Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2013-2014 state fiscal year; relates to the temporary metropolitan transportation business tax surcharge; relates to the empire state film production credit and to the empire state film post production credit; relates to reports; establishes the New York business incubator and innovation hot spot support act; relates to extending for three years the charitable contributions deduction limitation; relates to the exclusion of certain royalty payments from the entire net income or other taxable basis of corporations, banking corporations, and insurance corporations, from the unrelated business income of corporations, and from the adjusted gross income of individual taxpayers; relates to the historic preservation tax credit; provides a tax credit for electric vehicle recharging property; relates to extending provisions relating to mandatory electronic filing of tax documents and improving sales tax compliance; relates to restrictions on funds of the industrial development agency and relates to industrial development agencies and authorities; relates to expanding the exemption of CNG in the sales tax to include natural gas purchased and used to produce CNG for use exclusively and directly in the engine of a motor vehicle; relates to allowing voluntary ambulance services, fire companies, fire departments and rescue squads to claim reimbursement of the petroleum business tax for fuel used in their vehicles; relates to increasing the penalty for the possession of unstamped and unlawfully stamped cigarettes; relates to the suspension of drivers' licenses of persons who are delinquent in the payment of past-due tax liabilities; relates to serving an income execution with respect to individual tax debtors without filing a warrant; relates to vendor fees paid to vendor tracks; relates to licenses for simulcasting facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; extends certain provisions of law; relates to the credit for the rehabilitation of historic homes; relates to allowing certain tax-free interdistributor sales of highway diesel motor fuel; relates to updating the farming exemption in the highway use tax to reflect current industry practice; relates to providing a subtraction from income for small businesses and small farms; relates to providing tax cuts to manufacturers; relates to adding a hire a vet credit; relates to extending the temporary state energy and utility conservation assessment; relates to a credit for middle income taxpayers with children; relates to the New York youth works tax credit program; relates to adding a minimum wage reimbursement credit; relates to personal income tax rates; relates to the gift for New York state teen health education fund; relates to establishing the New York state teen health education fund; relates to eligible businesses participating in the excelsior linked deposit program; relates to small business loan funds for business enterprises that are minority- and women-owned; and relates to establishing a New York state innovation capital fund.
STATE OF NEW YORK
________________________________________________________________________
S. 2609--D A. 3009--D
SENATE - ASSEMBLY
January 22, 2013
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- again reported from
said committee with amendments, ordered reprinted as amended and
recommitted to said committee -- again reported from said committee
with amendments, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the tax law, in relation to the temporary metropolitan
transportation business tax surcharge (Part A); to amend the tax law,
in relation to the empire state film production credit and the empire
state film post production credit; and to amend part Y-1 of chapter 57
of the laws of 2009 amending the tax law relating to the empire state
film production credit, in relation to reports (Part B); to amend the
urban development corporation act, the tax law and the administrative
code of the city of New York, in relation to establishing the New York
business incubator and innovation hot spot support act (Part C); to
amend the tax law and the administrative code of the city of New York,
in relation to extending for three years the charitable contributions
deduction limitation (Part D); to amend the tax law and the adminis-
trative code of the city of New York, in relation to the exclusion of
certain royalty payments from the entire net income or other taxable
basis of corporations, banking corporations, and insurance corpo-
rations, from the unrelated business income of corporations, and from
the adjusted gross income of individual taxpayers; and to repeal
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12574-06-3
S. 2609--D 2 A. 3009--D
certain provisions of the tax law relating thereto (Part E); to amend
the tax law, in relation to the historic preservation tax credit (Part
F); to amend the tax law, in relation to providing a tax credit for
electric vehicle recharging property (Part G); to amend chapter 61 of
the laws of 2011 amending the real property tax law and other laws
relating to establishing standards for electronic real property tax
administration, in relation to extending provisions relating to manda-
tory electronic filing of tax documents and improving sales tax
compliance (Part H); intentionally omitted (Part I); to amend the
general municipal law, in relation to restrictions on funds of the
industrial development agency and to amend the general municipal law
and the public authorities law, in relation to industrial development
agencies and authorities (Part J); to amend the tax law, in relation
to expanding the exemption of CNG in the sales tax to include natural
gas purchased and used to produce CNG for use exclusively and directly
in the engine of a motor vehicle (Part K); to amend the tax law, in
relation to allowing voluntary ambulance services, fire companies,
fire departments and rescue squads to claim reimbursement of the
petroleum business tax for fuel used in their vehicles (Part L);
intentionally omitted (Part M); intentionally omitted (Part N); to
amend the tax law, in relation to increasing the penalty for the
possession of unstamped and unlawfully stamped cigarettes (Part O); to
amend the tax law and the vehicle and traffic law, in relation to the
suspension of drivers' licenses of persons who are delinquent in the
payment of past-due tax liabilities (Part P); to amend the tax law,
in relation to serving an income execution with respect to individual
tax debtors without filing a warrant; and providing for the repeal of
such provisions upon the expiration thereof (Part Q); intentionally
omitted (Part R); intentionally omitted (Part S); to amend the tax
law, in relation to vendor fees paid to vendor tracks (Part T); to
amend the racing, pari-mutuel wagering and breeding law, in relation
to licenses for simulcast facilities, sums relating to track simul-
cast, simulcast of out-of-state thoroughbred races, simulcasting of
races run by out-of-state harness tracks and distributions of wagers;
to amend chapter 281 of the laws of 1994 amending the racing, pari-mu-
tuel wagering and breeding law and other laws relating to simulcasting
and chapter 346 of the laws of 1990 amending the racing, pari-mutuel
wagering and breeding law and other laws relating to simulcasting and
the imposition of certain taxes, in relation to extending certain
provisions thereof; and to amend the racing, pari-mutuel wagering and
breeding law, in relation to extending certain provisions thereof
(Part U); to amend the tax law, in relation to the credit for the
rehabilitation of historic homes (Part V); to amend the tax law, in
relation to allowing certain tax-free interdistributor sales of high-
way diesel motor fuel (Part W); to amend the tax law, in relation to
updating the farming exemption in the highway use tax to reflect
current industry practice (Part X); to amend the tax law and the
administrative code of the city of New York, in relation to providing
a subtraction from income for small businesses and small farms (Part
Y); to amend the tax law, in relation to providing tax cuts to
manufacturers (Part Z); to amend the tax law, in relation to adding a
hire a vet credit (Part AA); to amend the public service law, in
relation to extending the temporary state energy and utility conserva-
tion assessment; and to amend section 6 of part NN of chapter 59 of
the laws of 2009 amending the public service law relating to financing
the operations of the department of public service, the public service
S. 2609--D 3 A. 3009--D
commission, department support and energy management services provided
by other state agencies, increasing the utility assessment cap and the
minimum threshold for collection thereunder, and establishing a tempo-
rary state energy and utility service conservation assessment and
providing for the collection thereof, in relation to extending the
effectiveness thereof (Part BB); to amend the tax law, in relation to
a credit for middle income taxpayers with children (Part CC); to amend
the labor law, in relation to the New York youth works tax credit
program (Part DD); to amend the tax law, in relation to adding a mini-
mum wage reimbursement credit (Part EE); to amend the tax law, in
relation to personal income tax rates; to amend section 11 of part A
of chapter 56 of the laws of 2011, relating to the tax rates and
exclusions under the metropolitan commuter transportation mobility
tax, relating to withholding tables and methods for certain tax years;
and to amend the administrative code of the city of New York, relating
to the amounts of standard deductions (Part FF); to amend the tax law,
in relation to the gift for New York state teen health education fund;
and to amend the state finance law, in relation to establishing the
New York state teen health education fund (Part GG); to amend the
state finance law, in relation to eligible businesses participating in
the excelsior linked deposit program (Part HH); to amend the New York
state urban development corporation act, in relation to small business
loan funds for business enterprises that are minority- and women-owned
(Part II); and in relation to establishing a New York state innovation
capital fund (Part JJ)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 2013-2014
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through JJ. 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 a reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Subdivision 1 of section 183-a of the tax law, as amended
14 by section 1 of part II-1 of chapter 57 of the laws of 2008, is amended
15 to read as follows:
16 1. The term "corporation" as used in this section shall include an
17 association, within the meaning of paragraph three of subsection (a) of
18 section seventy-seven hundred one of the internal revenue code (includ-
19 ing a limited liability company), a publicly traded partnership treated
20 as a corporation for purposes of the internal revenue code pursuant to
21 section seventy-seven hundred four thereof and any business conducted by
22 a trustee or trustees wherein interest or ownership is evidenced by
23 certificates or other written instruments. Every corporation, joint-
24 stock company or association formed for or principally engaged in the
S. 2609--D 4 A. 3009--D
1 conduct of canal, steamboat, ferry (except a ferry company operating
2 between any of the boroughs of the city of New York under a lease grant-
3 ed by the city), express, navigation, pipe line, transfer, baggage
4 express, omnibus, taxicab, telegraph, or telephone business, or formed
5 for or principally engaged in the conduct of two or more such busi-
6 nesses, and every corporation, joint-stock company or association formed
7 for or principally engaged in the conduct of a railroad, palace car,
8 sleeping car or trucking business or formed for or principally engaged
9 in the conduct of two or more of such businesses and which has made an
10 election pursuant to subdivision ten of section one hundred eighty-three
11 of this article, and every other corporation, joint-stock company or
12 association principally engaged in the conduct of a transportation or
13 transmission business, except a corporation, joint-stock company or
14 association formed for or principally engaged in the conduct of a rail-
15 road, palace car, sleeping car or trucking business or formed for or
16 principally engaged in the conduct of two or more of such businesses and
17 which has not made the election provided for in subdivision ten of
18 section one hundred eighty-three of this article, and except a corpo-
19 ration, joint-stock company or association principally engaged in the
20 conduct of aviation (including air freight forwarders acting as princi-
21 pal and like indirect air carriers) and except a corporation principally
22 engaged in providing telecommunication services between aircraft and
23 dispatcher, aircraft and air traffic control or ground station and
24 ground station (or any combination of the foregoing), at least ninety
25 percent of the voting stock of which corporation is owned, directly or
26 indirectly, by air carriers and which corporation's principal function
27 is to fulfill the requirements of (i) the federal aviation adminis-
28 tration (or the successor thereto) or (ii) the international civil
29 aviation organization (or the successor thereto), relating to the exist-
30 ence of a communication system between aircraft and dispatcher, aircraft
31 and air traffic control or ground station and ground station (or any
32 combination of the foregoing) for the purposes of air safety and naviga-
33 tion and except a corporation, joint-stock company or association which
34 is liable to taxation under article thirty-two of this chapter, shall
35 pay for the privilege of exercising its corporate franchise, or of doing
36 business, or of employing capital, or of owning or leasing property in
37 the metropolitan commuter transportation district in such corporate or
38 organized capacity, or of maintaining an office in such district, a tax
39 surcharge for all or any part of its years commencing on or after Janu-
40 ary first, nineteen hundred eighty-two but ending before December thir-
41 ty-first, two thousand [thirteen] eighteen, which tax surcharge, in
42 addition to the tax imposed by section one hundred eighty-three of this
43 article, shall be computed at the rate of eighteen percent of the tax
44 imposed under such section one hundred eighty-three for such years or
45 any part of such years ending before December thirty-first, nineteen
46 hundred eighty-three after the deduction of any credits otherwise allow-
47 able under this article, and at the rate of seventeen percent of the tax
48 imposed under such section for such years or any part of such years
49 ending on or after December thirty-first, nineteen hundred eighty-three
50 after the deduction of any credits otherwise allowable under this arti-
51 cle; provided, however, that such rates of tax surcharge shall be
52 applied only to that portion of the tax imposed under section one
53 hundred eighty-three of this article after the deduction of any credits
54 otherwise allowable under this article which is attributable to the
55 taxpayer's business activity carried on within the metropolitan commuter
56 transportation district as so determined in the manner prescribed by the
S. 2609--D 5 A. 3009--D
1 rules and regulations promulgated by the commissioner; and provided,
2 further, that the tax surcharge imposed by this section shall not be
3 imposed upon any taxpayer for more than [three] four hundred [seventy-
4 two] thirty-two months.
5 § 2. The opening paragraph of subdivision 1 of section 184-a of the
6 tax law, as amended by section 2 of part II-1 of chapter 57 of the laws
7 of 2008, is amended to read as follows:
8 The term "corporation" as used in this section shall include an asso-
9 ciation, within the meaning of paragraph three of subsection (a) of
10 section seventy-seven hundred one of the internal revenue code (includ-
11 ing a limited liability company), and a publicly traded partnership
12 treated as a corporation for purposes of the internal revenue code
13 pursuant to section seventy-seven hundred four thereof. Every corpo-
14 ration, joint-stock company or association formed for or principally
15 engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
16 ny operating between any of the boroughs of the city of New York under a
17 lease granted by the city), express, navigation, pipe line, transfer,
18 baggage express, omnibus, taxicab, telegraph or local telephone busi-
19 ness, or formed for or principally engaged in the conduct of two or more
20 such businesses, and every corporation, joint-stock company or associ-
21 ation formed for or principally engaged in the conduct of a surface
22 railroad, whether or not operated by steam, subway railroad, elevated
23 railroad, palace car, sleeping car or trucking business or principally
24 engaged in the conduct of two or more such businesses and which has made
25 an election pursuant to subdivision ten of section one hundred eighty-
26 three of this article, and every other corporation, joint-stock company
27 or association formed for or principally engaged in the conduct of a
28 transportation or transmission business (other than a telephone busi-
29 ness) except a corporation, joint-stock company or association formed
30 for or principally engaged in the conduct of a surface railroad, whether
31 or not operated by steam, subway railroad, elevated railroad, palace
32 car, sleeping car or trucking business or principally engaged in the
33 conduct of two or more such businesses and which has not made the
34 election provided for in subdivision ten of section one hundred eighty-
35 three of this article, and except a corporation, joint-stock company or
36 association principally engaged in the conduct of aviation (including
37 air freight forwarders acting as principal and like indirect air carri-
38 ers) and except a corporation principally engaged in providing telecom-
39 munication services between aircraft and dispatcher, aircraft and air
40 traffic control or ground station and ground station (or any combination
41 of the foregoing), at least ninety percent of the voting stock of which
42 corporation is owned, directly or indirectly, by air carriers and which
43 corporation's principal function is to fulfill the requirements of (i)
44 the federal aviation administration (or the successor thereto) or (ii)
45 the international civil aviation organization (or the successor there-
46 to), relating to the existence of a communication system between
47 aircraft and dispatcher, aircraft and air traffic control or ground
48 station and ground station (or any combination of the foregoing) for the
49 purposes of air safety and navigation and except a corporation, joint-
50 stock company or association which is liable to taxation under article
51 thirty-two of this chapter, shall pay for the privilege of exercising
52 its corporate franchise, or of doing business, or of employing capital,
53 or of owning or leasing property in the metropolitan commuter transpor-
54 tation district in such corporate or organized capacity, or of maintain-
55 ing an office in such district, a tax surcharge for all or any part of
56 its taxable years commencing on or after January first, nineteen hundred
S. 2609--D 6 A. 3009--D
1 eighty-two, but ending before December thirty-first, two thousand [thir-
2 teen] eighteen, which tax surcharge, in addition to the tax imposed by
3 section one hundred eighty-four of this article, shall be computed at
4 the rate of eighteen percent of the tax imposed under such section one
5 hundred eighty-four for such taxable years or any part of such taxable
6 years ending before December thirty-first, nineteen hundred eighty-three
7 after the deduction of any credits otherwise allowable under this arti-
8 cle, and at the rate of seventeen percent of the tax imposed under such
9 section for such taxable years or any part of such taxable years ending
10 on or after December thirty-first, nineteen hundred eighty-three after
11 the deduction of any credits otherwise allowable under this article;
12 provided, however, that such rates of tax surcharge shall be applied
13 only to that portion of the tax imposed under section one hundred eight-
14 y-four of this article after the deduction of any credits otherwise
15 allowable under this article which is attributable to the taxpayer's
16 business activity carried on within the metropolitan commuter transpor-
17 tation district; and provided, further, that the tax surcharge imposed
18 by this section on corporations, joint-stock companies and associations
19 formed for or principally engaged in the conduct of telephone or tele-
20 graph business shall be computed in accordance with this subdivision and
21 paragraph (c) of subdivision two of this section as if the three-quar-
22 ters of one percent rate of tax provided for in subdivision one of
23 section one hundred eighty-four of this article were applicable to such
24 telephone and telegraph businesses for taxable years commencing on or
25 after January first, nineteen hundred eighty-five and ending on or
26 before December thirty-first, nineteen hundred eighty-nine; and
27 provided, further, that the tax surcharge imposed by this section shall
28 not be imposed upon any taxpayer for more than [three] four hundred
29 [seventy-two] thirty-two months. Provided, however, that for taxable
30 years beginning in two thousand and thereafter, for purposes of this
31 subdivision the tax imposed under section one hundred eighty-four of
32 this article shall be deemed to have been imposed at the rate of three-
33 quarters of one percent, except that in the case of a corporation,
34 joint-stock company or association which has made an election pursuant
35 to subdivision ten of section one hundred eighty-three of this article,
36 for purposes of this subdivision the tax imposed under section one
37 hundred eighty-four of this article shall be deemed to have been imposed
38 at the rate of six-tenths of one percent.
39 § 3. Subparagraph 1 of paragraph (a) of subdivision 1 of section 186-c
40 of the tax law, as amended by section 3 of part II-1 of chapter 57 of
41 the laws of 2008, is amended to read as follows:
42 (1) Every utility doing business in the metropolitan commuter trans-
43 portation district shall pay a tax surcharge, in addition to the tax
44 imposed by section one hundred eighty-six-a of this article, for all or
45 any parts of its taxable years commencing on or after January first,
46 nineteen hundred eighty-two but ending before December thirty-first, two
47 thousand [thirteen] eighteen, to be computed at the rate of eighteen
48 percent of the tax imposed under section one hundred eighty-six-a of
49 this article for such taxable years or any part of such taxable years
50 ending before December thirty-first, nineteen hundred eighty-three after
51 the deduction of any credits otherwise allowable under this article, and
52 at the rate of seventeen percent of the tax imposed under such section
53 for such taxable years or any part of such taxable years ending on or
54 after December thirty-first, nineteen hundred eighty-three after the
55 deduction of credits otherwise allowable under this article except any
56 utility credit provided for by article thirteen-A of this chapter;
S. 2609--D 7 A. 3009--D
1 provided, however, that such rates of tax surcharge shall be applied
2 only to that portion of the tax imposed under section one hundred eight-
3 y-six-a of this article after the deduction of credits otherwise allow-
4 able under this article, except any utility credit provided for by arti-
5 cle thirteen-A of this chapter, which is attributable to the taxpayer's
6 gross income or gross operating income from business activity carried on
7 within the metropolitan commuter transportation district; and provided,
8 further, that the tax surcharge imposed by this section shall not be
9 imposed upon any taxpayer for more than [three] four hundred [seventy-
10 two] thirty-two months.
11 § 4. Subdivision 1 of section 209-B of the tax law, as amended by
12 section 4 of part II-1 of chapter 57 of the laws of 2008, is amended to
13 read as follows:
14 1. For the privilege of exercising its corporate franchise, or of
15 doing business, or of employing capital, or of owning or leasing proper-
16 ty in a corporate or organized capacity, or of maintaining an office in
17 the metropolitan commuter transportation district, for all or any part
18 of its taxable year, there is hereby imposed on every corporation, other
19 than a New York S corporation, subject to tax under section two hundred
20 nine of this article, or any receiver, referee, trustee, assignee or
21 other fiduciary, or any officer or agent appointed by any court, who
22 conducts the business of any such corporation, for the taxable years
23 commencing on or after January first, nineteen hundred eighty-two but
24 ending before December thirty-first, two thousand [thirteen] eighteen, a
25 tax surcharge, in addition to the tax imposed under section two hundred
26 nine of this article, to be computed at the rate of eighteen percent of
27 the tax imposed under such section two hundred nine for such taxable
28 years or any part of such taxable years ending before December thirty-
29 first, nineteen hundred eighty-three after the deduction of any credits
30 otherwise allowable under this article, and at the rate of seventeen
31 percent of the tax imposed under such section for such taxable years or
32 any part of such taxable years ending on or after December thirty-first,
33 nineteen hundred eighty-three after the deduction of any credits other-
34 wise allowable under this article; provided, however, that such rates of
35 tax surcharge shall be applied only to that portion of the tax imposed
36 under section two hundred nine of this article after the deduction of
37 any credits otherwise allowable under this article which is attributable
38 to the taxpayer's business activity carried on within the metropolitan
39 commuter transportation district; and provided, further, that the tax
40 surcharge imposed by this section shall not be imposed upon any taxpayer
41 for more than [three] four hundred [seventy-two] thirty-two months.
42 Provided however, that for taxable years commencing on or after July
43 first, nineteen hundred ninety-eight, such surcharge shall be calculated
44 as if the tax imposed under section two hundred ten of this article were
45 imposed under the law in effect for taxable years commencing on or after
46 July first, nineteen hundred ninety-seven and before July first, nine-
47 teen hundred ninety-eight. Provided however, that for taxable years
48 commencing on or after January first, two thousand seven, such surcharge
49 shall be calculated using the highest of the tax bases imposed pursuant
50 to paragraphs (a), (b), (c) or (d) of subdivision one of section two
51 hundred ten of this article and the amount imposed under paragraph (e)
52 of subdivision one of such section two hundred ten, for the taxable
53 year; and, provided further that, if such highest amount is the tax base
54 imposed under paragraph (a), (b) or (c) of such subdivision, then the
55 surcharge shall be computed as if the tax rates and limitations under
56 such paragraph were the tax rates and limitations under such paragraph
S. 2609--D 8 A. 3009--D
1 in effect for taxable years commencing on or after July first, nineteen
2 hundred ninety-seven and before July first, nineteen hundred ninety-
3 eight.
4 § 5. Subsection 1 of section 1455-B of the tax law, as amended by
5 section 5 of part II-1 of chapter 57 of the laws of 2008, is amended to
6 read as follows:
7 1. For the privilege of exercising its franchise or doing business in
8 the metropolitan commuter transportation district in a corporate or
9 organized capacity, there is hereby imposed on every taxpayer subject to
10 tax under this article, other than a New York S corporation, for the
11 taxable years commencing on or after January first, nineteen hundred
12 eighty-two but ending before December thirty-first, two thousand [thir-
13 teen] eighteen, a tax surcharge, in addition to the tax imposed under
14 section fourteen hundred fifty-one of this article, at the rate of eigh-
15 teen percent of the tax imposed under such section fourteen hundred
16 fifty-one of this article, for such taxable years or any part of such
17 taxable years ending before December thirty-first, nineteen hundred
18 eighty-three after the deduction of any credits otherwise allowable
19 under this article, and at the rate of seventeen percent of the tax
20 imposed under such section for such taxable years or any part of such
21 taxable years ending on or after December thirty-first, nineteen hundred
22 eighty-three after the deduction of any credits otherwise allowable
23 under this article; provided however, that such rates of tax surcharge
24 shall be applied only to that portion of the tax imposed under section
25 fourteen hundred fifty-one of this article after the deduction of any
26 credits otherwise allowable under this article which is attributable to
27 the taxpayer's business activity carried on within the metropolitan
28 commuter transportation district; and provided, further, that the tax
29 surcharge imposed by this section shall not be imposed upon any taxpayer
30 for more than [three] four hundred [seventy-two] thirty-two months.
