of its estimated tax for the current privilege period,
containing such information as the commissioner of taxation and finance
may prescribe by regulations or instructions, if such estimated tax can
reasonably be expected to exceed one thousand dollars FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, OR FIVE THOU-
SAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX. If a taxpayer is subject to the tax surcharge
imposed under section two hundred nine-B of this article and such
taxpayer's estimated tax under section two hundred nine of this article
can reasonably be expected to exceed one thousand dollars FOR TAXABLE
YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, OR FIVE
THOUSAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX, such taxpayer shall also make a declaration of
its estimated tax surcharge for the current privilege period.
§ 2. Subdivision (a) of section 213-b of the tax law, as amended by
section 4 of part Z of chapter 59 of the laws of 2019, is amended to
read as follows:
(a) First installments for certain taxpayers.--In privilege periods of
twelve months ending at any time during the calendar year nineteen
hundred seventy and thereafter, every taxpayer subject to the tax
imposed by section two hundred nine of this [chapter] ARTICLE must pay
with the report required to be filed for the preceding privilege period,
or with an application for extension of the time for filing the report,
for taxable years beginning before January first, two thousand sixteen,
and must pay on or before the fifteenth day of the third month of such
privilege periods, for taxable years beginning on or after January
first, two thousand sixteen, an amount equal to (i) twenty-five percent
of the second preceding year's tax if the second preceding year's tax
exceeded one thousand dollars FOR TAXABLE YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, OR FIVE THOUSAND DOLLARS FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, but
was equal to or less than one hundred thousand dollars, or (ii) forty
percent of the second preceding year's tax if the second preceding
year's tax exceeded one hundred thousand dollars. If the second preced-
ing year's tax under section two hundred nine of this [chapter] ARTICLE
exceeded one thousand dollars FOR TAXABLE YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, OR FIVE THOUSAND DOLLARS FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, and
the taxpayer is subject to the tax surcharge imposed by section two
hundred nine-B of this [chapter] ARTICLE, the taxpayer must also pay
S. 3009--C 81 A. 3009--C
with the tax surcharge report required to be filed for the second
preceding privilege period, or with an application for extension of the
time for filing the report, for taxable years beginning before January
first, two thousand sixteen, and must pay on or before the fifteenth day
of the third month of such privilege periods, for taxable years begin-
ning on or after January first, two thousand sixteen, an amount equal to
(i) twenty-five percent of the tax surcharge imposed for the second
preceding year if the second preceding year's tax was equal to or less
than one hundred thousand dollars, or (ii) forty percent of the tax
surcharge imposed for the second preceding year if the second preceding
year's tax exceeded one hundred thousand dollars. Provided, however,
that every taxpayer that is a New York S corporation must pay with the
report required to be filed for the preceding privilege period, or with
an application for extension of the time for filing the report, an
amount equal to (i) twenty-five percent of the preceding year's tax if
the preceding year's tax exceeded one thousand dollars FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, OR FIVE THOU-
SAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, but was equal to or less than one hundred thousand
dollars, or (ii) forty percent of the preceding year's tax if the
preceding year's tax exceeded one hundred thousand dollars.
§ 3. This act shall take effect immediately.
PART S
Section 1. Section 606 of the tax law is amended by adding a new
subsection (ttt) to read as follows:
(TTT) ORGAN DONATION CREDIT. (1) FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, A FULL-YEAR RESIDENT
TAXPAYER WHO, WHILE LIVING, DONATES ONE OR MORE OF THEIR HUMAN ORGANS TO
ANOTHER HUMAN BEING FOR HUMAN ORGAN TRANSPLANTATION WILL BE ALLOWED A
CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE IN THE AMOUNT SPECIFIED
IN PARAGRAPH TWO OF THIS SUBSECTION. FOR PURPOSES OF THIS PARAGRAPH,
"HUMAN ORGAN" MEANS ALL OR PART OF A LIVER, PANCREAS, KIDNEY, INTESTINE,
LUNG, OR BONE MARROW.
(2) A TAXPAYER MAY CLAIM THE CREDIT ALLOWED UNDER THIS SUBSECTION ONLY
ONCE AND IN THE TAXABLE YEAR IN WHICH THE HUMAN ORGAN TRANSPLANTATION
OCCURS. SUCH CREDIT MAY BE CLAIMED, IN AN AMOUNT NOT TO EXCEED TEN THOU-
SAND DOLLARS, FOR ONLY THE FOLLOWING UNREIMBURSED EXPENSES THAT ARE
INCURRED BY THE TAXPAYER AND RELATED TO THE TAXPAYER'S ORGAN DONATION:
(A) TRAVEL EXPENSES;
(B) LODGING EXPENSES; AND
(C) LOST WAGES.
PROVIDED, HOWEVER, THAT THIS CREDIT SHALL NOT APPLY TO ANY ORGAN
DONATION FOR WHICH THE TAXPAYER HAS RECEIVED BENEFITS UNDER SECTION
FORTY-THREE HUNDRED SEVENTY-ONE OF THE PUBLIC HEALTH LAW.
(3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 2. Paragraph 38 of subsection (c) of section 612 of the tax law, as
added by chapter 565 of the laws of 2006, the opening paragraph as
amended by chapter 814 of the laws of 2022, is amended to read as
follows:
S. 3009--C 82 A. 3009--C
(38) [An] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, AN amount of up to ten thousand dollars if a taxpayer,
while living, donates one or more of [his or her] THE TAXPAYER'S human
organs to another human being for human organ transplantation. For
purposes of this paragraph, "human organ" means all or part of a liver,
pancreas, kidney, intestine, lung, or bone marrow. A subtract modifica-
tion allowed under this paragraph shall be claimed in the taxable year
in which the human organ transplantation occurs. Provided, however, that
this deduction shall not apply to any donation for which the taxpayer
has received benefits under section forty-three hundred seventy-one of
the public health law.
(A) A taxpayer shall claim the subtract modification allowed under
this paragraph only once and such subtract modification shall be claimed
for only the following unreimbursed expenses which are incurred by the
taxpayer and related to the taxpayer's organ donation:
(i) travel expenses;
(ii) lodging expenses; and
(iii) lost wages.
(B) The subtract modification allowed under this paragraph shall not
be claimed by a part-year resident or a non-resident of this state.
§ 3. This act shall take effect immediately.
PART T
Section 1. Paragraph 3 of subsection (a) of section 954 of the tax
law, as amended by section 1 of part F of chapter 59 of the laws of
2019, is amended to read as follows:
(3) Increased by the amount of any taxable gift under section 2503 of
the internal revenue code not otherwise included in the decedent's
federal gross estate, made during the three year period ending on the
decedent's date of death, but not including any gift made: (A) when the
decedent was not a resident of New York state; or (B) before April
first, two thousand fourteen; or (C) between January first, two thousand
nineteen and January fifteenth, two thousand nineteen; or (D) that is
real or tangible personal property having an actual situs outside New
York state at the time the gift was made. Provided, however that this
paragraph shall not apply to the estate of a decedent dying on or after
January first, two thousand [twenty-six.] THIRTY-TWO. THE AMOUNT BY
WHICH THE TOTAL TAX IMPOSED UNDER THIS ARTICLE EXCEEDS THE TOTAL TAX
THAT WOULD HAVE BEEN IMPOSED UNDER THIS ARTICLE IF THIS PARAGRAPH DID
NOT APPLY SHALL BE TREATED AS AN OBLIGATION OF THE DECEDENT AS OF THE
DECEDENT'S DEATH THAT IS SUBJECT TO THE PROVISIONS OF THIS ARTICLE (BUT
WHICH SHALL NOT BE DEDUCTIBLE FOR PURPOSES OF THIS ARTICLE).
§ 2. This act shall take effect immediately.
PART U
Section 1. Paragraphs (c) and (d) of subdivision 12 of section 210-B
of the tax law, as added by section 17 of part A of chapter 59 of the
laws of 2014, are amended to read as follows:
(c) Amount of credit. Except as provided in paragraph (d) of this
subdivision, the amount of credit FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE shall be thirty-five percent of
the first six thousand dollars in qualified first-year wages earned by
each qualified employee AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST FIVE THOUSAND
S. 3009--C 83 A. 3009--C
DOLLARS IN QUALIFIED FIRST-YEAR WAGES EARNED BY EACH QUALIFIED EMPLOYEE.
"Qualified first-year wages" means wages paid or incurred by the taxpay-
er during the taxable year to qualified employees which are attribut-
able, with respect to any such employee, to services rendered during the
one-year period beginning with the day the employee begins work for the
taxpayer.
(d) Credit where federal work opportunity tax credit applies. With
respect to any qualified employee whose qualified first-year wages under
paragraph (c) of this subdivision also constitute qualified first-year
wages for purposes of the work opportunity tax credit for vocational
rehabilitation referrals under section fifty-one of the internal revenue
code, the amount of credit under this subdivision FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE shall be thir-
ty-five percent of the first six thousand dollars in qualified second-
year wages earned by each such employee AND FOR TAXABLE YEARS BEGINNING
ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST
FIVE THOUSAND DOLLARS IN QUALIFIED SECOND-YEAR WAGES EARNED BY EACH
QUALIFIED EMPLOYEE. "Qualified second-year wages" means wages paid or
incurred by the taxpayer during the taxable year to qualified employees
which are attributable, with respect to any such employee, to services
rendered during the one-year period beginning one year after the employ-
ee begins work for the taxpayer.
§ 2. Paragraphs 3 and 4 of subsection (o) of section 606 of the tax
law, as added by chapter 142 of the laws of 1997, are amended to read as
follows:
(3) Amount of credit. Except as provided in paragraph four of this
subsection, the amount of credit FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE shall be thirty-five percent of
the first six thousand dollars in qualified first-year wages earned by
each qualified employee AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST FIVE THOUSAND
DOLLARS IN QUALIFIED FIRST-YEAR WAGES EARNED BY EACH QUALIFIED EMPLOYEE.
"Qualified first-year wages" means wages paid or incurred by the taxpay-
er during the taxable year to qualified employees which are attribut-
able, with respect to any such employee, to services rendered during the
one-year period beginning with the day the employee begins work for the
taxpayer.
(4) Credit where federal work opportunity tax credit applies. With
respect to any qualified employee whose qualified first-year wages under
paragraph three of this subsection also constitute qualified first-year
wages for purposes of the work opportunity tax credit for vocational
rehabilitation referrals under section fifty-one of the internal revenue
code, the amount of credit under this subsection shall be FOR TAXABLE
YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE thirty-
five percent of the first six thousand dollars in qualified second-year
wages earned by each such employee AND FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST FIVE
THOUSAND DOLLARS IN QUALIFIED SECOND-YEAR WAGES EARNED BY EACH QUALIFIED
EMPLOYEE. "Qualified second-year wages" means wages paid or incurred by
the taxpayer during the taxable year to qualified employees which are
attributable, with respect to any such employee, to services rendered
during the one-year period beginning one year after the employee begins
work for the taxpayer.
§ 3. This act shall take effect immediately.
PART V
S. 3009--C 84 A. 3009--C
Section 1. This Part enacts into law major components of legislation
relating to the reporting of federal partnership audit adjustments. Each
component is wholly contained within a Subpart identified as Subpart A
and Subpart B. 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 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 Subpart in which it is found. Section three of this Part
sets forth the general effective date of this Part.
SUBPART A
Section 1. Subdivision 3 of section 211 of the tax law, as amended by
section 19 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
3. If the amount of taxable income for any year of any taxpayer
(including any taxpayer which has elected to be taxed under subchapter s
of chapter one of the internal revenue code), as returned to the United
States treasury department is changed or corrected by the commissioner
of internal revenue or other officer of the United States or other
competent authority, or where a renegotiation of a contract or subcon-
tract with the United States results in a change in taxable income, such
taxpayer shall report such changed or corrected taxable income, or the
results of such renegotiation, within ninety days (or one hundred twenty
days, in the case of a taxpayer making a combined report under this
article for such year) after the final determination of such change or
correction or renegotiation, or as required by the commissioner, and
shall concede the accuracy of such determination or state wherein it is
erroneous. PROVIDED HOWEVER, IF THE TAXPAYER IS A DIRECT OR INDIRECT
PARTNER OF A PARTNERSHIP REQUIRED TO REPORT ADJUSTMENTS IN ACCORDANCE
WITH SECTION SIX HUNDRED FIFTY-NINE-A OF THIS CHAPTER, SUCH TAXPAYER
SHALL ALSO REPORT SUCH ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX
HUNDRED FIFTY-NINE-A OF THIS CHAPTER. The allowance of a tentative
carryback adjustment based upon a net operating loss carryback or net
capital loss carryback pursuant to section sixty-four hundred eleven of
the internal revenue code, as amended, shall be treated as a final
determination for purposes of this subdivision. Any taxpayer filing an
amended return with such department shall also file within ninety days
(or one hundred twenty days, in the case of a taxpayer making a combined
report under this article for such year) thereafter an amended report
with the commissioner.
§ 2. Subsection (b) of section 653 of the tax law, as added by chapter
563 of the laws of 1960, is amended to read as follows:
(b) Partnerships. Any return, statement or other document required of
a partnership shall be signed by one or more partners. The fact that a
partner's name is signed to a return, statement, or other document,
shall be prima facie evidence for all purposes that such partner is
authorized to sign on behalf of the partnership.
(1) IF A PARTNERSHIP IS REQUIRED TO REPORT FEDERAL ADJUSTMENTS ARISING
FROM A PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST
PURSUANT TO SECTION SIX HUNDRED FIFTY-NINE-A OF THIS PART, THE PARTNER-
SHIP'S FEDERAL PARTNERSHIP REPRESENTATIVE IS THE NEW YORK PARTNERSHIP
REPRESENTATIVE UNLESS THE PARTNERSHIP DESIGNATES, IN A MANNER DETERMINED
S. 3009--C 85 A. 3009--C
BY THE COMMISSIONER, THAT ANOTHER PERSON SHALL ACT ON BEHALF OF THE
PARTNERSHIP.
(2) THE NEW YORK PARTNERSHIP REPRESENTATIVE SHALL HAVE THE SOLE
AUTHORITY TO ACT ON BEHALF OF THE PARTNERSHIP AND ITS DIRECT AND INDI-
RECT PARTNERS SHALL BE BOUND BY THESE ACTIONS.
§ 3. Section 659 of the tax law, as amended by section 8 of part J of
chapter 59 of the laws of 2014, is amended to read as follows:
§ 659. Report of federal changes, corrections or disallowances. If the
amount of a taxpayer's federal taxable income, total taxable amount or
ordinary income portion of a lump sum distribution or includible gain of
a trust reported on [his] THEIR federal income tax return for any taxa-
ble year, or the amount of a taxpayer's earned income credit or credit
for employment-related expenses set forth on such return, or the amount
of any federal foreign tax credit affecting the calculation of the cred-
it for Canadian provincial taxes under section six hundred twenty or six
hundred twenty-A of this article, or the amount of any claim of right
adjustment, is changed or corrected by the United States internal reven-
ue service or other competent authority or as the result of a renegoti-
ation of a contract or subcontract with the United States, or the amount
an employer is required to deduct and withhold from wages for federal
income tax withholding purposes is changed or corrected by such service
or authority or if a taxpayer's claim for credit or refund of federal
income tax is disallowed in whole or in part, the taxpayer or employer
shall report such change or correction or disallowance within ninety
days after the final determination of such change, correction, renegoti-
ation or disallowance, or as otherwise required by the commissioner, and
shall concede the accuracy of such determination or state wherein it is
erroneous. PROVIDED, HOWEVER, IF THE TAXPAYER IS A DIRECT OR INDIRECT
PARTNER OF A PARTNERSHIP REQUIRED TO REPORT ADJUSTMENTS IN ACCORDANCE
WITH SECTION SIX HUNDRED FIFTY-NINE-A OF THIS PART, SUCH TAXPAYER SHALL
ALSO REPORT SUCH ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX HUNDRED
FIFTY-NINE-A OF THIS PART. The allowance of a tentative carryback
adjustment based upon a net operating loss carryback pursuant to section
sixty-four hundred eleven of the internal revenue code shall be treated
as a final determination for purposes of this section. Any taxpayer
filing an amended federal income tax return and any employer filing an
amended federal return of income tax withheld shall also file within
ninety days thereafter an amended return under this article, and shall
give such information as the commissioner may require. The commissioner
may by regulation prescribe such exceptions to the requirements of this
section as [he or she deems] THEY DEEM appropriate. For purposes of this
section, (i) the term "taxpayer" shall include a partnership having a
resident partner or having any income derived from New York sources, and
a corporation with respect to which the taxable year of such change,
correction, disallowance or amendment is a year with respect to which
the election provided for in subsection (a) of section six hundred sixty
of this article is in effect, and (ii) the term "federal income tax
return" shall include the returns of income required under sections six
thousand thirty-one and six thousand thirty-seven of the internal reven-
ue code. In the case of such a corporation, such report shall also
include any change or correction of the taxes described in paragraphs
two and three of subsection (f) of section thirteen hundred sixty-six of
the internal revenue code. Reports made under this section by a partner-
ship or corporation shall indicate the portion of the change in each
item of income, gain, loss or deduction (and, in the case of a corpo-
ration, of each change in, or disallowance of a claim for credit or
S. 3009--C 86 A. 3009--C
refund of, a tax referred to in the preceding sentence) allocable to
each partner or shareholder and shall set forth such identifying infor-
mation with respect to such partner or shareholder as may be prescribed
by the commissioner.
§ 4. The tax law is amended by adding a new section 659-a to read as
follows:
§ 659-A. REPORTING OF FEDERAL PARTNERSHIP ADJUSTMENTS. (A) IF ANY
ITEM REQUIRED TO BE SHOWN ON A FEDERAL PARTNERSHIP RETURN, FOR ANY PART-
NERSHIP THAT HAS A RESIDENT PARTNER OR ANY INCOME DERIVED FROM NEW YORK
SOURCES, INCLUDING ANY GROSS INCOME, GAIN, LOSS, DEDUCTION, PENALTY,
CREDIT, OR TAX FOR ANY YEAR OF SUCH PARTNERSHIP, INCLUDING ANY AMOUNT OF
ANY PARTNER'S DISTRIBUTIVE SHARE, IS CHANGED OR CORRECTED BY THE COMMIS-
SIONER OF INTERNAL REVENUE OR OTHER OFFICER OF THE UNITED STATES OR
OTHER COMPETENT AUTHORITY, AND THE PARTNERSHIP IS ISSUED AN ADJUSTMENT
UNDER SECTION SIXTY-TWO HUNDRED TWENTY-FIVE OF THE INTERNAL REVENUE CODE
OR MAKES A FEDERAL ELECTION FOR ALTERNATIVE PAYMENT WITH THE INTERNAL
REVENUE SERVICE AS PART OF A PARTNERSHIP LEVEL AUDIT, OR FILES AN ADMIN-
ISTRATIVE ADJUSTMENT REQUEST, THE PARTNERSHIP SHALL REPORT, IN THE
MANNER PRESCRIBED BY THE COMMISSIONER, EACH CHANGE OR CORRECTION IN
SUFFICIENT DETAIL TO ALLOW FOR THE COMPUTATION OF THE NEW YORK TAX
CHANGE OR CORRECTION FOR THE REVIEWED YEAR WITHIN NINETY DAYS AFTER THE
DATE OF EACH FINAL FEDERAL DETERMINATION, OR NINETY DAYS AFTER THE
FILING OF AN ADMINISTRATIVE ADJUSTMENT REQUEST.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "ADMINISTRATIVE ADJUSTMENT REQUEST" MEANS AN ADMINISTRATIVE
ADJUSTMENT REQUEST FILED BY A PARTNERSHIP UNDER SECTION SIXTY-TWO
HUNDRED TWENTY-SEVEN OF THE INTERNAL REVENUE CODE.
(2) "DIRECT PARTNER" MEANS A PARTNER THAT HOLDS AN INTEREST DIRECTLY
IN AN IMPACTED PARTNERSHIP DURING THE REVIEWED YEAR.
(3) "FEDERAL ELECTION FOR ALTERNATIVE PAYMENT" MEANS THE ELECTION
DESCRIBED IN SECTION SIXTY-TWO HUNDRED TWENTY-SIX OF THE INTERNAL REVEN-
UE CODE, RELATING TO ALTERNATIVE PAYMENT OF IMPUTED UNDERPAYMENT BY
PARTNERSHIP.
(4) "FINAL FEDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OF GROSS
INCOME, GAIN, LOSS, DEDUCTION, PENALTY, CREDIT, OR A PARTNER'S DISTRIBU-
TIVE SHARE, OF AN IMPACTED PARTNERSHIP DETERMINED UNDER SECTION SIXTY-
TWO HUNDRED TWENTY-FIVE OF THE INTERNAL REVENUE CODE THAT IS CONSIDERED
FIXED AND FINAL UNDER THE INTERNAL REVENUE CODE.
(5) "FINAL FEDERAL DETERMINATION DATE" MEANS THE DATE ON WHICH EACH
ADJUSTMENT OR RESOLUTION RESULTING FROM AN INTERNAL REVENUE SERVICE
EXAMINATION IS ASSESSED PURSUANT TO SECTION SIXTY-TWO HUNDRED THREE OF
THE INTERNAL REVENUE CODE.
(6) "IMPACTED PARTNERSHIP" MEANS A PARTNERSHIP THAT (I) WAS ISSUED A
FINAL FEDERAL ADJUSTMENT; OR (II) MADE A FEDERAL ELECTION FOR ALTERNA-
TIVE PAYMENT WITH THE INTERNAL REVENUE SERVICE AS PART OF A FEDERAL
PARTNERSHIP LEVEL AUDIT; OR (III) FILED AN ADMINISTRATIVE ADJUSTMENT
REQUEST WITH THE INTERNAL REVENUE SERVICE.
(7) "INDIRECT PARTNER" MEANS A PARTNER, MEMBER, OR SHAREHOLDER IN A
PARTNERSHIP OR OTHER PASS-THROUGH ENTITY THAT ITSELF HELD AN INTEREST
INDIRECTLY, OR THROUGH ANOTHER INDIRECT PARTNER, IN AN IMPACTED PARTNER-
SHIP DURING THE REVIEWED YEAR.
(8) "NEW YORK ELECTION FOR ALTERNATIVE PAYMENT" MEANS THE ELECTION
DESCRIBED IN PARAGRAPH THREE OF SUBSECTION (D) OF THIS SECTION, RELATING
TO PAYMENT BY THE IMPACTED PARTNERSHIP IN LIEU OF TAXES OWED BY ITS
DIRECT AND INDIRECT PARTNERS.
S. 3009--C 87 A. 3009--C
(9) "REVIEWED YEAR" HAS THE MEANING PROVIDED IN PARAGRAPH ONE OF
SUBSECTION (D) OF SECTION SIXTY-TWO HUNDRED TWENTY-FIVE OF THE INTERNAL
REVENUE CODE.
(10) "TIERED PARTNER" MEANS ANY PARTNER IN AN IMPACTED PARTNERSHIP
WHERE SUCH PARTNER IS A PARTNERSHIP, S CORPORATION, OR OTHER PASS-
THROUGH ENTITY FOR NEW YORK TAX PURPOSES.
(C) REPORTING ADJUSTMENTS TO FEDERAL TAXABLE INCOME. WHERE PARTNER-
SHIPS AND PARTNERS WERE REQUIRED TO REPORT FINAL FEDERAL ADJUSTMENTS OR
ADMINISTRATIVE ADJUSTMENT REQUESTS FOR FEDERAL PURPOSES BY TAKING SUCH
ADJUSTMENTS INTO ACCOUNT ON A TIMELY FILED AMENDED FEDERAL INCOME TAX
RETURN FOR THE REVIEWED YEAR, SUCH PARTNERSHIPS AND PARTNERS SHALL
REPORT AND PAY ANY NEW YORK TAX OWED UNDER ARTICLE NINE-A, TWENTY-TWO,
THIRTY-THREE, OR ANY LAW AUTHORIZED BY ARTICLE THIRTY OF THIS CHAPTER IN
THE SAME MANNER FOR THE REVIEWED YEAR. SUCH PARTNERSHIPS AND PARTNERS
SHALL REPORT FINAL FEDERAL ADJUSTMENTS ARISING FROM AN AUDIT OR OTHER
ACTION BY THE INTERNAL REVENUE SERVICE OR REPORTED BY THE TAXPAYER ON A
TIMELY FILED AMENDED FEDERAL INCOME TAX RETURN, INCLUDING A RETURN OR
OTHER SIMILAR REPORT FILED PURSUANT TO SECTION SIXTY-TWO HUNDRED TWEN-
TY-FIVE OF THE INTERNAL REVENUE CODE, OR FEDERAL CLAIM FOR REFUND BY
FILING A FEDERAL ADJUSTMENTS REPORT AND, IF APPLICABLE, SUCH PARTNER-
SHIPS AND PARTNERS SHALL PAY THE ADDITIONAL TAX DUE NO LATER THAN ONE
HUNDRED EIGHTY DAYS AFTER THE FINAL DETERMINATION DATE.
(D) REPORTING FEDERAL ADJUSTMENTS PURSUANT TO A PARTNERSHIP LEVEL
AUDIT AND ADMINISTRATIVE ADJUSTMENT REQUEST. EXCEPT FOR ADJUSTMENTS
REQUIRED TO BE REPORTED UNDER SUBSECTION (C) OF THIS SECTION, PARTNER-
SHIPS AND PARTNERS SHALL REPORT FINAL FEDERAL ADJUSTMENTS ARISING FROM A
PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST AND MAKE
PAYMENTS AS REQUIRED UNDER THIS SUBSECTION IN THE YEAR OF ADJUSTMENT.
(1) UNLESS A DE MINIMIS EXCEPTION APPLIES, IMPACTED PARTNERSHIPS
MUST REPORT ANY FINAL FEDERAL ADJUSTMENTS AND ADMINISTRATIVE ADJUSTMENT
REQUESTS REGARDLESS OF TAX IMPACT. SUCH REPORT MUST INCLUDE THE
IMPACTED PARTNERSHIP'S DIRECT AND INDIRECT PARTNER IDENTIFYING INFORMA-
TION AND ANY OTHER INFORMATION THE COMMISSIONER MAY REQUIRE.
(2) EXCEPT FOR THOSE SUBJECT TO A PROPERLY MADE ELECTION FOR ALTERNA-
TIVE PAYMENT UNDER PARAGRAPH THREE OF THIS SUBSECTION, ANY CHANGES OR
CORRECTIONS MADE BY THE INTERNAL REVENUE SERVICE PURSUANT TO SUCH A
FINAL FEDERAL ADJUSTMENT OR AS A RESULT OF AN ADMINISTRATIVE ADJUSTMENT
REQUEST MUST BE REPORTED BY THE IMPACTED PARTNERSHIP AS FOLLOWS:
(A) NO LATER THAN NINETY DAYS AFTER THE FINAL DETERMINATION DATE, THE
PARTNERSHIP SHALL:
(I) FILE A COMPLETED FEDERAL ADJUSTMENTS REPORT, INCLUDING ANY INFOR-
MATION AS REQUIRED BY THE COMMISSIONER;
(II) NOTIFY EACH OF ITS DIRECT PARTNERS OF THEIR DISTRIBUTIVE SHARE OF
THE FINAL FEDERAL ADJUSTMENT, INCLUDING ANY INFORMATION REQUIRED BY THE
COMMISSIONER;
(III) FILE AN AMENDED RETURN AS REQUIRED UNDER PARAGRAPH ONE OF
SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT AND SECTION SIX
HUNDRED FIFTY-NINE OF THIS ARTICLE FOR THE REVIEWED YEAR;
(IV) FILE AN AMENDED GROUP RETURN IF THE PARTNERSHIP ORIGINALLY FILED
A GROUP RETURN, AND REMIT THE ADDITIONAL AMOUNT THAT WOULD HAVE BEEN DUE
UNDER SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE
HAD THE FINAL FEDERAL ADJUSTMENTS BEEN PROPERLY REPORTED ORIGINALLY AS
REQUIRED; AND
(V) REMIT ANY ADDITIONAL AMOUNTS THAT WOULD HAVE BEEN DUE UNDER PARA-
GRAPH FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS
S. 3009--C 88 A. 3009--C
ARTICLE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN PROPERLY ORIGINALLY
REPORTED AS REQUIRED.
(B) NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL DETERMI-
NATION DATE, EACH DIRECT PARTNER OF AN IMPACTED PARTNERSHIP THAT IS
TAXED UNDER ARTICLE NINE-A, TWENTY-TWO, THIRTY-THREE, OR ANY LAW AUTHOR-
IZED BY ARTICLE THIRTY OF THIS CHAPTER, OTHER THAN A DIRECT PARTNER THAT
IS INCLUDED ON A GROUP RETURN UNDER CLAUSE (IV) OF SUBPARAGRAPH (A) OF
THIS PARAGRAPH, SHALL:
(I) FILE A FEDERAL ADJUSTMENTS REPORT REPORTING THEIR DISTRIBUTIVE
SHARE OF THE ADJUSTMENTS REPORTED TO THEM BY THE IMPACTED PARTNERSHIP
UNDER CLAUSE (II) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH; AND
(II) REMIT ANY ADDITIONAL AMOUNT OF TAX DUE, PLUS ANY PENALTY AND
INTEREST COMPUTED UNDER THIS ARTICLE BASED ON THE DUE DATE OF THE
ORIGINALLY FILED RETURN FOR THE REVIEWED YEAR, LESS ANY CREDIT FOR
AMOUNTS PAID OR WITHHELD AND REMITTED ON BEHALF OF THE DIRECT PARTNER.
(3) NEW YORK ELECTION FOR ALTERNATIVE PAYMENT BY THE PARTNERSHIP. AN
IMPACTED PARTNERSHIP MAKING AN ELECTION UNDER THIS SUBSECTION SHALL:
(A) NO LATER THAN NINETY DAYS AFTER THE FINAL DETERMINATION DATE, FILE
A COMPLETED FEDERAL ADJUSTMENTS REPORT, INCLUDING ANY INFORMATION AS
REQUIRED BY THE COMMISSIONER, AND PROVIDE NOTICE, IN THE MANNER REQUIRED
BY THE COMMISSIONER, THAT IT IS MAKING THE ELECTION UNDER THIS
SUBSECTION.
