| PART | DESCRIPTION | STARTING PAGE NUMBER FOR: | ||
|---|---|---|---|---|
| SUMMARY, HISTORY & STATEMENT IN SUPPORT | BUDGET IMPLICATION | EFFECTIVE DATE | ||
| A | Extend the Power for Jobs program. | 2 (Part A) | 12 (Part A) | 13 (Part A) |
| B | Establish Operation SPUR. | 2 (Part B) | 12 (Part B) | 13 (Part B) |
| C | Create a SPUR wage tax credit. | 2 (Part C) | 12 (Part C) | 13 (Part C) |
| D | Create a SPUR tax incentive: provide a new business allocation percentage and eliminate the alternative minimum tax rate for manufacturers. | 3 (Part D) | 12 (Part D) | 13 (Part D) |
| E | Create a SPUR tax incentive: permit the conversion of tax losses into a refundable tax credit. | 6 (Part E) | 12 (Part E) | 13 (Part E) |
| F | Extend and reform the Empire Zones program. | 7 (Part F) | 12 (Part F) | 13 (Part F) |
A BUDGET BILL submitted by the Governor in Accordance with Article VII of the Constitution
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 authorize 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 technology 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 strategic 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 partnership 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)
This bill contains provisions needed to implement the Strategic Partnership for Upstate Resurgence portion of the 2005-06 Executive Budget.
This bill extends the Power for Jobs (PFJ) program until December 31, 2006 and requires the New York Power Authority (NYPA) to make an additional voluntary contribution of $75 million in SFY 2005-06.
Without this extension, the Power for Jobs program will sunset on December 31, 2005. PFJ provides low-cost power to businesses and not-for-profits and is an important economic development program that supports the continuation of over 300,000 jobs throughout the State.
Absent enactment of this bill, low-cost power will not be provided to over 700 businesses and not-for-profits, thereby endangering the continuation of the associated jobs.
This bill establishes a new $90 million for Operation SPUR to be administered by the New York State Urban Development Corporation (UDC), and authorizes UDC, or other public authorities if appropriate, to issue bonds to finance the program.
This new bill allows the State to support priority high technology and economic development projects in Upstate New York, pursuant to rules and regulations developed by the Urban Development Corporation that consider employment and population growth.
This bill spurs economic development in certain parts of the State by providing for a wage tax credit for taxpayers who create at least fifty new jobs in areas which are part of the Strategic Partnership for Upstate Resurgence initiative (SPUR area).
This bill would add new credit provisions to Article 9-A and 22 of the Tax Law to provide for a “SPUR wage tax credit” for creating new jobs in certain upstate areas designated as “SPUR areas”. This credit would be modeled in part on the existing wage tax credit for empire zones. Qualified taxpayers that create fifty new jobs in a SPUR area on or after January 1, 2005, are eligible for the credit. To be qualified, a taxpayer must be engaged in manufacturing, aviation, a railroad or trucking business or be a registered securities or commodities broker or dealer. The amount of the credit for each eligible employee would be the same as under the empire zone wage tax credit, $3,000 dollars for “targeted employees” and $1,500 dollars for other employees. In addition these credit amounts will be enhanced by an additional $500 dollars if the SPUR area jobs are also located in an empire zone. A taxpayer eligible for both the empire zone wage tax credit and the SPUR area wage tax credit would have to make an irrevocable election as to which credit to take. This proposal will target upstate communities which haven’t seen the same level of economic growth and job creation that has occurred in other regions of the State. This proposal will assist in stimulating the economy in those areas designated as SPURs.
Under existing law, there is only a wage tax credit for jobs created in an empire zone.
There has been no prior legislation introduced on this subject.
This bill amends Article 9-A of the Tax Law in relation to the calculation of the business allocation percentage and the alternative minimum tax.