31 Provided however, that for taxable years commencing on or after July
32 first, two thousand, such surcharge shall be calculated as if the rate
33 of the basic tax computed under subsection (a) of section fourteen
34 hundred fifty-five of this article was nine percent.
35 § 6. Paragraphs 1 and 3 of subdivision (a) of section 1505-a of the
36 tax law, as amended by section 6 of part II-1 of chapter 57 of the laws
37 of 2008, are amended to read as follows:
38 (1) Every domestic insurance corporation and every foreign or alien
39 insurance corporation, and every life insurance corporation described in
40 subdivision (b) of section fifteen hundred one of this article, for the
41 privilege of exercising its corporate franchise, or of doing business,
42 or of employing capital, or of owning or leasing property in the metro-
43 politan commuter transportation district in a corporate or organized
44 capacity, or of maintaining an office in the metropolitan commuter
45 transportation district, for all or any part of its taxable years
46 commencing on or after January first, nineteen hundred eighty-two, but
47 ending before December thirty-first, two thousand [thirteen] eighteen,
48 except corporations specified in subdivision (c) of section fifteen
49 hundred twelve of this article, shall annually pay, in addition to the
50 taxes otherwise imposed by this article, a tax surcharge on the taxes
51 imposed under this article after the deduction of any credits otherwise
52 allowable under this article as allocated to such district. Such taxes
53 shall be allocated to such district for purposes of computing such tax
54 surcharge upon taxpayers subject to tax under subdivision (b) of section
55 fifteen hundred ten of this article by applying the methodology, proce-
56 dures and computations set forth in subdivisions (a) and (b) of section
S. 2609--D 9 A. 3009--D
1 fifteen hundred four of this article, except that references to terms
2 denoting New York premiums, and total wages, salaries, personal service
3 compensation and commissions within New York shall be read as denoting
4 within the metropolitan commuter transportation district and terms
5 denoting total premiums and total wages, salaries, personal service
6 compensation and commissions shall be read as denoting within the state.
7 If it shall appear to the commissioner that the application of the meth-
8 odology, procedures and computations set forth in such subdivisions (a)
9 and (b) does not properly reflect the activity, business or income of a
10 taxpayer within the metropolitan commuter transportation district, then
11 the commissioner shall be authorized, in the commissioner's discretion,
12 to adjust such methodology, procedures and computations for the purpose
13 of allocating such taxes by:
14 (A) excluding one or more factors therein;
15 (B) including one or more other factors therein, such as expenses,
16 purchases, receipts other than premiums, real property or tangible
17 personal property; or
18 (C) any other similar or different method which allocates such taxes
19 by attributing a fair and proper portion of such taxes to the metropol-
20 itan commuter transportation district. The commissioner from time to
21 time shall publish all rulings of general public interest with respect
22 to any application of the provisions of the preceding sentence. The
23 commissioner may promulgate rules and regulations to further implement
24 the provisions of this section.
25 (3) Such tax surcharge shall be computed at the rate of eighteen
26 percent of the taxes imposed under sections fifteen hundred one and
27 fifteen hundred ten of this article as limited by section fifteen
28 hundred five of this article, as allocated to such district, for such
29 taxable years or any part of such taxable years ending before December
30 thirty-first, nineteen hundred eighty-three after the deduction of any
31 credits otherwise allowable under this article, at the rate of seventeen
32 percent of the taxes imposed under such sections as limited by section
33 fifteen hundred five of this article, as allocated to such district, for
34 such taxable years or any part of such taxable years ending on or after
35 December thirty-first, nineteen hundred eighty-three and before January
36 first, two thousand three after the deduction of any credits otherwise
37 allowable under this article, and at the rate of seventeen percent of
38 the taxes imposed under sections fifteen hundred one, fifteen hundred
39 two-a, and fifteen hundred ten of this article, as limited or otherwise
40 determined by subdivision (a) or (b) of section fifteen hundred five of
41 this article, as allocated to such district, for such taxable years or
42 any part of such taxable years ending after December thirty-first, two
43 thousand two after the deduction of any credits otherwise allowable
44 under this article; provided, however, that the tax surcharge imposed by
45 this section shall not be imposed upon any taxpayer for more than
46 [three] four hundred [seventy-two] thirty-two months. Provided however,
47 that for taxable years commencing on or after July first, two thousand,
48 and in the case of taxpayers subject to tax under section fifteen
49 hundred two-a of this article, for taxable years of such taxpayers
50 beginning on or after July first, two thousand and before January first,
51 two thousand three, such surcharge shall be calculated as if (i) the
52 rate of the tax computed under paragraph one of subdivision (a) of
53 section fifteen hundred two of this article was nine percent and (ii)
54 the rate of the limitation on tax set forth in section fifteen hundred
55 five of this article for domestic, foreign and alien insurance corpo-
S. 2609--D 10 A. 3009--D
1 rations except life insurance corporations was two and six-tenths
2 percent.
3 § 7. This act shall take effect immediately.
4 PART B
5 Section 1. Paragraph 3 of subdivision (b) of section 24 of the tax
6 law, as added by section 1 of part P of chapter 60 of the laws of 2004,
7 is amended to read as follows:
8 (3) "Qualified film" means a feature-length film, television film,
9 relocated television production, television pilot and/or each episode of
10 a television series, regardless of the medium by means of which the
11 film, pilot or episode is created or conveyed. "Qualified film" shall
12 not include (i) a documentary film, news or current affairs program,
13 interview or talk program, "how-to" (i.e., instructional) film or
14 program, film or program consisting primarily of stock footage, sporting
15 event or sporting program, game show, award ceremony, film or program
16 intended primarily for industrial, corporate or institutional end-users,
17 fundraising film or program, daytime drama (i.e., daytime "soap opera"),
18 commercials, music videos or "reality" program, or (ii) a production for
19 which records are required under section 2257 of title 18, United States
20 code, to be maintained with respect to any performer in such production
21 (reporting of books, films, etc. with respect to sexually explicit
22 conduct).
23 § 2. Subdivision (b) of section 24 of the tax law is amended by adding
24 a new paragraph 8 to read as follows:
25 (8) "Relocated television production" shall mean, notwithstanding the
26 limitations in subparagraph (i) of paragraph three of this subdivision,
27 a television production that is a talk or variety program that filmed at
28 least five seasons outside the state prior to its first relocated season
29 in New York, the episodes are filmed before a studio audience of two
30 hundred or more, and the relocated television production incurs (i) at
31 least thirty million dollars in annual production costs in the state, or
32 (ii) at least ten million dollars in capital expenditures at a qualified
33 production facility in the state.
34 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
35 added by chapter 268 of the laws of 2012, is amended to read as follows:
36 (4) Additional pool 2 - The aggregate amount of tax credits allowed in
37 subdivision (a) of this section shall be increased by an [addition]
38 additional four hundred twenty million dollars in each year starting in
39 two thousand ten[, four hundred twenty million dollars in two thousand
40 eleven, four hundred twenty million dollars in two thousand twelve, four
41 hundred twenty million dollars in two thousand thirteen and four hundred
42 twenty million dollars in two thousand fourteen] through two thousand
43 nineteen provided however, seven million dollars of the annual allo-
44 cation shall be available for the empire state film post production
45 credit pursuant to section thirty-one of this [chapter] article in two
46 thousand thirteen and two thousand fourteen and twenty-five million
47 dollars of the annual allocation shall be available for the empire state
48 film post production credit pursuant to section thirty-one of this arti-
49 cle in each year starting in two thousand fifteen through two thousand
50 nineteen. This amount shall be allocated by the governor's office for
51 motion picture and television development among taxpayers in accordance
52 with subdivision (a) of this section. If the [director of the governor's
53 office for motion picture and television development] commissioner of
54 economic development determines that the aggregate amount of tax credits
S. 2609--D 11 A. 3009--D
1 available from additional pool 2 for the empire state film production
2 tax credit have been previously allocated, and determines that the pend-
3 ing applications from eligible applicants for the empire state film post
4 production tax credit pursuant to section thirty-one of this [chapter]
5 article is insufficient to utilize the balance of unallocated empire
6 state film post production tax credits from such pool, the remainder,
7 after such pending applications are considered, shall be made available
8 for allocation in the empire state film tax credit pursuant to this
9 section, subdivision thirty-six of section two hundred ten and
10 subsection (gg) of section six hundred six of this chapter. Also, if
11 the commissioner of economic development determines that the aggregate
12 amount of tax credits available from additional pool 2 for the empire
13 state film post production tax credit have been previously allocated,
14 and determines that the pending applications from eligible applicants
15 for the empire state film production tax credit pursuant to this section
16 is insufficient to utilize the balance of unallocated film production
17 tax credits from such pool, then all or part of the remainder, after
18 such pending applications are considered, shall be made available for
19 allocation for the empire state film post production credit pursuant to
20 this section, subdivision forty-one of section two hundred ten and
21 subsection (gg) of section six hundred six of this chapter. The gover-
22 nor's office for motion picture and television development must notify
23 taxpayers of their allocation year and include the allocation year on
24 the certificate of tax credit. Taxpayers eligible to claim a credit
25 must report the allocation year directly on their empire state film
26 production credit tax form for each year a credit is claimed and include
27 a copy of the certificate with their tax return. In the case of a quali-
28 fied film that receives funds from additional pool 2, no empire state
29 film production credit shall be claimed before the later of the taxable
30 year the production of the qualified film is complete, or the taxable
31 year immediately following the allocation year for which the film has
32 been allocated credit by the governor's office for motion picture and
33 television development.
34 § 4. Paragraph 1 of subdivision (b) of section 24 of the tax law, as
35 amended by section 6 of part Q of chapter 57 of the laws of 2010, is
36 amended to read as follows:
37 (1) "Qualified production costs" means production costs only to the
38 extent such costs are attributable to the use of tangible property or
39 the performance of services within the state directly and predominantly
40 in the production (including pre-production and post production) of a
41 qualified film[, provided, however, that qualified production costs
42 shall not include post production costs unless the portion of the post
43 production costs paid or incurred that is attributable to the use of
44 tangible property or the performance of services in New York in the
45 production of such qualified film equals or exceeds seventy-five percent
46 of the total post production costs spent within and without New York in
47 the production of such qualified film].
48 § 5. Paragraph 3 of subdivision (a) of section 31 of the tax law, as
49 added by section 12 of part Q of chapter 57 of the laws of 2010, is
50 amended to read as follows:
51 (3) (i) A taxpayer shall not be eligible for the credit established by
52 this section for qualified post production costs, excluding the costs
53 for visual effects and animation, unless the qualified post production
54 costs, excluding the costs for visual effects and animation, at a quali-
55 fied post production facility meet or exceed seventy-five percent of the
56 total post production costs, excluding the costs for visual effects and
S. 2609--D 12 A. 3009--D
1 animation, paid or incurred in the post production of the qualified film
2 at any post production facility. (ii) A taxpayer shall not be eligible
3 for the credit established by this section for qualified post production
4 costs which are costs for visual effects or animation unless the quali-
5 fied post production costs for visual effects or animation at a quali-
6 fied post production facility meet or exceed three million dollars or
7 twenty percent of the total post production costs for visual effects or
8 animation paid or incurred in the post production of a qualified film at
9 any post production facility, whichever is less. (iii) A taxpayer may
10 claim a credit for qualified post production costs excluding the costs
11 for visual effects and animation, and for qualified post production
12 costs of visual effects and animation, provided that the criteria in
13 subparagraphs (i) and (ii) of this paragraph are both satisfied. The
14 credit shall be allowed for the taxable year in which the production of
15 such qualified film is completed.
16 § 5-a. Subdivision (a) of section 31 of the tax law, as added by
17 section 12 of part Q of chapter 57 of the laws of 2010, is amended by
18 adding a new paragraph 5 to read as follows:
19 (5) If the amount of the credit is at least one million dollars but
20 less than five million dollars, the credit shall be claimed over a two
21 year period beginning in the first taxable year in which the credit may
22 be claimed and in the next succeeding taxable year, with one-half of the
23 amount of credit allowed being claimed in each year. If the amount of
24 the credit is at least five million dollars, the credit shall be claimed
25 over a three year period beginning in the first taxable year in which
26 the credit may be claimed and in the next two succeeding taxable years,
27 with one-third of the amount of the credit allowed being claimed in each
28 year.
29 § 6. Section 3 of part Y-1 of chapter 57 of the laws of 2009, amending
30 the tax law relating to the empire state film production credit, is
31 amended to read as follows:
32 § 3. a. The governor's office of motion picture and television devel-
33 opment shall file a report on a quarterly basis with the director of the
34 division of the budget and the chairmen of the assembly ways and means
35 committee and senate finance committee. The report shall be filed within
36 fifteen days after the close of the calendar quarter. The first report
37 shall cover the calendar quarter that begins April 1, 2009. The report
38 must contain the following information for the calendar quarter:
39 (1) the total dollar amount of credits allocated during each month of
40 the calendar quarter, broken down by month;
41 (2) the number of film projects which have been allocated tax credits
42 of less than $1 million per project and the total dollar amount of cred-
43 its allocated to those projects;
44 (3) the number of film projects which have been allocated tax credits
45 of $1 million or more but less than $5 million per project and the total
46 dollar amount of credits allocated to those projects;
47 (4) the number of film projects which have been allocated tax credits
48 of $5 million or more per project and the total dollar amount of credits
49 allocated to those projects; [and]
50 (5) a list of each film project which has been allocated a tax credit
51 and for each of those projects (a) the estimated number of employees
52 associated with the project, (b) the estimated qualified costs for the
53 project, [and] (c) the estimated total costs of the project, (d) the
54 credit-eligible man hours for each project; and (e) total wages for such
55 credit-eligible man hours for each project; and
S. 2609--D 13 A. 3009--D
1 (6)(a) the name of each taxpayer allocated a tax credit for each
2 project and the county of residence or incorporation of such taxpayer
3 or, if the taxpayer does not reside or is not incorporated in New York,
4 then the state of residence or incorporation; provided however, if the
5 taxpayer claims a tax credit because the taxpayer is a member of a
6 limited liability company, a partner in a partnership or a shareholder
7 in a subchapter S corporation, the name of each limited liability compa-
8 ny, partnership or subchapter S corporation earning any of those tax
9 credits must be included in the report instead of information about the
10 taxpayer claiming the tax credit, (b) the amount of tax credit allocated
11 to each taxpayer; provided however, if the taxpayer claims a tax credit
12 because the taxpayer is a member of a limited liability company, a part-
13 ner in a partnership or a shareholder in a subchapter S corporation, the
14 amount of tax credit earned by each entity must be included in the
15 report instead of information about the taxpayer claiming the tax cred-
16 it, and (c) information identifying the project associated with each
17 taxpayer for which a tax credit was claimed under section 24 or section
18 31, as added by chapter 57 of the laws of 2010, of the tax law, includ-
19 ing the name of the film and county in which the project is located; and
20 b. The governor's office of motion picture and television development
21 shall file a report on a biennial basis with the director of the divi-
22 sion of the budget and the chairs of the assembly ways and means commit-
23 tee and senate finance committee. The report shall be filed within
24 fifteen days after the close of the calendar year. The first report
25 shall cover a two year period that begins on January first, two thousand
26 thirteen. The report must be prepared by an independent third party
27 auditor and include: (1) information regarding the empire state film
28 production credit and post production credit programs including the
29 efficiency of operations, reliability of financial reporting, compliance
30 with laws and regulations and distribution of assets and funds; (2) an
31 economic impact study prepared by an independent third party of the film
32 credit programs; and (3) any other information and/or other statistical
33 information that the commissioner of economic development deems to be
34 useful in analyzing the effects of the program.
35 § 7. Subdivision (a) of section 24 of the tax law is amended by adding
36 a new paragraph 5 to read as follows:
37 (5) For the period two thousand fifteen through two thousand nineteen,
38 in addition to the amount of credit established in paragraph two of this
39 subdivision, a taxpayer shall be allowed a credit equal to the product
40 (or pro rata share of the product, in the case of a member of a partner-
41 ship) of ten percent and the amount of wages or salaries paid to indi-
42 viduals directly employed (excluding those employed as writers, direc-
43 tors, music directors, producers and performers, including background
44 actors with no scripted lines) by a qualified film production company or
45 a qualified independent film production company for services performed
46 by those individuals in one of the counties specified in this paragraph
47 in connection with a qualified film with a minimum budget of five
48 hundred thousand dollars. For purposes of this additional credit, the
49 services must be performed in one or more of the following counties:
50 Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango,
51 Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee,
52 Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Mont-
53 gomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego,
54 Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
55 Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed
56 pursuant to the authority of this paragraph shall be five million
S. 2609--D 14 A. 3009--D
1 dollars each year during the period two thousand fifteen through two
2 thousand nineteen of the annual allocation made available to the program
3 pursuant to paragraph four of subdivision (e) of this section. Such
4 aggregate amount of credits shall be allocated by the governor's office
5 for motion picture and television development among taxpayers in order
6 of priority based upon the date of filing an application for allocation
7 of film production credit with such office. If the total amount of allo-
8 cated credits applied for under this paragraph in any year exceeds the
9 aggregate amount of tax credits allowed for such year under this para-
10 graph, such excess shall be treated as having been applied for on the
11 first day of the next year. If the total amount of allocated tax cred-
12 its applied for under this paragraph at the conclusion of any year is
13 less than five million dollars, the remainder shall be treated as part
14 of the annual allocation made available to the program pursuant to para-
15 graph four of subdivision (e) of this section. However, in no event may
16 the total of the credits allocated under this paragraph and the credits
17 allocated under paragraph five of subdivision (a) of section thirty-one
18 of this article exceed five million dollars in any year during the peri-
19 od two thousand fifteen through two thousand nineteen.
20 § 8. Subdivision (a) of section 31 of the tax law, as added by section
21 12 of Part Q of chapter 57 of the laws of 2010, is amended by adding a
22 new paragraph 5 to read as follows:
23 (5) For the period two thousand fifteen through two thousand nineteen,
24 in addition to the amount of credit established in paragraph two of
25 subdivision (a) of this section, a taxpayer shall be allowed a credit
26 equal to the product (or pro rata share of the product, in the case of a
27 member of a partnership) of ten percent and the amount of wages or sala-
28 ries paid to individuals directly employed (excluding those employed as
29 writers, directors, music directors, producers and performers, including
30 background actors with no scripted lines) for services performed by
31 those individuals in one of the counties specified in this paragraph in
32 connection with the post production work on a qualified film with a
33 minimum budget of five hundred thousand dollars at a qualified post
34 production facility in one of the counties listed in this paragraph. For
35 purposes of this additional credit, the services must be performed in
36 one or more of the following counties: Allegany, Broome, Cattaraugus,
37 Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware,
38 Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson,
39 Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Ononda-
40 ga, Ontario, Orleans, Oswego, Otsego, Schoharie, Schuyler, Seneca, St.
41 Lawrence, Steuben, Tioga, Tompkins, Wayne, Wyoming, or Yates. The aggre-
42 gate amount of tax credits allowed pursuant to the authority of this
43 paragraph shall be five million dollars each year during the period two
44 thousand fifteen through two thousand nineteen of the annual allocation
45 made available to the empire state film post production credit pursuant
46 to paragraph four of subdivision (e) of section twenty-four of this
47 article. Such aggregate amount of credits shall be allocated by the
48 governor's office for motion picture and television development among
49 taxpayers in order of priority based upon the date of filing an applica-
50 tion for allocation of post production credit with such office. If the
51 total amount of allocated credits applied for under this paragraph in
52 any year exceeds the aggregate amount of tax credits allowed for such
53 year under this paragraph, such excess shall be treated as having been
54 applied for on the first day of the next year. If the total amount of
55 allocated tax credits applied for under this paragraph at the conclusion
56 of any year is less than five million dollars, the remainder shall be
S. 2609--D 15 A. 3009--D
1 treated as part of the annual allocation for two thousand seventeen made
2 available to the empire state film post production credit pursuant to
3 paragraph four of subdivision (e) of section twenty four of this arti-
4 cle. However, in no event may the total of the credits allocated under
5 this paragraph and the credits allocated under paragraph five of subdi-
6 vision (a) of section twenty-four of this article exceed five million
7 dollars in any year during the period two thousand fifteen through two
8 thousand nineteen.
9 § 9. This act shall take effect immediately, provided, however, that
10 sections four and five of this act shall apply to (a) taxpayers submit-
11 ting initial applications to the governor's office of motion picture and
12 television development on or after the date this act shall have become a
13 law, and (b) to taxpayers who filed an initial application before this
14 act shall have become a law but who have not yet submitted a final
15 application to the governor's office of motion picture and television
16 development on or before the date this act shall have become a law,
17 provided such taxpayers agree to have the amendments made to section 3
18 of part Y-1 of chapter 57 of the laws of 2009, amending the tax law
19 relating to the empire state film production credit, which added a new
20 paragraph 6 to subdivision (a) of such section 3 apply to them; and the
21 amendments made to section 3 of part Y-1 of chapter 57 of the laws of
22 2009, amending the tax law relating to the empire state film production
23 credit, with the exception of subdivision b of such section, shall only
24 apply to taxpayers submitting initial applications to the governor's
25 office of motion picture and television development on or after the date
26 this act shall become a law.
27 PART C
28 Section 1. Section 1 of chapter 174 of the laws of 1968 constituting
29 the urban development corporation act is amended by adding a new section
30 16-v to read as follows:
31 § 16-v. New York state business incubator and innovation hot spot
32 support act. 1. (a) The corporation is authorized, within available
33 appropriations, to issue requests for proposals once per fiscal year to
34 provide grants pursuant to subdivisions five and six of this section for
35 the purposes established under this act. The corporation may designate
36 entities, which upon application meet the requirements of subdivision
37 two of this section as New York state incubators, and may provide grants
38 and assistance as provided under subdivisions five and six of this
39 section to such designated entities. "New York state incubator" shall
40 mean a business incubation program which also provides physical space or
41 which is a virtual incubation program that has been designated upon
42 application by the corporation as a New York state incubator pursuant to
43 subdivisions two and three of this section and which thereby becomes
44 eligible for benefits, support, services, and programs available pursu-
45 ant to such designation. Provided however, that virtual incubators which
46 provide assistance to eligible businesses not in residence in one phys-
47 ical location, shall submit a plan of operation which sets forth the
48 maximum number of eligible businesses to be served and their geographic
49 distribution.