(B) NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL DETERMI-
NATION DATE, PAY AN AMOUNT, IN LIEU OF TAXES OWED BY ITS DIRECT AND
INDIRECT PARTNERS. SUCH AMOUNT SHALL BE DETERMINED BASED ON THE SUM OF
THE FOLLOWING:
(I) FOR DIRECT PARTNERS SUBJECT TO TAX PURSUANT TO ARTICLE NINE-A OR
THIRTY-THREE OF THIS CHAPTER IN THE REVIEWED YEAR, THE PARTNER'S
DISTRIBUTIVE SHARE OF GROSS INCOME OR GAIN AND DEDUCTION APPORTIONED TO
NEW YORK USING THE APPORTIONMENT RULES DESCRIBED IN ARTICLE NINE-A OF
THIS CHAPTER MULTIPLIED BY THE HIGHEST TAX RATE UNDER SUCH ARTICLE
NINE-A IN EFFECT FOR THE REVIEWED YEAR; AND
(II) FOR A DIRECT PARTNER SUBJECT TO TAX UNDER THIS ARTICLE THAT IS
TREATED AS A NONRESIDENT PURSUANT TO PARAGRAPH TWO OF SUBSECTION (B) OF
SECTION SIX HUNDRED FIVE OF THIS ARTICLE IN THE REVIEWED YEAR, THE PART-
NER'S DISTRIBUTIVE SHARE OF GROSS INCOME OR GAIN AND DEDUCTION ALLOCATED
TO NEW YORK USING THE ALLOCATION RULES DESCRIBED IN THIS ARTICLE MULTI-
PLIED BY THE HIGHEST TAX RATE UNDER THIS ARTICLE IN EFFECT FOR THE
REVIEWED YEAR; AND
(III) FOR A DIRECT PARTNER SUBJECT TO TAX UNDER THIS ARTICLE THAT IS
TREATED AS A RESIDENT PURSUANT TO PARAGRAPH ONE OF SUBSECTION (B) OF
SECTION SIX HUNDRED FIVE OF THIS ARTICLE IN THE REVIEWED YEAR, THE PART-
NER'S DISTRIBUTIVE SHARE OF GROSS INCOME OR GAIN AND DEDUCTION MULTI-
PLIED BY THE HIGHEST TAX RATE UNDER THIS ARTICLE IN EFFECT FOR THE
REVIEWED YEAR; AND
(IV) FOR A DIRECT PARTNER SUBJECT TO TAX UNDER ARTICLE THIRTY OF THIS
CHAPTER THAT IS TREATED AS A RESIDENT PURSUANT TO SUBSECTION (A) OF
SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER IN THE REVIEWED YEAR, THE
AMOUNT DESCRIBED IN CLAUSE (III) OF THIS SUBPARAGRAPH AND THE PARTNER'S
DISTRIBUTIVE SHARE OF GROSS INCOME OR GAIN AND DEDUCTION MULTIPLIED BY
THE HIGHEST TAX RATE UNDER SECTION THIRTEEN HUNDRED FOUR OF THIS CHAPTER
IN EFFECT FOR THE REVIEWED YEAR; AND
(V) FOR TIERED PARTNERS, INCLUDE THE SUM OF:
(I) THE AMOUNT OF GROSS INCOME, GAIN OR DEDUCTION FROM THE ADJUSTMENT
THAT WOULD ULTIMATELY FLOW TO A TAXPAYER SUBJECT TO TAX UNDER ARTICLE
NINE-A OR THIRTY-THREE OF THIS CHAPTER IN THE REVIEWED YEAR APPORTIONED
S. 3009--C 89 A. 3009--C
TO NEW YORK USING THE APPORTIONMENT RULES DESCRIBED IN ARTICLE NINE-A OF
THIS CHAPTER MULTIPLIED BY THE HIGHEST TAX RATE UNDER SUCH ARTICLE
NINE-A IN EFFECT FOR THE REVIEWED YEAR; AND
(II) THE AMOUNT OF GROSS INCOME, GAIN OR DEDUCTION FROM THE ADJUSTMENT
THAT WOULD ULTIMATELY FLOW TO A TAXPAYER SUBJECT TO TAX UNDER THIS ARTI-
CLE AND TREATED AS A NONRESIDENT PURSUANT TO PARAGRAPH TWO OF SUBSECTION
(B) OF SECTION SIX HUNDRED FIVE OF THIS ARTICLE IN THE REVIEWED YEAR
ALLOCATED TO NEW YORK USING THE ALLOCATION RULES DESCRIBED IN THIS ARTI-
CLE MULTIPLIED BY THE HIGHEST TAX RATE UNDER THIS ARTICLE IN EFFECT FOR
THE REVIEWED YEAR; AND
(III) THE AMOUNT OF GROSS INCOME, GAIN OR DEDUCTION FROM THE ADJUST-
MENT THAT WOULD ULTIMATELY FLOW TO A TAXPAYER SUBJECT TO TAX UNDER THIS
ARTICLE AND TREATED AS A RESIDENT PURSUANT TO PARAGRAPH ONE OF
SUBSECTION (B) OF SECTION SIX HUNDRED FIVE OF THIS ARTICLE IN THE
REVIEWED YEAR MULTIPLIED BY THE HIGHEST TAX RATE UNDER THIS ARTICLE IN
EFFECT FOR THE REVIEWED YEAR; AND
(IV) ANY AMOUNT OF GROSS INCOME, GAIN OR DEDUCTION FROM THE ADJUSTMENT
THAT CANNOT BE ESTABLISHED TO BE PROPERLY ALLOCABLE TO A TAXPAYER
DESCRIBED IN ITEMS (I) OR (II) OF THIS CLAUSE, MULTIPLIED BY THE HIGHEST
TAX RATE UNDER THIS ARTICLE IN EFFECT FOR THE REVIEWED YEAR; AND
(VI) ANY APPLICABLE PENALTY AND INTEREST AS REQUIRED BY THIS ARTICLE.
(4) TIERED PARTNERS. THE DIRECT AND INDIRECT PARTNERS OF AN IMPACTED
PARTNERSHIP THAT ARE TIERED PARTNERS, AND ALL OF THE PARTNERS OF THOSE
TIERED PARTNERS THAT ARE SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-
TWO, THIRTY-THREE, OR ANY LAW AUTHORIZED BY ARTICLE THIRTY OF THIS CHAP-
TER, ARE SUBJECT TO THE REPORTING AND PAYMENT REQUIREMENTS OF PARAGRAPH
TWO OF THIS SUBSECTION AND THE TIERED PARTNERS ARE ENTITLED TO MAKE THE
ELECTIONS PROVIDED IN PARAGRAPHS THREE AND FIVE OF THIS SUBSECTION. THE
TIERED PARTNERS OR THEIR PARTNERS SHALL MAKE ALL REQUIRED REPORTS AND
PAYMENTS NO LATER THAN NINETY DAYS AFTER THE TIME FOR FILING AND
FURNISHING STATEMENTS TO TIERED PARTNERS AND THEIR PARTNERS PURSUANT TO
SECTION SIXTY-TWO HUNDRED TWENTY-SIX OF THE INTERNAL REVENUE CODE AND
THE REGULATIONS THEREUNDER.
(5) MODIFIED REPORTING AND PAYMENT METHOD. IN THE MANNER REQUIRED BY
THE COMMISSIONER, AN IMPACTED PARTNERSHIP OR TIERED PARTNER MAY ENTER
INTO AN AGREEMENT WITH THE COMMISSIONER TO UTILIZE AN ALTERNATIVE
REPORTING AND PAYMENT METHOD, INCLUDING APPLICABLE TIME REQUIREMENTS OR
ANY OTHER PROVISION OF THIS SECTION, IF THE IMPACTED PARTNERSHIP OR
TIERED PARTNER DEMONSTRATES THAT THE REQUESTED METHOD WILL REASONABLY
PROVIDE FOR THE REPORTING AND PAYMENT OF TAXES, PENALTIES, AND INTEREST
DUE UNDER THE PROVISIONS OF THIS SECTION, OR IF THE IMPACTED PARTNERSHIP
OR TIERED PARTNER CAN SHOW THAT THEIR DIRECT PARTNERS HAVE AGREED TO
ALLOW A REFUND OF THE TAX TO THE ENTITY. APPLICATION FOR APPROVAL OF AN
ALTERNATIVE REPORTING AND PAYMENT METHOD MUST BE MADE BY THE IMPACTED
PARTNERSHIP OR TIERED PARTNER WITHIN THE TIME FOR ELECTION AS PROVIDED
IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, AS APPROPRIATE.
(6) EFFECT OF ELECTION BY IMPACTED PARTNERSHIP OR TIERED PARTNER AND
PAYMENT OF AMOUNT DUE. (A) THE ELECTION MADE PURSUANT TO PARAGRAPH
THREE OR FIVE OF THIS SUBSECTION IS IRREVOCABLE, UNLESS THE COMMISSION-
ER, IN THEIR DISCRETION, DETERMINES OTHERWISE.
(B) IF PROPERLY REPORTED AND PAID BY THE IMPACTED PARTNERSHIP OR
TIERED PARTNER, THE AMOUNT DETERMINED IN SUBPARAGRAPH (B) OF PARAGRAPH
THREE OF THIS SUBSECTION, OR SIMILARLY UNDER AN OPTIONAL ELECTION PURSU-
ANT TO PARAGRAPH FIVE OF THIS SUBSECTION, WILL BE TREATED AS A PAYMENT
IN LIEU OF TAXES OWED BY ITS DIRECT AND INDIRECT PARTNERS, TO THE EXTENT
APPLICABLE, ON THE SAME FINAL FEDERAL ADJUSTMENT. THE DIRECT PARTNERS OR
S. 3009--C 90 A. 3009--C
INDIRECT PARTNERS MAY NOT TAKE ANY DEDUCTION OR CREDIT FOR THIS AMOUNT
OR CLAIM A REFUND OF SUCH AMOUNT. PROVIDED, HOWEVER, THAT NOTHING IN
THIS PARAGRAPH SHALL PRECLUDE A RESIDENT DIRECT PARTNER FROM CLAIMING A
CREDIT AGAINST TAXES PAID TO THE COMMISSIONER PURSUANT TO ARTICLE TWEN-
TY-TWO OF THIS CHAPTER FOR ANY AMOUNTS PAID BY THE IMPACTED PARTNERSHIP
OR TIERED PARTNER ON SUCH RESIDENT PARTNER'S BEHALF TO ANOTHER STATE OR
LOCAL TAX JURISDICTION IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED TWENTY OF THIS ARTICLE.
(7) FAILURE OF IMPACTED PARTNERSHIP OR TIERED PARTNER TO REPORT OR
REMIT. NOTHING IN THIS SECTION SHALL PREVENT THE COMMISSIONER
FROM ASSESSING DIRECT OR INDIRECT PARTNERS FOR ANY TAXES DUE, USING THE
BEST INFORMATION AVAILABLE, IN THE EVENT THAT AN IMPACTED PARTNERSHIP,
OR A DIRECT OR INDIRECT PARTNER OF AN IMPACTED PARTNERSHIP, FAILS TO
TIMELY REPORT OR REMIT ANY REPORT OR ADDITIONAL TAXES DUE REQUIRED BY
THIS SECTION FOR ANY REASON.
(E) DE MINIMIS EXCEPTION. THE COMMISSIONER SHALL HAVE THE DISCRETION
TO PROMULGATE REGULATIONS TO ESTABLISH A DE MINIMIS AMOUNT UPON WHICH A
TAXPAYER SHALL NOT BE REQUIRED TO COMPLY WITH SUBSECTIONS (C) AND/OR (D)
OF THIS SECTION.
(F) ESTIMATED TAX PAYMENTS DURING THE COURSE OF A FEDERAL AUDIT. AN
IMPACTED PARTNERSHIP MAY MAKE ESTIMATED PAYMENTS OF THE TAX EXPECTED TO
RESULT FROM A PENDING INTERNAL REVENUE SERVICE AUDIT, PRIOR TO THE DUE
DATE OF THE FEDERAL ADJUSTMENTS REPORT AND PRIOR TO FILING THE REPORT
WITH THE COMMISSIONER. IF AN IMPACTED PARTNERSHIP MAKES AN ESTIMATED
PAYMENT UNDER THIS SUBSECTION, OTHER THAN AN ESTIMATED PAYMENT MADE
UNDER PARAGRAPH FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-
EIGHT OF THIS ARTICLE, SUCH ESTIMATED PAYMENT MUST BE ACCOMPANIED BY AN
IRREVOCABLE ELECTION UNDER PARAGRAPH THREE OF SUBSECTION (D) OF THIS
SECTION. THE ESTIMATED TAX PAYMENTS SHALL BE CREDITED AGAINST ANY TAX
LIABILITY ULTIMATELY FOUND TO BE DUE AND WILL LIMIT THE ACCRUAL OF
FURTHER STATUTORY INTEREST ON SUCH AMOUNT. IF THE ESTIMATED TAX PAYMENTS
EXCEED THE FINAL TAX LIABILITY AND STATUTORY INTEREST ULTIMATELY DETER-
MINED TO BE DUE, THE TAXPAYER IS ENTITLED TO A REFUND OR CREDIT OF THE
EXCESS, PROVIDED THE TAXPAYER FILES A FEDERAL ADJUSTMENTS REPORT OR
CLAIM FOR REFUND OR CREDIT OF TAX PURSUANT TO SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, NO LATER THAN ONE YEAR FOLLOWING THE FINAL DETER-
MINATION DATE.
(G) CLAIMS FOR REFUND OR CREDITS OF TAX ARISING FROM A FINAL FEDERAL
ADJUSTMENT. EXCEPT FOR FINAL FEDERAL ADJUSTMENTS REQUIRED TO BE REPORTED
FOR THE YEAR OF THE ADJUSTMENT, A TAXPAYER MAY FILE A CLAIM FOR REFUND
OR CREDIT OF TAX ARISING FROM FEDERAL ADJUSTMENTS ON OR BEFORE THE LATER
OF:
(1) THE EXPIRATION OF THE LAST DAY FOR FILING A CLAIM FOR REFUND OR
CREDIT PURSUANT TO SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS ARTICLE,
INCLUDING ANY EXTENSIONS; OR
(2) ONE YEAR FROM THE DATE A FEDERAL ADJUSTMENT REPORT PURSUANT TO
SUBSECTION (C) OR (D) OF THIS SECTION, AS APPLICABLE, WAS DUE, INCLUDING
ANY EXTENSIONS PURSUANT TO SUBSECTION (H) OF THIS SECTION.
(H) SCOPE OF ADJUSTMENTS AND EXTENSIONS OF TIME. (1) UNLESS OTHERWISE
AGREED IN WRITING BY THE TAXPAYER AND THE COMMISSIONER, ANY ADJUSTMENTS
BY THE COMMISSIONER OR THE TAXPAYER MADE AFTER THE PERIOD OF LIMITATIONS
FOR ASSESSMENT OR REFUND HAS TERMINATED UNDER ARTICLE NINE-A, TWENTY-
TWO, THIRTY-THREE, OR ANY LAW AUTHORIZED BY ARTICLE THIRTY OF THIS CHAP-
TER, IS LIMITED TO CHANGES TO THE TAXPAYER'S TAX LIABILITY ARISING FROM
SUCH A FINAL FEDERAL ADJUSTMENT.
(2) THE TIME PERIODS PROVIDED FOR IN THIS SECTION MAY BE EXTENDED:
S. 3009--C 91 A. 3009--C
(A) AUTOMATICALLY, UPON WRITTEN NOTICE TO THE COMMISSIONER, BY SIXTY
DAYS FOR AN IMPACTED PARTNERSHIP OR TIERED PARTNER WHICH HAS TEN THOU-
SAND OR MORE DIRECT PARTNERS; OR
(B) BY WRITTEN AGREEMENT BETWEEN THE TAXPAYER AND THE COMMISSIONER.
(3) ANY EXTENSION GRANTED UNDER THIS SUBSECTION FOR FILING A FEDERAL
ADJUSTMENTS REPORT EXTENDS THE LAST DAY PRESCRIBED BY LAW FOR ASSESSING
ANY ADDITIONAL TAX ARISING FROM THE ADJUSTMENTS TO FEDERAL TAXABLE
INCOME AND THE PERIOD FOR FILING A CLAIM FOR REFUND OR CREDIT OF TAXES
UNDER ARTICLE NINE-A, TWENTY-TWO, THIRTY-THREE, OR ANY LAW AUTHORIZED BY
ARTICLE THIRTY OF THIS CHAPTER.
§ 5. Subsection (e) of section 681 of the tax law, as amended by chap-
ter 381 of the laws of 1975, paragraph 1 as amended by chapter 28 of the
laws of 1987, is amended to read as follows:
(e) Exceptions where federal changes, corrections or disallowances are
not reported.---
(1) If the taxpayer or employer fails to comply with section six
hundred fifty-nine OR SECTION SIX HUNDRED FIFTY-NINE-A, instead of the
mode and time of assessment provided for in subsection (b) of this
section, the [tax commission] COMMISSIONER may assess a deficiency based
upon such federal change, correction or disallowance by mailing to the
taxpayer a notice of additional tax due specifying the amount of the
deficiency, and such deficiency, together with the interest, additions
to tax and penalties stated in such notice, shall be deemed assessed on
the date such notice is mailed unless within thirty days after the mail-
ing of such notice a report of the federal change, correction or disal-
lowance or an amended return, where such return was required by section
six hundred fifty-nine OR SECTION SIX HUNDRED FIFTY-NINE-A, is filed
accompanied by a statement showing wherein such federal determination
and such notice of additional tax due are erroneous.
(2) Such notice shall not be considered as a notice of deficiency for
the purposes of this section, subsection (f) of section six hundred
eighty-seven (limiting credits or refunds after petition to the [tax
commission] DIVISION OF TAX APPEALS), or subsection (b) of section six
hundred eighty-nine (authorizing the filing of a petition with the [tax
commission] DIVISION OF TAX APPEALS based on a notice of deficiency),
nor shall such assessment or the collection thereof be prohibited by the
provisions of subsection (c).
(3) If [a husband and wife] SPOUSES are jointly liable for tax, a
notice of additional tax due may be a single joint notice, except that
if the [tax commission] COMMISSIONER has been notified by either spouse
that separate residences have been established, then, in lieu of the
joint notice, a duplicate original of the joint notice shall be mailed
to each spouse at [his or her] THEIR last known address in or out of
this state. If the taxpayer is deceased or under a legal disability, a
notice of additional tax due may be mailed to [his] THEIR last known
address in or out of this state, unless the [tax commission] COMMISSION-
ER has received notice of the existence of a fiduciary relationship with
respect to the taxpayer.
§ 6. Subsection (a) of section 682 of the tax law, as amended by
section 3 of part F of chapter 60 of the laws of 2004, is amended to
read as follows:
(a) Assessment date.--The amount of tax which a return shows to be
due, or the amount of tax which a return would have shown to be due but
for a mathematical or clerical error, shall be deemed to be assessed on
the date of filing of the return (including any amended return showing
an increase of tax). In the case of a return properly filed without
S. 3009--C 92 A. 3009--C
computation of tax, the tax computed by the commissioner shall be deemed
to be assessed on the date on which payment is due. If a notice of defi-
ciency has been mailed, the amount of the deficiency shall be deemed to
be assessed on the date specified in subsection (b) of section six
hundred eighty-one if no petition to the division of tax appeals is
filed, or if a petition is filed, then upon the date when a determi-
nation or decision rendered in the division of tax appeals establishing
the amount of the deficiency becomes final. If an amended return or
report filed pursuant to section six hundred fifty-nine OR SIX HUNDRED
FIFTY-NINE-A concedes the accuracy of a federal change or correction,
any deficiency in tax under this article resulting therefrom shall be
deemed to be assessed on the date of filing such report or amended
return, and such assessment shall be timely notwithstanding section six
hundred eighty-three. If a notice of additional tax due, as prescribed
in subsection (e) of section six hundred eighty-one, has been mailed,
the amount of the deficiency shall be deemed to be assessed on the date
specified in such subsection unless within thirty days after the mailing
of such notice a report of the federal change or correction or an
amended return, where such return was required by section six hundred
fifty-nine OR SIX HUNDRED FIFTY-NINE-A, is filed accompanied by a state-
ment showing wherein such federal determination and such notice of addi-
tional tax due are erroneous. Any amount paid as a tax or in respect of
a tax, other than amounts withheld at the source or paid as estimated
income tax, shall be deemed to be assessed upon the date of receipt of
payment, notwithstanding any other provisions.
§ 7. Paragraphs 1, 2 and 3 of subsection (c) of section 683 of the tax
law, paragraph 1 as amended by chapter 526 of the laws of 1973, subpara-
graph (C) of paragraph 1 and paragraph 3 as amended by chapter 28 of
the laws of 1987 and paragraph 2 as added by chapter 1011 of the laws of
1962, are amended to read as follows:
(1) Assessment at any time.--The tax may be assessed at any time if--
(A) no return is filed,
(B) a false or fraudulent return is filed with intent to evade tax, or
(C) the taxpayer or employer fails to comply with section six hundred
fifty-nine OR SIX HUNDRED FIFTY-NINE-A.
(2) Extension by agreement.--Where, before the expiration of the time
prescribed in this section for the assessment of tax, both the [tax
commission] COMMISSIONER and the taxpayer have consented in writing to
its assessment after such time, the tax may be assessed at any time
prior to the expiration of the period agreed upon. The period so agreed
upon may be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
(3) Report of federal changes, corrections or disallowances.--If the
taxpayer or employer complies with section six hundred fifty-nine OR SIX
HUNDRED FIFTY-NINE-A, the assessment (if not deemed to have been made
upon the filing of the report or amended return) may be made at any time
within two years after such report or amended return was filed. The
amount of such assessment of tax shall not exceed the amount of the
increase in New York tax attributable to such federal change or
correction. The provisions of this paragraph shall not affect the time
within which or the amount for which an assessment may otherwise be
made.
§ 8. Paragraph 2 of subsection (h) of section 685 of the tax law, as
amended by section 5 of part I of chapter 59 of the laws of 2014, is
amended to read as follows:
S. 3009--C 93 A. 3009--C
(2) If any partnership, S corporation, or trust required to file a
return or report under subsection (c) or subsection (f) of section six
hundred fifty-eight or under section six hundred fifty-nine OR SIX
HUNDRED FIFTY-NINE-A of this article for any taxable year fails to file
such return or report at the time prescribed therefor (determined with
regard to any extension of time for filing), or files a return or report
which fails to show the information required under such subsection (c)
[or] OF section six hundred fifty-nine of this article, OR FILES A
RETURN OR REPORT WHICH FAILS TO SHOW THE INFORMATION REQUIRED UNDER
SUBSECTION (D) OF SECTION SIX HUNDRED FIFTY-NINE-A OF THIS ARTICLE,
unless it is shown that such failure is due to reasonable cause and not
due to willful neglect, there shall, upon notice and demand by the
commissioner and in the same manner as tax, be paid by the partnership
or S corporation a penalty for each month (or fraction thereof) during
which such failure continues (but not to exceed five months). The amount
of such penalty for any month is the product of fifty dollars, multi-
plied by the number of partners in the partnership or shareholders in
the S corporation during any part of the taxable year who were subject
to tax under this article during any part of such taxable year, except
that, in the case of a trust, the penalty shall be equal to one hundred
fifty dollars a month up to a maximum of fifteen hundred dollars per
taxable year.
§ 9. Subsection (c) of section 687 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
(c) Notice of federal change or correction.--A claim for credit or
refund of any overpayment of tax attributable to a federal change or
correction required to be reported pursuant to section six hundred
fifty-nine OR BY A PARTNER OF A PARTNERSHIP REQUIRED TO REPORT A FEDERAL
CHANGE OR CORRECTION PURSUANT TO SECTION SIX HUNDRED FIFTY-NINE-A shall
be filed by the taxpayer within two years from the time the notice of
such change or correction or such amended return was required to be
filed with the commissioner of taxation and finance. If the report or
amended return required by section six hundred fifty-nine OR SIX HUNDRED
FIFTY-NINE-A is not filed within the ninety day period therein speci-
fied, no interest shall be payable on any claim for credit or refund of
the overpayment attributable to the federal change or correction. The
amount of such credit or refund shall not exceed the amount of the
reduction in tax attributable to such federal change, correction or
items amended on the taxpayer's amended federal income tax return. This
subsection shall not affect the time within which or the amount for
which a claim for credit or refund may be filed apart from this
subsection.
§ 10. Subsection (g) of section 688 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
(g) Cross-reference.--For provision with respect to interest after
failure to file notice of federal change under section six hundred
fifty-nine OR SIX HUNDRED FIFTY-NINE-A, see subsection (c) of section
six hundred eighty-seven.
§ 11. Subsection (a) of section 1312 of the tax law, as amended by
section 9 of part Q of chapter 407 of the laws of 1999, is amended to
read as follows:
(a) Except as otherwise provided in this article, any tax imposed
pursuant to the authority of this article shall be administered and
collected by the commissioner in the same manner as the tax imposed by
article twenty-two of this chapter is administered and collected by the
commissioner. All of the provisions of article twenty-two of this chap-
S. 3009--C 94 A. 3009--C
ter relating to or applicable to payment of estimated tax, returns,
payment of tax, claim of right adjustment, withholding of tax from
wages, employer's statements and returns, employer's liability for taxes
required to be withheld and all other provisions of article twenty-two
of this chapter relating to or applicable to the administration,
collection, liability for and review of the tax imposed by article twen-
ty-two of this chapter, including sections six hundred fifty-two through
six hundred fifty-four, sections six hundred fifty-seven through [six
hundred fifty-nine] SIX HUNDRED FIFTY-NINE-A, sections six hundred
sixty-one and six hundred sixty-two, sections six hundred seventy-one
and six hundred seventy-two, sections six hundred seventy-four through
six hundred seventy-eight and sections six hundred eighty-one through
six hundred ninety-seven of this chapter, inclusive, shall apply to a
tax imposed pursuant to the authority of this article with the same
force and effect as if those provisions had been incorporated in full
into this article, and had expressly referred to the tax imposed pursu-
ant to the authority of this article, except where inconsistent with a
provision of this article. Whenever there is joint collection of state
and city personal income taxes, it shall be deemed that such collections
shall represent proportionately the applicable state and city personal
income taxes in determining the amount to be remitted to the city.
§ 12. Paragraph 1 of subdivision (e) of section 1515 of the tax law,
as amended by chapter 770 of the laws of 1992, is amended to read as
follows:
(1) If the amount of the life insurance company taxable income (which
shall include, in the case of a stock life insurance company which has
an existing policyholders surplus account, the amount of direct and
indirect distributions during the taxable year to shareholders from such
account), taxable income of a partnership or taxable income, as the case
may be, or alternative minimum taxable income for any year of any
taxpayer as returned to the United States treasury department is changed
or corrected by the commissioner of internal revenue or other officer of
the United States or other competent authority, such taxpayer shall
report such change or corrected taxable income or alternative minimum
taxable income within ninety days (or one hundred twenty days, in the
case of a taxpayer making a combined return under this article for such
year) after the final determination of such change or correction or as
required by the commissioner, and shall concede the accuracy of such
determination or state wherein it is erroneous. PROVIDED, HOWEVER, IF
THE TAXPAYER IS A DIRECT OR INDIRECT PARTNER OF A PARTNERSHIP REQUIRED
TO REPORT ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX HUNDRED
FIFTY-NINE-A OF THIS CHAPTER, SUCH TAXPAYER SHALL ALSO REPORT SUCH
ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX HUNDRED FIFTY-NINE-A OF THIS
CHAPTER. Any taxpayer filing an amended return with such department
shall also file within ninety days (or one hundred twenty days, in the
case of a taxpayer making a combined return under this article for such
year) thereafter an amended return with the commissioner which shall
contain such information as the commissioner shall require. The allow-
ance of a tentative carryback adjustment based upon a net operating loss
carryback or net capital loss carryback pursuant to section sixty-four
hundred eleven of the internal revenue code or upon an operations loss
carryback pursuant to section eight hundred ten of the internal revenue
code, shall be treated as a final determination for purposes of this
subdivision.
§ 13. This act shall take effect immediately; provided, however, that
adjustments to a taxpayer's federal taxable income or tax liability with
S. 3009--C 95 A. 3009--C
a final determination date or administrative adjustment request occur-
ring prior to the effective date of this act must be reported within one
year of such effective date; provided further that no interest shall
accrue on adjustments occurring prior to the effective date of this act.
SUBPART B
Section 1. Section 11-501 of the administrative code of the city of
New York is amended by adding four new subdivisions (n), (o), (p) and
(q) to read as follows:
(N) "ADMINISTRATIVE ADJUSTMENT REQUEST" WHEN USED IN THIS CHAPTER
SHALL MEAN A REQUEST FOR AN ADMINISTRATIVE ADJUSTMENT FILED BY A PART-
NERSHIP UNDER SECTION SIXTY-TWO HUNDRED TWENTY-SEVEN OF THE INTERNAL
REVENUE CODE.
(O) "ALTERNATIVE ADJUSTMENT ACTION" WHEN USED IN THIS CHAPTER SHALL
MEAN (I) A FINAL FEDERAL ADJUSTMENT; (II) A FEDERAL ELECTION FOR ALTER-
NATIVE PAYMENT; OR (III) THE FILING OF AN ADMINISTRATIVE ADJUSTMENT
REQUEST.
(P) "FEDERAL ELECTION FOR ALTERNATIVE PAYMENT" WHEN USED IN THIS CHAP-
TER SHALL MEAN THE ELECTION DESCRIBED IN SECTION SIXTY-TWO HUNDRED TWEN-
TY-SIX OF THE INTERNAL REVENUE CODE, RELATING TO ALTERNATIVE PAYMENT OF
IMPUTED UNDERPAYMENT BY A PARTNERSHIP.
(Q) "FINAL FEDERAL ADJUSTMENT" WHEN USED IN THIS CHAPTER SHALL MEAN A
CHANGE TO AN ITEM OF GROSS INCOME, GAIN, LOSS, DEDUCTION, PENALTY, CRED-
IT OR A PARTNER'S DISTRIBUTIVE SHARE, OF A PARTNERSHIP THAT IS DETER-
MINED UNDER SECTION SIXTY-TWO HUNDRED TWENTY-FIVE OF THE INTERNAL REVEN-
UE CODE THAT IS CONSIDERED FIXED AND FINAL UNDER THE INTERNAL REVENUE
CODE.
§ 2. Section 11-519 of the administrative code of the city of New York
is amended to read as follows:
§ 11-519 Report of change in federal or New York state taxable income.
(A) If the amount of a taxpayer's federal or New York state taxable
income reported on [his or her] SUCH TAXPAYER'S federal or New York
state income tax for any taxable year is changed or corrected by the
United States internal revenue service or the New York state tax commis-
sion or other competent authority, or as the result of a renegotiation
of a contract or subcontract with the United States or the state of New
York, or if a taxpayer, pursuant to subsection (d) of section sixty-two
hundred thirteen of the internal revenue code, executes a notice of
waiver of the restrictions provided in subsection (a) of said section,
or if a taxpayer, pursuant to subsection (f) of section six hundred
eighty-one of the tax law, executes a notice or waiver of the
restrictions provided in subsection (c) of such section of the tax law,
the taxpayer shall report such change or correction in federal or New
York state taxable income or such execution of such notice of waiver and
the changes or corrections of the taxpayer's federal or New York state
taxable income on which it is based, within ninety days after the final
determination of such change, correction, or renegotiation, or such
execution of such notice of waiver, or as otherwise required by the
commissioner of finance, and shall concede the accuracy of such determi-
nation or state wherein it is erroneous. Any taxpayer filing an amended
federal or New York state income tax return shall also file within nine-
ty days thereafter an amended return under this chapter, and shall give
such information as the commissioner of finance may require.
(B) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP THAT IS REQUIRED TO
REPORT A CHANGE OR CORRECTION IN ITS FEDERAL OR NEW YORK STATE TAXABLE
S. 3009--C 96 A. 3009--C
INCOME PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL REPORT ITS
DISTRIBUTIVE SHARE OF SUCH CHANGE OR CORRECTION AS IF SUCH CHANGE OR
CORRECTION WAS MADE DIRECTLY TO SUCH TAXPAYER'S FEDERAL OR NEW YORK
STATE TAXABLE INCOME.
(C) ANY TAXPAYER SUBJECT TO AN ALTERNATIVE ADJUSTMENT ACTION, OR THAT
IS A PARTNER IN A PARTNERSHIP SUBJECT TO AN ALTERNATIVE ADJUSTMENT
ACTION, SHALL REPORT SUCH ALTERNATIVE ADJUSTMENT ACTION WITHIN NINETY
DAYS AFTER THE ALTERNATIVE ADJUSTMENT ACTION OCCURS, AS APPLICABLE,
REGARDLESS OF THE TAX IMPACT OF SUCH ACTION. THE COMMISSIONER OF FINANCE
MAY REQUIRE SUCH REPORT TO BE FILED ELECTRONICALLY. SUCH REPORT SHALL
INCLUDE THE IDENTITY OF ANY PARTNERS OF SUCH TAXPAYER, AS APPLICABLE,
AND ANY OTHER INFORMATION AS THE COMMISSIONER OF FINANCE DEEMS NECESSARY
IN ORDER TO DETERMINE THE IMPACT OF SUCH ALTERNATIVE ADJUSTMENT ACTION.
(D) The commissioner of finance may [by regulation] prescribe such
exceptions to the requirements of this section as [the] SUCH commission-
er deems appropriate TO FACILITATE THE ADMINISTRATION OF THIS SECTION.