Section one of the bill adds a new subparagraph 10 to section 210.3(a) of the Tax Law to provide a new business allocation percentage (BAP) for certain manufacturers. This bill allows a taxpayer which is a “manufacturer” and conducts business in an area which is part of the Strategic Partnership for Upstate Resurgence (“SPUR”) initiative under section 16-n of the New York State Urban Development Corporation Act and makes a qualified investment of at least $25 million in such area to utilize a BAP that is determined using a one hundred percent weighted receipts factor for the year the manufacturer makes the qualified investment. Also, such taxpayer may elect to continue to use the 100 percent weighted receipts factor in the next 9 succeeding taxable years if the taxpayer continues to maintain that level of investment in each of those taxable years. In addition, this bill allows a taxpayer which is a “manufacturer” who meets the qualifications set forth above, and also creates and maintains at least 100 new jobs in an area which is part of the SPUR initiative during the period beginning on or after January 1, 2005 and ending on the last day of the ninth succeeding taxable year, to compute its BAP in the tenth succeeding taxable year and in each taxable year thereafter using a 100 percent weighted receipts factor, provided the taxpayer continues to maintain its level of employment in each of those taxable years. The new jobs created must be new jobs to the State and may not be jobs that have been transferred to a SPUR area or areas from another area in the State. The term “manufacturer” is defined as a taxpayer or a combined group which derives over 50 percent of its receipts from the sale of goods produced by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing. The term “qualified investment” includes the acquisition, purchase or construction of real or tangible personal property with a cost or other basis for Federal income tax purposes equal to or exceeding $25 million. In addition, a manufacturer will be treated as creating and maintaining at least 100 new jobs if the average number of individuals, excluding general executive officers, employed full-time by the taxpayer or combined group in one or more areas which are part of the SPUR initiative and in New York State for the taxable year equals or exceeds by 100 the average number of individuals, excluding general executive officers, employed full-time by the taxpayer or combined group in one or more areas which are part of the SPUR initiative and in New York State in the taxable year beginning on or after January 1, 2004, and before January 1, 2005. For purposes of computing the number of new jobs, individuals employed in the immediately preceding 60 months by a related person to the taxpayer or to the combined group will not be counted. A “related person” is a person as defined in IRC Section 465(b)(3)(c).
Section 2 of the bill amends section 210.3-a of the Tax Law to conform the definition of the alternative business allocation percentage with the provisions of new subparagraph ten of section 210.3(a) added by section one of this bill. Section 3 of the bill amends section 209-B of the Tax Law by adding new subdivision 2-c. Subdivision 2-c allows certain manufacturers to elect to determine the portion of their business activity carried on within the Metropolitan Commuter Transportation District by using a 100 percent weighted receipts factor. The definition of a manufacturer for purposes of this subdivision is the same as that added by section 1 of this bill.
Section 4 of the bill amends section 210.1(c)(ii) of the Tax Law by eliminating the amount of the alternative minimum tax for taxpayers which are “manufacturers” and eligible to compute their business allocation percentage under new subparagraph 10 of section 210.3(a) of the Tax Law for taxable years beginning on or after January 1, 2005.
Section 5 of the bill provides that this bill will take effect immediately and apply to taxable years beginning on or after January 1, 2005.
Under Article 9-A of the Tax Law, business income and business capital are apportioned to New York State based on a taxpayer’s business allocation percentage. In general, the business allocation percentage is the average of three factors: a property factor, a payroll factor and a receipts factor. In calculating the factors, the taxpayer compares the amount of the property, payroll or receipts in New York, with the taxpayer’s respective amounts of property, payroll and receipts wherever located. In determining the New York business allocation percentage, the receipts factor is given double weight in comparison to the property and payroll factors. Thus, half of the business allocation percentage is based on the taxpayer’s receipts factor, while the property and payroll factors each comprise one-quarter of the business allocation percentage. An annual surcharge is imposed on any corporation exercising its corporate franchise, doing business, owning or leasing property, employing capital, or maintaining an office in the area described as the Metropolitan Commuter Transportation District. The surcharge applies only to the portion of tax attributable to activity conducted in the district, measured by the average of the percentages of tangible property, receipts and payroll within the district. The apportionment formula generally tracks the business allocation percentage used to allocate a corporation’s business income within the State. However, the receipts factor is not double-weighted.
Currently the alternative minimum tax is two and one-half percent of a taxpayer’s minimum taxable income base.
This is a new proposal.
This bill will reduce the net tax burden on certain manufacturing companies by using a company’s receipts factor only when determining that company’s share of income to be apportioned to New York. The methodology of apportioning income is a significant aspect of taxation. Apportionment reduces the total value of a firm’s business activity to the value that can be reasonably attributed to a state. For regular businesses taxable under the corporate franchise tax, New York generally uses a traditional three factor formula, the BAP, to apportion income or capital. The BAP is a weighted average of receipts, payroll and property. The receipts factor is double weighed; this means that receipts are 50 percent of the BAP. Each factor reflects a ratio of the value of the factor within New York to the value everywhere the company does business. The resulting BAP is applied to total business income to determine New York taxable income.