50 (b) From among the qualified "New York state incubators", the corpo-
51 ration is further authorized, within available appropriations, to desig-
52 nate applicants as "New York state innovation hot spots." An incubator
53 receiving a "New York state innovation hot spot" designation shall be
54 eligible for the benefits under section thirty-eight of the tax law,
S. 2609--D 16 A. 3009--D
1 subparagraph eighteen of paragraph (a) of subdivision nine of section
2 two hundred eight of the tax law, subdivision eleven of section two
3 hundred nine of the tax law, paragraph thirty-nine of subsection (c) of
4 section six hundred twelve of the tax law, paragraph one of subdivision
5 (d) of section one thousand one hundred nineteen of the tax law, and
6 paragraph thirty-five of subdivision (c) of section 11-1712 of the
7 administrative code of the city of New York.
8 2. Requirements for designation. (a) An entity wishing to be desig-
9 nated as a New York state innovation hot spot or as a New York state
10 incubator pursuant to this section shall be located in New York state
11 and shall have been in existence or otherwise in operation for a period
12 of at least three fiscal years prior to the current fiscal year, or
13 demonstrate continuity of staffing, program, and purpose showing contin-
14 uation through another auspice or governing entity, and shall have
15 demonstrated a connection to regional sources of innovation and exper-
16 tise, and that it meets the goals of creating jobs and incubating busi-
17 nesses with survival rates in excess of average startups, and that the
18 program has a strategic plan to continue to meet such goals for the
19 three years succeeding designation and that commits the program to
20 implementing best practices. Such demonstration shall include a commit-
21 ment by the sponsor to continue to maintain the program for at least
22 three years after such designation, and to provide any reporting infor-
23 mation that the corporation shall require.
24 (b) In determining whether an entity shall be designated as a New York
25 state innovation hot spot or New York state incubator, the corporation
26 shall require that the entity meet the requirements of subparagraphs (i)
27 and (ii) of this paragraph and may consider whether the entity has
28 developed the programs, services, and attributes in subparagraphs (iii)
29 through (xvi) of this paragraph:
30 (i) institutional stability and long term viability, indicated by:
31 the sponsor's commitment to financially and programmatically maintaining
32 the incubator for at least two years in addition to the current fiscal
33 year; receipt of non-state public and private grant and/or other revenue
34 sources including property rentals and program fees that are or have
35 proven to be predictable and reliable; and manageable debt service;
36 (ii) a strategic plan that describes the impact on the regional entre-
37 preneurial environment that the incubator is intended to have and
38 commits the incubator to best incubation practices and describes a
39 defined process that accelerates commercialization and development for a
40 client company or entity through provision of technical assistance,
41 direct mentorship, entrepreneurial education, and business development
42 services, including development of a business plan and markets, aid in
43 development of the management team, product, customers, and local or
44 regional supply chain partners, access to investment, and launching of a
45 successful business which will employ New Yorkers;
46 (iii) an integrated array of services which includes management guid-
47 ance, technical assistance, consulting, mentoring, business plan devel-
48 opment, aid in creation of the business entity, and ongoing counseling;
49 (iv) opportunities for clients to network, collaborate with other
50 business programs, and gain access to services, including through such
51 programs as the small business development center, the local or area
52 chamber of commerce or other business association, programs of the small
53 business administration, and/or other similar business organizations,
54 associations, and programs;
55 (v) access to capital via referral or other arrangements with finan-
56 cial institutions, venture capitalists, angel investors, investment
S. 2609--D 17 A. 3009--D
1 funds managed or financed by private entities or state or local economic
2 development organizations, or other similar or equivalent capital sourc-
3 es, evidenced by written agreements, memorandums of understanding,
4 letters of intent, or other endorsements acceptable to the corporation,
5 and including readying clients for financial meetings and interviews;
6 (vi) aid in accessing markets, via bid assistance or access programs
7 that may include but are not limited to literature review, establishment
8 of a resource documents room (physical or virtual), opportunity notifi-
9 cation of local, state, and federal governmental and private opportu-
10 nities, and identification of and introductions to potential first
11 customers;
12 (vii) physical office space and/or laboratory space and/or manufactur-
13 ing space under a written agreement for a period not to exceed five
14 years for any individual incubator client;
15 (viii) policies requiring participation by clients in the incubator
16 program, including disqualification or suspension from the program for
17 failure to participate;
18 (ix) criteria for acceptance and graduation from the program or phys-
19 ical space, and terms and conditions for ongoing relationships, if any,
20 between the incubator and the client;
21 (x) at least fifty percent of the total incubator budget provided from
22 sources other than tenant rents and fees and in-kind support from the
23 sponsoring entity, and must be from sources other than New York state
24 government agencies;
25 (xi) an independent advisory council or similar body that includes one
26 or more executive officers of firms that have graduated from the incuba-
27 tor, local economic development professionals, and individuals with
28 business and technology expertise in areas appropriate to the sector or
29 concentration of clients, and the mission and goal of the incubator;
30 (xii) a professional management and service delivery team with experi-
31 ence, expertise, or credentials in management, entrepreneurship, busi-
32 ness development, or other equivalent areas;
33 (xiii) access by clients to mentoring, advisory, or educational
34 services, including classroom teaching, from individuals who have
35 successfully created, grown or managed businesses or are lawyers,
36 professional accountants, or individuals who have been in business at an
37 executive level for at least five years;
38 (xiv) evidence that the incubator is a center of entrepreneurial
39 activities of a city, region, or distressed portion thereof, as docu-
40 mented by programs and activities coordinated with county or local
41 economic development organizations, investor and financial clubs or
42 institutions, or student or youth-oriented entrepreneurial activities;
43 (xv) a partnership with other incubators in the region to offer
44 services and opportunities for entrepreneurs and leverage regional
45 economic development assets; and
46 (xvi) a plan to recruit minority- and women-owned businesses for
47 location and participation with the incubator program.
48 (c) The corporation, subject to appropriations provided for this
49 purpose, may approve and designate five New York state incubator hot
50 spots in fiscal year two thousand thirteen-two thousand fourteen and
51 five additional New York state innovation hot spots in fiscal year two
52 thousand fourteen-two thousand fifteen. Such designees will be required
53 to demonstrate an affiliation with and the application support of at
54 least one college, university or independent research institution, and
55 that its programs and purposes are consistent with regional economic
56 development strategies.
S. 2609--D 18 A. 3009--D
1 3. Designation. (a) The corporation may designate applicants that meet
2 the requirements of subdivision two of this section as New York state
3 innovation hot spots or as New York state incubators.
4 (b) As a condition of maintaining designation, each incubator shall
5 annually submit to the corporation in a manner and according to a sched-
6 ule established by the corporation:
7 (i) updated information requested by the corporation pursuant to
8 subparagraph (iii) of paragraph (a) of subdivision two of this section;
9 (ii) its strategic plan, as updated along with a brief description of
10 its success in meeting the goals of its strategic plan;
11 (iii) a statement that the items listed in paragraph (b) of subdivi-
12 sion two of this section and, in the case of New York state innovation
13 hot spots, paragraph (c) of subdivision two of this section are still
14 applicable to the operations of the incubator, or any change in applica-
15 bility;
16 (iv) a list of business enterprises served by the incubator, and in
17 the case of New York state innovation hot spots, those clients certified
18 as a "qualified entity" eligible for tax incentives under section thir-
19 ty-eight of the tax law; and
20 (v) such additional information as the corporation may require.
21 (c) The corporation shall design simplified forms to aid in the
22 submission of the data required in this subdivision, which may be
23 submitted electronically. Such forms shall state the purposes of the
24 required data submissions.
25 (d) The corporation shall evaluate the operations of the New York
26 state innovation hot spot or the New York state incubator using methods
27 including but not limited to site visits, reports pursuant to specified
28 information, and review evaluations. If the corporation is unsatisfied
29 with the progress of a New York state innovation hot spot or a New York
30 state incubator, the corporation shall notify such incubator of the
31 results of its evaluations and the findings of deficiencies in the
32 incubator's operations and shall allow such incubator to remedy such
33 findings in a timely manner. For New York state innovation hot spots or
34 New York state incubators that receive operating grants pursuant to
35 paragraph (a) of subdivision five of this section, such evaluations
36 shall include independent peer review and shall take place no less than
37 once every three years or more frequently at the discretion of the
38 corporation. Such independent peer review shall result in a written
39 report that includes programmatic and fiscal evaluation of the incu-
40 bation program and recommendations for improvement.
41 4. Audit. The corporation shall have the authority to audit New York
42 innovation hot spots, New York state incubators and clients designated
43 by such hot spots as qualified entities.
44 5. Grants. (a) Operating grants. A program designated as a New York
45 state innovation hot spot or as a New York state incubator shall be
46 eligible for an operating grant in an amount to be determined by the
47 corporation from funds appropriated to the corporation for such purpose,
48 provided however that:
49 (i) Any such grant shall be matched on a two-to-one basis by the
50 institution receiving the funds and collaborative partners in the form
51 of cash or in-kind personnel, equipment, material donations, and other
52 facility and operations expenditures, provided that no more than fifty
53 percent of such match shall be in-kind;
54 (ii) A program applying for a grant shall demonstrate financial
55 stability and long term viability, as provided in subparagraph (i) of
56 paragraph (b) of subdivision two of this section;
S. 2609--D 19 A. 3009--D
1 (iii) A grant recipient shall agree to provide data as required to the
2 corporation and shall agree to conform to best practices as outlined by
3 state and/or national business incubator associations;
4 (iv) Failure to abide by the requirements of this subdivision or to
5 cure a default after review and agreement with the corporation shall
6 result in loss of the grant and disqualification of the designee as a
7 New York state innovation hot spot or as a New York state incubator; and
8 (v) Provided that a portion of the grants shall be awarded to the New
9 York state innovation hot spots and the New York state incubators.
10 (b) The corporation shall make entities designated as New York state
11 innovation hot spots or as New York state incubators aware of opportu-
12 nities for funding or grants by or through the corporation or the
13 department of economic development.
14 (c) No deduction. In addition to the foregoing requirements, an incu-
15 bator sponsor shall agree to dedicate all funds from any grants or
16 support received pursuant to this subdivision to the operations of the
17 incubator without deductions for overhead, indirect costs, or facilities
18 and administration charges of such sponsor.
19 6. Other assistance. The corporation shall make such other aid,
20 assistance, and resources available to New York state innovation hot
21 spots and New York state incubators and their clients as it shall deem
22 useful and appropriate for the furtherance of the purposes of this act,
23 including without limitation technical assistance, aid in marketing, aid
24 in reaching and providing entrepreneurship training opportunities to
25 such marginalized groups as those composed of individuals who are minor-
26 ity, female, disabled, or poor, and others, curriculum development, and
27 other services and resources. The corporation shall also seek assistance
28 from other state agencies in the development of procurement and market-
29 ing resources and training opportunities for New York state innovation
30 hot spots and New York state incubators and their clients.
31 7. Association of incubators. The corporation may consult with a
32 statewide entity which is a membership association of incubators and
33 others and which has expertise in providing services to incubators for
34 the purpose of providing services to entities designated as New York
35 state innovation hot spots and New York state incubators and to entities
36 seeking to apply or applying to become New York state innovation hot
37 spots and New York state incubators or which otherwise are included as
38 recipients of services pursuant to this section. Such services shall
39 include advising concerning best practices of incubation and development
40 of plans to incorporate and integrate such practices, development of
41 data concerning incubation in this state and recommendations for
42 improvement, aid in marketing and event sponsorship, and such other
43 services as the corporation shall deem necessary and appropriate to the
44 strengthening of business incubation in this state.
45 8. New York state innovation hot spots may certify clients which meet
46 the requirements of subdivision nine of this section as qualified enti-
47 ties eligible for New York state innovation hot spot program tax bene-
48 fits pursuant to section thirty-eight of the tax law. Under no circum-
49 stance may business enterprises of incubators designated as New York
50 state incubators under paragraph (b) of subdivision one of this section
51 be eligible for tax benefits under section thirty-eight of the tax law.
52 9. "Qualified entity" shall mean a business enterprise that is:
53 (i) in the formative stage of development;
54 (ii) located in New York state;
55 (iii) either: (A) any corporation, except a corporation which:
S. 2609--D 20 A. 3009--D
1 (1) over fifty percent of the number of shares of stock entitling the
2 holders thereof to vote for the election of directors or trustees is
3 owned or controlled, either directly or indirectly, by a taxpayer
4 subject to tax under the following provisions of the tax law: article
5 nine-A; section one hundred eighty-three, one hundred eighty-four or one
6 hundred eighty-five of article nine; article thirty-two or article thir-
7 ty-three; or
8 (2) is substantially similar in operation and in ownership to a busi-
9 ness entity (or entities) taxable or previously taxable under the
10 following provisions of the tax law: article nine-A; section one
11 hundred eighty-three, one hundred eighty-four, one hundred eighty-five
12 or former section one hundred eighty-six of article nine; article thir-
13 ty-two; article thirty-three; article twenty-three, or would have been
14 subject to tax under such article twenty-three (as such article was in
15 effect on January first, nineteen hundred eighty) or the income (or
16 losses) of which is (or was) includable under article twenty-two; or
17 (B) a sole proprietorship, partnership, limited partnership, limited
18 liability company, or New York subchapter S corporation that is not
19 substantially similar in operation and in ownership to a business entity
20 (or entities) taxable, or previously taxable, under article nine-A of
21 the tax law, section one hundred eighty-three, one hundred eighty-four,
22 one hundred eighty-five or former section one hundred eighty-six of
23 article nine of the tax law, article thirty-two or thirty-three of the
24 tax law, article twenty-three of the tax law or which would have been
25 subject to tax under such article twenty-three (as such article was in
26 effect on January first, nineteen hundred eighty) or the income (or
27 losses) of which is (or was) includable under article twenty-two of the
28 tax law; and
29 (iv) is certified by a New York state innovation hot spot as being
30 approved to locate in, or be part of a virtual incubation program oper-
31 ated by, such New York innovation hot spot.
32 10. The corporation may establish guidelines concerning this program
33 to implement the purposes of this act.
34 § 2. The tax law is amended by adding a new section 38 to read as
35 follows:
36 § 38. New York innovation hot spot program tax benefits. (a) As used
37 in this chapter, the terms "New York state innovation hot spot" and
38 "qualified entity" shall have the same meaning as under section
39 sixteen-v of the New York state urban development corporation act.
40 (b) A taxpayer under article nine-A of this chapter that is a quali-
41 fied entity of a New York state innovation hot spot shall be subject
42 only to the fixed dollar minimum tax, imposed under paragraph (d) of
43 subdivision one of section two hundred ten of this chapter, for five
44 taxable years, beginning with the first taxable year during which the
45 qualified entity becomes a tenant in or part of an innovation hot spot.
46 A taxpayer under article nine-A of this chapter that is a corporate
47 partner in a qualified entity, or is a qualified entity that is located
48 both within and without an innovation hot spot, shall be allowed only a
49 deduction for the amount of income or gain included in its federal taxa-
50 ble income to the extent that the income or gain is attributable to the
51 operations at or as part of the innovation hot spot. The deduction is
52 allowed for five taxable years, beginning with the first taxable year
53 during which the qualified entity becomes a tenant in or part of an
54 innovation hot spot.
55 (c) An individual who is the sole proprietor of a qualified entity or
56 a member of a limited liability company, a partner in a partnership or a
S. 2609--D 21 A. 3009--D
1 shareholder in a New York subchapter S corporation where the limited
2 liability company, partnership, or S corporation is a qualified entity,
3 that is taxable under article twenty-two of this chapter shall be
4 allowed a deduction for the amount of income or gain included in its
5 federal adjusted gross income to the extent that the income or gain is
6 attributable to the operations of a qualified entity at or as a part of
7 a New York state innovation hot spot. The deduction is allowed for five
8 taxable years, beginning with the first taxable year during which the
9 qualified entity becomes a tenant in or part of an innovation hot spot.
10 (d) A qualified entity that is a tenant in or part of a New York state
11 innovation hot spot shall be eligible for a credit or refund for sales
12 and use taxes imposed on the retail sale of tangible personal property
13 or services under subdivisions (a), (b), and (c) of section eleven
14 hundred five and section eleven hundred ten of this chapter. The credit
15 or refund shall be allowed for sixty months beginning with the first
16 full month after the qualified entity becomes a tenant in an incubator
17 hot spot.
18 (e) A taxpayer who claims any of the tax benefits described in this
19 section is no longer eligible for any other New York state exemptions,
20 deductions, or credit or refunds under this chapter to the extent that
21 any such exemption, deduction, credit or refund is attributable to the
22 business operations of a tenant in or as part of the New York state
23 innovation hot spot. The election to claim the tax benefits described in
24 this section is not revocable.
25 (f) Cross-references. For application of the tax benefits provided for
26 in this section, see the following provisions of this chapter:
27 (i) Article 9-A, section 208, subdivision (9), paragraph (a), subpara-
28 graph (18).
29 (ii) Article 9-A, section 209, subdivision 11.
30 (iii) Article 22, section 612, subsection (c), paragraph (39).
31 (iv) Article 28, section 1119, subdivision (d).
32 § 3. Paragraph (a) of subdivision 9 of section 208 of the tax law is
33 amended by adding a new subparagraph 18 to read as follows:
34 (18) the amount of income or gain included in federal taxable income
35 of a taxpayer that is a partner in a qualified entity or is a qualified
36 entity that is located both within and without a New York state inno-
37 vation hot spot, to the extent that the income or gain is attributable
38 to the operations of a qualified entity at or as part of the New York
39 state innovation hot spot as provided in section thirty-eight of this
40 chapter.
41 § 4. Section 209 of the tax law is amended by adding a new subdivision
42 11 to read as follows:
43 11. Except as provided in subparagraph eighteen of paragraph (a) of
44 subdivision nine of section two hundred eight of this article, a corpo-
45 ration that is a qualified entity of a New York state innovation hot
46 spot shall be subject only to the fixed dollar minimum tax under para-
47 graph (d) of subdivision one of section two hundred ten of this article,
48 as provided in section thirty-eight of this chapter.
49 § 5. Subsection (c) of section 612 of the tax law is amended by adding
50 a new paragraph 39 to read as follows:
51 (39) Any income or gain, to the extent it is included in federal
52 adjusted gross income of an individual who is the sole proprietor of a
53 qualified entity or a member of a limited liability company, a partner
54 in a partnership or a shareholder in a New York subchapter S corporation
55 that is a qualified entity, attributable to the operations of a quali-
S. 2609--D 22 A. 3009--D
1 fied entity at its location in or as part of a New York state innovation
2 hot spot, as provided in section thirty-eight of this chapter.
3 § 6. Paragraph 1 of subdivision (d) of section 1119 of the tax law, as
4 added by section 31 of part S-1 of chapter 57 of the laws of 2009, is
5 amended to read as follows:
6 (1) Subject to the conditions and limitations provided for in this
7 section, a refund or credit will be allowed for taxes imposed on the
8 retail sale of tangible personal property described in subdivision (a)
9 of section eleven hundred five of this article, and on every sale of
10 services described in subdivisions (b) and (c) of such section, and
11 consideration given or contracted to be given for, or for the use of,
12 such tangible personal property or services, where such tangible
13 personal property or services are sold to a qualified empire zone enter-
14 prise or to a qualified entity that is also a tenant in or part of a New
15 York state innovation hot spot as provided in section thirty-eight of
16 this chapter, provided that (A) such tangible personal property or
17 tangible personal property upon which such a service has been performed
18 or such service (other than a service described in subdivision (b) of
19 section eleven hundred five of this article) is directly and predomi-
20 nantly, or such a service described in clause (A) or (D) of paragraph
21 one of such subdivision (b) of section eleven hundred five of this arti-
22 cle is directly and exclusively, used or consumed by (i) such qualified
23 empire zone enterprise in an area designated as an empire zone pursuant
24 to article eighteen-B of the general municipal law with respect to which
25 such enterprise is certified pursuant to such article eighteen-B, or
26 (ii) such qualified entity at its location in or as part of a New York
27 state innovation hot spot or (B) such a service described in clause (B)
28 or (C) of paragraph one of subdivision (b) of section eleven hundred
29 five of this article is delivered and billed to (i) such enterprise at
30 an address in such empire zone or (ii) such qualified entity at its
31 location in or as part of the New York state innovation hot spot, or (C)
32 the enterprise's place of primary use of the service described in para-
33 graph two of such subdivision (b) of section eleven hundred five is at
34 an address in such empire zone or at its location in or as part of a New
35 York state innovation hot spot; provided, further, that, in order for a
36 motor vehicle, as defined in subdivision (c) of section eleven hundred
37 seventeen of this article, or tangible personal property related to such
38 a motor vehicle to be found to be used predominantly in such a zone, at
39 least fifty percent of such motor vehicle's use shall be exclusively
40 within such zone or at least fifty percent of such motor vehicle's use
41 shall be in activities originating or terminating in such zone, or both;
42 and either or both such usages shall be computed either on the basis of
43 mileage or hours of use, at the discretion of such enterprise. For
44 purposes of this subdivision, tangible personal property related to such
45 a motor vehicle shall include a battery, diesel motor fuel, an engine,
46 engine components, motor fuel, a muffler, tires and similar tangible
47 personal property used in or on such a motor vehicle.
48 § 7. Subdivision (c) of section 11-1712 of the administrative code of
49 the city of New York is amended by adding a new paragraph 35 to read as
50 follows:
51 (35) as provided in section thirty-eight of the tax law, any income or
52 gain, to the extent it is included in federal adjusted gross income of
53 an individual who is the sole proprietor of a qualified entity or a
54 member of a limited liability company, a partner in a partnership or a
55 shareholder in a New York subchapter S corporation that is a qualified
56 entity as defined in section sixteen-v of the New York state urban
S. 2609--D 23 A. 3009--D
1 development corporation act attributable to the operations of such qual-
2 ified entity at its location in or as part of a New York state inno-
3 vation hot spot, as defined in paragraph (a) of subdivision one of
4 section sixteen-v of the New York state urban development corporation
5 act.
6 § 8. This act shall take effect immediately.