§ 3. Subparagraph (C) of paragraph 1 of subdivision (c) of section
11-523 of the administrative code of the city of New York, as amended by
chapter 839 of the laws of 1986, is amended to read as follows:
(C) the taxpayer fails to comply with section 11-519 of this chapter
in not reporting a change or correction increasing or decreasing the
taxpayer's federal or New York state taxable income as reported on the
taxpayer's federal or New York state income tax return, or the execution
of a notice of waiver and the changes or corrections on which it is
based, or in not reporting a change or correction which is treated in
the same manner as if it were a deficiency for federal or New York state
income tax purposes, OR IN NOT REPORTING AN ALTERNATIVE ADJUSTMENT
ACTION, or in not filing an amended return, or
§ 4. Subdivision (c) of section 11-527 of the administrative code of
the city of New York, as amended by chapter 241 of the laws of 1989, is
amended to read as follows:
(c) Notice of change or correction of federal or New York state taxa-
ble income. If a taxpayer is required by section 11-519 of this chapter
to report a change or correction in federal or New York state taxable
income reported on the taxpayer's federal or New York state income tax
return, or to report a change or correction which is treated in the same
manner as if it were an overpayment for federal or New York state income
tax purposes, OR TO REPORT AN ALTERNATIVE ADJUSTMENT ACTION, or to file
an amended return with the commissioner of finance, claim for credit or
refund of any resulting overpayment of tax shall be filed by the taxpay-
er within two years from the time the notice of such change or
correction, OR SUCH REPORT OF AN ALTERNATIVE ADJUSTMENT ACTION, or such
amended return was required to be filed with the commissioner of
finance. If the report or amended return required by section 11-519 of
this chapter is not filed within the ninety day period therein speci-
fied, no interest shall be payable on any claim for credit or refund of
the overpayment attributable to the federal or New York state change or
correction. The amount of such credit or refund shall not exceed the
amount of the reduction in tax attributable to such federal or New York
state change, correction or items amended on the taxpayer's amended
federal or New York state income tax return. This subdivision shall not
affect the time within which or the amount for which a claim for credit
or refund may be filed apart from this subdivision.
§ 5. Paragraph 4 of subdivision (d) of section 11-529 of the adminis-
trative code of the city of New York, as amended by chapter 808 of the
laws of 1992, is amended to read as follows:
S. 3009--C 97 A. 3009--C
(4) Restriction on further notices of deficiency. If the taxpayer
files a petition with the tax appeals tribunal under this section, no
notice of deficiency under section 11-521 of this chapter may thereafter
be issued by the commissioner of finance for the same taxable year,
except in case of fraud or with respect to a change or correction in
federal or New York state taxable income OR AN ALTERNATIVE ADJUSTMENT
ACTION required to be reported under section 11-519 of this chapter or
with respect to a state change or correction of sales and compensating
use tax liability to be reported under section 11-519.1 of this chapter.
§ 6. Paragraph 3 of subdivision (e) of section 11-529 of the adminis-
trative code of the city of New York, as amended by chapter 808 of the
laws of 1992, is amended to read as follows:
(3) whether the petitioner is liable for any increase in a deficiency
where such increase is asserted initially after a notice of deficiency
was mailed and a petition under this section filed, unless such increase
in deficiency is the result of a change or correction of federal or New
York state taxable income OR AN ALTERNATIVE ADJUSTMENT ACTION required
to be reported under section 11-519 of this chapter, and of which change
[or], correction, OR ALTERNATIVE ADJUSTMENT ACTION the commissioner of
finance had no notice at the time [he or she] SUCH COMMISSIONER mailed
the notice of deficiency or unless such increase in deficiency is the
result of a change or correction of sales and compensating use tax
liability required to be reported under section 11-519.1 of this chap-
ter, and of which change or correction the commissioner of finance had
no notice at the time [he or she] SUCH COMMISSIONER mailed the notice of
deficiency; and
§ 7. Section 11-601 of the administrative code of the city of New York
is amended by adding four new subdivisions 13-a, 13-b, 13-c and 13-d to
read as follows:
13-A. "ADMINISTRATIVE ADJUSTMENT REQUEST" MEANS A REQUEST FOR AN
ADMINISTRATIVE ADJUSTMENT FILED BY A PARTNERSHIP UNDER SECTION SIXTY-TWO
HUNDRED TWENTY-SEVEN OF THE INTERNAL REVENUE CODE.
13-B. "ALTERNATIVE ADJUSTMENT ACTION" MEANS (I) A FINAL FEDERAL
ADJUSTMENT; (II) A FEDERAL ELECTION FOR ALTERNATIVE PAYMENT; OR (III)
THE FILING OF AN ADMINISTRATIVE ADJUSTMENT REQUEST.
13-C. "FEDERAL ELECTION FOR ALTERNATIVE PAYMENT" MEANS THE ELECTION
DESCRIBED IN SECTION SIXTY-TWO HUNDRED TWENTY-SIX OF THE INTERNAL REVEN-
UE CODE, RELATING TO ALTERNATIVE PAYMENT OF IMPUTED UNDERPAYMENT BY A
PARTNERSHIP.
13-D. "FINAL FEDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OF GROSS
INCOME, GAIN, LOSS, DEDUCTION, PENALTY, CREDIT OR A PARTNER'S DISTRIBU-
TIVE SHARE, OF A PARTNERSHIP THAT IS DETERMINED UNDER SECTION SIXTY-TWO
HUNDRED TWENTY-FIVE OF THE INTERNAL REVENUE CODE THAT IS CONSIDERED
FIXED AND FINAL UNDER THE INTERNAL REVENUE CODE.
§ 8. Section 11-605 of the administrative code of the city of New York
is amended by adding three new subdivisions 3-a, 3-b and 3-c to read as
follows:
3-A. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP THAT IS REQUIRED TO
REPORT A CHANGE OR CORRECTION IN ITS FEDERAL OR NEW YORK STATE TAXABLE
INCOME SHALL REPORT ITS DISTRIBUTIVE SHARE OF SUCH CHANGE OR CORRECTION
AS IF SUCH CHANGE OR CORRECTION WAS MADE DIRECTLY TO SUCH TAXPAYER'S
FEDERAL OR NEW YORK STATE TAXABLE INCOME, ALTERNATIVE MINIMUM TAXABLE
INCOME OR OTHER BASIS OF TAX AND WAS REQUIRED TO BE REPORTED PURSUANT TO
THIS SECTION.
3-B. ANY TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP SUBJECT TO AN
ALTERNATIVE ADJUSTMENT ACTION SHALL REPORT SUCH ALTERNATIVE ADJUSTMENT
S. 3009--C 98 A. 3009--C
ACTION, WITHIN NINETY DAYS AFTER THE ALTERNATIVE ADJUSTMENT ACTION
OCCURS, AS APPLICABLE, REGARDLESS OF THE TAX IMPACT OF SUCH ACTION. SUCH
REPORT SHALL INCLUDE ANY OTHER INFORMATION AS THE COMMISSIONER OF
FINANCE DEEMS NECESSARY IN ORDER TO DETERMINE THE IMPACT OF SUCH ALTER-
NATIVE ADJUSTMENT ACTION.
3-C. THE COMMISSIONER OF FINANCE MAY REQUIRE THE REPORTS REQUIRED
PURSUANT TO SUBDIVISIONS THREE-A AND THREE-B OF THIS SECTION TO BE FILED
ELECTRONICALLY AND SHALL ESTABLISH EXCEPTIONS FROM A TAXPAYER'S REQUIRE-
MENT TO FILE SUCH REPORTS AS THE COMMISSIONER OF FINANCE DETERMINES ARE
APPROPRIATE TO FACILITATE THE ADMINISTRATION OF SUCH SUBDIVISIONS.
§ 9. Section 11-646 of the administrative code of the city of New York
is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to
read as follows:
(E-1) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP THAT IS REQUIRED
TO REPORT A CHANGE OR CORRECTION IN ITS FEDERAL OR NEW YORK STATE TAXA-
BLE INCOME SHALL REPORT ITS DISTRIBUTIVE SHARE OF SUCH CHANGE OR
CORRECTION AS IF SUCH CHANGE OR CORRECTION WAS MADE DIRECTLY TO SUCH
TAXPAYER'S FEDERAL OR NEW YORK STATE TAXABLE INCOME, ALTERNATIVE MINIMUM
TAXABLE INCOME OR OTHER BASIS OF TAX AND WAS REQUIRED TO BE REPORTED
PURSUANT TO THIS SECTION.
(E-2) ANY TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP SUBJECT TO AN
ALTERNATIVE ADJUSTMENT ACTION SHALL REPORT SUCH ALTERNATIVE ADJUSTMENT
ACTION, WITHIN NINETY DAYS AFTER THE ALTERNATIVE ADJUSTMENT ACTION
OCCURS, AS APPLICABLE, REGARDLESS OF THE TAX IMPACT OF SUCH ACTION. SUCH
REPORT SHALL INCLUDE ANY OTHER INFORMATION AS THE COMMISSIONER OF
FINANCE DEEMS NECESSARY IN ORDER TO DETERMINE THE IMPACT OF SUCH ALTER-
NATIVE ADJUSTMENT ACTION.
(E-3) THE COMMISSIONER OF FINANCE MAY REQUIRE THE REPORTS REQUIRED BY
SUBDIVISIONS (E-1) AND (E-2) OF THIS SECTION TO BE FILED ELECTRONICALLY
AND SHALL ESTABLISH EXCEPTIONS FROM A TAXPAYER'S REQUIREMENT TO FILE
SUCH REPORTS AS THE COMMISSIONER OF FINANCE DETERMINES ARE APPROPRIATE
TO FACILITATE THE ADMINISTRATION OF SUCH SUBDIVISIONS.
§ 10. Section 11-655 of the administrative code of the city of New
York is amended by adding three new subdivisions 3-a, 3-b and 3-c to
read as follows:
3-A. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP THAT IS REQUIRED TO
REPORT A CHANGE OR CORRECTION IN ITS FEDERAL OR NEW YORK STATE TAXABLE
INCOME SHALL REPORT ITS DISTRIBUTIVE SHARE OF SUCH CHANGE OR CORRECTION
AS IF SUCH CHANGE OR CORRECTION WAS MADE DIRECTLY TO SUCH TAXPAYER'S
FEDERAL OR NEW YORK STATE TAXABLE INCOME OR OTHER BASIS OF TAX AND WAS
REQUIRED TO BE REPORTED PURSUANT TO THIS SECTION.
3-B. ANY TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP SUBJECT TO AN
ALTERNATIVE ADJUSTMENT ACTION SHALL REPORT SUCH ALTERNATIVE ADJUSTMENT
ACTION, WITHIN NINETY DAYS AFTER THE ALTERNATIVE ADJUSTMENT ACTION
OCCURS, AS APPLICABLE, REGARDLESS OF THE TAX IMPACT OF SUCH ACTION. SUCH
REPORT SHALL INCLUDE ANY OTHER INFORMATION AS THE COMMISSIONER OF
FINANCE DEEMS NECESSARY IN ORDER TO DETERMINE THE IMPACT OF SUCH ALTER-
NATIVE ADJUSTMENT ACTION.
3-C. THE COMMISSIONER OF FINANCE MAY REQUIRE THE REPORTS REQUIRED BY
SUBDIVISIONS THREE-A AND THREE-B OF THIS SECTION TO BE FILED ELECTRON-
ICALLY AND SHALL ESTABLISH EXCEPTIONS FROM A TAXPAYER'S REQUIREMENT TO
FILE SUCH REPORTS AS THE COMMISSIONER OF FINANCE DETERMINES ARE APPRO-
PRIATE TO FACILITATE THE ADMINISTRATION OF THIS SUBDIVISION.
§ 11. Paragraph (a) of subdivision 5 of section 11-672 of the adminis-
trative code of the city of New York, as amended by section 8 of part D
of chapter 60 of the laws of 2015, is amended to read as follows:
S. 3009--C 99 A. 3009--C
(a) If the taxpayer fails to comply with subchapter two, three or
three-A of this chapter in not reporting a change or correction or rene-
gotiation, or computation or recomputation of tax, increasing or
decreasing its federal or New York state taxable income, alternative
minimum taxable income or other basis of tax as reported on its federal
or New York state income tax return, or in not reporting a change or
correction or renegotiation, or computation or recomputation of tax,
which is treated in the same manner as if it were a deficiency for
federal or New York state income tax purposes, OR IN NOT REPORTING AN
ALTERNATIVE ADJUSTMENT ACTION, or in not filing an amended return, or in
not reporting the execution of a notice of waiver executed pursuant to
subsection (d) of section six thousand two hundred thirteen of the
internal revenue code or pursuant to subdivision (f) of section one
thousand eighty-one of the tax law, instead of the mode and time of
assessment provided for in subdivision two of this section, the commis-
sioner of finance may assess a deficiency based upon such increased or
decreased federal or New York state taxable income, alternative minimum
taxable income or other basis of tax by mailing to the taxpayer a notice
of additional tax due specifying the amount of the deficiency, and such
deficiency, together with the interest, additions to tax and penalties
stated in such notice, shall be deemed assessed on the date such notice
is mailed unless within thirty days after the mailing of such notice a
report of the federal or New York state change or correction or renego-
tiation, or computation or recomputation of tax, OR REPORT OF AN ALTER-
NATIVE ADJUSTMENT ACTION, or an amended return, where such return was
required by subchapter two, three or three-A, is filed accompanied by a
statement showing wherein such federal or New York state determination
and such notice of additional tax due are erroneous.
§ 12. Subdivision 3 of section 11-678 of the administrative code of
the city of New York, as amended by section 16 of part D of chapter 60
of the laws of 2015, is amended to read as follows:
3. Notice of change or correction of federal or New York state income
or other basis of tax. (A) If a taxpayer is required by subchapter two,
three or three-A of this chapter to file a report or amended return in
respect of [(a)] (I) a decrease or increase in federal or New York state
taxable income, alternative minimum taxable income or other basis of tax
or federal or New York state tax, [(b)] (II) a federal or New York state
change or correction or renegotiation, or computation or recomputation
of tax, which is treated in the same manner as if it were an overpayment
for federal or New York state income tax purposes, OR (III) AN ALTERNA-
TIVE ADJUSTMENT ACTION, claim for credit or refund of any resulting
overpayment of tax shall be filed by the taxpayer within two years from
the time such report or amended return was required to be filed with the
commissioner of finance. If the report or amended return required by
subchapter two, three or three-A of this chapter is not filed within the
ninety day period therein specified, no interest shall be payable on any
claim for credit or refund of the overpayment attributable to the feder-
al or New York state change or correction.
(B) The amount of such credit or refund[:
(c)] shall, (i) for taxable years beginning before January first, two
thousand fifteen, be computed without change of the allocation of income
or capital upon which the taxpayer's return (or any additional assess-
ment) was based, and, (ii) for taxable years beginning on or after Janu-
ary first, two thousand fifteen, be computed without change of the allo-
cation of income or capital upon which the taxpayer's return (or any
additional assessment) was based to the extent that the claim for refund
S. 3009--C 100 A. 3009--C
arises from a decrease or increase in federal taxable income or other
basis of tax or federal tax, or from a federal change, correction, rene-
gotiation, computation or recomputation of tax, which is treated in the
same manner as if it were an overpayment for federal income tax
purposes[, and].
[(d)] (C) THE AMOUNT OF SUCH CREDIT OR REFUND shall not exceed the
amount of the reduction in tax attributable to such decrease or increase
in federal or New York state taxable income, alternative minimum taxable
income or other basis of tax or federal or New York state tax or to such
federal or New York state change or correction or renegotiation, or
computation or recomputation of tax.
§ 13. Paragraph (d) of subdivision 4 of section 11-680 of the adminis-
trative code of the city of New York, as amended by section 18 of part D
of chapter 60 of the laws of 2015, is amended to read as follows:
(d) Restriction on further notices of deficiency. If the taxpayer
files a petition with the tax appeals tribunal under this section, no
notice of deficiency under section 11-672 of this subchapter may there-
after be issued by the commissioner of finance for the same taxable
year, except in case of fraud or with respect to an increase or decrease
in federal or New York state taxable income, alternative minimum taxable
income or other basis of tax or federal or New York state tax, or a
federal or New York state change or correction or renegotiation, or
computation or recomputation of tax, which is treated in the same manner
as if it were a deficiency for federal or New York state income tax
purposes, OR AN ALTERNATIVE ADJUSTMENT ACTION, required to be reported
under subchapter two, three or three-A of this chapter or with respect
to a state change or correction of sales and compensating use tax
liability required to be reported under subchapter two or three-A of
this chapter.
§ 14. Paragraph (c) of subdivision 5 of section 11-680 of the adminis-
trative code of the city of New York, as amended by section 19 of part D
of chapter 60 of the laws of 2015, is amended to read as follows:
(c) whether the petitioner is liable for any increase in a deficiency
where such increase is asserted initially after a notice of deficiency
was mailed and a petition under this section filed, unless such increase
in deficiency is the result of an increase or decrease in federal or New
York state taxable income, alternative minimum taxable income or other
basis of tax or federal or New York state tax, or a federal or New York
state change [or], correction [or], renegotiation, [or] computation, or
recomputation of tax, which is treated in the same manner as if it were
a deficiency for federal or New York state income tax purposes, OR AN
ALTERNATIVE ADJUSTMENT ACTION, required to be reported under subchapter
two, three or three-A of this chapter, and of which increase, decrease,
change [or], correction [or], renegotiation, [or] computation [or],
recomputation, OR ADJUSTMENT, the commissioner of finance had no notice
at the time [he or she] SUCH COMMISSIONER mailed the notice of deficien-
cy or unless such increase in deficiency is the result of a change or
correction of sales and compensating use tax liability required to be
reported under subchapter two or three-A of this chapter, and of which
change or correction the commissioner of finance had no notice at the
time [he or she] SUCH COMMISSIONER mailed the notice of deficiency; and
§ 15. This act shall take effect on the ninetieth day after it shall
have become a law; provided, that, notwithstanding section 11-519 of the
administrative code of the city of New York, as amended by section two
of this act, or subdivision 3-b of section 11-605, subdivision (e-2) of
section 11-646, or subdivision 3-b of section 11-655 of such administra-
S. 3009--C 101 A. 3009--C
tive code, as added by sections eight, nine and ten of this act, an
alternative adjustment action, as defined by either subdivision (o) of
section 11-501 or subdivision 13-b of section 11-601 of such administra-
tive code, as added by sections one and seven of this act, occurring
prior to such date shall not be required to be reported prior to 270
days after this act takes effect; and for the purposes of this section,
an alternative adjustment action shall be deemed to occur when the
applicable administrative adjustment request, federal election for
alternative payment or final federal adjustment, as such terms are
defined by subdivisions (n), (p) or (q) of section 11-501 and subdivi-
sions 13-a, 13-c, and 13-d of section 11-601 of such administrative
code, as added by sections one and seven of this act, occurs.
§ 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 Subparts A and B of this act shall be
as specifically set forth in the last section of such Subparts.
PART W
Section 1. Section 1310 of the tax law is amended by adding a new
subsection (h) to read as follows:
(H) CREDIT FOR CERTAIN TAXPAYERS WITH INCOMES BELOW CERTAIN THRESH-
OLDS. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE, A CREDIT SHALL BE ALLOWED TO A TAXPAYER AGAINST THE TAX
IMPOSED PURSUANT TO THE AUTHORITY OF THIS ARTICLE IN AN AMOUNT EQUAL TO
THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE YEAR, REDUCED
BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXABLE YEAR, IF:
(A) SUCH TAXPAYER IS ENTITLED TO A DEDUCTION FOR SUCH TAXABLE YEAR
UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL
REVENUE CODE;
(B) SUCH TAXPAYER MEETS THE FOLLOWING INCOME THRESHOLDS FOR SUCH TAXA-
BLE YEAR:
(I) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS
MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING SPOUSE:
IF THE NUMBER OF INCOME NO GREATER THAN:
DEPENDENTS IS:
1 $36,789
2 $46,350
3 $54,545
4 $61,071
5 $68,403
6 $75,204
7 OR MORE $91,902
S. 3009--C 102 A. 3009--C
(II) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS A
SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF
HOUSEHOLD:
IF THE NUMBER OF INCOME NO GREATER THAN:
DEPENDENTS IS:
1 $31,503
2 $36,824
3 $46,512
4 $53,711
5 $59,928
6 $65,712
7 $74,565
8 OR MORE $88,361
(III) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, THE COMMISSIONER SHALL MULTIPLY THE AMOUNTS IN THIS
SUBPARAGRAPH BY ONE PLUS THE COST-OF-LIVING ADJUSTMENT, WHICH SHALL BE
THE PERCENTAGE BY WHICH THE CONSUMER PRICE INDEX FOR THE PRECEDING
CALENDAR YEAR EXCEEDS THE CONSUMER PRICE INDEX FOR CALENDAR YEAR TWO
THOUSAND TWENTY-FOUR;
(C) SUCH TAXPAYER IS NOT ALLOWED A CREDIT PURSUANT TO:
(I) SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THIS CHAP-
TER AGAINST THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAP-
TER; OR
(II) SUBSECTION (A) OF SECTION EIGHT HUNDRED SEVENTY OF THIS CHAPTER
AGAINST THE TAX IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY OF
THIS CHAPTER; AND
(D) SUCH TAXPAYER DOES NOT REPORT DISQUALIFIED INCOME IN EXCESS OF TEN
THOUSAND DOLLARS IN THE TAXABLE YEAR, AS DEFINED IN SUBSECTION (I) OF
SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.
(2) WHERE THE INCOME OF A TAXPAYER EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION FOR SUCH TAXPAYER
BY FIVE THOUSAND DOLLARS OR LESS, AND SUCH TAXPAYER SATISFIES SUBPARA-
GRAPH (A) AND SUBPARAGRAPHS (C) AND (D) OF PARAGRAPH ONE OF THIS
SUBSECTION, A CREDIT SHALL BE ALLOWED IN THE AMOUNT DETERMINED BY MULTI-
PLYING: (A) THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE
YEAR REDUCED BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXA-
BLE YEAR BY (B) A FRACTION THE NUMERATOR OF WHICH IS FIVE THOUSAND
DOLLARS MINUS THE AMOUNT BY WHICH SUCH INCOME EXCEEDS THE AMOUNT INDI-
CATED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION AND THE
DENOMINATOR OF WHICH IS FIVE THOUSAND DOLLARS.
(3) FOR PURPOSES OF THIS SUBSECTION:
(A) "CONSUMER PRICE INDEX" MEANS THE MOST RECENT CONSUMER PRICE INDEX
FOR ALL-URBAN CONSUMERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF
LABOR. THE CONSUMER PRICE INDEX FOR ANY CALENDAR YEAR SHALL BE THE
AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE TWELVE-MONTH
PERIOD ENDING ON AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
(B) "INCOME" MEANS FEDERAL ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR.
§ 2. Section 11-1706 of the administrative code of the city of New
York is amended by adding a new subdivision (h) to read as follows:
(H) CREDIT FOR CERTAIN TAXPAYERS WITH INCOMES BELOW CERTAIN THRESH-
OLDS. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE, A CREDIT SHALL BE ALLOWED TO A TAXPAYER AGAINST THE TAXES
S. 3009--C 103 A. 3009--C
IMPOSED PURSUANT TO THE AUTHORITY OF THIS CHAPTER IN AN AMOUNT EQUAL TO
THE TAX OTHERWISE DUE UNDER THIS CHAPTER FOR SUCH TAXABLE YEAR REDUCED
BY ALL THE CREDITS PERMITTED BY THIS CHAPTER FOR SUCH TAXABLE YEAR IF:
(A) SUCH TAXPAYER IS ENTITLED TO A DEDUCTION FOR SUCH TAXABLE YEAR
UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL
REVENUE CODE;
(B) SUCH TAXPAYER MEETS THE FOLLOWING INCOME THRESHOLDS FOR SUCH TAXA-
BLE YEAR:
(I) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS
MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING SPOUSE:
IF THE NUMBER OF DEPENDENTS IS: INCOME NO GREATER THAN:
1 $36,789
2 $46,350
3 $54,545
4 $61,071
5 $68,403
6 $75,204
7 OR MORE $91,902
(II) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS A
SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF
HOUSEHOLD:
IF THE NUMBER OF DEPENDENTS IS: INCOME NO GREATER THAN:
1 $31,503
2 $36,824
3 $46,512
4 $53,711
5 $59,928
6 $65,712
7 $74,565
8 OR MORE $88,361
(III) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, THE COMMISSIONER OF THE STATE DEPARTMENT OF TAXA-
TION AND FINANCE SHALL MULTIPLY THE AMOUNTS IN THIS SUBPARAGRAPH BY ONE
PLUS THE COST-OF-LIVING ADJUSTMENT, WHICH SHALL BE THE PERCENTAGE BY
WHICH THE CONSUMER PRICE INDEX FOR THE PRECEDING CALENDAR YEAR EXCEEDS
THE CONSUMER PRICE INDEX FOR CALENDAR YEAR TWO THOUSAND TWENTY-FOUR;
(C) SUCH TAXPAYER IS NOT ALLOWED A CREDIT PURSUANT TO: (I) SUBSECTION
(A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THE TAX LAW AGAINST THE
TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF SUCH LAW; OR (II) SUBDIVI-
SION (G) OF THIS SECTION AGAINST THE TAX IMPOSED PURSUANT TO THIS CHAP-
TER;
(D) SUCH TAXPAYER DOES NOT REPORT DISQUALIFIED INCOME IN EXCESS OF TEN
THOUSAND DOLLARS IN THE TAXABLE YEAR, AS SUCH TERM IS DEFINED IN
SUBSECTION (I) OF SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.
(2) WHERE THE INCOME OF A TAXPAYER EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION FOR SUCH TAXPAYER
BY FIVE THOUSAND DOLLARS OR LESS, AND SUCH TAXPAYER SATISFIES SUBPARA-
GRAPH (A) AND SUBPARAGRAPHS (C) AND (D) OF PARAGRAPH ONE OF THIS SUBDI-
VISION, A CREDIT SHALL BE ALLOWED IN THE AMOUNT DETERMINED BY MULTIPLY-
ING: (A) THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE YEAR
REDUCED BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXABLE
YEAR BY (B) A FRACTION THE NUMERATOR OF WHICH IS FIVE THOUSAND DOLLARS
S. 3009--C 104 A. 3009--C
MINUS THE AMOUNT BY WHICH SUCH INCOME EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION AND THE DENOMINA-
TOR OF WHICH IS FIVE THOUSAND DOLLARS.
(3) FOR PURPOSES OF THIS SUBDIVISION:
(A) "CONSUMER PRICE INDEX" MEANS THE MOST RECENT CONSUMER PRICE INDEX
FOR ALL-URBAN CONSUMERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF
LABOR. THE CONSUMER PRICE INDEX FOR ANY CALENDAR YEAR SHALL BE THE
AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE TWELVE-MONTH
PERIOD ENDING ON AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
(B) "INCOME" MEANS FEDERAL ADJUSTED GROSS INCOME FOR A TAXABLE YEAR.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
PART X
Intentionally Omitted
PART Y
Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax
law, as amended by section 1 of part K of chapter 59 of the laws of
2022, is amended to read as follows:
(a) General. A taxpayer shall be allowed a credit against the tax
imposed by this article. Such credit, to be computed as hereinafter
provided, shall be allowed for bioheating fuel, used for space heating
or hot water production for residential purposes within this state
purchased before January first, two thousand [twenty-six] TWENTY-NINE.
Such credit shall be $0.01 per percent of biodiesel per gallon of
bioheating fuel, not to exceed twenty cents per gallon, purchased by
such taxpayer. Provided, however, that on or after January first, two
thousand seventeen, this credit shall not apply to bioheating fuel that
is less than six percent biodiesel per gallon of bioheating fuel.
§ 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as
amended by section 2 of part K of chapter 59 of the laws of 2022, is
amended to read as follows:
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
be allowed for bioheating fuel, used for space heating or hot water
production for residential purposes within this state and purchased on
or after July first, two thousand six and before July first, two thou-
sand seven and on or after January first, two thousand eight and before
January first, two thousand [twenty-six] TWENTY-NINE. Such credit shall
be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to
exceed twenty cents per gallon, purchased by such taxpayer. Provided,
however, that on or after January first, two thousand seventeen, this
credit shall not apply to bioheating fuel that is less than six percent
biodiesel per gallon of bioheating fuel.
§ 3. This act shall take effect immediately.
PART Z
Section 1. Subdivision 6 of section 187-b of the tax law, as amended
by section 1 of part P of chapter 59 of the laws of 2022, is amended to
read as follows:
S. 3009--C 105 A. 3009--C
6. Termination. The credit allowed by subdivision two of this section
shall not apply in taxable years beginning after December thirty-first,
two thousand [twenty-five] TWENTY-EIGHT.
§ 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law,
as amended by section 2 of part P of chapter 59 of the laws of 2022, is
amended to read as follows:
(f) Termination. The credit allowed by paragraph (b) of this subdivi-
sion shall not apply in taxable years beginning after December thirty-
first, two thousand [twenty-five] TWENTY-EIGHT.
§ 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as
amended by section 3 of part P of chapter 59 of the laws of 2022, is
amended to read as follows:
(6) Termination. The credit allowed by this subsection shall not apply
in taxable years beginning after December thirty-first, two thousand
[twenty-five] TWENTY-EIGHT.
§ 4. This act shall take effect immediately.
PART AA
Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of
section 1115 of the tax law, as amended by section 1 of part J of chap-
ter 59 of the laws of 2024, is amended to read as follows:
(B) Until May thirty-first, two thousand [twenty-five] TWENTY-SIX, 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 that accepts coin or
currency only; or (ii) when sold for two dollars or less through any
vending machine that accepts any form of payment other than coin or
currency, whether or not it also accepts coin or currency.
§ 2. This act shall take effect immediately.
PART BB
Section 1. Subdivision (f) of section 25-b of the labor law, as added
by section 2 of part Q of chapter 59 of the laws of 2022, is amended to
read as follows:
(f) The tax credits provided under this program shall be applicable to
taxable periods beginning before January first, two thousand [twenty-
six] TWENTY-NINE.
§ 2. This act shall take effect immediately.
PART CC
Section 1. Paragraph (a) of subdivision 29 of section 210-B of the
tax law, as amended by section 1 of part H of chapter 59 of the laws of
2022, is amended to read as follows:
(a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-six] TWENTY-NINE, a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than twelve contin-
uous and uninterrupted months (hereinafter referred to as the twelve-
month period) in a full-time or part-time position, a qualified veteran
within the state. The taxpayer may claim the credit in the year in which
the qualified veteran completes the twelve-month period of employment by
the taxpayer. If the taxpayer claims the credit allowed under this
S. 3009--C 106 A. 3009--C
subdivision, the taxpayer may not use the hiring of a qualified veteran
that is the basis for this credit in the basis of any other credit
allowed under this article.
§ 2. Subparagraph 2 of paragraph (b) of subdivision 29 of section
210-B of the tax law, as amended by section 1 of part H of chapter 59 of
the laws of 2022, is amended to read as follows:
(2) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-five] TWENTY-EIGHT; and
§ 3. Paragraph 1 of subsection (a-2) of section 606 of the tax law, as
amended by section 2 of part H of chapter 59 of the laws of 2022, is
amended to read as follows:
(1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-six] TWENTY-NINE, a taxpayer shall be allowed a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than twelve continuous
and uninterrupted months (hereinafter referred to as the twelve-month
period) in a full-time or part-time position, a qualified veteran within
the state. The taxpayer may claim the credit in the year in which the
qualified veteran completes the twelve-month period of employment by the
taxpayer. If the taxpayer claims the credit allowed under this
subsection, the taxpayer may not use the hiring of a qualified veteran
that is the basis for this credit in the basis of any other credit
allowed under this article.
§ 4. Subparagraph (B) of paragraph 2 of subsection (a-2) of section
606 of the tax law, as amended by section 2 of part H of chapter 59 of
the laws of 2022, is amended to read as follows:
(B) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-five] TWENTY-EIGHT; and
§ 5. Paragraph 1 of subdivision (g-1) of section 1511 of the tax law,
as amended by section 3 of part H of chapter 59 of the laws of 2022, is
amended to read as follows:
(1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-six] TWENTY-NINE, a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than twelve contin-
uous and uninterrupted months (hereinafter referred to as the twelve-
month period) in a full-time or part-time position, a qualified veteran
within the state. The taxpayer may claim the credit in the year in which
the qualified veteran completes the twelve-month period of employment by
the taxpayer. If the taxpayer claims the credit allowed under this
subdivision, the taxpayer may not use the hiring of a qualified veteran
that is the basis for this credit in the basis of any other credit
allowed under this article.
§ 6. Subparagraph (B) of paragraph 2 of subdivision (g-1) of section
1511 of the tax law, as amended by section 3 of part H of chapter 59 of
the laws of 2022, is amended to read as follows:
(B) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-five] TWENTY-EIGHT; and
§ 7. This act shall take effect immediately.