Increasing the weight on the receipts factor from the current 50 percent to 100 percent will provide an incentive for certain manufacturers in New York to increase their employment and facilities in New York areas that are part of the SPUR initiative. Under the current three factor formula, a company that expands in New York generally experiences a tax increase because their expansion increases the value of the numerator of the property and payroll factors. The result of the expansion is often an increase in the overall value of the BAP which exposes more income to taxation to New York.
This bill will reduce the tax for taxpayers which are “manufacturers” and eligible to compute their business allocation percentage under new subparagraph 10 of section 210.3(a) of the Tax Law that currently pay under the State minimum taxable income base because of the use of tax credits, or Federal preference items (such as accelerated depreciation for the purpose of the Federal alternative minimum tax). Many of these taxpayers have invested in New York and have earned tax credits or have claimed accelerated depreciation that is classified as a tax preference item for Federal purposes. These companies have been prevented from taking full advantage of their state tax credits or deductions by the alternative minimum tax. The elimination of the alternative minimum tax for these companies will significantly reduce administrative complexity for such taxpayers and simplify the tax forms.
To provide taxpayers which have an affiliation with a Center of Excellence and are creating jobs or investment in an area which is part of the Strategic Partnership for Upstate Resurgence initiative with a new source of capital in the form of a refundable credit measured in part by the taxpayer’s net operating loss.
Section 1 of the bill adds a new subdivision (37) to section 210 of the Tax Law to provide a new refundable credit, the SPUR Center of Excellence Affiliation Credit. This credit is available to taxpayers under Article 9-A of the Tax Law which meet the following qualifications. (1) In the first year that the taxpayer seeks to claim the credit, the taxpayer must be a new business as defined in Tax Law section 210.12(j). (2) The taxpayer must conduct at least some of its operations in one or more areas which are part of the Strategic Partnership for Upstate Resurgence initiative (SPUR). (3) The taxpayer during the taxable year must be affiliated with a university which has been designated a Center of Excellence. (4) Since January 1, 2005, the taxpayer must have either (i) created and maintained at least twenty-five new jobs in one or more areas which are part of the SPUR initiative, which jobs cannot have been transferred into any of those areas from some other location in the state, or (ii) made a significant investment in real or tangible personal property in one or more areas which are part of the SPUR initiative. Such jobs and investment must be directly connected to the taxpayer’s affiliation with a university which has been designated a Center of Excellence. (5) The taxpayer’s applicable tax base for the taxable year must be either the capital base or the fixed dollar minimum tax, and so the taxpayer is not paying a tax based on income. The credit is equal to the product of (1) the taxpayer’s net operating loss, (2) the taxpayer’s business allocation percentage for the taxable year, and (3) the tax rate under Article 9-A which is in effect for the taxable year. However, the amount of the credit allowed for any taxable year shall not exceed $1 million and the total aggregate amount allowed to the taxpayer shall not exceed $5 million. In order to be allowed a credit under this subdivision, the taxpayer must have received certification for the taxable year from the Urban Development Corporation that the taxpayer has met the 3rd and 4th qualifications set forth above. If the amount of this credit for any taxable year reduces the tax to the fixed dollar minimum tax amount, any amount of credit thus not deductible will be treated as an overpayment of tax to be credited or refunded. The bill defines the term “net operating loss” for this purpose as the loss which results when entire net income for the taxable year is calculated, computed without regard to the deductions allowed under IRC, section 172 and Tax Law section 208.9(f). The bill also explains how the credit will work on a combined report. The credit will be first allowed in taxable years beginning on or after January 1, 2005.
This is a new provision.
Often times, a corporation will lose money in its first years of operations. This bill, by providing these new businesses with a mechanism for converting those losses into a refundable tax credit, will provide a benefit and source of capital to corporations which are creating jobs and investments through their affiliations with Centers of Excellence in areas which are participating in the Strategic Partnership for Upstate Resurgence.
The purpose of this bill is to amend the General Municipal Law and the Tax Law, in relation to the purpose, administration and benefits of the Empire Zones program in order to improve accountability, focus benefits to communities that most need job growth and investment, provide flexibility to secure projects with large job creation potential, preserve local decision-making authority, and enhance State oversight.
General Municipal Law Amendments:
Section 1 amends §956 of the General Municipal Law to recognize the current economic environment and to acknowledge the importance of the Empire Zones program in increasing the State’s competitiveness to attract projects with large job creation potential in addition to revitalizing distressed areas.
