2005-06 Budget - Article 7 Bill s996
STATE OF NEW YORK
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S. 996 A. 1926
SENATE - ASSEMBLY
January 21, 2005
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the public authorities law and the economic development
law, in relation to reauthorize the New York power authority to make
contributions to the general fund and authorize the continuation of
power for jobs and electricity savings reimbursement program; and to
amend chapter 316 of the laws of 1997 amending the public authorities
law and other laws relating to the provision of low cost power to
foster statewide economic development, in relation to extending such
provisions (Part A); to amend the New York state urban development
corporation act, in relation to creating operation SPUR and to author-
ize the New York state urban development corporation, the dormitory
authority of the state of New York, the environmental facilities
corporation, the New York state housing finance agency and the thruway
authority to issue bonds or notes in support of priority high technol-
ogy and economic development projects (Part B); to amend the tax law,
in relation to creating wage tax credits for certain businesses that
create a minimum number of jobs in an area which is part of the stra-
tegic partnership for upstate resurgence initiative (Part C); to amend
the tax law, in relation to the calculation of the business allocation
percentage under article 9-A of such law for certain manufacturers
which conduct business in an area which is part of the strategic part-
nership for upstate resurgence initiative and in relation to the
alternative minimum tax under article 9-A thereof (Part D); to amend
the tax law, in relation to authorizing a SPUR center of excellence
affiliation credit under article 9-A of such law (Part E); and to
amend the general municipal law and the tax law, in relation to the
purpose, administration and benefits of the empire zones program; and
to repeal section 962 of the general municipal law relating to empire
zone development plan (Part F)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12177-01-5
S. 996 2 A. 1926
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 2005-2006
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through F. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 such Part. Any provision in any section contained within a Part, includ-
7 ing the effective date of the Part, which makes reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Subparagraph 2 of paragraph g of the ninth undesignated
14 paragraph of section 1005 of the public authorities law, as amended by
15 section 2 of part T of chapter 59 of the laws of 2004, is amended to
16 read as follows:
17 2. The authority, as deemed feasible and advisable by the trustees, is
18 authorized to make [an] payments to recipients of the power for jobs
19 electricity savings reimbursements and additional annual voluntary
20 [contribution] contributions into the state treasury to the credit of
21 the general fund. The authority shall make such [contribution] contrib-
22 utions to the state treasury no later than ninety days after the end of
23 the calendar year in which a credit under subdivision nine of section
24 one hundred eighty-six-a of the tax law is available: (a) for the addi-
25 tional three hundred megawatts of power under the fourth phase of the
26 program provided under chapter sixty-three of the laws of two thousand
27 and under the fifth phase for the additional one hundred eighty-three
28 megawatts provided under chapter two hundred twenty-six of the laws of
29 two thousand two; and (b) for any extension of any contract for allo-
30 cations under the fourth phase of the program and under the fifth phase
31 of the program[, and]. Payments for any electricity savings reimburse-
32 ment under section one hundred eighty-nine of the economic development
33 law [is available] shall be made pursuant to such section. Such annual
34 [contribution] contributions shall be equal to fifty percent of the
35 total amount of such credits available each year to all local distribu-
36 tors of electricity. In addition, such authorization for contribution in
37 state fiscal year two thousand two--two thousand three shall be equal to
38 the total amount of credit available in two thousand one and two thou-
39 sand two; and such authorization for contribution in state fiscal year
40 two thousand three--two thousand four shall be equal to the total amount
41 of credit available in two thousand three; under subdivision nine of
42 section one hundred eighty-six-a of the tax law under the fourth phase
43 of the program for the additional three hundred megawatts provided under
44 chapter sixty-three of the laws of two thousand and under the fifth
45 phase for the additional one hundred eighty-three megawatts provided
46 under chapter two hundred twenty-six of the laws of two thousand two. In
47 state fiscal year two thousand four--two thousand five, such authorized
48 annual contribution shall be equal to one hundred percent of the total
49 amount of such credits available each year to all local distributors of
50 electricity. Such authorization for contribution in state fiscal years
51 two thousand four and two thousand five shall be equal to the total
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1 amount of credit available in two thousand four and two thousand five;
2 under subdivision nine of section one hundred eighty-six-a of the tax
3 law under the fourth phase of the program for the additional three
4 hundred megawatts provided under chapter sixty-three of the laws of two
5 thousand and under the fifth phase for the additional one hundred eight-
6 y-three megawatts provided under chapter two hundred twenty-six of the
7 laws of two thousand two. In addition, such authorization for contrib-
8 ution for any extension of any contract for allocations under the fourth
9 phase of the program and under the fifth phase of the program in each
10 state fiscal year shall be equal to the total amount of credit or
11 reimbursement available in state fiscal year two thousand four--two
12 thousand five [and], state fiscal year two thousand five--two thousand
13 six and two thousand six--two thousand seven. Additionally, notwith-
14 standing any other section of law, the authority is authorized to make a
15 contribution in an amount related to total amounts of credit received
16 under phases one, two and three of the program. In no case shall the
17 contribution for state fiscal year two thousand five--two thousand six
18 be less than seventy-five million dollars. The department of public
19 service shall estimate the payment due by the end of the calendar year
20 in which the credit is available. In no case shall the amount of the
21 total annual contributions for the years during which delivery and sale
22 of [phase four and phase five power] power associated with all power for
23 jobs phases and any extensions thereof takes place exceed the aggregate
24 total of [two hundred seventy-five] three hundred ninety-four million
25 dollars. [Such aggregate total shall be in addition to any contribution
26 made pursuant to subparagraph one of this paragraph.]
27 § 2. Paragraph 5 of subdivision (a) of section 189 of the economic
28 development law, as added by section 3 of part T of chapter 59 of the
29 laws of 2004, is amended to read as follows:
30 5. "Power for jobs electricity savings reimbursements" shall mean
31 payments made by the power authority of the state of New York [or the
32 New York state energy research and development authority if the attorney
33 general determines the power authority of the state of New York cannot
34 legally make such payments] as recommended by the board to recipients of
35 allocations of power under phases four and five of the power for jobs
36 program for a period of time until November thirtieth, two thousand
37 four, subsequent to the expiration of their phase four or five power for
38 jobs contract provided however that [recipients whose contracts expire
39 after November thirtieth, two thousand four] any power for jobs recipi-
40 ent may choose to receive electricity savings reimbursement as a substi-
41 tute for a contract extension for the period from the date the recipi-
42 ent's contract expires through December thirty-first, two thousand
43 [five] six. The "basic reimbursement" is an amount that when credited
44 against the recipient's actual "unit cost of electricity" during a quar-
45 ter (meaning the cost for commodity and delivery per kilowatt-hour for
46 the quantity of electricity purchased and delivered under the power for
47 jobs program during a similar period in the final year of the recipi-
48 ent's contract), results in an effective unit cost of electricity during
49 the quarter equal to the average unit cost of electricity such recipient
50 paid during the final year of the contract for power allocated under
51 phase four or five of the power for jobs program.
52 § 3. Subdivision (l) of section 189 of the economic development law,
53 as added by section 4 of part T of chapter 59 of the laws of 2004, is
54 amended to read as follows:
55 (l) The board shall solicit and review applications for the power for
56 jobs electricity savings reimbursements and contract extensions from
S. 996 4 A. 1926
1 recipients of power for jobs allocations under phases four and five of
2 the program for the award of such reimbursements and/or contract exten-
3 sions. The board may prescribe a simplified form and content for an
4 application for such reimbursements or extensions. An applicant shall be
5 eligible for such reimbursements and/or extensions only if it is in
6 compliance with and agrees to continue to meet the job retention and
7 creation commitments set forth in its prior power for jobs contract. The
8 board shall review such applications and make recommendations for the
9 award: 1. of such reimbursements through the power authority of the
10 state of New York for a period of time up to November thirtieth, two
11 thousand four, and 2. of such contract extensions or reimbursements as
12 applied for by the recipient for a period of time beginning December
13 first, two thousand four and ending December thirty-first, two thousand
14 [five] six. At no time shall a recipient receive both a reimbursement
15 and extension after December first, two thousand four. The power author-
16 ity of the state of New York shall receive notification from the board
17 regarding the award of power for jobs electricity savings reimbursements
18 and/or contract extensions.
19 § 4. Subdivision (f) of section 189 of the economic development law,
20 as amended by section 5 of part T of chapter 59 of the laws of 2004, is
21 amended to read as follows:
22 (f) Eligibility. The board shall recommend applications for allo-
23 cations of power under the power for jobs program to or for the use of
24 businesses which normally utilize a minimum peak electric demand in
25 excess of four hundred kilowatts; provided, however, that up to one
26 hundred megawatts of power available for allocation during the initial
27 three phases of the power for jobs program may be recommended for allo-
28 cations to not-for-profit corporations and to small businesses; and,
29 provided, further that up to seventy-five megawatts of power available
30 for allocation during the fourth phase of the program may be recommended
31 for allocations to not-for-profit corporations and to small businesses.
32 The board may require small businesses that normally utilize a minimum
33 peak electric demand of less than one hundred kilowatts to aggregate
34 their electric demand in amounts of no less than one hundred kilowatts,
35 for the purposes of applying to the board for an allocation of power.
36 The board shall recommend allocations of the additional three hundred
37 megawatts available during the fourth phase of the program to any such
38 eligible applicant, including any recipient of power allocated during
39 the first phase of the program. The board shall recommend allocations of
40 the additional one hundred eighty-three megawatts available during the
41 fifth phase of the program to any eligible applicant, including any
42 recipient of power allocated during the second and third phases of the
43 program; provided, however, that the term of contracts for allocations
44 under the fifth phase of the program shall in no case extend beyond
45 December thirty-first, two thousand [five] six. Notwithstanding any
46 provision of law to the contrary, and, in particular, the provisions of
47 this chapter concerning the terms of contracts for allocations under the
48 power for jobs program, the terms of any contract with a recipient of
49 power allocated under phase two of the power for jobs program that has
50 expired or will expire on or before the thirty-first day of August, two
51 thousand two, may be extended by the power authority of the state of New
52 York for an additional period of three months effective on the date of
53 such expiration, pending the filing and approval of an application by
54 such recipient for an allocation under the fifth phase of the program.
55 The term of any new contract with such recipient under the fifth phase
56 of the program shall be deemed to include any three month contract
S. 996 5 A. 1926
1 extension made pursuant to this subdivision and the termination date of
2 any such new contract under phase five shall be no later than if such
3 new contract had commenced upon the expiration of the recipient's
4 original phase two contract. The terms of any contract with a recipient
5 of power allocated under phase four and/or phase five of the power for
6 jobs program that has expired or will expire on or before the thirty-
7 first day of December, two thousand five, may be extended by the power
8 authority of the state of New York from a date beginning no earlier than
9 the first day of December, two thousand four and extending through
10 December thirty-first, two thousand [five] six.
11 § 5. Section 9 of chapter 316 of the laws of 1997 amending the public
12 authorities law and other laws relating to the provision of low cost
13 power to foster statewide economic development, as amended by section 6
14 of part KK of chapter 63 of the laws of 2000, is amended to read as
15 follows:
16 § 9. This act shall take effect immediately and shall expire and be
17 deemed repealed December 31, [2005] 2006.
18 § 6. This act shall take effect immediately and shall be deemed to
19 have been in full force and effect on and after April 1, 2005; provided,
20 however, that the amendments made to section 1005 of the public authori-
21 ties law by section one of this act and the amendments made to section
22 189 of the economic development law by sections two, three and four of
23 this act shall not affect the expiration and repeal of such paragraph of
24 section 1005 of the public authorities law and such section of the
25 economic development law and shall expire and be deemed repealed there-
26 with.
27 PART B
28 Section 1. (a) Subject to the provisions of chapter 59 of the laws of
29 2000, but notwithstanding any provisions of law to the contrary, one or
30 more of the authorized issuers, as defined by subdivision 1 of section
31 68-a of the state finance law are hereby authorized to issue bonds or
32 notes in one or more series in an aggregate principal amount not to
33 exceed $90,000,000 excluding bonds issued to finance one or more debt
34 service reserve funds, to pay costs of issuance of such bonds, and bonds
35 or notes issued to refund or otherwise repay such bonds or notes previ-
36 ously issued, for the purpose of reimbursing the state capital projects
37 fund disbursements made pursuant to appropriations for Operation Strate-
38 gic Partnership for Upstate Resurgence, and the New York state urban
39 development corporation is authorized to utilize the proceeds of such
40 bonds or notes to finance grants, loans or combinations thereof pursuant
41 to Operation Strategic Partnership for Upstate Resurgence, as appropri-
42 ated by a chapter of the laws of 2005. Eligible project costs may
43 include, but not be limited to the cost of design, financing, site
44 investigations, site acquisition and preparation, demolition,
45 construction, rehabilitation, acquisition of machinery and equipment,
46 parking facilities, and infrastructure. Such bonds and notes of such
47 authorized issuers shall not be a debt of the state, and the state shall
48 not be liable thereon, nor shall they be payable out of any funds other
49 than those appropriated by the state to such authorized issuers for debt
50 service and related expenses pursuant to any service contract executed
51 pursuant to subdivision (b) of this section and such bonds and notes
52 shall contain on the face thereof a statement to such effect. Except for
53 purposes of complying with the internal revenue code, any interest
S. 996 6 A. 1926
1 income earned on bond proceeds shall only be used to pay debt service on
2 such bonds.
3 (b) Notwithstanding any provisions of law to the contrary, in order to
4 assist such authorized issuers in undertaking the administration and
5 financing of the projects authorized pursuant to subdivision (a) of this
6 section, the director of the budget is hereby authorized to enter into
7 one or more service contracts with such authorized issuers, none of
8 which shall exceed more than 20 years in duration, upon such terms and
9 conditions as the director of the budget and such authorized issuers
10 shall agree, so as to annually provide to such authorized issuers, in
11 the aggregate, a sum not to exceed the annual debt service payments and
12 related expenses required for the bonds and notes issued pursuant to
13 this section. Any service contract entered into pursuant to this subdi-
14 vision shall provide that the obligation of the state to pay the amount
15 therein provided shall not constitute a debt of the state within the
16 meaning of any constitutional or statutory provision and shall be deemed
17 executory only to the extent of monies available and that no liability
18 shall be incurred by the state beyond the monies available for such
19 purposes, subject to annual appropriation by the legislature. Any such
20 contract or any payments made or to be made thereunder may be assigned
21 or pledged by such authorized issuers as security for its bonds and
22 notes, as authorized by this section.
23 § 2. Section 1 of chapter 174 of the laws of 1968, constituting the
24 New York state urban development corporation act, is amended by adding a
25 new section 16-n to read as follows:
26 § 16-n. Operation SPUR. (1) Creation. The Operation Strategic Partner-
27 ship for Upstate Resurgence program, also known as "Operation SPUR", is
28 hereby created for the purpose of providing financial assistance for
29 economic development projects in areas outside the metropolitan trans-
30 portation authority commuter transportation district as defined in
31 section 1262 of the public authorities law, and as defined by rules and
32 regulations promulgated by the urban development corporation that shall
33 take into consideration employment and population growth and impact on
34 agribusiness.
35 (2) Program rules and regulations. Following consultation with appro-
36 priate state and local agencies and other organizations, the urban
37 development corporation shall promulgate rules and regulations for the
38 identification of eligible areas and for the selection of projects to
39 receive assistance from Operation SPUR to include, but not limited to,
40 the provisions of subdivisions 1 and 3 of this section.
41 (3) Project selection. Applications may include, but not be limited
42 to, the following purposes:
43 (a) The development of industrial facilities, business parks and incu-
44 bators. The purpose of projects within this category is generally to
45 increase the availability of "shovel ready" and ready to occupy
46 locations, including the redevelopment of brownfield sites, for business
47 expansion or retention within New York state, thereby promoting job
48 creation and retention. Eligible projects include infrastructure devel-
49 opment (such as water, sewer, highway and rail access, electric power,
50 gas and telecommunications), site acquisition, site investigation, site
51 clearance and building demolition and site preparation related to such
52 projects as industrial and office parks, high technology and biotechnol-
53 ogy research, development and related commercialization facilities;
54 business incubators, manufacturing, warehouse and distribution facili-
55 ties, office facilities and parks. Projects intended primarily for the
S. 996 7 A. 1926
1 development of retail or personal service facilities shall be ineligi-
2 ble.
3 (b) Downtown and rural commercial center redevelopment projects. Some
4 New York downtowns and rural commercial centers have declined as a
5 result of the movement of retail and commercial activity to peripheral
6 sites on transportation nodes near suburban population concentrations.
7 As a result, the availability of retail businesses and service estab-
8 lishments to central city and rural residents has decreased. The purpose
9 of projects within this category is generally to attract and support
10 pedestrian, commercial and residential density that will strengthen
11 business activity in downtown and rural commercial centers. Eligible
12 applicants must demonstrate the existence of a credible redevelopment
13 strategy, the capacity to implement it, and the participation of public
14 and private leadership in the redevelopment effort. Projects may fund
15 construction, rehabilitation or improvement or retail, commercial or
16 mixed use buildings, site acquisition, investigation, clearance and
17 redevelopment, and public infrastructure improvements, such as water,
18 lighting, pavement, sidewalks, parks, parking, etc.
19 (c) Tourism destinations. The purpose of projects in this category is
20 generally to increase business activity at tourism destinations and
21 visitors from outside the region, thereby creating and retaining jobs.
22 Typical tourism destination projects may include regionally significant
23 recreational facilities, historic or cultural facilities, convention
24 centers, entertainment facilities, and interpretive or discovery
25 centers.
26 (d) Generally, total project cost must be a minimum of $500,000,
27 unless the chairman of the urban development corporation determines that
28 the circumstances and merit of such project warrants a waiver of such
29 minimum threshold, and that such waiver has been approved by the direc-
30 tor of the budget, with at least two-thirds of the project cost contrib-
31 uted by private sector, local, federal or state funding other than Oper-
32 ation SPUR. Projects which offer exceptional opportunities for long term
33 private sector job creation and retention may be eligible for more than
34 one third of eligible project costs from Operation SPUR if they can
35 demonstrate that other sources of funding are unavailable.
36 Applications may be submitted to the corporation from time to time
37 from municipalities, nonprofit organizations, businesses, special
38 districts, institutions of higher education, or other organizations for
39 consideration. The corporation may provide grants, loans or combinations
40 thereof, provided that (i) the projects be evaluated on the basis of the
41 amount of economic impact on New York state associated with the project,
42 feasibility of business plans and long term sustainability, as deter-
43 mined by the urban development corporation, except in the case of down-
44 town and rural redevelopment projects which will be evaluated by the
45 corporation on the basis of the significance of their likely contrib-
46 ution to the successful redevelopment of the downtown or rural area; and
47 (ii) the projects comply with the rules and regulations promulgated by
48 the urban development corporation, as required by subdivision 2 of this
49 section; and (iii) assistance provided through the fund may not be used
50 for residential development (other than residential portions of mixed
51 use development).
52 § 3. This act shall take effect immediately and shall be deemed to
53 have been in full force and effect on and after April 1, 2005.
54 PART C
S. 996 8 A. 1926
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 19-a to read as follows:
3 19-a. "Spur area wage tax credit". (a) A taxpayer that is a "qualified
4 spur business" as described below that creates at least fifty new jobs
5 in a "spur area", shall be allowed a credit, to be computed as herein-
6 after provided, against the tax imposed by this article. The amount of
7 such credit shall be as prescribed by paragraph (d) of this subdivision.
8 (b) For the purposes of this subdivision, the following terms shall
9 have the following meanings:
10 (1) "Spur area" means an area which is part of the strategic partner-
11 ship for upstate resurgence initiative under section sixteen-n of the
12 New York state urban development corporation act, as added by a chapter
13 of the laws of two thousand five.
14 (2) "Qualified spur employee" means a person, other than a general
15 executive officer, first employed in a "spur area" by a taxpayer that is
16 a "qualified spur business" on or after January first, two thousand
17 five. Such employee must be a person who was neither previously employed
18 by the taxpayer in this state nor employed by a related person within
19 the immediately preceding sixty months in this state.
20 (3) "Spur area wages" means wages paid by the taxpayer for full-time
21 employment to a "qualified spur employee", during the taxable year in a
22 "spur area", where such employment is in a job created in the "spur
23 area" during the period of its designation as a "spur area".
24 (4) "Related person" means a person defined as such in subparagraph
25 (c) of paragraph three of subsection (b) of section four hundred sixty-
26 five of the internal revenue code.
27 (5) "Qualified spur business" means a taxpayer described in clause
28 (A), (B), (C), (D) or (E) of this subparagraph. A "qualified spur busi-
29 ness" shall include:
30 (A) A taxpayer which is a manufacturer. For purposes of this subpara-
31 graph, a manufacturer is a taxpayer which during the taxable year is
32 principally engaged in the production of goods by manufacturing, proc-
33 essing, assembling, refining, mining, extracting, farming, agriculture,
34 horticulture, floriculture, viticulture or commercial fishing. A taxpay-
35 er shall be "principally engaged" in activities described above if,
36 during the taxable year, more than fifty percent of the gross receipts
37 of the taxpayer are derived from receipts from the sale of goods
38 produced by such activities;
39 (B) A taxpayer eligible to compute its business allocation percentage
40 pursuant to subparagraph seven of paragraph (a) of subdivision three of
41 this section;
42 (C) A taxpayer eligible to compute its business allocation percentage
43 pursuant to subparagraph nine of paragraph (a) of subdivision three of
44 this section;
45 (D) A taxpayer eligible to compute its business allocation percentage
46 pursuant to subparagraph eight of paragraph (a) of subdivision three of
47 this section;
48 (E) A taxpayer which is eligible to make an election pursuant to
49 subdivision ten of section one hundred eighty-three of this chapter.
50 (6) "Average number of individuals, excluding general executive offi-
51 cers, employed full-time" shall be computed by ascertaining the number
52 of such individuals employed by the taxpayer on the thirty-first day of
53 March, the thirtieth day of June, the thirtieth day of September and the
54 thirty-first day of December during each taxable year or other applica-
55 ble period, by adding together the number of such individuals ascer-
56 tained on each of such dates and dividing the sums obtained by the
S. 996 9 A. 1926
1 number of such dates occurring within such taxable year or other appli-
2 cable period.
3 (7) "Targeted employee" means a New York resident who receives "spur
4 area wages" and who is (A) an eligible individual under the provisions
5 of the targeted jobs tax credit (section fifty-one of the internal
6 revenue code), (B) eligible for benefits under the provisions of the
7 workforce investment act as a dislocated worker or low income individual
8 (P.L. 105-220, as amended), (C) a recipient of public assistance bene-
9 fits or (D) an individual whose income is below the most recently estab-
10 lished poverty rate promulgated by the United States department of
11 commerce, or a member of a family whose family income is below the most
12 recently established poverty rate promulgated by the appropriate federal
13 agency. An individual who satisfies the criteria set forth in clause
14 (A), (B) or (D) of this subparagraph at the time of initial employment
15 in the job with respect to which the credit is claimed, or who satisfies
16 the criterion set forth in clause (C) of this subparagraph at such time
17 or at any time within the previous two years, shall be a "targeted
18 employee" so long as such individual continues to receive "spur area
19 wages".