PART DD
S. 3009--C 107 A. 3009--C
Section 1. Section 5 of part HH of chapter 59 of the laws of 2014,
amending the tax law relating to a musical and theatrical production
credit, as amended by section 1 of part HH of chapter 59 of the laws of
2021, is amended to read as follows:
§ 5. This act shall take effect immediately, provided that section two
of this act shall take effect on January 1, 2015, and shall apply to
taxable years beginning on or after January 1, 2015, with respect to
"qualified production expenditures" and "transportation expenditures"
paid or incurred on or after such effective date, regardless of whether
the production of the qualified musical or theatrical production
commenced before such date, provided further that this act shall expire
and be deemed repealed January 1, [2026] 2030.
§ 2. This act shall take effect immediately.
PART EE
Section 1. Section 2 of part U of chapter 59 of the laws of 2017, amend-
ing the tax law, relating to the financial institution data match system
for state tax collection purposes, as amended by section 1 of part A of
chapter 59 of the laws of 2020, is amended to read as follows:
§ 2. This act shall take effect immediately and shall expire April 1,
[2025] 2030 when upon such date the provisions of this act shall be
deemed repealed.
§ 2. This act shall take effect immediately.
PART FF
Section 1. This act enacts into law major components of legislation
necessary to implement certain provisions regarding simplifying the
pari-mutuel tax rate system. 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 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 Subpart in which it is found. Section three
of this act sets forth the general effective date of this act.
SUBPART A
Section 1. The racing, pari-mutuel wagering and breeding law is
amended by adding a new section 136 to read as follows:
§ 136. PARI-MUTUEL WAGERING TAX. 1. NOTWITHSTANDING ANY LAW TO THE
CONTRARY, THE EXCISE TAX IMPOSED ON ANY RACING ASSOCIATION OR CORPO-
RATION OR REGIONAL OFF-TRACK BETTING CORPORATION, AUTHORIZED TO CONDUCT
PARI-MUTUEL WAGERING SHALL BE SEVEN-TENTHS OF ONE PERCENT (0.7%) OF ALL
MONEY WAGERED THROUGH SUCH ASSOCIATION OR CORPORATION.
2. BEGINNING WITH STATE FISCAL YEAR TWO THOUSAND TWENTY-SIX, THE
AGGREGATE AMOUNT OF THE PARI-MUTUEL WAGERING TAX PAID BY A HARNESS TRACK
PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION IN A STATE
FISCAL YEAR SHALL NOT EXCEED THE PARI-MUTUEL WAGERING TAX ATTRIBUTABLE
TO LIVE RACING HANDLE PAID BY SUCH HARNESS TRACK IN STATE FISCAL YEAR
TWO THOUSAND TWENTY-FOUR.
S. 3009--C 108 A. 3009--C
3. ALL PARI-MUTUEL WAGERING TAXES SHALL BE COLLECTED AND REMITTED IN
THE SAME MANNER AS SUCH TAXES WERE COLLECTED AND REMITTED PRIOR TO THE
ENACTMENT OF THIS SECTION.
4. BREAKS, AS DEFINED IN SECTIONS TWO HUNDRED THIRTY-SIX, TWO HUNDRED
THIRTY-EIGHT, THREE HUNDRED EIGHTEEN, AND FOUR HUNDRED EIGHTEEN OF THIS
CHAPTER ARE NOT PERMITTED, UNLESS REQUIRED BY ANOTHER JURISDICTION
PURSUANT TO SECTION NINE HUNDRED FIVE OF THIS CHAPTER. ALL DISTRIBUTIONS
TO THE HOLDERS OF WINNING TICKETS SHALL BE CALCULATED TO THE NEAREST
PENNY.
5. NOTWITHSTANDING SUBDIVISION FOUR OF THIS SECTION, A RACETRACK MAY
ROUND TO THE NEAREST NICKEL FOR BETS MADE AT THE FACILITY, HOWEVER THE
BREAKS MUST BE DIRECTED TO THE RETIRED AND RESCUED THOROUGHBRED HORSE
AFTERCARE FUND PURSUANT TO SECTION TWO HUNDRED NINE-N OF THE TAX LAW IF
THE BET WAS MADE ON A THOROUGHBRED RACE, AND TO THE RETIRED AND RESCUED
STANDARDBRED HORSE AFTERCARE FUND PURSUANT TO SECTION TWO HUNDRED NINE-O
OF THE TAX LAW IF THE BET WAS MADE ON A STANDARDBRED RACE.
§ 2. Section 908 of the racing, pari-mutuel wagering and breeding law
is REPEALED.
§ 3. Section 1011 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:
§ 1011. Certain credit to off-track betting corporations. a. [During
the period that a franchised corporation is simulcasting from a facility
operated by such franchised corporation in the second zone as defined in
section two hundred forty-seven of this chapter to a facility operated
by such franchised corporation pursuant to section one thousand seven of
this article, any off-track betting corporation operating in a county in
which such association maintains a racetrack shall receive a credit of
twenty-five percent of the state taxes due pursuant to section five
hundred twenty-seven of this chapter on wagers placed on races conducted
by such association, provided that such corporation has entered into an
agreement with the employee organization representing the employees of
such corporation in which it has agreed not to reduce its workforce as a
result of such simulcasting.
b.] During the days that a franchised corporation is simulcasting from
a racetrack facility operated by such franchised corporation and located
in the first zone to a racetrack facility operated by such franchised
corporation located wholly within a city of one million or more, one
percent of the total wagers placed at such receiving facility shall be
paid to such city.
[c.] B. During the days that a franchised corporation is simulcasting
from a facility located wholly within a city in the first zone to a
racetrack facility operated by such franchised corporation located
partially within a city with a population in excess of one million and
partially within a county, one-half percent of the total wagers placed
at such receiving facility shall be paid to such city and one-half
percent of such wagers shall be paid to such county.
§ 4. This act shall take effect September 1, 2025.
SUBPART B
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 P of chapter 59 of the laws of 2024, is amended to read as
follows:
S. 3009--C 109 A. 3009--C
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
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-five] TWENTY-SIX; 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-five] TWENTY-SIX; 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
S. 3009--C 110 A. 3009--C
section 2 of part P of chapter 59 of the laws of 2024, 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-five] TWENTY-SIX, the amount used exclu-
sively for purses to be awarded at races conducted by such receiving
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 P of chapter 59 of the laws of 2024, 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-five] TWENTY-SIX and on any day regard-
less of whether or not a franchised corporation is conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack after June
thirtieth, two thousand [twenty-five] TWENTY-SIX. 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 P of chapter 59 of the
laws of 2024, 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-five] TWENTY-SIX. 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 P of chapter 59 of the laws of 2024, 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-five] TWENTY-SIX. 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
S. 3009--C 111 A. 3009--C
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 P of chapter
59 of the laws of 2024, 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-four] TWENTY-FIVE, 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 P of chapter 59 of the
laws of 2024, 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, [2025] 2026; 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 P of chapter 59 of the laws of 2024, 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, [2025] 2026; 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.
S. 3009--C 112 A. 3009--C
§ 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 P
of chapter 59 of the laws of 2024, is amended to read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
before April first of the year following the year of their purchase,
less an amount that shall be established and retained by such franchised
corporation of between twelve to seventeen percent of the total deposits
in pools resulting from on-track regular bets, and fourteen to twenty-
one percent of the total deposits in pools resulting from on-track
multiple bets and fifteen to twenty-five percent of the total deposits
in pools resulting from on-track exotic bets and fifteen to thirty-six
percent of the total deposits in pools resulting from on-track super
exotic bets, plus the breaks. The retention rate to be established is
subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five percent
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-five] TWENTY-SIX, 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-five] TWENTY-SIX, such payment shall
be seven-tenths of one percent of regular, multiple and exotic pools.
§ 10. This act shall take effect immediately.
SUBPART C
Section 1. Subdivision 1 and paragraphs a and b of subdivision 2 of
section 115-b of the racing, pari-mutuel wagering and breeding law, as
S. 3009--C 113 A. 3009--C
added by chapter 174 of the laws of 2013, are amended to read as
follows:
1. Notwithstanding any other provision of law to the contrary, any
racing associations and corporations, franchised corporations, and off-
track betting corporations that makes a payment of the regulatory fees
imposed by this chapter may reduce such payment by an amount equal to
the market origin credit allocated to such racing association or corpo-
ration, franchised corporation, or off-track betting corporation by the
commission. The commission shall allocate credits in an amount equal to
[ninety] EIGHTY-TWO AND SIX-TENTHS percent of the amount received from
the market origin fee paid pursuant to subdivision six of section one
thousand twelve-a of this chapter for the period from the sixteenth day
of the preceding month through the fifteenth day of the current month.
The commission shall notify participants of allocations on or before the
twentieth day of the current month.
a. [Forty] THIRTY-SIX AND SEVEN-TENTHS percent of the amount received
from the market origin fee paid pursuant to subdivision six of section
one thousand twelve-a of this chapter to regional off-track betting
corporations. Allocations to individual regional off-track betting
corporations shall be made based on a ratio where the numerator is the
regional corporation's total in-state handle for the previous calendar
year as calculated by the commission and the denominator is the total
in-state handle of all the regional off-track betting corporations for
the previous calendar year as calculated by the commission;
b. [Fifty] FORTY-FIVE AND NINE-TENTHS percent of the amount received
from the market origin fee paid pursuant to subdivision six of section
one thousand twelve-a of this chapter to the racing associations and
corporations and franchised corporations. Allocations to individual
racing associations and corporations and franchised corporations shall
be made as follows:
(i) Sixty percent to thoroughbred racing associations and franchised
corporations. Five-sixths shall be allocated to a franchised corporation
and one-sixth shall be allocated to a thoroughbred racing association.
(ii) Forty percent to harness racing associations and corporations.
Allocations to individual harness racing associations and corporations
shall be made based on a ratio where the numerator is the association's
or corporation's total in-state handle on live racing for the previous
calendar year as calculated by the commission and the denominator is the
total in-state on live handle for all harness racing associations and
corporations for the previous calendar year as calculated by the commis-
sion.
§ 2. Subdivision 6 of section 1012-a of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 243 of the laws of 2020, is
amended to read as follows:
6. multi-jurisdictional account wagering providers shall:
(A) pay a market origin fee equal to five AND FORTY-FIVE HUNDREDTHS
percent on each wager accepted from New York residents. [Multi-jurisdic-
tional account wagering providers shall]
(B) PAY AN ADDITIONAL FEE EQUAL TO ONE PERCENT ON EACH WAGER ACCEPTED
FROM NEW YORK RESIDENTS WHICH SHALL BE DIRECTED TO THE GENERAL FUND OF
THE STATE TREASURY.
(C) make the required payments to the market origin account on or
before the fifth business day of each month and such required payments
shall cover payments due for the period of the preceding calendar month;
provided, however, that such payments required to be made on April
fifteenth shall be accompanied by a report under oath, showing the total
S. 3009--C 114 A. 3009--C
of all such payments, together with such other information as the
commission may require. A penalty of five percent and interest at the
rate of one percent per month from the date the report is required to be
filed to the date the payment shall be payable in case any payments
required by this subdivision are not paid when due. If the commission
determines that any moneys received under this subdivision were paid in
error, the commission may cause the same to be refunded without interest
out of any moneys collected thereunder, provided an application therefor
is filed with the commission within one year from the time the erroneous
payment was made. The commission shall pay into the racing regulation
account, under the joint custody of the comptroller and the commission,
the total amount of the fee collected pursuant to PARAGRAPH (A) OF this
[section] SUBDIVISION.
§ 3. Subdivision 3 of section 99-i of the state finance law, as
amended by chapter 174 of the laws of 2013, is amended to read as
follows:
3. Moneys of this account shall be available to the commission to pay
for the costs of carrying out the purposes of the racing, pari-mutuel
wagering and breeding law; provided, however, an amount equal to [five]
TWELVE AND EIGHT-TENTHS percent of the amount received by the account
from the market origin fee imposed by subdivision six of section one
thousand twelve-a of the racing, pari-mutuel wagering and breeding law
shall be transferred to the state department of taxation and finance and
the department shall deem this transfer as a payment of a pari-mutuel
tax.
§ 4. 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 Subparts A through C of this act shall
be as specifically set forth in the last section of such Subparts.
PART GG
Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel
wagering and breeding law, as added by chapter 174 of the laws of 2013,
is amended to read as follows:
1. (A) For a gaming facility in zone two, there is hereby imposed a
tax on gross gaming revenues. The amount of such tax imposed shall be as
follows; provided, however, should a licensee have agreed within its
application to supplement the tax with a binding supplemental fee
payment exceeding the aforementioned tax rate, such tax and supplemental
fee shall apply for a gaming facility:
[(a)] (1) in region two, forty-five percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
[(b)] (2) in region one, thirty-nine percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
S. 3009--C 115 A. 3009--C
[(c)] (3) in region five, thirty-seven percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
(B) (1) NOTWITHSTANDING THE TAX RATES ON GROSS GAMING REVENUE FROM
SLOT MACHINES PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION, FOR THE
PERIOD OF APRIL FIRST, TWO THOUSAND TWENTY-SIX THROUGH JUNE THIRTIETH,
TWO THOUSAND THIRTY-ONE, EACH GAMING FACILITY IN ZONE TWO SHALL CONTINUE
TO BE SUBJECT TO THE SAME TAX RATE ON GROSS GAMING REVENUE FROM SLOT
MACHINES AS WAS IMPOSED IN THE PRECEDING FISCAL YEAR.
(2) AS A CONDITION OF THE LOWER SLOT MACHINE TAX RATE, THE LICENSED
GAMING FACILITY MUST:
(I) BE CURRENT ON ALL STATUTORY OBLIGATIONS TO THE STATE OR HAVE
ENTERED INTO AND BE IN COMPLIANCE WITH A REPAYMENT AGREEMENT WITH THE
STATE. IF THE COMMISSION, IN ITS SOLE DISCRETION, DETERMINES THAT A
GAMING FACILITY HAS NOT ADHERED TO THIS CONDITION FOR ANY SUCH TIME
PERIOD, THE GAMING FACILITY SHALL FORFEIT THIS LOWER SLOT MACHINE TAX
RATE FOR SUCH TIME PERIOD.
(II) HAVE PROVIDED THE INITIAL REPORT TO THE GOVERNOR, THE SPEAKER OF
THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE COMMISSION
AS REQUIRED PURSUANT TO SUBDIVISION ONE-B OF THIS SECTION.
(3) (I) EACH GAMING FACILITY SHALL PROVIDE AN ANNUAL FISCAL REPORT TO
THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF
THE SENATE, DIRECTOR OF THE DIVISION OF BUDGET AND THE COMMISSION
DETAILING ACTUAL USE OF THE FUNDS RESULTING FROM THE LOWER SLOT MACHINE
TAX RATE. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY IMPACT
ON EMPLOYMENT LEVELS SINCE RECEIVING THE LOWER SLOT MACHINE TAX RATE, AN
ACCOUNTING OF THE USE OF SUCH FUNDS, ANY OTHER MEASURES IMPLEMENTED TO
IMPROVE THE FINANCIAL STABILITY OF THE GAMING FACILITY AND ANY OTHER
INFORMATION AS DEEMED NECESSARY BY THE COMMISSION. SUCH REPORT SHALL BE
DUE NO LATER THAN JANUARY FIRST OF EACH YEAR AND SHALL BE POSTED ON THE
COMMISSION WEBSITE.
(II) AT THE CONCLUSION OF EACH YEAR, A LICENSED GAMING FACILITY SHALL
PROVIDE AN AFFIRMATION IN WRITING TO THE COMMISSION STATING THE EMPLOY-
MENT GOAL IN SUBDIVISION ONE-B OF THIS SECTION WAS EITHER MET OR NOT MET
AS DESCRIBED IN THE INITIAL REPORT. IF THE LICENSED GAMING FACILITY IS
FOUND TO HAVE NOT ADHERED TO THE PLAN BY THE COMMISSION, THEN THE APPLI-
CABLE SLOT TAX RATE MAY BE ADJUSTED AT THE DISCRETION OF THE COMMISSION
AS FOLLOWS:
(A) IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN FIFTY PERCENT LESS
THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY
TEN PERCENTAGE POINTS.
(B) IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN FORTY PERCENT LESS
THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY
EIGHT PERCENTAGE POINTS.
(C) IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN THIRTY PERCENT LESS
THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY
SIX PERCENTAGE POINTS.
(D) IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN TWENTY PERCENT LESS
THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY
FOUR PERCENTAGE POINTS.
(E) IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN TEN PERCENT LESS THAN
THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY TWO
PERCENTAGE POINTS.
(III) SUCH FINDING AND THE REASONING THEREOF SHALL OCCUR NO LATER THAN
THIRTY DAYS FOLLOWING SUBMISSION OF THE WRITTEN AFFIRMATION.
S. 3009--C 116 A. 3009--C
§ 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 1-b to read as follows:
1-B. AS A CONDITION OF THE LOWER SLOT MACHINE TAX RATE TAKING EFFECT
APRIL FIRST, TWO THOUSAND TWENTY-SIX, PURSUANT TO SUBDIVISION ONE OF
THIS SECTION, THE LICENSED GAMING FACILITY MUST PROVIDE AN INITIAL
REPORT TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRES-
IDENT OF THE SENATE, AND THE COMMISSION CLEARLY DETAILING THE ESTAB-
LISHED QUARTERLY AND ANNUAL EMPLOYMENT GOALS OF INCREASING FULL-TIME
EMPLOYEES FOR EACH YEAR THAT THE FACILITY WILL RECEIVE A LOWER TAX RATE
AND ANY SUBSTANTIAL CHANGES TO THE INITIAL PLAN. THIS REPORT IS DUE NO
LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-SIX AND SHALL BE POSTED ON
THE COMMISSION'S WEBSITE.
§ 3. Section 2 of part OOO of chapter 59 of the laws of 2021 amending
the racing, pari-mutuel wagering and breeding law relating to the tax
on gaming revenues, is amended to read as follows:
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed [five years after such date] APRIL 1, 2026.
§ 4. This act shall take effect immediately; provided however, that
section one of this act shall take effect on the same date as the rever-
sion of subdivision 1 of section 1351 of the racing, pari-mutuel wager-
ing and breeding law as provided in section 2 of part OOO of chapter 59
of the laws of 2021, as amended; provided further, that sections one and
two of this act shall expire and be deemed repealed July 1, 2031.
PART HH
Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel
wagering and breeding law, as amended by section 1 of part O of chapter
59 of the laws of 2024, 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 two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
S. 3009--C 117 A. 3009--C
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
d. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-four to March thirty-
first, two thousand twenty-five, 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 one million 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 expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
e. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-FIVE TO MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-SIX, ONE MILLION DOLLARS IN THE CAPITAL OFF-
TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED PURSU-
ANT TO THIS SECTION SHALL BE AVAILABLE TO SUCH OFF-TRACK BETTING
CORPORATION FOR THE PURPOSES OF EXPENDITURES NECESSARY TO ACCEPT AUTHOR-
IZED WAGERS; PAST DUE STATUTORY OBLIGATIONS TO NEW YORK LICENSED OR
FRANCHISED RACING CORPORATIONS OR ASSOCIATIONS; PAST DUE CONTRACTUAL
OBLIGATIONS DUE TO OTHER RACING ASSOCIATIONS OR ORGANIZATIONS FOR THE
COST OF ACQUIRING A SIMULCAST SIGNAL; PAST DUE STATUTORY PAYMENT OBLI-
GATIONS DUE TO THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT
FUND CORPORATION, AGRICULTURE AND NEW YORK STATE HORSE BREEDING DEVELOP-
MENT FUND, AND THE HARRY M. ZWEIG MEMORIAL FUND FOR EQUINE RESEARCH; AND
PAST DUE OBLIGATIONS DUE THE STATE.
F. Prior to a corporation being able to utilize the funds authorized
by paragraph c [or], d OR E of this subdivision, the corporation must
attest that the surcharge monies from section five hundred thirty-two of
this chapter are being held separate and apart from any amounts other-
wise authorized to be retained from pari-mutuel pools and all surcharge
monies have been and will continue to be paid to the localities as
prescribed in law. Once this condition is satisfied, 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 necessary to detail
such plan as determined by the commission. Upon review, the commission
shall make a determination as to whether the requirements of this para-
graph have been satisfied and notify the corporation of expenditure plan
S. 3009--C 118 A. 3009--C
approval. In the event the commission determines the requirements of
this paragraph have not been satisfied, the commission shall notify the
corporation of all deficiencies necessary for approval. As a condition
of such expenditure plan approval, the corporation shall provide a
report to the commission no later than the last day of the calendar year
for which the funds are requested, which shall include an accounting of
the use of such funds. At such time, the commission may cause an inde-
pendent audit to be conducted of the corporation's books to ensure that
all moneys were spent as indicated in such approved plan. The audit
shall be paid for from money in the fund established by this section. If
the audit determines that a corporation used the money authorized under
this section for a purpose other than one listed in their expenditure
plan, then the corporation shall reimburse the capital acquisition fund
for the unauthorized amount.
§ 2. This act shall take effect immediately.
PART II
Section 1. Section 703 of the racing, pari-mutuel wagering and breed-
ing law is amended by adding a new subdivision 1-a to read as follows:
1-A. ALL AMOUNTS NECESSARY TO CONDUCT THE RESEARCH PROJECT SPECIFIED
IN SUBDIVISION SEVEN OF SECTION SEVEN HUNDRED FOUR OF THIS ARTICLE SHALL
BE APPROPRIATED OR TRANSFERRED TO THE FUND FROM THE GENERAL FUND OF THE
STATE TREASURY. SUCH FUNDS SHALL BE USED FOR THE PURPOSES CONTAINED IN
THE AGREEMENT ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF SECTION SEVEN
HUNDRED FOUR OF THIS ARTICLE, PROVIDED THAT SUCH AMOUNT SHALL NOT EXCEED
WHAT IS NECESSARY TO COVER ALL EXPENSES AS CONTAINED IN SUCH AGREEMENT.
§ 2. Section 704 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 7 to read as follows:
7. (A) THE MONEYS APPROPRIATED OR TRANSFERRED TO THE FUND FROM THE
GENERAL FUND OF THE STATE TREASURY PURSUANT TO SUBDIVISION ONE-A OF
SECTION SEVEN HUNDRED THREE OF THIS ARTICLE SHALL BE EXPENDED FOR A
THREE-YEAR RESEARCH PROJECT CONDUCTED PURSUANT TO AN AGREEMENT BETWEEN
THE DEAN OF THE CORNELL UNIVERSITY COLLEGE OF VETERINARY MEDICINE AND
THE EXECUTIVE DIRECTOR OF THE COMMISSION. SUCH AGREEMENT SHALL, AT A
MINIMUM, REQUIRE THE FOLLOWING:
(I) PROPOSED RESEARCH TO IDENTIFY THE INCIDENT OF FETLOCK FRACTURES
AND PRE-FRACTURE PATHOLOGY IN THOROUGHBRED RACEHORSES, WITH AND WITHOUT
LAMENESS;
(II) PROPOSED RESEARCH TO DETERMINE THE SENSITIVITY AND SPECIFICITY OF
STANDING COMPUTED TOMOGRAPHY, POSITRON EMISSION TOMOGRAPHY, AND MAGNETIC
RESONANCE IMAGING OF THOROUGHBRED RACEHORSES COMPARED TO THAT OF DIGITAL
RADIOGRAPHS;
(III) USE OF PHOTO-COUNTING COMPUTED TOMOGRAPHY AND HIGH FIELD MAGNET-
IC RESONANCE IMAGING TO FURTHER DEFINE EARLY BONE PATHOLOGY IN THOROUGH-
BRED RACEHORSES THAT SUFFER FATAL FRACTURES OF THE FETLOCK JOINT, TO
FURTHER CHARACTERIZE BLOOD BIOMARKER FINDINGS IN HEALTHY AND CLINICALLY
LAME HORSES IN A LARGE POPULATION OF THOROUGHBRED RACEHORSES;
(IV) ATTEMPTED REFINEMENT OF A RISK FACTOR INDEX FOR FATAL MUSCULOSK-
ELETAL INJURY FOR THOROUGHBRED RACING BASED ON EPIDEMIOLOGICAL FINDINGS,
PRELIMINARY SCANNING TECHNOLOGY, CLINICAL EXAMINATION, AND ADVANCE IMAG-
ING; AND
(V) THAT AN ANNUAL UPDATE SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY
PRESIDENT OF THE SENATE, AND SPEAKER OF THE ASSEMBLY REGARDING THE
PROGRESSION OF THE RESEARCH PROJECT. SUCH ANNUAL UPDATE TO THE GOVERNOR,
TEMPORARY PRESIDENT OF THE SENATE, AND SPEAKER OF THE ASSEMBLY SHALL BE
S. 3009--C 119 A. 3009--C
DUE NO LATER THAN DECEMBER FIRST EACH YEAR. THE FINAL REPORT OUTLINED IN
PARAGRAPH (C) OF THIS SUBDIVISION SHALL SATISFY THE ANNUAL REPORT
REQUIREMENT OUTLINED IN THIS SUBPARAGRAPH FOR THE LAST YEAR OF THE
STUDY.
(B) THE MONEYS APPROPRIATED OR TRANSFERRED TO THE FUND FROM THE GENER-
AL FUND OF THE STATE TREASURY PURSUANT TO SUBDIVISION ONE-A OF SECTION
SEVEN HUNDRED THREE OF THIS ARTICLE MAY BE USED TO PURCHASE EQUIPMENT
AND FUND STAFFING NEEDS NECESSARY TO CARRY OUT THE RESEARCH TASKS SPECI-
FIED IN PARAGRAPH (A) OF THIS SUBDIVISION.
(C) A FINAL REPORT THAT DESCRIBES THE RESULTS OF THE RESEARCH PROJECT
SHALL BE PROVIDED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, THE COMMISSION, THE FRANCHISED
CORPORATION, AND ANY ENTITY LICENSED PURSUANT TO ARTICLE TWO OF THIS
CHAPTER. SUCH FINAL REPORT SHALL INCLUDE, AT A MINIMUM:
(I) AN ACCOUNTING OF ALL EXPENDITURES RELATED TO THE RESEARCH PROJECT
OUTLINED IN THIS SUBDIVISION, INCLUDING EXPENDITURES FOR EQUIPMENT,
SUPPLIES, PERSONNEL, OPERATIONS, AND ADMINISTRATION;
(II) A DESCRIPTION OF THE PROCEDURES FOR SELECTING HORSE PARTICIPANTS
IN THE RESEARCH PROJECT OUTLINED IN THIS SUBDIVISION, INCLUDING CRITERIA
FOR SELECTION AND ANY SCREENING OR ELIGIBILITY REQUIREMENTS; AND
(III) A SUMMARY OF FINDINGS GATHERED FROM THE RESEARCH PROJECT
OUTLINED IN THIS SUBDIVISION, INCLUDING AN ANALYSIS OF RISK FACTORS
CONTRIBUTING TO RACEHORSE INJURIES AND CONCLUSIONS DRAWN REGARDING SAFE-
TY PROTOCOLS.
(D) THE RESEARCHER MAY ALSO MAKE RECOMMENDATIONS FOR CHANGES TO ANY
EXISTING RULES OR REGULATIONS THAT THE RESEARCHER MAY DETERMINE WOULD BE
HELPFUL TOWARD MAINTAINING THE HEALTH OF THE EQUINE ATHLETE.
(E) TO THE EXTENT PRACTICABLE, SCREENINGS AND ADVANCED IMAGING
SERVICES CONDUCTED PURSUANT TO THIS AGREEMENT MAY BE CONDUCTED NEAR
RACETRACKS AT BOTH BELMONT AND SARATOGA.
(F) (I) SCREENINGS AND ADVANCED IMAGING SERVICES OF HORSES ENROLLED IN
THE RESEARCH PROJECT SHALL BE OFFERED TO HORSEMEN FREE OF CHARGE.
(II) SUBJECT TO AVAILABILITY, CORNELL RUFFIAN MAY PROVIDE SCREENINGS
AND IMAGING SERVICES FOR NEW YORK HORSES THAT ARE NOT ENROLLED IN THE
RESEARCH PROJECT. CORNELL RUFFIAN MAY ONLY CHARGE SUCH OWNERS AND TRAIN-
ERS ITS ACTUAL COSTS FOR ANY SCREENING OR IMAGING SERVICE PROVIDED TO
SUCH NON-ENROLLED HORSE.
(III) CORNELL RUFFIAN SHALL HAVE NO RESPONSIBILITY TO INTERPRET OR
ANALYZE THE RESULTS OF ANY SCAN OR ADVANCED IMAGE PROVIDED TO AN OWNER
OR TRAINER OF A NON-ENROLLED HORSE.
(IV) FOR PURPOSES OF THIS PARAGRAPH, A NEW YORK HORSE IS A HORSE THAT
HAS BEEN STABLED IN NEW YORK FOR FOUR OF THE SIX MONTHS IMMEDIATELY
PRECEDING THE DATE OF THE SCREENING OR ADVANCE IMAGING.
(V) THE COSTS CHARGED ASSOCIATED WITH SCREENINGS AND ADVANCED IMAGES
AUTHORIZED PURSUANT TO THIS SUBPARAGRAPH SHALL BE INCLUDED IN THE ANNUAL
UPDATE OUTLINED IN SUBPARAGRAPH (V) OF PARAGRAPH (A) OF THIS SUBDIVI-
SION.
(G) ANY SCREENING AND IMAGING EQUIPMENT PURCHASED PURSUANT TO THIS
SUBDIVISION SHALL BE OWNED BY THE CORNELL UNIVERSITY COLLEGE OF VETERI-
NARY MEDICINE.
§ 3. Section 208 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 10 to read as follows:
10. IT IS INCUMBENT UPON THE FRANCHISED CORPORATION TO ENSURE THE
HEALTH AND SAFETY OF ITS EQUINE PARTICIPANTS. TO ACCOMPLISH THAT GOAL,
THE FRANCHISED CORPORATION SHALL, BY SEPTEMBER FIRST, TWO THOUSAND TWEN-
TY-FIVE, MAKE A ONE-TIME CONTRIBUTION OF TWO MILLION DOLLARS TO THE
S. 3009--C 120 A. 3009--C
HARRY M. ZWEIG MEMORIAL FUND, ESTABLISHED UNDER SECTION SEVEN HUNDRED
ONE OF THIS CHAPTER, FOR THE SOLE PURPOSE OF OFF-SETTING THE COST OF
PURCHASING SCREENING AND IMAGING EQUIPMENT FOR THE RESEARCH PROJECT AS
SPECIFIED IN SUBDIVISION SEVEN OF SECTION SEVEN HUNDRED FOUR OF THIS
CHAPTER. THE HARRY M. ZWEIG MEMORIAL FUND SHALL HOLD SUCH MONEY IN AN
ESCROW ACCOUNT UNTIL SUCH TIME AS IT IS NECESSARY TO PURCHASE THE EQUIP-
MENT REQUIRED TO CONDUCT THE RESEARCH. THE MONEY IN THE ESCROW ACCOUNT
SHALL NOT BE USED FOR ANY PURPOSES OTHER THAN PURCHASING EQUIPMENT TO BE
USED FOR SUCH RESEARCH.
§ 4. This act shall take effect immediately, and shall expire and be
deemed repealed September 1, 2028.
PART JJ
Section 1. Subdivision (e) of section 42 of the tax law, as amended by
section 1 of subpart B of part B of chapter 59 of the laws of 2022, is
amended to read as follows:
(e) For taxable years beginning on or after January first, two thou-
sand seventeen and before January first, two thousand eighteen, the
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and two hundred
fifty dollars. For taxable years beginning on or after January first,
two thousand eighteen and before January first, two thousand nineteen,
the amount of the credit allowed under this section shall be equal to
the product of the total number of eligible farm employees and three
hundred dollars. For taxable years beginning on or after January first,
two thousand nineteen and before January first, two thousand twenty, the
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and five hundred
dollars. For taxable years beginning on or after January first, two
thousand twenty and before January first, two thousand twenty-one, the
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and four hundred
dollars. For taxable years beginning on or after January first, two
thousand twenty-one and before January first, two thousand twenty-two,
the amount of the credit allowed under this section shall be equal to
the product of the total number of eligible farm employees and six
hundred dollars. For taxable years beginning on or after January first,
two thousand twenty-two and before January first, two thousand [twenty-
six] TWENTY-NINE, the amount of the credit allowed under this section
shall be equal to the product of the total number of eligible farm
employees and twelve hundred dollars.