7 PART D
8 Section 1. Subsection (g) of section 615 of the tax law, as added by
9 section 3 of part HH of chapter 57 of the laws of 2010, is amended to
10 read as follows:
11 (g)(1) With respect to an individual whose New York adjusted gross
12 income is over one million dollars and no more than ten million dollars,
13 the New York itemized deduction shall be an amount equal to fifty
14 percent of any charitable contribution deduction allowed under section
15 one hundred seventy of the internal revenue code for taxable years
16 beginning after two thousand nine and before two thousand [thirteen]
17 sixteen. With respect to an individual whose New York adjusted gross
18 income is over one million dollars, the New York itemized deduction
19 shall be an amount equal to fifty percent of any charitable contribution
20 deduction allowed under section one hundred seventy of the internal
21 revenue code for taxable years beginning in two thousand nine or after
22 two thousand [twelve] fifteen.
23 (2) With respect to an individual whose New York adjusted gross income
24 is over ten million dollars, the New York itemized deduction shall be an
25 amount equal to twenty-five percent of any charitable contribution
26 deduction allowed under section one hundred seventy of the internal
27 revenue code for taxable years beginning after two thousand nine and
28 ending before two thousand [thirteen] sixteen.
29 § 2. Subdivision (g) of section 11-1715 of the administrative code of
30 the city of New York, as added by section 7 of part HH of chapter 57 of
31 the laws of 2010, is amended to read as follows:
32 (g) (1) With respect to an individual whose New York adjusted gross
33 income is over one million dollars but no more than ten million dollars,
34 the New York itemized deduction shall be an amount equal to fifty
35 percent of any charitable contribution deduction allowed under section
36 one hundred seventy of the internal revenue code for taxable years
37 beginning after two thousand nine and before two thousand [thirteen]
38 sixteen. With respect to an individual whose New York adjusted gross
39 income is over one million dollars, the New York itemized deduction
40 shall be an amount equal to fifty percent of any charitable contribution
41 deduction allowed under section one hundred seventy of the internal
42 revenue code for taxable years beginning in two thousand nine or after
43 two thousand [twelve] fifteen.
44 (2) With respect to an individual whose New York adjusted gross income
45 is over ten million dollars, the New York itemized deduction shall be an
46 amount equal to twenty-five percent of any charitable contribution
47 deduction allowed under section one hundred seventy of the internal
48 revenue code for taxable years beginning after two thousand nine and
49 ending before two thousand sixteen.
50 § 3. This act shall take effect immediately.
51 PART E
S. 2609--D 24 A. 3009--D
1 Section 1. Subparagraph 17 of paragraph (a) of subdivision 9 of
2 section 208 of the tax law is REPEALED.
3 § 2. Paragraph (o) of subdivision 9 of section 208 of the tax law, as
4 amended by section 1 of part M of chapter 686 of the laws of 2003,
5 clause (A) of subparagraph 2 as amended by section 4 of part J of chap-
6 ter 60 of the laws of 2007, is amended to read as follows:
7 (o) Related members expense add back [and income exclusion]. (1) Defi-
8 nitions. (A) Related member [or members. For purposes of this paragraph,
9 the term related member or members means a person, corporation, or other
10 entity, including an entity that is treated as a partnership or other
11 pass-through vehicle for purposes of federal taxation, whether such
12 person, corporation or entity is a taxpayer or not, where one such
13 person, corporation, or entity, or set of related persons, corporations
14 or entities, directly or indirectly owns or controls a controlling
15 interest in another entity. Such entity or entities may include all
16 taxpayers under articles nine, nine-A, thirteen, twenty-two, thirty-two,
17 thirty-three or thirty-three-A of this chapter]. "Related member" means
18 a related person as defined in subparagraph (c) of paragraph three of
19 subsection (b) of section four hundred sixty-five of the internal reven-
20 ue code, except that "fifty percent" shall be substituted for "ten
21 percent".
22 (B) [Controlling interest. A controlling interest shall mean (i) in
23 the case of a corporation, either thirty percent or more of the total
24 combined voting power of all classes of stock of such corporation, or
25 thirty percent or more of the capital, profits or beneficial interest in
26 such voting stock of such corporation, and (ii) in the case of a part-
27 nership, association, trust or other entity, thirty percent or more of
28 the capital, profits or beneficial interest in such partnership, associ-
29 ation, trust or other entity.] Effective rate of tax. "Effective rate of
30 tax" means, as to any state or U.S. possession, the maximum statutory
31 rate of tax imposed by the state or possession on or measured by a
32 related member's net income multiplied by the apportionment percentage,
33 if any, applicable to the related member under the laws of said juris-
34 diction. For purposes of this definition, the effective rate of tax as
35 to any state or U.S. possession is zero where the related member's net
36 income tax liability in said jurisdiction is reported on a combined or
37 consolidated return including both the taxpayer and the related member
38 where the reported transactions between the taxpayer and the related
39 member are eliminated or offset. Also, for purposes of this definition,
40 when computing the effective rate of tax for a jurisdiction in which a
41 related member's net income is eliminated or offset by a credit or simi-
42 lar adjustment that is dependent upon the related member either main-
43 taining or managing intangible property or collecting interest income in
44 that jurisdiction, the maximum statutory rate of tax imposed by said
45 jurisdiction shall be decreased to reflect the statutory rate of tax
46 that applies to the related member as effectively reduced by such credit
47 or similar adjustment.
48 (C) Royalty payments. Royalty payments are payments directly connected
49 to the acquisition, use, maintenance or management, ownership, sale,
50 exchange, or any other disposition of licenses, trademarks, copyrights,
51 trade names, trade dress, service marks, mask works, trade secrets,
52 patents and any other similar types of intangible assets as determined
53 by the commissioner, and [includes] include amounts allowable as inter-
54 est deductions under section one hundred sixty-three of the internal
55 revenue code to the extent such amounts are directly or indirectly for,
56 related to or in connection with the acquisition, use, maintenance or
S. 2609--D 25 A. 3009--D
1 management, ownership, sale, exchange or disposition of such intangible
2 assets.
3 (D) Valid Business Purpose. A valid business purpose is one or more
4 business purposes, other than the avoidance or reduction of taxation,
5 which alone or in combination constitute the primary motivation for some
6 business activity or transaction, which activity or transaction changes
7 in a meaningful way, apart from tax effects, the economic position of
8 the taxpayer. The economic position of the taxpayer includes an increase
9 in the market share of the taxpayer, or the entry by the taxpayer into
10 new business markets.
11 (2) Royalty expense add backs. (A) Except where a taxpayer is included
12 in a combined report with a related member pursuant to subdivision four
13 of section two hundred eleven of this article, for the purpose of
14 computing entire net income or other applicable taxable basis, a taxpay-
15 er must add back royalty payments [to a] directly or indirectly paid,
16 accrued, or incurred in connection with one or more direct or indirect
17 transactions with one or more related [member] members during the taxa-
18 ble year to the extent deductible in calculating federal taxable income.
19 (B) [The add back of royalty payments shall not be required if and to
20 the extent that such payments meet either of the following conditions:
21 (i) the related member during the same taxable year directly or indi-
22 rectly paid or incurred the amount to a person or entity that is not a
23 related member, and such transaction was done for a valid business
24 purpose and the payments are made at arm's length;
25 (ii) the royalty payments are paid or incurred to a related member
26 organized under the laws of a country other than the United States, are
27 subject to a comprehensive income tax treaty between such country and
28 the United States, and are taxed in such country at a tax rate at least
29 equal to that imposed by this state.
30 (3) Royalty income exclusions. For the purpose of computing entire net
31 income or other taxable basis, a taxpayer shall be allowed to deduct
32 royalty payments directly or indirectly received from a related member
33 during the taxable year to the extent included in the taxpayer's federal
34 taxable income unless such royalty payments would not be required to be
35 added back under subparagraph two of this paragraph or other similar
36 provision in this chapter.] Exceptions. (i) The adjustment required in
37 this paragraph shall not apply to the portion of the royalty payment
38 that the taxpayer establishes, by clear and convincing evidence of the
39 type and in the form specified by the commissioner, meets all of the
40 following requirements: (I) the related member was subject to tax in
41 this state or another state or possession of the United States or a
42 foreign nation or some combination thereof on a tax base that included
43 the royalty payment paid, accrued or incurred by the taxpayer; (II) the
44 related member during the same taxable year directly or indirectly paid,
45 accrued or incurred such portion to a person that is not a related
46 member; and (III) the transaction giving rise to the royalty payment
47 between the taxpayer and the related member was undertaken for a valid
48 business purpose.
49 (ii) The adjustment required in this paragraph shall not apply if the
50 taxpayer establishes, by clear and convincing evidence of the type and
51 in the form specified by the commissioner, that: (I) the related member
52 was subject to tax on or measured by its net income in this state or
53 another state or possession of the United States or some combination
54 thereof; (II) the tax base for said tax included the royalty payment
55 paid, accrued or incurred by the taxpayer; and (III) the aggregate
56 effective rate of tax applied to the related member in those jurisdic-
S. 2609--D 26 A. 3009--D
1 tions is no less than eighty percent of the statutory rate of tax that
2 applied to the taxpayer under section two hundred ten of this article
3 for the taxable year.
4 (iii) The adjustment required in this paragraph shall not apply if the
5 taxpayer establishes, by clear and convincing evidence of the type and
6 in the form specified by the commissioner, that: (I) the royalty payment
7 was paid, accrued or incurred to a related member organized under the
8 laws of a country other than the United States; (II) the related
9 member's income from the transaction was subject to a comprehensive
10 income tax treaty between such country and the United States; (III) the
11 related member was subject to tax in a foreign nation on a tax base that
12 included the royalty payment paid, accrued or incurred by the taxpayer;
13 (IV) the related member's income from the transaction was taxed in such
14 country at an effective rate of tax at least equal to that imposed by
15 this state; and (V) the royalty payment was paid, accrued or incurred
16 pursuant to a transaction that was undertaken for a valid business
17 purpose and using terms that reflect an arm's length relationship.
18 (iv) The adjustment required in this paragraph shall not apply if the
19 taxpayer and the commissioner agree in writing to the application or use
20 of alternative adjustments or computations. The commissioner may, in his
21 or her discretion, agree to the application or use of alternative
22 adjustments or computations when he or she concludes that in the absence
23 of such agreement the income of the taxpayer would not be properly
24 reflected.
25 § 3. Paragraph 6 of subdivision (a) of section 292 of the tax law, as
26 amended by section 15 of part M of chapter 686 of the laws of 2003, is
27 amended to read as follows:
28 (6) Related members expense add back [and income exclusion]. (A)
29 Definitions. (i) Related member [or members. For purposes of this para-
30 graph, the term related member or members means a person, corporation,
31 or other entity, including an entity that is treated as a partnership or
32 other pass-through vehicle for purposes of federal taxation, whether
33 such person, corporation or entity is a taxpayer or not, where one such
34 person, corporation, or entity, or set of related persons, corporations
35 or entities, directly or indirectly owns or controls a controlling
36 interest in another entity. Such entity or entities may include all
37 taxpayers under article nine, nine-A, thirteen, twenty-two, thirty-two,
38 thirty-three or thirty-three-A of this chapter]. "Related member" means
39 a related person as defined in subparagraph (c) of paragraph three of
40 subsection (b) of section four hundred sixty-five of the internal reven-
41 ue code, except that "fifty percent" shall be substituted for "ten
42 percent".
43 (ii) [Controlling interest. A controlling interest shall mean (I) in
44 the case of a corporation, either thirty percent or more of the total
45 combined voting power of all classes of stock of such corporation, or
46 thirty percent or more of the capital, profits or beneficial interest in
47 such voting stock of such corporation, and (II) in the case of a part-
48 nership, association, trust or other entity, thirty percent or more of
49 the capital, profits or beneficial interest in such partnership, associ-
50 ation, trust or other entity.] Effective rate of tax. "Effective rate of
51 tax" means, as to any state or U.S. possession, the maximum statutory
52 rate of tax imposed by the state or possession on or measured by a
53 related member's net income multiplied by the apportionment percentage,
54 if any, applicable to the related member under the laws of said juris-
55 diction. For purposes of this definition, the effective rate of tax as
56 to any state or U.S. possession is zero where the related member's net
S. 2609--D 27 A. 3009--D
1 income tax liability in said jurisdiction is reported on a combined or
2 consolidated return including both the taxpayer and the related member
3 where the reported transactions between the taxpayer and the related
4 member are eliminated or offset. Also, for purposes of this definition,
5 when computing the effective rate of tax for a jurisdiction in which a
6 related member's net income is eliminated or offset by a credit or simi-
7 lar adjustment that is dependent upon the related member either main-
8 taining or managing intangible property or collecting interest income in
9 that jurisdiction, the maximum statutory rate of tax imposed by said
10 jurisdiction shall be decreased to reflect the statutory rate of tax
11 that applies to the related member as effectively reduced by such credit
12 or similar adjustment.
13 (iii) Royalty payments. Royalty payments are payments directly
14 connected to the acquisition, use, maintenance or management, ownership,
15 sale, exchange, or any other disposition of licenses, trademarks, copy-
16 rights, trade names, trade dress, service marks, mask works, trade
17 secrets, patents and any other similar types of intangible assets as
18 determined by the commissioner, and [includes] include amounts allowable
19 as interest deductions under section one hundred sixty-three of the
20 internal revenue code to the extent such amounts are directly or indi-
21 rectly for, related to or in connection with the acquisition, use, main-
22 tenance or management, ownership, sale, exchange or disposition of such
23 intangible assets.
24 (iv) Valid business purpose. A valid business purpose is one or more
25 business purposes other than the avoidance or reduction of taxation
26 which alone or in combination constitute the primary motivation for some
27 business activity or transaction, which activity or transaction changes
28 in a meaningful way, apart from tax effects, the economic position of
29 the taxpayer. The economic position of the taxpayer includes an increase
30 in the market share of the taxpayer, or the entry by the taxpayer into
31 new business markets.
32 (B) Royalty expense add backs. (i) For the purpose of computing New
33 York unrelated business taxable income, a taxpayer must add back royalty
34 payments [to a] directly or indirectly paid, accrued, or incurred in
35 connection with one or more direct or indirect transactions with one or
36 more related [member] members during the taxable year to the extent
37 deductible in calculating federal unrelated business taxable income;
38 (ii) [The add back of royalty payments shall not be required if and to
39 the extent that such payments meet either of the following conditions:
40 (I) the related member during the same taxable year directly or indi-
41 rectly paid or incurred the amount to a person or entity that is not a
42 related member, and such transaction was done for a valid business and
43 the payments are made at arm's length;
44 (II) the royalty payments are paid or incurred to a related member
45 organized under the laws of a country other than the United States, are
46 subject to a comprehensive income tax treaty between such country and
47 the United States, and are taxed in such country at a tax rate at least
48 equal to that imposed by this state.
49 (C) Royalty income exclusions. For the purpose of computing New York
50 unrelated business taxable income, a taxpayer shall be allowed to deduct
51 royalty payments directly or indirectly received from a related member
52 during the taxable year to the extent included in the taxpayer's federal
53 taxable income unless such royalty payments would not be required to be
54 added back under subparagraph (B) of this paragraph or other similar
55 provision in this chapter.] Exceptions. (I) The adjustment required in
56 this paragraph shall not apply to the portion of the royalty payment
S. 2609--D 28 A. 3009--D
1 that the taxpayer establishes, by clear and convincing evidence of the
2 type and in the form specified by the commissioner, meets all of the
3 following requirements: (a) the related member was subject to tax in
4 this state or another state or possession of the United States or a
5 foreign nation or some combination thereof on a tax base that included
6 the royalty payment paid, accrued or incurred by the taxpayer; (b) the
7 related member during the same taxable year directly or indirectly paid,
8 accrued or incurred such portion to a person that is not a related
9 member; and (c) the transaction giving rise to the royalty payment
10 between the taxpayer and the related member was undertaken for a valid
11 business purpose.
12 (II) The adjustment required in this paragraph shall not apply if the
13 taxpayer establishes, by clear and convincing evidence of the type and
14 in the form specified by the commissioner, that: (a) the related member
15 was subject to tax on or measured by its net income in this state or
16 another state or possession of the United States or some combination
17 thereof; (b) the tax base for said tax included the royalty payment
18 paid, accrued or incurred by the taxpayer; and (c) the aggregate effec-
19 tive rate of tax applied to the related member in those jurisdictions is
20 no less than eighty percent of the statutory rate of tax that applied to
21 the taxpayer under section two hundred ninety of this article for the
22 taxable year.
23 (III) The adjustment required in this paragraph shall not apply if the
24 taxpayer establishes, by clear and convincing evidence of the type and
25 in the form specified by the commissioner, that: (a) the royalty payment
26 was paid, accrued or incurred to a related member organized under the
27 laws of a country other than the United States; (b) the related member's
28 income from the transaction was subject to a comprehensive income tax
29 treaty between such country and the United States; (c) the related
30 member was subject to tax in a foreign nation on a tax base that
31 included the royalty payment paid, accrued or incurred by the taxpayer;
32 (d) the related member's income from the transaction was taxed in such
33 country at an effective rate of tax at least equal to that imposed by
34 this state; and (e) the royalty payment was paid, accrued or incurred
35 pursuant to a transaction that was undertaken for a valid business
36 purpose and using terms that reflect an arm's length relationship.
37 (IV) The adjustment required in this paragraph shall not apply if the
38 taxpayer and the commissioner agree in writing to the application or use
39 of alternative adjustments or computations. The commissioner may, in his
40 or her discretion, agree to the application or use of alternative
41 adjustments or computations when he or she concludes that in the absence
42 of such agreement the income of the taxpayer would not be properly
43 reflected.
44 § 4. Paragraph 19 of subsection (c) of section 612 of the tax law is
45 REPEALED.
46 § 5. Subsection (r) of section 612 of the tax law, as amended by
47 section 3 of part M of chapter 686 of the laws of 2003, is amended to
48 read as follows:
49 (r) Related members expense add back [and income exclusion]. (1)
50 Definitions. (A) Related member [or members. For purposes of this
51 subsection, the term related member or members means a person, corpo-
52 ration, or other entity, including an entity that is treated as a part-
53 nership or other pass-through vehicle for purposes of federal taxation,
54 whether such person, corporation or entity is a taxpayer or not, where
55 one such person, corporation, or entity, or set of related persons,
56 corporations or entities, directly or indirectly owns or controls a
S. 2609--D 29 A. 3009--D
1 controlling interest in another entity. Such entity or entities may
2 include all taxpayers under article nine, nine-A, thirteen, twenty-two,
3 thirty-two, thirty-three or thirty-three-A of this chapter]. "Related
4 member" means a related person as defined in subparagraph (c) of para-
5 graph three of subsection (b) of section four hundred sixty-five of the
6 internal revenue code, except that "fifty percent" shall be substituted
7 for "ten percent".
8 (B) [Controlling interest. A controlling interest shall mean (i) in
9 the case of a corporation, either thirty percent or more of the total
10 combined voting power of all classes of stock of such corporation, or
11 thirty percent or more of the capital, profits or beneficial interest in
12 such voting stock of such corporation, and (ii) in the case of a part-
13 nership, association, trust or other entity, thirty percent or more of
14 the capital, profits or beneficial interest in such partnership, associ-
15 ation, trust or other entity.] Effective rate of tax. "Effective rate
16 of tax" means, as to any state or U.S. possession, the maximum statutory
17 rate of tax imposed by the state or possession on or measured by a
18 related member's net income multiplied by the apportionment percentage,
19 if any, applicable to the related member under the laws of said juris-
20 diction. For purposes of this definition, the effective rate of tax as
21 to any state or U.S. possession is zero where the related member's net
22 income tax liability in said jurisdiction is reported on a combined or
23 consolidated return including both the taxpayer and the related member
24 where the reported transactions between the taxpayer and the related
25 member are eliminated or offset. Also, for purposes of this definition,
26 when computing the effective rate of tax for a jurisdiction in which a
27 related member's net income is eliminated or offset by a credit or simi-
28 lar adjustment that is dependent upon the related member either main-
29 taining or managing intangible property or collecting interest income in
30 that jurisdiction, the maximum statutory rate of tax imposed by said
31 jurisdiction shall be decreased to reflect the statutory rate of tax
32 that applies to the related member as effectively reduced by such credit
33 or similar adjustment.
34 (C) Royalty payments. Royalty payments are payments directly connected
35 to the acquisition, use, maintenance or management, ownership, sale,
36 exchange, or any other disposition of licenses, trademarks, copyrights,
37 trade names, trade dress, service marks, mask works, trade secrets,
38 patents and any other similar types of intangible assets as determined
39 by the commissioner, and [includes] include amounts allowable as inter-
40 est deductions under section one hundred sixty-three of the internal
41 revenue code to the extent such amounts are directly or indirectly for,
42 related to or in connection with the acquisition, use, maintenance or
43 management, ownership, sale, exchange or disposition of such intangible
44 assets.
45 (D) Valid business purpose. A valid business purpose is one or more
46 business purposes, other than the avoidance or reduction of taxation,
47 which alone or in combination constitute the primary motivation for some
48 business activity or transaction, which activity or transaction changes
49 in a meaningful way, apart from tax effects, the economic position of
50 the taxpayer. The economic position of the taxpayer includes an increase
51 in the market share of the taxpayer, or the entry by the taxpayer into
52 new business markets.
53 (2) Royalty expense add backs. (A) For the purpose of computing New
54 York adjusted gross income, a taxpayer must add back royalty payments
55 [to a] directly or indirectly paid, accrued, or incurred in connection
56 with one or more direct or indirect transactions with one or more
S. 2609--D 30 A. 3009--D
1 related [member] members during the taxable year to the extent deduct-
2 ible in calculating federal taxable income.
3 (B) [The add back of royalty payments shall not be required if and to
4 the extent that such payments meet either of the following conditions:
5 (i) the related member during the same taxable year directly or indi-
6 rectly paid or incurred the amount to a person or entity that is not a
7 related member, and such transaction was done for a valid business and
8 the payments are made at arm's length;
9 (ii) the royalty payments are paid or incurred to a related member
10 organized under the laws of a country other than the United States, are
11 subject to a comprehensive income tax treaty between such country and
12 the United States, and are taxed in such country at a tax rate at least
13 equal to that imposed by this state.
14 (3) Royalty income exclusions. For the purpose of computing New York
15 adjusted gross income, a taxpayer shall be allowed to deduct royalty
16 payments directly or indirectly received from a related member during
17 the taxable year to the extent included in the taxpayer's federal taxa-
18 ble income unless such royalty payments would not be required to be
19 added back under paragraph two of this subsection or other similar
20 provision in this chapter.] Exceptions. (i) The adjustment required in
21 this subsection shall not apply to the portion of the royalty payment
22 that the taxpayer establishes, by clear and convincing evidence of the
23 type and in the form specified by the commissioner, meets all of the
24 following requirements: (I) the related member was subject to tax in
25 this state or another state or possession of the United States or a
26 foreign nation or some combination thereof on a tax base that included
27 the royalty payment paid, accrued or incurred by the taxpayer; (II) the
28 related member during the same taxable year directly or indirectly paid,
29 accrued or incurred such portion to a person that is not a related
30 member; and (III) the transaction giving rise to the royalty payment
31 between the taxpayer and the related member was undertaken for a valid
32 business purpose.