20 (c)(1) The credit provided for herein shall be allowed only where the
21 average number of individuals, excluding general executive officers,
22 employed full-time by the taxpayer in (A) the state and (B) the "spur
23 area" during the taxable year exceeds by at least fifty the average
24 number of such individuals employed full-time by the taxpayer in (A) the
25 state and (B) such "spur area", respectively, during the year immediate-
26 ly preceding the first taxable year in which the credit is claimed with
27 respect to such "spur area". Where the taxpayer provided full-time
28 employment within (A) the state or (B) such "spur area" during only a
29 portion of such immediately preceding year, then for purposes of this
30 paragraph the term "year" shall be deemed to refer instead to such
31 portion, if any.
32 (2) The credit shall be allowed only with respect to the first taxable
33 year during which payments of "spur area wages" are made to at least
34 fifty "qualified spur employees" and the conditions set forth in this
35 paragraph are satisfied, and with respect to each of the four taxable
36 years next following (but only, with respect to each of such years, if
37 such conditions are satisfied), in accordance with paragraph (d) of this
38 subdivision. Subsequent employment by the taxpayer of "qualified spur
39 employees" at the same or a different location in the same "spur area"
40 or at a location in a different "spur area", shall not extend the five
41 taxable year time limitation on the allowance of the credit set forth in
42 the preceding sentence. However, during such five taxable year period
43 during which the taxpayer is eligible to claim the "spur area wage tax
44 credit", "qualified spur employees" employed by the taxpayer at the same
45 or a different location in the same "spur area" or in a different "spur
46 area" (where at least fifty "qualified spur employees" are employed),
47 may be a part of the calculation described in paragraph (d) of this
48 subdivision in determining the amount of the credit.
49 (d) The amount of the credit shall equal the sum of (1) the product of
50 three thousand dollars and the average number of individuals (excluding
51 general executive officers) employed full-time by the taxpayer, computed
52 pursuant to the provisions of subparagraph six of paragraph (b) of this
53 subdivision, who:
54 (A) received "spur area wages" for more than half of the taxable year,
55 (B) received, with respect to more than half of the period of employ-
56 ment by the taxpayer during the taxable year, an hourly wage which was
S. 996 10 A. 1926
1 at least one hundred thirty-five percent of the minimum wage specified
2 in section six hundred fifty-two of the labor law, and
3 (C) are "targeted employees"; and
4 (2) the product of fifteen hundred dollars and the average number of
5 individuals (excluding general executive officers and individuals
6 described in subparagraph one of this paragraph) employed full-time by
7 the taxpayer, computed pursuant to the provisions of subparagraph six of
8 paragraph (b) of this subdivision, who received "spur area wages" for
9 more than half of the taxable year; and
10 (3) the product of three thousand five hundred dollars and the average
11 number of individuals who are described in subparagraph one of this
12 paragraph (excluding general executive officers) employed full-time by
13 the taxpayer in an area designated as an empire zone pursuant to article
14 eighteen-B of the general municipal law; and
15 (4) the product of two thousand dollars and the average number of
16 individuals who are described in subparagraph two of this paragraph
17 (excluding general executive officers) employed full-time by the taxpay-
18 er in an area designated as an empire zone pursuant to article eigh-
19 teen-B of the general municipal law.
20 Individuals included in the calculation of the amounts under subpara-
21 graphs three and four of this paragraph shall not be included in the
22 calculation of the amounts under subparagraphs one and two of this para-
23 graph.
24 Provided, further, however, that the credit provided for herein with
25 respect to the taxable year, and carryovers of such credit to the taxa-
26 ble year, deducted from the tax otherwise due, may not, in the aggre-
27 gate, exceed fifty percent of the tax imposed under section two hundred
28 nine of this article computed without regard to any credit provided for
29 by this article.
30 (e) The credit and carryovers of such credit allowed under this subdi-
31 vision for any taxable year shall not, in the aggregate, reduce the tax
32 due for such year to less than the higher of the amounts prescribed in
33 paragraphs (c) and (d) of subdivision one of this section. However, if
34 the amount of credit or carryovers of such credit, or both, allowed
35 under this subdivision for any taxable year reduces the tax to such
36 amount, or if any part of the credit or carryovers of such credit may
37 not be deducted from the tax otherwise due by reason of the closing
38 paragraph of paragraph (d) of this subdivision, any amount of credit or
39 carryovers of such credit thus not deductible in such taxable year may
40 be carried over to the following year or years and may be deducted from
41 the tax for such year or years. In lieu of such carryover, any such
42 taxpayer which qualifies as a new business under paragraph (j) of subdi-
43 vision twelve of this section may elect, on its report for its taxable
44 year with respect to which such credit is allowed, to treat fifty
45 percent of the amount of such carryover as an overpayment of tax to be
46 credited or refunded in accordance with the provisions of section one
47 thousand eighty-six of this chapter. Provided, however, the provisions
48 of subsection (c) of section one thousand eighty-eight of this chapter
49 notwithstanding, no interest shall be paid thereon.
50 (f) If the taxpayer pays "spur area wages" to an employee in an area
51 designated as an empire zone pursuant to article eighteen-B of the
52 general municipal law, on or after January first, two thousand five, and
53 (1) the taxpayer or a "related person" has not claimed the empire zone
54 wage tax credit provided for in subdivision nineteen of this section
55 with respect to such employees, and (2) the taxpayer meets the eligibil-
56 ity requirements for both the credit provided for under this subdivision
S. 996 11 A. 1926
1 and subdivision nineteen of this section, such taxpayer may claim only
2 one such credit with respect to such employees. The taxpayer shall be
3 required, in the first taxable year such taxpayer is allowed to claim a
4 credit provided for under this subdivision, to elect, with respect to
5 such employees, whether to claim the credit provided for under this
6 subdivision or the credit provided for under subdivision nineteen of
7 this section. Such election shall be made with the filing of a return or
8 report required under this chapter, whichever is applicable, for such
9 taxable year. Such election shall apply to and be binding in each subse-
10 quent taxable year applicable to the credit provided for under either
11 this subdivision or subdivision nineteen of this section.
12 § 2. Section 606 of the tax law is amended by adding a new subsection
13 (k-1) to read as follows:
14 (k-1) "Spur area wage tax credit". (1) A taxpayer that is a "qualified
15 spur business" as described below that creates at least fifty new jobs
16 in a "spur area", shall be allowed a credit, to be computed as herein-
17 after provided, against the tax imposed by this article. The amount of
18 such credit shall be as prescribed by paragraph four of this subsection.
19 (2) For the purposes of this subsection, the following terms shall
20 have the following meanings:
21 (A) "Spur area" means an area which is part of the strategic partner-
22 ship for upstate resurgence initiative under section sixteen-n of the
23 New York state urban development corporation act, as added by a chapter
24 of the laws of two thousand five.
25 (B) "Qualified spur employee" means a person, other than a general
26 executive officer, first employed in a "spur area" by a taxpayer that is
27 a "qualified spur business" on or after January first, two thousand
28 five. Such employee must be a person who was neither previously employed
29 by the taxpayer in this state nor employed by a related person within
30 the immediately preceding sixty months in this state.
31 (C) "Spur area wages" means wages paid by the taxpayer for full-time
32 employment to a "qualified spur employee", during the taxable year in a
33 "spur area" where such employment is in a job created in the "spur area"
34 during the period of its designation as a "spur area".
35 (D) "Related person" means a person defined as such in subparagraph
36 (c) of paragraph three of subsection (b) of section four hundred sixty-
37 five of the internal revenue code.
38 (E) "Qualified spur business" means a taxpayer described in clause
39 (i), (ii), (iii), (iv) or (v) of this subparagraph. A "qualified spur
40 business" shall include:
41 (i) A taxpayer which is a manufacturer. For purposes of this subpara-
42 graph, a manufacturer is a taxpayer who or which during the taxable year
43 is principally engaged in the production of goods by manufacturing,
44 processing, assembling, refining, mining, extracting, farming, agricul-
45 ture, horticulture, floriculture, viticulture or commercial fishing. A
46 taxpayer shall be "principally engaged" in activities described above
47 if, during the taxable year, more than fifty percent of the gross
48 receipts of the taxpayer are derived from receipts from the sale of
49 goods produced by such activities;
50 (ii) A taxpayer who, if it were a corporation subject to article
51 nine-A of this chapter, would be eligible to compute its business allo-
52 cation percentage pursuant to subparagraph seven of paragraph (a) of
53 subdivision three of section two hundred ten of this chapter;
54 (iii) A taxpayer who, if it were a corporation subject to article
55 nine-A of this chapter, would be eligible to compute its business allo-
S. 996 12 A. 1926
1 cation percentage pursuant to subparagraph nine of paragraph (a) of
2 subdivision three of section two hundred ten of this chapter;
3 (iv) A taxpayer who, if it were a corporation subject to article
4 nine-A of this chapter, would be eligible to compute its business allo-
5 cation percentage pursuant to subparagraph eight of paragraph (a) of
6 subdivision three of section two hundred ten of this chapter;
7 (v) A taxpayer who, if it were a corporation, would be eligible to
8 make an election pursuant to subdivision ten of section one hundred
9 eighty-three of this chapter.
10 (F) "Average number of individuals employed full-time" shall be
11 computed by ascertaining the number of such individuals employed by the
12 taxpayer on the thirty-first day of March, the thirtieth day of June,
13 the thirtieth day of September and the thirty-first day of December
14 during each taxable year or other applicable period, by adding together
15 the number of such individuals ascertained on each of such dates and
16 dividing the sum so obtained by the number of such dates occurring with-
17 in such taxable year or other applicable period.
18 (G) "Targeted employee" means a New York resident who receives "spur
19 area wages" and who is (i) an eligible individual under the provisions
20 of the targeted jobs tax credit (section fifty-one of the internal
21 revenue code), (ii) eligible for benefits under the provisions of the
22 workforce investment act as a dislocated worker or low income individual
23 (P.L. 105-220, as amended), (iii) a recipient of public assistance bene-
24 fits, or (iv) an individual whose income is below the most recently
25 established poverty rate promulgated by the United States department of
26 commerce, or a member of a family whose family income is below the most
27 recently established poverty rate promulgated by the appropriate federal
28 agency. An individual who satisfies the criteria set forth in clause
29 (i), (ii) or (iv) of this subparagraph at the time of initial employment
30 in the job with respect to which the credit is claimed, or who satisfies
31 the criterion set forth in clause (iii) of this subparagraph at such
32 time or at any time within the previous two years, shall be a "targeted
33 employee" so long as such individual continues to receive "spur area
34 wages".
35 (3)(A) The credit provided for herein shall be allowed only where the
36 average number of individuals, employed full-time by the taxpayer in (i)
37 the state and (ii) the "spur area" during the taxable year exceeds by at
38 least fifty the average number of such individuals employed full-time by
39 the taxpayer in (i) the state and (ii) such "spur area" respectively,
40 during the year immediately preceding the first taxable year in which
41 the credit is claimed with respect to such "spur area". Where the
42 taxpayer provided full-time employment within (i) the state or (ii) such
43 "spur area" during only a portion of such immediately preceding year,
44 then for purposes of this paragraph the term "year" shall be deemed to
45 refer instead to such portion, if any.
46 (B) The credit shall be allowed only with respect to the first taxable
47 year during which payments of "spur area wages" are made to at least
48 fifty "qualified spur employees" and the conditions set forth in this
49 paragraph are satisfied, and with respect to each of the four taxable
50 years next following (but only, with respect to each of such years, if
51 such conditions are satisfied), in accordance with paragraph four of
52 this subsection. Subsequent employment by the taxpayer of "qualified
53 spur employees" at the same or a different location in the same "spur
54 area" or at a location in a different "spur area", shall not extend the
55 five taxable year time limitation on the allowance of the credit set
56 forth in the preceding sentence. However, during such five taxable year
S. 996 13 A. 1926
1 period during which the taxpayer is eligible to claim the "spur area
2 wage tax credit", "qualified spur employees" employed by the taxpayer at
3 the same or a different location in the same "spur area" or in a differ-
4 ent "spur area" (where at least fifty "qualified spur employees" are
5 employed), may be a part of the calculation described in paragraph four
6 of this subsection in determining the amount of the credit.
7 (4) The amount of the credit shall equal the sum of (i) the product of
8 three thousand dollars and the average number of individuals employed
9 full-time by the taxpayer, computed pursuant to the provisions of
10 subparagraph (F) of paragraph two of this subsection, who:
11 (I) received "spur area wages" for more than half of the taxable year,
12 (II) received, with respect to more than half of the period of employ-
13 ment by the taxpayer during the taxable year, an hourly wage which was
14 at least one hundred thirty-five percent of the minimum wage specified
15 in section six hundred fifty-two of the labor law, and
16 (III) are "targeted employees"; and
17 (ii) the product of fifteen hundred dollars and the average number of
18 individuals (excluding individuals described in subparagraph (i) of this
19 paragraph) employed full-time by the taxpayer, computed pursuant to the
20 provisions of subparagraph (F) of paragraph two of this subsection, who
21 received "spur area wages" for more than half of the taxable year; and
22 (iii) the product of three thousand five hundred dollars and the aver-
23 age number of individuals who are described in subparagraph (i) of this
24 paragraph employed full-time by the taxpayer in an area designated as an
25 empire zone pursuant to article eighteen-B of the general municipal law
26 and
27 (iv) the product of two thousand dollars and the average number of
28 individuals who are described in subparagraph two of this paragraph
29 employed full-time by the taxpayer in an area designated as an empire
30 zone pursuant to article eighteen-B of the general municipal law.
31 Individuals included in the calculation of the amounts under subpara-
32 graphs (iii) and (iv) of this paragraph shall not be included in the
33 calculation of the amounts under subparagraphs (i) and (ii) of this
34 paragraph.
35 Provided, further, however, that the credit provided for herein with
36 respect to the taxable year, and carryovers of such credit to the taxa-
37 ble year, deducted from the tax otherwise due, may not, in the aggre-
38 gate, exceed fifty percent of the tax imposed under section six hundred
39 one computed without regard to any credit provided for by this article.
40 (5) If the amount of the credit and carryovers of such credit allowed
41 under this subsection for any taxable year shall exceed the taxpayer's
42 tax for such year, the excess, as well as any part of the credit or
43 carryovers of such credit, or both, which may not be deducted from the
44 tax otherwise due by reason of the closing paragraph of paragraph four
45 of this subsection, may be carried over to the following year or years
46 and may be deducted from the taxpayer's tax for such year or years. In
47 lieu of carrying over any such excess, a taxpayer who qualifies as an
48 owner of a new business for purposes of paragraph ten of subsection (a)
49 of this section may, at his option, receive fifty percent of such excess
50 as a refund. Any refund paid pursuant to this paragraph shall be deemed
51 to be a refund of an overpayment of tax as provided in section six
52 hundred eighty-six of this article, provided, however, that no interest
53 shall be paid thereon.
54 (6) If the taxpayer pays "spur area wages" to an employee in an area
55 designated as an empire zone pursuant to article eighteen-B of the
56 general municipal law, on or after January first, two thousand five, and
S. 996 14 A. 1926
1 (i) the taxpayer or a "related person" has not claimed the empire zone
2 wage tax credit provided for in subsection (k) of this section with
3 respect to such employees, and (ii) the taxpayer meets the eligibility
4 requirements for both the credit provided for under this subsection and
5 subsection (k) of this section, such taxpayer may claim only one such
6 credit with respect to such employees. The taxpayer shall be required,
7 in the first taxable year such taxpayer is allowed to claim a credit
8 provided for under this subsection, to elect, with respect to such
9 employees, whether to claim the credit provided for under this
10 subsection or the credit provided for under subsection (k) of this
11 section. Such election shall be made with the filing of a return or
12 report required under this chapter, whichever is applicable, for such
13 taxable year. Such election shall apply to and be binding in each subse-
14 quent taxable year applicable to the credit provided for under either
15 this subsection or subsection (k) of this section.
16 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
17 of the tax law, as amended by section 3 of part P of chapter 60 of the
18 laws of 2004, is amended to read as follows:
19 (B) shall be treated as the owner of a new business with respect to
20 such share if the corporation qualifies as a new business pursuant to
21 paragraph (j) of subdivision twelve of section two hundred ten of this
22 chapter.
23 The corporation's
24 With respect to the credit base under
25 following credit section two hundred ten
26 under this section: or section fourteen
27 hundred fifty-six of this
28 chapter is:
29 Investment tax credit Investment credit base
30 under subsection (a) or qualified
31 rehabilitation
32 expenditures under
33 subdivision twelve of
34 section two hundred ten
35 Empire zone Cost or other basis
36 investment tax credit under subdivision
37 under subsection (j) twelve-B
38 of section two hundred
39 ten
40 Empire zone Eligible wages under
41 wage tax credit subdivision nineteen of
42 under subsection (k) section two hundred ten
43 or subsection (e) of
44 section fourteen hundred
45 fifty-six
46 Empire zone Qualified investments
47 capital tax credit and contributions under
48 under subsection (1) subdivision twenty of
49 section two hundred ten
50 or subsection (d) of
51 section fourteen hundred
S. 996 15 A. 1926
1 fifty-six
2 Agricultural property tax Allowable school
3 credit under subsection (n) district property taxes under
4 subdivision twenty-two of
5 section two hundred ten
6 Credit for employment Qualified first-year wages or
7 of persons with dis- qualified second-year wages
8 abilities under under subdivision
9 subsection (o) twenty-three of section
10 two hundred ten
11 or subsection (f)
12 of section fourteen
13 hundred fifty-six
14 Employment incentive Applicable investment credit
15 credit under subsec- base under subdivision
16 tion (a-1) twelve-D of section two
17 hundred ten
18 Empire zone Applicable investment
19 employment credit under sub-
20 incentive credit under division twelve-C
21 subsection (j-1) of section two hundred ten
22 Alternative fuels credit Cost under subdivision
23 under subsection (p) twenty-four of section two
24 hundred ten
25 Qualified emerging Applicable credit base
26 technology company under subdivision twelve-E
27 employment credit of section two hundred ten
28 under subsection (q)
29 Qualified emerging Qualified investments under
30 technology company subdivision twelve-F of
31 capital tax credit section two hundred ten
32 under subsection (r)
33 Credit for purchase of an Cost of an automated
34 automated external defibrillator external defibrillator under
35 under subsection (s) subdivision twenty-five of
36 section two hundred ten
37 or subsection (j) of section
38 fourteen hundred fifty-six
39 Low-income housing Credit amount under
40 credit under subsection (x) subdivision thirty
41 of section two hundred ten or
42 subsection (1) of section
43 fourteen hundred fifty-six
44 Credit for transportation Amount of credit under sub-
45 improvement contributions division thirty-two of section
46 under subsection (z) two hundred ten or subsection
S. 996 16 A. 1926
1 (n) of section fourteen
2 hundred fifty-six
3 IMB credit for energy Amount of credit
4 taxes under sub- under subdivision
5 section (t-1) twenty-six-a of
6 section two hundred ten
7 QEZE credit for real property Amount of credit under
8 taxes under subsection (bb) subdivision twenty-seven of
9 section two hundred ten or
10 subsection (o) of section
11 fourteen hundred fifty-six
12 QEZE tax reduction credit Amount of benefit period
13 under subsection (cc) factor, employment increase factor
14 and zone allocation
15 factor (without regard
16 to pro ration) under
17 subdivision twenty-eight of
18 section two hundred ten or
19 subsection (p) of section
20 fourteen hundred fifty-six
21 and amount of tax factor
22 as determined under
23 subdivision (f) of section sixteen
24 Green building credit Amount of green building credit
25 under subsection (y) under subdivision thirty-one
26 of section two hundred ten
27 or subsection (m) of section
28 fourteen hundred fifty-six
29 Credit for long-term Qualified costs under
30 care insurance premiums subdivision twenty-five-a of
31 under subsection (aa) section two hundred ten
32 or subsection (k) of section
33 fourteen hundred fifty-six
34 Brownfield redevelopment Amount of credit
35 credit under subsection under subdivision
36 (dd) thirty-three of section
37 two hundred ten
38 or subsection (q) of
39 section fourteen hundred
40 fifty-six
41 Remediated brownfield Amount of credit under
42 credit for real property subdivision thirty-four
43 taxes for qualified of section two hundred
44 sites under subsection ten or subsection (r) of
45 (ee) section fourteen hundred
46 fifty-six
47 Environmental Amount of credit under
48 remediation subdivision thirty-five of
S. 996 17 A. 1926
1 insurance credit under section two hundred
2 subsection (ff) ten or subsection
3 (s) of section
4 fourteen hundred
5 fifty-six
6 Empire state film production Amount of credit for qualified
7 credit under subsection (gg) production costs in production
8 of a qualified film under
9 subdivision thirty-six of
10 section two hundred ten
11 Spur area wage tax credit under Amount of credit under
12 subsection (k-1) subdivision nineteen-a of section
13 two hundred ten
14 § 4. This act shall take effect immediately and shall apply to taxable
15 years commencing on or after January 1, 2005; provided, however that the
16 IMB credit for energy taxes under subsection (t-1) and the state film
17 production credit under subsection (gg) of section 606 of the tax law
18 contained in section three of this act shall expire on the same date as
19 provided in subdivision (a) of section 49 of part Y of chapter 63 of the
20 laws of 2000, as amended and section 9 of part P of chapter 60 of the
21 laws of 2004, as amended, respectively.
22 PART D
23 Section 1. Paragraph (a) of subdivision 3 of section 210 of the tax
24 law is amended by adding a new subparagraph 10 to read as follows:
25 (10) (A) Notwithstanding the foregoing provisions of this paragraph, a
26 taxpayer which is a manufacturer that conducts business in an area which
27 is part of the strategic partnership for upstate resurgence initiative
28 under section sixteen-n of the New York state urban development corpo-
29 ration act, as added by a chapter of the laws of 2005 and, on or after
30 January first, two thousand five, makes a qualified investment in such
31 area of at least twenty-five million dollars, may elect to compute its
32 business allocation percentage in the taxable year in which its invest-
33 ment is placed in service at the percentage provided for in subparagraph
34 two of this paragraph. Such taxpayer may continue to make such election
35 in the next nine succeeding taxable years, provided the taxpayer contin-
36 ues to own such qualified investment in each of those taxable years.
37 Moreover, a taxpayer that meets the qualifications set forth in the
38 preceding sentences in this clause may elect to compute its business
39 allocation percentage at the percentage provided for in subparagraph two
40 of this paragraph in the tenth succeeding taxable year if such taxpayer
41 has created at least one hundred new jobs in one or more areas which are
42 part of such strategic partnership for upstate resurgence initiative
43 during the period beginning on January first, two thousand five and
44 ending on the last day of such ninth succeeding taxable year. Such jobs
45 must have been new jobs to the state and shall not have been transferred
46 to such area or areas from another area in the state. Such taxpayer may
47 continue to make such election in each taxable year thereafter, provided
48 the taxpayer continues to maintain its level of employment in such area
49 or areas and in the state in each of those taxable years.