§ 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending
the tax law relating to creating a farm workforce retention credit, as
amended by section 2 of subpart B of part B of chapter 59 of the laws of
2022, is amended to read as follows:
§ 5. This act shall take effect immediately and shall apply only to
taxable years beginning on or after January 1, 2017 and before January
1, [2026] 2029.
§ 3. This act shall take effect immediately.
PART KK
Section 1. The agriculture and markets law is amended by adding a new
article 25-C to read as follows:
S. 3009--C 121 A. 3009--C
ARTICLE 25-C
FARM EMPLOYER OVERTIME CREDIT PROGRAM
SECTION 333. SHORT TITLE.
334. DEFINITIONS.
335. TAX CREDIT; OVERTIME EXPENSE CERTIFICATION.
§ 333. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "FARM EMPLOYER OVERTIME CREDIT PROGRAM."
§ 334. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF AGRICULTURE AND
MARKETS.
2. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF AGRICULTURE AND MARKETS.
3. "ELIGIBLE FARM EMPLOYEE" SHALL MEAN AN INDIVIDUAL WHO MEETS THE
DEFINITION OF A "FARM LABORER" UNDER SECTION TWO OF THE LABOR LAW WHO IS
EMPLOYED IN NEW YORK STATE BY (A) A FARM EMPLOYER OR (B) A QUALIFIED
PROFESSIONAL EMPLOYER ORGANIZATION.
4. "ELIGIBLE OVERTIME" SHALL MEAN THE AGGREGATE NUMBER OF HOURS OF
WORK PERFORMED DURING THE CALENDAR YEAR BY AN ELIGIBLE FARM EMPLOYEE
THAT IN ANY CALENDAR WEEK EXCEEDS THE OVERTIME WORK THRESHOLD SET BY THE
COMMISSIONER OF LABOR PURSUANT TO THE RECOMMENDATION OF THE FARM LABOR-
ERS WAGE BOARD, PROVIDED THAT WORK PERFORMED IN SUCH CALENDAR WEEK IN
EXCESS OF SIXTY HOURS SHALL NOT BE INCLUDED.
5. "FARM EMPLOYER" SHALL MEAN A CORPORATION (INCLUDING A NEW YORK S
CORPORATION), A SOLE PROPRIETORSHIP, A LIMITED LIABILITY COMPANY OR A
PARTNERSHIP WHOSE PRINCIPAL BUSINESS IS FARMING ACTIVITY.
6. "FARMING ACTIVITY" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE CULTI-
VATION OF CROPS, OPERATION, OR MANAGEMENT OF A FARM FOR GAIN OR PROFIT,
INCLUDING THE OPERATION OR MANAGEMENT OF LIVESTOCK, DAIRY, POULTRY,
AQUACULTURE, FRUIT, FUR-BEARING ANIMAL, FIELD CROP, HORTICULTURAL
SPECIALTY, AND VEGETABLE FARMS.
7. "OVERTIME EXPENSE" SHALL MEAN THE PRODUCT OF (A) THE ELIGIBLE OVER-
TIME HOURS WORKED DURING THE CALENDAR YEAR BY THE ELIGIBLE FARM EMPLOYEE
AND (B) THE OVERTIME RATE PAID TO THE ELIGIBLE FARM EMPLOYEE LESS SUCH
ELIGIBLE FARM EMPLOYEE'S REGULAR RATE OF PAY.
8. "QUALIFIED FARM EMPLOYER" SHALL MEAN A FARM EMPLOYER THAT:
(A) PRIMARILY ENGAGED IN FARMING ACTIVITY DURING THE CALENDAR YEAR;
(B) UTILIZED ELIGIBLE FARM EMPLOYEES IN ITS FARMING ACTIVITY DURING
THE CALENDAR YEAR; AND
(C) DIRECTLY, OR INDIRECTLY THROUGH A QUALIFIED PROFESSIONAL EMPLOYER
ORGANIZATION, PAID ELIGIBLE OVERTIME TO ELIGIBLE FARM EMPLOYEES DURING
THE CALENDAR YEAR.
9. "QUALIFIED PROFESSIONAL EMPLOYER ORGANIZATION" SHALL MEAN AN ENTITY
WHO PROVIDES REMUNERATION TO OR OTHERWISE EMPLOYS ELIGIBLE FARM EMPLOY-
EES ON BEHALF OF A FARM EMPLOYER.
§ 335. TAX CREDIT; OVERTIME EXPENSE CERTIFICATION. 1. A QUALIFIED FARM
EMPLOYER WHO IS ISSUED AN OVERTIME EXPENSE CERTIFICATE BY THE DEPARTMENT
MAY BE ALLOWED A CREDIT PURSUANT TO SECTION FORTY-TWO-A OF THE TAX LAW
EQUAL TO ONE HUNDRED EIGHTEEN PERCENT OF THE AGGREGATE AMOUNT OF OVER-
TIME EXPENSES CERTIFIED BY THE DEPARTMENT PURSUANT TO THIS SECTION. A
QUALIFIED FARM EMPLOYER WHO IS ISSUED A PRELIMINARY OVERTIME EXPENSE
CERTIFICATE MAY BE ELIGIBLE TO RECEIVE AN ADVANCE PAYMENT OF SUCH TAX
CREDIT PURSUANT TO SUBDIVISION (E) OF SECTION FORTY-TWO-A OF THE TAX
LAW.
2. CERTIFICATE APPLICATION AND APPROVAL PROCESS. A FARM EMPLOYER MUST
SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER BY THE
FIRST OF FEBRUARY AFTER THE END OF THE CALENDAR YEAR. AS PART OF THE
APPLICATION, EACH FARM EMPLOYER SHALL PROVIDE EVIDENCE IN THE FORM AND
S. 3009--C 122 A. 3009--C
MANNER PRESCRIBED BY THE COMMISSIONER SUFFICIENT TO ESTABLISH THAT IT IS
A QUALIFIED FARM EMPLOYER AND TO DETERMINE THE OVERTIME EXPENSE PER
ELIGIBLE FARM EMPLOYEE PAID BY SUCH QUALIFIED FARM EMPLOYER DURING THE
PRECEDING CALENDAR YEAR. IF, AFTER REVIEWING A FARM EMPLOYER'S COMPLETED
APPLICATION, THE DEPARTMENT DETERMINES THAT THE FARM EMPLOYER IS A QUAL-
IFIED FARM EMPLOYER, THE DEPARTMENT MAY ISSUE TO SUCH QUALIFIED FARM
EMPLOYER AN OVERTIME EXPENSE CERTIFICATE FOR EACH YEAR THAT THE ELIGI-
BILITY CRITERIA ARE SATISFIED THAT SPECIFIES (A) THE TOTAL NUMBER OF
ELIGIBLE FARM EMPLOYEES WHO WERE PAID ELIGIBLE OVERTIME BY THE QUALIFIED
FARM EMPLOYER; (B) THE AGGREGATE AMOUNT OF OVERTIME EXPENSE PAID BY THE
QUALIFIED FARM EMPLOYER; AND (C) THE CALENDAR YEAR IN WHICH SUCH OVER-
TIME EXPENSE WAS PAID.
3. PRELIMINARY OVERTIME EXPENSE CERTIFICATE. A FARM EMPLOYER WHO
INTENDS TO REQUEST AN ADVANCE PAYMENT OF THE TAX CREDIT PURSUANT TO
SUBDIVISION (E) OF SECTION FORTY-TWO-A OF THE TAX LAW MUST SUBMIT A
COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER BY SEPTEMBER
THIRTIETH OF THE CALENDAR YEAR. AS PART OF THE APPLICATION, EACH FARM
EMPLOYER SHALL PROVIDE EVIDENCE IN THE FORM AND MANNER PRESCRIBED BY THE
COMMISSIONER SUFFICIENT TO ESTABLISH THAT IT IS A QUALIFIED FARM EMPLOY-
ER AND TO DETERMINE THE OVERTIME EXPENSE PER ELIGIBLE FARM EMPLOYEE PAID
BY SUCH QUALIFIED FARM EMPLOYER FROM JANUARY FIRST THROUGH JULY THIRTY-
FIRST OF SUCH CALENDAR YEAR. IF, AFTER REVIEWING A FARM EMPLOYER'S
COMPLETED APPLICATION, THE DEPARTMENT DETERMINES THAT THE FARM EMPLOYER
IS A QUALIFIED FARM EMPLOYER, THE DEPARTMENT MAY ISSUE TO SUCH QUALIFIED
FARM EMPLOYER A PRELIMINARY OVERTIME EXPENSE CERTIFICATE THAT SPECIFIES
(A) THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES WHO WERE PAID ELIGIBLE
OVERTIME BY THE QUALIFIED FARM EMPLOYER FROM JANUARY FIRST THROUGH JULY
THIRTY-FIRST OF SUCH CALENDAR YEAR; AND (B) THE AGGREGATE AMOUNT OF
OVERTIME EXPENSE PAID BY THE QUALIFIED FARM EMPLOYER DURING SUCH PERIOD.
§ 2. Section 42-a of the tax law, as added by section 2 of subpart C
of part B of chapter 59 of the laws of 2022, is amended to read as
follows:
§ 42-a. Farm employer overtime credit. (a) Notwithstanding subdivision
(f) of section forty-two of this article, a taxpayer that is [a] AN
ELIGIBLE farm employer or an owner of [a] AN ELIGIBLE farm employer
shall be eligible for a credit against the tax imposed under article
nine-A or twenty-two of this chapter, pursuant to the provisions refer-
enced in subdivision [(i)] (H) of this section.
(b) [A farm employer is a corporation (including a New York S corpo-
ration), a sole proprietorship, a limited liability company or a part-
nership that is an eligible farmer.
(c)] For purposes of this section, the term "eligible [farmer] FARM
EMPLOYER" means a taxpayer WHO RECEIVED AN OVERTIME EXPENSE CERTIFICATE
PURSUANT TO SECTION THREE HUNDRED THIRTY-FIVE OF THE AGRICULTURE AND
MARKETS LAW AND whose federal gross income from farming as defined in
subsection (n) of section six hundred six of this chapter for the taxa-
ble year is at least two-thirds of excess federal gross income. Excess
federal gross income means the amount of federal gross income from all
sources for the taxable year in excess of thirty thousand dollars. For
purposes of this section, payments from the state's farmland protection
program, administered by the department of agriculture and markets,
shall be included as federal gross income from farming for otherwise
eligible farmers.
[(d) An eligible farm employee is an individual who meets the defi-
nition of a "farm laborer" under section two of the labor law who is
S. 3009--C 123 A. 3009--C
employed by a farm employer in New York state, but excluding general
executive officers of the farm employer.
(e) Eligible overtime is the aggregate number of hours of work
performed during the taxable year by an eligible farm employee that in
any calendar week exceeds the overtime work threshold set by the commis-
sioner of labor pursuant to the recommendation of the farm laborers wage
board, provided that work performed in such calendar week in excess of
sixty hours shall not be included.
(f)] (C) Special rules. If more than fifty percent of such eligible
[farmer's] FARM EMPLOYER'S federal gross income from farming is from the
sale of wine from a licensed farm winery as provided for in article six
of the alcoholic beverage control law, or from the sale of cider from a
licensed farm cidery as provided for in section fifty-eight-c of the
alcoholic beverage control law, then an eligible farm employee of such
eligible farmer shall be included for purposes of calculating the amount
of credit allowed under this section only if such eligible farm employee
is employed by such eligible farmer on qualified agricultural property
as defined in paragraph four of subsection (n) of section six hundred
six of this chapter.
[(g)] (D) The amount of the credit allowed under this section shall be
equal to ONE HUNDRED EIGHTEEN PERCENT OF the aggregate amount of [such
credit allowed per eligible farm employee, as follows. The amount of the
credit allowed per eligible farm employee shall be equal to one hundred
eighteen percent of the product of (1) the eligible overtime worked
during the taxable year by the eligible farm employee and (2) the over-
time rate paid by the farm employer to the eligible farm employee less
such employee's regular rate of pay] OVERTIME EXPENSE PAID BY THE QUALI-
FIED FARM EMPLOYER AS CERTIFIED BY THE DEPARTMENT OF AGRICULTURE AND
MARKETS PURSUANT TO SECTION THREE HUNDRED THIRTY-FIVE OF THE AGRICULTURE
AND MARKETS LAW.
[(h)(1) Taxpayers] (E) A TAXPAYER WHO RECEIVED A PRELIMINARY OVERTIME
EXPENSE CERTIFICATE PURSUANT TO SECTION THREE HUNDRED THIRTY-FIVE OF THE
AGRICULTURE AND MARKETS LAW shall have the option to request an advance
payment of the portion of the amount of tax credit they are allowed
under this section [for the amount of eligible overtime] EQUAL TO ONE
HUNDRED EIGHTEEN PERCENT OF AGGREGATE AMOUNT OF OVERTIME EXPENSE that
the farm employer paid from January first through July thirty-first, AS
CERTIFIED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS PURSUANT TO
SECTION THREE HUNDRED THIRTY-FIVE OF THE AGRICULTURE AND MARKETS LAW.
[To be eligible for the advance payment, the farm employer must submit
by September thirtieth a properly completed application to the depart-
ment of agriculture and markets, in a form prescribed by the commission-
er of agriculture and markets, that demonstrates how much the farm
employer paid in eligible overtime during that period. After reviewing a
farm employer's completed application for the advance payment of a
portion of the amount of tax credit allowed under this section, the
department of agriculture and markets may issue to that farm employer a
certificate of tax credit that specifies the exact amount of the tax
credit under this article that a taxpayer may claim as an advance
payment pursuant to this subdivision.
(2)] A taxpayer must submit [a] AN ADVANCED PAYMENT request to the
department in the manner prescribed by the commissioner after it has
been issued a PRELIMINARY OVERTIME EXPENSE certificate [of tax credit]
by the department of agriculture and markets pursuant to [paragraph one
of this subdivision] ARTICLE TWENTY-FIVE-C OF THE AGRICULTURE AND
MARKETS LAW (or such certificate has been issued to a partnership,
S. 3009--C 124 A. 3009--C
limited liability company or subchapter S corporation in which it is a
partner, member or shareholder, respectively, that is a farm employer),
but such request must be submitted no later than November first of the
taxable year for which the credit is being claimed. For those taxpayers
who have requested an advance payment and for whom the commissioner has
determined to be eligible for this credit, the commissioner shall
advance a payment of the portion of the amount of tax credit allowed to
the taxpayer. The taxpayer will claim on the taxpayers' return for the
taxable year the portion of the amount of tax credit allowed for eligi-
ble overtime paid by the farm employer from August first through Decem-
ber thirty-first. The taxpayer must properly reconcile the advance
payment of tax credit allowed under this subdivision on the taxpayer's
return.
[(3)] (F) If a taxpayer that has received an advance payment is not an
eligible [farmer] FARM EMPLOYER OR AN OWNER OF AN ELIGIBLE FARM EMPLOYER
for the taxable year for which it received an advance payment, the
taxpayer shall be required to add back as tax the amount of advance
payment the taxpayer received during the taxable year.
[(4)] (G) Notwithstanding any provision of this chapter, employees of
the department of agriculture and markets and the department shall be
allowed to share and exchange:
(i) information derived from tax returns or reports that is relevant
to a taxpayer's eligibility for the credit allowed by this section;
(ii) information regarding the credit applied for, allowed or claimed
pursuant to this section and regarding taxpayers that are applying for
the credit or that are claiming the credit; and
(iii) information collected by the department of agriculture and
markets and exchanged between the department of agriculture and markets
and the department pursuant to this section shall not be subject to
disclosure or inspection under the state's freedom of information law.
[(i)] (H) Cross references: For application of the credit provided in
this section, see the following provisions of this chapter:
(1) Article 9-A: Section 210-B, subdivision 58.
(2) Article 22: Section 606, subsection (nnn).
§ 3. Notwithstanding any provision of law to the contrary, a farm
employer shall be allowed a credit, pursuant to section forty-two-a of
the tax law, for the eligible overtime indirectly paid to eligible farm
employees through a professional employer organization during the two
thousand twenty-four and/or two thousand twenty-five calendar years as
if such remuneration was paid directly by the farm employer to the
eligible farm employees. A farm employer must apply for and receive
certification by the department of agriculture and markets of the aggre-
gate amount of eligible overtime indirectly paid by the farm employer to
eligible farm employees through a professional employer organization
during the two thousand twenty-four and two thousand twenty-five calen-
dar years. A farm employer shall have the option to request an advance
payment of the credit, pursuant to subdivision (h) of section
forty-two-a of the tax law, for the eligible overtime indirectly paid by
the farm employer during the period from January first, two thousand
twenty-four, through July thirty-first, two thousand twenty-five, in
which case the farm employer must apply for and receive preliminary
certification by the department of agriculture and markets of the eligi-
ble overtime indirectly paid by the farm employer to eligible farm
employees during such period. The farm employer may request an advance
credit from the commissioner of taxation and finance in the form and
manner prescribed by such commissioner; provided, however, if a taxpayer
S. 3009--C 125 A. 3009--C
that has received an advance payment is not an eligible farmer for the
taxable year when the indirect overtime expense was incurred, the
taxpayer shall be required to add back as tax the amount of advance
payment the taxpayer received.
§ 4. This act shall take effect immediately; provided, however, that
sections one and two of this act shall apply to taxable years beginning
on or after January 1, 2026; and provided further that section three of
this act shall apply to taxable years beginning on or after January 1,
2025, and before January 1, 2026.
PART LL
Section 1. Section 4 of part H of chapter 59 of the laws of 2024
amending the tax law relating to the filing of amended returns under
article 28 thereof, is amended to read as follows:
§ 4. This act shall take effect immediately, provided, however, the
amendments made by section one of this act shall apply to returns filed
or amended [for periods commencing] on and after December 1, 2024.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 20, 2024.
PART MM
Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of
section 1612 of the tax law is amended by adding a new clause (E) to
read as follows:
(E) NOTWITHSTANDING CLAUSE (B) OF THIS SUBPARAGRAPH, BEGINNING ON JUNE
FIRST, TWO THOUSAND TWENTY-FIVE, WHEN THE VENDOR TRACK IS LOCATED IN THE
COUNTY OF GENESEE AND WITHIN FORTY MILES OF A NATIVE AMERICAN CLASS III
GAMING FACILITY AS DEFINED IN 25 U.S.C. §2703(8), AT A RATE OF FIFTY-SIX
PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT
FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, THAT THE FOLLOW-
ING ADDITIONAL PROVISIONS SHALL APPLY TO SUCH VENDOR TRACK:
(1) FROM THE VENDOR FEE AMOUNT EQUIVALENT TO FIFTY-SIX PERCENT OF THE
TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSU-
ANT TO THIS CLAUSE, A PORTION EQUIVALENT TO FIVE PERCENT OF THE TOTAL
REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES SHALL BE
DEFINED AS AND HEREINAFTER BE REFERRED TO AS THE "ADDITIONAL VENDOR
FEE".
(2) SUCH ADDITIONAL VENDOR FEE SHALL BE ACCOUNTED FOR SEPARATELY BY
THE VENDOR TRACK AND SHALL BE USED EXCLUSIVELY FOR THE FOLLOWING
PURPOSES, IN PROPORTIONS DETERMINED ANNUALLY BY SUCH VENDOR TRACK IN
ACCORDANCE WITH A PLAN SUBMITTED TO THE GAMING COMMISSION PURSUANT TO
SUBCLAUSE FOUR OF THIS CLAUSE:
(A) REDUCING THE COSTS PAID BY NON-EXECUTIVE AND NON-MANAGERIAL
EMPLOYEES OF SUCH VENDOR TRACK FOR HEALTHCARE COVERAGE OFFERED BY SUCH
VENDOR TRACK;
(B) INCREASING SALARIES, HOURLY WAGES, OR BENEFITS PAID TO NON-EXECU-
TIVE AND NON-MANAGERIAL EMPLOYEES OF SUCH VENDOR TRACK, OR FUNDING
INCREASES IN THE NUMBER OF FULL-TIME EQUIVALENT NON-EXECUTIVE AND NON-
MANAGERIAL EMPLOYEES; AND
(C) SUPPLEMENTING DISTRIBUTIONS PAYABLE TO PARTICIPATING COUNTIES OR
MUNICIPALITIES AS REQUIRED UNDER EXISTING LAW.
(3) ADDITIONAL VENDOR FEE REVENUE UTILIZED PURSUANT TO THIS CLAUSE
SHALL NOT BE INCLUDED IN ANY CALCULATION USED TO DETERMINE AMOUNTS PAYA-
BLE PURSUANT TO SUBCLAUSE TWO OF THIS CLAUSE OR PAYMENTS REQUIRED UNDER
S. 3009--C 126 A. 3009--C
SUBCLAUSE TWO OF THIS CLAUSE TO THE APPROPRIATE BREEDING FUND ESTAB-
LISHED PURSUANT TO ARTICLE THREE OF THE RACING, PARI-MUTUEL WAGERING AND
BREEDING LAW.
(4) (A) SUCH VENDOR TRACK SHALL ANNUALLY SUBMIT A PLAN TO THE COMMIS-
SION, NO LATER THAN SIXTY DAYS PRIOR TO THE BEGINNING OF ITS FISCAL
YEAR, DETAILING THE ALLOCATION AND USE OF THE ADDITIONAL VENDOR FEE
REVENUE AMONG THE PURPOSES SPECIFIED IN SUBCLAUSE TWO OF THIS CLAUSE FOR
THE UPCOMING FISCAL YEAR. SUCH PLAN SHALL INCLUDE SPECIFIC PROJECTIONS
FOR COST REDUCTIONS IN EMPLOYEE HEALTHCARE, INCREASES IN EMPLOYEE
COMPENSATION SPECIFYING THE JOB TITLES OR CATEGORIES BENEFITING THERE-
FROM, AND SUPPLEMENTAL AMOUNTS FOR LOCAL DISTRIBUTIONS.
(B) SUCH VENDOR TRACK SHALL SUBMIT A PLAN TO THE COMMISSION, NO LATER
THAN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS CLAUSE, DETAILING THE
ALLOCATION AND USE OF SUCH ADDITIONAL VENDOR FEE AMONG THE PURPOSES
SPECIFIED IN SUBCLAUSE TWO OF THIS CLAUSE FOR THE REMAINDER OF FISCAL
YEAR TWO THOUSAND TWENTY-FIVE. SUCH PLAN SHALL INCLUDE SPECIFIC PROJEC-
TIONS FOR COST REDUCTIONS IN EMPLOYEE HEALTHCARE, INCREASES IN EMPLOYEE
COMPENSATION SPECIFYING THE JOB TITLES OR CATEGORIES BENEFITING THERE-
FROM, AND PROJECTIONS OF SUPPLEMENTAL AMOUNTS OF LOCAL DISTRIBUTIONS.
SUCH PLAN SHALL ALSO DETAIL ALLOCATIONS ALREADY MADE BETWEEN THIS ACT
GOING INTO EFFECT AND THE DATE SUCH PLAN HAS BEEN SUBMITTED TO THE
COMMISSION.
(5) SUCH VENDOR TRACK SHALL ALSO SUBMIT AN ANNUAL REPORT TO THE GAMING
COMMISSION, THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE
SPEAKER OF THE ASSEMBLY, NO LATER THAN NINETY DAYS AFTER THE END OF EACH
FISCAL YEAR, DETAILING THE ACTUAL ALLOCATION AND USE OF SUCH ADDITIONAL
VENDOR FEE DURING THE PRECEDING FISCAL YEAR. SUCH REPORT SHALL SPECIFY
THE AMOUNTS APPLIED TO EACH PURPOSE OUTLINED IN SUBCLAUSE TWO OF THIS
CLAUSE, PROVIDE DATA DEMONSTRATING THE IMPACT ON EMPLOYEE HEALTHCARE
COSTS AND COMPENSATION INCLUDING THE SPECIFIC JOB TITLES OR CATEGORIES
THAT RECEIVED INCREASED COMPENSATION PURSUANT TO ITEM (B) OF SUBCLAUSE
TWO OF THIS CLAUSE, DETAIL THE SUPPLEMENTAL DISTRIBUTIONS MADE TO LOCAL-
ITIES, COMPARE ACTUAL USE TO THE PLAN, AND PROVIDE JUSTIFICATION FOR ANY
SIGNIFICANT VARIANCES.
(6) (A) THE ADDITIONAL VENDOR FEE SHALL ONLY BE USED TO SUPPLEMENT
AMOUNTS PREVIOUSLY ALLOCATED OR APPROPRIATED BY THE CORPORATION FOR THE
PURPOSES STATED IN SUBCLAUSE TWO OF THIS CLAUSE AND MAY NOT BE USED TO
REPLACE OR BACKFILL SUCH AMOUNTS.
(B) THE GAMING COMMISSION SHALL HAVE THE AUTHORITY TO AUDIT THE USE OF
SUCH ADDITIONAL VENDOR FEE BY SUCH VENDOR TRACK. IF THE GAMING COMMIS-
SION DETERMINES, AFTER NOTICE AND AN OPPORTUNITY FOR A HEARING, THAT
SUCH FUNDS HAVE BEEN USED FOR PURPOSES OTHER THAN THOSE AUTHORIZED IN
SUBCLAUSE TWO OF THIS CLAUSE OR INCONSISTENT WITH THE PLAN, INCLUDING A
FAILURE TO BENEFIT NON-EXECUTIVE AND NON-MANAGERIAL EMPLOYEES AS
REQUIRED BY ITEM (B) OF SUBCLAUSE TWO OF THIS CLAUSE, THE GAMING
COMMISSION MAY IMPOSE MONETARY PENALTIES PURSUANT TO ITS AUTHORITY UNDER
THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND MAY REQUIRE THAT
AN AMOUNT EQUIVALENT TO ANY FUNDS USED IN A MANNER INCONSISTENT WITH THE
PROVISIONS OF THIS CLAUSE SHALL BE EXPENDED FOR AUTHORIZED PURPOSES
PURSUANT TO AN AMENDED PLAN.
(7) NOTHING CONTAINED IN THIS CLAUSE SHALL AFFECT ANY EXISTING COLLEC-
TIVE BARGAINING AGREEMENT OR THE OBLIGATION OF SUCH VENDOR TRACK TO
NEGOTIATE TERMS AND CONDITIONS OF EMPLOYMENT WITH ANY CERTIFIED EMPLOYEE
REPRESENTATIVE.
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed April 1, 2030.
S. 3009--C 127 A. 3009--C
PART NN
Section 1. Subparagraph (ii) of paragraph (a) of subdivision 1 of
section 207 of the racing, pari-mutuel wagering and breeding law, as
amended by section 1 of part NN of chapter 59 of the laws of 2017, is
amended and two new subparagraphs (iv) and (v) are added to read as
follows:
(ii) The term of voting membership on the New York racing association
board shall be three years. Individual appointees shall be limited to
serving as a voting member the lesser of three terms or nine years.
Notwithstanding the foregoing, the initial term of one member appointed
by each of the governor, temporary president of the senate, and speaker
of the assembly, the member appointed by the New York thoroughbred
horsemen's association, and the member appointed by the New York
Thoroughbred Breeders, Inc. shall expire March thirty-first, two thou-
sand eighteen; the initial term of the remaining members appointed by
each of the governor, temporary president of the senate, and speaker of
the assembly and two members appointed by the New York racing associ-
ation reorganization board shall expire on March thirty-first, two thou-
sand nineteen; [and the remaining members shall serve full three-year
terms] THE INITIAL TERM OF THREE MEMBERS APPOINTED BY THE NEW YORK
RACING ASSOCIATION REORGANIZATION BOARD SHALL EXPIRE ON MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-ONE, AND THE INITIAL TERM OF THREE MEMBERS
APPOINTED BY THE NEW YORK RACING ASSOCIATION REORGANIZATION BOARD SHALL
EXPIRE ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE. THE EIGHT
INITIAL MEMBERS APPOINTED BY THE NEW YORK RACING ASSOCIATION REORGANIZA-
TION BOARD SHALL HOLD APPOINTMENT AS A VOTING MEMBER FOR THE GREATER OF
THREE TERMS OR NINE YEARS.
(IV) BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-SIX, ONE MEMBER
APPOINTED BY THE GOVERNOR, ONE MEMBER APPOINTED BY THE TEMPORARY PRESI-
DENT OF THE SENATE, ONE MEMBER APPOINTED BY THE SPEAKER OF THE ASSEMBLY,
AND FOUR MEMBERS APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK
RACING ASSOCIATION BOARD OF DIRECTORS SHALL SATISFY AT LEAST ONE OF THE
FOLLOWING REQUIREMENTS AT THE TIME OF APPOINTMENT OR REAPPOINTMENT: (1)
OVER THE THREE YEARS PRIOR, OWNED OR TRAINED HORSES WITH A CUMULATIVE
AVERAGE OF FIFTEEN STARTS AT NEW YORK RACE TRACKS PER YEAR, (2) BE A
BREEDER OF RECORD REGISTERED WITH THE THOROUGHBRED BREEDING AND DEVELOP-
MENT FUND, (3) BE A MANAGING PARTNER IN A NEW YORK STATE-BASED OWNERSHIP
SYNDICATE LICENSED WITH THE COMMISSION, OR (4) HAVE A COGENT INTEREST IN
THE RACING AND BREEDING INDUSTRY IN THE STATE. THE PROVISIONS OF THIS
SUBPARAGRAPH SHALL NOT IMPACT ANY MEMBERS SERVING AS OF JANUARY FIRST,
TWO THOUSAND TWENTY-SIX.
(V) BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-SIX, ALL NON-PUBLICLY
APPOINTED MEMBERS MUST HOLD A LICENSE PURSUANT TO SECTION TWO HUNDRED
TWENTY OF THIS ARTICLE.
§ 2. Subdivision 1 of section 220 of the racing, pari-mutuel wagering
and breeding law, as amended by section 1 of part S of chapter 59 of the
laws of 2024, is amended to read as follows:
1. For the purpose of maintaining a proper control over race meetings
conducted pursuant to sections two hundred five and two hundred six of
this article, the commission shall license owners, which term shall be
deemed to include part-owners and lessees, trainers, assistant trainers
and jockeys, jockey agents, stable employees, NON-PUBLICLY APPOINTED
MEMBERS OF THE BOARD OF A FRANCHISED CORPORATION, and such other persons
as the commission may by rule prescribe at running races and at steeple-
chases, provided, however, that no such license shall be required for
S. 3009--C 128 A. 3009--C
seasonal employees hired solely to work for no longer than six weeks
during the summer meet at Saratoga racetrack, and any such other times
as race dates historically assigned to Belmont Park are conducted at the
Saratoga racetrack in two thousand twenty-four and two thousand twenty-
five as approved in writing by the commission. In the event that a
proposed licensee is other than a natural person, the commission shall
require by regulation disclosure of the names and addresses of all
owners of an interest in such entity. The commission may retain, employ
or appoint such officers, employees and agents, as it may deem necessary
to receive, examine and make recommendations, for the consideration of
the commission, in respect of applications for such licenses; prescribe
their duties in connection therewith, and fix their compensation there-
for within the limitations prescribed by law. Each applicant for a
license shall pay to the commission an annual license fee as follows:
owner's license, if a renewal, fifty dollars, and if an original appli-
cation, one hundred dollars; trainer's license, thirty dollars; assist-
ant trainer's license, thirty dollars; jockey's license, fifty dollars;
jockey agent's license, twenty dollars; and stable employee's license,
five dollars. Each applicant may apply for a two-year or three-year
license by payment to the commission of the appropriate multiple of the
annual fee. The commission may by rule fix the license fees to be paid
by other persons required to be licensed by the rules of the commission,
not to exceed thirty dollars per category. The application for the
license shall be in writing in such form as the commission may
prescribe, and contain such information as the commission may require.
The commission shall henceforth cause all applicants for licenses to be
photographed and fingerprinted and may issue identification cards to
licensees. Such fingerprints shall be submitted to the division of crim-
inal justice services for a state criminal history record check, as
defined in subdivision one of section three thousand thirty-five of the
education law, and may be submitted to the federal bureau of investi-
gation for a national criminal history record check. A fee equal to the
actual cost of issuance shall be charged for the initial issuance of
such identification cards. Each such license unless revoked for cause
shall be for the period of no more than one, two or three years, deter-
mined by rule of the commission, expiring on the applicant's birth date.
