BILL NO A06479
SAME AS No same as
SPONSOR Kolb (MS)
COSPNSR Butler, Castelli, Conte, Reilich, Sayward, Katz
MLTSPNSR Amedore, Barclay, Blankenbush, Burling, Calhoun, Ceretto, Crouch,
Curran, Duprey, Finch, Fitzpatrick, Giglio, Goodell, Graf, Hawley,
Hayes, Johns, Jordan, Losquadro, McKevitt, McLaughlin, Miller D,
Miller J, Molinaro, Montesano, Oaks, Palmesano, Rabbitt, Raia,
Saladino, Smardz, Tedisco, Tenney, Tobacco
Rpld Art 18-B, add Art 18-B SS955 - 958, Gen Muni L; ren S3166 to be S3167, add
SS3166 & 3166-a, amd S3151, Pub Auth L; add S15-a, amd SS210, 606, 1456, 1511,
1455, 1502, 186-a & 186-e, Tax L
Establishes the New York state cornerstone program and the New York state
discovery program and net income base and other taxes.
S T A T E O F N E W Y O R K
________________________________________________________________________
6479
2011-2012 Regular Sessions
I N A S S E M B L Y
March 21, 2011
___________
Introduced by M. of A. KOLB, BUTLER, CASTELLI, CONTE, REILICH, SAYWARD
-- Multi-Sponsored by -- M. of A. AMEDORE, BARCLAY, BURLING, CALHOUN,
CROUCH, DUPREY, FINCH, FITZPATRICK, GIGLIO, HAWLEY, HAYES, JORDAN,
McKEVITT, J. MILLER, MOLINARO, MONTESANO, OAKS, RABBITT, RAIA, SALADI-
NO, TEDISCO, TOBACCO -- read once and referred to the Committee on
Ways and Means
AN ACT to amend the general municipal law, in relation to establishing
the New York state cornerstone program; and to repeal article 18-B of
such law relating thereto (Part A); to amend the public authorities
law and the tax law, in relation to establishing the New York state
discovery program (Part B); and to amend the tax law, in relation to
net income base and in relation to certain taxes (Part C)
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 components of legislation relating
2 to the "New York state cornerstone program and the New York state
3 discovery program". Each component is wholly contained within a Part
4 identified as Parts A through C. 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 S 1-a. Statement of legislative findings and declaration. It is here-
13 by found and declared that there exists within the state high unemploy-
14 ment, limited new job creation, a dependence on public assistance
15 income, insufficient support for industrial and commercial businesses,
16 and unnecessarily high taxes. These severe conditions require state
17 government to target certain industries in order to stimulate private
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05162-02-1
A. 6479 2
1 investment, private business development and job creation. It should be
2 the public policy of the state to help promote the development of new
3 businesses, rather than deter them with punitive regulation and exces-
4 sive taxes. It is further found and declared that it is the public poli-
5 cy of the state to achieve these goals through the mutual cooperation of
6 all levels of state and local government, the business community and
7 academic institutions.
8 PART A
9 Section 1. Article 18-B of the general municipal law is REPEALED.
10 S 2. The general municipal law is amended by adding a new article 18-B
11 to read as follows:
12 ARTICLE 18-B
13 NEW YORK STATE CORNERSTONE PROGRAM
14 SECTION 955. NEW YORK CORNERSTONE PROGRAM ESTABLISHED.
15 956. RESPONSIBILITIES OF THE COMMISSIONER.
16 957. CORNERSTONE DEVELOPMENT BOARD.
17 958. REPORTING REQUIREMENTS.
18 S 955. NEW YORK CORNERSTONE PROGRAM ESTABLISHED. THERE IS HEREBY
19 ESTABLISHED THE NEW YORK CORNERSTONE PROGRAM.
20 S 956. RESPONSIBILITIES OF THE COMMISSIONER. 1. THE COMMISSIONER OF
21 THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL, IN CONSULTATION WITH THE
22 DIRECTOR OF THE BUDGET, THE COMMISSIONER OF LABOR, AND THE COMMISSIONER
23 OF TAXATION AND FINANCE, PROMULGATE RULES AND REGULATIONS, WHICH,
24 NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
25 TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS, RELATING TO:
26 (A) THE APPLICATION PROCESS;
27 (B) DEFINING TYPES OF BUSINESSES ELIGIBLE, INCLUDING BUT NOT LIMITED
28 TO MANUFACTURING, HIGH-TECH, BIO-TECH, CLEAN-TECH AND AGRI-BUSINESS;
29 (C) LIMITING BUSINESSES TO TEN YEARS OF PARTICIPATION;