50 (B) The term "manufacturer" shall mean a taxpayer which during the
51 taxable year is principally engaged in the production of goods by manu-
S. 996 18 A. 1926
1 facturing, processing, assembling, refining, mining, extracting, farm-
2 ing, agriculture, horticulture, floriculture, viticulture or commercial
3 fishing. Moreover, for purposes of computing a business allocation
4 percentage in a combined report, the combined group shall be considered
5 a manufacturer for purposes of this subparagraph only if the combined
6 group during the taxable year is principally engaged in the activities
7 set forth above, or any combination thereof. A taxpayer or a combined
8 group shall be "principally engaged" in activities described above if,
9 during the taxable year, more than fifty percent of the gross receipts
10 of the taxpayer or combined group, respectively, are derived from the
11 sale of goods produced by such activities. In computing a combined
12 group's gross receipts, inter-company sales shall be eliminated.
13 (C) The term "qualified investment" shall mean the acquisition,
14 purchase or construction of real or tangible personal property, whose
15 cost or other basis for federal income tax purposes equals or exceeds
16 twenty-five million dollars, and which is located in and used solely in
17 an area which is part of the strategic partnership for upstate resur-
18 gence initiative.
19 (D) A manufacturer shall be treated as creating at least one hundred
20 new jobs and as maintaining its level of employment if the average
21 number of individuals, excluding general executive officers, employed
22 full-time by the taxpayer or combined group in one or more areas which
23 are part of such strategic partnership for upstate resurgence initiative
24 and in the state for the taxable year equals or exceeds by one hundred
25 the average number of individuals, excluding general executive officers,
26 employed full time by the taxpayer or combined group in one or more
27 areas which are part of such strategic partnership for upstate resur-
28 gence initiative and in the state in a taxable year beginning on or
29 after January first, two thousand four and before January first, two
30 thousand five. Such number shall be computed by determining the number
31 of such individuals employed by the taxpayer or combined group on the
32 thirty-first day of March, the thirtieth day of June, the thirtieth day
33 of September and the thirty-first day of December during the applicable
34 taxable year, adding together the number of such individuals determined
35 to be so employed on each of such dates and dividing the sum so obtained
36 by the number of such dates occurring within such applicable taxable
37 year. For all taxable years other than the taxable year beginning on or
38 after January first, two thousand four and before January first, two
39 thousand five, such number shall not include individuals employed within
40 the immediately preceding sixty months by a related person to the
41 taxpayer or to any corporation included in the combined group. The term
42 "related person" shall have the same definition as in subparagraph (C)
43 of paragraph three of subsection (b) of section four hundred sixty-five
44 of the internal revenue code.
45 § 2. Paragraph (a) of subdivision 3-a of section 210 of the tax law,
46 as amended by chapter 170 of the laws of 1994, is amended to read as
47 follows:
48 (a) Multiply its alternative business income by an alternative busi-
49 ness allocation percentage determined pursuant to the method prescribed
50 in subdivision three of this section except that for taxable years
51 beginning before nineteen hundred ninety-four the additional percentage
52 (referred to in subparagraph four of paragraph (a) of such subdivision)
53 equal to the percentage determined under subparagraph two of paragraph
54 (a) of such subdivision shall be disregarded and not added together with
55 the other percentages, and except that the percentages employed in such
56 subdivision three shall be modified to reflect the factors utilized in
S. 996 19 A. 1926
1 computing minimum taxable income, provided, however, that a taxpayer
2 principally engaged in the conduct of aviation (other than air freight
3 forwarders acting as principal and like indirect air carriers) shall
4 determine its alternative business allocation percentage pursuant to the
5 method prescribed in subparagraph seven of paragraph (a) of subdivision
6 three of this section, provided further, however, that a taxpayer which
7 is a manufacturer, as defined in clause (B) of subparagraph ten of para-
8 graph (a) of subdivision three of this section, that conducts business
9 in an area which is part of the strategic partnership for upstate resur-
10 gence initiative under section sixteen-n of the New York state urban
11 development corporation act, as added by a chapter of the laws of 2005
12 and, on or after January first, two thousand five, makes a qualified
13 investment in such area of at least twenty-five million dollars, may
14 elect to compute the alternative business allocation percentage in the
15 taxable year in which its investment is placed in service at the
16 percentage provided for in subparagraph two of paragraph (a) of subdivi-
17 sion three of this section. Such taxpayer may continue to make such
18 election in the next nine succeeding taxable years, provided the taxpay-
19 er continues to own such qualified investment in each of those taxable
20 years. Moreover, a taxpayer that meets the qualifications set forth in
21 the preceding sentences in this clause, may elect to compute its alter-
22 native business allocation percentage at the percentage provided for in
23 subparagraph two of paragraph (a) of subdivision three of this section
24 in the tenth succeeding taxable year if such taxpayer has created at
25 least one hundred new jobs in one or more areas which are part of such
26 strategic partnership for upstate resurgence initiative during the peri-
27 od beginning on or after January first, two thousand five and ending on
28 the last day of such ninth succeeding taxable year. Such jobs must have
29 been new jobs to the state and shall not have been transferred to such
30 area or areas by another area in the state. Such taxpayer may continue
31 to make such election in each taxable year thereafter, provided the
32 taxpayer continues to maintain its level of employment in such area or
33 areas and in the state in each of those taxable years. Such taxpayer
34 shall determine whether or not it has created jobs or maintained its
35 level of employment pursuant to the provisions of clause (D) of subpara-
36 graph ten of paragraph (a) of subdivision three of this section.
37 § 3. Section 209-B of the tax law is amended by adding a new subdivi-
38 sion 2-c to read as follows:
39 2-c. (a) A taxpayer which is a manufacturer as defined in clause (B)
40 of subparagraph ten of paragraph (a) of subdivision three of section two
41 hundred ten of this article, notwithstanding the provisions of subdivi-
42 sion two of this section, may elect to determine the percentage of its
43 business activity carried on within the metropolitan commuter transpor-
44 tation district in the manner set forth in this subdivision.
45 (i) For taxable years beginning on or after January first, two thou-
46 sand five, the percentage of a manufacturer's business activity as
47 defined in clause (B) of subparagraph ten of paragraph (a) of subdivi-
48 sion three of section two hundred ten of this article within the metro-
49 politan commuter transportation district, that conducts business in an
50 area which is part of the strategic partnership for upstate resurgence
51 initiative under section sixteen-n of the New York state urban develop-
52 ment corporation act, as added by a chapter of the laws of 2005 and, on
53 or after January first, two thousand five, makes a qualified investment
54 in such area of at least twenty-five million dollars, shall be as
55 provided for in subparagraph two of paragraph (a) of subdivision three
56 of this section in the taxable year in which its investment is placed in
S. 996 20 A. 1926
1 service. Such taxpayer may elect to continue to use such percentage in
2 the next nine succeeding taxable years, provided the taxpayer continues
3 to own such qualified investment in each of those taxable years. More-
4 over, a taxpayer that meets the qualifications set forth in the preced-
5 ing sentences in this subparagraph, may elect to use the percentage
6 provided for in subparagraph two of paragraph (a) of this section if
7 such taxpayer has created at least one hundred new jobs in one or more
8 areas which are part of the strategic partnership for upstate resurgence
9 initiative during the period beginning on or after January first, two
10 thousand five and ending on the last day of such ninth succeeding taxa-
11 ble year. Such jobs must have been new jobs to the state and shall not
12 have been transferred to such area or areas from another area in the
13 state. Such taxpayer may continue to elect to use such percentage in
14 each taxable year thereafter, provided the taxpayer continues to main-
15 tain its level of employment in such area or areas and in the state in
16 each of those taxable years. Such taxpayer shall determine whether or
17 not it has created jobs or maintained its level of employment pursuant
18 to the provisions of clause (D) of subparagraph ten of paragraph (a) of
19 subdivision three of section two hundred ten of this article.
20 § 4. Subparagraph (ii) of paragraph (c) of subdivision 1 of section
21 210 of the tax law, as amended by section 1 of part L of chapter 407 of
22 the laws of 1999, is amended to read as follows:
23 (ii) For taxable years beginning in nineteen hundred ninety, nineteen
24 hundred ninety-one, nineteen hundred ninety-two, nineteen hundred nine-
25 ty-three and nineteen hundred ninety-four the amount prescribed by this
26 paragraph shall be computed at the rate of five percent of the taxpay-
27 er's minimum taxable income base. For taxable years beginning after
28 nineteen hundred ninety-four and before July first, nineteen hundred
29 ninety-eight, the amount prescribed by this paragraph shall be computed
30 at the rate of three and one-half percent of the taxpayer's minimum
31 taxable income base. For taxable years beginning after June thirtieth,
32 nineteen hundred ninety-eight and before July first, nineteen hundred
33 ninety-nine, the amount prescribed by this paragraph shall be computed
34 at the rate of three and one-quarter percent of the taxpayer's minimum
35 taxable income base. For taxable years beginning after June thirtieth,
36 nineteen hundred ninety-nine and before July first, two thousand, the
37 amount prescribed by this paragraph shall be computed at the rate of
38 three percent of the taxpayer's minimum taxable income base. For taxa-
39 ble years beginning after June thirtieth, two thousand, the amount
40 prescribed by this paragraph shall be computed at the rate of two and
41 one-half percent of the taxpayer's minimum taxable income base. Howev-
42 er, for taxable years beginning on or after January first, two thousand
43 five, the amount prescribed by this paragraph shall be computed at the
44 rate of zero percent of the taxpayer's minimum taxable income base
45 provided the taxpayer is eligible to compute its business allocation
46 percentage pursuant to subparagraph ten of paragraph (a) of subdivision
47 three of this section. The "taxpayer's minimum taxable income base"
48 shall mean the portion of the taxpayer's minimum taxable income allo-
49 cated within the state as hereinafter provided, subject to any modifica-
50 tions required by paragraphs (d) and (e) of subdivision three of this
51 section.
52 § 5. This act shall take effect immediately and shall apply to taxable
53 years beginning on or after January 1, 2005.
54 PART E
S. 996 21 A. 1926
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 37 to read as follows:
3 37. SPUR center of excellence affiliation credit.
4 (a) Credit. A taxpayer shall be allowed a credit, as hereinafter
5 provided.
6 (b) Qualifications. In order to qualify for the credit allowed under
7 this subdivision, a taxpayer shall meet the following qualifications.
8 (1) The taxpayer shall qualify as a new business under paragraph (j)
9 of subdivision twelve of this section.
10 (2) The taxpayer shall conduct at least some of its operations in one
11 or more areas which are part of the strategic partnership for upstate
12 resurgence initiative under section sixteen-n of the New York state
13 urban development corporation act as added by a chapter of the laws of
14 2005.
15 (3) The taxpayer during the taxable year shall be affiliated with a
16 university which has been designated a center of excellence pursuant to
17 section three of part T of chapter eighty-four of the laws of two thou-
18 sand two.
19 (4) Since January first, two thousand five, the taxpayer shall have
20 either (i) created and maintained at least twenty-five new jobs in one
21 or more areas which are part of the strategic partnership for upstate
22 resurgence initiative, which jobs cannot have been transferred into such
23 area or areas from some other location in the state, or (ii) made a
24 significant investment in real or tangible personal property in one or
25 more areas which are part of the strategic partnership for upstate
26 resurgence initiative. Such jobs and investment must be directly
27 connected to the taxpayer's affiliation with a university which has been
28 designated a center of excellence.
29 (5) The higher of the amounts prescribed in paragraph (b) or (d) of
30 subdivision one of this section for the taxpayer for the taxable year
31 exceeds the amounts prescribed in paragraphs (a) and (c) of such subdi-
32 vision.
33 (c) Amount of the credit. The amount of the credit shall be equal to
34 the product of (1) the taxpayer's net operating loss, (2) the taxpayer's
35 business allocation percentage for the taxable year, and (3) the tax
36 rate under this article which is in effect for the taxable year. Howev-
37 er, the amount of the credit allowed for any taxable year shall not
38 exceed one million dollars and the total aggregate amount allowed to the
39 taxpayer shall not exceed five million dollars.
40 (d) Certification by the urban development corporation. In order to
41 be allowed a credit under this subdivision, the taxpayer must have
42 received certification for the taxable year from the chairman of the
43 urban development corporation that the taxpayer has met the qualifica-
44 tions set forth in subparagraphs three and four of paragraph (b) of this
45 subdivision. The chairman of the urban development corporation shall
46 promulgate regulations describing the application procedures to be used
47 by taxpayers seeking the certification required under this paragraph and
48 setting forth the standards to be used by such department to establish
49 that a taxpayer has met the qualifications set forth in such subpara-
50 graphs three and four. The certification from the chairman of the urban
51 development corporation must be attached to the taxpayer's return on
52 which the credit allowed under this subdivision is claimed. The urban
53 development corporation periodically shall send to the department a list
54 of all taxpayers that have received certification.
55 (e) Application of the credit. The credit allowed under this subdivi-
56 sion for any taxable year shall not reduce the tax due for such year to
S. 996 22 A. 1926
1 less than the amount prescribed in paragraph (d) of subdivision one of
2 this section. However, if the amount of credit allowed under this subdi-
3 vision for any taxable year reduces the tax to such amount, any amount
4 of credit thus not deductible shall be treated as an overpayment of tax
5 to be credited or refunded in accordance with the provisions of section
6 ten hundred eighty-six of this chapter. Provided, however, the
7 provisions of subsection (c) of section ten hundred eighty-eight of this
8 chapter notwithstanding, no interest shall be paid thereon.
9 (f) For purposes of this subdivision, the term "net operating loss"
10 shall mean the loss which results when entire net income is calculated
11 for the taxable year pursuant to the provisions of subdivision nine of
12 section two hundred eight of this article, computed without regard to
13 the deduction allowed or allowable under Section 172 of the internal
14 revenue code and paragraph (f) of subdivision nine of such section two
15 hundred eight.
16 (g) Allowance of credit on a combined return. In the case of a taxpay-
17 er which reports its tax with one or more corporations on a combined
18 report, in order to be allowed a credit under this subdivision, the
19 qualifications set forth in such subparagraphs one through four of para-
20 graph (b) of this subdivision shall be satisfied by one or more of the
21 taxpayers included in the combined report. In determining whether or not
22 the qualification set forth in such subparagraph four that at least
23 twenty-five new jobs in one or more areas which are part of the strate-
24 gic partnership for upstate resurgence initiative are created and main-
25 tained, such jobs cannot have been transferred into such area or areas
26 from some other location in the state and cannot include any jobs trans-
27 ferred from any other corporations included in the combined group. The
28 qualification set forth in subparagraph five of paragraph (b) of this
29 subdivision shall be satisfied by the combined group. The amount of the
30 credit allowed under this subdivision shall be determined by using the
31 net operating loss of the combined group. The amount of the credit
32 allowed for any taxable year on a combined report shall not exceed one
33 million dollars and the total aggregate amount allowed on the combined
34 report shall not exceed five million dollars.
35 § 2. This act shall take effect immediately and shall apply to taxable
36 years beginning on or after January 1, 2005.
37 PART F
38 Section 1. Section 956 of the general municipal law, as amended by
39 chapter 708 of the laws of 1993, is amended to read as follows:
40 § 956. Statement of legislative findings and declaration. It is here-
41 by found and declared that given the nature of the evolving global econ-
42 omy and the changing industrial and economic environment, the state's
43 ability to attract and retain businesses depends largely upon decreasing
44 the tax and economic burden on businesses that locate and operate busi-
45 ness facilities or operations in the state. Given these circumstances
46 and the critical importance of the state's economic future, state and
47 local government must provide extraordinary measures in order to help
48 stimulate private business development and job creation in the state. It
49 is the public policy of the state to offer special assistance that will
50 promote the development of new businesses and the expansion or retention
51 of existing businesses throughout the state. It is further found and
52 declared that private business development and job creation requires the
53 mutual cooperation of all levels of state and local government and the
54 business community.
S. 996 23 A. 1926
1 It is hereby further found and declared that there exist within the
2 state certain areas characterized by persistent and pervasive poverty,
3 high unemployment, limited new job creation, a dependence on public
4 assistance income, dilapidated and abandoned industrial and commercial
5 facilities, and shrinking tax bases. These severe conditions require
6 state and local government to target for these areas extraordinary
7 economic and human resource development programs in order to stimulate
8 private investment, private business development and job creation. It is
9 the public policy of the state to offer special incentives and assist-
10 ance that will promote the development of new businesses, the expansion
11 of existing businesses and the development of human resources within
12 these economically impoverished areas and to do so without encouraging
13 the relocation of business investment from other areas of the state. It
14 is further found and declared that it is the public policy of the state
15 to achieve these goals through the mutual cooperation of all levels of
16 state and local government and the business community.
17 § 2. Subdivisions (a), (e), (f), (k), (m), (p), (q) and (r) of section
18 957 of the general municipal law, subdivision (a) as added by chapter
19 686 of the laws of 1986, subdivision (e) as amended and subdivision (m)
20 as added by chapter 708 of the laws of 1993, subdivision (f) as amended
21 and subdivision (k) as added by chapter 624 of the laws of 1990, subdi-
22 vision (p) as added by chapter 170 of the laws of 1994, subdivisions (q)
23 and (r) as added by section 1 of part Q of chapter 84 of the laws of
24 2002, subdivisions (a), (e), (f), (k) and (m) as further amended pursu-
25 ant to section 15 of part GG of chapter 63 of the laws of 2000, are
26 amended and five new subdivisions (s), (t), (u), (v) and (w) are added
27 to read as follows:
28 (a) "Applicant" shall mean the county, city, town or village submit-
29 ting an application pursuant to this article and in the manner author-
30 ized by local law for designation of an area as an empire zone.
31 (e) "Local empire zone administrative board" shall mean the entity
32 designated by the applicant that is responsible for monitoring, evaluat-
33 ing and coordinating all empire zone benefits on behalf of the appli-
34 cant. Such entity shall consist of at least six members, none of whom
35 shall be the local empire zone [certification officer] coordinator, and
36 shall be representative of local businesses, organized labor, community
37 organizations, financial institutions, local educational institutions
38 and residents of the empire zone.
39 (f) "Local empire zone [certification officer] coordinator" shall mean
40 the official designated by the applicant who is the commissioner's
41 contact person for the local empire zone that is responsible for coordi-
42 nating all empire zone benefits and administrative functions on behalf
43 of the local empire zone administrative board or administrative entity
44 and who is responsible for jointly certifying and decertifying together
45 with the commissioner and the commissioner of labor those business
46 enterprises eligible to receive benefits pursuant to this article.
47 (k) "Targeted employee" shall mean a New York resident who receives
48 empire zone wages pursuant to subdivision nineteen of section two
49 hundred ten of the tax law and who is (i) an eligible individual under
50 the provision of the targeted jobs tax credit (section fifty-one of the
51 internal revenue code), (ii) eligible for benefits under the provisions
52 of the [job training partnership act (P.L. 97-300, as amended)] work-
53 force investment act (P.L. 105-220) as a dislocated worker or low income
54 individual, (iii) a recipient of public assistance benefits, or (iv) an
55 individual whose income is below the most recently established poverty
56 rate promulgated by the United States department of commerce, or a
S. 996 24 A. 1926
1 member of a family whose family income is below the most recently estab-
2 lished poverty rate promulgated by the appropriate federal agency.
3 An individual who satisfies the criteria set forth in clause (i), (ii)
4 or (iv) of this subdivision at the time of initial employment in the job
5 with respect to which the credit is claimed, or who satisfies the crite-
6 rion set forth in clause (iii) of this subdivision at such time or at
7 any time within the previous two years, shall be a targeted employee so
8 long as such individual continues to receive empire zone wages.
9 (m) "Zone administrative entity" shall mean a community-based local
10 development corporation or entity contracting with the local empire zone
11 board pursuant to paragraph [(viii)] (xii) of subdivision (b) of section
12 nine hundred sixty-three of this article or the municipality in which
13 the zone is located in those instances where the municipality actively
14 participates in the local administration of the zone program.
15 (p) ["Zone equivalent area" shall mean an area designated as such
16 pursuant to subdivision (bb) of section nine hundred fifty-nine of this
17 article.
18 (q) "New empire zone" shall mean an empire zone that has been desig-
19 nated pursuant to paragraphs (vii) and (viii) of subdivision (b) of
20 section nine hundred sixty of this article.
21 (r) "Existing empire zone" shall mean an empire zone that has been
22 designated pursuant to paragraphs (i), (ii), (iii), (iv), (v), and (vi)
23 of subdivision (b) of section nine hundred sixty of this article.]
24 "Superboundary" shall mean a four square mile area within which an
25 empire zone designated under subdivision (a) or (d) of section nine
26 hundred fifty-eight of this article must be located. Such superboundary
27 shall be characterized by pervasive poverty, high unemployment and
28 general economic distress, must correspond to traditional neighborhood
29 or community boundaries, and where appropriate, be bounded by major
30 natural or man-made physical boundaries, such as bodies of water, rail-
31 road lines, or limited access highways and may be one contiguous area or
32 up to three non-contiguous areas.
33 (q) "Neighborhood revitalization empire zone" shall mean an empire
34 zone designated pursuant to subdivision (a) or (d) of section nine
35 hundred fifty-eight of this article.
36 (r) "Countywide development empire zone" shall mean an empire zone
37 designated pursuant to subdivision (b) or (c) of section nine hundred
38 fifty-eight of this article.
39 (s) "Flex acreage empire zone" shall mean an empire zone area desig-
40 nated pursuant to subdivision (f) of section nine hundred fifty-eight of
41 this article which will attract large projects involving job creation of
42 at least three hundred new jobs in the state, provided, however, such
43 area may not be designated within the metropolitan commuter transporta-
44 tion district; or projects involving job creation of at least one
45 hundred new jobs provided such area is located within a census tract
46 meeting the criteria of subdivision (a) of section nine hundred fifty-
47 eight of this article.
48 (t) "Flex acreage agribusiness opportunity empire zone" shall mean an
49 empire zone area designated pursuant to subdivision (g) of section nine
50 hundred fifty-eight of this article to accommodate agribusinesses,
51 including but not limited to dairy, food and fruit processors and bio-
52 refineries.
53 (u) "Targeted area" shall mean a four square mile area or a two square
54 mile area for local empire zones designated as a one square mile empire
55 zone within which an empire zone designated under paragraph (ii) of
56 subdivision (b) or paragraph (viii) of subdivision (c) of section nine
S. 996 25 A. 1926
1 hundred fifty-eight of this article must be located. Such area shall be
2 characterized by poverty, unemployment and general economic distress
3 relative to such county, must correspond to traditional neighborhood or
4 community boundaries, and where appropriate, be bounded by major natural
5 or man-made physical boundaries, such as bodies of water, railroad lines
6 or limited access highways and may be one contiguous area or up to six
7 non-contiguous areas.
8 (v) "Applicant municipality" means the county, city, town or village
9 that applied for and received empire zone designation as authorized by
10 section nine hundred sixty of this article.
11 (w) "Concurring municipality" means a city, town or village that is
12 required to agree with the applicant municipality's proposed addition or
13 removal of empire zone acreage from within such city, town or village's
14 municipal borders.
