§ 25-y. Definitions. As used in this article the following terms shall
have the following meanings:

(a) "Eligible business" means any person subject to a tax imposed
under a local law enacted pursuant to part two or three of section one,
or section two, of chapter seven hundred seventy-two of the laws of
nineteen hundred sixty-six or a gross receipts tax imposed under a local
law enacted pursuant to subdivision (a) of section twelve hundred one of
the tax law that: (1) has been conducting substantial business
operations at one or more business locations outside an eligible area
for the twenty-four consecutive months immediately preceding the taxable
year during which such eligible business relocates as defined in
subdivision (j) of this section; and (2) on or after May twenty-seventh,
nineteen hundred eighty-seven relocates as defined in subdivision (j) of
this section all or part of such business operations; and (3) either (i)
on or after May twenty-seventh, nineteen hundred eighty-seven first
enters into a contract to purchase or lease the premises to which it
relocates as defined in subdivision (j) of this section, or a parcel on
which will be constructed such premises, or (ii) as of May
twenty-seventh, nineteen hundred eighty-seven owns such parcel or
premises and has not prior to such date made application for benefits
pursuant to a local law enacted in accordance with title two-D of
article four of the real property tax law.

(b) "Person" means and includes any individual, partnership,
association, joint-stock company, corporation, estate or trust, limited
liability company, and any combination of the foregoing.

(c) "Retail activity" means any activity which consists predominantly
of the sale, other than through the mail or by the telephone or by means
of the internet, of tangible personal property to any person, for any
purpose unrelated to the trade or business of such person, or which
consists predominantly of the selling of services to individuals which
generally involve the physical, mental and/or spiritual care of such
individuals, or the physical care of the personal property of any person
unrelated to the trade or business of such person, or which consists
predominantly of the provision of retail banking services.

(d) "Hotel services" means any services which consist predominantly of
the lodging of guests at a building or a portion thereof which is
regularly used and kept open for such services. The term "hotel
services" shall include the lodging of guests at an apartment hotel, a
motel, boarding house or club, whether or not meals are served.

(e) "Eligible premises" means: (1) nonresidential premises which are
wholly contained in real property which is certified as eligible to
receive benefits pursuant to a local law enacted in accordance with
title two-C or title two-D of article four of the real property tax law,
provided that such premises have been improved by construction or
renovation, that expenditures have been made for improvements to such
real property in excess of fifty per centum or, in the case of
industrial property, in excess of twenty-five per centum, of the value
at which such real property was assessed for tax purposes for the tax
year in which such improvements commenced and such expenditures have
been made within thirty-six months or, in the case of expenditures for
such improvements to such real property in excess of fifty million
dollars within seventy-two months from such commencement and, provided
further, that such real property is located in an eligible area;

(2) nonresidential premises which are: (i) wholly contained in or
situated on real property which has been leased from an industrial
development agency established pursuant to article eighteen-A of the
general municipal law, provided that such premises were constructed or
renovated subsequent to the approval of such construction or renovation
by such agency, or (ii) wholly contained in or situated on real property
owned by a city having a population of one million or more, a lease for
which was approved in accordance with the applicable provisions of the
charter of such city, provided that such premises were constructed or
renovated subsequent to such approval, or (iii) wholly contained in or
situated on real property which has been leased from the port authority
of the state of New York and New Jersey or the New York state urban
development corporation, or a subsidiary thereof, provided that such
premises were constructed or renovated subsequent to the execution of
such lease, or (iv) wholly contained in property which would be eligible
to receive benefits pursuant to a local law enacted in accordance with
title two-D of article four of the real property tax law except that
such property is exempt from real property taxation; provided that
expenditures have been made for improvements to such real property in
excess of fifty per centum or, in the case of industrial property, in
excess of twenty-five per centum, of the value at which such real
property was assessed for tax purposes for the tax year in which such
improvements commenced and such expenditures have been made within
thirty-six months or, in the case of expenditures for such improvements
to such real property in excess of fifty million dollars within
seventy-two months from the date of such commencement, and provided
further that such real property is located in an eligible area; or

(3) in the case of a relocation, the date of which, as determined in
subdivision (j) of this section, is on or after July first, two thousand
three, nonresidential premises, located in an eligible area, for which a
minimum expenditure has been made on or after July first, two thousand
three, for improvements in excess of twenty-five dollars per square
foot, provided, however, that if such premises are leased, such lease
shall have a term that does not expire until at least three years after
the later of the date of such relocation and the lease commencement
date.