30 (D) CERTIFICATION BY THE COMMISSIONER FOR ELIGIBILITY OF BUSINESS
31 ENTERPRISES FOR BENEFITS REFERRED TO IN THIS ARTICLE. CRITERIA FOR
32 CERTIFICATION SHALL INCLUDE, BUT NOT BE LIMITED TO:
33 (I) REQUIRING A BUSINESS TO HAVE BEEN OPERATIONAL IN NEW YORK STATE
34 FOR AT LEAST TEN CONSECUTIVE YEARS PRIOR TO APPLYING TO THE CORNERSTONE
35 PROGRAM;
36 (II) REQUIRING A BUSINESS TO SHOW PROOF THAT THEY WILL HAVE TO LOWER
37 EMPLOYMENT LEVELS WITHOUT CERTIFICATION IN THE PROGRAM;
38 (III) REQUIRING A BUSINESS TO COMMIT TO MAINTAINING OR INCREASING
39 CURRENT EMPLOYMENT LEVELS TO QUALIFY FOR TAX BENEFITS;
40 (IV) WHETHER CERTIFICATION WILL HAVE THE UNDESIRED EFFECT OF CAUSING
41 INDIVIDUALS TO TRANSFER FROM EXISTING EMPLOYMENT WITH ANOTHER BUSINESS
42 ENTERPRISE TO SIMILAR EMPLOYMENT WITH THE BUSINESS ENTERPRISE SO CERTI-
43 FIED, AND TRANSFERRING EXISTING EMPLOYMENT FROM ONE OR MORE OTHER MUNI-
44 CIPALITIES, TOWNS OR VILLAGES IN THE STATE;
45 (V) WHETHER SUCH ENTERPRISE IS LIKELY TO ENHANCE THE ECONOMIC CLIMATE
46 OF THE STATE; AND
47 (VI) WHETHER THE COMMISSIONER OF LABOR ESTABLISHES THAT SUCH BUSINESS
48 ENTERPRISE, DURING THE TEN YEARS PRECEDING THE SUBMISSION OF AN APPLICA-
49 TION FOR CERTIFICATION, HAS ENGAGED IN A SUBSTANTIAL VIOLATION OR A
50 PATTERN OF VIOLATIONS OF LAWS REGULATING UNEMPLOYMENT INSURANCE, WORKERS
51 COMPENSATION, PUBLIC WORK, CHILD LABOR, EMPLOYMENT OF MINORITIES AND
52 WOMEN, SAFETY AND HEALTH, OR OTHER LAWS FOR THE PROTECTION OF WORKERS AS
53 DETERMINED BY FINAL JUDGMENT OF A JUDICIAL OR ADMINISTRATIVE PROCEEDING.
A. 6479 3
1 2. THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL,
2 IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, THE COMMISSIONER OF
3 LABOR, AND THE COMMISSIONER OF TAXATION AND FINANCE, ESTABLISH A COST
4 BENEFIT ANALYSIS.
5 3. THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL,
6 IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, THE COMMISSIONER OF
7 LABOR, AND THE COMMISSIONER OF TAXATION AND FINANCE, ESTABLISH A PROGRAM
8 AND PROPOSE LEGISLATION GRANTING TAX EXEMPTIONS PREVIOUSLY APPLICABLE TO
9 EMPIRE ZONES FOR BUSINESS ENTERPRISES ELIGIBLE UNDER THE CORNERSTONE
10 PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE, TO THE GOVERNOR AND LEGIS-
11 LATURE WITHIN ONE HUNDRED EIGHTY DAYS FROM THE EFFECTIVE DATE OF THIS
12 ARTICLE.
13 S 957. CORNERSTONE DEVELOPMENT BOARD. 1. THE CORNERSTONE DEVELOPMENT
14 BOARD IS HEREBY CREATED.
15 2. SUCH BOARD SHALL CONSIST OF THE COMMISSIONER OF TAXATION AND
16 FINANCE, THE DIRECTOR OF THE BUDGET, THE COMMISSIONER OF LABOR AND TWO
17 MEMBERS TO BE APPOINTED BY THE GOVERNOR; ONE MEMBER TO BE APPOINTED BY
18 THE TEMPORARY PRESIDENT OF THE SENATE; ONE MEMBER TO BE APPOINTED BY THE
19 SPEAKER OF THE ASSEMBLY; ONE MEMBER TO BE APPOINTED BY THE MINORITY
20 LEADER OF THE SENATE AND ONE MEMBER TO BE APPOINTED BY THE MINORITY
21 LEADER OF THE ASSEMBLY.
22 3. THE GOVERNOR SHALL DESIGNATE FROM AMONG THE VOTING MEMBERS THE
23 CHAIR OF THE BOARD. EACH MEMBER OF THE BOARD SHALL BE ENTITLED TO DESIG-
24 NATE A REPRESENTATIVE TO ATTEND MEETINGS OF THE BOARD IN HIS OR HER
25 PLACE, AND TO VOTE OR OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER
26 ABSENCE.
27 4. NOTICE OF SUCH DESIGNATION SHALL BE FURNISHED IN WRITING TO THE
28 BOARD BY THE DESIGNATING MEMBER.
29 5. A REPRESENTATIVE SHALL SERVE AT THE PLEASURE OF THE DESIGNATING
30 MEMBER.
31 6. A REPRESENTATIVE SHALL NOT BE AUTHORIZED TO DELEGATE ANY OF HIS OR
32 HER DUTIES OR FUNCTIONS TO ANY OTHER PERSON.
33 S 958. REPORTING REQUIREMENTS. 1. THE DEPARTMENT OF AUDIT AND
34 CONTROL, THE DEPARTMENT OF TAXATION AND FINANCE AND THE DEPARTMENT OF
35 ECONOMIC DEVELOPMENT SHALL PREPARE REPORTS ON THE MANAGEMENT AND THE
36 ECONOMIC AND FISCAL IMPACT OF THE CORNERSTONE PROGRAM.
37 2. THE ANALYSIS OF THE FISCAL AND ECONOMIC IMPACT OF THE PROGRAM SHALL
38 INCLUDE, BUT NOT BE LIMITED TO: A REVIEW OF THE COST OF PROVIDING THE
39 TAX BENEFITS REFERRED TO IN THIS ARTICLE; PROGRESS OF THE PROGRAM;
40 NUMBER OF TAX CREDITS CLAIMED BY EACH CERTIFIED BUSINESS; NUMBER OF JOBS
41 CREATED AND/OR RETAINED BY EACH BUSINESS AND ALL OTHER INFORMATION
42 REQUESTED AND NOT PROHIBITED BY LAW.
43 3. SUCH REPORTS SHALL BE TRANSMITTED TO THE GOVERNOR AND THE LEGISLA-
44 TURE BY SEPTEMBER FIRST, TWO THOUSAND TWELVE AND EVERY YEAR THEREAFTER
45 AND SHALL BE POSTED ONLINE FOR FULL PUBLIC DISCLOSURE.
46 S 3. This act shall take effect immediately; provided, however, that
47 any rules and regulations necessary to carry out the provisions of this
48 act shall be promulgated before such effective date.
49 PART B
50 Section 1. This act shall be known and may be cited as the "New York
51 state discovery act".
52 S 2. Section 3166 of the public authorities law is renumbered section
53 3167 and a new section 3166 is added to read as follows:
A. 6479 4
1 S 3166. NEW YORK STATE DISCOVERY PROGRAM. 1. THE NEW YORK STATE
2 DISCOVERY PROGRAM IS HEREBY ESTABLISHED.
3 2. THE FOUNDATION SHALL, AFTER CONSULTATION WITH THE DIRECTOR OF THE
4 BUDGET, THE COMMISSIONER OF LABOR, AND THE COMMISSIONER OF TAXATION AND
5 FINANCE, PROMULGATE RULES AND REGULATIONS, WHICH, NOTWITHSTANDING ANY
6 PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT,
7 MAY BE ADOPTED ON AN EMERGENCY BASIS, RELATING TO:
8 (A) THE APPLICATION PROCESS;
9 (B) DEFINING TYPES OF BUSINESSES ELIGIBLE, INCLUDING BUT NOT LIMITED
10 TO MANUFACTURING, HIGH-TECH, BIO-TECH, CLEAN-TECH AND AGRI-BUSINESS;
11 (C) LIMITING BUSINESSES TO TEN YEARS OF PARTICIPATION;