15 § 3. Section 958 of the general municipal law, as added by chapter 686
16 of the laws of 1986, paragraph (i) of subdivision (a) and subdivision
17 (b) as amended by chapter 624 of the laws of 1990, paragraphs (ii) and
18 (vi) of subdivision (a) and subdivision (c) as amended by chapter 708 of
19 the laws of 1993, paragraph (iii) of subdivision (a) as amended by
20 section 2 of part Q of chapter 84 of the laws of 2002, subdivision (d)
21 as amended by chapter 41 of the laws of 2000, subdivision (e) as relet-
22 tered by chapter 492 of the laws of 1999 and such section as further
23 amended pursuant to section 15 of part GG of chapter 63 of the laws of
24 2000, is amended to read as follows:
25 § 958. Criteria for empire zone designation. (a) To be eligible for
26 designation as [an] a neighborhood revitalization empire zone, [an] the
27 proposed empire zone area must be [characterized by pervasive poverty,
28 high unemployment and general economic distress, must correspond to
29 traditional neighborhood or community boundaries, and where appropriate,
30 be bounded by major natural or man-made physical boundaries, such as
31 bodies of water, railroad lines, or limited access highways; and]
32 located within a superboundary and such superboundary must be located in
33 an area that must meet the following requirements:
34 (i) the area shall include a United States census tract or tracts [or
35 block numbering area or areas, or portions thereof, each full census
36 tract or portion of a block numbering area of] which, according to the
37 most recent census data available, has:
38 (A) a poverty rate of at least twenty percent for the year to which
39 the data relate;
40 (B) an unemployment rate of at least 1.25 times the statewide unem-
41 ployment rate for the year to which the data relate; and
42 (C) a population of at least two thousand[.];
43 (ii) [lands nearby or contiguous to census tracts or block numbering
44 areas described in paragraph (i) of this subdivision may be eligible to
45 be included within an empire zone if, upon the request of the applicant,
46 the commissioner finds, in accordance with regulations promulgated
47 pursuant to this article, that such additional lands have significant
48 potential for business development and job creation, which will enhance
49 economic revitalization of the zone and benefit zone residents;
50 provided, however, that lands nearby shall not be included in a zone
51 until the commissioner, in consultation with the director of the budget,
52 promulgates regulations governing the inclusion of such lands] portions
53 of superboundaries may also be located in census tracts contiguous to
54 census tracts described in paragraph (i) of this subdivision;
55 (iii) [the area proposed as an empire zone shall not exceed:
S. 996 26 A. 1926
1 two square miles for any zone, such area shall be defined by one or
2 more borders, which borders shall be determined by the applicant and
3 need not be entirely coterminous with the borders of census tracts or
4 block numbering areas provided, however, that such zone shall be located
5 entirely within traditional neighborhood or community boundaries, and
6 where appropriate, be bounded by major natural or man-made physical
7 boundaries, such as bodies of water, railroad lines, or limited access
8 highways, provided, however, that not less than seventy-five percent of
9 the area proposed as an empire zone created pursuant to paragraphs (vii)
10 and (viii) of subdivision (b) of section nine hundred sixty of this
11 article shall be located in not more than three non-contiguous areas,
12 and the zones created pursuant to paragraph (viii) of subdivision (b) of
13 section nine hundred sixty of this article should be limited to one
14 square mile;
15 (iv)] if [such] the superboundary area is governed by zoning laws or
16 other laws or regulations governing land use, such laws or regulations
17 must allow at least twenty-five percent of such area to be used for
18 commercial or industrial activity;
19 [(v)] (iv) at least twenty-five percent of the total land within
20 [such] the superboundary area must be vacant, abandoned or otherwise
21 available for industrial or commercial development or redevelopment;
22 [and]
23 (v) the area proposed as an empire zone under this subdivision shall
24 not exceed two square miles that shall be defined by a legal description
25 that may describe all or a portion of a tax parcel or tax parcels; and
26 (vi) such other requirements as may be established in regulations
27 promulgated by the commissioner with the approval of the director of the
28 budget and after consultation with the commissioner of labor, including
29 but not limited to:
30 (A) a comprehensive demonstration of chronic and severe economic
31 distress and the reasons therefor as evidenced by population and employ-
32 ment decline, increase in unemployment and public assistance recipients,
33 decline in real property values, relative decline in per capita income,
34 the extent of abandoned property and deteriorated industrial, commercial
35 and residential properties, a decline in the number of business estab-
36 lishments, obsolescence in plant capacity, loss of markets to foreign
37 competition, the unavailability of expansion financing, poor access to
38 markets, the retirement of local owners of companies;
39 (B) a demonstration of the potential of the area to attract private
40 investment that will provide employment to persons in the area who are
41 unemployed or economically disadvantaged;
42 (C) a demonstration of substantial public and private commitments to a
43 long-term economic revitalization program for the area and the local
44 capacity to manage such a program;
45 (D) a demonstration of the manner in which the superboundary area is
46 consistent with the empire zone development plan and a demonstration of
47 the manner in which the overall [economic] empire zone development plan
48 enunciates the needs of the area and sets forth proposals to solve them;
49 and
50 (E) a demonstration of the manner in which progress in implementing
51 the zone development plan will be routinely evaluated on the local level
52 and how information essential for periodic evaluations will be compiled.
53 Such regulations may require a demonstration of a decline in popu-
54 lation, a decline in employment, an increase in unemployment, a decline
55 in real property values, a relative decline in per capita income, the
56 extent of abandoned property and deteriorated industrial, commercial and
S. 996 27 A. 1926
1 residential property, a decline in the number of business establish-
2 ments, and other indicators of severe economic distress.
3 (b) Notwithstanding the provisions of [paragraph (i) of] subdivision
4 (a) of this section, any county in which the average rate of unemploy-
5 ment in the two most recent calendar years was at least one and one-
6 quarter times the state average for those years and in which the rate of
7 poverty for individuals was at least thirteen percent according to the
8 most recent census data available, and which does not contain a census
9 tract or tracts[, portion of a block numbering area or a city, town or
10 village] which meets the criteria specified in [such] paragraph (i) of
11 subdivision (a) of this section, may apply for designation of an area
12 within a municipality as an empire zone. The area proposed for desig-
13 nation shall [be characterized by pervasive poverty, high unemployment
14 and general economic distress.] meet the following requirements:
15 (i) the area proposed as an empire zone under this subdivision shall
16 not exceed two square miles that shall be defined by a legal description
17 that may describe all or a portion of a tax parcel or tax parcels;
18 (ii) at least sixty percent of the total empire zone area shall be
19 located within census tracts that have rates of unemployment and poverty
20 which exceed the countywide unemployment and poverty rates or for coun-
21 ties with a population of under one hundred thousand census tracts that
22 have rates of unemployment or poverty which exceed the countywide unem-
23 ployment or poverty rates according to the most recent census data
24 available, provided, however, such empire zone area shall be located in
25 no more than six targeted areas; and
26 (iii) up to forty percent of the total empire zone area may be placed
27 in a location other than as described in paragraph (ii) of this subdivi-
28 sion; provided, however, such designation is to accommodate the
29 attraction or expansion of a significant project within the county.
30 (c) Notwithstanding the provisions of [paragraph (i) of subdivision]
31 subdivisions (a) and (b) of this section, any county may apply for
32 designation of an area within a municipality as an empire zone provided
33 that the following requirements are met:
34 (i) at the time of application, the unemployment rate of the metropol-
35 itan statistical area must exceed the national average of unemployment
36 and the metropolitan statistical area must have experienced or is likely
37 to experience within three years the lesser of a loss of four thousand
38 direct jobs or a dislocation of workers equal to one-half percent of the
39 employed population of the metropolitan statistical area and at least
40 fifty percent of the job loss or dislocation of workers must result from
41 the action of a single employer, or eighty percent of such job loss or
42 dislocation must occur in a single standard industry classification (two
43 digit code); or
44 (ii) at the time of application, the unemployment rate of the metro-
45 politan statistical area must be equal to or less than the national
46 average of unemployment and the metropolitan statistical area must have
47 experienced or is likely to experience within three years the lesser of
48 a loss of eight thousand direct jobs or a dislocation of workers equal
49 to one percent of the employed population of the metropolitan statis-
50 tical area and at least fifty percent of the job loss or dislocation of
51 workers must result from the action of a single employer, or eighty
52 percent of such job loss or dislocation must occur in a single standard
53 industry classification (two digit code); or
54 (iii) at the time of application, the unemployment rate of the labor
55 market area must exceed the national average of unemployment and the
56 labor market area must have experienced or is likely to experience with-
S. 996 28 A. 1926
1 in three years the lesser of a loss of five hundred direct jobs or a
2 dislocation of workers equal to two percent of the employed population
3 of the labor market area; or
4 (iv) at the time of application, the unemployment rate of the labor
5 market area must be equal to or less than the national average of unem-
6 ployment and the labor market area must have experienced or is likely to
7 experience within three years the lesser of a loss of one thousand
8 direct jobs or a dislocation of workers equal to four percent of the
9 employed population of the labor market area; or
10 (v) at the time of application, the municipality is declared a natural
11 disaster area by the president of the United States; or
12 (vi) at the time of application, the municipality contains:
13 (A) a defense or military base or facility which has been designated
14 for closure or realignment; or
15 (B) a state-operated hospital or facility listed in sections 7.17 or
16 13.17 of the mental hygiene law which has been designated by either the
17 commissioner of mental health or the commissioner of mental retardation
18 and developmental disabilities for contraction or discontinuance[.
19 Provided however, that not more than one-third of the zones designated
20 pursuant to paragraph (iii) or (iv) of subdivision (b) of section nine
21 hundred sixty, shall be based on applications filed pursuant to para-
22 graph (vi) of this subdivision.]; and
23 (vii) the area proposed as an empire zone under this subdivision shall
24 not exceed two square miles or one square mile for local empire zones
25 designated as such that shall be defined by a legal description that may
26 describe all or a portion of a tax parcel or tax parcels; and
27 (viii) at least sixty percent of the total empire zone area shall be
28 located within census tracts that have rates of unemployment and poverty
29 which exceed the countywide unemployment and poverty rates, or for coun-
30 ties with a population of under one hundred thousand census tracts that
31 have rates of unemployment or poverty which exceed the countywide unem-
32 ployment or poverty rates according to the most recent census data
33 available, provided, however, such empire zone area shall be located in
34 no more than six targeted areas; and
35 (ix) up to forty percent of the empire zone area may be placed in a
36 location other than as described in paragraph (viii) of this subdivi-
37 sion; provided, however, such designation is to accommodate the
38 attraction or expansion of a significant project within the county.
39 (d) Notwithstanding the provisions of [paragraph (i) of subdivision]
40 subdivisions (a), (b) and (c) of this section, any municipality may
41 apply for designation as [an] a neighborhood revitalization empire zone
42 [for an area which shall include a United States census tract or tracts
43 or block numbering area or areas or portions thereof, each full census
44 tract or portion of a block numbering area of which according to the
45 most recent census data available has]. To be eligible for designation
46 as a neighborhood revitalization empire zone, the proposed empire zone
47 area must be located within a superboundary and such superboundary must
48 be located in an area that must meet the following requirements:
49 (i) at the time of application, an unemployment rate equal to or
50 exceeding the unemployment rate of the state of New York[;
51 (ii)], a rate of poverty for individuals of at least twenty percent[;
52 (iii)], a number of households receiving public assistance of fourteen
53 percent or more[;
54 (iv)], the municipality is considered a non-metropolitan area[;] and
55 [(v)] there is no other empire zone in the county in which designation
56 is sought.
S. 996 29 A. 1926
1 (ii) portions of superboundaries may also be located in census tracts
2 contiguous to census tracts described in paragraph (i) of this subdivi-
3 sion;
4 (iii) if the superboundary area is governed by zoning laws or other
5 laws or regulations governing land use, such laws or regulations must
6 allow at least twenty-five percent of such area to be used for commer-
7 cial or industrial activity;
8 (iv) at least twenty-five percent of the total land within the super-
9 boundary area must be vacant, abandoned or otherwise available for
10 industrial or commercial development or redevelopment;
11 (v) the area proposed as an empire zone under this subdivision shall
12 not exceed two square miles that shall be defined by a legal description
13 that may describe all or a portion of a tax parcel or tax parcels; and
14 (vi) such other requirements as may be established in regulations
15 promulgated by the commissioner with the approval of the director of the
16 budget and after consultation with the commissioner of labor, including
17 but not limited to:
18 (A) a comprehensive demonstration of chronic and severe economic
19 distress and the reasons therefor as evidenced by population and employ-
20 ment decline, increase in unemployment and public assistance recipients,
21 decline in real property values, relative decline in per capita income,
22 the extent of abandoned property and deteriorated industrial, commercial
23 and residential properties, a decline in the number of business estab-
24 lishments, obsolescence in plant capacity, loss of markets to foreign
25 competition, the unavailability of expansion financing, poor access to
26 markets, and the retirement of local owners of companies;
27 (B) a demonstration of the potential of the area to attract private
28 investment that will provide employment to persons in the area who are
29 unemployed or economically disadvantaged;
30 (C) a demonstration of substantial public and private commitments to a
31 long-term economic revitalization program for the area and the local
32 capacity to manage such a program;
33 (D) a demonstration of the manner in which the superboundary area is
34 consistent with the empire zone development plan and a demonstration of
35 the manner in which the overall empire zone development plan enunciates
36 the needs of the area and sets forth proposals to solve them; and
37 (E) a demonstration of the manner in which progress in implementing
38 the empire zone development plan will be routinely evaluated on the
39 local level and how information essential for periodic evaluations will
40 be compiled. Such regulations may require a demonstration of a decline
41 in population, a decline in employment, an increase in unemployment, a
42 decline in real property values, a relative decline in per capita
43 income, the extent of abandoned property and deteriorated industrial,
44 commercial and residential property, a decline in the number of business
45 establishments, and other indicators of severe economic distress.
46 (e) The empire zones designation board may accept from an applicant
47 seeking designation any data in lieu of census data supporting such
48 application as the commissioner deems to be reliable.
49 (f) Notwithstanding the provisions of subdivisions (a), (b), (c), (d)
50 and (g) of this section, the commissioner may designate each year areas
51 of up to one non-contiguous square mile in total which will attract
52 large projects involving job creation of at least three hundred new jobs
53 in the state, provided, however, such area may not be designated within
54 the metropolitan commuter transportation district; or projects involving
55 job creation of at least one hundred new jobs provided such area is
56 located within a census tract meeting the criteria of subdivision (a) of
S. 996 30 A. 1926
1 this section. Unused acreage may be carried forward for use by the
2 commissioner in subsequent calendar years.
3 (g) Notwithstanding the provisions of subdivisions (a), (b), (c), (d)
4 and (f) of this section, the commissioner may, with the concurrence of
5 the commissioner of agriculture and markets, designate each year areas
6 of up to one non-contiguous square mile in total which will attract
7 projects that substantially contribute to keeping viable agricultural
8 land in active production or significantly increase agribusiness econom-
9 ic activity within the state as may be demonstrated by such factors,
10 including but not limited to, increased cultivated acreage or production
11 capacity of or increased processing capacity or market opportunities for
12 crops, livestock and livestock products, as defined in section three
13 hundred one of the agriculture and markets law, produced within the
14 state. The commissioner, with the concurrence of the commissioner of
15 agriculture and markets, shall promulgate regulations to establish such
16 further qualification to determine eligibility for designation of such
17 areas, including but not limited to, the level of New York crops, live-
18 stock and livestock products, utilized within production, processing,
19 manufacturing or marketing functions in the state, and, provided further
20 that such regulations will result in designation of acreage in at least
21 four counties. Unused acreage may be carried forward for use by the
22 commissioner in subsequent calendar years.
23 § 4. Section 959 of the general municipal law, as added by chapter 686
24 of the laws of 1986, subdivision (a) as amended and subdivisions (aa)
25 and (bb) as added by chapter 170 of the laws of 1994, subdivision (e) as
26 amended by chapter 385 of the laws of 1994, subdivisions (f), (h) and
27 (j) as amended and subdivisions (l), (m), (n), (o), (q), (r), (s), (t),
28 (u), (v), (w), (x), (y) and (z) as added by chapter 708 of the laws of
29 1993, subdivision (i) as amended by chapter 624 of the laws of 1990,
30 subdivision (p) as amended by chapter 301 of the laws of 1996 and such
31 section as further amended pursuant to section 15 of part GG of chapter
32 63 of the laws of 2000, is amended to read as follows:
33 § 959. Responsibilities of the commissioner. The commissioner shall:
34 (a) After consultation with the director of the budget, the commis-
35 sioner of labor, and the commissioner of taxation and finance, promul-
36 gate regulations governing (i) criteria of eligibility for empire zone
37 designation, provided, however, that such criteria be approved by the
38 director of the budget; (ii) the application process; (iii) the joint
39 certification by the commissioner, the commissioner of labor, and, in
40 the case of an empire zone, the local empire zone [certification offi-
41 cer] coordinator, as to the eligibility of business enterprises for
42 benefits referred to in section nine hundred sixty-six of this article,
43 provided, however, that a business enterprise that has shifted its oper-
44 ations, or some portions thereof, from an area within New York state not
45 designated as an empire zone [or zone equivalent area] to an area so
46 designated shall not be certified to receive such benefits except where
47 such shift is entirely within a municipality and has been approved by
48 the local governing body of such municipality or in situations where it
49 has been established, after a public hearing, that extraordinary circum-
50 stances exist which warrant the relocation of a business, in whole or
51 part, into an empire zone [or a zone equivalent area] from another muni-
52 cipality and the municipality from which the business is relocating
53 approves of such relocation; or where such shift in operations is from a
54 business incubator facility operated by a municipality or by a public or
55 private not-for-profit entity which provides space and business support
56 services to newly established firms; and (iv) the joint decertification
S. 996 31 A. 1926
1 by the commissioner, the commissioner of labor, and, in the case of an
2 empire zone, the local empire zone [certification officer] coordinator
3 so as to revoke the certification of business enterprises for benefits
4 referred to in section nine hundred sixty-six of this article with
5 respect to an empire zone [or zone equivalent area] upon a finding that
6 (1) the business enterprise made material misrepresentations of fact on
7 its application for certification, or the business enterprise failed to
8 disclose facts in its application for certification that would consti-
9 tute grounds for not issuing a certification; (2) the business enter-
10 prise has failed to construct, expand, rehabilitate or operate its
11 facility substantially in accordance with the representations contained
12 in its application for certification; (3) the business enterprise has
13 failed to create new employment or prevent a loss of employment in the
14 empire zone [or zone equivalent area] provided, however, that such fail-
15 ure was not due to economic circumstances or conditions which such busi-
16 ness could not anticipate or which were beyond its control; (4) where
17 applicable, the business enterprise has failed to submit an annual
18 report after it has applied for zone incentives or program assistance
19 based on new hires or investments or failed to submit other information
20 to the local empire zone [certification officer] coordinator when due;
21 or (5) the business enterprise has committed substantial violations of
22 laws for the protection of workers including all federal, state and
23 local labor laws, rules or regulations; said regulations shall provide
24 that whenever any business enterprise is decertified with respect to an
25 empire zone [or zone equivalent area]: (A) the date determined to be the
26 earliest event constituting grounds for revoking certification [shall]
27 may be the effective date of decertification; (B) its certified single
28 enterprise, if any, may also be decertified; and (C) the commissioner
29 shall notify the commissioner of taxation and finance that such decer-
30 tification has occurred, and such notification should include the effec-
31 tive date of such decertification and the zone [or zone equivalent area]
32 to which such decertification applies;
33 (b) Receive and review applications for designation of areas as empire
34 zones;
35 (c) Make recommendations to the empire zones designation board for
36 designation of areas as empire zones, provided, however, that all such
37 areas recommended by the commissioner shall meet the requirements of
38 this article;
39 (d) Review new applications to replace any previously designated
40 empire zone the designation of which has been terminated or withdrawn;
41 (e) File notice of the designation or redesignation of an empire zone
42 or of the revision or termination of such designation with the appli-
43 cant, the department of taxation and finance, the secretary of state,
44 with the county, city, town or village clerk of each county, city, town,
45 or village, respectively, in which the empire zone is located, with the
46 school district governing body in which the empire zone is located, with
47 the state board of real property services and with other state and local
48 entities; provided, however, that such notice shall specify the date
49 such action was taken and shall contain a description sufficient to
50 identify the empire zone, including the names of the abutting streets,
51 roads, highways, bodies of water, or other identifying physical
52 features;
53 (f) [Request, and shall receive from any department, division, board,
54 bureau, commission, agency or public authority of the state such assist-
55 ance as may be necessary to establish a procedure whereby applications
56 submitted by business entities, community-based organizations, not-for-
S. 996 32 A. 1926
1 profit organizations, human service agencies, labor unions and municipal
2 agencies located within an empire zone requesting financial and other
3 assistance provided by state programs, including, but not limited to,
4 capital development, human resource development, business assistance,
5 job training and job placement shall, consistent with federal law, be
6 given priority over applications submitted by entities not located in
7 empire zones] In consultation with the director of the budget, the
8 commissioner of labor and the commissioner of taxation and finance,
9 establish performance measures for determining the economic and revital-
10 ization impacts of the empire zones program. Establish reporting
11 requirements to evaluate local zone performance in relation to the
12 performance measures and review zone performance with zone boards and
13 zone administrative entities as part of the annual administrative
14 contract process;
15 (g) [Establish a priority for the allocation of authority to issue
16 private activity bonds for the benefit of municipalities and business
17 enterprises located or to be located within empire zones] Request, and
18 shall receive from any state agency or authority such assistance as may
19 be necessary or desirable to assist local empire zone administrative
20 boards with economic and revitalization efforts in the empire zone;
21 (h) [Coordinate, with the local empire zone administrative board and
22 state agencies and authorities, the provision of business development
23 programs and services for each empire zone in order to stimulate the
24 creation and development of new small businesses, including new small
25 minority-owned and women-owned business enterprises, and may request and
26 shall receive from any department, division, board, bureau, commission,
27 agency or public authority of the state such assistance as may be neces-
28 sary] Receive and review a plan submitted by the local empire zone
29 administrative board demonstrating the commitment of local resources
30 addressing workforce training and human resource development in order to
31 match the needs of zone businesses with the residents of the zone commu-
32 nity, increased participation of minority and women-owned businesses
33 within the zones program, technical assistance for small businesses and
34 entrepreneurs located within the zone, increased child care availability
35 within the zone community, and increased access to affordable housing
36 for residents within the zone community;
37 (i) [Coordinate with the comptroller and the commissioner of taxation
38 and finance a linked deposit program. The comptroller and the commis-
39 sioner of taxation and finance are hereby authorized and empowered to
40 enter into agreements with financial institutions located in or serving
41 the empire zones, to provide for the deposit of funds administered
42 jointly by them in such institutions, at reduced rates of return to the
43 state, in return for commitments by such institutions to businesses of
44 loans of comparable amounts, at reduced interest rates, for business
45 development projects in the zones that will create or preserve jobs.]