The determination of whether premises meet the requirements for
eligibility set forth in this subdivision shall be made as of the
effective date of the certification of eligibility issued pursuant to
section twenty-five-z of this article. Notwithstanding the provisions of
paragraphs one and two of this subdivision, if, subsequent to such date,
the property in which such premises are contained ceases to meet the
requirements of paragraph one or two of this subdivision, such premises
shall nonetheless remain eligible premises, provided that the eligible
business continues to occupy such premises; provided however that if,
after such property ceases to meet the requirements of paragraph one or
two, an eligible business first leases or purchases additional premises
contained in such property, such additional premises shall not be
considered eligible premises unless they meet the requirements of
paragraph three of this subdivision.

(f) "Eligible area" means an area of a city having a population of one
million or more, excluding the area lying south of the center line of
96th Street, in the borough of Manhattan in the city of New York.

(g) "Employment share" means for each employee, partner or sole
proprietor of an eligible business, the sum of : (1) the number of
full-time work weeks worked by such employee, partner or sole proprietor
during the eligible business' taxable year divided by the number of
weeks in the taxable year, and (2) the number of part-time work weeks
worked by such employee, partner or sole proprietor during the eligible
business' taxable year divided by an amount equal to twice the number of
weeks in the taxable year. For purposes of this subdivision, "full-time
work week" shall mean a week during which at least thirty-five hours of
gainful work has been performed by such employee, partner or sole
proprietor and "part-time work week" shall mean a week during which at
least fifteen but less than thirty-five hours of gainful work has been
performed by such employee, partner or sole proprietor.

(h) "Aggregate employment shares" means the sum of all employment
shares maintained by an eligible business in a taxable year.

(i) "Eligible aggregate employment shares" means the amount, if any,
by which the number of aggregate employment shares maintained by an
eligible business in an eligible area in the taxable year in which such
eligible business claims a credit pursuant to a local law enacted in
accordance with section twenty-five-z of this article exceeds the number
of aggregate employment shares maintained by an eligible business in an
eligible area in the taxable year immediately preceding the taxable year
during which such eligible business first relocates as defined in
subdivision (j) of this section. Provided, however, that such amount
shall not exceed the lesser of: (1) in the case of particular premises
to which an eligible business relocates before July first, two thousand
three, the highest number of aggregate employment shares maintained by
such eligible business in such premises in the taxable year during which
such eligible business relocates to such premises or in any of the three
immediately succeeding taxable years, exclusive of any employment shares
maintained by such eligible business in such premises in the taxable
year immediately preceding the taxable year during which such eligible
business relocates to such premises; or in the case of particular
premises to which an eligible business relocates on or after July first,
two thousand three, the highest number of aggregate employment shares
maintained by such eligible business in such premises in the taxable
year during which such eligible business relocates to such premises or
in any of the five immediately succeeding taxable years, exclusive of
any employment shares maintained by such eligible business in such
premises in the taxable year immediately preceding the taxable year
during which such eligible business relocates to such premises; or (2)
the number of aggregate employment shares maintained by such eligible
business in such premises in the taxable year in which such eligible
business claims a credit pursuant to a local law enacted in accordance
with section twenty-five-z of this article, exclusive of any employment
shares maintained by such eligible business in such premises in the
taxable year immediately preceding the taxable year during which such
eligible business relocates to such premises; or (3) in the case of an
eligible business that has relocated as determined pursuant to
subdivision (j) of this section before July first, two thousand three,
and has not relocated on or after July first, two thousand three, twice
the number of aggregate employment shares maintained by such eligible
business outside an eligible area in the taxable year immediately
preceding the taxable year during which such eligible business first
relocates or, in the case of an eligible business that has relocated as
determined pursuant to subdivision (j) of this section on or after July
first, two thousand three, the greater of one hundred aggregate
employment shares or twice the number of aggregate employment shares
maintained by such eligible business outside the eligible area in the
taxable year immediately preceding the taxable year during which such
eligible business first relocates. If an eligible business relocates to
more than one particular premises, the amounts described in paragraphs
one and two of this subdivision shall be determined separately with
respect to each such particular premises, and in such case the total
number of eligible aggregate employment shares for such eligible
business shall not exceed the lesser of the amount determined pursuant
to paragraph three of this subdivision or the sum of the lesser of the
amounts determined pursuant to paragraphs one and two of this
subdivision for each particular premises.