12 (D) CERTIFICATION BY THE FOUNDATION AS TO THE ELIGIBILITY OF BUSINESS
13 ENTERPRISES FOR BENEFITS REFERRED TO IN THIS SECTION, WHICH SHALL BE
14 GOVERNED BY CRITERIA INCLUDING, BUT NOT LIMITED TO:
15 (I) REQUIRING AN ELIGIBLE BUSINESS TO BE A START-UP BUSINESS, OR A
16 BUSINESS OPERATING IN THE STATE FOR TWO YEARS OR LESS;
17 (II) A BUSINESS MUST OFFER INTERNSHIPS TO LOCAL HIGH SCHOOL STUDENTS,
18 BOCES STUDENTS AND COLLEGE STUDENTS PER A PLAN DEVELOPED BY THE FOUNDA-
19 TION;
20 (III) A BUSINESS MUST COMMIT TO INCREASING CURRENT EMPLOYMENT LEVELS
21 TO QUALIFY FOR TAX BENEFITS;
22 (IV) WHETHER CERTIFICATION WILL HAVE THE UNDESIRED EFFECT OF CAUSING
23 INDIVIDUALS TO TRANSFER FROM EXISTING EMPLOYMENT WITH ANOTHER BUSINESS
24 ENTERPRISE TO SIMILAR EMPLOYMENT WITH THE BUSINESS ENTERPRISE SO CERTI-
25 FIED, AND TRANSFERRING EXISTING EMPLOYMENT FROM ONE OR MORE OTHER MUNI-
26 CIPALITIES, TOWNS OR VILLAGES IN THE STATE;
27 (V) WHETHER SUCH ENTERPRISE IS LIKELY TO ENHANCE THE ECONOMIC CLIMATE
28 OF THE STATE;
29 (VI) WHETHER THE COMMISSIONER OF LABOR ESTABLISHES THAT SUCH BUSINESS
30 ENTERPRISE, DURING THE TWO YEARS PRECEDING THE SUBMISSION OF AN APPLICA-
31 TION FOR CERTIFICATION, HAS ENGAGED IN A SUBSTANTIAL VIOLATION OR A
32 PATTERN OF VIOLATIONS OF LAWS REGULATING UNEMPLOYMENT INSURANCE, WORKERS
33 COMPENSATION, PUBLIC WORK, CHILD LABOR, EMPLOYMENT OF MINORITIES AND
34 WOMEN, SAFETY AND HEALTH, OR OTHER LAWS FOR THE PROTECTION OF WORKERS AS
35 DETERMINED BY FINAL JUDGMENT OF A JUDICIAL OR ADMINISTRATIVE PROCEEDING;
36 AND
37 (VII) WHETHER SUCH BUSINESS MEETS THE REQUIREMENTS OF THE COST BENEFIT
38 ANALYSIS AS ESTABLISHED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
39 3. THE DEPARTMENT OF AUDIT AND CONTROL, THE DEPARTMENT OF TAXATION AND
40 FINANCE AND THE FOUNDATION SHALL PREPARE REPORTS ON THE MANAGEMENT AND
41 THE ECONOMIC AND FISCAL IMPACT OF THE DISCOVERY PROGRAM. THE ANALYSIS OF
42 THE FISCAL AND ECONOMIC IMPACT OF THE PROGRAM SHALL INCLUDE, BUT NOT BE
43 LIMITED TO: A REVIEW OF THE COST OF PROVIDING THE TAX BENEFITS REFERRED
44 TO IN THIS ARTICLE; PROGRESS OF THE PROGRAM; NUMBER OF TAX CREDITS
45 CLAIMED BY EACH CERTIFIED BUSINESS; NUMBER OF JOBS CREATED BY EACH BUSI-
46 NESS AND ALL OTHER INFORMATION REQUESTED AND NOT PROHIBITED BY LAW. SUCH
47 REPORTS SHALL BE TRANSMITTED TO THE GOVERNOR AND THE LEGISLATURE BY
48 SEPTEMBER FIRST, TWO THOUSAND TWELVE AND EVERY YEAR THEREAFTER AND SHALL
49 BE POSTED ONLINE FOR FULL PUBLIC DISCLOSURE.
50 4. THE FOUNDATION SHALL PROVIDE GRANTS OF UP TO TWO THOUSAND DOLLARS
51 FOR EVERY INTERNSHIP DEVELOPED UNDER THIS PROGRAM, TO BE PAID FOR OUT OF
52 THE JOB DEVELOPMENT FUND ESTABLISHED PURSUANT TO SECTION THIRTY-ONE
53 HUNDRED SIXTY-SIX-A OF THIS ARTICLE. SUCH GRANT ALLOCATIONS SHALL BE
54 DIVIDED EVENLY BETWEEN THE CERTIFIED BUSINESS AND THE CORRESPONDING
55 INSTITUTION OF HIGHER EDUCATION TO COVER COSTS ASSOCIATED WITH THE
56 DEVELOPMENT OF SUCH INTERNSHIPS.
A. 6479 5
1 S 3. Subdivision 3 of section 3151 of the public authorities law, as
2 amended by section 1 of part CC of chapter 59 of the laws of 2006, is
3 amended to read as follows:
4 3. Membership. The voting members of the foundation board shall
5 consist of: the executive director of the New York state foundation for
6 science, technology and innovation who shall be a permanent member of
7 the foundation board, [seven] ELEVEN members from the private sector,
8 two of whom shall be appointed by the temporary president of the senate,
9 two of whom shall be appointed by the speaker of the assembly, TWO OF
10 WHOM SHALL BE APPOINTED BY THE MINORITY LEADER OF THE SENATE, TWO OF
11 WHOM SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY and three
12 of whom shall be appointed by the governor with the advice and consent
13 of the senate, provided that all [seven] ELEVEN members are employed
14 within the private sector throughout the time of their appointment to
15 the foundation board. The private sector members shall demonstrate
16 leadership and expertise and be broadly representative across different
17 business sectors of the state and shall include, but not be limited to
18 representatives of the industrial technology research and development
19 sector, small business high technology sector; minority and women busi-
20 ness enterprises, the venture capital industry; [five] SEVEN additional
21 members shall be appointed from among the academic, government, and
22 workforce development sectors, three of whom shall be appointed by the
23 governor, with the advice and consent of the senate, one of whom shall
24 be appointed by the temporary president of the senate, [and] one of whom
25 shall be appointed by the speaker of the assembly[;], ONE OF WHOM SHALL
26 BE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY, ONE OF WHOM SHALL
27 BE APPOINTED BY THE MINORITY LEADER OF THE SENATE; and representatives
28 of the regional partnerships as established in this section shall also
29 serve as non-voting members of the board, provided that each partnership
30 shall nominate one of its members to serve as a non-voting member of the
31 board. All members of the foundation board shall serve at the pleasure
32 of the appointing authority and, notwithstanding any other provision of
33 law, shall be subject to sections seventy-three and seventy-four of the
34 public officers law. The chair of the foundation board shall be
35 appointed by the governor from among the private sector members with the
36 advice and consent of the senate. All other officers of the board shall
37 be elected from among the voting members of the board of directors by
38 the majority vote of currently serving voting members of the foundation
39 board. The executive director of the foundation shall be appointed by
40 the governor, with the advice and consent of the senate. The executive
41 director of the New York state office of science, technology and academ-
42 ic research shall become the interim executive director of the founda-
43 tion, and shall be the executive director of the foundation until the
44 executive director of the foundation is appointed by the governor, with
45 the advice and consent of the senate. The members of the New York state
46 office of science, technology and academic research advisory council
47 shall serve as interim voting members of the foundation board until the
48 appointing authority appoints voting members of the foundation board.
49 Nothing contained herein shall prohibit a member of the New York state
50 office of science, technology and academic research advisory council
51 from being appointed as a voting member of the foundation board by the
52 appropriate appointing authority.
53 S 4. The public authorities law is amended by adding a new section
54 3166-a to read as follows:
A. 6479 6
1 S 3166-A. JOB DEVELOPMENT FUND. THERE IS HEREBY ESTABLISHED IN THE
2 JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE STATE
3 COMPTROLLER A FUND TO BE KNOWN AS THE "JOB DEVELOPMENT FUND".
4 2. THE FUND SHALL CONSIST OF MONIES APPROPRIATED FOR THE FOUNDATION
5 FOR SCIENCE, TECHNOLOGY AND INNOVATION.
6 3. MONEYS OF THE FUND SHALL BE EXPENDED FOR THE PURPOSES OF CARRYING
7 OUT THE PROVISIONS OF SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THIS ARTI-
8 CLE. MONEYS SHALL BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF
9 THE STATE COMPTROLLER ON VOUCHERS APPROVED BY THE FOUNDATION FOR
10 SCIENCE, TECHNOLOGY AND INNOVATION. ANY INTEREST RECEIVED BY THE COMP-
11 TROLLER ON MONEYS ON DEPOSIT IN THE JOB DEVELOPMENT FUND SHALL BE
12 RETAINED IN AND BECOME PART OF SUCH FUND.
13 S 5. The tax law is amended by adding a new section 15-a to read as
14 follows:
15 S 15-A. DISCOVERY ZONE PROPERTY TAX CREDIT. FOR A BUSINESS ENTERPRISE
16 WHICH IS FIRST CERTIFIED UNDER THIS SECTION ON OR AFTER JULY FIRST, TWO
17 THOUSAND ELEVEN, THE CREDIT SHALL BE FOR A PERIOD OF TEN YEARS AND SHALL
18 NOT EXCEED THIRTY PERCENT OF THE ELIGIBLE REAL PROPERTY TAXES PAID IN
19 THE CURRENT TAXABLE YEAR OF ELIGIBILITY.
20 S 6. Section 210 of the tax law is amended by adding two new subdivi-
21 sions 43 and 44 to read as follows:
22 43. DISCOVERY INVESTMENT CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A
23 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
24 BY THIS ARTICLE WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO
25 SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE
26 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
27 FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER
28 TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF
29 BUILDINGS, DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION, BUT ONLY IF
30 THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH PROP-
31 ERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION
32 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
33 OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION WHICH WAS
34 COMMENCED DURING SUCH PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY,
35 THE CREDIT SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST OR OTHER
36 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
37 PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY A
38 FRACTION THE NUMERATOR OF WHICH SHALL BE THE EXPENDITURES PAID OR
39 INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF
40 WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
41 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
42 (B) A CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO
43 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
44 INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (1) ARE DEPRECIABLE
45 PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
46 CODE, (2) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (3) ARE ACQUIRED BY
47 PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
48 INTERNAL REVENUE CODE, AND (4) ARE (I) PRINCIPALLY USED BY THE TAXPAYER
49 IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
50 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
51 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
52 MENT FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAY-
53 ER'S TRADE OR BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV)
54 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
55 NESS AS A BROKER OR DEALER IN CONNECTION WITH THE PURCHASE OR SALE
56 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
A. 6479 7
1 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF STOCKS,
2 BONDS OR OTHER SECURITIES AS DEFINED IN SECTION FOUR HUNDRED
3 SEVENTY-FIVE (C)(2) OF THE INTERNAL REVENUE CODE, OR OF COMMODITIES AS
4 DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE
5 CODE, OR (V) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S
6 TRADE OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES FOR A REGU-
7 LATED INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE
8 OF THE INTERNAL REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN ORIG-
9 INATION SERVICES TO CUSTOMERS IN CONNECTION WITH THE PURCHASE OR SALE
10 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
11 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF SECURITIES
12 AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (C)(2) OF THE INTERNAL
13 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
14 PROPERTY PURCHASED BY A TAXPAYER AFFILIATED WITH A REGULATED BROKER,
15 DEALER OR REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT UNDER THIS
16 SUBDIVISION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
17 DEALER OR REGISTERED INVESTMENT ADVISER IN ACCORDANCE WITH THIS SUBDIVI-
18 SION. FOR PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY USED IN
19 QUALIFYING USES, THE USES BY THE TAXPAYER DESCRIBED IN CLAUSES (IV) AND
20 (V) OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE USES BY THE
21 TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND REGISTERED
22 INVESTMENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES MAY BE AGGRE-
23 GATED. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED THE CREDIT
24 PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I) EIGHTY
25 PERCENT OR MORE OF THE EMPLOYEES PERFORMING THE ADMINISTRATIVE AND
26 SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE QUALIFYING USES OF
27 SUCH EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER OF
28 EMPLOYEES THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS RESULT-
29 ING FROM OR RELATED TO THE QUALIFYING USES OF SUCH EQUIPMENT AND ARE
30 LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS
31 CLAIMED IS EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVERAGE
32 NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN THIS
33 STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING THE YEAR FOR
34 WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES LOCATED IN
35 THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS
36 EQUAL TO OR GREATER THAN NINETY PERCENT OF THE NUMBER OF EMPLOYEES
37 LOCATED IN THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINE-
38 TY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAYER IN NINE-
39 TEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE YEAR ENDING
40 AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT. IF THE
41 TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE AFTER THE TAXABLE YEAR
42 BEGINNING IN NINETEEN HUNDRED NINETY-EIGHT, THEN THE TAXPAYER IS NOT
43 REQUIRED TO SATISFY THE EMPLOYMENT TEST PROVIDED IN THE PRECEDING
44 SENTENCE OF THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR. FOR PURPOSES
45 OF ITEM (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED ON THE
46 NUMBER OF EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF THE FIRST
47 TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF THE USES
48 OF THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY IS
49 PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER EACH AFFILIATE USING
50 THE PROPERTY MUST SATISFY THIS EMPLOYMENT TEST OR THIS EMPLOYMENT TEST
51 MUST BE SATISFIED THROUGH THE AGGREGATION OF THE EMPLOYEES OF THE
52 TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND REGISTERED
53 INVESTMENT ADVISER USING THE PROPERTY. FOR PURPOSES OF THIS SUBDIVISION,
54 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES OF THIS
55 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
56 INTO WARES SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
A. 6479 8
1 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
2 PROCESS BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER SIMILAR
3 EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF GOODS SHALL INCLUDE
4 MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCIPALLY
5 USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
6 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND SHALL
7 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
8 AGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
9 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "INDUSTRIAL WASTE
10 TREATMENT FACILITIES", "AIR POLLUTION CONTROL FACILITIES" AND "RESEARCH
11 AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS ASCRIBED THERETO BY
12 CLAUSES (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH FOUR OF THIS PARA-
13 GRAPH, AND THE PROVISIONS OF SUBPARAGRAPH THREE OF THIS PARAGRAPH SHALL
14 APPLY.
15 (C) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
16 WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
17 ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
18 IT LEASES TO ANY OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
19 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
20 INVESTMENT ADVISER THAT USES SUCH PROPERTY IN ACCORDANCE WITH CLAUSE
21 (IV) OR (V) OF SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF THIS SUBDIVISION.
22 FOR PURPOSES OF THE PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT TO
23 LEASE OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED
24 A LEASE. PROVIDED, HOWEVER, IN DETERMINING WHETHER A TAXPAYER SHALL BE
25 ALLOWED A CREDIT UNDER THIS SUBDIVISION WITH RESPECT TO SUCH PROPERTY,
26 ANY ELECTION MADE WITH RESPECT TO SUCH PROPERTY PURSUANT TO THE
27 PROVISIONS OF PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED
28 SIXTY-EIGHT OF THE INTERNAL REVENUE CODE, AS SUCH PARAGRAPH WAS IN
29 EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN
30 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
31 (D) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
32 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
33 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
34 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. ANY REFUND PAID PURSUANT
35 TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF
36 TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER,
37 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
38 44. DISCOVERY WAGE TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CRED-
39 IT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY
40 THIS ARTICLE, WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO SECTION
41 THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE AMOUNT
42 OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVI-
43 SION.
44 (B) "DISCOVERY WAGES" MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME
45 EMPLOYMENT DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID BY
46 A CERTIFIED BUSINESS AS DEFINED BY THE FOUNDATION AS REQUIRED IN ITS
47 RESPONSIBILITIES.
48 (C) THE CREDIT PROVIDED IN THIS SUBDIVISION SHALL BE EQUAL TO THE
49 PRODUCT OF THE GROSS WAGES PAID AND SIX AND EIGHTY-FIVE HUNDREDTHS
50 PERCENT FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
51 (D) "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE AVER-
52 AGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN THE
53 PREVIOUS TAXABLE YEAR.
54 (E) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
55 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
56 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
A. 6479 9
1 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
2 TAX OTHERWISE DUE BY REASON OF PARAGRAPH (C) OF THIS SUBDIVISION, MAY BE
3 CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
4 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
5 S 7. Section 606 of the tax law is amended by adding two new
6 subsections (j-2) and (j-3) to read as follows:
7 (J-2) DISCOVERY INVESTMENT CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
8 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
9 BY THIS ARTICLE WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO
10 SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE
11 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
12 FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER
13 TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF
14 BUILDINGS, DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION, BUT ONLY IF
15 THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH PROP-
16 ERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION
17 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
18 OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION WHICH WAS
19 COMMENCED DURING SUCH PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY,
20 THE CREDIT SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST OR OTHER
21 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
22 PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY A
23 FRACTION THE NUMERATOR OF WHICH SHALL BE THE EXPENDITURES PAID OR
24 INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF
25 WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
26 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
27 (2) A CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION WITH RESPECT TO