Section 2 amends §957 of the General Municipal Law to add definitions for “Neighborhood Revitalization Empire Zone”, “Countywide Development Empire Zone” and “targeted areas” to be in accord with new provisions relating to the placement of Empire Zone acreage. In addition, technical clarifications are made.
Section 3 amends §958 of the General Municipal Law to require local Empire Zones, designated pursuant to eligible census tracts, to place Empire Zone acreage within a four square mile “superboundary”, which must be located in an eligible census tract(s) or census tract(s) contiguous to such eligible census tract(s), and may be one contiguous area or up to three non-contiguous areas. Local Empire Zones, designated pursuant to countywide criteria, are required to place at least sixty percent of the total Empire Zone acreage in up to six “targeted areas”, which must be located within census tracts that have rates of unemployment and poverty that exceed the countywide unemployment and poverty rates according to the most recent census data available. Authority is provided to the Commissioner of Economic Development to annually designate areas of up to one non-contiguous square mile in total, which will attract large projects involving job creation of at least three hundred new jobs in the State outside of the Metropolitan Commuter Transportation District; or projects that are located within distressed census tracts that create at least one hundred new jobs. The Commissioner is also authorized to designate up to one non-contiguous area in at least four counties for agribusiness projects. In addition, technical clarifications are made.
Section 4 amends §959 of the General Municipal Law to authorize the Commissioner of Economic Development to establish reporting requirements and performance measures for determining the economic and revitalization impacts of the Empire Zones Program. This provision requires the Commissioner of Economic Development in conjunction with the Department of Taxation and Finance to prepare an annual report regarding tax credits claimed under the program. In addition, the Commissioner of Economic Development is authorized to promulgate rules and regulations to certify significant investments made in distressed census tracts located within an Empire Zone in order to receive Qualified Empire Zone Enterprise tax benefits. The Commissioner of Economic Development is also authorized to receive and review a plan submitted by the local Empire Zone administrative boards addressing workforce development, human services, small business, child-care, and increased participation of minority- and women-owned small businesses. This section condenses and clarifies many existing powers and responsibilities of the Commissioner of Economic Development and moves the annual report regarding zone activity that is required to be submitted to the Department of Audit and Control and the Legislature to §959 from §963.
Section 5 amends §960 of the General Municipal Law to remove expired authorization for designation of Empire Zones and to remove outdated reporting requirements.
Section 6 amends §961 of the General Municipal Law to make technical clarifications.
Section 7 amends §962 of the General Municipal Law to replace the existing requirements of a zone development plan with new requirements, including specific criteria for determining Empire Zone boundaries and types of businesses to be targeted for inclusion in the program. In addition, a new zone development plan is required to be submitted to the Commissioner of Economic Development by December 31, 2005, and every three years thereafter.
Section 8 amends §963 of the General Municipal Law to bring the responsibilities of local Empire Zone administration into accord with new performance and reporting requirements, requires local Empire Zone administrators to consider the development plan when making certification determinations, and in the case that no funding is provided by the State, the local empire zone administrative board may elect by resolution to have the Department of Economic Development provide the administrative services.
Section 9 amends §964 of the General Municipal Law to remove the authorization to form new Zone Capital Corporations. In addition, the bill removes the zone capital credit cap of five hundred thousand dollars for qualified investments in certified zones businesses.
Section 10 amends §966 of the General Municipal Law to make a technical clarification.
Section 11 amends §969 of the General Municipal Law to extend the program five years to March 31, 2010.
Tax Law Amendments:
Section 12 amends section 14 of the Tax Law to make changes in the way the Qualified Empire Zone Enterprise (QEZE) benefits are calculated. Business enterprises certified as EZ businesses under Article 18-B of the General Municipal Law on or after April 1, 2005, will have a ten-year business tax benefit period instead of a 15-year period. In addition, the employment test, which must be satisfied in order for a business enterprise to qualify as a QEZE, is changed for business enterprises certified as EZ businesses under Article 18-B of the General Municipal Law on or after April 1, 2005, and business enterprises certified as EZ businesses before April 1, 2005, and have a base period of zero years or are electric generating facilities or are principally engaged in the business of owning real property or owning and managing real property. The new test is modeled on the EZ wage tax credit qualifying test. Under the new test, the QEZE’s employment number in the EZs and in the State in the tax year must exceed its employment number in the EZs and in the State during the base period. The base period is shortened to four taxable years for the tax credits and changed to the four taxable years immediately preceding the year the business enterprise is certified under Article 18-B. For sales and use tax purposes, the base period would only include years 1 through 3 of that 4 year period. The definition of “employment number” has also been modified to provide that the exclusion from that number for individuals employed within the immediately preceding 60 months by a related person as that term is defined in IRC, section 465(b)(3)(c), applies only to those individuals employed by the related person within the State. In addition, the definition of “related person” is amended to clarify that it includes an entity, which would have qualified as a related person if it had not been dissolved, liquidated, merged with another entity or otherwise ceased to exist or operate. This change, since it is simply a clarification of current law, is made retroactive to taxable years beginning on or after January 1, 2002.