33 (ii) The adjustment required in this subsection shall not apply if the
34 taxpayer establishes, by clear and convincing evidence of the type and
35 in the form specified by the commissioner, that: (I) the related member
36 was subject to tax on or measured by its net income in this state or
37 another state or possession of the United States or some combination
38 thereof; (II) the tax base for said tax included the royalty payment
39 paid, accrued or incurred by the taxpayer; and (III) the aggregate
40 effective rate of tax applied to the related member in those jurisdic-
41 tions is no less than eighty percent of the statutory rate of tax that
42 applied to the taxpayer under section six hundred one of this article
43 for the taxable year.
44 (iii) The adjustment required in this subsection shall not apply if
45 the taxpayer establishes, by clear and convincing evidence of the type
46 and in the form specified by the commissioner, that: (I) the royalty
47 payment was paid, accrued or incurred to a related member organized
48 under the laws of a country other than the United States; (II) the
49 related member's income from the transaction was subject to a comprehen-
50 sive income tax treaty between such country and the United States; (III)
51 the related member was subject to tax in a foreign nation on a tax base
52 that included the royalty payment paid, accrued or incurred by the
53 taxpayer; (IV) the related member's income from the transaction was
54 taxed in such country at an effective tax rate at least equal to that
55 imposed by this state; and (V) the royalty payment was paid, accrued or
S. 2609--D 31 A. 3009--D
1 incurred pursuant to a transaction that was undertaken for a valid busi-
2 ness purpose and using terms that reflect an arm's length relationship.
3 (iv) The adjustment required in this subsection shall not apply if the
4 taxpayer and the commissioner agree in writing to the application or use
5 of alternative adjustments or computations. The commissioner may, in
6 his or her discretion, agree to the application or use of alternative
7 adjustments or computations when he or she concludes that in the absence
8 of such agreement the income of the taxpayer would not be properly
9 reflected.
10 § 6. Paragraph 17 of subsection (e) of section 1453 of the tax law is
11 REPEALED.
12 § 7. Subsection (r) of section 1453 of the tax law, as amended by
13 section 5 of part M of chapter 686 of the laws of 2003, subparagraph (A)
14 of paragraph 2 as amended by section 5 of part J of chapter 60 of the
15 laws of 2007, is amended to read as follows:
16 (r) Related members expense add back [and income exclusion]. (1)
17 Definitions. (A) Related member [or members. For purposes of this
18 subsection, the term related member or members means a person, corpo-
19 ration, or other entity, including an entity that is treated as a part-
20 nership or other pass-through vehicle for purposes of federal taxation,
21 whether such person, corporation or entity is a taxpayer or not, where
22 one such person, corporation, or entity, or set of related persons,
23 corporations or entities, directly or indirectly owns or controls a
24 controlling interest in another entity. Such entity or entities may
25 include all taxpayers under article nine, nine-A, thirteen, twenty-two,
26 thirty-two, thirty-three or thirty-three-A of this chapter]. "Related
27 member" means a related person as defined in subparagraph (c) of para-
28 graph three of subsection (b) of section four hundred sixty-five of the
29 internal revenue code, except that "fifty percent" shall be substituted
30 for "ten percent".
31 (B) [Controlling interest. A controlling interest shall mean (i) in
32 the case of a corporation, either thirty percent or more of the total
33 combined voting power of all classes of stock of such corporation, or
34 thirty percent or more of the capital, profits or beneficial interest in
35 such voting stock of such corporation, and (ii) in the case of a part-
36 nership, association, trust or other entity, thirty percent or more of
37 the capital, profits or beneficial interest in such partnership, associ-
38 ation, trust or other entity.] Effective rate of tax. "Effective rate of
39 tax" means, as to any state or U.S. possession, the maximum statutory
40 rate of tax imposed by the state or possession on or measured by a
41 related member's net income multiplied by the apportionment percentage,
42 if any, applicable to the related member under the laws of said juris-
43 diction. For purposes of this definition, the effective rate of tax as
44 to any state or U.S. possession is zero where the related member's net
45 income tax liability in said jurisdiction is reported on a combined or
46 consolidated return including both the taxpayer and the related member
47 where the reported transactions between the taxpayer and the related
48 member are eliminated or offset. Also, for purposes of this definition,
49 when computing the effective rate of tax for a jurisdiction in which a
50 related member's net income is eliminated or offset by a credit or simi-
51 lar adjustment that is dependent upon the related member either main-
52 taining or managing intangible property or collecting interest income in
53 that jurisdiction, the maximum statutory rate of tax imposed by said
54 jurisdiction shall be decreased to reflect the statutory rate of tax
55 that applies to the related member as effectively reduced by such credit
56 or similar adjustment.
S. 2609--D 32 A. 3009--D
1 (C) Royalty payments. Royalty payments are payments directly connected
2 to the acquisition, use, maintenance or management, ownership, sale,
3 exchange, or any other disposition of licenses, trademarks, copyrights,
4 trade names, trade dress, service marks, mask works, trade secrets,
5 patents and any other similar types of intangible assets as determined
6 by the commissioner, and [includes] include amounts allowable as inter-
7 est deductions under section one hundred sixty-three of the internal
8 revenue code to the extent such amounts are directly or indirectly for,
9 related to or in connection with the acquisition, use, maintenance or
10 management, ownership, sale, exchange or disposition of such intangible
11 assets.
12 (D) Valid business purpose. A valid business purpose is one or more
13 business purposes, other than the avoidance or reduction of taxation,
14 which alone or in combination constitute the primary motivation for some
15 business activity or transaction, which activity or transaction changes
16 in a meaningful way, apart from tax effects, the economic position of
17 the taxpayer. The economic position of the taxpayer includes an increase
18 in the market share of the taxpayer, or the entry by the taxpayer into
19 new business markets.
20 (2) Royalty expense add backs. (A) Except where a taxpayer is included
21 in a combined return with a related member pursuant to subsection (f) of
22 section fourteen hundred sixty-two of this article, for the purpose of
23 computing entire net income, a taxpayer must add back royalty payments
24 [to a] directly or indirectly paid, accrued, or incurred in connection
25 with one or more direct or indirect transactions with one or more
26 related [member] members during the taxable year to the extent deduct-
27 ible in calculating federal taxable income.
28 (B) [The add back of royalty payments shall not be required if and to
29 the extent that such payments meet either of the following conditions:
30 (i) the related member during the same taxable year directly or indi-
31 rectly paid or incurred the amount to a person or entity that is not a
32 related member, and such transaction was done for a valid business and
33 the payments are made at arm's length;
34 (ii) the royalty payments are paid or incurred to a related member
35 organized under the laws of a country other than the United States, are
36 subject to a comprehensive income tax treaty between such country and
37 the United States, and are taxed in such country at a tax rate at least
38 equal to that imposed by this state.
39 (3) Royalty income exclusions. For the purpose of computing entire net
40 income, a taxpayer shall be allowed to deduct royalty payments directly
41 or indirectly received from a related member during the taxable year to
42 the extent included in the taxpayer's federal taxable income unless such
43 royalty payments would not be required to be added back under paragraph
44 two of this subsection or other similar provision in this chapter.]
45 Exceptions. (i) The adjustment required in this subsection shall not
46 apply to the portion of the royalty payment that the taxpayer estab-
47 lishes, by clear and convincing evidence of the type and in the form
48 specified by the commissioner, meets all of the following requirements:
49 (I) the related member was subject to tax in this state or another state
50 or possession of the United States or a foreign nation or some combina-
51 tion thereof on a tax base that included the royalty payment paid,
52 accrued or incurred by the taxpayer; (II) the related member during the
53 same taxable year directly or indirectly paid, accrued or incurred such
54 portion to a person that is not a related member; and (III) the trans-
55 action giving rise to the royalty payment between the taxpayer and the
56 related member was undertaken for a valid business purpose.
S. 2609--D 33 A. 3009--D
1 (ii) The adjustment required in this subsection shall not apply if the
2 taxpayer establishes, by clear and convincing evidence of the type and
3 in the form specified by the commissioner, that: (I) the related member
4 was subject to tax on or measured by its net income in this state or
5 another state or possession of the United States or some combination
6 thereof; (II) the tax base for said tax included the royalty payment
7 paid, accrued or incurred by the taxpayer; and (III) the aggregate
8 effective rate of tax applied to the related member in those jurisdic-
9 tions is no less than eighty percent of the statutory rate of tax that
10 applied to the taxpayer under section fourteen hundred fifty-five of
11 this article for the taxable year.
12 (iii) The adjustment required in this subsection shall not apply if
13 the taxpayer establishes, by clear and convincing evidence of the type
14 and in the form specified by the commissioner, that: (I) the royalty
15 payment was paid, accrued or incurred to a related member organized
16 under the laws of a country other than the United States; (II) the
17 related member's income from the transaction was subject to a comprehen-
18 sive income tax treaty between such country and the United States; (III)
19 the related member was subject to tax in a foreign nation on a tax base
20 that included the royalty payment paid, accrued or incurred by the
21 taxpayer; (IV) the related member's income from the transaction was
22 taxed in such country at an effective rate of tax at least equal to that
23 imposed by this state; and (V) the royalty payment was paid, accrued or
24 incurred pursuant to a transaction that was undertaken for a valid busi-
25 ness purpose and using terms that reflect an arm's length relationship.
26 (iv) The adjustment required in this subsection shall not apply if the
27 taxpayer and the commissioner agree in writing to the application or use
28 of alternative adjustments or computations. The commissioner may, in his
29 or her discretion, agree to the application or use of alternative
30 adjustments or computations when he or she concludes that in the absence
31 of such agreement the income of the taxpayer would not be properly
32 reflected.
33 § 8. Paragraph 14 of subdivision (b) of section 1503 of the tax law,
34 as amended by section 7 of part M of chapter 686 of the laws of 2003,
35 clause (i) of subparagraph (B) as amended by section 6 of part J of
36 chapter 60 of the laws of 2007, is amended to read as follows:
37 (14) Related members expense add back [and income exclusion]. (A)
38 Definitions. (i) Related member [or members. For purposes of this para-
39 graph, the term related member or members means a person, corporation,
40 or other entity, including an entity that is treated as a partnership or
41 other pass-through vehicle for purposes of federal taxation, whether
42 such person, corporation or entity is a taxpayer or not, where one such
43 person, corporation, or entity, or set of related persons, corporations
44 or entities, directly or indirectly owns or controls a controlling
45 interest in another entity. Such entity or entities may include all
46 taxpayers under article nine, nine-A, thirteen, twenty-two, thirty-two,
47 thirty-three or thirty-three-A of this chapter]. "Related member" means
48 a related person as defined in subparagraph (c) of paragraph three of
49 subsection (b) of section four hundred sixty-five of the internal reven-
50 ue code, except that "fifty percent" shall be substituted for "ten
51 percent".
52 (ii) [Controlling interest. A controlling interest shall mean (I) in
53 the case of a corporation, either thirty percent or more of the total
54 combined voting power of all classes of stock of such corporation, or
55 thirty percent or more of the capital, profits or beneficial interest in
56 such voting stock of such corporation, and (II) in the case of a part-
S. 2609--D 34 A. 3009--D
1 nership, association, trust or other entity, thirty percent or more of
2 the capital, profits or beneficial interest in such partnership, associ-
3 ation, trust or other entity.] Effective rate of tax. "Effective rate of
4 tax" means, as to any state or U.S. possession, the maximum statutory
5 rate of tax imposed by the state or possession on or measured by a
6 related member's net income multiplied by the apportionment percentage,
7 if any, applicable to the related member under the laws of said juris-
8 diction. For purposes of this definition, the effective rate of tax as
9 to any state or U.S. possession is zero where the related member's net
10 income tax liability in said jurisdiction is reported on a combined or
11 consolidated return including both the taxpayer and the related member
12 where the reported transactions between the taxpayer and the related
13 member are eliminated or offset. Also, for purposes of this definition,
14 when computing the effective rate of tax for a jurisdiction in which a
15 related member's net income is eliminated or offset by a credit or simi-
16 lar adjustment that is dependent upon the related member either main-
17 taining or managing intangible property or collecting interest income
18 in that jurisdiction, the maximum statutory rate of tax imposed by said
19 jurisdiction shall be decreased to reflect the statutory rate of tax
20 that applies to the related member as effectively reduced by such credit
21 or similar adjustment.
22 (iii) Royalty payments. Royalty payments are payments directly
23 connected to the acquisition, use, maintenance or management, ownership,
24 sale, exchange, or any other disposition of licenses, trademarks, copy-
25 rights, trade names, trade dress, service marks, mask works, trade
26 secrets, patents and any other similar types of intangible assets as
27 determined by the commissioner, and [includes] include amounts allowable
28 as interest deductions under section one hundred sixty-three of the
29 internal revenue code to the extent such amounts are directly or indi-
30 rectly for, related to or in connection with the acquisition, use, main-
31 tenance or management, ownership, sale, exchange or disposition of such
32 intangible assets.
33 (iv) Valid business purpose. A valid business purpose is one or more
34 business purposes, other than the avoidance or reduction of taxation,
35 which alone or in combination constitute the primary motivation for some
36 business activity or transaction, which activity or transaction changes
37 in a meaningful way, apart from tax effects, the economic position of
38 the taxpayer. The economic position of the taxpayer includes an increase
39 in the market share of the taxpayer, or the entry by the taxpayer into
40 new business markets.
41 (B) Royalty expense add backs. (i) Except where a taxpayer is included
42 in a combined return with a related member pursuant to subdivision (f)
43 of section fifteen hundred fifteen of this article, for the purpose of
44 computing entire net income, a taxpayer must add back royalty payments
45 [to a] directly or indirectly paid, accrued, or incurred in connection
46 with one or more direct or indirect transactions with one or more
47 related [member] members during the taxable year to the extent deduct-
48 ible in calculating federal taxable income.
49 (ii) [The add back of royalty payments shall not be required if and to
50 the extent that such payments meet either of the following conditions:
51 (I) the related member during the same taxable year directly or indi-
52 rectly paid or incurred the amount to a person or entity that is not a
53 related member, and such transaction was done for a valid business and
54 the payments are made at arm's length;
55 (II) the royalty payments are paid or incurred to a related member
56 organized under the laws of a country other than the United States, are
S. 2609--D 35 A. 3009--D
1 subject to a comprehensive income tax treaty between such country and
2 the United States, and are taxed in such country at a tax rate at least
3 equal to that imposed by this state.
4 (C) Royalty income exclusions. For the purpose of computing entire net
5 income, a taxpayer shall be allowed to deduct royalty payments directly
6 or indirectly received from a related member during the taxable year to
7 the extent included in the taxpayer's federal taxable income unless such
8 royalty payments would not be required to be added back under subpara-
9 graph (B) of this paragraph or other similar provision in this chapter.]
10 Exceptions. (I) The adjustment required in this paragraph shall not
11 apply to the portion of the royalty payment that the taxpayer estab-
12 lishes, by clear and convincing evidence of the type and in the form
13 specified by the commissioner, meets all of the following requirements:
14 (a) the related member was subject to tax in this state or another state
15 or possession of the United States or a foreign nation or some combina-
16 tion thereof on a tax base that included the royalty payment paid,
17 accrued or incurred by the taxpayer; (b) the related member during the
18 same taxable year directly or indirectly paid, accrued or incurred such
19 portion to a person that is not a related member; and (c) the trans-
20 action giving rise to the royalty payment between the taxpayer and the
21 related member was undertaken for a valid business purpose.
22 (II) The adjustment required in this paragraph shall not apply if the
23 taxpayer establishes, by clear and convincing evidence of the type and
24 in the form specified by the commissioner, that: (a) the related member
25 was subject to tax on or measured by its net income in this state or
26 another state or possession of the United States or some combination
27 thereof; (b) the tax base for said tax included the royalty payment
28 paid, accrued or incurred by the taxpayer; and (c) the aggregate effec-
29 tive rate of tax applied to the related member in those jurisdictions is
30 no less than eighty percent of the statutory rate of tax that applied to
31 the taxpayer under section fifteen hundred two, fifteen hundred two-a,
32 or fifteen hundred two-b of this article for the taxable year.
33 (III) The adjustment required in this paragraph shall not apply if the
34 taxpayer establishes, by clear and convincing evidence of the type and
35 in the form specified by the commissioner, that: (a) the royalty payment
36 was paid, accrued or incurred to a related member organized under the
37 laws of a country other than the United States; (b) the related member's
38 income from the transaction was subject to a comprehensive income tax
39 treaty between such country and the United States; (c) the related
40 member was subject to tax in a foreign nation on a tax base that
41 included the royalty payment paid, accrued or incurred by the taxpayer;
42 (d) the related member's income from the transaction was taxed in such
43 country at an effective rate of tax at least equal to that imposed by
44 this state; and (e) the royalty payment was paid, accrued or incurred
45 pursuant to a transaction that was undertaken for a valid business
46 purpose and using terms that reflect an arm's length relationship.
47 (IV) The adjustment required in this paragraph shall not apply if the
48 taxpayer and the commissioner agree in writing to the application or use
49 of alternative adjustments or computations. The commissioner may, in his
50 or her discretion, agree to the application or use of alternative
51 adjustments or computations when he or she concludes that in the absence
52 of such agreement the income of the taxpayer would not be properly
53 reflected.
54 § 9. Subdivision (e) of section 11-506 of the administrative code of
55 the city of New York, as added by section 17 of part M of chapter 686 of
S. 2609--D 36 A. 3009--D
1 the laws of 2003 and as relettered by chapter 633 of the laws of 2005,
2 is amended to read as follows:
3 (e) Related members expense add back [and income exclusion]. (1)
4 Definitions. (A) Related member [or members. For purposes of this subdi-
5 vision, the term related member or members means a person, corporation,
6 or other entity, including an entity that is treated as a partnership or
7 other pass-through vehicle for purposes of federal taxation, whether
8 such person, corporation or entity is a taxpayer or not, where one such
9 person, corporation, or entity, or set of related persons, corporations
10 or entities, directly or indirectly owns or controls a controlling
11 interest in another entity. Such entity or entities may include all
12 taxpayers under this title]. "Related member" means a related person as
13 defined in subparagraph (c) of paragraph three of subsection (b) of
14 section four hundred sixty-five of the internal revenue code, except
15 that "fifty percent" shall be substituted for "ten percent".
16 (B) [Controlling interest. A controlling interest shall mean (i) in
17 the case of a corporation, either thirty percent or more of the total
18 combined voting power of all classes of stock of such corporation, or
19 thirty percent or more of the capital, profits or beneficial interest in
20 such voting stock of such corporation, and (ii) in the case of a part-
21 nership, association, trust or other entity, thirty percent or more of
22 the capital, profits or beneficial interest in such partnership, associ-
23 ation, trust or other entity.] Effective rate of tax. "Effective rate of
24 tax" means, as to any city, the maximum statutory rate of tax imposed by
25 the city on or measured by a related member's net income multiplied by
26 the apportionment percentage, if any, applicable to the related member
27 under the laws of said jurisdiction. For purposes of this definition,
28 the effective rate of tax as to any city is zero where the related
29 member's net income tax liability in said city is reported on a combined
30 or consolidated return including both the taxpayer and the related
31 member where the reported transactions between the taxpayer and the
32 related member are eliminated or offset. Also, for purposes of this
33 definition, when computing the effective rate of tax for a city in which
34 a related member's net income is eliminated or offset by a credit or
35 similar adjustment that is dependent upon the related member either
36 maintaining or managing intangible property or collecting interest
37 income in that city, the maximum statutory rate of tax imposed by said
38 city shall be decreased to reflect the statutory rate of tax that
39 applies to the related member as effectively reduced by such credit or
40 similar adjustment.
41 (C) Royalty payments. Royalty payments are payments directly connected
42 to the acquisition, use, maintenance or management, ownership, sale,
43 exchange, or any other disposition of licenses, trademarks, copyrights,
44 trade names, trade dress, service marks, mask works, trade secrets,
45 patents and any other similar types of intangible assets as determined
46 by the commissioner of finance, and [includes] include amounts allowable
47 as interest deductions under section one hundred sixty-three of the
48 internal revenue code to the extent such amounts are directly or indi-
49 rectly for, related to or in connection with the acquisition, use, main-
50 tenance or management, ownership, sale, exchange or disposition of such
51 intangible assets.
52 (D) Valid business purpose. A valid business purpose is one or more
53 business purposes, other than the avoidance or reduction of taxation,
54 which alone or in combination constitute the primary motivation for some
55 business activity or transaction, which activity or transaction changes
56 in a meaningful way, apart from tax effects, the economic position of
S. 2609--D 37 A. 3009--D
1 the taxpayer. The economic position of the taxpayer includes an increase
2 in the market share of the taxpayer, or the entry by the taxpayer into
3 new business markets.
4 (2) Royalty expense add backs. (A) For the purpose of computing unin-
5 corporated business entire net income, a taxpayer must add back royalty
6 payments [to a] directly or indirectly paid, accrued, or incurred in
7 connection with one or more direct or indirect transactions with one or
8 more related [member] members during the taxable year to the extent
9 deductible in calculating federal taxable income.
10 (B) [The add back of royalty payments shall not be required if and to
11 the extent that such payments meet either of the following conditions:
12 (i) the related member during the same taxable year directly or indi-
13 rectly paid or incurred the amount to a person or entity that is not a
14 related member, and such transaction was done for a valid business and
15 the payments are made at arm's length;
16 (ii) the royalty payments are paid or incurred to a related member
17 organized under the laws of a country other than the United States, are
18 subject to a comprehensive income tax treaty between such country and
19 the United States, and are taxed in such country at a tax rate at least
20 equal to that imposed by this state.
21 (3) Royalty income exclusions. For the purpose of computing unincorpo-
22 rated business entire net income, a taxpayer shall be allowed to deduct
23 royalty payments directly or indirectly received from a related member
24 during the taxable year to the extent included in the taxpayer's federal
25 taxable income unless such royalty payments would not be required to be
26 added back under paragraph two of this subdivision or other similar
27 provision in this chapter.] Exceptions. (i) The adjustment required in
28 this subdivision shall not apply to the portion of the royalty payment
29 that the taxpayer establishes, by clear and convincing evidence of the
30 type and in the form specified by the commissioner of finance, meets all
31 of the following requirements: (I) the related member was subject to tax
32 in this city or another city within the United States or a foreign
33 nation or some combination thereof on a tax base that included the
34 royalty payment paid, accrued or incurred by the taxpayer; (II) the
35 related member during the same taxable year directly or indirectly paid,
36 accrued or incurred such portion to a person that is not a related
37 member; and (III) the transaction giving rise to the royalty payment
38 between the taxpayer and the related member was undertaken for a valid
39 business purpose.