28 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
29 INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (A) ARE DEPRECIABLE
30 PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
31 CODE, (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED BY
32 PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
33 INTERNAL REVENUE CODE, AND (D) ARE (I) PRINCIPALLY USED BY THE TAXPAYER
34 IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
35 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
36 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
37 MENT FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAY-
38 ER'S TRADE OR BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV)
39 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
40 NESS AS A BROKER OR DEALER IN CONNECTION WITH THE PURCHASE OR SALE
41 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
42 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF STOCKS,
43 BONDS OR OTHER SECURITIES AS DEFINED IN SECTION FOUR HUNDRED
44 SEVENTY-FIVE (C)(2) OF THE INTERNAL REVENUE CODE, OR OF COMMODITIES AS
45 DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE
46 CODE, OR (V) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S
47 TRADE OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES FOR REGU-
48 LATED INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE
49 OF THE INTERNAL REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN ORIG-
50 INATION SERVICES TO CUSTOMERS IN CONNECTION WITH THE PURCHASE OR SALE
51 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
52 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF SECURITIES
53 AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE(C)(2) OF THE INTERNAL
54 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
55 PROPERTY PURCHASED BY A TAXPAYER AFFILIATED WITH A REGULATED BROKER,
56 DEALER OR REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT UNDER THIS
A. 6479 10
1 SUBSECTION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
2 DEALER OR REGISTERED INVESTMENT ADVISER IN ACCORDANCE WITH THIS
3 SUBSECTION. FOR PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY
4 USED IN QUALIFYING USES, THE USES BY THE TAXPAYER DESCRIBED IN CLAUSES
5 (IV) AND (V) OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE
6 USES BY THE TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND
7 REGISTERED INVESTMENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES MAY
8 BE AGGREGATED. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED THE
9 CREDIT PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I)
10 EIGHTY PERCENT OR MORE OF THE EMPLOYEES PERFORMING THE ADMINISTRATIVE
11 AND SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE QUALIFYING USES
12 OF SUCH EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER
13 OF EMPLOYEES THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS
14 RESULTING FROM OR RELATED TO THE QUALIFYING USES OF SUCH EQUIPMENT AND
15 ARE LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT
16 IS CLAIMED IS EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVER-
17 AGE NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN
18 THIS STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING THE YEAR
19 FOR WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES
20 LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS
21 CLAIMED IS EQUAL TO OR GREATER THAN NINETY PERCENT OF THE NUMBER OF
22 EMPLOYEES LOCATED IN THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN
23 HUNDRED NINETY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAY-
24 ER IN NINETEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE
25 YEAR ENDING AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT.
26 IF THE TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE AFTER THE TAXABLE
27 YEAR BEGINNING IN NINETEEN HUNDRED NINETY-EIGHT, THEN THE TAXPAYER IS
28 NOT REQUIRED TO SATISFY THE EMPLOYMENT TEST PROVIDED IN THE PRECEDING
29 SENTENCE OF THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR. FOR PURPOSES
30 OF ITEM (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED ON THE
31 NUMBER OF EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF THE FIRST
32 TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF THE USES
33 OF THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY IS
34 PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER EACH AFFILIATE USING
35 THE PROPERTY MUST SATISFY THIS EMPLOYMENT TEST OR THIS EMPLOYMENT TEST
36 MUST BE SATISFIED THROUGH THE AGGREGATION OF THE EMPLOYEES OF THE
37 TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND REGISTERED
38 INVESTMENT ADVISOR USING THE PROPERTY. FOR PURPOSES OF THIS SUBSECTION,
39 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES OF THIS
40 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
41 INTO WARES SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
42 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
43 PROCESS BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER SIMILAR
44 EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF GOODS SHALL INCLUDE
45 MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCIPALLY
46 USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
47 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND SHALL
48 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
49 AGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
50 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "INDUSTRIAL WASTE
51 TREATMENT FACILITIES", "AIR POLLUTION CONTROL FACILITIES" AND "RESEARCH
52 AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS ASCRIBED THERETO BY
53 CLAUSES (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH (D) OF THIS PARA-
54 GRAPH, AND THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH.
55 (3) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBSECTION
56 WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
A. 6479 11
1 ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
2 IT LEASES TO ANY OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
3 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
4 INVESTMENT ADVISER THAT USES SUCH PROPERTY IN ACCORDANCE WITH CLAUSE
5 (IV) OR (V) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION. FOR
6 PURPOSES OF THE PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT TO LEASE
7 OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED A
8 LEASE. PROVIDED, HOWEVER, IN DETERMINING WHETHER A TAXPAYER SHALL BE
9 ALLOWED A CREDIT UNDER THIS SUBSECTION WITH RESPECT TO SUCH PROPERTY,
10 ANY ELECTION MADE WITH RESPECT TO SUCH PROPERTY PURSUANT TO THE
11 PROVISIONS OF PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED
12 SIXTY-EIGHT OF THE INTERNAL REVENUE CODE, AS SUCH PARAGRAPH WAS IN
13 EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN
14 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
15 (4) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
16 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
17 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
18 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. ANY REFUND PAID PURSU-
19 ANT TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT
20 OF TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER,
21 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
22 (J-3) DISCOVERY WAGE TAX CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
23 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
24 BY THIS ARTICLE, WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO
25 SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE
26 AMOUNT OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH THREE OF THIS
27 SUBSECTION.
28 (2) "DISCOVERY WAGES" MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME
29 EMPLOYMENT DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID BY
30 A CERTIFIED BUSINESS AS DEFINED BY THE FOUNDATION AS REQUIRED IN ITS
31 RESPONSIBILITIES.
32 (3) THE CREDIT PROVIDED IN THIS SUBDIVISION SHALL BE EQUAL TO THE
33 PRODUCT OF THE GROSS WAGES PAID AND SIX AND EIGHTY-FIVE HUNDREDTHS
34 PERCENT FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
35 (4) "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE AVER-
36 AGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN THE
37 PREVIOUS TAXABLE YEAR.
38 (5) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
39 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
40 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
41 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
42 TAX OTHERWISE DUE BY REASON OF PARAGRAPH THREE OF THIS SUBSECTION, MAY
43 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
44 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
45 S 8. Section 1456 of the tax law is amended by adding two new
46 subsections (x) and (y) to read as follows:
47 (X) DISCOVERY INVESTMENT CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
48 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
49 BY THIS ARTICLE WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO
50 SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE
51 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
52 FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER
53 TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF
54 BUILDINGS, DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION, BUT ONLY IF
55 THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH PROP-
56 ERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION
A. 6479 12
1 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
2 OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION WHICH WAS
3 COMMENCED DURING SUCH PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY,
4 THE CREDIT SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST OR OTHER
5 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
6 PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY A
7 FRACTION THE NUMERATOR OF WHICH SHALL BE THE EXPENDITURES PAID OR
8 INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF
9 WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
10 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
11 (2) A CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION WITH RESPECT TO