46 Prepare in conjunction with the department of taxation and finance an
47 annual report to include, but not be limited to, the following informa-
48 tion, derived from the most recent data to the extent that it is avail-
49 able, and in a manner consistent with the secrecy requirements of the
50 tax law:
51 (i) the number of taxpayers claiming each of the tax credits set forth
52 in section nine hundred sixty-six of this article in the state and in
53 each empire zone; and
54 (ii) the total dollar value of each of the tax credits set forth in
55 section nine hundred sixty-six of this article in the state and in each
56 empire zone;
S. 996 33 A. 1926
1 (j) [Assist each local empire zone board in preparing a small business
2 assistance plan as required by section nine hundred sixty-three of this
3 article and coordinate with the local empire zone administrative board
4 and state agencies and authorities the development of small business
5 procurement, export and marketing programs for businesses within the
6 empire zones.] Prepare, or cause to be prepared, an annual report and
7 submit copies to the department of audit and control, department of
8 taxation and finance, the temporary president of the senate, and the
9 speaker of the assembly on or before the thirty-first day of December
10 next succeeding the year to which the report pertains, regarding empire
11 zone activities, including information which would allow for substantive
12 review of the zone's strategies and progress of the zone in meeting its
13 short-term objectives, and an analysis of the extent to which the long-
14 term goals set forth in the empire zone application have been met. The
15 zone administrative entities and other local officials and agencies
16 shall fully cooperate with the commissioner in the annual performance
17 review and in the board's performance of its other duties. Local offi-
18 cials, state agencies, and certified businesses shall provide informa-
19 tion requested by the commissioner which is necessary for such review.
20 Such report shall also include a current description of the specific
21 strategies and priorities for economic revitalization of the zone,
22 including, but not limited to: the number of jobs created; the number of
23 jobs retained; the amount of private capital leveraged with public
24 funds; the number of businesses expanded or retained and new businesses
25 created, and the type of businesses expanded, retained or created, as
26 well as consideration of the improvements in the physical infrastructure
27 of the zone. The commissioner shall promulgate rules and regulations to
28 set forth standards to be used to measure performance against objectives
29 on an annual basis in order to facilitate the requirements of this
30 subdivision;
31 (k) [Review a plan submitted no later than December thirty-first,
32 nineteen hundred eighty-seven, by the urban development corporation and
33 the job development authority, for extending to minority or women-owned
34 contracting companies which are endeavoring to secure work on projects
35 in the zones, surety guarantees assistance and such other assistance as
36 may be required by such firms which currently is unavailable from other
37 sources.] Secure, from an entity independent of the department of
38 economic development, a comprehensive evaluation of the performance of
39 the zones program and of individual zones with respect to accomplishment
40 of the objectives of the zones program and of local empire zone develop-
41 ment plans. Such evaluation shall be completed no later than August
42 first, two thousand eight and be submitted by the department of economic
43 development to the governor, temporary president and majority leader of
44 the senate, and the speaker of the assembly;
45 (l) [Promulgate regulations, in consultation with the commissioner of
46 labor, for program evaluation and coordinate implementation of an evalu-
47 ation system, which is capable of compiling and analyzing accurate and
48 consistent information necessary for an assessment of whether statutory
49 objectives and criteria are being met;
50 (m) Review performance objectives and progress in meeting objectives
51 with zone boards and zone administrative entities as part of the annual
52 administrative contract process;
53 (n) Assist zone boards and zone administrative entities to effect and
54 implement job training and social services agreements and programs
55 provided for in paragraphs (v), (vi) and (vii) of subdivision (b) of
56 section nine hundred sixty-three of this article and request and receive
S. 996 34 A. 1926
1 from any agency or authority of the state such assistance as may be
2 necessary to improve the delivery and coordination of human resource
3 development programs to the zones;
4 (o) Assist zones in increasing their child care capacity and in plan-
5 ning special care activities, including the provision of technical
6 assistance by the department in planning for the provision of child care
7 services in the zones;
8 (p) Coordinate with the department of labor, the state education
9 department, the job training partnership council and agencies of the
10 state the inclusion in annual and biennial plans of such entities strat-
11 egies for increasing and improving human resource development services
12 on a priority basis, consistent with federal statutory and regulatory
13 requirements, to residents of the zones and employees of zone busi-
14 nesses, including, but not limited to, the governor's plan for coordi-
15 nation and special services of the job training partnership council, the
16 jobs plan and Wagner-Peyser annual plan for services of the department
17 of labor, and the career education state plan of the state education
18 department;
19 (q) Arrange with the job training partnership council the provision of
20 job training partnership act funds for use within the zones with the
21 cooperation of the service delivery areas in the governor's plan for
22 coordination and special services;
23 (r) Subject to the availability of funds, arrange for the allocation
24 and reservation of funds from the infrastructure improvement programs of
25 state agencies and authorities to assist the zones to make public
26 improvements necessary for community, commercial, industrial and tourism
27 development projects in support of zone revitalization;
28 (s) Systematically enlist other state agencies and authorities to
29 participate in zone programs and projects and in cooperative planning of
30 interagency zone activities in support of zone revitalization efforts;
31 (t) Recommend for economic development loan and grant programs of the
32 department of economic development, urban development corporation, job
33 development authority, and science and technology foundation special
34 terms and conditions for viable zone projects and programs;
35 (u) Award preference to be given to applications submitted by or on
36 behalf of zones for entrepreneurial assistance programs under article
37 nine of the omnibus economic development act of nineteen hundred eight-
38 y-seven to support the creation of new entrepreneurial development and
39 entrepreneurial support centers;
40 (v) Review a program plan and guidelines submitted by the division of
41 minority and women's business development of the department of economic
42 development no later than March thirty-first, nineteen hundred ninety-
43 four for expedited review of applications by zone businesses for certif-
44 ication as minority or women-owned businesses;
45 (w) Review a program plan and guidelines submitted no later than March
46 thirty-first, nineteen hundred ninety-four by the job development
47 authority for extending to small businesses within the zones, subject to
48 funds availability, guarantees of performance bonds or bid bonds for
49 construction, service and manufacturing contracts with federal, state
50 and local government agencies and authorities, as well as the private
51 sector;
52 (x) Review a program plan submitted by the department of labor no
53 later than March thirty-first, nineteen hundred ninety-four for the
54 establishment by the department of a community service center, to the
55 extent practicable, in or immediately adjacent to each zone;
S. 996 35 A. 1926
1 (y) Coordinate with the urban development corporation the creation of
2 a special category of assistance for zones within the regional economic
3 development partnership program, which will make available economic
4 development assistance grants for zone programs and activities, includ-
5 ing, but not limited to, planning, service coordination, and local
6 institutional capacity building for human resource development necessary
7 for economic revitalization; planning and development of small business
8 incubators; job placement and preparedness programs for zones residents;
9 education and training programs for zone businesses; child care programs
10 and projects supportive of business development; technical assistance
11 for minority and women-owned business development; training for zone
12 officials; business and tourism development and marketing programs; and
13 other innovative programs and activities in support of economic and
14 community development within the zones; and
15 (z) Assist in the development of a plan, in coordination with the
16 health and insurance departments, to assist zones in obtaining afforda-
17 ble employee health insurance for small business enterprises located
18 within the zone.
19 (aa) Jointly certify, pursuant to regulations promulgated pursuant to
20 this article, together with the commissioner of labor, those business
21 enterprises, located in a zone equivalent area, which are eligible to
22 receive the benefits described in subdivision (e) of section nine
23 hundred sixty-six of this article. Such certification shall be consist-
24 ent with the principles set forth in section nine hundred sixty-three of
25 this article with respect to empire zones.
26 (bb) Designate as zone equivalent areas those census tracts and block
27 numbering areas which, as of the nineteen hundred ninety census, satisfy
28 the criteria set forth in subparagraphs (A) and (B) of paragraph (i) of
29 subdivision (a) of section nine hundred fifty-eight of this article.
30 Such designation shall be made, and a list of all such zone equivalent
31 areas shall be promulgated, not later than June thirtieth, nineteen
32 hundred ninety-four.] Certify, for the purposes of paragraph four of
33 subdivision (d) of section fifteen of the tax law, a significant invest-
34 ment made within an empire zone as a qualified empire zone investment
35 pursuant to criteria established in rules and regulations, approved by
36 the director of the budget and promulgated by the commissioner, to
37 include, but not be limited to, the following: investments occurring on
38 or after April first, two thousand five by a qualified empire zone
39 enterprise must be made in a census tract which meets the criteria spec-
40 ified in paragraph (i) of subdivision (a) of section nine hundred
41 fifty-eight of this article or in a targeted area as defined in subdivi-
42 sion (t) of section nine hundred fifty-seven of this article;
43 (m) Certify, for the purposes of paragraph five of subdivision (d) of
44 section fifteen of the tax law, that a business entity is located within
45 a flex acreage agribusiness opportunity empire zone designated pursuant
46 to subdivision (g) of section nine hundred fifty-eight of this article.
47 § 5. Section 960 of the general municipal law, as added by chapter 686
48 of the laws of 1986, subdivisions (b), (c) and (e) as amended by chapter
49 624 of the laws of 1990, paragraph (iii) of subdivision (b) as amended
50 and paragraph (iv) of subdivision (e) as added by chapter 708 of the
51 laws of 1993, paragraph (iv) of subdivision (b) as amended by chapter
52 704 of the laws of 1996, paragraph (v) of subdivision (b) as amended by
53 chapter 492 of the laws of 1999, paragraph (vi) of subdivision (b) as
54 amended by section 3 and paragraphs (vii) and (viii) of subdivision (b)
55 as added by section 4 of part Q of chapter 84 of the laws of 2002, the
56 opening paragraph of paragraph (iv) of subdivision (e) as amended by
S. 996 36 A. 1926
1 chapter 537 of the laws of 1996 and such section as further amended
2 pursuant to section 15 of part GG of chapter 63 of the laws of 2000, is
3 amended to read as follows:
4 § 960. Designation of empire zones. (a) The empire zones designation
5 board is hereby created. Such board shall consist of the commissioner of
6 taxation and finance, the director of the budget, the commissioner of
7 labor and two members to be appointed by the governor; one member to be
8 appointed by the temporary president of the senate; one member to be
9 appointed by the speaker of the assembly; and two non-voting members,
10 one of whom shall be appointed by the minority leader of the senate and
11 one of whom shall be appointed by the minority leader of the assembly.
12 The governor shall designate from among the voting members the [chair-
13 man] chair of the board.
14 (b) The empire zones designation board shall designate empire zones
15 under subdivisions (a), (b), (c) and (d) of section nine hundred fifty-
16 eight of this article from the recommendations made by the commission-
17 er[:
18 (i) Within eighteen months after the effective date of this article,
19 not more than ten empire zones;
20 (ii) In the period commencing eighteen months and ending three years
21 after the effective date of this article, not more than nine additional
22 empire zones until a maximum of nineteen empire zones have been estab-
23 lished statewide;
24 (iii) In the period commencing three years and ending eight years
25 after the effective date of this article, not more than fifteen addi-
26 tional empire zones;
27 (iv) In the period commencing five years and ending nine years and six
28 months after the effective date of this article, not more than six addi-
29 tional empire zones;
30 (v) In the period commencing nine years and six months after the
31 effective date of this article, not more than twelve additional empire
32 zones each which shall contain a defense or military base or facility
33 which has been designated for closure or realignment or a site currently
34 or formerly owned or operated by either the (1) United States military
35 or (2) a defense contractor whose employment in New York state was
36 adversely affected by a reduction in military spending;
37 (vi) In the period commencing thirteen years after the effective date
38 of this article, not more than fourteen additional empire zones, not
39 less than three of which shall be designated pursuant to the criteria
40 set forth in subdivision (d) of section nine hundred fifty-eight of this
41 article;
42 (vii) In the period commencing fifteen years after the effective date
43 of this article, not more than four additional empire zones, all of
44 which shall be designated pursuant to the criteria set forth in subdivi-
45 sions (a), (b), (c) and (d) of section nine hundred fifty-eight of this
46 article;
47 (viii) In the period commencing fifteen years after the effective date
48 of this article, not more than two additional empire zones, all of which
49 shall be designated pursuant to the criteria set forth in subdivisions
50 (a), (b), (c) and (d) of section nine hundred fifty-eight of this arti-
51 cle] upon legislative authorization.
52 (b-1) The commissioner may designate empire zones under subdivision
53 (f) of section nine hundred fifty-eight of this article in consultation
54 with the director of the budget, the commissioner of labor, and local
55 officials.
S. 996 37 A. 1926
1 (b-2) The commissioner may designate empire zones under subdivision
2 (g) of section nine hundred fifty-eight of this article with the concur-
3 rence of the commissioner of agriculture and markets and in consultation
4 with the director of the budget, the commissioner of labor, and local
5 officials.
6 (c) In reviewing applications for designation of an area as an empire
7 zone, the board shall consider the level of local participation includ-
8 ing, but not limited to, local tax incentives and the provision of local
9 services.
10 (d) Notwithstanding any other provision of this article, such zones
11 designated, shall be, as far as practicable, equally distributed between
12 urban, suburban and rural areas.
13 [(e) (i) The department of audit and control, the department of taxa-
14 tion and finance, the department of economic development, and the legis-
15 lative commission on expenditure review shall prepare reports on the
16 management and the economic and fiscal impact of empire zones. The anal-
17 ysis of the fiscal and economic impact of the empire zones shall
18 include, but not be limited to, a review of the cost of providing the
19 tax benefits referred to in section nine hundred sixty-six of this chap-
20 ter and the amount of real property tax increments segregated for
21 infrastructure improvements as authorized by section nine hundred
22 sixty-seven of this chapter. Such reports shall be transmitted to the
23 governor, the legislature and the commission by September first, nine-
24 teen hundred ninety.
25 (ii) A commission, whose maximum duration shall be six months, shall
26 be created to evaluate and recommend whether the program should continue
27 in operation, or whether it should be changed in some manner, or whether
28 the powers of the empire zone designation board to designate zones
29 should be discontinued. The commission shall be composed of seven
30 members, with the chairperson and four other members appointed by the
31 governor, one member appointed by the temporary president of the senate
32 and one member appointed by the speaker of the assembly.
33 (iii) The commission shall report its findings by March first, nine-
34 teen hundred ninety-one, to the governor and the legislature with recom-
35 mendations of changes necessary. Notwithstanding any other provision of
36 law, no further applications for empire zone designation shall be
37 approved by the empire zone designation board created pursuant to this
38 section if the commission report shall have recommended the discontinua-
39 tion of the program.
40 (iv) An entity independent of the department shall conduct and submit
41 to the governor and the legislature by no later than December thirty-
42 first, nineteen hundred ninety-six, a comprehensive evaluation of the
43 performance of the zones program and of individual zones on meeting
44 criteria established pursuant to this section. The criteria by which the
45 empire zones program and individual zones are to be evaluated shall
46 include, but not be limited to, the following:
47 (1) whether quantifiable benefits attributable to the program justify
48 its direct costs to the state and participating localities;
49 (2) whether the program has contributed to the economic revitalization
50 of the zones by stimulating (A) the creation and retention of permanent,
51 full-time, quality private sector jobs; (B) the creation, location and
52 expansion of businesses in the zones; (C) capital and human resource
53 investments by zone businesses and new business development; and (D)
54 public and private investments in zone businesses and economic and
55 community development activities important for economic revitalization;
S. 996 38 A. 1926
1 (3) whether the program has created employment and business develop-
2 ment opportunities for residents of the zones and job training opportu-
3 nities for residents and employees of zone businesses;
4 (4) whether the program has (A) resulted in new and improved local
5 administrative capacity within the zones to plan for and capture econom-
6 ic opportunities and deliver and coordinate economic, community and
7 human resource development services, and (B) increased commitments of
8 local resources to zone revitalization, including support from the busi-
9 ness community;
10 (5) whether the program has stimulated assistance from state, federal
11 and other economic, community and human resource development programs
12 relative to other areas and improved the delivery and coordination of
13 state services to the zones; and
14 (6) whether the program is being managed and evaluated effectively at
15 state and local levels.]
16 § 6. Paragraph (i) of subdivision (a) and paragraph (vi) of subdivi-
17 sion (b) of section 961 of the general municipal law, paragraph (i) of
18 subdivision (a) as added by chapter 686 of the laws of 1986, paragraph
19 (vi) of subdivision (b) as amended by chapter 624 of the laws of 1990
20 and as further amended pursuant to section 15 of part GG of chapter 63
21 of the laws of 2000, are amended to read as follows:
22 (i) a city, town or village shall not be authorized and empowered to
23 apply for designation of an area as an empire zone which is located
24 wholly or partly within [a village] another municipality unless such
25 action is concurred in by the governing body of such [village] munici-
26 pality, and that a county shall not be authorized and empowered to apply
27 for designation of an area as an empire zone unless such action is
28 concurred in by the governing body of each city, town or village in
29 which such zone is located; and
30 (vi) include a statement from the private industry council governing
31 board of the service delivery area established under the [job training
32 partnership act (P.L. 97-300, as amended)] workforce investment act
33 (P.L. 105-220) as a dislocated worker or low-income individual that
34 encompasses the proposed empire zone setting forth the assistance to be
35 provided and the resources to be allocated for the training of residents
36 in the area and the operation of job training programs;
37 § 7. Section 962 of the general municipal law is REPEALED and a new
38 section 962 is added to read as follows:
39 § 962. Empire zone development plan. By December thirty-first, two
40 thousand five, and every three years thereafter, in a form and manner
41 prescribed by the commissioner, each local empire zone administrative
42 board shall prepare and file a zone development plan with the commis-
43 sioner that demonstrates how the empire zone conforms with the land use,
44 economic development and revitalization plan of the applicant.
45 (a) The zone development plan shall include, but shall not be limited
46 to an identification, where applicable, of the specific geographic areas
47 within the applicant community that will be targeted for development or
48 revitalization as the empire zone, which shall include:
49 (i) an assessment of each area's strengths and weaknesses, including a
50 description of how the empire zone benefits can capitalize on each
51 area's strengths and overcome its weaknesses;
52 (ii) a description of the financial commitments which the applicant is
53 prepared to make to the specific geographic areas, including, but not
54 limited to, specific commitments for infrastructure improvements in
55 those areas and a timetable for their completion;
S. 996 39 A. 1926
1 (iii) the types of industries and businesses that will be targeted for
2 location or expansion in each area;
3 (iv) a description of the marketing strategy to be employed by the
4 applicant to promote business development in the areas;
5 (v) a detailed explanation of the land use and economic development
6 objectives of the applicant, including the types of industries and busi-
7 nesses that will be targeted, the basis upon which such objectives were
8 established, how the empire zone will contribute to the objectives, and
9 what commitment of resources has been provided to achieve these objec-
10 tives;
11 (vi) a description of how the applicant will coordinate economic
12 development programs and providers at the local level to develop or
13 revitalize the empire zone;
14 (vii) a description of other activities to be undertaken by municipal
15 agencies, business entities, not-for-profit corporations, community-
16 based organizations, or any other persons, within the applicant communi-
17 ty, which are designed to promote private sector business investment and
18 job development in the empire zone;
19 (viii) a description of the human resource development, job training,
20 child care, and transportation services to be made available to resi-
21 dents of the applicant community in need of such services and how such
22 services will be integrated with business development activities in the
23 empire zone; and
24 (ix) a description of the business development programs and services
25 of the applicant to be available to stimulate the creation of new small
26 businesses in the empire zone, including new small minority and women-
27 owned business enterprises.
28 (b) Prior to being submitted to the commissioner for approval, the
29 empire zone development plan shall be subject to a local public hearing
30 to be held at least thirty days prior to approval of the plan by the
31 governing body of the applicant. Each local zone shall annually submit
32 an updated zone development policy to the commissioner by December thir-
33 ty-first of each year. The zone development policy shall include, but
34 shall not be limited to, specific criteria, derived from and consistent
35 with the zone development plan, to be used for determining what the
36 proposed empire zone boundaries will be for the upcoming year, what
37 types of industries and businesses will be targeted, and thresholds for
38 investments and job creation required for placing zone boundaries around
39 specific businesses.
40 § 8. Subdivision (a), paragraphs (i), (ii), (v), (xi) and (xii) of
41 subdivision (b), the opening paragraph and paragraph (vii) of subdivi-
42 sion (c) and subdivision (d) of section 963 of the general municipal
43 law, subdivision (a) and paragraphs (i), (v), (xi) and (xii) of subdivi-
44 sion (b) as amended by chapter 708 of the laws of 1993, paragraph (ii)
45 of subdivision (b) as amended by chapter 537 of the laws of 1996, the
46 opening paragraph and paragraph (vii) of subdivision (c) as added by
47 chapter 442 of the laws of 1987, subdivision (d) as amended by chapter
48 624 of the laws of 1990 and subdivision (a), paragraphs (ii), (v) and
49 (xii) of subdivision (b), the opening paragraph of subdivision (c) and
50 subdivision (d) as further amended pursuant to section 15 of part GG of
51 chapter 63 of the laws of 2000, are amended to read as follows:
52 (a) The local empire zone [certification officer] coordinator shall
53 not serve on the local empire zone administrative board and shall,
54 pursuant to regulations promulgated pursuant to this article, jointly
55 certify together with the commissioner and the commissioner of labor,
56 those business enterprises eligible to receive benefits referred to in
S. 996 40 A. 1926
1 section nine hundred sixty-six of this article; provided, however, that
2 such certification shall be governed by criteria including, but not
3 limited to, (i) whether the business enterprise, if certified, is
4 reasonably likely to create new employment or prevent a loss of employ-
5 ment in the zone, (ii) whether such new employment opportunities will be
6 for individuals who will perform a substantial part of their employment
7 activities in the zone, (iii) whether certification will have the unde-
8 sired effect of causing individuals to transfer from existing employment
9 with another business enterprise to similar employment with the business
10 enterprise so certified, and transferring existing employment from one
11 or more other municipalities, towns or villages in the state, or trans-
12 ferring existing employment from one or more other businesses in the
13 zone, (iv) whether such enterprise is likely to enhance the economic
14 climate of the zone, [and] (v) whether such business enterprise, during
15 the three years preceding the submission of an application for certif-
16 ication, has engaged in a substantial violation or a pattern of
17 violations of laws regulating unemployment insurance, [workers] workers'
18 compensation, public work, child labor, employment of minorities and
19 women, safety and health, or other laws for the protection of workers as
20 determined by final judgment of a judicial or administrative proceeding,
21 and (vi) whether certification of such business enterprise is consistent
22 with the local empire zone development plan; and provided further,
23 however, that any business enterprise that applies for any tax, utility
24 rate, or management assistance benefits provided by this article shall
25 provide ninety days written notice to the commissioner, the local empire
26 zone [certification officer] coordinator, the local empire zone adminis-
27 trative board and the employees of such business enterprise of any
28 intent to close or partially close a facility within the empire zone.
29 For the purposes of this subdivision, "closing" shall mean the permanent
30 termination of employment at a business facility, and "partial closing"
31 shall mean the permanent termination of a portion of the employment at a
32 business facility that will either immediately reduce the work force by
33 at least fifty employees or will reduce the work force by at least fifty
34 percent over a one-year period.
