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A07189 Summary:

BILL NOA07189A
 
SAME ASSAME AS S03017-A
 
SPONSORJenne
 
COSPNSR
 
MLTSPNSR
 
Amd 400 & 402, Ec Dev L; amd 35, Tax L
 
Grants eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land.
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A07189 Actions:

BILL NOA07189A
 
04/12/2017referred to economic development
06/08/2017amend and recommit to economic development
06/08/2017print number 7189a
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A07189 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7189A
 
SPONSOR: Jenne
  TITLE OF BILL: An act to amend the economic development law and the tax law, in relation to granting eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land   PURPOSE: To grant eligibility for the economic transformation and facility rede- velopment program tax credit to certain state psychiatric centers with decommissioned or surplus land.   .UP ON;  SUMMARY OF PROVISIONS: Section 1 amends § 400(4)(e) of the Economic Development Law to add to the dosed facility exception. Section 2 amends § 400(10)(d) of the Economic Development Law to provide that with respect to a closed facility described in paragraph (d) or (e) or subdivision eleven of this section, the economic transformation area shall consist only of the acreage of the dosed facility. Section 3 amends § 400(11)(d) of the Economic Development Law to add to the definition of dosed facility a facility that is currently operated as a psychiatric center pursuant to § 7.17 of the Mental Hygiene Law, where at least three-fifths of the total acreage Of such facility has been designated by the Commissioner of Mental Health as decommissioned or surplus, including the buildings thereon. Section 4 amends § 402(1) of the Economic Development Law to provide that a business entity must submit a completed application as prescribed by the commissioner pursuant to specific deadlines, provided however that in the case of a dosed facility as described in § 400(11)(d) and newly created paragraph (e), a business entity must submit a completed application as prescribed by the commissioner by September 1, 2017. Section 5 amends § 35(h)(1) of the Tax Law to provide that a taxpayer which meets the requirements in this section shall be eligible to claim a credit on qualified investments with respect to the project for which the certificate of eligibility is issued. The credit shall be equal to 10% of the cost of other bases for federal income tax purposes of the quailed investment at a dosed facility, provided that the taxpayer that is the owner of the dosed facility as described in the amended § 400(11) of the Economic Development Law shall be allowed to include in its cost or other basis of the qualified investment at the dosed facility, any demolition costs incurred at such closed facility. Section 6 is the effective date.   EXISTING LAW: § 400 of the Economic Development Law provides the definitions for the Economic Transformation and Facility Redevelopment Program. § 402 of the Economic Development Law provides the application and approval process of the Economic Transformation and Facility Redevelop- ment Program. § 7.17 of the Mental Hygiene Law provides the programs, services, and operation of facilities in the Office of Mental Health. § 35 of the Tax Law provides the Economic Transformation and Facility redevelopment program Tax Credit. This bill adds the new definition of dosed facility to the credit. This bill seeks to adds to the definition of closed facility for the purposes of expanding the Economic Transformation and Facility Redevel- opment Program facilities that are currently operated as a psychiatric center, as defined by the Mental Hygiene Law, where at least three- fifths of the total acreage of such facility has been designated by the Commissioner of Mental Health as decommissioned or surplus, including the buildings thereon.   JUSTIFICATION: The Economic Transformation and Facility Redevelopment Program includes a series of wage and tax credits designed to entice new businesses to locate, expand and grow, utilizing formerly occupied state facilities. Initially aimed at redeveloping former prisons and juvenile detention facilities, the program was expanded in the SFY 2016-17 State Budget to also include certain former psychiatric hospitals with the goal of reviving these facilities into thriving economic engines of job creation. Meantime, in communities across New York, the state continues to operate psychiatric facilities, but on a much smaller footprint than originally planned for these purposes. The result is hundreds or thousands of vacant acres and buildings that are not being used, and with no plans for their reuse, yet they remain under state control, and off local community tax rolls. Many of these facilities are located in econom- ically distressed communities. For example, the St. Lawrence Psychiatric Center, located in Ogdensburg, continues to provide world-class medical care for hundreds of patients each year, and remains an important part of New York's fabric of mental health care, but utilizes a fraction of the land and buildings on the center's more than 422-acre campus. Recently, the Legislature has recognized the value of releasing some of the unused land and derelict, abandoned buildings at St. Lawrence Psychiatric Center for possible redevelopment, and passage of this meas- ure would enhance efforts to remove and redevelop blighted buildings, and transform communities by triggering revitalization efforts that can attract new economic activity and job creation.   LEGISLATIVE HISTORY: 2016: S7560 Referred to Commerce, Economic Development and Small Busi- ness.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately, provided that the amendments to sections 400 and 402 of the economic development law, made by sections one, two, three, and four of this act, and section 35 of the tax law, made by section five of this act, shall not affect the expiration and repeal of such sections and shall be deemed repealed therewith.
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A07189 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7189--A
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 12, 2017
                                       ___________
 