40 (ii) The adjustment required in this subdivision shall not apply if
41 the taxpayer establishes, by clear and convincing evidence of the type
42 and in the form specified by the commissioner of finance, that: (I) the
43 related member was subject to tax on or measured by its net income in
44 this city or another city within the United States, or some combination
45 thereof; (II) the tax base for said tax included the royalty payment
46 paid, accrued or incurred by the taxpayer; and (III) the aggregate
47 effective rate of tax applied to the related member in those jurisdic-
48 tions is no less than eighty percent of the statutory rate of tax that
49 applied to the taxpayer under section 11-503 of this chapter for the
50 taxable year.
51 (iii) The adjustment required in this subdivision shall not apply if
52 the taxpayer establishes, by clear and convincing evidence of the type
53 and in the form specified by the commissioner of finance, that: (I) the
54 royalty payment was paid, accrued or incurred to a related member organ-
55 ized under the laws of a country other than the United States; (II) the
56 related member's income from the transaction was subject to a comprehen-
S. 2609--D 38 A. 3009--D
1 sive income tax treaty between such country and the United States; (III)
2 the related member was subject to tax in a foreign nation on a tax base
3 that included the royalty payment paid, accrued or incurred by the
4 taxpayer; (IV) the related member's income from the transaction was
5 taxed in such country at an effective rate of tax at least equal to that
6 imposed by this city; and (V) the royalty payment was paid, accrued or
7 incurred pursuant to a transaction that was undertaken for a valid busi-
8 ness purpose and using terms that reflect an arm's length relationship.
9 (iv) The adjustment required in this subdivision shall not apply if
10 the taxpayer and the commissioner of finance agree in writing to the
11 application or use of alternative adjustments or computations. The
12 commissioner of finance may, in his or her discretion, agree to the
13 application or use of alternative adjustments or computations when he or
14 she concludes that in the absence of such agreement the income of the
15 taxpayer would not be properly reflected.
16 § 10. Paragraph (n) of subdivision 8 of section 11-602 of the adminis-
17 trative code of the city of New York, as amended by section 19 of part M
18 of chapter 686 of the laws of 2003, is amended to read as follows:
19 (n) Related members expense add back [and income exclusion]. (1)
20 Definitions. (A) Related member [or members. For purposes of this para-
21 graph, the term related member or members means a person, corporation,
22 or other entity, including an entity that is treated as a partnership or
23 other pass-through vehicle for purposes of federal taxation, whether
24 such person, corporation or entity is a taxpayer or not, where one such
25 person, corporation, or entity, or set of related persons, corporations
26 or entities, directly or indirectly owns or controls a controlling
27 interest in another entity. Such entity or entities may include all
28 taxpayers under this title]. "Related member" means a related person as
29 defined in subparagraph (c) of paragraph three of subsection (b) of
30 section four hundred sixty-five of the internal revenue code, except
31 that "fifty percent" shall be substituted for "ten percent".
32 (B) [Controlling interest. A controlling interest shall mean (i) in
33 the case of a corporation, either thirty percent or more of the total
34 combined voting power of all classes of stock of such corporation, or
35 thirty percent or more of the capital, profits or beneficial interest in
36 such voting stock of such corporation, and (ii) in the case of a part-
37 nership, association, trust or other entity, thirty percent or more of
38 the capital, profits or beneficial interest in such partnership, associ-
39 ation, trust or other entity.] Effective rate of tax. "Effective rate of
40 tax" means, as to any city, the maximum statutory rate of tax imposed by
41 the city on or measured by a related member's net income multiplied by
42 the apportionment percentage, if any, applicable to the related member
43 under the laws of said jurisdiction. For purposes of this definition,
44 the effective rate of tax as to any city is zero where the related
45 member's net income tax liability in said city is reported on a combined
46 or consolidated return including both the taxpayer and the related
47 member where the reported transactions between the taxpayer and the
48 related member are eliminated or offset. Also, for purposes of this
49 definition, when computing the effective rate of tax for a city in which
50 a related member's net income is eliminated or offset by a credit or
51 similar adjustment that is dependent upon the related member either
52 maintaining or managing intangible property or collecting interest
53 income in that city, the maximum statutory rate of tax imposed by said
54 city shall be decreased to reflect the statutory rate of tax that
55 applies to the related member as effectively reduced by such credit or
56 similar adjustment.
S. 2609--D 39 A. 3009--D
1 (C) Royalty payments. Royalty payments are payments directly connected
2 to the acquisition, use, maintenance or management, ownership, sale,
3 exchange, or any other disposition of licenses, trademarks, copyrights,
4 trade names, trade dress, service marks, mask works, trade secrets,
5 patents and any other similar types of intangible assets as determined
6 by the commissioner of finance, and [includes] include amounts allowable
7 as interest deductions under section one hundred sixty-three of the
8 internal revenue code to the extent such amounts are directly or indi-
9 rectly for, related to or in connection with the acquisition, use, main-
10 tenance or management, ownership, sale, exchange or disposition of such
11 intangible assets.
12 (D) Valid business purpose. A valid business purpose is one or more
13 business purposes, other than the avoidance or reduction of taxation,
14 which alone or in combination constitute the primary motivation for some
15 business activity or transaction, which activity or transaction changes
16 in a meaningful way, apart from tax effects, the economic position of
17 the taxpayer. The economic position of the taxpayer includes an increase
18 in the market share of the taxpayer, or the entry by the taxpayer into
19 new business markets.
20 (2) Royalty expense add backs. (A) For the purpose of computing entire
21 net income or other applicable taxable basis, a taxpayer must add back
22 royalty payments [to a] directly or indirectly paid, accrued, or
23 incurred in connection with one or more direct or indirect transactions
24 with one or more related [member] members during the taxable year to the
25 extent deductible in calculating federal taxable income.
26 (B) [The add back of royalty payments shall not be required if and to
27 the extent that such payments meet either of the following conditions:
28 (i) the related member during the same taxable year directly or indi-
29 rectly paid or incurred the amount to a person or entity that is not a
30 related member, and such transaction was done for a valid business
31 purpose and the payments are made at arm's length;
32 (ii) the royalty payments are paid or incurred to a related member
33 organized under the laws of a country other than the United States, are
34 subject to a comprehensive income tax treaty between such country and
35 the United States, and are taxed in such country at a tax rate at least
36 equal to that imposed by this state.
37 (3) Royalty income exclusions. For the purpose of computing entire net
38 income or other taxable basis, a taxpayer shall be allowed to deduct
39 royalty payments directly or indirectly received from a related member
40 during the taxable year to the extent included in the taxpayer's federal
41 taxable income unless such royalty payments would not be required to be
42 added back under subparagraph two of this paragraph or other similar
43 provision in this chapter.] Exceptions. (i) The adjustment required in
44 this paragraph shall not apply to the portion of the royalty payment
45 that the taxpayer establishes, by clear and convincing evidence of the
46 type and in the form specified by the commissioner of finance, meets all
47 of the following requirements: (I) the related member was subject to tax
48 in this city or another city within the United States or a foreign
49 nation or some combination thereof on a tax base that included the
50 royalty payment paid, accrued or incurred by the taxpayer; (II) the
51 related member during the same taxable year directly or indirectly paid,
52 accrued or incurred such portion to a person that is not a related
53 member; and (III) the transaction giving rise to the royalty payment
54 between the taxpayer and the related member was undertaken for a valid
55 business purpose.
S. 2609--D 40 A. 3009--D
1 (ii) The adjustment required in this paragraph shall not apply if the
2 taxpayer establishes, by clear and convincing evidence of the type and
3 in the form specified by the commissioner of finance, that: (I) the
4 related member was subject to tax on or measured by its net income in
5 this city or another city within the United States, or some combination
6 thereof; (II) the tax base for said tax included the royalty payment
7 paid, accrued or incurred by the taxpayer; and (III) the aggregate
8 effective rate of tax applied to the related member in those jurisdic-
9 tions is no less than eighty percent of the statutory rate of tax that
10 applied to the taxpayer under section 11-604 of this subchapter for the
11 taxable year.
12 (iii) The adjustment required in this paragraph shall not apply if the
13 taxpayer establishes, by clear and convincing evidence of the type and
14 in the form specified by the commissioner of finance, that: (I) the
15 royalty payment was paid, accrued or incurred to a related member organ-
16 ized under the laws of a country other than the United States; (II) the
17 related member's income from the transaction was subject to a comprehen-
18 sive income tax treaty between such country and the United States; (III)
19 the related member was subject to tax in a foreign nation on a tax base
20 that included the royalty payment paid, accrued or incurred by the
21 taxpayer; (IV) the related member's income from the transaction was
22 taxed in such country at an effective rate of tax at least equal to that
23 imposed by this city; and (V) the royalty payment was paid, accrued or
24 incurred pursuant to a transaction that was undertaken for a valid busi-
25 ness purpose and using terms that reflect an arm's length relationship.
26 (iv) The adjustment required in this paragraph shall not apply if the
27 taxpayer and the commissioner of finance agree in writing to the appli-
28 cation or use of alternative adjustments or computations. The commis-
29 sioner of finance may, in his or her discretion, agree to the applica-
30 tion or use of alternative adjustments or computations when he or she
31 concludes that in the absence of such agreement the income of the
32 taxpayer would not be properly reflected.
33 § 11. Subdivision (q) of section 11-641 of the administrative code of
34 the city of New York, as added by section 21 of part M of chapter 686 of
35 the laws of 2003, is amended to read as follows:
36 (q) Related members expense add back [and income exclusion]. (1)
37 Definitions. (A) Related member [or members. For purposes of this subdi-
38 vision, the term related member or members means a person, corporation,
39 or other entity, including an entity that is treated as a partnership or
40 other pass-through vehicle for purposes of federal taxation, whether
41 such person, corporation or entity is a taxpayer or not, where one such
42 person, corporation, or entity, or set of related persons, corporations
43 or entities, directly or indirectly owns or controls a controlling
44 interest in another entity. Such entity or entities may include all
45 taxpayers under this title]. "Related member" means a related person as
46 defined in subparagraph (c) of paragraph three of subsection (b) of
47 section four hundred sixty-five of the internal revenue code, except
48 that "fifty percent" shall be substituted for "ten percent".
49 (B) [Controlling interest. A controlling interest shall mean (i) in
50 the case of a corporation, either thirty percent or more of the total
51 combined voting power of all classes of stock of such corporation, or
52 thirty percent or more of the capital, profits or beneficial interest in
53 such voting stock of such corporation, and (ii) in the case of a part-
54 nership, association, trust or other entity, thirty percent or more of
55 the capital, profits or beneficial interest in such partnership, associ-
56 ation, trust or other entity.] Effective rate of tax. "Effective rate
S. 2609--D 41 A. 3009--D
1 of tax" means, as to any city, the maximum statutory rate of tax imposed
2 by the city on or measured by a related member's net income multiplied
3 by the apportionment percentage, if any, applicable to the related
4 member under the laws of said jurisdiction. For purposes of this defi-
5 nition, the effective rate of tax as to any city is zero where the
6 related member's net income tax liability in said city is reported on a
7 combined or consolidated return including both the taxpayer and the
8 related member where the reported transactions between the taxpayer and
9 the related member are eliminated or offset. Also, for purposes of this
10 definition, when computing the effective rate of tax for a city in which
11 a related member's net income is eliminated or offset by a credit or
12 similar adjustment that is dependent upon the related member either
13 maintaining or managing intangible property or collecting interest
14 income in that city, the maximum statutory rate of tax imposed by said
15 city shall be decreased to reflect the statutory rate of tax that
16 applies to the related member as effectively reduced by such credit or
17 similar adjustment.
18 (C) Royalty payments. Royalty payments are payments directly connected
19 to the acquisition, use, maintenance or management, ownership, sale,
20 exchange, or any other disposition of licenses, trademarks, copyrights,
21 trade names, trade dress, service marks, mask works, trade secrets,
22 patents and any other similar types of intangible assets as determined
23 by the commissioner of finance, and [includes] include amounts allowable
24 as interest deductions under section one hundred sixty-three of the
25 internal revenue code to the extent such amounts are directly or indi-
26 rectly for, related to or in connection with the acquisition, use, main-
27 tenance or management, ownership, sale, exchange or disposition of such
28 intangible assets.
29 (D) Valid business purpose. A valid business purpose is one or more
30 business purposes, other than the avoidance or reduction of taxation,
31 which alone or in combination constitute the primary motivation for some
32 business activity or transaction, which activity or transaction changes
33 in a meaningful way, apart from tax effects, the economic position of
34 the taxpayer. The economic position of the taxpayer includes an increase
35 in the market share of the taxpayer, or the entry by the taxpayer into
36 new business markets.
37 (2) Royalty expense add backs. (A) For the purpose of computing entire
38 net income, a taxpayer must add back royalty payments [to a] directly or
39 indirectly paid, accrued, or incurred in connection with one or more
40 direct or indirect transactions with one or more related [member]
41 members during the taxable year to the extent deductible in calculating
42 federal taxable income.
43 (B) [The add back of royalty payments shall not be required if and to
44 the extent that such payments meet either of the following conditions:
45 (i) the related member during the same taxable year directly or indi-
46 rectly paid or incurred the amount to a person or entity that is not a
47 related member, and such transaction was done for a valid business and
48 the payments are made at arm's length;
49 (ii) the royalty payments are paid or incurred to a related member
50 organized under the laws of a country other than the United States, are
51 subject to a comprehensive income tax treaty between such country and
52 the United States, and are taxed in such country at a tax rate at least
53 equal to that imposed by this state.
54 (3) Royalty income exclusions. For the purpose of computing entire net
55 income, a taxpayer shall be allowed to deduct royalty payments directly
56 or indirectly received from a related member during the taxable year to
S. 2609--D 42 A. 3009--D
1 the extent included in the taxpayer's federal taxable income unless such
2 royalty payments would not be required to be added back under paragraph
3 two of this subdivision or other similar provision in this chapter.]
4 Exceptions. (i) The adjustment required in this subdivision shall not
5 apply to the portion of the royalty payment that the taxpayer estab-
6 lishes, by clear and convincing evidence of the type and in the form
7 specified by the commissioner of finance, meets all of the following
8 requirements: (I) the related member was subject to tax in this city or
9 another city within the United States or a foreign nation or some combi-
10 nation thereof on a tax base that included the royalty payment paid,
11 accrued or incurred by the taxpayer; (II) the related member during the
12 same taxable year directly or indirectly paid, accrued or incurred such
13 portion to a person that is not a related member; and (III) the trans-
14 action giving rise to the royalty payment between the taxpayer and the
15 related member was undertaken for a valid business purpose.
16 (ii) The adjustment required in this subdivision shall not apply if
17 the taxpayer establishes, by clear and convincing evidence of the type
18 and in the form specified by the commissioner of finance, that: (I) the
19 related member was subject to tax on or measured by its net income in
20 this city or another city within the United States, or some combination
21 thereof; (II) the tax base for said tax included the royalty payment
22 paid, accrued or incurred by the taxpayer; and (III) the aggregate
23 effective rate of tax applied to the related member in those jurisdic-
24 tions is no less than eighty percent of the statutory rate of tax that
25 applied to the taxpayer under section 11-643.5 of this part for the
26 taxable year.
27 (iii) The adjustment required in this subdivision shall not apply if
28 the taxpayer establishes, by clear and convincing evidence of the type
29 and in the form specified by the commissioner of finance, that: (I) the
30 royalty payment was paid, accrued or incurred to a related member organ-
31 ized under the laws of a country other than the United States; (II) the
32 related member's income from the transaction was subject to a comprehen-
33 sive income tax treaty between such country and the United States; (III)
34 the related member was subject to tax in a foreign nation on a tax base
35 that included the royalty payment paid, accrued or incurred by the
36 taxpayer; (IV) the related member's income from the transaction was
37 taxed in such country at an effective rate of tax at least equal to that
38 imposed by this city; and (V) the royalty payment was paid, accrued or
39 incurred pursuant to a transaction that was undertaken for a valid busi-
40 ness purpose and using terms that reflect an arm's length relationship.
41 (iv) The adjustment required in this subdivision shall not apply if
42 the taxpayer and the commissioner of finance agree in writing to the
43 application or use of alternative adjustments or computations. The
44 commissioner of finance may, in his or her discretion, agree to the
45 application or use of alternative adjustments or computations when he or
46 she concludes that in the absence of such agreement the income of the
47 taxpayer would not be properly reflected.
48 § 12. Subdivision (t) of section 11-1712 of the administrative code of
49 the city of New York, as added by section 26 of part M of chapter 686 of
50 the laws of 2003, is amended to read as follows:
51 (t) Related members expense add back [and income exclusion]. (1)
52 Definitions. (A) Related member [or members. For purposes of this subdi-
53 vision, the term related member or members means a person, corporation,
54 or other entity, including an entity that is treated as a partnership or
55 other pass-through vehicle for purposes of federal taxation, whether
56 such person, corporation or entity is a taxpayer or not, where one such
S. 2609--D 43 A. 3009--D
1 person, corporation or entity, or set of related persons, corporations
2 or entities, directly or indirectly owns or controls a controlling
3 interest in another entity. Such entity or entities may include all
4 taxpayers under this title]. "Related member" means a related person as
5 defined in subparagraph (c) of paragraph three of subsection (b) of
6 section four hundred sixty-five of the internal revenue code, except
7 that "fifty percent" shall be substituted for "ten percent".
8 (B) [Controlling interest. A controlling interest shall mean (i) in
9 the case of a corporation, either thirty percent or more of the total
10 combined voting power of all classes of stock of such corporation, or
11 thirty percent or more of the capital, profits or beneficial interest in
12 such voting stock of such corporation, and (ii) in the case of a part-
13 nership, association, trust or other entity, thirty percent or more of
14 the capital, profits or beneficial interest in such partnership, associ-
15 ation, trust or other entity.] Effective rate of tax. "Effective rate of
16 tax" means, as to any city, the maximum statutory rate of tax imposed by
17 the city on or measured by a related member's net income multiplied by
18 the apportionment percentage, if any, applicable to the related member
19 under the laws of said jurisdiction. For purposes of this definition,
20 the effective rate of tax as to any city is zero where the related
21 member's net income tax liability in said city is reported on a combined
22 or consolidated return including both the taxpayer and the related
23 member where the reported transactions between the taxpayer and the
24 related member are eliminated or offset. Also, for purposes of this
25 definition, when computing the effective rate of tax for a city in which
26 a related member's net income is eliminated or offset by a credit or
27 similar adjustment that is dependent upon the related member either
28 maintaining or managing intangible property or collecting interest
29 income in that city, the maximum statutory rate of tax imposed by said
30 city shall be decreased to reflect the statutory rate of tax that
31 applies to the related member as effectively reduced by such credit or
32 similar adjustment.
33 (C) Royalty payments. Royalty payments are payments directly connected
34 to the acquisition, use, maintenance or management, ownership, sale,
35 exchange, or any other disposition of licenses, trademarks, copyrights,
36 trade names, trade dress, service marks, mask works, trade secrets,
37 patents and any other similar types of intangible assets as determined
38 by the state commissioner of taxation and finance, and [includes]
39 include amounts allowable as interest deductions under section one
40 hundred sixty-three of the internal revenue code to the extent such
41 amounts are directly or indirectly for, related to or in connection with
42 the acquisition, use, maintenance or management, ownership, sale,
43 exchange or disposition of such intangible assets.
44 (D) Valid business purpose. A valid business purpose is one or more
45 business purposes, other than the avoidance or reduction of taxation,
46 which alone or in combination constitute the primary motivation for some
47 business activity or transaction, which activity or transaction changes
48 in a meaningful way, apart from tax effects, the economic position of
49 the taxpayer. The economic position of the taxpayer includes an increase
50 in the market share of the taxpayer, or the entry by the taxpayer into
51 new business markets.
52 (2) Royalty expense add backs. (A) For the purpose of computing city
53 adjusted gross income, a taxpayer must add back royalty payments [to a]
54 directly or indirectly paid, accrued, or incurred in connection with one
55 or more direct or indirect transactions with one or more related
S. 2609--D 44 A. 3009--D
1 [member] members during the taxable year to the extent deductible in
2 calculating federal taxable income.
3 (B) [The add back of royalty payments shall not be required if and to
4 the extent that such payments meet either of the following conditions:
5 (i) the related member during the same taxable year directly or indi-
6 rectly paid or incurred the amount to a person or entity that is not a
7 related member, and such transaction was done for a valid business and
8 the payments are made at arm's length;
9 (ii) the royalty payments are paid or incurred to a related member
10 organized under the laws of a country other than the United States, are
11 subject to a comprehensive income tax treaty between such country and
12 the United States, and are taxed in such country at a tax rate at least
13 equal to that imposed by this state.
14 (3) Royalty income exclusions. (A) For the purpose of computing city
15 adjusted gross income, a taxpayer shall be allowed to deduct royalty
16 payments directly or indirectly received from a related member during
17 the taxable year to the extent included in the taxpayer's federal taxa-
18 ble income unless such royalty payments would not be required to be
19 added back under paragraph two of this subdivision or other similar
20 provision in this title.] Exceptions. (i) The adjustment required in
21 this subdivision shall not apply to the portion of the royalty payment
22 that the taxpayer establishes, by clear and convincing evidence of the
23 type and in the form specified by the commissioner of finance, meets all
24 of the following requirements: (I) the related member was subject to tax
25 in this city or another city within the United States or a foreign
26 nation or some combination thereof on a tax base that included the
27 royalty payment paid, accrued or incurred by the taxpayer; (II) the
28 related member during the same taxable year directly or indirectly paid,
29 accrued or incurred such portion to a person that is not a related
30 member; and (III) the transaction giving rise to the royalty payment
31 between the taxpayer and the related member was undertaken for a valid
32 business purpose.
33 (ii) The adjustment required in this subdivision shall not apply if
34 the taxpayer establishes, by clear and convincing evidence of the type
35 and in the form specified by the commissioner of finance, that: (I) the
36 related member was subject to tax on or measured by its net income in
37 this city or another city within the United States, or some combination
38 thereof; (II) the tax base for said tax included the royalty payment
39 paid, accrued or incurred by the taxpayer; and (III) the aggregate
40 effective rate of tax applied to the related member in those jurisdic-
41 tions is no less than eighty percent of the statutory rate of tax that
42 applied to the taxpayer under section 11-1701 of this chapter for the
43 taxable year.