LICENSES OF NON-PUBLICLY APPOINTED MEMBERS OF THE BOARD OF A FRANCHISED
CORPORATION SHALL BE ISSUED WITHOUT FEE AND REMAIN IN EFFECT FOR THE
DURATION OF THEIR BOARD SERVICE. Licenses current on the effective date
of this provision shall not be reduced in duration by this provision. An
applicant who applies for a license that, if issued, would take effect
less than six months prior to the applicant's birth date may, by payment
of a fifty percent higher fee, receive a license which shall not expire
until the applicant's second succeeding birth date. All receipts of the
commission derived from the operation of this section shall be paid by
it into the state treasury on or before the tenth day of each month. All
officials connected with the actual conduct of racing shall be subject
to approval by the commission.
§ 3. Subdivision 1 of section 220 of the racing, pari-mutuel wagering
and breeding law, as amended by section 243 of the laws of 2020, is
amended to read as follows:
1. For the purpose of maintaining a proper control over race meetings
conducted pursuant to sections two hundred five and two hundred six of
this article, the commission shall license owners, which term shall be
deemed to include part-owners and lessees, trainers, assistant trainers
and jockeys, jockey agents, stable employees, NON-PUBLICLY APPOINTED
S. 3009--C 129 A. 3009--C
MEMBERS OF THE BOARD OF A FRANCHISED CORPORATION, and such other persons
as the commission may by rule prescribe at running races and at steeple-
chases, provided, however, that no such license shall be required for
seasonal employees hired solely to work for no longer than six weeks
during the summer meet at Saratoga racetrack. In the event that a
proposed licensee is other than a natural person, the commission shall
require by regulation disclosure of the names and addresses of all
owners of an interest in such entity. The commission may retain, employ
or appoint such officers, employees and agents, as it may deem necessary
to receive, examine and make recommendations, for the consideration of
the commission, in respect of applications for such licenses; prescribe
their duties in connection therewith, and fix their compensation there-
for within the limitations prescribed by law. Each applicant for a
license shall pay to the commission an annual license fee as follows:
owner's license, if a renewal, fifty dollars, and if an original appli-
cation, one hundred dollars; trainer's license, thirty dollars; assist-
ant trainer's license, thirty dollars; jockey's license, fifty dollars;
jockey agent's license, twenty dollars; and stable employee's license,
five dollars. Each applicant may apply for a two-year or three-year
license by payment to the commission of the appropriate multiple of the
annual fee. The commission may by rule fix the license fees to be paid
by other persons required to be licensed by the rules of the commission,
not to exceed thirty dollars per category. The application for the
license shall be in writing in such form as the commission may
prescribe, and contain such information as the commission may require.
The commission shall henceforth cause all applicants for licenses to be
photographed and fingerprinted and may issue identification cards to
licensees. Such fingerprints shall be submitted to the division of crim-
inal justice services for a state criminal history record check, as
defined in subdivision one of section three thousand thirty-five of the
education law, and may be submitted to the federal bureau of investi-
gation for a national criminal history record check. A fee equal to the
actual cost of issuance shall be charged for the initial issuance of
such identification cards. Each such license unless revoked for cause
shall be for the period of no more than one, two or three years, deter-
mined by rule of the commission, expiring on the applicant's birth date.
LICENSES OF NON-PUBLICLY APPOINTED MEMBERS OF THE BOARD OF A FRANCHISED
CORPORATION SHALL BE ISSUED WITHOUT FEE AND REMAIN IN EFFECT FOR THE
DURATION OF THEIR BOARD SERVICE. Licenses current on the effective date
of this provision shall not be reduced in duration by this provision. An
applicant who applies for a license that, if issued, would take effect
less than six months prior to the applicant's birth date may, by payment
of a fifty percent higher fee, receive a license which shall not expire
until the applicant's second succeeding birth date. All receipts of the
commission derived from the operation of this section shall be paid by
it into the state treasury on or before the tenth day of each month. All
officials connected with the actual conduct of racing shall be subject
to approval by the commission.
§ 4. The New York racing association shall immediately identify which
members are designated to which specific seats on the board.
§ 5. This act shall take effect immediately and shall apply to all
initial appointments by the New York racing association reorganization
board; provided, however, that if section 1 of part NN of chapter 59 of
the laws of 2017 shall not have taken effect on or before such date then
section one of this act shall take effect on the same date and in the
same manner as such section of such part of such chapter of the laws of
S. 3009--C 130 A. 3009--C
2017 takes effect; and provided, further, that the amendments to subdi-
vision 1 of section 220 of the racing, pari-mutuel wagering and breeding
law made by section two of this act shall be subject to the expiration
and reversion of such subdivision pursuant to section 2 of part S of
chapter 59 of the laws of 2024, as amended, when upon such date the
provisions of section three of this act shall take effect.
PART OO
Section 1. Subdivision 8 of section 1367 of the racing, pari-mutuel
wagering and breeding law, as added by section 3 of part Y of chapter 59
of the laws of 2021, is amended to read as follows:
8. Notwithstanding section thirteen hundred fifty-one of this article,
mobile sports wagering gross gaming revenue and tax revenue shall be
excluded from sports wagering gross gaming revenue and tax revenue.
Mobile sports wagering tax revenue shall be separately maintained and
returned to the state for deposit into the state lottery fund for educa-
tion aid except as otherwise provided in this subdivision. Any interest
and penalties imposed by the commission relating to those taxes, all
penalties levied and collected by the commission, and the appropriate
funds, cash or prizes forfeited from sports wagering shall be deposited
into the state lottery fund for education. In [the first fiscal year in
which mobile sports wagering licensees commence operations and accept
mobile sports wagers pursuant to this section] FISCAL YEAR TWO THOUSAND
TWENTY-TWO, the commission shall pay into the commercial gaming fund one
percent of the state tax imposed on mobile sports wagering by this
section to be distributed for problem gambling education and treatment
purposes pursuant to paragraph a of subdivision four of section ninety-
seven-nnnn of the state finance law; provided however, that such amount
shall be equal to six million dollars for each fiscal year THROUGH
FISCAL YEAR TWO THOUSAND TWENTY-SIX AND TWELVE MILLION DOLLARS FOR EACH
FISCAL YEAR thereafter, PROVIDED THAT THIS AMOUNT MAY ONLY BE EXPENDED
PURSUANT TO A PLAN APPROVED BY THE DIRECTOR OF THE BUDGET. In [the first
fiscal year in which mobile sports wagering licensees commence oper-
ations and accept mobile sports wagers pursuant to this section] FISCAL
YEAR TWO THOUSAND TWENTY-TWO, the commission shall pay one percent of
the state tax imposed on mobile sports wagering by this section to the
general fund, a program to be administered by the office of children and
family services for a statewide youth sports activities and education
grant program for the purpose of providing annual awards to sports
programs for underserved youth under the age of eighteen years; provided
however, that such amount shall be equal to five million dollars for
each fiscal year thereafter. The commission shall require at least
monthly deposits by a platform provider of any payments pursuant to
subdivision seven of this section, at such times, under such conditions,
and in such depositories as shall be prescribed by the state comp-
troller. The deposits shall be deposited to the credit of the state
commercial gaming revenue fund. The commission shall require a monthly
report and reconciliation statement to be filed with it on or before the
tenth day of each month, with respect to gross revenues and deposits
received and made, respectively, during the preceding month.
§ 2. This act shall take effect immediately.
PART PP
S. 3009--C 131 A. 3009--C
Section 1. (a) Notwithstanding any provision of law, rule or regu-
lation to the contrary, any site for which (i) a brownfield cleanup
agreement with the department of environmental conservation was entered
into prior to June 23, 2008 with respect to a site located within the
Renaissance Commerce Park situate within the city of Lackawanna, Erie
county, (ii) which received a certificate of completion on or before
December 31, 2017, and (iii) that has not otherwise had property placed
in service upon such a site as of the effective date of this act, shall
be a qualified site for purposes of the brownfield redevelopment tax
credits available to such a site pursuant to section 21 of the tax law
as in effect for such a site as of the effective date of this act
provided that both the site preparation credit component and the on-site
groundwater remediation credit component shall be allowed for all eligi-
ble costs incurred on such a site prior to and within the tax year in
which qualified tangible property on such a site is placed in service,
and for a seven year period following the year such property is first
placed in service upon such a site, provided, such a date occurs prior
to the 2036 tax year, and the tangible property credit component shall
be allowed for all eligible costs incurred on such a site prior to and
within the tax year in which qualified tangible property on such a site
is placed in service, and for a ten year period (120 months) following
the year such property is first placed in service upon such a site,
provided such a date occurs prior to the 2036 tax year.
(b) In addition, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to June 23, 2008 with respect to a site located within the Renaissance
Commerce Park situate within the city of Lackawanna, Erie county, (ii)
which received a certificate of completion on or before December 31,
2017, and (iii) that has not otherwise had property placed in service
upon such a site as of the effective date of this act shall be eligible
to claim the tax credit for remediated brownfields available to such a
site pursuant to section 22 of the tax law as in effect for such a site
as of the effective date of this act provided the benefit period as
applicable thereto shall be deemed to be a ten-consecutive-tax-year
period beginning with the tax year in which qualified tangible property
on such a site is placed in service where said benefit period shall
begin no later than the 2036 tax year.
(c) Further, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to June 23, 2008 with respect to a site located within the Renaissance
Commerce Park situate within the city of Lackawanna, Erie county, (ii)
which received a certificate of completion on or before December 31,
2017, and (iii) that has not otherwise had property placed in service
upon such a site as of the effective date of this act, shall be a quali-
fied site for purposes of claiming the tax credit for remediated brown-
fields available to such a site pursuant to section 22 of the tax law,
provided that such developer as defined under section 22 of the tax law
has purchased or in any other way has been conveyed all or any portion
of such a site from any other party who or which has been issued a
certificate of completion with respect to such site and further provided
that such purchase or conveyance occurs no later than the 2036 tax year.
§ 2. This act shall take effect immediately.
PART QQ
S. 3009--C 132 A. 3009--C
Section 1. Section 171 of the tax law is amended by adding a new
subdivision fifteenth-a to read as follows:
FIFTEENTH-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER: (I)
THE COMMISSIONER MAY GRANT THE RELIEF DESCRIBED IN PARAGRAPH (III) OF
THIS SUBDIVISION TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT
A PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED
LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
OWNERSHIP INTEREST AND THE PERCENTAGE OF THEIR DISTRIBUTIVE SHARE OF THE
PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY
COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR
MEMBER WAS NOT UNDER A DUTY TO ACT, AND DID NOT ACT, FOR SUCH LIMITED
PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIRE-
MENT OF THE TAXES IMPOSED UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER AND
PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER.
PROVIDED, HOWEVER, THE COMMISSIONER SHALL DENY AN APPLICATION FOR RELIEF
IF: (A) SUCH LIMITED PARTNER OR MEMBER HAD A DUTY TO ACT OR HAS ACTED ON
BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN
COMPLYING WITH ANY REQUIREMENT OF THE TAXES IMPOSED UNDER ARTICLE TWEN-
TY-EIGHT OF THIS CHAPTER AND PURSUANT TO THE AUTHORITY OF ARTICLE TWEN-
TY-NINE OF THIS CHAPTER; (B) SUCH LIMITED PARTNER OR MEMBER HAS BEEN
CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER; (C) SUCH LIMITED PARTNER
OR MEMBER HAS A PAST-DUE TAX LIABILITY, AS SUCH TERM IS DEFINED IN
SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS ARTICLE; (D) APPROVAL OF SUCH
APPLICATION WOULD UNDERMINE COMPLIANCE WITH THE TAXES OR OTHER IMPOSI-
TIONS ADMINISTERED BY THE COMMISSIONER; OR (E) APPROVAL OF SUCH APPLICA-
TION WOULD BE ADVERSE TO THE BEST INTERESTS OF THE STATE.
(II) THE RELIEF DESCRIBED IN PARAGRAPH (III) OF THIS SUBDIVISION SHALL
NOT BE PROVIDED UNLESS A LIMITED PARTNER OR MEMBER SUBMITS A PROPERLY
COMPLETED APPLICATION FOR RELIEF ON A FORM PRESCRIBED BY THE COMMISSION-
ER. THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND
COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDU-
LENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PART-
NER OR MEMBER FOR THE RELIEF DESCRIBED IN PARAGRAPH (III) OF THIS SUBDI-
VISION, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO
SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING
STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED
BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY
UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER AND PURSUANT TO THE AUTHORITY
OF ARTICLE TWENTY-NINE OF THIS CHAPTER.
(III) IF THE COMMISSIONER APPROVES SUCH APPLICATION, SUCH LIMITED
PARTNER OR MEMBER SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL
LIABILITY UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER AND PURSUANT TO THE
AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER OF THEIR RESPECTIVE
LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH
LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OR DISTRIBUTIVE SHARE
OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABIL-
ITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE
ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY
SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE
COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS CHAP-
TER, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY THE LIMITED
PARTNERSHIP OR LIMITED LIABILITY COMPANY. PROVIDED, HOWEVER, SUCH LIMIT-
ED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH
LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR
MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY; AND
S. 3009--C 133 A. 3009--C
PROVIDED FURTHER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS
REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY
COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP
OR LIMITED LIABILITY COMPANY.
(IV) THE DENIAL OF A LIMITED PARTNER'S OR MEMBER'S APPLICATION FOR
RELIEF SHALL NOT BE REVIEWABLE BY THE DIVISION OF TAX APPEALS, BUT MAY
BE REVIEWED PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
AND RULES BY A PROCEEDING COMMENCED WITHIN FOUR MONTHS OF SUCH DENIAL IN
THE COUNTY WHERE THE COMMISSIONER HAS THEIR PRINCIPAL OFFICE.
(V) ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER IN EXCESS OF SUCH
LIMITED PARTNER'S OR MEMBER'S PERCENTAGE OF OWNERSHIP OR DISTRIBUTIVE
SHARE, WHICHEVER IS HIGHER, SHALL BE DEEMED A PAYMENT BY THE RESPECTIVE
LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, AND SUCH LIMITED PART-
NER OR MEMBER SHALL NOT BE ENTITLED TO A REFUND OF SUCH AMOUNT.
§ 2. Subdivision (a) of section 1133 of the tax law, as amended by
section 2 of part X of chapter 59 of the laws of 2018, is amended to
read as follows:
(a) [(1)] Except as otherwise provided in [paragraph two of this
subdivision and in] section eleven hundred thirty-seven of this part,
every person required to collect any tax imposed by this article shall
be personally liable for the tax imposed, collected or required to be
collected under this article. Any such person shall have the same right
in respect to collecting the tax from [his] THEIR customer or in respect
to nonpayment of the tax by the customer as if the tax were a part of
the purchase price of the property or service, amusement charge or rent,
as the case may be, and payable at the same time; provided, however,
that the tax commission shall be joined as a party in any action or
proceeding brought to collect the tax.
[(2) Notwithstanding any other provision of this article: (i) The
commissioner shall grant the relief described in subparagraph (iii) of
this paragraph to a limited partner of a limited partnership (but not a
partner of a limited liability partnership) or a member of a limited
liability company if such limited partner or member demonstrates to the
satisfaction of the commissioner that such limited partner's or member's
ownership interest and the percentage of the distributive share of the
profits and losses of such limited partnership or limited liability
company are each less than fifty percent, and such limited partner or
member was not under a duty to act for such limited partnership or
limited liability company in complying with any requirement of this
article. Provided, however, the commissioner may deny an application for
relief to any such limited partner or member who the commissioner finds
has acted on behalf of such limited partnership or limited liability
company in complying with any requirement of this article or has been
convicted of a crime provided in this chapter or who has a past-due
liability, as such term is defined in section one hundred seventy-one-v
of this chapter.
(ii) Such limited partner or member must submit an application for
relief, on a form prescribed by the commissioner, and the information
provided in such application must be true and complete in all material
respects. Providing materially false or fraudulent information on such
application shall disqualify such limited partner or member for the
relief described in subparagraph (iii) of this paragraph, shall void any
agreement with the commissioner with respect to such relief, and shall
result in such limited partner or member bearing strict liability for
the total amount of tax, interest and penalty owed by their respective
S. 3009--C 134 A. 3009--C
limited partnership or limited liability company pursuant to this subdi-
vision.
(iii) A limited partner of a limited partnership or member of a limit-
ed liability company, who meets the requirements set forth in this para-
graph and whose application for relief is approved by the commissioner,
shall be liable for the percentage of the original sales and use tax
liability of their respective limited partnership or limited liability
company that reflects such limited partner's or member's ownership
interest of distributive share of the profits and losses of such limited
partnership or limited liability company, whichever is higher. Such
original liability shall include any interest accrued thereon up to and
including the date of payment by such limited partner or member at the
underpayment rate set by the commissioner pursuant to section eleven
hundred forty-two of this part, and shall be reduced by the sum of any
payments made by (A) the limited partnership or limited liability compa-
ny; (B) any person required to collect tax not eligible for relief; and
(C) any person required to collect tax who was eligible for relief but
had not been approved for relief by the commissioner at the time such
payment was made. Provided, however, such limited partner or member
shall not be liable for any penalty owed by such limited partnership or
limited liability company or any other partner or member of such limited
partnership or limited liability company. Any payment made by a limited
partner or member pursuant to the provisions of this paragraph shall not
be credited against the liability of other limited partners or members
of their respective limited partnership or limited liability company who
are eligible for the same relief; provided, however that the sum of the
amounts owed by all of the persons required to collect tax of a limited
partnership or limited liability company shall not exceed the total
liability of such limited partnership or limited liability company.]
§ 3. This act shall take effect immediately.
PART RR
Section 1. Subparagraphs (A), (E) and (F) of paragraph 1 of subsection
(e) of section 606 of the tax law, subparagraph (A) and (F) as amended
by chapter 28 of the laws of 1987 and subparagraph (E) as amended by
chapter 105 of the laws of 2006, are amended to read as follows:
(A) ["Qualified] (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-FIVE, "QUALIFIED taxpayer" means a resident individ-
ual of the state who has occupied the same residence for six months or
more of the taxable year, and is required or chooses to file a return
under this article.
(II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF
THE STATE WHO HAS OCCUPIED THE SAME RESIDENCE FOR SIX MONTHS OR MORE OF
THE TAXABLE YEAR, AND HAS QUALIFYING REAL PROPERTY TAXES AS DEFINED IN
CLAUSE (II) OF SUBPARAGRAPH (E) OF THIS PARAGRAPH, OR A REAL PROPERTY
TAX EQUIVALENT AS DEFINED IN CLAUSE (II) OF SUBPARAGRAPH (F) OF THIS
PARAGRAPH, IN EXCESS OF THE FOLLOWING PERCENTAGES OF FEDERAL ADJUSTED
GROSS INCOME:
IF FEDERAL ADJUSTED GROSS INCOME FOR THE PERCENTAGE
TAXABLE YEAR IS:
$3,000 OR LESS 3 1/2
OVER $3,000 BUT NOT OVER $5,000 4
S. 3009--C 135 A. 3009--C
OVER $5,000 BUT NOT OVER $7,000 4 1/2
OVER $7,000 BUT NOT OVER $9,000 5
OVER $9,000 BUT NOT OVER $11,000 5 1/2
OVER $11,000 BUT NOT OVER $14,000 6
OVER $14,000 BUT NOT OVER $18,000 6 1/2
(E) ["Qualifying] (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-FIVE, "QUALIFYING real property taxes" means
all real property taxes, special ad valorem levies and special assess-
ments, exclusive of penalties and interest, levied on the residence of a
qualified taxpayer and paid during the taxable year less the credit
claimed under subsection (n-1) of this section. In addition, for taxable
years beginning after December thirty-first, nineteen hundred eighty-
four, a qualified taxpayer may elect to include any additional amount
that would have been levied in the absence of an exemption from real
property taxation pursuant to section four hundred sixty-seven of the
real property tax law. If tenant-stockholders in a cooperative housing
corporation have met the requirements of section two hundred sixteen of
the internal revenue code by which they are allowed a deduction for real
estate taxes, the amount of taxes so allowable, or which would be allow-
able if the taxpayer had filed returns on a cash basis, shall be quali-
fying real property taxes. If a residence is owned by two or more indi-
viduals as joint tenants or tenants in common, and one or more than one
individual is not a member of the household, qualifying real property
taxes is that part of such taxes on the residence which reflects the
ownership percentage of the qualified taxpayer and members of [his]
THEIR household. If a residence is an integral part of a larger unit,
qualifying real property taxes shall be limited to that amount of such
taxes paid as may be reasonably apportioned to such residence. If a
household owns and occupies two or more residences during different
periods in the same taxable year, qualifying real property taxes shall
be the sum of the prorated qualifying real property taxes attributable
to the household during the periods such household occupies each of such
residences. If the household owns and occupies a residence for part of
the taxable year and rents a residence for part of the same taxable
year, it may include both the proration of qualifying real property
taxes on the residence owned and the real property tax equivalent with
respect to the months the residence is rented. Provided, however, for
purposes of the credit allowed under this subsection, qualifying real
property taxes may be included by a qualified taxpayer only to the
extent that such taxpayer or the spouse of such taxpayer occupying such
residence for six months or more of the taxable year owns or has owned
the residence and paid such taxes.
(II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, "QUALIFYING REAL PROPERTY TAXES" MEANS ALL REAL PROP-
ERTY TAXES, SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE
OF PENALTIES AND INTEREST, LEVIED ON THE RESIDENCE OF A QUALIFIED
TAXPAYER AND PAID DURING THE TAXABLE YEAR LESS ANY SCHOOL TAX RELIEF
CREDIT ALLOWED UNDER SUBSECTION (EEE) OF THIS SECTION. A QUALIFIED
TAXPAYER MAY ELECT TO INCLUDE ANY ADDITIONAL AMOUNT THAT WOULD HAVE BEEN
LEVIED IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAXATION PURSU-
ANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW. IF
TENANT-STOCKHOLDERS IN A COOPERATIVE HOUSING CORPORATION HAVE MET THE
REQUIREMENTS OF SECTION TWO HUNDRED SIXTEEN OF THE INTERNAL REVENUE CODE
BY WHICH THEY ARE ALLOWED A DEDUCTION FOR REAL ESTATE TAXES, THE AMOUNT
OF TAXES SO ALLOWABLE, OR WHICH WOULD BE ALLOWABLE IF THE TAXPAYER HAD
S. 3009--C 136 A. 3009--C
FILED RETURNS ON A CASH BASIS, SHALL BE QUALIFYING REAL PROPERTY TAXES.
IF A RESIDENCE IS OWNED BY TWO OR MORE INDIVIDUALS AS JOINT TENANTS OR
TENANTS IN COMMON, QUALIFYING REAL PROPERTY TAXES IS THAT PART OF SUCH
TAXES ON THE RESIDENCE WHICH REFLECTS THE OWNERSHIP PERCENTAGE OF THE
QUALIFIED TAXPAYER. IF A RESIDENCE IS AN INTEGRAL PART OF A LARGER UNIT,
QUALIFYING REAL PROPERTY TAXES SHALL BE LIMITED TO THAT AMOUNT OF THE
TAXES PAID AS MAY BE REASONABLY APPORTIONED TO SUCH RESIDENCE. IF A
QUALIFIED TAXPAYER OWNS AND OCCUPIES TWO OR MORE RESIDENCES DURING
DIFFERENT PERIODS IN THE SAME TAXABLE YEAR, QUALIFYING REAL PROPERTY
TAXES SHALL BE THE SUM OF THE PRORATED QUALIFYING REAL PROPERTY TAXES
ATTRIBUTABLE TO THE QUALIFIED TAXPAYER DURING THE PERIODS THE TAXPAYER
OCCUPIES EACH OF THE RESIDENCES. IF A QUALIFIED TAXPAYER OWNS AND OCCU-
PIES A RESIDENCE FOR PART OF THE TAXABLE YEAR AND RENTS A RESIDENCE FOR
PART OF THE SAME TAXABLE YEAR, THE TAXPAYER MAY INCLUDE BOTH THE
PRORATION OF QUALIFYING REAL PROPERTY TAXES ON THE RESIDENCE OWNED AND
THE REAL PROPERTY TAX EQUIVALENT WITH RESPECT TO THE MONTHS THE RESI-
DENCE IS RENTED. PROVIDED, HOWEVER, FOR PURPOSES OF THE CREDIT ALLOWED
UNDER THIS SUBSECTION, QUALIFYING REAL PROPERTY TAXES MAY BE INCLUDED BY
A QUALIFIED TAXPAYER ONLY TO THE EXTENT THAT SUCH TAXPAYER OR THE SPOUSE
OF SUCH TAXPAYER OCCUPYING SUCH RESIDENCE FOR SIX MONTHS OR MORE OF THE
TAXABLE YEAR OWNS OR HAS OWNED THE RESIDENCE AND PAID SUCH TAXES.
(F) ["Real] (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, "REAL property tax equivalent" means twenty-five
percent of the adjusted rent actually paid in the taxable year by a
household solely for the right of occupancy of its New York residence
for the taxable year. If [(i)] (I) a residence is rented to two or more
individuals as cotenants, or such individuals share in the payment of a
single rent for the right of occupancy of such residence, and [(ii)]
(II) each of such individuals is a member of a different household, one
or more of which individuals shares such residence, real property tax
equivalent is that portion of twenty-five percent of the adjusted rent
paid in the taxable year which reflects that portion of the rent attrib-
utable to the qualified taxpayer and the members of [his] THEIR house-
hold.
(II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, "REAL PROPERTY TAX EQUIVALENT" MEANS TWENTY-FIVE
PERCENT OF THE ADJUSTED RENT ACTUALLY PAID IN THE TAXABLE YEAR BY A
QUALIFIED TAXPAYER SOLELY FOR THE RIGHT OF OCCUPANCY OF THEIR NEW YORK
RESIDENCE FOR THE TAXABLE YEAR.
§ 2. Paragraph 2 of subsection (e) of section 606 of the tax law, as
amended by chapter 28 of the laws of 1987, is amended to read as
follows:
(2) [A] (A) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, A qualified taxpayer shall be allowed a credit as
provided in SUBPARAGRAPH (A) OF paragraph three [hereof] OF THIS
SUBSECTION against the taxes imposed by this article reduced by the
credits permitted by this article. If the credit exceeds the tax as so
reduced for such year under this article the qualified taxpayer may
receive, and the comptroller, subject to a certificate of the [state tax
commission] COMMISSIONER, shall pay as an overpayment, without interest,
any excess between such tax as so reduced and the amount of the credit.
If a qualified taxpayer is not required to file a return pursuant to
section six hundred fifty-one, a qualified taxpayer may nevertheless
receive and the comptroller, subject to a certificate of the [state tax
commission] COMMISSIONER, shall pay as an overpayment the full amount of
the credit, without interest.
S. 3009--C 137 A. 3009--C
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED FOR IN SUBPARAGRAPH (B) OF
PARAGRAPH THREE OF THIS SUBSECTION. IF THE AMOUNT OF THE CREDIT ALLOWED
UNDER THIS SUBSECTION EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE YEAR,
THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON. IF A TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO
SECTION SIX HUNDRED FIFTY-ONE, A QUALIFIED TAXPAYER MAY NEVERTHELESS
RECEIVE AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE COMMISSION-
ER, SHALL PAY AS AN OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT
INTEREST.
§ 3. Paragraph 3 of subsection (e) of section 606 of the tax law, as
amended by chapter 28 of the laws of 1987, is amended to read as
follows:
(3) Determination of credit. (A) For TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, (I) FOR qualified taxpayers who
have attained the age of sixty-five years before the beginning of or
during the taxable year the amount of the credit allowable under this
subsection shall be fifty percent, or in the case of a qualified taxpay-
er who has elected to include an additional amount pursuant to subpara-
graph (E) of paragraph one of this subsection, twenty-five percent, of
the excess of real property taxes or the excess of real property tax
equivalent determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the fo-
If household gross income for the llowing percentage of household
taxable year is: gross income:
----------------------------------- -----------------------------------
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 but not over $18,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this [subparagraph] CLAUSE may not exceed the amount deter-
mined in accordance with the following table:
If household gross income for the
taxable year is: The maximum credit is:
----------------------------------- -----------------------------------
$1,000 or less $375
Over $1,000 but not over $2,000 $358
Over $2,000 but not over $3,000 $341
Over $3,000 but not over $4,000 $324
Over $4,000 but not over $5,000 $307
Over $5,000 but not over $6,000 $290
Over $6,000 but not over $7,000 $273
Over $7,000 but not over $8,000 $256
S. 3009--C 138 A. 3009--C
Over $8,000 but not over $9,000 $239
Over $9,000 but not over $10,000 $222
Over $10,000 but not over $11,000 $205
Over $11,000 but not over $12,000 $188
Over $12,000 but not over $13,000 $171
Over $13,000 but not over $14,000 $154
Over $14,000 but not over $15,000 $137
Over $15,000 but not over $16,000 $120
Over $16,000 but not over $17,000 $103
Over $17,000 but not over $18,000 $ 86
[(B) For] (II) FOR all other qualified taxpayers the amount of the
credit allowable under this subsection shall be fifty percent of excess
real property taxes or the excess of the real property tax equivalent
determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the
If household gross income for the following percentage of household
taxable year is: gross income:
----------------------------------- -----------------------------------
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 but not over $18,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this [subparagraph] CLAUSE may not exceed the amount deter-
mined in accordance with the following table:
If household gross income for the
taxable year is: The maximum credit is:
----------------------------------- -----------------------------------
$1,000 or less $75
Over $1,000 but not over $2,000 $73
Over $2,000 but not over $3,000 $71
Over $3,000 but not over $4,000 $69
Over $4,000 but not over $5,000 $67
Over $5,000 but not over $6,000 $65
Over $6,000 but not over $7,000 $63
Over $7,000 but not over $8,000 $61
Over $8,000 but not over $9,000 $59
Over $9,000 but not over $10,000 $57
Over $10,000 but not over $11,000 $55
Over $11,000 but not over $12,000 $53
Over $12,000 but not over $13,000 $51
Over $13,000 but not over $14,000 $49
Over $14,000 but not over $15,000 $47
Over $15,000 but not over $16,000 $45
Over $16,000 but not over $17,000 $43
Over $17,000 but not over $18,000 $41
S. 3009--C 139 A. 3009--C
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, (I) FOR QUALIFIED TAXPAYERS WHO HAVE ATTAINED THE AGE
OF SIXTY-FIVE YEARS BEFORE THE BEGINNING OF OR DURING THE TAXABLE YEAR
OR ARE CLAIMING DEPENDENTS AS DEFINED UNDER SECTION ONE HUNDRED FIFTY-
TWO OF THE INTERNAL REVENUE CODE WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE
YEARS BEFORE THE BEGINNING OF OR DURING THE TAXABLE YEAR, THE CREDIT
ALLOWABLE UNDER THIS SUBSECTION SHALL BE:
IF THE TAXPAYER'S FEDERAL ADJUSTED GROSS
INCOME FOR THE TAXABLE YEAR IS: THE CREDIT AMOUNT IS:
$3,000 OR LESS $375
OVER $3,000 BUT NOT OVER $5,000 $330
OVER $5,000 BUT NOT OVER $7,000 $300
OVER $7,000 BUT NOT OVER $9,000 $260
OVER $9,000 BUT NOT OVER $11,000 $230
OVER $11,000 BUT NOT OVER $14,000 $200
OVER $14,000 BUT NOT OVER $18,000 $150
(II) FOR ALL OTHER TAXPAYERS THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION SHALL BE:
IF THE TAXPAYER'S FEDERAL ADJUSTED GROSS
INCOME FOR THE TAXABLE YEAR IS: THE CREDIT AMOUNT IS:
$5,000 OR LESS $75
OVER $5,000 BUT NOT OVER $9,000 $70
OVER $9,000 BUT NOT OVER $14,000 $60
OVER $14,000 BUT NOT OVER $18,000 $50
§ 4. Paragraph 4 of subsection (e) of section 606 of the tax law, as
amended by chapter 28 of the laws of 1987, is amended to read as
follows:
(4) If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more resi-
dences during different periods in such taxable year, the credit allowed
pursuant to this subsection shall be computed in such manner as the [tax
commission] COMMISSIONER may[, by regulation,] prescribe in order to
properly reflect the credit or portion thereof attributable to such
residence or residences and such period or periods.
§ 5. Paragraph 5 of subsection (e) of section 606 of the tax law is
REPEALED.