        Introduced  by M. of A. JENNE -- read once and referred to the Committee
          on Economic Development -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the  economic  development  law  and  the  tax  law,  in
          relation  to  granting eligibility for the economic transformation and
          facility redevelopment program tax credit to certain state psychiatric
          centers with decommissioned or surplus land
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph  (e)  of  subdivision  4  of section 400 of the
     2  economic development law, as added by section 1 of part QQ of chapter 60
     3  of the laws of 2016, is amended to read as follows:
     4    (e) provided, however that the requirement in paragraph  (a)  of  this
     5  subdivision  that the participant be a new business shall not apply to a
     6  closed facility as defined in paragraph (d) or (e) of subdivision eleven
     7  of this section.
     8    § 2. Paragraph (d) of subdivision 10 of section 400  of  the  economic
     9  development  law,  as added by section 2 of part QQ of chapter 60 of the
    10  laws of 2016, is amended to read as follows:
    11    (d) Notwithstanding paragraph (b) of this subdivision, with respect to
    12  a closed facility described in paragraph (d) or (e) of subdivision elev-
    13  en of this section, the economic transformation area shall consist  only
    14  of the acreage of the closed facility.
    15    §  3.  Paragraph  (d) of subdivision 11 of section 400 of the economic
    16  development law, as added by section 3 of part QQ of chapter 60  of  the
    17  laws  of  2016,  is  amended and a new paragraph (e) is added to read as
    18  follows:
    19    (d) a facility previously owned by the state, and when  operated,  was
    20  operated  as  a  psychiatric  facility  pursuant  to section 7.17 of the
    21  mental hygiene law, and located within the metropolitan commuter  trans-
    22  portation district but outside New York city[.]; or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08300-02-7

        A. 7189--A                          2
 
     1    (e)  a facility that currently operates as a psychiatric center pursu-
     2  ant to section 7.17 of the mental hygiene law,  where  at  least  three-
     3  fifths  of the total acreage of such facility has been designated by the
     4  commissioner of mental health as decommissioned  or  surplus,  including
     5  the buildings thereon.
     6    §  4. Subdivision 1 of section 402 of the economic development law, as
     7  amended by section 4 of part QQ of chapter 60 of the laws  of  2016,  is
     8  amended to read as follows:
     9    1. A business entity must submit a completed application as prescribed
    10  by  the  commissioner  by  the later of (a) the date that is three years
    11  after the date of the closure of the  closed  facility  located  in  the
    12  economic  transformation area in which the business entity would operate
    13  or (b) January first, two thousand fifteen.  Provided  however,  in  the
    14  case  of a closed facility described in paragraph (d) or (e) of subdivi-
    15  sion eleven of section four hundred of this article, a  business  entity
    16  must submit a completed application as prescribed by the commissioner by
    17  September first, two thousand [sixteen] seventeen.
    18    §  5.  Paragraph 1 of subdivision (h) of section 35 of the tax law, as
    19  amended by section 5 of part QQ of chapter 60 of the laws  of  2016,  is
    20  amended to read as follows:
    21    (1)  A  taxpayer which meets the requirements in this section shall be
    22  eligible to claim a credit on qualified investments with respect to  the
    23  project  for  which the certificate of eligibility is issued. The credit
    24  shall be equal to ten percent of the cost or  other  basis  for  federal
    25  income  tax  purposes  of the qualified investment at a closed facility.
    26  Provided however, for purposes of this credit only, a taxpayer  that  is
    27  the  owner  of  a  closed  facility described in paragraph (d) or (e) of
    28  subdivision eleven of section four hundred of the  economic  development
    29  law, shall be allowed to include in its cost or other basis of the qual-
    30  ified  investment  at the closed facility, any demolition costs incurred
    31  at such closed facility. Those demolition costs shall be limited to  the
    32  following  costs:  (i) asbestos removal costs, (ii) rental of demolition
    33  equipment, (iii) personnel costs to operate  the  demolition  equipment,
    34  (iv)  costs to remove and dispose of demolition debris, (v) the costs of
    35  any permits, licenses and insurance necessary for  the  demolition.  The
    36  total  amount  of investment tax credit allowed for all eligible partic-
    37  ipants under this subdivision for qualified investments located at  each
    38  closed facility shall not exceed eight million dollars. The credit shall
    39  be  equal  to  six percent of the cost or other basis for federal income
    40  tax purposes for all other qualified investments, but the credit allowed
    41  to a taxpayer may not exceed four million dollars.
    42    § 6. This act shall take effect immediately, provided that the  amend-
    43  ments  to  sections 400 and 402 of the economic development law, made by
    44  sections one, two, three and four of this act, and section 35 of the tax
    45  law, made by section five of this act, shall not affect  the  expiration
    46  and repeal of such sections and shall be deemed repealed therewith.
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