12 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
13 INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (A) ARE DEPRECIABLE
14 PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
15 CODE, (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED BY
16 PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
17 INTERNAL REVENUE CODE, AND (D) ARE (I) PRINCIPALLY USED BY THE TAXPAYER
18 IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
19 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
20 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
21 MENT FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAY-
22 ER'S TRADE OR BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV)
23 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
24 NESS AS A BROKER OR DEALER IN CONNECTION WITH THE PURCHASE OR SALE
25 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
26 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF STOCKS,
27 BONDS OR OTHER SECURITIES AS DEFINED IN SECTION FOUR HUNDRED
28 SEVENTY-FIVE (C)(2) OF THE INTERNAL REVENUE CODE, OR OF COMMODITIES AS
29 DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE
30 CODE, OR (V) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S
31 TRADE OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES FOR A REGU-
32 LATED INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE
33 OF THE INTERNAL REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN ORIG-
34 INATION SERVICES TO CUSTOMERS IN CONNECTION WITH THE PURCHASE OR SALE
35 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
36 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF SECURITIES
37 AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (C)(2) OF THE INTERNAL
38 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
39 PROPERTY PURCHASED BY A TAXPAYER AFFILIATED WITH A REGULATED BROKER,
40 DEALER OR REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT UNDER THIS
41 SUBSECTION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
42 DEALER OR REGISTERED INVESTMENT ADVISER IN ACCORDANCE WITH THIS
43 SUBSECTION. FOR PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY
44 USED IN QUALIFYING USES, THE USES BY THE TAXPAYER DESCRIBED IN CLAUSES
45 (IV) AND (V) OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE
46 USES BY THE TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND
47 REGISTERED INVESTMENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES MAY
48 BE AGGREGATED. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED THE
49 CREDIT PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I)
50 EIGHTY PERCENT OR MORE OF THE EMPLOYEES PERFORMING THE ADMINISTRATIVE
51 AND SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE QUALIFYING USES
52 OF SUCH EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER
53 OF EMPLOYEES THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS
54 RESULTING FROM OR RELATED TO THE QUALIFYING USES OF SUCH EQUIPMENT AND
55 ARE LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT
56 IS CLAIMED IS EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVER-
A. 6479 13
1 AGE NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN
2 THIS STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING THE YEAR
3 FOR WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES
4 LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS
5 CLAIMED IS EQUAL TO OR GREATER THAN NINETY PERCENT OF THE NUMBER OF
6 EMPLOYEES LOCATED IN THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN
7 HUNDRED NINETY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAY-
8 ER IN NINETEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE
9 YEAR ENDING AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT.
10 IF THE TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE AFTER THE TAXABLE
11 YEAR BEGINNING IN NINETEEN HUNDRED NINETY-EIGHT, THEN THE TAXPAYER IS
12 NOT REQUIRED TO SATISFY THE EMPLOYMENT TEST PROVIDED IN THE PRECEDING
13 SENTENCE OF THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR. FOR PURPOSES
14 OF ITEM (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED ON THE
15 NUMBER OF EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF THE FIRST
16 TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF THE USES
17 OF THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY IS
18 PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER EACH AFFILIATE USING
19 THE PROPERTY MUST SATISFY THIS EMPLOYMENT TEST OR THIS EMPLOYMENT TEST
20 MUST BE SATISFIED THROUGH THE AGGREGATION OF THE EMPLOYEES OF THE
21 TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND REGISTERED
22 INVESTMENT ADVISER USING THE PROPERTY. FOR PURPOSES OF THIS SUBSECTION,
23 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES OF THIS
24 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
25 INTO WARES SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
26 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
27 PROCESS BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER SIMILAR
28 EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF GOODS SHALL INCLUDE
29 MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCIPALLY
30 USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
31 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND SHALL
32 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
33 AGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
34 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "INDUSTRIAL WASTE
35 TREATMENT FACILITIES", AND "AIR POLLUTION CONTROL FACILITIES" AND
36 "RESEARCH AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS ASCRIBED
37 THERETO BY CLAUSES (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH (D) OF
38 THIS PARAGRAPH, AND THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH
39 SHALL APPLY.
40 (3) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBSECTION
41 WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
42 ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
43 IT LEASES TO ANY OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
44 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
45 INVESTMENT ADVISER THAT USES SUCH PROPERTY IN ACCORDANCE WITH CLAUSE
46 (IV) OR (V) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION. FOR
47 PURPOSES OF THE PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT TO LEASE
48 OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED A
49 LEASE. PROVIDED, HOWEVER, IN DETERMINING WHETHER A TAXPAYER SHALL BE
50 ALLOWED A CREDIT UNDER THIS SUBSECTION WITH RESPECT TO SUCH PROPERTY,
51 ANY ELECTION MADE WITH RESPECT TO SUCH PROPERTY PURSUANT TO THE
52 PROVISIONS OF PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED
53 SIXTY-EIGHT OF THE INTERNAL REVENUE CODE, AS SUCH PARAGRAPH WAS IN
54 EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN
55 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
A. 6479 14
1 (4) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
2 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
3 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
4 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. ANY REFUND PAID PURSUANT
5 TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF
6 TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER,
7 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
8 (Y) DISCOVERY WAGE TAX CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
9 IT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY
10 THIS ARTICLE, WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO SECTION
11 THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE AMOUNT
12 OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH THREE OF THIS
13 SUBSECTION.
14 (2) "DISCOVERY WAGES" MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME
15 EMPLOYMENT DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID BY
16 A CERTIFIED BUSINESS AS DEFINED BY THE FOUNDATION AS REQUIRED IN ITS
17 RESPONSIBILITIES.
18 (3) THE CREDIT PROVIDED IN THIS SUBDIVISION SHALL BE EQUAL TO THE
19 PRODUCT OF THE GROSS WAGES PAID AND SIX AND EIGHTY-FIVE HUNDREDTHS
20 PERCENT FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
21 (4) "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE AVER-
22 AGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN THE
23 PREVIOUS TAXABLE YEAR.
24 (5) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
25 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
26 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
27 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
28 TAX OTHERWISE DUE BY REASON OF PARAGRAPH THREE OF THIS SUBSECTION, MAY
29 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
30 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
31 S 9. Section 1511 of the tax law is amended by adding two new subdivi-
32 sions (aa) and (bb) to read as follows:
33 (AA) DISCOVERY INVESTMENT CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
34 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
35 BY THIS ARTICLE WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO
36 SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE
37 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
38 FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER
39 TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF
40 BUILDINGS, DESCRIBED IN PARAGRAPH TWO OF THIS SUBDIVISION, BUT ONLY IF
41 THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH PROP-
42 ERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION
43 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
44 OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION WHICH WAS
45 COMMENCED DURING SUCH PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY,
46 THE CREDIT SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST OR OTHER
47 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
48 PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY A
49 FRACTION THE NUMERATOR OF WHICH SHALL BE THE EXPENDITURES PAID OR
50 INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF
51 WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
52 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
53 (2) A CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO
54 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
55 INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (A) ARE DEPRECIABLE
56 PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
A. 6479 15
1 CODE, (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED BY
2 PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
3 INTERNAL REVENUE CODE, AND (D) ARE (I) PRINCIPALLY USED BY THE TAXPAYER
4 IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
5 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
6 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
7 MENT FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAY-
8 ER'S TRADE OR BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV)
9 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
10 NESS AS A BROKER OR DEALER IN CONNECTION WITH THE PURCHASE OR SALE
11 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
12 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF STOCKS,
13 BONDS OR OTHER SECURITIES AS DEFINED IN SECTION FOUR HUNDRED
14 SEVENTY-FIVE(C)(2) OF THE INTERNAL REVENUE CODE, OR OF COMMODITIES AS
15 DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE
16 CODE, OR (V) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S
17 TRADE OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES FOR A REGU-
18 LATED INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE
19 OF THE INTERNAL REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN ORIG-
20 INATION SERVICES TO CUSTOMERS IN CONNECTION WITH THE PURCHASE OR SALE
21 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
22 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF SECURITIES
23 AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE(C)(2) OF THE INTERNAL
24 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
25 PROPERTY PURCHASED BY A TAXPAYER AFFILIATED WITH A REGULATED BROKER,
26 DEALER OR REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT UNDER THIS
27 SUBDIVISION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
28 DEALER OR REGISTERED INVESTMENT ADVISER IN ACCORDANCE WITH THIS SUBDIVI-
29 SION. FOR PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY USED IN
30 QUALIFYING USES, THE USES BY THE TAXPAYER DESCRIBED IN CLAUSES (IV) AND
31 (V) OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE USES BY THE
32 TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND REGISTERED
33 INVESTMENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES MAY BE AGGRE-
34 GATED. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED THE CREDIT
35 PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I) EIGHTY
36 PERCENT OR MORE OF THE EMPLOYEES PERFORMING THE ADMINISTRATIVE AND
37 SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE QUALIFYING USES OF
38 SUCH EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER OF
39 EMPLOYEES THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS RESULT-
40 ING FROM OR RELATED TO THE QUALIFYING USES OF SUCH EQUIPMENT AND ARE
41 LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS
42 CLAIMED IS EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVERAGE
43 NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN THIS
44 STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING THE YEAR FOR
45 WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES LOCATED IN
46 THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS
47 EQUAL TO OR GREATER THAN NINETY PERCENT OF THE NUMBER OF EMPLOYEES
48 LOCATED IN THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINE-
49 TY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAYER IN NINE-
50 TEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE YEAR ENDING
51 AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT. IF THE
52 TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE AFTER THE TAXABLE YEAR
53 BEGINNING IN NINETEEN HUNDRED NINETY-EIGHT, THEN THE TAXPAYER IS NOT
54 REQUIRED TO SATISFY THE EMPLOYMENT TEST PROVIDED IN THE PRECEDING
55 SENTENCE OF THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR. FOR PURPOSES
56 OF ITEM (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED ON THE
A. 6479 16
1 NUMBER OF EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF THE FIRST
2 TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF THE USES
3 OF THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY IS
4 PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER EACH AFFILIATE USING
5 THE PROPERTY MUST SATISFY THIS EMPLOYMENT TEST OR THIS EMPLOYMENT TEST
6 MUST BE SATISFIED THROUGH THE AGGREGATION OF THE EMPLOYEES OF THE
7 TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND REGISTERED
8 INVESTMENT ADVISER USING THE PROPERTY. FOR PURPOSES OF THIS SUBDIVISION,
9 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES OF THIS
10 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
11 INTO WARES SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
12 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
13 PROCESS BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER SIMILAR
14 EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF GOODS SHALL INCLUDE
15 MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCIPALLY
16 USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
17 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND SHALL
18 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
19 AGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
20 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "INDUSTRIAL WASTE
21 TREATMENT FACILITIES", "AIR POLLUTION CONTROL FACILITIES" AND "RESEARCH
22 AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS ASCRIBED THERETO BY
23 CLAUSES (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH (D) OF THIS PARA-
24 GRAPH, AND THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH SHALL
25 APPLY.
26 (3) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
27 WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
28 ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
29 IT LEASES TO ANY OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
30 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
31 INVESTMENT ADVISER THAT USES SUCH PROPERTY IN ACCORDANCE WITH CLAUSE
32 (IV) OR (V) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBDIVISION.