Section 13 amends section 15 of the Tax Law to change the way the QEZE real property tax credit is calculated for business enterprises certified under Article 18-B of the General Municipal Law on or after April 1, 2005 and business enterprises certified as EZ businesses before April 1, 2005 and have a base period of zero years or are electric generating facilities or are principally engaged in the business of owning real property or owning and managing real property. Specifically, the employment increase factor is changed. Under the bill, the employment increase factor will be the amount, not to exceed 1.0, which is the excess of the QEZE’s employment number in the EZs where it is certified for the taxable year over the QEZE’s base period employment number, divided by 100. For this purpose, the employment number in the EZs will not include individuals employed within the State but outside the EZs by the QEZE or by a related person to the QEZE within the preceding sixty months. The bill also provides that if the Commissioner of Economic Development certifies that the QEZE has made an investment that qualifies as a qualified Empire Zone investment pursuant to General Municipal Law section 959, then the QEZE’s employment increase factor will be 1.0. The employment increase factor will also be 1.0 where the Commissioner of Economic Development has certified that the QEZE is located within a flex acreage agribusiness opportunity empire zone designated pursuant to section 958(g) of the General Municipal Law. Section 13 also amends the definition of “eligible real property taxes” to include taxes paid by a QEZE which is a lessee of real property if the following conditions are met: (1) the taxes must be paid by the lessee pursuant to explicit requirements in a written lease; (2) such taxes become a lien on the real property during a taxable year in which the lessee of the real property is both certified under Article 18-B of the General Municipal Law and a QEZE; and (3) the lessee has made direct payment of such taxes to the taxing authority and has received a receipt for such payment of taxes from the taxing authority. Further, the bill makes amendments to the provisions in the definition of “eligible real property taxes” concerning payments in lieu of taxes (PILOTS). The bill provides that a PILOT made by a QEZE pursuant to a written agreement executed or amended on or after January 1, 2001, would not constitute eligible real property taxes in any taxable year to the extent that such payment exceeds the product of: (A) the QEZE’s investment in the property (more specifically, the greater of (i) the basis for Federal income tax purposes, determined on the later of January 1, 2001, or the effective date of the QEZE's certification pursuant to Article 18-B of the General Municipal Law, of real property, including buildings and structural components of buildings, owned by the QEZE and located in EZs with respect to which the QEZE is certified, or (ii) the basis for Federal income tax purposes of such real property on the last day of the taxable year, and (B) the estimated full value tax rate most recently reported to the Commissioner of Taxation and Finance by the Secretary of the State Board of Real Property Services or his or her designee. The State Board would calculate such estimated effective full-value tax rates annually based on the most current information available to it. This change is effective for taxable years beginning on or after January 1, 2005. The credit limitation applicable to the QEZE real property tax credit is amended to provide that, in the case of a business enterprise which is certified under Article 18-B on or after April 1, 2005 and business enterprises certified as EZ businesses before April 1, 2005 and have a base period of zero years or are electric generating facilities or are principally engaged in the business of owning real property or owning and managing real property, the employment increase limitation will be the product of $10,000 and the excess of the QEZE’s employment number in the EZs with respect to which the QEZE is certified for the taxable year, over the QEZE’s base period employment number in those zones. For this purpose, individuals employed within the State but outside of those zones within the preceding 60 months by the QEZE or by a related person to the QEZE will not be included. The bill also specifies that the credit limitation for a lessee is the employment increase limitation.
Sections 14, 15 and 16 amend the EZ wage tax credit to update the definition of targeted employee, provide that a business certified in a zone equivalent area (ZEA) before June 13, 2004, (when the ZEAs expire) will be allowed to claim a full five years of wage tax credits, and conform the related person definition for wage tax credit purposes to the related person definition for QEZE purposes, respectively.