35 (i) [develop short-term goals for zone activities on an annual basis]
36 submit a plan to the commissioner pursuant to subdivision (h) of section
37 nine hundred fifty-nine of this article;
38 (ii) [prepare, or cause to be prepared, an annual report and submit
39 copies to the department of audit and control, department of taxation
40 and finance, the temporary president of the senate, the speaker of the
41 assembly and department of economic development on or before the first
42 day of July next succeeding the year to which the report pertains,
43 regarding empire zone activities, including information which would
44 allow for substantive review of the zone's strategies and progress of
45 the zone in meeting its short-term objectives, and an analysis of the
46 extent to which the long-term goals set forth in the empire zone appli-
47 cation have been met. The zone administrative entities and other local
48 officials and agencies shall fully cooperate with the zone administra-
49 tive board in the annual performance review and in the board's perform-
50 ance of its other duties. Local officials, state agencies, and certified
51 businesses shall provide information requested by the zone administra-
52 tive board which is necessary for such review. Such report shall also
53 include a current description of the specific strategies and priorities
54 for economic revitalization of the zone, including, but not limited to:
55 the number of jobs created; the number of jobs retained; the amount of
56 private capital leveraged with public funds; the number of businesses
S. 996 41 A. 1926
1 expanded or retained and new businesses created, and the type of busi-
2 nesses expanded, retained or created, as well as consideration of the
3 improvements in the physical infrastructure of the zone. The commission-
4 er shall promulgate rules and regulations to set forth standards to be
5 used to measure performance against objectives on an annual basis in
6 order to facilitate the requirements of this paragraph] submit a plan to
7 the commissioner pursuant to section nine hundred sixty-two of this
8 article;
9 (v) enter into agreements with the commissioners of economic develop-
10 ment, labor, and social services, local departments of social services,
11 and local education agencies as defined in paragraph (b) of subdivision
12 one of section three thousand thirty-two of the education law, local
13 community-based organizations, private employers, labor unions, the
14 administrative entity and private industry council for the service
15 delivery area established under the [job training partnership act (P.L.
16 97-300, as amended)] workforce investment act (P.L. 105-220) as a dislo-
17 cated worker or low-income individual that includes the empire zone, and
18 any other person or state or federal agency for the purpose of estab-
19 lishing, implementing and coordinating job training programs for workers
20 and businesses to be located in an empire zone; provided, however, that
21 (A) any agreement to establish a job training program designed to meet
22 the specific needs of a private employer shall require such employer to
23 retain in its employ for not less than six months an employee who has
24 satisfactorily completed a course of training for a particular job open-
25 ing unless such employee voluntarily leaves such employment or is
26 discharged for misconduct or other good cause; (B) any job training
27 program established pursuant to this section shall make use of the
28 community service division of the labor department as well as other
29 sources for the purpose of recruitment;
30 (xi) in conjunction with zone administrative entities, develop and
31 implement a system for continuous monitoring and evaluation of zone
32 performance at the local level consistent with the guidelines set forth
33 in [subdivisions (l) through (p) of] section nine hundred fifty-nine of
34 this article; and
35 (xii) provide within the zone, or contract with a new or existing
36 community-based local development corporation or entity to provide,
37 strategic economic development planning for the zone, marketing and
38 promotion of the zone, assistance to companies in applying for available
39 benefits, preparation of applications for financing assistance and other
40 technical assistance services; coordination of the delivery of state and
41 local programs within the zones; and operation of such other economic
42 development assistance programs in furtherance of the empire zone devel-
43 opment plan as may be appropriate. Provided, however, within the amount
44 appropriated therefor and allocated by the director of the budget, the
45 commissioner, through annual administrative contracts, shall, to the
46 maximum extent feasible, make equally available financial support,
47 through contracts or other means, to assist with the administrative
48 expenses of the local zone administrative bodies or community-based
49 development organizations. No funds shall be made available for this
50 purpose unless the amount to be provided has been matched by private or
51 governmental sources, other than state sources, in amounts at least
52 equalling that to be provided by the state. Such matching funds shall be
53 earmarked and used exclusively for the local administration of the zone
54 program or for activities of the zone program. At least fifty percent of
55 such matching funds shall be in cash, provided that the commissioner may
56 waive this requirement for communities with populations of twenty-five
S. 996 42 A. 1926
1 thousand or less, and provided, further, that any amounts appropriated
2 for minority and women-owned business development within the zones shall
3 be distributed by the commissioner pursuant to a competitive proposal
4 solicitation process. In the case that no amount is appropriated and
5 allocated by the director of the budget, the local empire zone adminis-
6 trative board may elect by resolution to have the commissioner provide
7 the administrative services of the zone as set forth herein.
8 The empire zone administrative board shall cooperate with the commis-
9 sioner in the production of the annual report of the local empire [zone
10 administrative board] zones required by subdivision [(b)] (j) of [this]
11 section nine hundred fifty-nine of this article which shall include,
12 subject to the tax secrecy provisions referred to in subdivision (d) of
13 this section, [include,] but not be limited to, reporting the following
14 information with respect to the year immediately preceding the year
15 which is the subject of the report:
16 (vii) a statement summarizing all amounts received as, and expendi-
17 tures made from, financial support for administrative expenses pursuant
18 to paragraph [(vii)] (xii) of subdivision (b) of this section; and
19 (d) At the request of any local empire zone administrative board, the
20 department of taxation and finance, the department of economic develop-
21 ment, the public service commission and any municipal corporation within
22 the empire zone shall, to the extent that it possesses any of the infor-
23 mation required by subdivision (c) of this section, and to the extent
24 that such information can be disclosed without violating the secrecy
25 provisions contained in sections two hundred two, two hundred eleven,
26 six hundred ninety-seven, [one thousand one] eleven hundred forty-six,
27 [one thousand two] twelve hundred fifty, [one thousand four] fourteen
28 hundred sixty-seven and [one thousand five] fifteen hundred eighteen of
29 the tax law, provide that information to the local empire zone adminis-
30 trative board for inclusion in [its] the annual report issued by the
31 department of economic development. The amount of any real property
32 taxes required to be set forth in the report pursuant to subdivision (c)
33 of this section shall be computed and furnished to the zone's adminis-
34 trative board by the municipality which levied the tax. The failure of
35 any empire zone administrative board to prepare and submit a report or
36 information as required by [subdivision] subdivisions (b) and (c) of
37 this section shall make the board or other community-based development
38 organization ineligible to receive any financial support for administra-
39 tive expenses authorized by paragraph [(vii)] (xii) of subdivision (b)
40 of this section; provided, however, that such financial assistance shall
41 not be withheld on account of the report's failure to include any infor-
42 mation which is required by subdivision (c) of this section but is not
43 available to the empire zone administrative board.
44 § 9. Section 964 of the general municipal law, as amended by chapter
45 708 of the laws of 1993 and the section heading and subdivisions (a) and
46 (b) as further amended pursuant to section 15 of part GG of chapter 63
47 of the laws of 2000, is amended to read as follows:
48 § 964. Empire zone capital [corporations] credits. (a) [No more than
49 three empire zone capital corporations may be established in each zone
50 for the purpose of raising funds through private and public grants,
51 donations or investments, to be used in making investments in, and loans
52 to, business firms certified pursuant to subdivision (a) of section nine
53 hundred sixty-three of this article for the purpose of encouraging the
54 establishment or expansion of businesses and the provision of additional
55 job opportunities within such area. A zone capital corporation may serve
56 one or more zones within an economic development region or zones within
S. 996 43 A. 1926
1 two or more regions. Prior to the establishment of a zone capital corpo-
2 ration, the zone board and the commissioner of the department of econom-
3 ic development shall approve the formation of the proposed zone capital
4 corporation, its board of directors and management, and its procedures
5 for making, servicing and monitoring investments. In no event, however,
6 shall an empire zone capital corporation acquire an ownership interest
7 in any certified business firm which amounts to more than twenty-five
8 percent of the ownership interest of such certified business firm. No
9 loan to or investment in any business firm shall be made by an empire
10 zone capital corporation located in a zone within a town with a popu-
11 lation of more than twenty-five thousand, until such corporation has
12 accumulated at least two hundred thousand dollars in capital stock. No
13 loan or investment in any business firm shall be made by an empire zone
14 capital corporation located in a zone within a town with a population of
15 less than twenty-five thousand until such corporation has accumulated at
16 least one hundred thousand dollars in capital stock. A zone capital
17 corporation shall submit to the zone board an annual report on its
18 activities.
19 (b) Each zone capital corporation shall establish an investment
20 committee for the purpose of evaluating applications for loans and equi-
21 ty investments. Each committee shall be comprised of members who possess
22 the requisite business and financial expertise necessary to evaluate
23 applications for loans and/or equity investments.
24 (c) Each empire zone capital corporation shall, to the maximum extent
25 feasible, undertake measures and procedures to ensure meaningful partic-
26 ipation by minority-owned and women-owned business enterprises in the
27 activities and investments of such corporation. Each such corporation
28 shall additionally, to the maximum extent feasible, undertake measures
29 and procedures to ensure meaningful participation by locally owned busi-
30 ness enterprises in the activities and investments of such corporation.
31 (d)] The total amount of tax credits available to each zone pursuant
32 to subdivision twenty of section two hundred ten, subsection (l) of
33 section six hundred six, subsection (d) of section fourteen hundred
34 fifty-six and subdivision (h) of section fifteen hundred eleven of the
35 tax law, shall be two million five hundred thousand dollars[, (provided,
36 however, that in no event shall the credits available in any zone exceed
37 five hundred thousand dollars in the case of qualified investments in
38 certified zone businesses as described in such subdivisions and
39 subsections)]. Apportionment of credits within a zone between capital
40 investments in and contributions to zone capital corporations estab-
41 lished prior to January first, two thousand five, direct investments in
42 certified zone businesses or contributions to community development
43 projects will be determined and accounted for by the local zone adminis-
44 trative board in consultation with the zone administrative entity,
45 subject to regulations promulgated by the commissioner [of the depart-
46 ment of economic development]. Credits not used by a zone within four
47 years of their apportionment may, after a public hearing, be reallocated
48 pursuant to regulations promulgated by the commissioner. Certifications
49 under subdivision twenty of section two hundred ten, subsection (l) of
50 section six hundred six, subsection (d) of section fourteen hundred
51 fifty-six and subdivision (h) of section fifteen hundred eleven of the
52 tax law shall be consistent with the provisions of this subdivision.
53 [(e)] (b) The commissioner shall promulgate regulations governing the
54 criteria of eligibility for the tax credits, referred to in subdivision
55 [(d)] (a) of this section, applicable to direct equity investments in
56 certified zone businesses and to contributions to community development
S. 996 44 A. 1926
1 projects provided for in this section. Such regulations shall establish
2 requirements including, but not limited to: (i) a demonstration that the
3 direct equity investment in a certified zone business will contribute,
4 significantly, to an activity having tangible economic benefits, such as
5 start-up, expansion or industrial modernization of such zone business;
6 (ii) a demonstration that the certified zone business has the potential
7 to create jobs; and (iii) a demonstration that the direct equity invest-
8 ment is necessary to increase the amount of capital available to the
9 certified zone business, provided, however, that such investment is not
10 intended nor shall it be used to refinance existing debt or replace
11 existing equity in such zone business.
12 [(f)] (c) In addition to the duties set forth in subdivision (b) of
13 section nine hundred sixty-three of this article, the zone administra-
14 tive board shall, consistent with the regulations promulgated by the
15 commissioner, determine the eligibility of direct equity investments in
16 certified zone businesses and contributions to community development
17 projects for the tax credits, described in subdivision [(d)] (a) of this
18 section, that are available to such zone. Such determination by the zone
19 administrative board shall be subject to review by the commissioner in
20 his or her discretion. The commissioner, upon review of a zone board
21 determination made pursuant to this subdivision, shall accept or reject
22 such determination as may be deemed appropriate.
23 § 10. The opening paragraph and subdivision (e) of section 966 of the
24 general municipal law, as amended by chapter 170 of the laws of 1994 and
25 as further amended pursuant to section 15 of part GG of chapter 63 of
26 the laws of 2000, are amended to read as follows:
27 In addition to the benefits provided for in this article, other bene-
28 fits applicable to empire zones are provided elsewhere in the consol-
29 idated laws, and [benefits are provided in the case of zone equivalent
30 areas, as follows:] include the following:
31 (e) For credits against the taxes imposed under articles nine-A, twen-
32 ty-two, thirty-two and thirty-three of the tax law, based on wages paid
33 to certain employees employed by a business located in an empire zone
34 [or in a zone equivalent area,] see subdivision nineteen of section two
35 hundred ten, subsection (k) of section six hundred six, subsection (e)
36 of section fourteen hundred fifty-six and subdivision (g) of section
37 fifteen hundred eleven, respectively, of the tax law;
38 § 11. Section 969 of the general municipal law, as amended by chapter
39 606 of the laws of 1988, subdivision (a) as amended by section 1 of part
40 O of chapter 60 of the laws of 2004, subdivision (b) as amended by chap-
41 ter 708 of the laws of 1993, the opening paragraph of subdivision (c) as
42 amended by chapter 624 of the laws of 1990, paragraph 2 of subdivision
43 (c) as amended by section 5 and paragraphs 6, 7 and 8 of subdivision (c)
44 as added by section 6 of part Q of chapter 84 of the laws of 2002 and
45 such section as further amended pursuant to section 15 of part GG of
46 chapter 63 of the laws of 2000, is amended to read as follows:
47 § 969. Termination or revision of an empire zone. (a) Except as
48 provided in this section, any designation of an area as an empire zone
49 shall remain in effect during the period beginning on the date of desig-
50 nation and ending March thirty-first, two thousand [five] ten.
51 (b) [After] The commissioner may withhold approval of a joint certif-
52 ication of business enterprises or of empire zone boundary revision
53 requests or, after consultation with the director of the budget and the
54 commissioner of labor, the commissioner may terminate the designation of
55 an area as an empire zone upon a finding that (1) the applicant has
56 failed substantially to implement the empire zone development plan
S. 996 45 A. 1926
1 [within the time stated therein]; (2) there has been no substantial
2 business development or job creation within the area designated as an
3 empire zone [within five years after such designation]; (3) there has
4 been inadequate management and evaluation of the zone at the local
5 level; or (4) the applicant has [repeatedly] failed to comply with
6 program reporting and performance requirements, provided, however, that
7 no termination shall occur unless and until written notice has been
8 given to the applicant and a public hearing has been held thirty days
9 prior to the effective date of such termination.
10 (c) [The governing body of a city, county, town or village] The appli-
11 cant municipalities of empire zones that are in existence on March thir-
12 ty-first, two thousand five shall submit to the commissioner by November
13 first, two thousand five a request to revise the boundaries of the
14 empire zone that would bring the zone into compliance with section nine
15 hundred fifty-eight of this article. Failure to timely submit a complete
16 request for a boundary revision may result in the withholding of
17 approval for joint certification of business enterprises or the termi-
18 nation of empire zone designation by the commissioner. The commissioner
19 may, after consultation with the commissioner of labor, approve such
20 revision subject to the following provisions:
21 (1) The commissioner shall affirm that such revision would not have
22 the effect of producing an empire zone which does not satisfy the crite-
23 ria for empire zone designation established by or pursuant to section
24 nine hundred fifty-eight of this article;
25 (2) The revision of the borders of an empire zone pursuant to this
26 section shall have no effect on the duration of the designation of such
27 empire zone as provided by subdivision (a) of this section;
28 (3) A development plan satisfactory to the commissioner shall be
29 submitted pursuant to section nine hundred sixty-two of this article;
30 (d) If an empire zone area is terminated as a result of subdivision
31 (c) of this section, a business enterprise that is located in such area
32 that was certified pursuant to this article prior to the effective date
33 of the chapter of the laws of two thousand five that added this subdivi-
34 sion shall be deemed to continue to be certified under this article for
35 purposes of sections fourteen, fifteen and sixteen, section one hundred
36 eighty-seven-j, subdivisions twenty-seven and twenty-eight of section
37 two hundred ten, subsections (bb) and (cc) of section six hundred six,
38 subdivision (z) of section eleven hundred fifteen, subsections (o) and
39 (p) of section fourteen hundred fifty-six and subdivisions (r) and (s)
40 of section fifteen hundred eleven of the tax law and shall continue to
41 be subject to all reporting and other requirements of this article;
42 approval by the commissioner of certification applications received by
43 the department of economic development on or after the effective date of
44 the chapter of the laws of two thousand five that added this subdivision
45 and prior to the effective date of the boundary revision required by
46 subdivision (c) of this section shall only be granted upon a finding
47 that such business would be located within the permissible areas as set
48 forth in section nine hundred fifty-eight of this article, or upon a
49 finding by the commissioner that such approval is necessary or desira-
50 ble.
51 (e) Once within a four year period the governing bodies of the appli-
52 cants may, by resolution, submit to the commissioner a request to
53 significantly revise the [boundaries] superboundary or a targeted area
54 of an [existing] empire zone existing pursuant to subdivision (c) of
55 this section and subdivisions (a) through (d) of section nine hundred
56 fifty-eight of this article. The commissioner may, after consultation
S. 996 46 A. 1926
1 with the commissioner of labor, approve such revision subject to the
2 following provisions:
3 (1) Any revision of the [borders] superboundary or targeted area of an
4 empire zone shall be based upon a determination by the commissioner that
5 extraordinary change in circumstances support the need for a substantial
6 change [in circumstances has occurred since the establishment of the
7 existing borders] to the empire zone superboundary or targeted area
8 which makes revision of such [borders] boundary both necessary [or] and
9 desirable under the empire zones development plan.
10 (2) The commissioner shall affirm that such revision would not have
11 the effect of producing an empire zone superboundary or targeted area
12 which does not satisfy the criteria for empire zone superboundary or
13 targeted area designation established by or pursuant to subdivisions (a)
14 and (d) of section nine hundred fifty-eight of this article.
15 (3) The zone administrative board's resolution recommending the
16 revision.
17 (f) Once within a one year period the governing bodies of the appli-
18 cants may, by resolution, submit to the commissioner a request to revise
19 the boundaries of an empire zone area existing pursuant to subdivision
20 (c) of this section and section nine hundred fifty-eight of this arti-
21 cle. If, however, there is a change in circumstances involving extenuat-
22 ing factors within the year (such as the attraction/retention of a major
23 potential/area employer, which is consistent with the zone's development
24 goals) the request will be considered. The commissioner may, after
25 consultation with the commissioner of labor, approve such revision
26 subject to the following provisions:
27 (1) Any revision of the borders of an empire zone area shall be based
28 upon a determination by the commissioner that a change in circumstances
29 support the need for a change to the empire zone area which makes
30 revision of such borders necessary or desirable under the empire zone
31 development plan.
32 (2) The commissioner shall affirm that such revision would not have
33 the effect of producing an empire zone which does not satisfy the crite-
34 ria for empire zone designation established by or pursuant to section
35 nine hundred fifty-eight of this article.
36 (3) The commissioner may grant approval of revision of the borders of
37 an empire zone without prior public notice and without a prior public
38 hearing if such revision adds territory to an existing empire zone, but
39 does not remove territory from such zone.
40 (4) The commissioner may grant approval of a revision of the borders
41 of an empire zone after public notice of such proposed revision and a
42 public hearing at least thirty days prior to the effective date of such
43 revision, if such revision removes territory from an existing empire
44 zone.
45 (5) The revision of the borders of an empire zone shall have no effect
46 on the duration of the designation of such empire zone as provided by
47 subdivision (a) of this section.
48 (6) [Any request to revise the boundaries of an existing empire zone
49 submitted to the commissioner on or after January fifteenth, two thou-
50 sand three shall not result in the final designation of less than seven-
51 ty-five percent of the existing zone's undesignated acreage on or after
52 January fifteenth, two thousand three in more than three noncontiguous
53 areas. Any request by an existing zone to the commissioner for the
54 designation of up to twenty-five percent of the existing zone's remain-
55 ing undesignated acreage on or after January fifteenth, two thousand
56 three shall demonstrate that: the proposed acreage offers a significant
S. 996 47 A. 1926
1 contribution to the economic revitalization of the zone and surrounding
2 area, to include the creation or retention of private sector jobs, or a
3 plan to demonstrate that the capital, human resource, or other invest-
4 ment by businesses located within the proposed acreage will approximate
5 fifty percent of the projected aggregate amount of zone benefits to be
6 received by the certified businesses located within the proposed acreage
7 during the first twelve months following such designation; and that the
8 proposed acreage is serviced, or will be serviced, by public transporta-
9 tion available to zone or community residents, or other prospective
10 employees, in those zones where a public transportation system already
11 exists and where such service is economically feasible; but only after
12 public notice of such proposed revision and a public hearing at least
13 thirty days prior to the effective date of such revision. Provided,
14 however, if an existing zone demonstrates that a project which will
15 enhance the economic revitalization of the zone and benefit zone resi-
16 dents cannot be included within one of the three noncontiguous areas,
17 and upon the commissioner's determination that inclusion of such addi-
18 tional noncontiguous lands poses significant potential for economic
19 development, to include job creation of no less than three hundred new
20 jobs, more than twenty-five percent of the existing zone's undesignated
21 acreage on or after January fifteenth, two thousand three can be used in
22 more than three noncontiguous areas, but only after public notice of
23 such proposed revision and a public hearing at least thirty days prior
24 to the effective date of such revision.
25 (7) Any request to revise the boundaries of a new empire zone submit-
26 ted to the commissioner shall not result in the final designation of
27 less than seventy-five percent of the new zone's undesignated acreage in
28 more than three noncontiguous areas. Any request by a new zone to the
29 commissioner for the designation of up to twenty-five percent of the new
30 zone's remaining undesignated acreage shall demonstrate that: the
31 proposed acreage offers a significant contribution to the economic revi-
32 talization of the zone and surrounding area, to include the creation or
33 retention of private sector jobs, or a plan to demonstrate that the
34 capital, human resource, or other investment by businesses located with-
35 in the proposed acreage will approximate fifty percent of the projected
36 aggregate amount of zone benefits to be received by the certified busi-
37 nesses located within the proposed acreage during the first twelve
38 months following such designation; and that the proposed acreage is
39 serviced, or will be serviced, by public transportation available to
40 zone or community residents, or other prospective employees, in those
41 zones where a public transportation system already exists and where such
42 service is economically feasible; but only after public notice of such
43 proposed revision and a public hearing at least thirty days prior to the
44 effective date of such revision. Provided, however, if a new zone demon-
45 strates that a project which will enhance the economic revitalization of
46 the zone and benefit zone residents cannot be included within one of the
47 three noncontiguous areas, and upon the commissioner's determination
48 that inclusion of such additional noncontiguous lands poses significant
49 potential for economic development, to include job creation of no less
50 than three hundred new jobs, more than twenty-five percent of the new
51 zone's undesignated acreage can be used in more than three noncontiguous
52 areas, but only after public notice of such proposed revision and a
53 public hearing at least thirty days prior to the effective date of such
54 revision.
55 (8) It is the policy to allow each zone no more than one boundary
56 amendment within a twelve month period. If, however, there is a change
S. 996 48 A. 1926
1 in circumstances involving extenuating factors within the year (such as
2 the attraction/retention of a major potential/area employer, which is
3 consistent with the zone's development goals), the request will be
4 considered] A demonstration that such proposed change is consistent with
5 the development plan and meets the criteria for empire zone designation
6 established by or pursuant to section nine hundred fifty-eight of this
7 article shall be submitted by the local empire zone.