§ 6. Paragraph 6 of subsection (e) of section 606 of the tax law, as
amended by chapter 28 of the laws of 1987, is amended to read as
follows:
(6) [Only] (A) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, ONLY one credit per household and per qualified
taxpayer shall be allowed per taxable year under this subsection.
[When] WHERE two or more members of a household are able to meet the
qualifications for a qualified taxpayer, the credit shall be equally
divided between or among such individuals unless such individuals file
with the [tax commission] COMMISSIONER a written agreement among such
individuals setting forth a different division. Where two or more
members of a household are able to meet the qualifications of a quali-
fied taxpayer and one of them is sixty-five years of age or more, the
credit which may be taken shall be the credit applicable to individuals
who have attained the age of sixty-five years.
S. 3009--C 140 A. 3009--C
[(A)] (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, ONLY ONE CREDIT PER QUALIFIED TAXPAYER SHALL BE
ALLOWED PER TAXABLE YEAR UNDER THIS SUBSECTION.
(C) Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one by a quali-
fied taxpayer and [his] THEIR spouse (or where both spouses are quali-
fied taxpayers and have filed such joint return), the credit, or the
portion of the credit if divided, to which the [husband and wife] SPOUS-
ES are entitled shall be applied against the tax of both spouses and any
overpayment shall be made to both spouses.
[(B)] (D) Where any return required to be filed pursuant to the
provisions of section six hundred fifty-one is combined with any return
of tax imposed pursuant to the authority of this chapter or any other
law if such tax is administered by the [tax commission] COMMISSIONER,
the credit or the portion of the credit if divided, allowed to the qual-
ified taxpayer may be applied by the [tax commission] COMMISSIONER
toward any liability for the aforementioned taxes.
§ 7. Subparagraph (A) of paragraph 7 of subsection (e) of section 606
of the tax law, as amended by chapter 28 of the laws of 1987, is amended
to read as follows:
(A) [If] (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, IF household gross income for the taxable year
exceeds eighteen thousand dollars.
(II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IF THE TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME
EXCEEDS EIGHTEEN THOUSAND DOLLARS.
§ 8. Paragraphs 9, 10 and 14 of subsection (e) of section 606 of the
tax law, paragraphs 9 and 10 as amended by chapter 28 of the laws of
1987 and paragraph 14 as amended by chapter 23 of the laws of 1990, are
amended to read as follows:
(9) Returns. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the [tax commission] COMMISSIONER, OR A
FORM PRESCRIBED BY THE COMMISSIONER, within three years from the time it
would have been required that a return be filed pursuant to such section
had the qualified taxpayer had a taxable year ending on December thir-
ty-first. Returns under this paragraph shall be in such form as shall be
prescribed by the [tax commission] COMMISSIONER, which shall make avail-
able such forms and instructions for filing such returns.
(10) Proof of claim. The [tax commission] COMMISSIONER may require a
qualified taxpayer to furnish the following information in support of
[his] THEIR claim for credit under this subsection: FEDERAL ADJUSTED
GROSS INCOME, household gross income, rent paid, name and address of
owner or managing agent of the property rented, real property taxes
levied or that would have been levied in the absence of an exemption
from real property tax pursuant to section four hundred sixty-seven of
the real property tax law, the names of members of the household and
other qualifying taxpayers occupying the same residence and their iden-
tifying numbers including social security numbers, household gross
income, size and nature of property claimed as residence and all other
information which may be required by the [tax commission] COMMISSIONER
to determine the credit.
(14) [The] (A) FOR CALENDAR YEARS BEFORE TWO THOUSAND TWENTY-FIVE,
THE commissioner [of taxation and finance] shall prepare a preliminary
written report after July thirty-first and a final written report after
December thirty-first of each calendar year, which shall contain statis-
S. 3009--C 141 A. 3009--C
tical information regarding the credits granted on or before such dates
under this subsection during such calendar year. Copies of these
reports shall be submitted by [such] THE commissioner to the governor,
the temporary president of the senate, the speaker of the assembly, the
[chairman] CHAIR of the senate finance committee and the [chairman]
CHAIR of the assembly ways and means committee within sixty days of July
thirty-first with respect to the preliminary report, and within forty-
five days of December thirty-first with respect to the final report.
Such reports shall contain, but need not be limited to, the number of
credits and the average amount of such credits allowed; and of those,
the number of credits and the average amount of such credits allowed to
qualified taxpayers in each county; and of those, the number of credits
and the average amount of such credits allowed to qualified taxpayers
whose household gross income falls within each of the household gross
income ranges set forth in paragraph three of this subsection; and of
those, the number of credits and the average amount of such credits
allowed to qualified taxpayers whose credit amount falls within credit
amount ranges set forth in twenty-five dollar increments.
(B) FOR CALENDAR YEARS BEGINNING WITH TWO THOUSAND TWENTY-FIVE, THE
COMMISSIONER OF TAXATION AND FINANCE SHALL PREPARE AN ANNUAL REPORT BY
SEPTEMBER FIRST OF EACH SUCH YEAR, WHICH SHALL CONTAIN STATISTICAL
INFORMATION REGARDING THE CREDITS CLAIMED UNDER THIS SUBSECTION FOR THE
SECOND PRECEDING TAXABLE YEAR. COPIES OF SUCH REPORT SHALL BE SUBMITTED
BY THE COMMISSIONER TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE
COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH
REPORT SHALL CONTAIN, BUT NEED NOT BE LIMITED TO, THE NUMBER OF CREDITS
AND THE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER OF
CREDITS AND THE AMOUNT OF SUCH CREDITS ALLOWED TO QUALIFIED TAXPAYERS IN
EACH COUNTY; AND OF THOSE, THE NUMBER OF CREDITS AND THE AMOUNT OF SUCH
CREDITS ALLOWED TO QUALIFIED TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS
INCOME FALLS WITHIN EACH OF THE FEDERAL ADJUSTED GROSS INCOME RANGES SET
FORTH IN PARAGRAPH THREE OF THIS SUBSECTION.
§ 9. This act shall take effect immediately.
PART SS
Section 1. The tax law is amended by adding a new section 1202-z-5 to
read as follows:
§ 1202-Z-5. OCCUPANCY TAX IN THE CITY OF AUBURN. (1) NOTWITHSTANDING
ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE CITY OF AUBURN, IN THE
COUNTY OF CAYUGA, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND
LOCAL LAWS IMPOSING IN SUCH CITY A TAX, IN ADDITION TO ANY OTHER TAX
AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE, SUCH AS THE LEGISLATURE
HAS OR WOULD HAVE THE POWER AND AUTHORITY TO IMPOSE UPON PERSONS OCCUPY-
ING ANY ROOM FOR HIRE IN ANY HOTEL. FOR THE PURPOSES OF THIS SECTION,
THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGU-
LARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM
"HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL, A BOARDING HOUSE, AND
FACILITIES DESIGNATED AND COMMONLY KNOWN AS A "BED AND BREAKFAST" AND
SIMILAR "TOURIST" FACILITIES, WHETHER OR NOT MEALS ARE SERVED. THE RATE
OF SUCH TAX SHALL NOT EXCEED FIVE PERCENT OF THE PER DIEM RENTAL RATE
FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS.
(2) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL
OFFICER OF THE CITY OF AUBURN BY SUCH MEANS AND IN SUCH MANNER AS OTHER
S. 3009--C 142 A. 3009--C
TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS
OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW.
(3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID
BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE ROOM FOR HIRE IN THE
TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC
ACCOMMODATION OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR
CHARGE THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR
OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED FOR AND ON ACCOUNT
OF THE CITY OF AUBURN IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON
ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE
COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTI-
TLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT
TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE
TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC
ACCOMMODATION, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE PERSON
OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL
OR SIMILAR PLACE OF PUBLIC ACCOMMODATION, AS IF THE TAXES WERE A PART OF
THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE;
PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE CITY, SPECIFIED
IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEED-
ING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO
BE PAID THE RENT OR CHARGE.
(4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE
PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR
SHORTER PERIOD OF TIME.
(5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON
ANY OF THE FOLLOWING:
A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A
PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER
STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI-
TICAL SUBDIVISION OF THE STATE;
B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA-
TION;
C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND
OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA-
BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL-
DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE
BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART
OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE
ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN
THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY
PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT
ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN
THIS PARAGRAPH; OR
D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS
SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU-
PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST NINETY CONSEC-
UTIVE DAYS.
(6) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR ANY
OTHER REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO THE
SUPREME COURT WITHIN THIRTY DAYS AFTER THE GIVING OF NOTICE OF SUCH
FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH PROCEEDING UNDER
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL NOT BE
INSTITUTED UNLESS:
S. 3009--C 143 A. 3009--C
A. THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH SUCH INTEREST AND
PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL LAWS OR REGULATIONS
SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, ISSUED
BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND
APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES OF THIS STATE AS TO
SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE SUPREME
COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED
OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH
MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING; OR
B. AT THE OPTION OF THE PETITIONER, SUCH UNDERTAKING MAY BE IN A SUM
SUFFICIENT TO COVER THE TAXES, INTERESTS AND PENALTIES STATED IN SUCH
DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN
THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL
NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION
PRECEDENT TO THE APPLICATION.
(7) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
THEREFOR DULY MADE TO THE PROPER FISCAL OFFICER OR OFFICERS, AND SUCH
OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
SUCH DETERMINATION SHALL BE REVIEWABLE BY A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, PROVIDED, HOWEVER,
THAT SUCH PROCEEDING IS INSTITUTED WITHIN THIRTY DAYS AFTER THE GIVING
OF THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE WAS
NOT PREVIOUSLY MADE, AND THAT AN UNDERTAKING IS FILED WITH THE PROPER
FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH SUCH SURETIES AS A
JUSTICE OF THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH
PROCEEDING BE DISMISSED OR THE TAXES CONFIRMED, THE PETITIONER WILL PAY
ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH
PROCEEDING.
(8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH
INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE
AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE
FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN
FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME.
(9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE
LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE CITY OF AUBURN AND
SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY. SUCH
REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE.
(10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION
OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN TWO YEARS
FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT
THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF
THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU-
ANT TO THIS SECTION.
(11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO
ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS
SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR
CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY.
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed December 31, 2027.
PART TT
Section 1. The tax law is amended by adding a new section 1202-kk to
read as follows:
S. 3009--C 144 A. 3009--C
§ 1202-KK. HOTEL OR MOTEL TAXES IN THE CITY OF BUFFALO. (1) NOTWITH-
STANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE CITY OF
BUFFALO, IN THE COUNTY OF ERIE, IS HEREBY AUTHORIZED AND EMPOWERED TO
ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH CITY A TAX, IN ADDITION TO
ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE SUCH AS
THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHORITY TO IMPOSE UPON
PERSONS OCCUPYING HOTEL OR MOTEL ROOMS IN SUCH CITY. FOR THE PURPOSES OF
THIS SECTION, THE TERM "HOTEL" OR "MOTEL" SHALL MEAN AND INCLUDE ANY
FACILITY CONSISTING OF RENTABLE UNITS AND PROVIDING LODGING ON AN OVER-
NIGHT BASIS AND SHALL INCLUDE THOSE FACILITIES DESIGNATED AND COMMONLY
KNOWN AS "BED AND BREAKFAST" AND "TOURIST" FACILITIES. THE RATES OF SUCH
TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH
ROOM, PROVIDED HOWEVER, THAT SUCH TAX SHALL NOT BE APPLICABLE TO A
PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION
THE TERM "PERMANENT RESIDENT" SHALL MEAN A PERSON OCCUPYING ANY ROOM OR
ROOMS IN A HOTEL OR MOTEL FOR AT LEAST NINETY CONSECUTIVE DAYS.
(2) SUCH TAX MAY BE COLLECTED AND ADMINISTERED BY THE COMMISSIONER OF
ADMINISTRATION, FINANCE, POLICY AND URBAN AFFAIRS OF THE CITY OF BUFFALO
BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED
AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH
LOCAL LAW.
(3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAX IMPOSED SHALL BE PAID BY
THE PERSON LIABLE THEREFOR TO THE OWNER OF THE HOTEL OR MOTEL ROOM OCCU-
PIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE
HOTEL OR MOTEL ROOM OCCUPIED FOR AND ON ACCOUNT OF THE CITY OF BUFFALO
IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE
RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE
TAX; AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR
CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM
THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, OR IN RESPECT TO NONPAY-
MENT OF THE TAX BY THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, AS IF
THE TAX WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME
AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE COMMISSIONER OF
ADMINISTRATION, FINANCE, POLICY AND URBAN AFFAIRS OF THE CITY, SPECIFIED
IN SUCH LOCAL LAW, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEED-
ING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO
BE PAID THE RENT OR CHARGE.
(4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE
PAYMENT OF THE TAX ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR
SHORTER PERIOD OF TIME.
(5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON
ANY TRANSACTION, BY OR WITH ANY OF THE FOLLOWING IN ACCORDANCE WITH
SECTION TWELVE HUNDRED THIRTY OF THIS ARTICLE:
A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A
PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER
STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI-
TICAL SUBDIVISION OF THE STATE;
B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA-
TION;
C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND
OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA-
BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL-
DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE
BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART
OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE
ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN
S. 3009--C 145 A. 3009--C
THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY
PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT
ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN
THIS PARAGRAPH.
(6) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR ANY
OTHER REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO THE
SUPREME COURT WITHIN THIRTY DAYS AFTER THE GIVING OF THE NOTICE OF SUCH
FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH PROCEEDING UNDER
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL NOT BE
INSTITUTED UNLESS:
A. THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH SUCH INTEREST AND
PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL LAW SHALL BE FIRST
DEPOSITED AND THERE IS FILED AN UNDERTAKING, ISSUED BY A SURETY COMPANY
AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPER-
INTENDENT OF FINANCIAL SERVICES OF THIS STATE AS TO SOLVENCY AND RESPON-
SIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE SUPREME COURT SHALL APPROVE
TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED OR THE TAX CONFIRMED
THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE
PROSECUTION OF SUCH PROCEEDING; OR
B. AT THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM
SUFFICIENT TO COVER THE TAXES, INTERESTS AND PENALTIES STATED IN SUCH
DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN
THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL
NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION
PRECEDENT TO THE APPLICATION.
(7) WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLE-
GALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR OFFICERS, AND SUCH
OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
SUCH DETERMINATION SHALL BE REVIEWABLE BY A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, PROVIDED, HOWEVER,
THAT SUCH PROCEEDING IS INSTITUTED WITHIN THIRTY DAYS AFTER THE GIVING
OF THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE WAS
NOT PREVIOUSLY MADE, AND THAT AN UNDERTAKING IS FILED WITH THE PROPER
FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH SUCH SURETIES AS A
JUSTICE OF THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH
PROCEEDING BE DISMISSED OR THE TAX CONFIRMED, THE PETITIONER WILL PAY
ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH
PROCEEDING.
(8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH
INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE
AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE
FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN
FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME.
(9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE
LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE CITY OF BUFFALO AND
SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY. SUCH
REVENUES SHALL BE USED AS FOLLOWS: TWENTY-FIVE PERCENT OF SUCH REVENUE
FROM THIS TAX SHALL BE ALLOCATED TO SUPPORT ORGANIZATIONS DEDICATED TO
MAINTENANCE OF THE CITY-OWNED PUBLIC REALM AND CITY-OWNED PARKING FACIL-
ITIES IN DOWNTOWN AS WELL AS PUBLIC SAFETY INITIATIVES UNDERTAKEN BY THE
BUFFALO POLICE DEPARTMENT AND OTHER ORGANIZATIONS IN DOWNTOWN, AND
SEVENTY-FIVE PERCENT SHALL BE ALLOCATED FOR CAPITAL IMPROVEMENTS TO
S. 3009--C 146 A. 3009--C
CITY-OWNED CULTURAL FACILITIES CITYWIDE, THE CITY-OWNED PUBLIC REALM IN
DOWNTOWN, AND CITY-OWNED PROFESSIONAL SPORTING VENUES.
(10) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO
ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS
SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR
CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY.
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed December 31, 2027.
PART UU
Section 1. Paragraphs 1 and 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, are 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 QUALIFIED GEOTHERMAL ENERGY SYSTEMS PLACED IN
SERVICE ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND TWENTY-FIVE, AND TEN
THOUSAND DOLLARS FOR QUALIFIED GEOTHERMAL ENERGY EQUIPMENT PLACED IN
SERVICE ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE.
(9) [Carryover] APPLICATION 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-SIX,
TAXPAYERS WHO ARE (A) MARRIED FILING JOINTLY OR QUALIFYING SURVIVING
SPOUSES WITH A FEDERAL ADJUSTED GROSS INCOME OF ONE HUNDRED EIGHTY THOU-
SAND DOLLARS OR LESS, OR (B) SINGLE, MARRIED FILING SEPARATE, OR HEADS
OF HOUSEHOLD WITH A FEDERAL ADJUSTED GROSS INCOME OF NINETY THOUSAND
DOLLARS OR LESS, MAY ELECT TO RECEIVE SUCH EXCESS AMOUNT 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. This act shall take effect immediately.
PART VV
Section 1. Section 800 of the tax law, as added by section 1 of part C
of chapter 25 of the laws of 2009, subsection (b) as amended by section
1 of part B of chapter 56 of the laws of 2011, paragraph 4 of subsection
(b) as amended by section 1 of part YY of chapter 59 of the laws of 2015
and subsection (e) as amended by section 1 of part B of chapter 59 of
the laws of 2023, is amended to read as follows:
§ 800. Definitions. For the purposes of this article:
(a) Metropolitan commuter transportation district. The metropolitan
commuter transportation district ("MCTD") means the area of the state
included in the district created and governed by section twelve hundred
sixty-two of the public authorities law. THE MCTD SHALL HAVE TWO ZONES:
(1) MCTD ZONE ONE SHALL BE COMPRISED OF THE COUNTIES OF BRONX, KINGS,
NEW YORK, QUEENS, AND RICHMOND.
S. 3009--C 147 A. 3009--C
(2) MCTD ZONE TWO SHALL BE COMPRISED OF THE COUNTIES OF DUTCHESS,
NASSAU, ORANGE, PUTNAM, ROCKLAND, SUFFOLK AND WESTCHESTER.
(b) Employer. Employer means an employer required by section six
hundred seventy-one of this chapter to deduct and withhold tax from
wages, [that has a payroll expense in excess of three hundred twelve
thousand five hundred dollars in any calendar quarter;] other than
(1) any agency or instrumentality of the United States;
(2) the United Nations;
(3) an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada; [or]
(4) Any eligible educational institution. An "eligible educational
institution" shall mean any public school district, a board of cooper-
ative educational services, a public elementary or secondary school, a
school approved pursuant to article eighty-five or eighty-nine of the
education law to serve students with disabilities of school age, or a
nonpublic elementary or secondary school that provides instruction in
grade one or above, all public library systems as defined in subdivision
one of section two hundred seventy-two of the education law, and all
public and free association libraries as such terms are defined in
subdivision two of section two hundred fifty-three of the education law;
OR
(5) ANY LOCAL GOVERNMENT EMPLOYER WHOSE COVERED EMPLOYEES ARE WITHIN
MCTD ZONE TWO.
(c) Payroll expense. Payroll expense means wages and compensation as
defined in sections 3121 and 3231 of the internal revenue code (without
regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to all
covered employees.
(d) Covered employee. Covered employee means an employee who is
employed within the MCTD.
(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.
(F) LOCAL GOVERNMENT EMPLOYER. LOCAL GOVERNMENT EMPLOYER MEANS (1) A
COUNTY, CITY, TOWN, VILLAGE OR ANY OTHER POLITICAL SUBDIVISION OR CIVIL
DIVISION OF THE STATE, (2) A PUBLIC IMPROVEMENT OR SPECIAL DISTRICT, (3)
A PUBLIC AUTHORITY, COMMISSION, COMMUNITY COLLEGE, OR PUBLIC BENEFIT
CORPORATION, (4) ANY OTHER PUBLIC CORPORATION, AGENCY OR INSTRUMENTALITY
OR UNIT OF GOVERNMENT WHICH EXERCISES GOVERNMENTAL POWERS UNDER THE LAWS
OF THE STATE, OR (5) IN THE CASE OF A COUNTY SHERIFF'S OFFICE IN THOSE
COUNTIES WHERE THE OFFICE OF SHERIFF IS AN ELECTED POSITION, BOTH THE
COUNTY AND THE SHERIFF, SHALL BE DESIGNATED AS A JOINT PUBLIC EMPLOYER
FOR ALL PURPOSES OF THIS ARTICLE.
§ 2. Section 801 of the tax law, as added by section 1 of part C of
chapter 25 of the laws of 2009, subsection (a) as amended by section 1
of part N of chapter 59 of the laws of 2012, paragraph 1 of subsection
(a) as amended by section 1 and subparagraph (B) of paragraph 2 of
subsection (a) as amended by section 3 of part Q of chapter 58 of the
laws of 2023 and subparagraph (A) of paragraph 2 of subsection (a) as
S. 3009--C 148 A. 3009--C
amended by section 1 of part C of chapter 59 of the laws of 2024, is
amended to read as follows:
§ 801. Imposition of tax and rate. (a) For the sole purpose of provid-
ing an additional stable and reliable dedicated funding source for the
metropolitan transportation authority and its subsidiaries and affil-
iates to preserve, operate and improve essential transit and transporta-
tion services in the metropolitan commuter transportation district, a
tax is hereby imposed on employers and individuals as follows: (1) (A)
For TAX QUARTERS BEGINNING BEFORE JULY FIRST, TWO THOUSAND TWENTY-FIVE,
employers who engage in business within the MCTD, in the counties of
Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester, the
tax is imposed at a rate of (i) eleven hundredths (.11) percent of the
payroll expense for employers with payroll expense GREATER THAN THREE
HUNDRED TWELVE THOUSAND FIVE HUNDRED DOLLARS AND no greater than three
hundred seventy-five thousand dollars in any calendar quarter, (ii)
twenty-three hundredths (.23) percent of the payroll expense for employ-
ers with payroll expense greater than three hundred seventy-five thou-
sand dollars and no greater than four hundred thirty-seven thousand five
hundred dollars in any calendar quarter, and (iii) thirty-four
hundredths (.34) percent of the payroll expense for employers with
payroll expense in excess of four hundred thirty-seven thousand five
hundred dollars in any calendar quarter. If the employer is a profes-
sional employer organization, as defined in section nine hundred sixteen
of the labor law, the employer's tax shall be calculated by determining
the payroll expense attributable to each client who has entered into a
professional employer agreement with such organization and the payroll
expense attributable to such organization itself, multiplying each of
those payroll expense amounts by the applicable rate set forth in this
paragraph and adding those products together.
(B) For TAX QUARTERS BEGINNING BEFORE JULY FIRST, TWO THOUSAND TWEN-
TY-FIVE, employers who engage in business within the MCTD, in the coun-
ties of Bronx, Kings, New York, Queens, and Richmond, the tax is imposed
at a rate of (i) eleven hundredths (.11) percent of the payroll expense
for employers with payroll expense GREATER THAN THREE HUNDRED TWELVE
THOUSAND FIVE HUNDRED DOLLARS AND no greater than three hundred seven-
ty-five thousand dollars in any calendar quarter, (ii) twenty-three
hundredths (.23) percent of the payroll expense for employers with
payroll expense greater than three hundred seventy-five thousand dollars
and no greater than four hundred thirty-seven thousand five hundred
dollars in any calendar quarter, and (iii) sixty hundredths (.60)
percent of the payroll expense for employers with payroll expense in
excess of four hundred thirty-seven thousand five hundred dollars in any
calendar quarter. If the employer is a professional employer organiza-
tion, as defined in section nine hundred sixteen of the labor law, the
employer's tax shall be calculated by determining the payroll expense
attributable to each client who has entered into a professional employer
agreement with such organization and the payroll expense attributable to
such organization itself, multiplying each of those payroll expense
amounts by the applicable rate set forth in this paragraph and adding
those products together.
(C) FOR TAX QUARTERS BEGINNING ON AND AFTER JULY FIRST, TWO THOUSAND
TWENTY-FIVE, FOR EMPLOYERS WITHIN MCTD ZONE ONE, THE TAX IS IMPOSED AT A
RATE OF (I) FIFTY-FIVE THOUSANDTHS (.055) PERCENT OF THE PAYROLL EXPENSE
FOR EMPLOYERS WITH PAYROLL EXPENSE GREATER THAN THREE HUNDRED TWELVE
THOUSAND FIVE HUNDRED DOLLARS AND NO GREATER THAN THREE HUNDRED SEVEN-
TY-FIVE THOUSAND DOLLARS IN ANY CALENDAR QUARTER, (II) ONE HUNDRED
S. 3009--C 149 A. 3009--C
FIFTEEN THOUSANDTHS (.115) PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS
WITH PAYROLL EXPENSE GREATER THAN THREE HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS AND NO GREATER THAN FOUR HUNDRED THIRTY-SEVEN THOUSAND FIVE
HUNDRED DOLLARS IN ANY CALENDAR QUARTER, (III) SIXTY HUNDREDTHS (.60)
PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS WITH PAYROLL EXPENSE GREAT-
ER THAN FOUR HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS AND NO
GREATER THAN TWO MILLION FIVE HUNDRED THOUSAND DOLLARS IN ANY CALENDAR
QUARTER; AND (IV) EIGHT HUNDRED NINETY-FIVE THOUSANDTHS (.895) PERCENT
OF THE PAYROLL EXPENSE FOR EMPLOYERS WITH PAYROLL EXPENSE IN EXCESS OF
TWO MILLION FIVE HUNDRED THOUSAND DOLLARS IN ANY CALENDAR QUARTER.
PROVIDED, HOWEVER, THAT FOR EMPLOYERS WITHIN MCTD ZONE ONE WHO ARE LOCAL
GOVERNMENT EMPLOYERS AS DEFINED IN THIS ARTICLE WITH PAYROLL EXPENSE IN
EXCESS OF TWO MILLION FIVE HUNDRED THOUSAND DOLLARS IN ANY CALENDAR
QUARTER, THE TAX IS IMPOSED AT A RATE OF SIXTY HUNDREDTHS (.60) PERCENT
OF THE PAYROLL EXPENSE. IF THE EMPLOYER IS A PROFESSIONAL EMPLOYER
ORGANIZATION, AS DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR
LAW, THE EMPLOYER'S TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL
EXPENSE ATTRIBUTABLE TO EACH CLIENT WHO HAS ENTERED INTO A PROFESSIONAL
EMPLOYER AGREEMENT WITH SUCH ORGANIZATION AND THE PAYROLL EXPENSE
ATTRIBUTABLE TO SUCH ORGANIZATION ITSELF, MULTIPLYING EACH OF THOSE
PAYROLL EXPENSE AMOUNTS BY THE APPLICABLE RATE SET FORTH IN THIS PARA-
GRAPH AND ADDING THOSE PRODUCTS TOGETHER.
(D) FOR TAX QUARTERS BEGINNING ON AND AFTER JULY FIRST, TWO THOUSAND
TWENTY-FIVE, FOR EMPLOYERS WITHIN MCTD ZONE TWO THAT ARE NOT LOCAL
GOVERNMENT EMPLOYERS, THE TAX IS IMPOSED AT A RATE OF (I) FIFTY-FIVE
THOUSANDTHS (.055) PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS WITH
PAYROLL EXPENSE GREATER THAN THREE HUNDRED TWELVE THOUSAND FIVE HUNDRED
DOLLARS AND NO GREATER THAN THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS
IN ANY CALENDAR QUARTER, (II) ONE HUNDRED FIFTEEN THOUSANDTHS (.115)
PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS WITH PAYROLL EXPENSE GREAT-
ER THAN THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS AND NO GREATER THAN
FOUR HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS IN ANY CALENDAR
QUARTER, (III) THIRTY-FOUR HUNDREDTHS (.34) PERCENT OF THE PAYROLL
EXPENSE FOR EMPLOYERS WITH PAYROLL EXPENSE GREATER THAN FOUR HUNDRED
THIRTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS AND NO GREATER THAN TWO
MILLION FIVE HUNDRED THOUSAND DOLLARS IN ANY CALENDAR QUARTER; AND (IV)
SIX HUNDRED THIRTY-FIVE THOUSANDTHS (.635) PERCENT OF THE PAYROLL
EXPENSE FOR EMPLOYERS WITH PAYROLL EXPENSE IN EXCESS OF TWO MILLION FIVE
HUNDRED THOUSAND DOLLARS IN ANY CALENDAR QUARTER. IF THE EMPLOYER IS A
PROFESSIONAL EMPLOYER ORGANIZATION, AS DEFINED IN SECTION NINE HUNDRED
SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S TAX SHALL BE CALCULATED BY
DETERMINING THE PAYROLL EXPENSE ATTRIBUTABLE TO EACH CLIENT WHO HAS
ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT WITH SUCH ORGANIZATION
AND THE PAYROLL EXPENSE ATTRIBUTABLE TO SUCH ORGANIZATION ITSELF, MULTI-
PLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS BY THE APPLICABLE RATE SET
FORTH IN THIS PARAGRAPH AND ADDING THOSE PRODUCTS TOGETHER.
(2) FOR INDIVIDUALS IN CALENDAR YEARS BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-SIX: (A) [For individuals,] the tax is imposed at a
rate of thirty-four hundredths (.34) percent of the net earnings from
self-employment of individuals that are attributable to the MCTD, in the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and
Westchester, if such earnings attributable to the MCTD exceed fifty
thousand dollars for the tax year.
(B) [For individuals,] the tax is imposed at a rate of sixty
hundredths (.60) percent of the net earnings from self-employment of
individuals that are attributable to the MCTD, in the counties of Bronx,
S. 3009--C 150 A. 3009--C
Kings, New York, Queens, and Richmond, if such earnings attributable to
the MCTD exceed fifty thousand dollars for the tax year.
(3) FOR INDIVIDUALS IN CALENDAR YEARS BEGINNING ON AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX: (A) THE TAX IS IMPOSED AT A RATE OF
SIXTY HUNDREDTHS (.60) PERCENT OF THE NET EARNINGS FROM SELF-EMPLOYMENT
OF INDIVIDUALS THAT ARE ATTRIBUTABLE TO MCTD ZONE ONE, IF SUCH EARNINGS
ATTRIBUTABLE TO THE MCTD EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS FOR
THE TAX YEAR.
(B) THE TAX IS IMPOSED AT A RATE OF THIRTY-FOUR HUNDREDTHS (.34)
PERCENT OF THE NET EARNINGS FROM SELF-EMPLOYMENT OF INDIVIDUALS THAT ARE
ATTRIBUTABLE TO MCTD ZONE TWO, IF SUCH EARNINGS ATTRIBUTABLE TO THE MCTD
EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS FOR THE TAX YEAR.
(b)(1) An individual having net earnings from self-employment from
activity both within and without the metropolitan commuter transporta-
tion district is required to allocate and apportion such net earnings to
the MCTD in the manner required for allocation and apportionment of
income under article twenty-two of this chapter.
(2) In the case of individuals with earnings from self-employment, the
net earnings from self employment threshold in [paragraph] PARAGRAPHS
two OR THREE of subsection (a) of this section will be computed on an
individual basis regardless of whether that individual filed a joint
personal income tax return.
(c) The determination of whether a covered employee is employed within
the MCTD will be made by utilizing the rules applicable to the jurisdic-
tion of employment for purposes of the statewide wage reporting system
under section one hundred seventy-one-a of this chapter and substituting
the MCTD for the state in that application.
§ 3. Subdivision 4 of section 1270-h of the public authorities law is
renumbered subdivision 5 and a new subdivision 4 is added to read as
follows:
4. COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-FIVE, NO LATER THAN
THE LAST BUSINESS DAY OF EACH MONTH, AFTER SATISFYING THE REQUIREMENTS
OF ANY DEBT SERVICE OR RESERVE REQUIREMENTS, IF ANY, OF ANY RESOLUTION
AUTHORIZING BONDS, NOTES OR OTHER OBLIGATIONS, THE AUTHORITY SHALL
TRANSFER TWENTY-EIGHT AND FIVE-TENTHS PERCENT OF THE REVENUE, INCLUDING
TAXES, INTEREST AND PENALTIES COLLECTED IN ACCORDANCE WITH ARTICLE TWEN-
TY-THREE OF THE TAX LAW TO THE 2025 TO 2029 CAPITAL PROGRAM ACCOUNT IN
THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL LOCKBOX FUND ESTAB-
LISHED PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THIS CHAPTER.