(j) "Relocate" means to transfer pre-existing business operations to
premises that are or will become eligible premises in accordance with
subdivision (e) of this section, or to establish new business operations
at such premises, provided that an eligible business shall not be deemed
to have relocated unless at least one employee, partner or sole
proprietor of the eligible business is transferred to such premises from
pre-existing business operations conducted outside the eligible area.
The date of relocation to any particular premises shall be any date
elected by the eligible business on which an employee, partner or sole
proprietor of the eligible business is transferred to the particular
premises from pre-existing business operations conducted outside the
eligible area and begins work at such premises, provided that such date
is subsequent to the date of commencement of improvements to such
premises or the real property in which such premises are located, which
improvements will meet the requirements of subdivision (e) of this
section relating to expenditures for improvements, and provided further
that such date of relocation is prior to the date of the issuance of a
certification of eligibility pursuant to section twenty-five-z of this
article. The year of relocation shall be the taxable year in which such
date of relocation falls. The election provided for in this subdivision
shall be made prior to the issuance of such certification of eligibility
and shall be irrevocable. An eligible business may relocate only once to
any particular premises.

(k) "Industrial construction work" means the construction of a new
building or structure or the modernization, rehabilitation, expansion or
improvement of an existing building or structure for use as industrial
property.

(l) "Industrial property" means nonresidential real property
containing or which will contain after the completion of industrial
construction work a building or structure wherein at least seventy-five
percent of the total net square footage is used or immediately available
and held out for use for manufacturing activities involving the assembly
of goods or the fabrication or processing of raw materials.

(m) "Tax year" and "taxable year" mean, for purposes of this article,
insofar as it applies to a gross receipts tax imposed under a local law
enacted pursuant to subdivision (a) of section twelve hundred one of the
tax law, calendar year.

(n) "Revitalization area" means any area of a city having a population
of one million or more, provided that in the city of New York a
revitalization area shall mean any district that is zoned C4, C5, C6,
M1, M2 or M3 in accordance with the zoning resolution of such city in
any area such city except the area lying south of the center line of
96th Street in the borough of Manhattan.

(o) "Total attributed eligible aggregate employment shares" means, for
any relocation, the sum of the number of eligible aggregate employment
shares apportioned to such relocation pursuant to paragraph one of this
subdivision, less any excess shares determined with respect to such
relocation pursuant to paragraph two of this subdivision, plus any
excess shares attributed to such relocation pursuant to paragraph three
of this subdivision. Except as provided in paragraph four of this
subdivision, any eligible aggregate employment shares that are
attributed to a relocation to particular premises pursuant to paragraph
three of this subdivision shall be treated as eligible aggregate
employment shares that are maintained with respect to such premises and
shall be subject to all provisions of this article and provisions for
the credit against a tax imposed under a local law enacted pursuant to
part two or three of section one, or section two, of chapter seven
hundred seventy-two of the laws of nineteen hundred sixty-six or a gross
receipts tax imposed under a local law enacted pursuant to subdivision
(a) of section twelve hundred one of the tax law as such provisions
pertain to such relocation.

(1) In the case of a business that has relocated once, all eligible
aggregate employment shares are apportioned to the premises to which the
single relocation took place. In the case of a business that has
relocated more than once, eligible aggregate shares are apportioned as
follows:

(i) If in a taxable year, the sum for all eligible premises of the
lesser of the amounts determined pursuant to paragraphs one and two of
subdivision (i) of this section for each particular eligible premises is
equal to the total number of eligible aggregate employment shares
determined pursuant to such subdivision (i), the number of shares
apportioned to each particular eligible premises is the lesser of such
amounts for each particular eligible premises;

(ii) If in a taxable year, the sum for all eligible premises of the
lesser of the amounts determined pursuant to paragraphs one and two of
subdivision (i) of this section for each particular eligible premises is
greater than the total number of eligible aggregate employment shares
determined pursuant to such subdivision (i), the number of shares
apportioned to a particular eligible premises shall be such total number
of eligible aggregate employment shares multiplied by a fraction the
numerator of which is the lesser of the amounts determined pursuant to
paragraphs one and two of subdivision (i) of this section for such
premises and the denominator of which is such sum.