8 (7) Resolutions from municipalities to which land is being added or
9 removed, concurring in the applicant municipality's proposed boundary
10 revision.
11 (8) The zone administrative board's resolution recommending the
12 revision.
13 (9) The applicant municipality's local law amending the legal
14 description of the zone boundaries.
15 [(d)] (g) Upon the termination or revision of the borders of an empire
16 zone as provided in this section, the commissioner shall file notice of
17 such action as required by section nine hundred fifty-nine of this arti-
18 cle.
19 § 12. Subdivisions (a), (b), (c), (g) and (j) of section 14 of the tax
20 law, subdivisions (a), (b), (c) and (g) as amended by section 10 of part
21 CC of chapter 85 of the laws of 2002 and subdivision (j) as amended by
22 section 1 of part C of chapter 209 of the laws of 2004, are amended to
23 read as follows:
24 (a) Qualified empire zone enterprise. A business enterprise which is
25 certified under article eighteen-B of the general municipal law [prior
26 to July first, two thousand five] and meets the employment test shall be
27 a "qualified empire zone enterprise":
28 (1) for purposes of section one hundred eighty-seven-j and articles
29 nine-A, twenty-two, thirty-two and thirty-three of this chapter, for
30 each of the taxable years within the "business tax benefit period,"
31 which period shall consist of (A) in the case of a business enterprise
32 with a test date occurring on or before December thirty-first, two thou-
33 sand one, the first fifteen taxable years beginning on or after January
34 first, two thousand one, [and] (B) in the case of a business enterprise
35 with a test date occurring on or after January first, two thousand two,
36 but prior to April first, two thousand five, the fifteen taxable years
37 next following the business enterprise's test year, and (C) in the case
38 of a business enterprise which is first certified under article eigh-
39 teen-B of the general municipal law on or after April first, two thou-
40 sand five, the ten taxable years starting with the taxable year in which
41 the business enterprise's first date of certification under article
42 eighteen-B of the general municipal law occurs, but only with respect to
43 each of such [fifteen] business tax benefit period years for which the
44 employment test is met, and
45 (2) for purposes of articles twenty-eight and twenty-nine of this
46 chapter, during the "sales and use tax benefit period." Such period
47 shall consist of one hundred twenty consecutive months beginning on the
48 later of (A) March first, two thousand one, or (B) the first day of the
49 month next following the date of issuance of a qualified empire zone
50 enterprise certification by the commissioner under subdivision (h) of
51 this section. Provided however, such period shall not include any month
52 falling within a taxable year immediately preceded by a taxable year
53 with respect to which the business enterprise did not meet the employ-
54 ment test.
55 (b) Employment test.
S. 996 49 A. 1926
1 (1) General. [The] Except as provided under paragraphs four and five
2 of this subdivision, in the case of a business enterprise which is first
3 certified under article eighteen-B of the general municipal law before
4 April first, two thousand five, the employment test shall be met with
5 respect to a taxable year if the business enterprise's employment number
6 in the empire zones for such taxable year equals or exceeds its employ-
7 ment number in such zones for the base period, and its employment number
8 in the state outside of such zones for such taxable year equals or
9 exceeds its employment number in the state outside of such zones for the
10 base period. If the base period is zero years and the enterprise has an
11 employment number in such zone of greater than zero with respect to a
12 taxable year, then the employment test will be met only if the enter-
13 prise qualifies as a new business under subdivision (j) of this section.
14 (2) Change in zone boundaries or newly designated zones. Provided,
15 however, where there has been one or more revisions of the boundaries of
16 an empire zone that resulted in the inclusion of the business enterprise
17 within such zone, the employment test shall be determined with respect
18 to a taxable year as if the boundaries of the revised zone on the last
19 day of the taxable year existed during the base period and test year and
20 as if the enterprise had been located in the revised zone during its
21 base period and test year. In addition, where an area has been newly
22 designated as an empire zone, the employment test shall be determined
23 with respect to a taxable year as if such newly designated zone existed
24 during the base period and test year and as if the enterprise had been
25 located in the newly designated zone during its base period and test
26 year.
27 (3) Relocation from a business incubator facility. Where a business
28 enterprise relocates to an empire zone from a business incubator facili-
29 ty operated by a municipality or by a public or private not-for-profit
30 entity which provides space or business support services or both space
31 and business support services to newly established enterprises, the
32 employment test shall be determined with respect to a taxable year as if
33 such business enterprise was located in the empire zone during the base
34 period.
35 (4) In the case of a business enterprise which (A) is first certified
36 under article eighteen-B of the general municipal law on or after April
37 first, two thousand five, or (B) is first certified under such article
38 eighteen-B before April first, two thousand five and has a base period
39 of zero years, or (C) is an electric generating facility which was first
40 certified under such article eighteen-B before April first, two thousand
41 five, or (D) is first certified under such article eighteen-B before
42 April first, two thousand five and is principally engaged in the busi-
43 ness of owning real property or of owning and managing real property,
44 the employment test shall be met with respect to a taxable year if the
45 business enterprise's employment number in the state and the empire
46 zones for such taxable year exceeds its employment number in the state
47 and the empire zones, respectively, for the base period.
48 (5) For purposes of the sales and use tax benefit period, in the case
49 of a business enterprise which is first certified under article eigh-
50 teen-B of the general municipal law on or after April first, two thou-
51 sand five, and is so certified during its first taxable year, the
52 employment test shall be met with respect to such first taxable year in
53 any month in which its employment number exceeds zero.
54 (c) Base period. [The] (1) Except as provided in paragraphs two and
55 three of this subdivision, in the case of a business enterprise which is
56 first certified under article eighteen-B of the general municipal law
S. 996 50 A. 1926
1 before April first, two thousand five, the term "base period" means the
2 five taxable years immediately preceding the test year. If the business
3 enterprise has fewer than five such years, then the term "base period"
4 means such smaller set of years.
5 (2) In the case of a business enterprise which (A) is first certified
6 under article eighteen-B of the general municipal law on or after April
7 first, two thousand five, or (B) is first certified under such article
8 eighteen-B before April first, two thousand five and, at the time it is
9 first certified, has a base period of zero years, or (C) is an electric
10 generating facility which was first certified under such article eigh-
11 teen-B before April first, two thousand five, or (D) is first certified
12 under such article eighteen-B before April first, two thousand five and
13 is principally engaged in the business of owning real property or of
14 owning and managing real property, the term "base period" means the four
15 taxable years immediately preceding the taxable year in which the busi-
16 ness enterprise was first certified under article eighteen-B of the
17 general municipal law. If the business enterprise has fewer than four
18 such years, then the term "base period" means such smaller set of years.
19 (3) For purposes of the sales and use tax benefit period, in the case
20 of a business enterprise which is first certified under article eigh-
21 teen-B of the general municipal law on or after April first, two thou-
22 sand five, the term "base period" means the three taxable years imme-
23 diately preceding the business enterprise's test year. For this purpose,
24 the definitions set forth in subdivisions (d) and (e) of this section
25 shall apply. However, the definition of the term "test date" in subdivi-
26 sion (e) shall be read as if the words "prior to July first, two thou-
27 sand five" were omitted from such definition.
28 (g) Employment number. The term "employment number" shall mean the
29 average number of individuals, excluding general executive officers (in
30 the case of a corporation), employed full-time by the enterprise for at
31 least one-half of the taxable year. Such number shall be computed by
32 determining the number of such individuals employed by the taxpayer on
33 the thirty-first day of March, the thirtieth day of June, the thirtieth
34 day of September and the thirty-first day of December during the appli-
35 cable taxable year, adding together the number of such individuals
36 determined to be so employed on each of such dates and dividing the sum
37 so obtained by the number of such dates occurring within such applicable
38 taxable year. Such number shall not include individuals employed within
39 the state within the immediately preceding sixty months by a related
40 person to the QEZE, as such term "related person" is defined in subpara-
41 graph (c) of paragraph three of subsection (b) of section four hundred
42 sixty-five of the internal revenue code. For this purpose, a "related
43 person" shall include an entity which would have qualified as a "related
44 person" to the QEZE if it had not been dissolved, liquidated, merged
45 with another entity or otherwise ceased to exist or operate.
46 [(j)] (k) If the designation of an area as an empire zone is no longer
47 in effect because section nine hundred sixty-nine of the general munici-
48 pal law was not amended to extend the effective date of such designation
49 so that the designations of all empire zones pursuant to article eigh-
50 teen-B of the general municipal law have expired, a business enterprise
51 that was certified pursuant to article eighteen-B of the general munici-
52 pal law on the day immediately preceding the day on which such desig-
53 nation expired shall be deemed to continue to be certified under such
54 article eighteen-B for purposes of this section, and sections fifteen,
55 sixteen, section one hundred eighty-seven-j, subdivisions twenty-seven
56 and twenty-eight of section two hundred ten, subsections (bb) and (cc)
S. 996 51 A. 1926
1 of section six hundred six, subdivision (z) of section eleven hundred
2 fifteen, subsections (o) and (p) of section fourteen hundred fifty-six,
3 and subdivisions (r) and (s) of section fifteen hundred eleven of this
4 chapter. In addition, if the designation of an area as an empire zone is
5 no longer in effect because section nine hundred sixty-nine of the
6 general municipal law was not amended to extend the effective date of
7 such designation so that the designations of all empire zones pursuant
8 to article eighteen-B of the general municipal law have expired, all
9 references to empire zones in the provisions of this chapter listed in
10 the previous sentence shall be read as meaning areas designated as
11 empire zones on the day immediately preceding the day on which such
12 designation expired.
13 § 13. Section 15 of the tax law, as added by section 2 of part GG of
14 chapter 63 of the laws of 2000, subdivision (b) as amended by section
15 11, subdivisions (d) and (e) as amended by section 12, subdivisions (f)
16 and (g) as added and subdivision (h) as relettered by section 13 of part
17 CC of chapter 85 of the laws of 2002, is amended to read as follows:
18 § 15. QEZE credit for real property taxes. (a) Allowance of credit. A
19 taxpayer which is a qualified empire zone enterprise (QEZE), or which is
20 a sole proprietor of a QEZE or a member of a partnership which is a
21 QEZE, and which is subject to tax under section one hundred eighty-five
22 or article nine-A, twenty-two, thirty-two or thirty-three of this chap-
23 ter, shall be allowed a credit against such tax, pursuant to the
24 provisions referenced in subdivision [(f)] (h) of this section, for
25 eligible real property taxes.
26 (b) Amount of credit. The amount of the credit shall be the product
27 (or pro rata share of the product, in the case of a member of a partner-
28 ship) of (i) the benefit period factor, (ii) the employment increase
29 factor and (iii) the eligible real property taxes paid [or incurred] by
30 the QEZE during the taxable year. However, the amount of the credit may
31 not exceed the credit limitation set forth in subdivision (f) of this
32 section.
33 (c) Benefit period factor. The benefit period factors are set forth
34 in the following table:
35 Taxable year of the benefit period: Benefit period factor:
36 1 - 10 1.0
37 11 .8
38 12 .6
39 13 .4
40 14 .2
41 15 0
42 (d) Employment increase factor. [The] (1) Except as provided in para-
43 graph three of this subdivision, in the case of a business enterprise
44 which is first certified under article eighteen-B of the general munici-
45 pal law before April first, two thousand five, the employment increase
46 factor is the amount, not to exceed 1.0, which is the greater of:
47 [(1)] (A) the excess of the QEZE's employment number in the empire
48 zones with respect to which the QEZE is certified pursuant to article
49 eighteen-B of the general municipal law for the taxable year, over the
50 QEZE's test year employment number in such zones, divided by such test
51 year employment number in such zones; or
52 [(2)] (B) the excess of the QEZE's employment number in such zones for
53 the taxable year over the QEZE's test year employment number in such
54 zones, divided by 100.
S. 996 52 A. 1926
1 [(3)] (2) For purposes of subparagraph (A) of paragraph one of this
2 subdivision, where there is an excess as described in such [paragraph]
3 subparagraph, and where the test year employment number is zero, then
4 the QEZE's employment increase factor shall be 1.0.
5 (3) In the case of a business enterprise which (A) is first certified
6 under article eighteen-B of the general municipal law on or after April
7 first, two thousand five, or (B) is first certified under such article
8 eighteen-B before April first, two thousand five and, at the time it is
9 first certified, has a base period of zero years, or (C) is an electric
10 generating facility which was first certified under such article eigh-
11 teen-B before April first, two thousand five, or (D) is first certified
12 under such article eighteen-B before April first, two thousand five and
13 is principally engaged in the business of owning real property or of
14 owning and managing real property, the employment increase factor is the
15 amount, not to exceed 1.0, which is the excess of the QEZE's employment
16 number in the empire zones with respect to which the QEZE is certified
17 pursuant to article eighteen-B of the general municipal law for the
18 taxable year over the QEZE's employment number for the base period in
19 such zones, divided by 100. Under this paragraph for purposes of deter-
20 mining the QEZE's employment number in the empire zones with respect to
21 which the QEZE is certified for the taxable year, such number shall not
22 include individuals employed within the state but outside such zones
23 within the preceding sixty months by the QEZE or by a related person, as
24 such term is defined in subdivision (g) of section fourteen of this
25 article, to the QEZE.
26 (4) For purposes of this subdivision, where the commissioner of
27 economic development certifies that the QEZE has made an investment that
28 qualifies as a qualified empire zone investment pursuant to section nine
29 hundred fifty-nine of the general municipal law, then the QEZE's employ-
30 ment increase factor shall be 1.0. In this situation, the QEZE shall be
31 required to submit proof to the department that the commissioner of
32 economic development has made such certification.
33 (5) For the purposes of this subdivision, where the commissioner of
34 economic development certifies that the QEZE is located within a flex
35 acreage agribusiness opportunity empire zone designated pursuant to
36 subdivision (g) of section nine hundred fifty-eight of the general
37 municipal law, then the QEZE's employment increase factor shall be 1.0.
38 In this situation, the QEZE shall be required to submit proof to the
39 department that the commissioner of economic development has made such
40 certification.
41 (e) Eligible real property taxes. The term "eligible real property
42 taxes" means taxes imposed on real property which is owned by the QEZE
43 and located in an empire zone with respect to which the QEZE is certi-
44 fied pursuant to article eighteen-B of the general municipal law,
45 provided such taxes are paid by the QEZE which is the owner of the real
46 property and such taxes become a lien on the real property during a
47 taxable year in which the owner of the real property is both certified
48 pursuant to article eighteen-B of the general municipal law and a quali-
49 fied empire zone enterprise. In addition, "eligible real property
50 taxes" shall include taxes paid by a QEZE which is a lessee of real
51 property if the following conditions are satisfied: (1) the taxes must
52 be paid by the lessee pursuant to explicit requirements in a written
53 lease, (2) such taxes become a lien on the real property during a taxa-
54 ble year in which the lessee of the real property is both certified
55 pursuant to article eighteen-B of the general municipal law and a quali-
56 fied empire zone enterprise, and (3) the lessee has made direct payment
S. 996 53 A. 1926
1 of such taxes to the taxing authority and has received a receipt for
2 such payment of taxes from the taxing authority. In addition, the term
3 "eligible real property taxes" includes payments in lieu of taxes made
4 by the QEZE to the state, a municipal corporation or a public benefit
5 corporation pursuant to a written agreement entered into between the
6 QEZE and the state, municipal corporation, or public benefit corpo-
7 ration. Provided, however, a payment in lieu of taxes made by the QEZE
8 pursuant to a written agreement executed or amended on or after January
9 first, two thousand one, shall not constitute eligible real property
10 taxes [unless such written agreement is approved by both the department
11 of economic development and the office of real property services as
12 satisfying generally accepted and recognized norms and standards of real
13 property tax appraisals] in any taxable year to the extent that such
14 payment exceeds the product of (A) the greater of (i) the basis for
15 federal income tax purposes, determined on the later of January first,
16 two thousand one or the effective date of the QEZE's certification
17 pursuant to article eighteen-B of the general municipal law of real
18 property, including buildings and structural components of buildings,
19 owned by the QEZE and located in empire zones with respect to which the
20 QEZE is certified pursuant to such article eighteen-B of the general
21 municipal law, or (ii) the basis for federal income tax purposes of such
22 real property described in clause (i) of this subparagraph on the last
23 day of the taxable year, and (B) the estimated effective full value tax
24 rate within the county in which such property is located, as most
25 recently reported to the commissioner by the secretary of the state
26 board of real property services, or his or her designee. The state board
27 shall annually calculate estimated effective full value tax rates within
28 each county for this purpose based upon the most current information
29 available to it in relation to county, city, town, village and school
30 district taxes.
31 (f) The credit limitation shall be the greater of the employment
32 increase limitation or the capital investment limitation.
33 (1) [The] (A) Except as provided in subparagraph (B) of this para-
34 graph, in the case of a business enterprise which is first certified
35 under article eighteen-B of the general municipal law before April
36 first, two thousand five, the employment increase limitation shall be
37 the product of [(A)] (i) ten thousand dollars and [(B)] (ii) the excess
38 of the QEZE's employment number in the empire zones with respect to
39 which the QEZE is certified pursuant to article eighteen-B of the gener-
40 al municipal law for the taxable year, over the QEZE's test year employ-
41 ment number in such zones.
42 (B) In the case of a business enterprise which (i) is first certified
43 under article eighteen-B of the general municipal law on or after April
44 first, two thousand five, or (ii) is first certified under such article
45 eighteen-B before April first, two thousand five and has a base period
46 of zero years, or (iii) any electric generating facility which was first
47 certified under such article eighteen-B before April first, two thousand
48 five, or (iv) is first certified under such article eighteen-B before
49 April first, two thousand five and is principally engaged in the busi-
50 ness of owning real property or of owning and managing real property,
51 the employment increase limitation shall be the product of (I) ten thou-
52 sand dollars and (II) the excess of the QEZE's employment number in the
53 empire zones with respect to which the QEZE is certified pursuant to
54 article eighteen-B of the general municipal law for the taxable year,
55 over the QEZE's base period employment number in such zones. Under this
56 subparagraph, for purposes of determining the QEZE's employment number
S. 996 54 A. 1926
1 in the empire zones with respect to which the QEZE is certified for the
2 taxable year, such number shall not include individuals employed within
3 the state but outside such zones within the preceding sixty months by
4 the QEZE or by a related person, as such term is defined in subdivision
5 (g) of section fourteen of this article, to the QEZE.
6 (2) The capital investment limitation shall be the product of (A) ten
7 percent of the greater of (i) the [cost or other] basis for federal
8 income tax purposes, determined on the later of January first, two thou-
9 sand one or the effective date of the QEZE's certification pursuant to
10 article eighteen-B of the general municipal law, of real property,
11 including buildings and structural components of buildings, owned by the
12 QEZE and located in empire zones with respect to which the QEZE is
13 certified pursuant to such article eighteen-B of the general municipal
14 law, or (ii) the [cost or other] basis for federal income tax purposes
15 of such real property described in clause (i) of this subparagraph on
16 the last day of the taxable year, and (B) the greater of (i) the
17 percentage of such real property described in clause (i) of subparagraph
18 (A) of this paragraph which is physically occupied and used by the QEZE
19 or by a related person to the QEZE, as the term "related person" is
20 defined in subparagraph (c) of paragraph three of subsection (b) of
21 section four hundred sixty-five of the internal revenue code, or (ii)
22 the percentage of such [cost or other] basis which is attributable to
23 the construction, expansion or rehabilitation of such property, rather
24 than the acquisition of such real property, by the QEZE. Provided,
25 however, if the percentage of such [cost or other] basis, which is
26 attributable to the construction, expansion or rehabilitation of such
27 real property equals or exceeds fifty percent, then the percentage
28 described in clause (ii) of subparagraph (B) of this paragraph shall be
29 deemed to be one hundred percent.
30 (3) In the case of a QEZE whose eligible real property taxes are those
31 taxes paid pursuant to the terms of a lease, the capital investment
32 limitation shall not apply and the credit limitation shall be the
33 employment increase limitation.
34 (4) Notwithstanding any provision to the contrary, the credit limita-
35 tion shall not be applicable to any business enterprise which is certi-
36 fied pursuant to subdivision (m) of section nine hundred fifty-nine of
37 the general municipal law.
38 (g) Credit recapture. Where a QEZE's eligible real property taxes
39 which were the basis for the allowance of the credit provided for under
40 this section are subsequently reduced as a result of a final order in
41 any proceeding under article seven of the real property tax law or other
42 provision of law, the taxpayer shall add back, in the taxable year in
43 which such final order is issued, the excess of (1) the amount of credit
44 originally allowed for a taxable year over (2) the amount of credit
45 determined based upon the reduced eligible real property taxes. If such
46 final order reduces real property taxes for more than one year, the
47 taxpayer must determine how much of such reduction is attributable to
48 each year covered by such final order and calculate the amount of credit
49 which is required by this [subsection] subdivision to be recaptured for
50 each year based on such reduction.
51 (h) Definitions and cross-references. For definitions of terms used in
52 this section see section fourteen of this article. For application of
53 the credit provided for in this section, see the following provisions of
54 this chapter:
55 (1) Article 9: Section 187-j.
56 (2) Article 9-A: Section 210: subdivision 27.
S. 996 55 A. 1926
1 [(2)] (3) Article 22: Section 606: subsections (i) and (bb).
2 [(3)] (4) Article 32: Section 1456: subsection (o).
3 [(4)] (5) Article 33: Section 1511: subdivision (r).
4 § 14. Subparagraph 2 of paragraph (b) of subdivision 19 of section 210
5 of the tax law, as amended by chapter 624 of the laws of 1990 and as
6 further amended pursuant to section 15 of part GG of chapter 63 of the
7 laws of 2000, is amended to read as follows:
8 (2) "Targeted employee" means a New York resident who receives empire
9 zone wages and who is (A) an eligible individual under the provisions of
10 the targeted jobs tax credit (section fifty-one of the internal revenue
11 code), (B) eligible for benefits under the provisions of the [job train-
12 ing partnership] workforce investment act as a dislocated worker or
13 low-income individual (P.L. [97-300] 105-220, as amended), (C) a recipi-
14 ent of public assistance benefits or (D) an individual whose income is
15 below [he] the most recently established poverty rate promulgated by the
16 United States department of commerce, or a member of a family whose
17 family income is below the most recently established poverty rate
18 promulgated by the appropriate federal agency.
19 § 15. The second undesignated paragraph of paragraph (c) of subdivi-
20 sion 19 of section 210 of the tax law, as amended by section 14-a of
21 part CC of chapter 85 of the laws of 2002, is amended to read as
22 follows:
23 The credit shall be allowed only with respect to the first taxable
24 year during which payments of empire zone wages are made and the condi-
25 tions set forth in this paragraph are satisfied, and with respect to
26 each of the four taxable years next following (but only, with respect to
27 each of such years, if such conditions are satisfied), in accordance
28 with paragraph (d) of this subdivision. Subsequent certifications of the
29 taxpayer pursuant to article eighteen-B of the general municipal law, at
30 the same or a different location in the same empire zone or zone equiv-
31 alent area or at a location in a different empire zone or zone equiv-
32 alent area, shall not extend the five taxable year time limitation on
33 the allowance of the credit set forth in the preceding sentence.