33 FOR PURPOSES OF THE PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT TO
34 LEASE OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED
35 A LEASE. PROVIDED, HOWEVER, IN DETERMINING WHETHER A TAXPAYER SHALL BE
36 ALLOWED A CREDIT UNDER THIS SUBDIVISION WITH RESPECT TO SUCH PROPERTY,
37 ANY ELECTION MADE WITH RESPECT TO SUCH PROPERTY PURSUANT TO THE
38 PROVISIONS OF PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED
39 SIXTY-EIGHT OF THE INTERNAL REVENUE CODE, AS SUCH PARAGRAPH WAS IN
40 EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN
41 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
42 (4) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
43 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
44 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
45 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. ANY REFUND PAID PURSUANT
46 TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF
47 TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER,
48 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
49 (BB) DISCOVERY WAGE TAX CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
50 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
51 BY THIS ARTICLE, WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO
52 SECTION THIRTY-ONE HUNDRED SIXTY-SIX OF THE PUBLIC AUTHORITIES LAW. THE
53 AMOUNT OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH THREE OF THIS
54 SUBDIVISION.
55 (2) "DISCOVERY WAGES" MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME
56 EMPLOYMENT DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID BY
A. 6479 17
1 A CERTIFIED BUSINESS AS DEFINED BY THE FOUNDATION AS REQUIRED IN ITS
2 RESPONSIBILITIES.
3 (3) THE CREDIT PROVIDED IN THIS SUBDIVISION SHALL BE EQUAL TO THE
4 PRODUCT OF THE GROSS WAGES PAID AND SIX AND EIGHTY-FIVE HUNDREDTHS
5 PERCENT FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
6 (4) "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE AVER-
7 AGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN THE
8 PREVIOUS TAXABLE YEAR.
9 (5) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
10 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
11 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
12 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
13 TAX OTHERWISE DUE BY REASON OF PARAGRAPH THREE OF THIS SUBDIVISION, MAY
14 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
15 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
16 S 10. This act shall take effect immediately; provided, however, that
17 any rules and regulations necessary to carry out the provisions of this
18 act shall be promulgated by the New York state foundation for science,
19 technology and innovation before such effective date.
20 PART C
21 Section 1. The opening paragraph and subparagraphs (iv) and (vi) of
22 paragraph (a) of subdivision 1 of section 210 of the tax law, as amended
23 by section 2 of part N of chapter 60 of the laws of 2007, are amended to
24 read as follows:
25 For taxable years beginning before July first, nineteen hundred nine-
26 ty-nine, the amount prescribed by this paragraph shall be computed at
27 the rate of nine percent of the taxpayer's entire net income base. For
28 taxable years beginning after June thirtieth, nineteen hundred ninety-
29 nine and before July first, two thousand, the amount prescribed by this
30 paragraph shall be computed at the rate of eight and one-half percent of
31 the taxpayer's entire net income base. For taxable years beginning after
32 June thirtieth, two thousand and before July first, two thousand one,
33 the amount prescribed by this paragraph shall be computed at the rate of
34 eight percent of the taxpayer's entire net income base. For taxable
35 years beginning after June thirtieth, two thousand one and before Janu-
36 ary first, two thousand seven, the amount prescribed by this paragraph
37 shall be computed at the rate of seven and one-half percent of the
38 taxpayer's entire net income base. For taxable years beginning [on or]
39 after January first, two thousand seven AND BEFORE JANUARY FIRST, TWO
40 THOUSAND ELEVEN, the amount prescribed by this paragraph shall be
41 computed at the rate of seven and one-tenth percent of the taxpayer's
42 entire net income base. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
43 FIRST, TWO THOUSAND ELEVEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH
44 SHALL BE COMPUTED AT THE RATE OF SIX AND EIGHTY-FIVE ONE HUNDREDTH
45 PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE. The taxpayer's entire
46 net income base shall mean the portion of the taxpayer's entire net
47 income allocated within the state as hereinafter provided, subject to
48 any modification required by paragraphs (d) and (e) of subdivision three
49 of this section. However, in the case of a small business taxpayer, as
50 defined in paragraph (f) of this subdivision, the amount prescribed by
51 this paragraph shall be computed pursuant to subparagraph (iv) of this
52 paragraph and in the case of a manufacturer, as defined in subparagraph
53 (vi) of this paragraph, the amount prescribed by this paragraph shall be
54 computed pursuant to subparagraph (vi) of this paragraph.
A. 6479 18
1 (iv) for taxable years beginning [on or] after January first, two
2 thousand seven AND BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, if the
3 entire net income base is not more than two hundred ninety thousand
4 dollars the amount shall be six and one-half percent of the entire net
5 income base; if the entire net income base is more than two hundred
6 ninety thousand dollars but not over three hundred ninety thousand
7 dollars the amount shall be the sum of (1) eighteen thousand eight
8 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
9 the entire net income base over two hundred ninety thousand dollars but
10 not over three hundred ninety thousand dollars and (3) four and thirty-
11 five hundredths percent of the excess of the entire net income base over
12 three hundred fifty thousand dollars but not over three hundred ninety
13 thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
14 TWO THOUSAND ELEVEN, IF THE ENTIRE NET INCOME IS NOT OVER THREE HUNDRED
15 NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE SIX PERCENT OF THE ENTIRE
16 NET INCOME BASE;
17 (vi) for taxable years beginning [on or] after January thirty-first,
18 two thousand seven AND BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, the
19 amount prescribed by this paragraph for a taxpayer which is a qualified
20 New York manufacturer, shall be computed at the rate of six and one-half
21 (6.5) percent of the taxpayer's entire net income base. FOR TAXABLE
22 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, THE
23 AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED AT THE RATE OF SIX
24 PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE. The term "manufactur-
25 er" shall mean a taxpayer which during the taxable year is principally
26 engaged in the production of goods by manufacturing, processing, assem-
27 bling, refining, mining, extracting, farming, agriculture, horticulture,
28 floriculture, viticulture or commercial fishing. However, the generation
29 and distribution of electricity, the distribution of natural gas, and
30 the production of steam associated with the generation of electricity
31 shall not be qualifying activities for a manufacturer under this subpar-
32 agraph. Moreover, the combined group shall be considered a "manufactur-
33 er" for purposes of this subparagraph only if the combined group during
34 the taxable year is principally engaged in the activities set forth in
35 this paragraph, or any combination thereof. A taxpayer or a combined
36 group shall be "principally engaged" in activities described above if,
37 during the taxable year, more than fifty percent of the gross receipts
38 of the taxpayer or combined group, respectively, are derived from
39 receipts from the sale of goods produced by such activities. In comput-
40 ing a combined group's gross receipts, intercorporate receipts shall be
41 eliminated. A "qualified New York manufacturer" is a manufacturer which
42 has property in New York which is described in clause (A) of subpara-
43 graph (i) of paragraph (b) of subdivision twelve of this section and
44 either (I) the adjusted basis of such property for federal income tax
45 purposes at the close of the taxable year is at least one million
46 dollars or (II) all of its real and personal property is located in New
47 York. In addition, a "qualified New York manufacturer" means a taxpayer
48 which is defined as a qualified emerging technology company under para-
49 graph (c) of subdivision one of section thirty-one hundred two-e of the
50 public authorities law regardless of the ten million dollar limitation
51 expressed in subparagraph one of such paragraph (c).
52 S 2. Subsection (a) of section 1455 of the tax law, as amended by
53 section 3 of part N of chapter 60 of the laws of 2007, is amended to
54 read as follows:
55 (a) Basic tax. For taxable years beginning before July first, two
56 thousand, nine percent of the taxpayer's entire net income, or the
A. 6479 19
1 portion thereof allocated to this state, for the taxable year, or part
2 thereof. For taxable years beginning after June thirtieth, two thousand
3 and before July first, two thousand one, eight and one-half percent of
4 the taxpayer's entire net income, or portion thereof allocated to this
5 state, for the taxable year, or part thereof. For taxable years begin-
6 ning after June thirtieth, two thousand one and before July first, two
7 thousand two, eight percent of the taxpayer's entire net income, or
8 portion thereof allocated to this state, for the taxable year, or part
9 thereof. For taxable years beginning after June thirtieth, two thousand
10 two and before January first, two thousand seven, seven and one-half
11 percent of the taxpayer's entire net income, or portion thereof allo-
12 cated to this state, for the taxable year, or part thereof. For taxable
13 years beginning on [or after] January first, two thousand seven, AND
14 BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, seven and one-tenth percent
15 of the taxpayer's entire net income, or the portion thereof allocated to
16 this state, for the taxable year, or part thereof. FOR TAXABLE YEARS
17 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, SIX AND EIGHT-
18 Y-FIVE ONE HUNDREDTH PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME, OR
19 PORTION THEREOF ALLOCATED TO THIS STATE, FOR THE TAXABLE YEAR, OR PART
20 THEREOF.
21 S 3. Paragraph 1 of subdivision (a) of section 1502 of the tax law, as
22 amended by section 4 of part N of chapter 60 of the laws of 2007, is
23 amended to read as follows:
24 (1) for taxable years beginning before July first, two thousand, nine
25 percent of the taxpayer's entire net income, or portion thereof allo-
26 cated within this state, for the taxable year, or part thereof, except
27 that for taxable years beginning prior to January first, nineteen
28 hundred seventy-eight, the rate shall be four and five-tenths percent;
29 for taxable years beginning after June thirtieth, two thousand and
30 before July first, two thousand one, eight and one-half percent of the
31 taxpayer's entire net income, or portion thereof allocated within this
32 state, for the taxable year, or part thereof; for taxable years begin-
33 ning after June thirtieth, two thousand one and before July first, two
34 thousand two, eight percent of the taxpayer's entire net income, or
35 portion thereof allocated within this state, for the taxable year, or
36 part thereof; for taxable years beginning after June thirtieth, two
37 thousand two and before January first, two thousand seven, seven and
38 one-half percent of the taxpayer's entire net income, or portion thereof
39 allocated within this state, for the taxable year, or part thereof;
40 [and] for taxable years beginning [on or] after January first, two thou-
41 sand seven AND BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, seven and
42 one-tenth percent of the taxpayer's entire net income, or portion there-
43 of allocated within this state, for the taxable year, or part thereof;
44 AND FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
45 ELEVEN, SIX AND EIGHTY-FIVE ONE HUNDREDTH PERCENT OF THE TAXPAYER'S
46 ENTIRE NET INCOME, OR PORTION THEREOF ALLOCATED WITHIN THIS STATE, FOR
47 THE TAXABLE YEAR, OR PART THEREOF; or
48 S 4. Subparagraph 1 of paragraph (b) of subdivision 1 of section 186-a
49 of the tax law, as amended by section 4 of part Y of chapter 63 of the
50 laws of 2000, is amended to read as follows:
51 (1) two and five-tenths percent on and after January first, two thou-
52 sand through December thirty-first, two thousand, two and forty-five one
53 hundredths percent from January first, two thousand one through December
54 thirty-first, two thousand one, two and four-tenths percent from January
55 first, two thousand two through December thirty-first, two thousand two,
56 two and twenty-five one hundredths percent from January first, two thou-
A. 6479 20
1 sand three through December thirty-first, two thousand three, two and
2 one hundred twenty-five one thousandths percent from January first, two
3 thousand four through December thirty-first, two thousand four [and],
4 two percent commencing January first, two thousand five AND ONE AND
5 ONE-HALF PERCENT COMMENCING JANUARY FIRST, TWO THOUSAND ELEVEN and ther-
6 eafter of that portion of its gross income derived from the transporta-
7 tion, transmission or distribution of gas or electricity by means of
8 conduits, mains, pipes, wires, lines or the like and (2) two and one-
9 tenth percent from January first, two thousand through December thirty-
10 first, two thousand, two percent from January first, two thousand one
11 through December thirty-first, two thousand one, one and nine-tenths
12 percent from January first, two thousand two through December thirty-
13 first, two thousand two, eighty-five one hundredths of one percent from
14 January first, two thousand three through December thirty-first, two
15 thousand three, four-tenths of one percent from January first, two thou-
16 sand four through December thirty-first, two thousand four and zero
17 percent commencing January first, two thousand five of all of its other
18 gross income, is hereby imposed upon every utility not taxed under para-
19 graph (a) of this subdivision doing business in this state which is
20 subject to the supervision of the state department of public service
21 which has a gross income for the year ending December thirty-first in
22 excess of five hundred dollars, except motor carriers or brokers subject
23 to such supervision under the public service law; and
24 S 5. Paragraph (a) of subdivision 2 of section 186-e of the tax law,
25 as amended by section 4 of part S of chapter 85 of the laws of 2002, is
26 amended to read as follows:
27 (a) There is hereby imposed an excise tax on the sale of telecommuni-
28 cation services by any person which is a provider of telecommunication
29 services, to be paid by such person, at the rate of three and one-half
30 percent prior to October first, nineteen hundred ninety-eight, three and
31 one-quarter percent from October first, nineteen hundred ninety-eight
32 through December thirty-first, nineteen hundred ninety-nine, [and] two
33 and one-half percent [on and] after January first, two thousand FIVE AND
34 TWO PERCENT ON AND AFTER JANUARY FIRST, TWO THOUSAND ELEVEN of gross
35 receipt from: (1) any intrastate telecommunication services, except any
36 telecommunication services the gross receipt from which is subject to
37 tax under subparagraph four of this paragraph; (2) any interstate and
38 international telecommunication services (other than interstate and
39 international private telecommunication services and any telecommuni-
40 cation services the gross receipt from which is subject to tax under
41 subparagraph four of this paragraph) which originate or terminate in
42 this state and which telecommunication services are charged to a service
43 address in this state, regardless of where the amounts charged for such
44 services are billed or ultimately paid; (3) interstate and international
45 private telecommunication services, the gross receipt to which the tax
46 shall apply shall be determined as prescribed in subdivision three of
47 this section, except any telecommunication services the gross receipt
48 from which is subject to tax under subparagraph four of this paragraph;
49 and (4) mobile telecommunications service provided by a home service
50 provider where the mobile telecommunications customer's place of primary
51 use is within this state.
52 S 6. Subparagraph 1 of paragraph (g) of subdivision 1 of section 210
53 of the tax law, as amended by section 4 of part AA-1 of chapter 57 of
54 the laws of 2008, is amended to read as follows:
55 (1) General. The amount prescribed by this paragraph shall be, in the
56 case of each New York S corporation, (i) the higher of the amounts
A. 6479 21
1 prescribed in paragraphs (a) and (d) of this subdivision (other than the
2 amount prescribed in the final clause of subparagraph one of that para-
3 graph (d)) (ii) reduced by the article twenty-two tax equivalent;
4 provided, however, that the amount thus determined shall not be less
5 than the lowest of the amounts prescribed in subparagraph one of that
6 paragraph (d) (applying the provisions of subparagraph three of that
7 paragraph as necessary). Provided, however, notwithstanding any
8 provision of this paragraph, in taxable years beginning in two thousand
9 three and before two thousand eight, the amount prescribed by this para-
10 graph shall be the amount prescribed in subparagraph one of that para-
11 graph (d) (applying the provisions of subparagraph three of that para-
12 graph as necessary) and applying the calculation of that amount in the
13 case of a termination year as set forth in subparagraph four of this
14 paragraph as necessary. In taxable years beginning in two thousand eight
15 [and thereafter] AND TWO THOUSAND TEN, the amount prescribed by this
16 paragraph is the amount prescribed in subparagraph four of that para-
17 graph (d) (applying the provisions of subparagraph three of that para-
18 graph as necessary) and applying the calculation of that amount in the
19 case of a termination year as set forth in subparagraph four of this
20 paragraph as necessary. PROVIDED, FURTHER, AND NOTWITHSTANDING ANY
21 PROVISION OF THIS PARAGRAPH, IN TAXABLE YEARS BEGINNING ON AND AFTER TWO
22 THOUSAND ELEVEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL EQUAL
23 ZERO, BUT THE PROVISIONS OF THIS PARAGRAPH SHALL HAVE NO EFFECT ON THE
24 AMOUNT PRESCRIBED BY THE ARTICLE TWENTY-TWO TAX EQUIVALENT.
25 S 7. This act shall take effect immediately and shall apply to taxable
26 years beginning on or after January 1, 2011, provided, however, that any
27 rules and regulations necessary to carry out the provisions of this act
28 shall be promulgated before such effective date.
29 S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
30 sion, section or part of this act shall be adjudged by any court of
31 competent jurisdiction to be invalid, such judgment shall not affect,
32 impair, or invalidate the remainder thereof, but shall be confined in
33 its operation to the clause, sentence, paragraph, subdivision, section
34 or part thereof directly involved in the controversy in which such judg-
35 ment shall have been rendered. It is hereby declared to be the intent of
36 the legislature that this act would have been enacted even if such
37 invalid provisions had not been included herein.
38 S 3. This act shall take effect immediately, provided, however, that
39 the applicable effective date of Parts A through C of this act shall be
40 as specifically set forth in the last section of such Parts.