§ 4. Section 553-j of the public authorities law, as added by section
5 of subpart A of part ZZZ of chapter 59 of the laws of 2019, is amended
to read as follows:
§ 553-j. [Additional powers and provisions in relation to central
business district tolling program] METROPOLITAN TRANSPORTATION AUTHORITY
CAPITAL LOCKBOX FUND. 1. The authority shall establish a fund to be
known as the [central business district tolling] METROPOLITAN TRANSPOR-
TATION AUTHORITY capital lockbox fund which shall be kept separate from
and shall not be commingled with any other monies of the authority. The
fund shall consist of TWO SEPARATE AND DISTINCT ACCOUNTS: (I) THE "2020
TO 2024 CAPITAL PROGRAM ACCOUNT" AND (II) THE "2025 TO 2029 CAPITAL
PROGRAM ACCOUNT".
(A) THE 2020 TO 2024 CAPITAL PROGRAM ACCOUNT SHALL CONSIST OF all
monies received by the authority pursuant to article forty-four-C of the
vehicle and traffic law, subdivision twelve-a of section five hundred
fifty-three of this title, and revenues of the real estate transfer tax
deposited pursuant to subdivision (b) of section fourteen hundred twen-
S. 3009--C 151 A. 3009--C
ty-one of the tax law, and sales tax pursuant to subdivision (c) of
section eleven hundred forty-eight of the tax law, subparagraph (B) of
paragraph five of subdivision (c) of section twelve hundred sixty-one of
the tax law, and funds appropriated from the central business district
trust fund established pursuant to section [ninty-nine-ff] NINETY-NINE-
FF of the state finance law.
(B) THE 2025 TO 2029 CAPITAL PROGRAM ACCOUNT SHALL CONSIST OF ALL
MONIES DEPOSITED PURSUANT TO SUBDIVISION FOUR OF SECTION TWELVE HUNDRED
SEVENTY-H OF THIS CHAPTER.
2. Monies in the [fund] 2020 TO 2024 CAPITAL PROGRAM ACCOUNT shall be
applied, subject to agreements with bondholders and applicable federal
law, to the payment of operating, administration, and other necessary
expenses of the authority, or to the city of New York subject to the
memorandum of understanding executed pursuant to subdivision two-a of
section seventeen hundred four of the vehicle and traffic law properly
allocable to such program, including the planning, designing, construct-
ing, installing or maintaining of the central business district tolling
program, including, without limitation, the central business district
tolling infrastructure, the central business district tolling collection
system and the central business district tolling customer service
center, and the costs of any metropolitan transportation authority capi-
tal projects included within the 2020 to 2024 MTA capital program or any
successor programs. Monies in the [fund] 2020 TO 2024 CAPITAL PROGRAM
ACCOUNT may be: (a) pledged by the authority to secure and be applied to
the payment of the bonds, notes or other obligations of the authority to
finance the costs of the central business district tolling program,
including, without limitation, the central business district tolling
infrastructure, the central business district tolling collection system
and the central business district tolling customer service center, and
the costs of any metropolitan transportation authority capital projects
included within the 2020 to 2024 MTA capital program or any successor
programs, including debt service, reserve requirements, if any, the
payment of amounts required under bond and note facilities or agreements
related thereto, the payment of federal government loans, security or
credit arrangements or other agreements related thereto; or (b) used by
the authority for the payment of such capital costs of the central busi-
ness district tolling program and the costs of any metropolitan trans-
portation authority capital projects included within the 2020 to 2024
MTA capital program or any successor programs; or (c) transferred to the
metropolitan transportation authority and (1) pledged by the metropol-
itan transportation authority to secure and be applied to the payment of
the bonds, notes or other obligations of the metropolitan transportation
authority to finance the costs of any metropolitan transportation
authority capital projects included within the 2020 to 2024 MTA capital
program or any successor programs, including debt service, reserve
requirements, if any, the payment of amounts required under bond and
note facilities or agreements related thereto, the payment of federal
government loans, security or credit arrangements or other agreements
related thereto, or (2) used by the metropolitan transportation authori-
ty for the payment of OR TO REIMBURSE the costs, INCLUDING DEBT SERVICE,
of any metropolitan transportation authority capital projects included
within the 2020 to 2024 MTA capital program or any successor programs.
Such revenues shall only supplement and shall not supplant any federal,
state, or local funds expended by the authority or the metropolitan
transportation authority, or such authority's or metropolitan transpor-
tation authority's affiliates or subsidiaries for such respective
S. 3009--C 152 A. 3009--C
purposes. Central business district toll revenues may be used as
required to obtain, utilize, or maintain federal authorization to
collect tolls on federal aid highways.
2-A. MONIES IN THE 2025 TO 2029 CAPITAL PROGRAM ACCOUNT SHALL BE
APPLIED, SUBJECT TO AGREEMENTS WITH BONDHOLDERS AND APPLICABLE FEDERAL
LAW, TO THE PAYMENT OF THE COSTS OF ANY METROPOLITAN TRANSPORTATION
AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2025 TO 2029 MTA CAPITAL
PROGRAM OR ANY SUCCESSOR PROGRAMS. MONIES IN THE 2025 TO 2029 CAPITAL
PROGRAM ACCOUNT MAY BE: (A) PLEDGED BY THE AUTHORITY TO SECURE AND BE
APPLIED TO THE PAYMENT OF THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE
AUTHORITY TO FINANCE THE COSTS OF ANY METROPOLITAN TRANSPORTATION
AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2025 TO 2029 MTA CAPITAL
PROGRAM OR ANY SUCCESSOR PROGRAMS, INCLUDING DEBT SERVICE, RESERVE
REQUIREMENTS, IF ANY, THE PAYMENT OF AMOUNTS REQUIRED UNDER BOND AND
NOTE FACILITIES OR AGREEMENTS RELATED THERETO, THE PAYMENT OF FEDERAL
GOVERNMENT LOANS, SECURITY OR CREDIT ARRANGEMENTS OR OTHER AGREEMENTS
RELATED THERETO; OR (B) USED BY THE AUTHORITY FOR THE PAYMENT OF SUCH
CAPITAL COSTS OF ANY METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL
PROJECTS INCLUDED WITHIN THE 2025 TO 2029 MTA CAPITAL PROGRAM OR ANY
SUCCESSOR PROGRAMS; OR (C) TRANSFERRED TO THE METROPOLITAN TRANSPORTA-
TION AUTHORITY AND (1) PLEDGED BY THE METROPOLITAN TRANSPORTATION
AUTHORITY TO SECURE AND BE APPLIED TO THE PAYMENT OF THE BONDS, NOTES OR
OTHER OBLIGATIONS OF THE METROPOLITAN TRANSPORTATION AUTHORITY TO
FINANCE THE COSTS OF ANY METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL
PROJECTS INCLUDED WITHIN THE 2025 TO 2029 MTA CAPITAL PROGRAM OR ANY
SUCCESSOR PROGRAMS, INCLUDING DEBT SERVICE, RESERVE REQUIREMENTS, IF
ANY, THE PAYMENT OF AMOUNTS REQUIRED UNDER BOND AND NOTE FACILITIES OR
AGREEMENTS RELATED THERETO, THE PAYMENT OF FEDERAL GOVERNMENT LOANS,
SECURITY OR CREDIT ARRANGEMENTS OR OTHER AGREEMENTS RELATED THERETO, OR
(2) USED BY THE METROPOLITAN TRANSPORTATION AUTHORITY FOR THE PAYMENT OF
OR TO REIMBURSE THE COSTS, INCLUDING DEBT SERVICE, OF ANY METROPOLITAN
TRANSPORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2025 TO
2029 MTA CAPITAL PROGRAM OR ANY SUCCESSOR PROGRAMS. SUCH REVENUES SHALL
ONLY SUPPLEMENT AND SHALL NOT SUPPLANT ANY FEDERAL, STATE, OR LOCAL
FUNDS EXPENDED BY THE AUTHORITY OR THE METROPOLITAN TRANSPORTATION
AUTHORITY, OR SUCH AUTHORITY'S OR METROPOLITAN TRANSPORTATION AUTHORI-
TY'S AFFILIATES OR SUBSIDIARIES FOR SUCH RESPECTIVE PURPOSES.
3. Any monies deposited in the fund shall be held in the fund free and
clear of any claim by any person arising out of or in connection with
article forty-four-C of the vehicle and traffic law [and], subdivision
twelve-a of section five hundred fifty-three of this title, AND ARTICLE
TWENTY-THREE OF THE TAX LAW. Without limiting the generality of the
foregoing, no person paying any amount that is deposited into the fund
shall have any right or claim against the authority or the metropolitan
transportation authority, any of their bondholders, any of the authori-
ty's or the metropolitan transportation authority's subsidiaries or
affiliates to any monies in or distributed from the fund or in respect
of a refund, rebate, credit or reimbursement of monies arising out of or
in connection with article forty-four-C of the vehicle and traffic law
[and], subdivision twelve-a of section five hundred fifty-three of this
title, AND ARTICLE TWENTY-THREE OF THE TAX LAW.
3-a. Of the capital project costs paid by this fund: eighty percent
shall be capital project costs of the New York city transit authority
and its subsidiary, Staten Island Rapid Transit Operating Authority, and
MTA Bus with priority given to the subway system, new signaling, new
subway cars, track and car repair, accessibility, buses and bus system
S. 3009--C 153 A. 3009--C
improvements and further investments in expanding transit availability
to areas in the outer boroughs that have limited mass transit options;
ten percent shall be capital project costs of the Long Island Rail Road,
including but not limited to, parking facilities, rolling stock, capaci-
ty enhancements, accessibility, and expanding transit availability to
areas in the Metropolitan Commuter Transportation District that have
limited mass transit options; and ten percent shall be capital project
costs of the Metro-North Commuter Railroad Company, including but not
limited to, parking facilities, rolling stock, capacity enhancements,
accessibility, and expanding transit availability to areas in the Metro-
politan Commuter Transportation District that have limited mass transit
options.
4. The authority shall report annually on all receipts and expendi-
tures of the fund AND EACH ACCOUNT WITHIN THE FUND. The report shall
detail operating expenses of the central business district tolling
program and all fund expenditures including capital projects. The report
shall be readily available to the public, and shall be posted on the
authority's website and be submitted to the governor, the temporary
president of the senate, the speaker of the assembly, the mayor and
council of the city of New York, the metropolitan transportation author-
ity board, and the metropolitan transportation authority capital program
review board.
5. Any operating funding used for the purposes of a central business
district tolling program SHALL ONLY BE from [this fund] THE 2020 TO 2024
CAPITAL PROGRAM ACCOUNT AND shall be approved, annually, in a plan of
expenditures, by the director of the budget.
§ 5. This act shall take effect immediately; provided, however, that
sections three and four of this act shall apply to tax quarters begin-
ning on and after July 1, 2025.
PART WW
Section 1. Paragraph 2 of subdivision (d) of section 1109 of the tax
law, as added by chapter 485 of the laws of 1981, is amended to read as
follows:
(2) On or before the twelfth day of each month, after reserving such
amount for such refunds and such costs, the commissioner of taxation and
finance shall certify to the comptroller the amount of all revenues so
received during the prior month as a result of the taxes, interest and
penalties so imposed and in addition on or before the last day of June
the commissioner shall certify the amount of such revenues received
during and including the first twenty-five days of June. [The amount of
revenues so certified shall be deposited by the comptroller in the mass
transportation operating assistance fund established by section eighty-
eight-a of the state finance law to the credit of the metropolitan mass
transportation operating assistance account therein.] FIFTEEN PERCENT OF
THE REVENUES SO CERTIFIED SHALL BE DEPOSITED BY THE COMPTROLLER IN THE
MASS TRANSPORTATION OPERATING ASSISTANCE FUND ESTABLISHED BY SECTION
EIGHTY-EIGHT-A OF THE STATE FINANCE LAW TO THE CREDIT OF THE METROPOL-
ITAN MASS TRANSPORTATION OPERATING ASSISTANCE ACCOUNT THEREIN. EIGHTY-
FIVE PERCENT OF THE REVENUES SO CERTIFIED SHALL BE DEPOSITED BY THE
COMPTROLLER IN THE DEDICATED MASS TRANSPORTATION TRUST FUND ESTABLISHED
PURSUANT TO SECTION EIGHTY-NINE-C OF THE STATE FINANCE LAW TO BE
DISTRIBUTED AS FOLLOWS: EIGHTY-FIVE PERCENT OF SUCH AMOUNT SHALL BE
ALLOCATED TO THE NEW YORK CITY TRANSIT AUTHORITY AND ITS SUBSIDIARIES
AND THE STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY AND FIFTEEN
S. 3009--C 154 A. 3009--C
PERCENT OF SUCH AMOUNT SHALL BE ALLOCATED TO THE LONG ISLAND RAIL ROAD
COMPANY AND METRO-NORTH COMMUTER RAILROAD COMPANY IN ACCORDANCE WITH THE
PROCEDURES FOR PAYMENT AND DISTRIBUTION SPECIFIED IN SECTION TWELVE
HUNDRED SEVENTY-C OF THE PUBLIC AUTHORITIES LAW, FOR PAYMENT, SUBJECT TO
APPROPRIATION, TO THE METROPOLITAN TRANSPORTATION AUTHORITY DEDICATED
TAX FUND ESTABLISHED PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-C OF THE
PUBLIC AUTHORITIES LAW.
§ 2. Paragraph 3 of subdivision g of section 1109 of the tax law, as
amended by section 2 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
(3) By the fifteenth day of the month in which the commissioner has
made the certifications to the comptroller described in paragraph two of
this subdivision, the comptroller shall bill any county, city or school
district in such metropolitan commuter transportation district which
provides such clothing and footwear exemption, and any city in such
district in which the taxes imposed by section eleven hundred eight of
this part are in effect, an amount equal to one-half of the amount
certified to the comptroller by the commissioner in respect of such
county, city or school district; and such county, city or school
district shall pay the amount of such bill to the comptroller by the
twenty-fifth day of such month. The comptroller shall deposit any such
amounts received [in the mass transportation operating assistance fund
established by section eighty-eight-a of the state finance law to the
credit of the metropolitan mass transportation operating assistance
account therein] AS PROVIDED IN SUBDIVISION (D) OF THIS SECTION.
§ 3. Paragraph 4 of subdivision g of section 1109 of the tax law, as
amended by section 2 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
(4) In the event that a county, city or school district imposing tax
pursuant to the authority of subpart B of part I of article twenty-nine
of this chapter does not pay in full a bill described in paragraph three
of this subdivision by the twenty-fifth day of the month described in
paragraphs two and three of this subdivision, the comptroller shall
deduct any amount not paid from the amount of the next payment or
payments due such county, city or school district pursuant to subdivi-
sion (c) of section twelve hundred sixty-one of this chapter until such
amount not paid has been recovered. The comptroller shall deposit the
amounts so deducted and recovered [in the mass transportation operating
assistance fund] to be credited as provided in paragraph three of this
subdivision.
§ 4. Paragraph 5 of subdivision g of section 1109 of the tax law, as
amended by section 2 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
(5) In the event that a city in which the taxes imposed by section
eleven hundred eight of this article are in effect does not pay in full
a bill described in paragraph three of this subdivision by the twenty-
fifth day of the month described in paragraphs two and three of this
subdivision, the comptroller shall deduct any amount not paid from the
amount of any other moneys due such city from the comptroller, not
otherwise pledged, dedicated or encumbered pursuant to other state law,
until such amount not paid has been recovered. The comptroller shall
deposit the amounts so deducted and recovered [in the mass transporta-
tion operating assistance fund] to be credited as provided in paragraph
three of this subdivision.
S. 3009--C 155 A. 3009--C
§ 5. Paragraph 7 of subdivision g of section 1109 of the tax law, as
amended by section 2 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
(7) On the same date that the comptroller is required to bill a coun-
ty, city or school district an amount as provided in paragraph three of
this subdivision, the comptroller shall, after having first made any
deposits required by section ninety-two-r of the state finance law and
only to the extent that there are moneys remaining after having made
such required deposits, withdraw from the state treasury, to the debit
of the general fund, an amount equal to the total of the amounts
required to be billed to counties, cities and school districts pursuant
to such subdivision three and deposit such total amount [in the mass
transportation operating assistance fund] to be credited as provided in
such paragraph three. The amount of any over calculation or under calcu-
lation determined in paragraph six of this subdivision shall likewise be
applied to the amounts required to be deposited under this paragraph, so
that the amounts deposited under this paragraph equal the total of the
amounts required to be billed to counties, cities and school districts
under such paragraph three, as adjusted, pursuant to paragraph six of
this subdivision.
§ 6. Paragraph 3 of subdivision h of section 1109 of the tax law, as
amended by section 2 of part M-1 of chapter 109 of the laws of 2006, is
amended to read as follows:
(3) The comptroller shall, after having first made any deposits
required by section ninety-two-r of the state finance law and only to
the extent that there are moneys remaining after having made such
required deposits, withdraw from the state treasury, to the debit of the
general fund, and shall deposit the amount certified by the commissioner
as such revenue foregone [in the mass transportation operating assist-
ance fund established by section eighty-eight-a of the state finance law
to the credit of the metropolitan mass transportation operating assist-
ance account therein] AS PROVIDED IN SUBDIVISION (D) OF THIS SECTION.
§ 7. Paragraph (a) of subdivision 7 of section 88-a of the state
finance law, as added by chapter 481 of the laws of 1981, is amended to
read as follows:
(a) The "metropolitan mass transportation operating assistance
account" shall consist of THAT PROPORTION OF the revenues derived from
the taxes for the metropolitan transportation district imposed by
section eleven hundred nine of the tax law AS SPECIFIED IN SUCH SECTION
and that proportion of the receipts received pursuant to the tax imposed
by article [nine-a] NINE-A of such law as specified in section one
hundred seventy-one-a of such law, and that proportion of the receipts
received pursuant to the tax imposed by article nine of such law as
specified in section two hundred five of such law, and the receipts
required to be deposited pursuant to the provisions of section one
hundred eighty-two-a OF SUCH LAW, and all other moneys credited or
transferred thereto from any other fund or source pursuant to law.
§ 8. Subdivision 3 of section 89-c of the state finance law, as
amended by chapter 56 of the laws of 1993, is amended to read as
follows:
3. Moneys in the dedicated mass transportation trust fund shall,
following appropriation by the legislature, be utilized for the recon-
struction, replacement, purchase, modernization, improvement, recondi-
tioning, preservation and maintenance of mass transit facilities, vehi-
cles and rolling stock, or the payment of debt service or operating
expenses incurred by mass transit operating agencies, and for rail
S. 3009--C 156 A. 3009--C
projects authorized pursuant to section fourteen-j of the transportation
law, for payments to the general debt service fund of amounts equal to
amounts required for service contract payments related to rail projects
as provided and authorized by section three hundred eighty-six of the
public authorities law and for programs to assist small and minority and
women-owned firms engaged in transportation construction and recon-
struction projects, including a revolving fund for working capital
loans, and a bonding guarantee assistance program in accordance with
provisions of this chapter. It is the intent of the governor to submit
and the legislature to enact in a budget bill for fiscal year nineteen
hundred ninety-four--ninety-five, two appropriations from the dedicated
mass transportation trust fund to the metropolitan transportation
authority dedicated tax fund established by section twelve hundred
seventy-c of the public authorities law. One such appropriation shall be
equal to the amounts expected to be available for such purpose pursuant
to subdivision (d) of section three hundred one-j of the tax law during
the nineteen hundred ninety-four--ninety-five fiscal year and shall be
effective in that fiscal year. The other such appropriation shall be
equal to the amount expected to be available for such purpose pursuant
to subdivision (d) of section three hundred one-j of the tax law during
the nineteen hundred ninety-five--ninety-six fiscal year and shall,
notwithstanding the provisions of section forty of this chapter, take
effect on the first day of the nineteen hundred ninety-five--ninety-six
fiscal year and lapse on the last day of that fiscal year. It is the
intent of the governor to submit and the legislature to enact for each
fiscal year after the nineteen hundred ninety-four--ninety-five fiscal
year in an annual budget bill: (i) an appropriation for the amount
expected to be available in the dedicated mass transportation trust fund
during such fiscal year for the metropolitan transportation authority
pursuant to subdivision (d) of section three hundred one-j of the tax
law AND PARAGRAPH TWO OF SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINE
OF THE TAX LAW, including any amounts on deposit therein from any prior
year which have been previously appropriated, and (ii) an appropriation
of the amounts projected by the director of the budget to be deposited
in the metropolitan transportation authority dedicated tax fund from the
dedicated mass transportation trust fund pursuant to subdivision (d) of
section three hundred one-j of the tax law AND PARAGRAPH TWO OF SUBDIVI-
SION (D) OF SECTION ELEVEN HUNDRED NINE OF THE TAX LAW, for the next
succeeding fiscal year. Such appropriation for payment of revenues
expected to be received in the succeeding fiscal year shall, notwith-
standing section forty of this chapter, take effect on the first day of
such succeeding fiscal year and lapse on the last day of such fiscal
year. If for any fiscal year commencing on or after the first day of
April, nineteen hundred ninety-four the governor fails to submit a budg-
et bill containing the foregoing, or the legislature fails to enact a
bill with such provisions, then the authority shall notify the comp-
troller, the director of the budget, the chairperson of the senate
finance committee and the chairperson of the assembly ways and means
committee of amounts required to be disbursed from the appropriation
made during the preceding fiscal year for payment in such fiscal year.
In no event shall the comptroller make any payments from such appropri-
ation prior to May first of such fiscal year, and unless and until the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee have been
notified of the required payments and the timing of such payments to be
made from the dedicated mass transportation trust fund to the metropol-
S. 3009--C 157 A. 3009--C
itan transportation authority dedicated tax fund at least forty-eight
hours prior to any such payments. Until such time as payments pursuant
to such appropriation are made in full, revenues in the dedicated mass
transportation trust fund shall not be paid over to any person other
than the metropolitan transportation authority. Nothing contained in
this subdivision shall be deemed to restrict the right of the state to
amend, repeal, modify or otherwise alter statutes imposing or relating
to the taxes imposed pursuant to section three hundred one-j of the tax
law, THE TAXES IMPOSED PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (D) OF
SECTION ELEVEN HUNDRED NINE OF THE TAX LAW, or the appropriations relat-
ing thereto. The metropolitan transportation authority shall not include
within any resolution, contract or agreement with holders of the bonds
or notes issued under section twelve hundred sixty-nine of the public
authorities law any provision which provides that a default occurs as a
result of the state exercising its right to amend, repeal, modify or
otherwise alter such taxes or appropriations.
§ 9. Subdivision 2 of section 1270-c of the public authorities law, as
added by chapter 56 of the laws of 1993, is amended to read as follows:
2. There shall be deposited, pursuant to appropriation, into the fund
the moneys deposited in the dedicated mass transportation trust fund for
payment to the metropolitan transportation authority dedicated tax fund
pursuant to the provisions of subdivision (d) of section three hundred
one-j of the tax law, PARAGRAPH TWO OF SUBDIVISION (D) OF SECTION ELEVEN
HUNDRED NINE OF THE TAX LAW, and any other moneys collected for or
transferred to such fund pursuant to section eighty-eight-a of the state
finance law and any other provision of law directing or permitting the
deposit of moneys in such fund.
§ 10. Subdivision 3 of section 1270-c of the public authorities law,
as amended by section 30 of part O of chapter 61 of the laws of 2000, is
amended to read as follows:
3. Moneys in the fund may be (a) pledged by the authority to secure
and be applied to the payment of its bonds, notes or other obligations
specified by the authority and issued to finance (i) transit projects
undertaken for the New York city transit authority and its subsidiaries
and (ii) transportation facilities undertaken for the authority and its
subsidiaries and (b) used for payment of operating costs, and capital
costs, including debt service, reserve requirements, if any, the payment
of amounts required under bond and note facilities or agreements related
thereto, the payment of federal government loans, security or credit
arrangements or other agreements related thereto, and the payment of all
costs related to such obligations, of or for the authority, the New York
city transit authority and their subsidiaries as the authority shall
determine. To the extent moneys in the fund have been pledged by the
authority to secure and pay its bonds, notes or other obligations as
herein provided, moneys deposited into the fund shall first be deposited
into the pledged amounts account to the extent necessary to satisfy the
requirements of any debt service or reserve requirements, if any, of the
resolution authorizing such bonds, notes or other obligations. After
satisfaction of such requirements of the resolution, or if the authority
has not so pledged the moneys in the fund, moneys deposited in the fund
shall be directly deposited into the operating and capital costs account
and, subject to the provisions of any resolutions of the authority not
secured by the pledged amounts account, transferred forthwith to or for
the benefit of the New York city transit authority and its subsidiaries
and the Staten Island rapid transit operating authority (the "TA") and
to and for the benefit of the Long Island Rail Road company and the
S. 3009--C 158 A. 3009--C
Metro-North commuter rail road company (the "CRR") as provided in this
section.
Moneys in the operating and capital costs account which were deposited
in the fund pursuant to appropriation from moneys deposited in the dedi-
cated mass transportation trust fund for payment to the metropolitan
transportation authority dedicated tax fund pursuant to subdivision (d)
of section three hundred one-j of the tax law OR PARAGRAPH TWO OF SUBDI-
VISION (D) OF SECTION ELEVEN HUNDRED NINE OF THE TAX LAW (the "remaining
PBT amount") shall be distributed by the authority as follows: an amount
equal to the debt service incurred in such calendar year as a result of
obligations issued and secured by moneys in the fund, to the extent such
debt service is to be paid from money deposited in the fund pursuant to
appropriation from moneys deposited in the dedicated mass transportation
trust fund for payment to the metropolitan transportation authority
dedicated tax fund pursuant to subdivision (d) of section three hundred
one-j of the tax law OR PARAGRAPH TWO OF SUBDIVISION (D) OF SECTION
ELEVEN HUNDRED NINE OF THE TAX LAW ("PBT debt service"), shall be added
to the remaining PBT amount. The sum of these figures shall then be
allocated as follows: eighty-five per centum of such sum shall be allo-
cated to the TA and fifteen per centum of such sum shall be allocated to
the CRR. The amounts so allocated shall then be reduced respectively by
the proportional amount of PBT debt service attributable to the payments
for transit projects undertaken for the TA and transportation facility
projects undertaken for the CRR. The remaining amounts shall constitute
the respective distributable shares of the remaining PBT amount and
shall be distributed to or for the benefit of the TA and the CRR.
Moneys in the operating and capital costs account which were deposited
in the fund pursuant to section eighty-eight-a of the state finance law
(the "remaining MMTOA amount") shall be distributed by the authority as
follows: an amount equal to the debt service incurred in such calendar
year as a result of obligations issued and secured by money in the fund,
to the extent such debt service is to be paid from money deposited in
the fund pursuant to section eighty-eight-a of the state finance law
("MMTOA debt service"), shall be added to the remaining MMTOA amount.
The sum of these figures shall then be allocated as follows: there shall
be allocated (i) to the TA an amount of such sum which bears the same
proportion to such sum as the amount appropriated and paid during such
calendar year from the metropolitan mass transportation operating
assistance account to the authority for the operating expenses of the TA
bears to the total amounts so appropriated and paid from such operating
assistance account during such calendar year to the TA and CRR combined
and (ii) to the CRR an amount of such sum which bears the same propor-
tion to such sum as the amount appropriated and paid during such calen-
dar year from the metropolitan mass transportation operating assistance
account to the CRR bears to the total amounts so appropriated and paid
from such operating assistance account during such calendar year to the
TA and CRR combined. The amounts so allocated shall then be reduced
respectively by the proportional amount of MMTOA debt service attribut-
able to the payments for transit projects undertaken for the TA and
transportation facility projects undertaken for the CRR. The remaining
amounts shall constitute the respective distributable shares of the
remaining MMTOA amount and shall be distributed to or for the benefit of
the TA and the CRR. In no event shall the authority utilize any measure
or calculation for determining such distributable shares other than the
formula prescribed herein nor shall the authority take any action which
S. 3009--C 159 A. 3009--C
would result in the use of such money which is different from or incon-
sistent with the use prescribed in this section.
To the extent that amounts described in the preceding two paragraphs
are distributed more frequently than annually, each such distribution
shall be made as nearly as may be practicable in accordance with the
allocations described above to the TA and the CRR. Within thirty days
after the end of each calendar year, the authority shall certify to the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee, the amount
of money deposited in the fund pursuant to appropriation from moneys
deposited in the dedicated mass transportation trust fund for payment to
the metropolitan transportation authority dedicated tax fund pursuant to
subdivision (d) of section three hundred one-j of the tax law, PARAGRAPH
TWO OF SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINE OF THE TAX LAW,
and section eighty-eight-a of the state finance law, the amounts
expended from the pledged amounts account for the benefit of the TA and
the CRR, and the amounts of the remaining PBT amount and the remaining
MMTOA amount distributed during the prior calendar year to the TA and
the CRR and specifying in each case the appropriation or appropriations
which was the source of such amounts.
§ 11. Subdivision 4 of section 1270-c of the public authorities law,
as added by chapter 56 of the laws of 1993, is amended to read as
follows:
4. Any money deposited in the fund shall be held in the fund free and
clear of any claim by any person arising out of or in connection with
article thirteen-A AND ARTICLE TWENTY-EIGHT of the tax law. Without
limiting the generality of the foregoing and without limiting the rights
and duties of the commissioner of taxation and finance under article
thirteen-A of the tax law, no petroleum business, as defined in section
three hundred of the tax law, or any other person, including the state,
shall have any right or claim against the authority, any of its bond-
holders, the TA or the CRR to any moneys in or distributed from the fund
or in respect of a refund, rebate, credit or reimbursement of taxes paid
under article thirteen-A AND ARTICLE TWENTY-EIGHT of the tax law.
§ 12. This act shall take effect April 1, 2026.
PART XX
Section 1. Subdivision 12 of section 1269 of the public authorities
law, as amended by section 1 of part I of chapter 58 of the laws of
2020, is amended to read as follows:
12. The aggregate principal amount of bonds, notes or other obli-
gations issued after the first day of January, nineteen hundred ninety-
three by the authority, the Triborough bridge and tunnel authority and
the New York city transit authority to fund projects contained in capi-
tal program plans approved pursuant to section twelve hundred sixty-
nine-b of this title for the period nineteen hundred ninety-two through
two thousand [twenty-four] TWENTY-NINE shall not exceed [ninety] ONE
HUNDRED FIFTEEN billion [one] FIVE hundred million dollars. Such aggre-
gate principal amount of bonds, notes or other obligations or the
expenditure thereof shall not be subject to any limitation contained in
any other provision of law on the principal amount of bonds, notes or
other obligations or the expenditure thereof applicable to the authori-
ty, the Triborough bridge and tunnel authority or the New York city
transit authority. The aggregate limitation established by this subdivi-
sion shall not include (i) obligations issued to refund, redeem or
S. 3009--C 160 A. 3009--C
otherwise repay, including by purchase or tender, obligations thereto-
fore issued either by the issuer of such refunding obligations or by the
authority, the New York city transit authority or the Triborough bridge
and tunnel authority, (ii) obligations issued to fund any debt service
or other reserve funds for such obligations, (iii) obligations issued or
incurred to fund the costs of issuance, the payment of amounts required
under bond and note facilities, federal or other governmental loans,
security or credit arrangements or other agreements related thereto and
the payment of other financing, original issue premiums and related
costs associated with such obligations, (iv) an amount equal to any
original issue discount from the principal amount of such obligations or
to fund capitalized interest, (v) obligations incurred pursuant to
section twelve hundred seven-m of this article, (vi) obligations
incurred to fund the acquisition of certain buses for the New York city
transit authority as identified in a capital program plan approved
pursuant to chapter fifty-three of the laws of nineteen hundred ninety-
two, (vii) obligations incurred in connection with the leasing, selling
or transferring of equipment, and (viii) bond anticipation notes or
other obligations payable solely from the proceeds of other bonds, notes
or other obligations which would be included in the aggregate principal
amount specified in the first sentence of this subdivision, whether or
not additionally secured by revenues of the authority, or any of its
subsidiary corporations, New York city transit authority, or any of its
subsidiary corporations, or Triborough bridge and tunnel authority.
§ 2. 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 XX of this act shall be
as specifically set forth in the last section of such Parts.