44 (iii) The adjustment required in this subdivision shall not apply if
45 the taxpayer establishes, by clear and convincing evidence of the type
46 and in the form specified by the commissioner of finance, that: (I) the
47 royalty payment was paid, accrued or incurred to a related member organ-
48 ized under the laws of a country other than the United States; (II) the
49 related member's income from the transaction was subject to a comprehen-
50 sive income tax treaty between such country and the United States; (III)
51 the related member was subject to tax in a foreign nation on a tax base
52 that included the royalty payment paid, accrued or incurred by the
53 taxpayer; (IV) the related member's income from the transaction was
54 taxed in such country at an effective rate of tax at least equal to that
55 imposed by this city; and (V) the royalty payment was paid, accrued or
S. 2609--D 45 A. 3009--D
1 incurred pursuant to a transaction that was undertaken for a valid busi-
2 ness purpose and using terms that reflect an arm's length relationship.
3 (iv) The adjustment required in this subdivision shall not apply if
4 the taxpayer and the commissioner of finance agree in writing to the
5 application or use of alternative adjustments or computations. The
6 commissioner of finance may, in his or her discretion, agree to the
7 application or use of alternative adjustments or computations when he or
8 she concludes that in the absence of such agreement the income of the
9 taxpayer would not be properly reflected.
10 § 13. This act shall take effect immediately and shall apply to taxa-
11 ble years beginning on or after January 1, 2013.
12 PART F
13 Section 1. Subparagraph (A) of paragraph 1, and paragraphs 4 and 5 of
14 subsection (oo) of section 606 of the tax law, subparagraph (A) of para-
15 graph 1 as amended by chapter 472 of the laws of 2010 and paragraph 4 as
16 amended and paragraph 5 as added by chapter 239 of the laws of 2009, are
17 amended to read as follows:
18 (A) For taxable years beginning on or after January first, two thou-
19 sand ten and before January first, two thousand [fifteen] twenty, a
20 taxpayer shall be allowed a credit as hereinafter provided, against the
21 tax imposed by this article, in an amount equal to one hundred percent
22 of the amount of credit allowed the taxpayer with respect to a certified
23 historic structure under subsection (a) (2) of section 47 of the federal
24 internal revenue code with respect to a certified historic structure
25 located within the state. Provided, however, the credit shall not exceed
26 five million dollars. For taxable years beginning on or after January
27 first, two thousand [fifteen] twenty, a taxpayer shall be allowed a
28 credit as hereinafter provided, against the tax imposed by this article,
29 in an amount equal to thirty percent of the amount of credit allowed the
30 taxpayer with respect to a certified historic structure under subsection
31 (a)(2) of section 47 of the federal internal revenue code with respect
32 to a certified historic structure located within the state; provided,
33 however, the credit shall not exceed one hundred thousand dollars.
34 (4) If the amount of the credit [allowable under this subsection for
35 any taxable year shall exceed the taxpayer's tax for such year, the
36 excess may be carried over to the following year or years, and may be
37 applied against the taxpayer's tax for such year or years] allowed under
38 this subsection for any taxable year shall exceed the taxpayer's tax for
39 such year, the excess shall be treated as an overpayment of tax to be
40 credited or refunded in accordance with the provisions of section six
41 hundred eighty-six of this article, provided, however, that no interest
42 shall be paid thereon.
43 (5) To be eligible for the credit allowable under this subsection the
44 rehabilitation project shall be in whole or in part [a targeted area
45 residence within the meaning of section 143(j) of the internal revenue
46 code or] located within a census tract which is identified as being at
47 or below one hundred percent of the state median family income [in the
48 most recent federal census] as calculated as of January first of each
49 year using the most recent five year estimate from the American communi-
50 ty survey published by the United States Census bureau.
51 § 2. Subparagraph (A) of paragraph 1, and paragraphs 4 and 5 of subdi-
52 vision 40 of section 210 of the tax law, subparagraph (A) of paragraph 1
53 and paragraph 4 as amended and paragraph 5 as added by chapter 472 of
54 the laws of 2010, are amended to read as follows:
S. 2609--D 46 A. 3009--D
1 (A) For taxable years beginning on or after January first, two thou-
2 sand ten and before January first, two thousand [fifteen] twenty, a
3 taxpayer shall be allowed a credit as hereinafter provided, against the
4 tax imposed by this article, in an amount equal to one hundred percent
5 of the amount of credit allowed the taxpayer with respect to a certified
6 historic structure under subsection (a) (2) of section 47 of the federal
7 internal revenue code with respect to a certified historic structure
8 located within the state. Provided, however, the credit shall not exceed
9 five million dollars. For taxable years beginning on or after January
10 first, two thousand [fifteen] twenty, a taxpayer shall be allowed a
11 credit as hereinafter provided, against the tax imposed by this article,
12 in an amount equal to thirty percent of the amount of credit allowed the
13 taxpayer with respect to a certified historic structure under subsection
14 (a)(2) of section 47 of the federal internal revenue code with respect
15 to a certified historic structure located within the state. Provided,
16 however, the credit shall not exceed one hundred thousand dollars.
17 (4) The credit allowed under this subdivision for any taxable year
18 shall not reduce the tax due for such year to less than the higher of
19 the amounts prescribed in paragraphs (c) and (d) of subdivision one of
20 this section. However, if the amount of the credit [allowable under this
21 subdivision for any taxable year shall exceed the taxpayer's tax for
22 such year, the excess may be carried over to the following year or
23 years, and may be deducted from the taxpayer's tax for such year or
24 years] allowed under this subdivision for any taxable year reduces the
25 tax to such amount, any amount of credit thus not deductible in such
26 taxable year shall be treated as an overpayment of tax to be credited or
27 refunded in accordance with the provisions of section one thousand
28 eighty-six of this chapter. Provided, however, the provisions of
29 subsection (c) of section one thousand eighty-eight of this chapter
30 notwithstanding, no interest shall be paid thereon.
31 (5) To be eligible for the credit allowable under this subdivision,
32 the rehabilitation project shall be in whole or in part [a targeted area
33 residence within the meaning of section 143(j) of the internal revenue
34 code or] located within a census tract which is identified as being at
35 or below one hundred percent of the state median family income [in the
36 most recent federal census] as calculated as of January first of each
37 year using the most recent five year estimate from the American communi-
38 ty survey published by the United States Census bureau.
39 § 3. Subparagraph (A) of paragraph 1, and paragraphs 4 and 5 of
40 subsection (u) of section 1456 of the tax law, as added by chapter 472
41 of the laws of 2010, are amended to read as follows:
42 (A) For taxable years beginning on or after January first, two thou-
43 sand ten and before January first, two thousand [fifteen] twenty, a
44 taxpayer shall be allowed a credit as hereinafter provided, against the
45 tax imposed by this article, in an amount equal to one hundred percent
46 of the amount of credit allowed the taxpayer with respect to a certified
47 historic structure under subsection (a)(2) of section 47 of the federal
48 internal revenue code with respect to a certified historic structure
49 located within the state. Provided, however, the credit shall not exceed
50 five million dollars. For taxable years beginning on or after January
51 first, two thousand [fifteen] twenty, a taxpayer shall be allowed a
52 credit as hereinafter provided, against the tax imposed by this article,
53 in an amount equal to thirty percent of the amount of credit allowed the
54 taxpayer with respect to a certified historic structure under subsection
55 (a)(2) of section 47 of the federal internal revenue code with respect
S. 2609--D 47 A. 3009--D
1 to a certified historic structure located within the state. Provided,
2 however, the credit shall not exceed one hundred thousand dollars.
3 (4) The credit allowed under this subsection for any taxable year
4 shall not reduce the tax to less than the dollar amount fixed as a mini-
5 mum tax by subsection (b) of section fourteen hundred fifty-five of this
6 article. [If the amount of credit allowable under this subsection for
7 any taxable year reduces the tax to such amount, the excess may be
8 carried over to the following year or years, and may be deducted from
9 the taxpayer's tax for such year or years.] However, if the amount of
10 credit allowed under this subsection for any taxable year reduces the
11 tax to such amount, any amount of credit thus not deductible in such
12 taxable year shall be treated as an overpayment of tax to be credited or
13 refunded in accordance with the provisions of section one thousand
14 eighty-six of this chapter. Provided, however, the provisions of
15 subsection (c) of section one thousand eighty-eight of this chapter
16 notwithstanding, no interest shall be paid thereon.
17 (5) To be eligible for the credit allowable under this subsection the
18 rehabilitation project shall be in whole or in part [a targeted area
19 residence within the meaning of section 143(j) of the internal revenue
20 code or] located within a census tract which is identified as being at
21 or below one hundred percent of the state median family income [in the
22 most recent federal census] as calculated as of January first of each
23 year using the most recent five year estimate from the American communi-
24 ty survey published by the United States Census bureau.
25 § 4. Subparagraph (A) of paragraph 1, and paragraphs 4 and 5 of subdi-
26 vision (y) of section 1511 of the tax law, as added by chapter 472 of
27 the laws of 2010, are amended to read as follows:
28 (A) For taxable years beginning on or after January first, two thou-
29 sand ten and before January first, two thousand [fifteen] twenty, a
30 taxpayer shall be allowed a credit as hereinafter provided, against the
31 tax imposed by this article, in an amount equal to one hundred percent
32 of the amount of credit allowed the taxpayer with respect to a certified
33 historic structure under subsection (a)(2) of section 47 of the federal
34 internal revenue code with respect to a certified historic structure
35 located within the state. Provided, however, the credit shall not exceed
36 five million dollars. For taxable years beginning on or after January
37 first, two thousand [fifteen] twenty, a taxpayer shall be allowed a
38 credit as hereinafter provided, against the tax imposed by this article,
39 in an amount equal to thirty percent of the amount of credit allowed the
40 taxpayer with respect to a certified historic structure under subsection
41 (a)(2) of section 47 of the federal internal revenue code with respect
42 to a certified historic structure located within the state. Provided,
43 however, the credit shall not exceed one hundred thousand dollars.
44 (4) The credit allowed under this subdivision for any taxable year
45 shall not reduce the tax due for such year to less than the minimum
46 fixed by paragraph four of subdivision (a) of section fifteen hundred
47 two or section fifteen hundred two-a of this article, whichever is
48 applicable. [If the amount of the credit allowable under this subdivi-
49 sion for any taxable year reduces the tax to such amount, the excess may
50 be carried over to the following year or years, and may be deducted from
51 the taxpayer's tax for such year or years.] However, if the amount of
52 credits allowed under this subdivision for any taxable year reduces the
53 tax to such amount, any amount of credit thus not deductible in such
54 taxable year shall be treated as an overpayment of tax to be credited or
55 refunded in accordance with the provisions of section one thousand
56 eighty-six of this chapter. Provided, however, the provisions of
S. 2609--D 48 A. 3009--D
1 subsection (c) of section one thousand eighty-eight of this chapter
2 notwithstanding, no interest shall be paid thereon.
3 (5) To be eligible for the credit allowable under this subdivision,
4 the rehabilitation project shall be in whole or in part [a targeted area
5 residence within the meaning of section 143(j) of the internal revenue
6 code or] located within a census tract which is identified as being at
7 or below one hundred percent of the state median family income [in the
8 most recent federal census] as calculated as of January first of each
9 year using the most recent five year estimate from the American communi-
10 ty survey published by the United States Census bureau.
11 § 5. This act shall take effect immediately and shall apply to taxable
12 years beginning on and after January 1, 2013; provided however the
13 amendments to paragraph 4 of subsection (oo) of section 606 of the tax
14 law made by section one of this act, the amendments to paragraph 4 of
15 subdivision 40 of section 210 of the tax law made by section two of this
16 act, the amendments to paragraph 4 of subsection (u) of section 1456 of
17 the tax law made by section three of this act and the amendments to
18 paragraph 4 of subdivision (y) of section 1511 of the tax law made by
19 section four of this act shall take effect January 1, 2015 and shall
20 apply to taxable years beginning on and after January 1, 2015 for quali-
21 fied rehabilitation placed in service on or after January 1, 2015.
22 PART G
23 Section 1. Section 187-b of the tax law, as amended by section 14 of
24 part W-1 of chapter 109 of the laws of 2006, is amended to read as
25 follows:
26 § 187-b. Alternative fuels [credit] and electric vehicle recharging
27 property credit. 1. General. A taxpayer shall be allowed a credit, to be
28 credited against the taxes imposed under sections one hundred eighty-
29 three, one hundred eighty-four, and one hundred eighty-five of this
30 article. Such credit, to be computed as hereinafter provided, shall be
31 allowed for alternative fuel vehicle refueling and electric vehicle
32 recharging property placed in service during the taxable year. Provided,
33 however, that the amount of such credit allowable against the tax
34 imposed by section one hundred eighty-four of this article shall be the
35 excess of the credit allowed by this section over the amount of such
36 credit allowable against the tax imposed by section one hundred eighty-
37 three of this article.
38 2. Alternative fuel vehicle refueling property and electric vehicle
39 recharging property. The credit under this section for alternative fuel
40 vehicle refueling and electric vehicle recharging property shall equal
41 for each installation of property the lesser of five thousand dollars or
42 fifty percent of the cost of any such property:
43 (a) which is located in this state; [and]
44 (b) [for which a credit is allowed under section thirty C of the
45 internal revenue code but not including alternative fuel vehicle refuel-
46 ing property relating to a qualified hybrid vehicle as such vehicle is
47 defined in subparagraph (B) of paragraph three of subsection (p) of
48 section six hundred six of this chapter] which constitutes alternative
49 fuel vehicle refueling property or electric vehicle recharging property;
50 and
51 (c) for which none of the cost has been paid for from the proceeds of
52 grants, including grants from the New York state energy research and
53 development authority or the New York power authority.
S. 2609--D 49 A. 3009--D
1 3. Definitions. (a) The term "alternative fuel vehicle refueling prop-
2 erty" means all of the equipment needed to dispense any fuel at least
3 eighty-five percent of the volume of which consists of one or more of
4 the following: natural gas, liquified natural gas, liquified petroleum,
5 or hydrogen.
6 (b) The term "electric vehicle recharging property" means [any such
7 property which is qualified within the meaning of section thirty C of
8 the internal revenue code, but shall not include alternative fuel vehi-
9 cle refueling property relating to a qualified hybrid vehicle as such
10 vehicle is defined in subparagraph (B) of paragraph three of subsection
11 (p) of section six hundred six of this chapter] all the equipment needed
12 to convey electric power from the electric grid or another power source
13 to an onboard vehicle energy storage system.
14 [(b) The term "qualified hybrid vehicle" shall have the same meaning
15 as provided for under subparagraph (B) of paragraph three of subsection
16 (p) of section six hundred six of this chapter.]
17 4. Carryovers. In no event shall the credit under this section be
18 allowed in an amount which will reduce the tax payable to less than the
19 applicable minimum tax fixed by section one hundred eighty-three or one
20 hundred eighty-five of this article. If, however, the amount of credit
21 allowable under this section for any taxable year reduces the tax to
22 such amount, any amount of credit not deductible in such taxable year
23 may be carried over to the following year or years and may be deducted
24 from the taxpayer's tax for such year or years.
25 5. Credit recapture[; Alternative fuel vehicle refueling property].
26 If, at any time before the end of its recovery period, alternative fuel
27 vehicle refueling or electric vehicle recharging property ceases to be
28 qualified, a recapture amount must be added back in the year in which
29 such cessation occurs.
30 (i) Cessation of qualification. Alternative fuel vehicle refueling
31 property or electric vehicle recharging property ceases to be qualified
32 if:
33 (I) the property no longer qualifies as [property described in section
34 thirty C of the internal revenue code] alternative fuel vehicle refuel-
35 ing property or electric vehicle recharging property; or
36 (II) fifty percent or more of the use of the property in a taxable
37 year is other than a trade or business in this state; or
38 (III) the taxpayer receiving the credit under this section sells or
39 disposes of the property and knows or has reason to know that the prop-
40 erty will be used in a manner described in this subparagraph.
41 (ii) Recapture amount. The recapture amount is equal to the credit
42 allowable under this section multiplied by a fraction, the numerator of
43 which is the total recovery period for the property minus the number of
44 recovery years prior to, but not including, the recapture year, and the
45 denominator of which is the total recovery period.
46 6. Termination. The credit allowed by subdivision two of this section
47 shall not apply in taxable years beginning after December thirty-first,
48 two thousand [ten] seventeen.
49 § 2. Subdivision 24 of section 210 of the tax law, as amended by
50 section 15 of part W-1 of chapter 109 of the laws of 2006, is amended to
51 read as follows:
52 24. Alternative fuels and electric vehicle recharging property credit.
53 (a) General. A taxpayer shall be allowed a credit, to be computed as
54 hereinafter provided, against the tax imposed by this article for alter-
55 native fuel vehicle refueling and electric vehicle recharging property
56 placed in service during the taxable year.
S. 2609--D 50 A. 3009--D
1 (b) Alternative fuel vehicle refueling property and electric vehicle
2 recharging property. The credit under this subdivision for alternative
3 fuel vehicle refueling and electric vehicle recharging property shall
4 equal for each installation of property the lesser of five thousand
5 dollars or fifty percent of the cost of any such property:
6 (i) which is located in this state; [and]
7 (ii) [for which a credit is allowed under section thirty C of the
8 internal revenue code but not including alternative fuel refueling prop-
9 erty relating to a qualified hybrid vehicle as such vehicle is defined
10 in subparagraph (B) of paragraph three of subsection (p) of section six
11 hundred six of this chapter] which constitutes alternative fuel vehicle
12 refueling property or electric vehicle recharging property; and
13 (iii) for which none of the cost has been paid for from the proceeds
14 of grants, including grants from the New York state energy research and
15 development authority or the New York power authority.
16 (c) Definitions. (i) The term "alternative fuel vehicle refueling
17 property" means all of the equipment needed to dispense any fuel at
18 least eighty-five percent of the volume of which consists of one or more
19 of the following: natural gas, liquified natural gas, liquified petrole-
20 um, or hydrogen.
21 (ii) The term "electric vehicle recharging property" means [any such
22 property which is qualified within the meaning of section thirty C of
23 the internal revenue code but shall not include alternative fuel vehicle
24 refueling property relating to a qualified hybrid vehicle as such vehi-
25 cle is defined in subparagraph (B) of paragraph three of subsection (p)
26 of section six hundred six of this chapter] all of the equipment needed
27 to convey electric power from the electric grid or another power source
28 to an onboard vehicle energy storage system.
29 (d) Carryovers. In no event shall the credit under this subdivision be
30 allowed in an amount which will reduce the tax payable to less than the
31 higher of the amounts prescribed in paragraphs (c) and (d) of subdivi-
32 sion one of this section. Provided, however, that if the amount of cred-
33 it allowable under this subdivision for any taxable year reduces the tax
34 to such amount, any amount of credit not deductible in such taxable year
35 may be carried over to the following year or years and may be deducted
36 from the taxpayer's tax for such year or years.
37 (e) Credit recapture. [(i) Alternative fuel vehicle refueling proper-
38 ty.] If, at any time before the end of its recovery period, alternative
39 fuel vehicle refueling or electric vehicle recharging property ceases to
40 be qualified, a recapture amount must be added back in the year in which
41 such cessation occurs.
42 (A) Alternative fuel vehicle refueling or electric vehicle recharging
43 property ceases to be qualified if:
44 (1) the property no longer qualifies as [property described in section
45 thirty C of the internal revenue code] alternative fuel vehicle refuel-
46 ing property or electric vehicle recharging property; or
47 (2) fifty percent or more of the use of the property in a taxable year
48 is other than in a trade or business in this state; or
49 (3) the taxpayer receiving the credit under this subdivision sells or
50 disposes of the property and knows or has reason to know that the prop-
51 erty will be used in a manner described in clauses one and two of this
52 subparagraph.
53 (B) Recapture amount. The recapture amount is equal to the credit
54 allowable under this subdivision multiplied by a fraction, the numerator
55 of which is the total recovery period for the property minus the number
S. 2609--D 51 A. 3009--D
1 of recovery years prior to, but not including, the recapture year, and
2 the denominator of which is the total recovery period.
3 (f) [Affiliates. (i) If a credit under this subdivision is allowed to
4 a taxpayer with respect to a taxable year, the action taken by such
5 taxpayer which resulted in such credit being allowed thereto may, at the
6 election of the taxpayer and an affiliate thereof, be ascribed to such
7 affiliate. Where such affiliate, based on such ascription, is allowed
8 such credit and deducts from the tax otherwise due the amount of such
9 credit, such credit shall be deemed in all respects to have been allowed
10 to such affiliate, provided that any action or inaction by the taxpayer
11 which constitutes an event of recapture described in paragraph (e) of
12 this subdivision shall be ascribed to the affiliate and shall constitute
13 an event of recapture with respect to the credit allowed to the affil-
14 iate pursuant to this subdivision.
15 (ii) Notwithstanding any other provision of law to the contrary, in
16 the case of the credit provided for under this subdivision being allowed
17 to, or asserted to be allowed to, an affiliate, pursuant to subparagraph
18 (i) of this paragraph, the commissioner shall have the same powers with
19 respect to examining the books and records of the taxpayer, and have
20 such other powers of investigation with respect to the taxpayer, as are
21 afforded under this chapter with respect to a taxpayer which has
22 deducted the credit allowed under this section from tax otherwise due,
23 as if it were the taxpayer which had deducted such credit from tax
24 otherwise due.
25 (iii) The term "affiliate" shall mean a corporation substantially all
26 the capital stock of which is owned or controlled either directly or
27 indirectly by the taxpayer, or which owns or controls either directly or
28 indirectly substantially all the capital stock of the taxpayer, or
29 substantially all the capital stock of which is owned or controlled
30 either directly or indirectly by interests which own or control either
31 directly or indirectly substantially all the capital stock of the
32 taxpayer.
33 (g)] Termination. The credit allowed by paragraph (b) of this subdivi-
34 sion shall not apply in taxable years beginning after December thirty-
35 first, two thousand [ten] seventeen.
36 § 3. Subsection (p) of section 606 of the tax law, as amended by
37 section 16 of part W-1 of chapter 109 of the laws of 2006, is amended to
38 read as follows:
39 (p) Alternative fuels and electric vehicle recharging property credit.
40 (1) General. A taxpayer shall be allowed a credit, to be computed as
41 hereinafter provided, against the tax imposed by this article, for
42 alternative fuel vehicle refueling and electric vehicle recharging prop-
43 erty placed in service during the taxable year.
44 (2) Alternative fuel vehicle refueling property and electric vehicle
45 recharging property. The credit under this subsection for [clean-fuel
46 vehicle refueling] alternative fuel vehicle refueling property or elec-
47 tric vehicle recharging property shall equal for each installation of
48 property the lesser of five thousand dollars or fifty percent of the
49 cost of any such property
50 (A) which is located in this state [and];
51 (B) [for which a credit is allowed under section thirty C of the
52 internal revenue code but not including alternative fuel vehicle refuel-
53 ing property relating to a qualified hybrid vehicle as such vehicle is
54 defined in subparagraph (B) of paragraph three of this subsection] which
55 constitutes alternative fuel vehicle refueling property or electric
56 vehicle recharging property; and
S. 2609--D 52 A. 3009--D
1 (C) for which none of the cost has been paid for from the proceeds of
2 grants, including grants from the New York state energy research and
3 development authority or the New York power authority.