(2) "Excess shares" shall mean eligible aggregate employment shares
that are apportioned pursuant to paragraph one of this subdivision to a
relocation in excess of the limitation amount defined in subparagraphs
(i) and (ii) of this paragraph for such relocation.

(i) Subject to the provisions of subparagraph (ii) of this paragraph,
for any taxable year in which an eligible business is claiming the
credit authorized pursuant to section twenty-five-z of this article, the
"limitation amount" shall mean:

(A) for one or more relocations in an eligible business' latest year
of relocation as determined pursuant to subdivision (j) of this section,
the amount, if any, by which the number of aggregate employment shares
maintained by the eligible business in the eligible area in the taxable
year in which it is claiming the credit authorized by this article
exceeds the number of aggregate employment shares maintained by it in
the eligible area in the taxable year immediately preceding such year of
relocation; or

(B) for one or more relocations in a specified year of relocation that
is not the latest such year of relocation by an eligible business, the
amount, if any, by which the number of aggregate employment shares
maintained by the eligible business in the eligible area in the taxable
year in which it is claiming the credit authorized by this article
exceeds the sum of (I) the number of total attributed eligible aggregate
employment shares that are attributed in the taxable year in which the
credit is claimed to relocations that took place in years of relocation
later than the specified year of relocation and (II) the number of
aggregate employment shares maintained by it in the eligible area in the
taxable year immediately preceding such specified year of relocation.

(ii) In the case of an eligible business that has relocated more than
once in the same taxable year, the limitation amount determined in
accordance with subparagraph (i) of this paragraph shall be applied to
such relocations in the same proportion as the eligible aggregate
employment shares apportioned to such relocations pursuant to paragraph
one of this subdivision.

(3)(i) In any taxable year in which there are excess shares, such
excess shares, or a portion thereof, from a relocation or relocations
that took place in a specified year of relocation shall be attributed in
reverse chronological order to any relocations that took place in
earlier years of relocation.

(ii) Notwithstanding subparagraph (i) of this paragraph:

(A) no excess shares may be attributed to a relocation unless the
number of eligible aggregate employment shares apportioned pursuant to
paragraph one of this subdivision to such relocation for the taxable
year in which the credit is claimed is less than the highest number of
total attributed eligible aggregate employment shares pertaining to such
relocation in any taxable year prior to the taxable year in which the
credit is claimed;

(B) the sum of the number of shares attributed to such relocation
pursuant to subparagraph (i) of this paragraph and the eligible
aggregate employment shares apportioned to any such relocation pursuant
to paragraph one of this subdivision may not exceed such highest number
of total attributed eligible aggregate employment shares; and

(C) such sum may not exceed the limitation amount for such relocation
defined in paragraph two of this subdivision.

(4) Notwithstanding the provisions of other paragraphs of this
subdivision, any excess shares that are apportioned pursuant to
paragraph one of this subdivision to a relocation to particular eligible
premises that are not located in a revitalization area as defined in
subdivision (n) of this section, but are attributed pursuant to
paragraph three of this subdivision to particular eligible premises that
are located in such a revitalization area, shall be treated as if such
premises to which they are attributed were not in such a revitalization
area.

(p) "Particular premises" means all premises occupied by an eligible
business within a single building. "Particular eligible premises" means
the portion of such particular premises that meets the requirements for
eligible premises specified in subdivision (e) of this section.

(q) "Designated additional or replacement premises" means
nonresidential premises in the eligible area that (i) are owned or
leased by an eligible business that has been certified pursuant to
subdivision (b) of section twenty-five-z of this article to receive the
credit provided for in this article, and (ii) with regard to which such
eligible business obtains the certification provided for in subdivision
(e) of section twenty-five-z of this article.