34 Provided, further, however, that no credit shall be allowed with respect
35 to any taxable year beginning more than four years following the taxable
36 year in which designation as an empire zone expired or more than ten
37 years after the designation as a zone equivalent area. Notwithstanding
38 the previous sentence, a taxpayer which has been certified under article
39 eighteen-B of the general municipal law in a zone equivalent area prior
40 to June thirteenth, two thousand four shall be allowed a credit under
41 this subdivision for a total of five consecutive taxable years, provided
42 that payments of empire zone wages are made and the conditions set forth
43 in this paragraph are satisfied in each of those years.
44 § 16. Subparagraph 3 of paragraph (d) of subdivision 19 of section 210
45 of the tax law, as added by section 15 of part CC of chapter 85 of the
46 laws of 2002, is amended to read as follows:
47 (3) For purposes of calculating the amount of the credit, individuals
48 employed within an empire zone or zone equivalent area within the imme-
49 diately preceding sixty months by a related person, as such term is
50 defined in subparagraph (c) of paragraph three of subsection (b) of
51 section four hundred sixty-five of the internal revenue code, shall not
52 be included in the average number of individuals described in subpara-
53 graph one or subparagraph two of this paragraph, unless such related
54 person was never allowed a credit under this subdivision with respect to
55 such employees. For the purposes of this subparagraph, a "related
56 person" shall include an entity which would have qualified as a "related
S. 996 56 A. 1926
1 person" to the taxpayer if it had not been dissolved, liquidated, merged
2 with another entity or otherwise ceased to exist or operate.
3 § 17. Paragraph (a) of subdivision 20 of section 210 of the tax law,
4 as amended by chapter 708 of the laws of 1993 and as further amended
5 pursuant to section 15 of part GG of chapter 63 of the laws of 2000, is
6 amended to read as follows:
7 (a) A taxpayer shall be allowed a credit against the tax imposed by
8 this article. The amount of the credit shall be equal to twenty-five
9 percent of the sum of the following investments and contributions made
10 during the taxable year and certified by the commissioner of economic
11 development: (1) for taxable years beginning before January first, two
12 thousand five, qualified investments made in, or contributions in the
13 form of donations made to, one or more empire zone capital [corpo-
14 rations] credits established pursuant to section nine hundred sixty-four
15 of the general municipal law prior to January first, two-thousand five,
16 (2) qualified investments in certified zone businesses which during the
17 twelve month period immediately preceding the month in which such
18 investment is made employed full-time within the state an average number
19 of individuals, excluding general executive officers, of two hundred
20 fifty or fewer, computed pursuant to the provisions of subparagraph
21 three of paragraph (b) of subdivision nineteen of this section, except
22 for investments made by or on behalf of an owner of the business,
23 including, but not limited to, a stockholder, partner or sole proprie-
24 tor, or any related person, as defined in subparagraph (C) of paragraph
25 three of subsection (b) of section four hundred sixty-five of the inter-
26 nal revenue code, and (3) contributions of money to community develop-
27 ment projects as defined in regulations promulgated by the commissioner
28 of economic development. "Qualified investments" means the contribution
29 of property to a corporation in exchange for original issue capital
30 stock or other ownership interest, the contribution of property to a
31 partnership in exchange for an interest in the partnership, and similar
32 contributions in the case of a business entity not in corporate or part-
33 nership form in exchange for an ownership interest in such entity. The
34 total amount of credit allowable to a taxpayer under this provision for
35 all years, taken in the aggregate, shall not exceed three hundred thou-
36 sand dollars, and shall not exceed one hundred thousand dollars with
37 respect to the investments and contributions described in each of
38 subparagraphs one, two and three of this paragraph.
39 § 18. The opening paragraph of subparagraph (B) of paragraph 2 of
40 subsection (k) of section 606 of the tax law, as amended by chapter 170
41 of the laws of 1994, and as further amended pursuant to section 15 of
42 part GG of chapter 63 of the laws of 2000, is amended to read as
43 follows:
44 "Targeted employee" means a New York resident who receives empire zone
45 wages and who is (i) an eligible individual under the provisions of the
46 targeted jobs tax credit (section fifty-one of the internal revenue
47 code), (ii) eligible for benefits under the provisions of the [job
48 training partnership] workforce investment act as a dislocated worker or
49 low-income individual (P.L. [97-300] 105-220, as amended), (iii) a
50 recipient of public assistance benefits or (iv) an individual whose
51 income is below the most recently established poverty rate promulgated
52 by the United States department of commerce, or a member of a family
53 whose family income is below the most recently established poverty rate
54 promulgated by the appropriate federal agency.
S. 996 57 A. 1926
1 § 19. The second undesignated paragraph of paragraph 3 of subsection
2 (k) of section 606 of the tax law, as amended by section 15-a of part CC
3 of chapter 85 of the laws of 2002, is amended to read as follows:
4 The credit shall be allowed only with respect to the first taxable
5 year during which payments of empire zone wages are made and the condi-
6 tions set forth in this paragraph are satisfied, and with respect to
7 each of the four taxable years next following (but only, with respect to
8 each of such years, if such conditions are satisfied), in accordance
9 with paragraph four of this subsection. Subsequent certifications of the
10 taxpayer pursuant to article eighteen-B of the general municipal law, at
11 the same or a different location in the same empire zone or zone equiv-
12 alent area or at a location in a different empire zone or zone equiv-
13 alent area, shall not extend the five taxable year time limitation on
14 the allowance of the credit set forth in the preceding sentence.
15 Provided, further, however, that no credit shall be allowed with respect
16 to any taxable year beginning more than four years following the taxable
17 year in which designation as an empire zone expired or more than ten
18 years after the designation as a zone equivalent area. Notwithstanding
19 the previous sentence, a taxpayer who has been certified under article
20 eighteen-B of the general municipal law in a zone equivalent area prior
21 to June thirteenth, two thousand four shall be allowed a credit under
22 this subsection for a total of five consecutive taxable years, provided
23 that payments of empire zone wages are made and the conditions set forth
24 in this paragraph are satisfied in each of those years.
25 § 20. Subparagraph (iii) of paragraph 4 of subsection (k) of section
26 606 of the tax law, as added by section 16 of part CC of chapter 85 of
27 the laws of 2002, is amended to read as follows:
28 (iii) For purposes of calculating the amount of the credit, individ-
29 uals employed within an empire zone or zone equivalent area within the
30 immediately preceding sixty months by a related person, as such term is
31 defined in subparagraph (c) of paragraph three of subsection (b) of
32 section four hundred sixty-five of the internal revenue code, shall not
33 be included in the average number of individuals described in subpara-
34 graph (i) or subparagraph (ii) of this paragraph, unless such related
35 person was never allowed a credit under this subsection with respect to
36 such employees. For purposes of this subparagraph, a "related person"
37 shall include an entity which would have qualified as a "related person"
38 to the taxpayer if it had not been dissolved, liquidated, merged with
39 another entity or otherwise ceased to exist or operate.
40 § 21. Paragraph 1 of subsection (l) of section 606 of the tax law, as
41 amended by chapter 708 of the laws of 1993 and subparagraph (A) as
42 further amended pursuant to section 15 of part GG of chapter 63 of the
43 laws of 2000, is amended to read as follows:
44 (1) A taxpayer shall be allowed a credit against the tax imposed by
45 this article. The amount of the credit shall be equal to twenty-five
46 percent of the sum of the following investments and contributions made
47 during the taxable year and certified by the commissioner of economic
48 development: (A) for taxable years beginning before January first, two
49 thousand five, qualified investments made in, or contributions in the
50 form of donations made to, one or more empire zone capital [corpo-
51 rations] credits established pursuant to section nine hundred sixty-four
52 of the general municipal law prior to January first, two thousand five,
53 (B) qualified investments in certified zone businesses which during the
54 twelve month period immediately preceding the month in which such
55 investment is made employed full-time within the state an average number
56 of individuals of two hundred fifty or fewer, computed pursuant to the
S. 996 58 A. 1926
1 provisions of subparagraph (C) of paragraph two of subsection (k) of
2 this section, except for investments made by or on behalf of an owner of
3 the business including, but not limited to, a stockholder, partner or
4 sole proprietor, or any related person, as defined in subparagraph (C)
5 of paragraph three of subsection (b) of section four hundred sixty-five
6 of the internal revenue code, and (C) contributions of money to communi-
7 ty development projects as defined in regulations promulgated by the
8 commissioner of economic development. "Qualified investments" means the
9 contribution of property to a corporation in exchange for original issue
10 capital stock or other ownership interest, the contribution of property
11 to a partnership in exchange for an interest in the partnership, and
12 similar contributions in the case of a business entity not in corporate
13 or partnership form in exchange for an ownership interest in such enti-
14 ty. The total amount of credit allowable to a taxpayer under this
15 provision for all years, taken in the aggregate, shall not exceed three
16 hundred thousand dollars, and shall not exceed one hundred thousand
17 dollars with respect to the investments and contributions described in
18 each of subparagraphs (A), (B) and (C) of this paragraph.
19 § 22. Paragraph 1 of subsection (d) of section 1456 of the tax law, as
20 amended by chapter 708 of the laws of 1993 and as further amended pursu-
21 ant to section 15 of part GG of chapter 63 of the laws of 2000, is
22 amended to read as follows:
23 (1) A taxpayer shall be allowed a credit against the tax imposed by
24 this article. The amount of the credit shall be equal to twenty-five
25 percent of the sum of the following investments and contributions made
26 during the taxable year and certified by the commissioner of economic
27 development: (A) for taxable years beginning before January first, two
28 thousand five, qualified investments made in, or contributions in the
29 form of donations made to, one or more empire zone capital [corpo-
30 rations] credits established pursuant to section nine hundred sixty-four
31 of the general municipal law prior to January first, two thousand five,
32 (B) qualified investments in certified zone businesses which during the
33 twelve month period immediately preceding the month in which such
34 investment is made employed full-time within the state an average number
35 of individuals, excluding general executive officers, of two hundred
36 fifty or fewer, computed pursuant to the provisions of subparagraph (C)
37 of paragraph two of subsection (e) of this section, except for invest-
38 ments made by or on behalf of an owner of the business, including, but
39 not limited to, a stockholder, partner or sole proprietor, or any
40 related person, as defined in subparagraph (C) of paragraph three of
41 subsection (b) of section four hundred sixty-five of the internal reven-
42 ue code, and (C) contributions of money to community development
43 projects as defined in regulations promulgated by the commissioner of
44 economic development. "Qualified investments" means the contribution of
45 property to a corporation in exchange for original issue capital stock
46 or other ownership interest, the contribution of property to a partner-
47 ship in exchange for an interest in the partnership, and similar
48 contributions in the case of a business entity not in corporate or part-
49 nership form in exchange for an ownership interest in such entity. The
50 total amount of credit allowable to a taxpayer under this provision for
51 all years, taken in the aggregate, shall not exceed three hundred thou-
52 sand dollars, and shall not exceed one hundred thousand dollars with
53 respect to the investments and contributions described in each of
54 subparagraphs (A), (B) and (C) of this paragraph.
55 § 23. Subparagraph (B) of paragraph 2 of subsection (e) of section
56 1456 of the tax law, as amended by chapter 170 of the laws of 1994 and
S. 996 59 A. 1926
1 as further amended pursuant to section 15 of part GG of chapter 63 of
2 the laws of 2000, is amended to read as follows:
3 (B) "Targeted employee" means a New York resident who receives empire
4 zone wages and who is (i) an eligible individual under the provisions of
5 the targeted jobs tax credit (section fifty-one of the internal revenue
6 code), (ii) eligible for benefits under the provisions of the [job
7 training partnership] workforce investment act as a dislocated worker or
8 low-income individual (P.L. [97-300] 105-220, as amended), (iii) a
9 recipient of public assistance benefits or (iv) an individual whose
10 income is below the most recently established poverty rate promulgated
11 by the United States department of commerce, or a member of a family
12 whose family income is below the most recently established poverty rate
13 promulgated by the appropriate federal agency.
14 An individual who satisfies the criteria set forth in clause (i), (ii)
15 or (iv) at the time of initial employment in the job with respect to
16 which the credit is claimed, or who satisfies the criterion set forth in
17 clause (iii) at such time or at any time within the previous two years,
18 shall be a targeted employee so long as such individual continues to
19 receive empire zone wages.
20 § 24. The second undesignated paragraph of paragraph 3 of subsection
21 (e) of section 1456 of the tax law, as amended by section 16-a of part
22 CC of chapter 85 of the laws of 2002, is amended to read as follows:
23 The credit shall be allowed only with respect to the first taxable
24 year during which payments of empire zone wages are made and the condi-
25 tions set forth in this paragraph are satisfied, and with respect to
26 each of the four taxable years next following (but only, with respect to
27 each of such years, if such conditions are satisfied), in accordance
28 with paragraph four of this subsection. Subsequent certifications of the
29 taxpayer pursuant to article eighteen-B of the general municipal law, at
30 the same or a different location in the same empire zone or zone equiv-
31 alent area or at a location in a different empire zone or zone equiv-
32 alent area, shall not extend the five taxable year time limitation on
33 the allowance of the credit set forth in the preceding sentence.
34 Provided, further, however, that no credit shall be allowed with respect
35 to any taxable year beginning more than four years following the taxable
36 year in which designation as an empire zone expired or more than ten
37 years after the designation as a zone equivalent area. Notwithstanding
38 the previous sentence, a taxpayer which has been certified under article
39 eighteen-B of the general municipal law in a zone equivalent area prior
40 to June thirteenth, two thousand four shall be allowed a credit under
41 this subdivision for a total of five consecutive taxable years, provided
42 that payments of empire zone wages are made and the conditions set forth
43 in this subsection are satisfied in each of those years.
44 § 25. Subparagraph (C) of paragraph 4 of subsection (e) of section
45 1456 of the tax law, as added by section 16-b of part CC of chapter 85
46 of the laws of 2002, is amended to read as follows:
47 (C) For purposes of calculating the amount of the credit, individuals
48 employed within an empire zone or zone equivalent area within the imme-
49 diately preceding sixty months by a related person, as such term is
50 defined in subparagraph (c) of paragraph three of subsection (b) of
51 section four hundred sixty-five of the internal revenue code, shall not
52 be included in the average number of individuals described in subpara-
53 graph (A) or subparagraph (B) of this paragraph, unless such related
54 person was never allowed a credit under this subsection with respect to
55 such employees. For the purposes of this subparagraph, a "related
56 person" shall include an entity which would have qualified as a "related
S. 996 60 A. 1926
1 person" to the taxpayer if it had not been dissolved, liquidated, merged
2 with another entity or otherwise ceased to exist or operate.
3 § 26. Subparagraph (B) of paragraph 2 of subdivision (g) of section
4 1511 of the tax law, as amended by chapter 170 of the laws of 1994 and
5 as further amended pursuant to section 15 of part GG of chapter 63 of
6 the laws of 2000, is amended to read as follows:
7 (B) "Targeted employee" means a New York resident who receives empire
8 zone wages and who is (i) an eligible individual under the provision of
9 the targeted jobs tax credit (section fifty-one of the internal revenue
10 code), (ii) eligible for benefits under the provisions of the [job
11 training partnership] workforce investment act as a dislocated worker or
12 a low-income individual (P.L. [97-300] 105-220, as amended), (iii) a
13 recipient of public assistance benefits or (iv) an individual whose
14 income is below the most recently established poverty rate promulgated
15 by the United States department of commerce, or a member of a family
16 whose family income is below the most recently established poverty rate
17 promulgated by the appropriate federal agency.
18 An individual who satisfies the criteria set forth in clause (i), (ii)
19 or (iv) at the time of initial employment in the job with respect to
20 which the credit is claimed, or who satisfies the criterion set forth in
21 clause (iii) at such time or at any time within the previous two years,
22 shall be a targeted employee so long as such individual continues to
23 receive empire zone wages.
24 § 27. The second undesignated paragraph of paragraph 3 of subdivision
25 (g) of section 1511 of the tax law, as amended by section 16-c of part
26 CC of chapter 85 of the laws of 2002, is amended to read as follows:
27 The credit shall be allowed only with respect to the first taxable
28 year during which payments of empire zone wages are made and the condi-
29 tions set forth in this paragraph are satisfied, and with respect to
30 each of the four taxable years next following (but only, with respect to
31 each of such years, if such conditions are satisfied), in accordance
32 with paragraph four of this subdivision. Subsequent certifications of
33 the taxpayer pursuant to article eighteen-B of the general municipal
34 law, at the same or a different location in the same empire zone or zone
35 equivalent area or at a location in a different empire zone or zone
36 equivalent area, shall not extend the five taxable year time limitation
37 on the allowance of the credit set forth in the preceding sentence.
38 Provided, further, however, that no credit shall be allowed with respect
39 to any taxable year beginning more than four years following the taxable
40 year in which designation as an empire zone expired or more than ten
41 years after the designation as a zone equivalent area. Notwithstanding
42 the previous sentence, a taxpayer which has been certified under article
43 eighteen-B of the general municipal law in a zone equivalent area prior
44 to June thirteenth, two thousand four shall be allowed a credit under
45 this subdivision for a total of five consecutive taxable years, provided
46 that payments of empire zone wages are made and the conditions set forth
47 in this subdivision are satisfied in each of those years.
48 § 28. Subparagraph (C) of paragraph 4 of subdivision (g) of section
49 1511 of the tax law, as added by section 16-d of part CC of chapter 85
50 of the laws of 2002, is amended to read as follows:
51 (C) For purposes of calculating the amount of the credit, individuals
52 employed within an empire zone or zone equivalent area within the imme-
53 diately preceding sixty months by a related person, as such term is
54 defined in subparagraph (c) of paragraph three of subsection (b) of
55 section four hundred sixty-five of the internal revenue code, shall not
56 be included in the average number of individuals described in subpara-
S. 996 61 A. 1926
1 graph (A) or subparagraph (B) of this paragraph, unless such related
2 person was never allowed a credit under this subdivision with respect to
3 such employees. For the purposes of this subparagraph, a "related
4 person" shall include an entity which would have qualified as a "related
5 person" to the taxpayer if it had not been dissolved, liquidated, merged
6 with another entity or otherwise ceased to exist or operate.
7 § 29. Paragraph 1 of subdivision (h) of section 1511 of the tax law,
8 as amended by chapter 708 of the laws of 1993 and subparagraph (A) as
9 further amended pursuant to section 15 of part GG of chapter 63 of the
10 laws of 2000, is amended to read as follows:
11 (1) A taxpayer shall be allowed a credit against the tax imposed by
12 this article. The amount of the credit shall be equal to twenty-five
13 percent of the sum of the following investments and contributions made
14 during the taxable year and certified by the commissioner of economic
15 development: (A) for taxable years beginning before January first, two
16 thousand five, qualified investments made in, or contributions in the
17 form of donations made to, one or more empire zone capital [corpo-
18 rations] credits established pursuant to section nine hundred sixty-four
19 of the general municipal law prior to January first, two thousand five,
20 (B) qualified investments in certified zone businesses which during the
21 twelve month period immediately preceding the month in which such
22 investment is made employed full-time within the state an average number
23 of individuals, excluding general executive officers, of two hundred
24 fifty or fewer, computed pursuant to the provisions of subparagraph (C)
25 of paragraph two of subsection (g) of this section, except for invest-
26 ments made by or on behalf of an owner of the business, including, but
27 not limited to, a stockholder, partner or sole proprietor, or any
28 related person, as defined in subparagraph (C) of paragraph three of
29 subsection (b) of section four hundred sixty-five of the internal reven-
30 ue code, and (C) contributions of money to community development
31 projects as defined in regulations promulgated by the commissioner of
32 economic development. "Qualified investments" means the contribution of
33 property to a corporation in exchange for original issue capital stock
34 or other ownership interest, the contribution of property to a partner-
35 ship in exchange for an interest in the partnership, and similar
36 contributions in the case of a business entity not in corporate or part-
37 nership form in exchange for an ownership interest in such entity. The
38 total amount of credit allowable to a taxpayer under this provision for
39 all years, taken in the aggregate, shall not exceed three hundred thou-
40 sand dollars, and shall not exceed one hundred thousand dollars with
41 respect to the investments and contributions described in each of
42 subparagraphs (A), (B) and (C) of this paragraph.
43 § 30. Notwithstanding the amendments made by sections twelve and thir-
44 teen of this act, any business enterprise certified under article 18-B
45 of the general municipal law prior to April 1, 2005 and which (i) has a
46 base period of zero years or (ii) is an electric generating facility or
47 (iii) is principally engaged in the business of owning real property or
48 of owning and managing real property shall be entitled to apply to the
49 commissioner of economic development for permission to determine its
50 status as a QEZE and calculate its QEZE real property tax credit and its
51 QEZE tax reduction credit for taxable years beginning on or after Janu-
52 ary 1, 2005 in the same manner as other business enterprises certified
53 under article 18-B of the general municipal law prior to April 1, 2005.
54 The commissioner of economic development shall promulgate rules that
55 shall set forth the procedures for business enterprises to follow to
56 apply for such permission and the standards to be used to determine
S. 996 62 A. 1926
1 whether or not such permission shall be granted. The commissioner of
2 economic development shall notify the commissioner of taxation and
3 finance of all applications received for such permission and the dispo-
4 sition of all such applications.
5 § 31. This act shall take effect immediately; provided, however, that:
6 (i) sections twelve, thirteen, fifteen, nineteen, twenty-four and
7 twenty-seven of this act shall apply to taxable years beginning on or
8 after January 1, 2005;
9 (ii) the amendment made to subdivision (g) of section 14 of the tax
10 law concerning "related person", other than the addition of the words
11 "the state within", by section twelve of this act, and sections sixteen,
12 twenty, twenty-five and twenty-eight of this act shall apply to taxable
13 years beginning on or after January 1, 2002; and
14 (iii) the amendments made to section 14 of the tax law by section
15 twelve of this act for sales and use tax purposes shall apply to employ-
16 ment tests to determine eligibility for QEZE benefits which are measured
17 by taxable years beginning on or after January 1, 2005 and to sales
18 made, uses occurring and services rendered on or after the first day of
19 the first such taxable year beginning on or after January 1, 2005, in
20 accordance with applicable transition provisions in sections 1106 and
21 1217 of the tax law.
22 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
23 sion, section or part of this act shall be adjudged by any court of
24 competent jurisdiction to be invalid, such judgment shall not affect,
25 impair, or invalidate the remainder thereof, but shall be confined in
26 its operation to the clause, sentence, paragraph, subdivision, section
27 or part thereof directly involved in the controversy in which such judg-
28 ment shall have been rendered. It is hereby declared to be the intent of
29 the legislature that this act would have been enacted even if such
30 invalid provisions had not been included herein.
31 § 3. This act shall take effect immediately provided, however, that
32 the applicable effective date of Parts A through F of this act shall be
33 as specifically set forth in the last section of such Parts.