Section 17 amends the EZ capital corporation credit under Article 9-A to provide that the credit component for qualified investments in or donations to a zone capital corporation will not be applicable in taxable years beginning on or after January 1, 2005, and will only apply to investments in or donations to a zone capital corporation established prior to March 31, 2005.
Sections 18 through 29 make conforming changes to the EZ wage tax credits and the EZ capital corporation credits under the personal income tax, the franchise tax on banking corporations and the franchise tax on insurance companies.
Section 30 provides that any business enterprise certified under Article 18-B of the General Municipal Law prior to April 1, 2005, will be entitled to apply to the Commissioner of Economic Development for permission to determine its status as a QEZE in the same manner as other business enterprises certified under Article 18-B of the General Municipal Law prior to April 1, 2005. The Commissioner of Economic Development is required to promulgate rules that shall set forth the procedures for business enterprises to follow to apply for such permission and the standards to be used to determine whether or not such permission will be granted. The Commissioner of Economic Development is also required to notify the Commissioner of Taxation and Finance of all applications received for such permission and the disposition of all such applications.
Section 31 is the effective date provision.
The Empire Zones program began in the mid 1980s and has been amended many times in recent years. Most significantly, the Empire Zones program was amended in 2001 when the Qualified Empire Zone Enterprise (QEZE) program was enacted to include a tax reduction credit, a credit for real property taxes and a State sales and use tax exemption (with a local option) for tangible personal property and services used or consumed by a zone enterprise. Various provisions of the QEZE program were amended in the 2002-03 enacted Budget. These amendments included some provisions, such as the new business test, designed to reduce the abuses that were taking place by organizations wanting to take advantage of the Program’s generous benefits. However, these amendments from 2002-03 have only been partially successful in reducing the abuses.
These reforms were advanced as part of the Governor’s 2004-05 Executive Budget. However, an agreement with the Legislature was unable to be reached and resulted in the extension of the program until March 31, 2005.
The Empire Zones program has a successful track record of facilitating projects that increase employment and encourage investment across New York State. However, the existing statutory framework for the program allows for certain abuses that have allowed businesses to secure State benefits without creating new jobs. In addition, the current law fails to encourage effective local economic development planning, and requires improvements to allow for neighborhood revitalization. This legislation addresses these statutory flaws. In addition, the legislation will enhance program reporting and evaluation by establishing a framework that integrates local development goals with an interagency reporting system to measure performance as it relates to job growth, investment and program implementation.
The reforms in this bill are designed to protect State revenues while ensuring that the Empire Zones program continues to provide significant economic and tax incentives to businesses.
Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes that NYPA will provide $75 million in SFY 2005-06 to support the extension of PFJ, as well as repay the State for the costs of prior phases of the program.
Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes that a new $90 million Operation SPUR will be established and financed with public benefit corporation bond proceeds.
This bill reduces tax revenues by $25 million in SFY 2005-06.
This bill reduces tax revenues by $9 million in SFY 2005-06.
This bill reduces tax revenues by $1 million in SFY 2005-06.
This bill is necessary to implement the 2005-06 Executive Budget, which assumes the extension of the program from the current March 31, 2005 sunset, and that State tax expenditures will decrease by $25 million in 2006-07 as a result of the elimination of abuses allowable under the existing legislation.
This bill takes effect April 1, 2005.
This bill takes effect April 1, 2005.
This bill takes effect immediately and applies to taxable years beginning on or after January 1, 2005.
This bill takes effect immediately and applies to taxable years beginning on or after January 1, 2005.
This bill takes effect immediately and applies to taxable years beginning on or after January 1, 2005
This act shall take effect immediately; provided, however, that (i) except as provided in (ii) of this section, sections 12, 13, 15, 19, 24 and 27 of this act shall apply to taxable years beginning on or after January 1, 2005; and (ii) the amendment in section 12 of this act to subdivision (g) of section 14 of the tax law concerning “related person” other than the addition of the words “the state within”, and sections 16, 20, 25 and 28 of this act shall apply to taxable years beginning on or after January 1, 2002, and (iii) the amendments in section 12 of this act for sales and use tax purposes shall apply to employment tests to determine eligibility for QEZE benefits which are measured by taxable years beginning on or after January 1, 2005, and to sales made, uses occurring and services rendered on or after the first day of the first such taxable year beginning on or after January 1, 2005, in accordance with applicable transition provisions in sections 1106 and 1217 of the Tax Law.