4 (3) Definitions. (A) The term "alternative fuel vehicle refueling
5 property" means all of the equipment needed to dispense any fuel at
6 least eighty-five percent of the volume of which consists of one or more
7 of the following: natural gas, liquified natural gas, liquified petrole-
8 um, or hydrogen; and
9 (B) The term "electric vehicle recharging property" means [any such
10 property which is qualified within the meaning of section thirty C of
11 the internal revenue code, but such term shall not include alternative
12 fuel vehicle refueling property relating to a qualified hybrid vehicle
13 as such vehicle is defined in subparagraph (B) of this paragraph] all
14 the equipment needed to convey electric power from the electric grid or
15 another power source to an onboard vehicle energy storage system.
16 [(B) The term "qualified hybrid vehicle" means a motor vehicle, as
17 defined in section one hundred twenty-five of the vehicle and traffic
18 law,, that:
19 (i) draws propulsion energy from both
20 (a) an internal combustion engine (or heat engine that uses combusti-
21 ble fuel); and
22 (b) an energy storage device; and
23 (ii) employs a regenerative vehicle braking system that recovers waste
24 energy to charge such energy storage device.]
25 (4) Carryovers. If the amount of credit allowable under this
26 subsection shall exceed the taxpayer's tax for such year, the excess may
27 be carried over to the following year or years and may be deducted from
28 the taxpayer's tax for such year or years.
29 (5) Credit recapture. (A) [Vehicles.
30 (i) If, within three full years from the date a qualified hybrid vehi-
31 cle or a vehicle of which alternative fuel vehicle property is a part is
32 placed in service, such qualified hybrid vehicle or vehicle of which
33 alternative fuel vehicle property is a part] If, at any time before the
34 end of its recovery period, alternative fuel vehicle refueling property
35 or electric vehicle recharging property ceases to be qualified, a recap-
36 ture amount must be added back in the tax year in which such cessation
37 occurs.
38 [(ii)] (B) Cessation of qualification. [(I) A qualified hybrid vehicle
39 ceases to be qualified if
40 (a) it is modified by the taxpayer so that it no longer meets the
41 requirements of a qualified hybrid vehicle as defined in subparagraph
42 (B) of paragraph three of this subsection.
43 (b) the taxpayer receiving the credit under this subsection sells or
44 disposes of the vehicle and knows or has reason to know that the vehicle
45 will be so modified.
46 (B) Alternative fuel vehicle refueling property. (i) If, at any time
47 before the end of its recovery period, alternative fuel vehicle refuel-
48 ing property ceases to be qualified, a recapture amount must be added
49 back in the year in which such cessation occurs.
50 (ii) Cessation of qualification. Clean-fuel vehicle refueling] Alter-
51 native fuel vehicle refueling property or electric vehicle recharging
52 property ceases to be qualified if:
53 [(I)] (i) the property no longer qualifies as [property described in
54 section thirty C of the internal revenue code] alternative fuel vehicle
55 refueling property or electric vehicle recharging property, or
S. 2609--D 53 A. 3009--D
1 [(II)] (ii) fifty percent or more of the use of the property in a
2 taxable year is other than in a trade or business in this state, or
3 [(III)] (iii) the taxpayer receiving the credit under this subsection
4 sells or disposes of the property and knows or has reason to know that
5 the property will be used in a manner described in [item (I)] clause (i)
6 or [(II)] (ii) of this [clause] subparagraph.
7 [(iii)] (C) Recapture amount. The recapture amount is equal to the
8 credit allowable under this subsection multiplied by a fraction, the
9 numerator of which is the total recovery period for the property minus
10 the number of recovery years prior to, but not including, the recapture
11 year, and the denominator of which is the total recovery period.
12 (6) Termination. The credit allowed by [paragraph two of] this
13 subsection shall not apply in taxable years beginning after December
14 thirty-first, two thousand [ten] seventeen.
15 § 4. Clause (ix) of subparagraph (B) of paragraph 1 of subsection (i)
16 of section 606 of the tax law, as amended by section 7 of part C-1 of
17 chapter 57 of the laws of 2009, is amended to read as follows:
18 (ix) Alternative fuels [Cost] Amount of credit
19 and electric vehicle under subdivision twenty-four
20 recharging property of section two hundred ten
21 credit under subsection (p)
22 § 5. This act shall take effect immediately and shall apply to taxable
23 years beginning on or after January 1, 2013 for property placed in
24 service on or after such date.
25 PART H
26 Section 1. Section 23 of part U of chapter 61 of the laws of 2011
27 amending the real property tax law and other laws relating to establish-
28 ing standards for electronic real property tax administration, as
29 amended by section 1 of part G of chapter 59 of the laws of 2012, is
30 amended to read as follows:
31 § 23. This act shall take effect immediately; provided, however, that:
32 (a) the amendments to section 29 of the tax law made by section thir-
33 teen of this act shall apply to tax documents filed or required to be
34 filed on or after the sixtieth day after which this act shall have
35 become a law and shall expire and be deemed repealed December 31, [2013]
36 2016, provided however that the amendments to paragraph 4 of subdivision
37 (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of
38 section 29 of the tax law made by section thirteen of this act with
39 regard to individual taxpayers shall take effect September 15, 2011 but
40 only if the commissioner of taxation and finance has reported in the
41 report required by section seventeen-b of this act that the percentage
42 of individual taxpayers electronically filing their 2010 income tax
43 returns is less than eighty-five percent; provided that the commissioner
44 of taxation and finance shall notify the legislative bill drafting
45 commission of the date of the issuance of such report in order that the
46 commission may maintain an accurate and timely effective data base of
47 the official text of the laws of the state of New York in furtherance of
48 effectuating the provisions of section 44 of the legislative law and
49 section 70-b of the public officers law;
50 (b) sections fourteen, fifteen, sixteen and seventeen of this act
51 shall take effect September 15, 2011 but only if the commissioner of
52 taxation and finance has reported in the report required by section
S. 2609--D 54 A. 3009--D
1 seventeen-b of this act that the percentage of individual taxpayers
2 electronically filing their 2010 income tax returns is less than eight-
3 y-five percent;
4 (c) sections fourteen-a and fifteen-a of this act shall take effect
5 September 15, 2011 and expire and be deemed repealed December 31, 2012
6 but shall take effect only if the commissioner of taxation and finance
7 has reported in the report required by section seventeen-b of this act
8 that the percentage of individual taxpayers electronically filing their
9 2010 income tax returns is eighty-five percent or greater;
10 (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
11 act shall take effect January 1, [2014] 2017 but only if the commission-
12 er of taxation and finance has reported in the report required by
13 section seventeen-b of this act that the percentage of individual
14 taxpayers electronically filing their 2010 income tax returns is less
15 than eighty-five percent; and
16 (e) sections twenty-one and twenty-one-a of this act shall expire and
17 be deemed repealed December 31, [2013] 2016.
18 § 2. This act shall take effect immediately.
19 PART I
20 Intentionally omitted
21 PART J
22 Section 1. Section 862 of the general municipal law, as added by chap-
23 ter 1030 of the laws of 1969, is amended to read as follows:
24 § 862. Restrictions on funds of the agency. (1) No funds of the agency
25 shall be used in respect of any project if the completion thereof would
26 result in the removal of an industrial or manufacturing plant of the
27 project occupant from one area of the state to another area of the state
28 or in the abandonment of one or more plants or facilities of the project
29 occupant located within the state, provided, however, that neither
30 restriction shall apply if the agency shall determine on the basis of
31 the application before it that the project is reasonably necessary to
32 discourage the project occupant from removing such other plant or facil-
33 ity to a location outside the state or is reasonably necessary to
34 preserve the competitive position of the project occupant in its respec-
35 tive industry.
36 (2) (a) Except as provided in paragraph (b) of this subdivision, no
37 financial assistance of the agency shall be provided in respect of any
38 project where facilities or property that are primarily used in making
39 retail sales to customers who personally visit such facilities consti-
40 tute more than one-third of the total project cost. For the purposes of
41 this article, "retail sales" shall mean: (i) sales by a registered
42 vendor under article twenty-eight of the tax law primarily engaged in
43 the retail sale of tangible personal property, as defined in subpara-
44 graph (i) of paragraph four of subdivision (b) of section eleven hundred
45 one of the tax law; or (ii) sales of a service to such customers.
46 Except, however, that tourism destination projects shall not be prohib-
47 ited by this subdivision. For the purpose of this paragraph, "tourism
48 destination" shall mean a location or facility which is likely to
49 attract a significant number of visitors from outside the economic
50 development region as established by section two hundred thirty of the
51 economic development law, in which the project is located.
S. 2609--D 55 A. 3009--D
1 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
2 sion, financial assistance may, however, be provided to a project where
3 facilities or property that are primarily used in making retail sales of
4 goods or services to customers who personally visit such facilities to
5 obtain such goods or services constitute more than one-third of the
6 total project cost, where: (i) the predominant purpose of the project
7 would be to make available goods or services which would not, but for
8 the project, be reasonably accessible to the residents of the city,
9 town, or village within which the proposed project would be located
10 because of a lack of reasonably accessible retail trade facilities
11 offering such goods or services; or (ii) the project is located in a
12 highly distressed area.
13 (c) With respect to projects authorized pursuant to paragraph (b) of
14 this subdivision, no project shall be approved unless the agency shall
15 find after the public hearing required by section eight hundred fifty-
16 nine-a of this title that undertaking the project will serve the public
17 purposes of this article by preserving permanent, private sector jobs or
18 increasing the overall number of permanent, private sector jobs in the
19 state. Where the agency makes such a finding, prior to providing finan-
20 cial assistance to the project by the agency, the chief executive offi-
21 cer of the municipality for whose benefit the agency was created shall
22 confirm the proposed action of the agency.
23 § 2. The general municipal law is amended by adding a new section 875
24 to read as follows:
25 § 875. Special provisions applicable to state sales and compensating
26 use taxes and certain types of facilities. 1. For purposes of this
27 section: "state sales and use taxes" means sales and compensating use
28 taxes and fees imposed by article twenty-eight or twenty-eight-A of the
29 tax law but excluding such taxes imposed in a city by section eleven
30 hundred seven or eleven hundred eight of such article twenty-eight.
31 "IDA" means an industrial development agency established by this article
32 or an industrial development authority created by the public authorities
33 law. "Commissioner" means the commissioner of taxation and finance.
34 2. An IDA shall keep records of the amount of state and local sales
35 and use tax exemption benefits provided to each project and each agent
36 or project operator and shall make such records available to the commis-
37 sioner upon request. Such IDA shall also, within thirty days of provid-
38 ing financial assistance to a project that includes any amount of state
39 sales and use tax exemption benefits, report to the commissioner the
40 amount of such benefits for such project, the project to which they are
41 being provided, together with such other information and such specifici-
42 ty and detail as the commissioner may prescribe. This report may be
43 made in conjunction with the statement required by subdivision nine of
44 section eight hundred seventy-four of this title or it may be made as a
45 separate report, at the discretion of the commissioner. An IDA that
46 fails to make such records available to the commissioner or to file such
47 reports shall be prohibited from providing state sales and use tax
48 exemption benefits for any project unless and until such IDA comes into
49 compliance with all such requirements.
50 3. (a) An IDA shall include within its resolutions and project docu-
51 ments establishing any project or appointing an agent or project opera-
52 tor for any project the terms and conditions in this subdivision, and
53 every agent, project operator or other person or entity that shall enjoy
54 state sales and use tax exemption benefits provided by an IDA shall
55 agree to such terms as a condition precedent to receiving or benefiting
56 from such state sales and use exemptions benefits.
S. 2609--D 56 A. 3009--D
1 (b) The IDA shall recover, recapture, receive, or otherwise obtain
2 from an agent, project operator or other person or entity state sales
3 and use exemptions benefits taken or purported to be taken by any such
4 person to which the person is not entitled or which are in excess of the
5 amounts authorized or which are for property or services not authorized
6 or taken in cases where such agent or project operator, or other person
7 or entity failed to comply with a material term or condition to use
8 property or services in the manner required by the person's agreement
9 with the IDA. Such agent or project operator, or other person or entity
10 shall cooperate with the IDA in its efforts to recover, recapture,
11 receive, or otherwise obtain such state sales and use exemptions bene-
12 fits and shall promptly pay over any such amounts to the IDA that it
13 requests. The failure to pay over such amounts to the IDA shall be
14 grounds for the commissioner to assess and determine state sales and use
15 taxes due from the person under article twenty-eight of the tax law,
16 together with any relevant penalties and interest due on such amounts.
17 (c) If an IDA recovers, recaptures, receives, or otherwise obtains,
18 any amount of state sales and use tax exemption benefits from an agent,
19 project operator or other person or entity, the IDA shall, within thirty
20 days of coming into possession of such amount, remit it to the commis-
21 sioner, together with such information and report that the commissioner
22 deems necessary to administer payment over of such amount. An IDA shall
23 join the commissioner as a party in any action or proceeding that the
24 IDA commences to recover, recapture, obtain, or otherwise seek the
25 return of, state sales and use tax exemption benefits from an agent,
26 project operator or other person or entity.
27 (d) An IDA shall prepare an annual compliance report detailing its
28 terms and conditions described in paragraph (a) of this subdivision and
29 its activities and efforts to recover, recapture, receive, or otherwise
30 obtain state sales and use exemptions benefits described in paragraph
31 (b) of this subdivision, together with such other information as the
32 commissioner and the commissioner of economic development may require.
33 The report required by this subdivision shall be filed with the commis-
34 sioner, the director of the division of the budget, the commissioner of
35 economic development, the state comptroller, the governing body of the
36 municipality for whose benefit the agency was created, and may be
37 included with the annual financial statement required by paragraph (b)
38 of subdivision one of section eight hundred fifty-nine of this title.
39 Such report required by this subdivision shall be filed regardless of
40 whether the IDA is required to file such financial statement described
41 by such paragraph (b) of subdivision one of section eight hundred
42 fifty-nine. The failure to file or substantially complete the report
43 required by this subdivision shall be deemed to be the failure to file
44 or substantially complete the statement required by such paragraph (b)
45 of subdivision one of such section eight hundred fifty-nine, and the
46 consequences shall be the same as provided in paragraph (e) of subdivi-
47 sion one of such section eight hundred fifty-nine.
48 (e) This subdivision shall apply to any amounts of state sales and use
49 tax exemption benefits that an IDA recovers, recaptures, receives, or
50 otherwise obtains, regardless of whether the IDA or the agent, project
51 operator or other person or entity characterizes such benefits recov-
52 ered, recaptured, received, or otherwise obtained, as a penalty or
53 liquidated or contract damages or otherwise. The provisions of this
54 subdivision shall also apply to any interest or penalty that the IDA
55 imposes on any such amounts or that are imposed on such amounts by
56 operation of law or by judicial order or otherwise. Any such amounts or
S. 2609--D 57 A. 3009--D
1 payments that an IDA recovers, recaptures, receives, or otherwise
2 obtains, together with any interest or penalties thereon, shall be
3 deemed to be state sales and use taxes and the IDA shall receive any
4 such amounts or payments, whether as a result of court action or other-
5 wise, as trustee for and on account of the state.
6 4. The commissioner shall deposit and dispose of any amount of any
7 payments or moneys received from or paid over by an IDA or from or by
8 any person or entity, or received pursuant to an action or proceeding
9 commenced by an IDA, together with any interest or penalties thereon,
10 pursuant to subdivision three of this section, as state sales and use
11 taxes in accord with the provisions of article twenty-eight of the tax
12 law. The amount of any such payments or moneys, together with any
13 interest or penalties thereon, shall be attributed to the taxes imposed
14 by sections eleven hundred five and eleven hundred ten, on the one hand,
15 and section eleven hundred nine of the tax law, on the other hand, or to
16 any like taxes or fees imposed by such article, based on the proportion
17 that the rates of such taxes or fees bear to each other, unless there is
18 evidence to show that only one or the other of such taxes or fees was
19 imposed or received or paid over.
20 5. The statement that an IDA is required by subdivision nine of
21 section eight hundred seventy-four of this article to file with the
22 commissioner shall not be considered an exemption or other certificate
23 or document under article twenty-eight or twenty-nine of the tax law.
24 The IDA shall not represent to any agent, project operator, or other
25 person or entity that a copy of such statement may serve as a sales or
26 use tax exemption certificate or document. No agent or project operator
27 may tender a copy of such statement to any person required to collect
28 sales or use taxes as the basis to make any purchase exempt from tax. No
29 such person required to collect sales or use taxes may accept such a
30 statement in lieu of collecting any tax required to be collected. The
31 civil and criminal penalties for misuse of a copy of such statement as
32 an exemption certificate or document or for failure to pay or collect
33 tax shall be as provided in the tax law. In addition, the use by an IDA
34 or agent, project operator, or other person or entity of such statement,
35 or the IDA's recommendation of the use or tendering of such statement,
36 as such an exemption certificate or document shall be deemed to be,
37 under articles twenty-eight and thirty-seven of the tax law, the issu-
38 ance of a false or fraudulent exemption certificate or document with
39 intent to evade tax.
40 6. The commissioner is hereby authorized to audit the records,
41 actions, and proceedings of an IDA and of its agents and project opera-
42 tors to ensure that the IDA and its agents and project operators comply
43 with all the requirements of this section. Any information the commis-
44 sioner finds in the course of such audit may be used by the commissioner
45 to assess and determine state and local taxes of the IDA's agent or
46 project operator.
47 7. In addition to any other reporting or filing requirements an IDA
48 has under this article or other law, an IDA shall also report and make
49 available on the internet, without charge, copies of its resolutions and
50 agreements appointing an agent or project operator or otherwise related
51 to any project it establishes. It shall also provide, without charge,
52 copies of all such reports and information to a person who asks for it
53 in writing or in person. The IDA may, at the request of its agent or
54 project operator delete from any such copies posted on the internet or
55 provided to a person described in the prior sentence portions of its
S. 2609--D 58 A. 3009--D
1 records that are specifically exempted from disclosure under article six
2 of the public officers law.
3 8. In consultation with the commissioner of economic development, the
4 commissioner of taxation and finance is hereby authorized to adopt rules
5 and regulations and to issue publications and other guidance implement-
6 ing the provisions of this section and of the other sections of this
7 article relating to any state or local tax or fee, or exemption or
8 exclusion therefrom, that the commissioner administers and that may be
9 affected by any provision of this article, and any such rules and regu-
10 lations of the commissioner shall have the same force and effect with
11 respect to such taxes and fees, or amounts measured in respect of them,
12 as if they had been adopted by the commissioner pursuant to the authori-
13 ty of the tax law.
14 9. To the extent that a provision of this section conflicts with a
15 provision of any other section of this article, the provisions of this
16 section shall control.
17 § 3. The public authorities law is amended by adding a new section
18 1963-b to read as follows:
19 § 1963-b. Special provisions applicable to state sales and compensat-
20 ing use taxes and certain types of facilities. The provisions of section
21 eight hundred seventy-five of the general municipal law shall apply to
22 the provisions of this title and to the authority created by this title
23 with the same force and effect as if the provisions of such section
24 eight hundred seventy-five had been incorporated in full into this title
25 and had expressly referred to the provisions of this title and to such
26 authority, with such changes to such section as are necessary to refer
27 to the provisions of this title and to the authority created by this
28 title.
29 § 4. The public authorities law is amended by adding a new section
30 2326-a to read as follows:
31 § 2326-a. Special provisions applicable to state sales and compensat-
32 ing use taxes and certain types of facilities. The provisions of section
33 eight hundred seventy-five of the general municipal law shall apply to
34 the provisions of this title and to the authority created by this title
35 with the same force and effect as if the provisions of such section
36 eight hundred seventy-five had been incorporated in full into this title
37 and had expressly referred to the provisions of this title and to such
38 authority, with such changes to such section as are necessary to refer
39 to the provisions of this title and to the authority created by this
40 title.
41 § 5. Subdivision 3 of section 810 of the general municipal law, as
42 amended by chapter 356 of the laws of 1993, is amended to read as
43 follows:
44 3. The term "local officer or employee" shall mean the heads (other
45 than local elected officials) of any agency, department, division, coun-
46 cil, board, commission, or bureau of a political subdivision and their
47 deputies and assistants, and the officers and employees of such agen-
48 cies, departments, divisions, boards, bureaus, commissions or councils
49 who hold policy-making positions, as annually determined by the appoint-
50 ing authority and set forth in a written instrument which shall be filed
51 with the appropriate body during the month of February; except that the
52 term "local officer or employee" shall not mean a judge, justice, offi-
53 cer or employee of the unified court system. Members, officers, and
54 employees of each industrial development agency and authority estab-
55 lished by this chapter or created by the public authorities law shall be
S. 2609--D 59 A. 3009--D
1 deemed officers or employees of the county, city, village, or town for
2 whose benefit such agency or authority is established or created.
3 § 6. Subdivision 4 of section 854 of the general municipal law, as
4 amended by chapter 478 of the laws of 2011, is amended to read as
5 follows:
6 (4) "Project" - shall mean any land, any building or other improve-
7 ment, and all real and personal properties located within the state of
8 New York and within or outside or partially within and partially outside
9 the municipality for whose benefit the agency was created, including,
10 but not limited to, machinery, equipment and other facilities deemed
11 necessary or desirable in connection therewith, or incidental thereto,
12 whether or not now in existence or under construction, which shall be
13 suitable for manufacturing, warehousing, research, commercial or indus-
14 trial purposes or other economically sound purposes identified and
15 called for to implement a state designated urban cultural park manage-
16 ment plan as provided in title G of the parks, recreation and historic
17 preservation law and which may include or mean an industrial pollution
18 control facility, a recreation facility, educational or cultural facili-
19 ty, a horse racing facility, a railroad facility or an automobile racing
20 facility, provided, however, no agency shall use its funds or provide
21 financial assistance in respect of any project wholly or partially
22 outside the municipality for whose benefit the agency was created with-
23 out the prior consent thereto by the governing body or bodies of all the
24 other municipalities in which a part or parts of the project is, or is
25 to be, located, and such portion of the project located outside such
26 municipality for whose benefit the agency was created shall be contig-
27 uous with the portion of the project inside such municipality.
28 § 7. Section 883 of the general municipal law, as added by chapter 356
29 of the laws of 1993, is amended to read as follows:
30 § 883. Conflicts of interest. All members, officers, and employees of
31 an agency or industrial development authority established by this chap-
32 ter or created by the public authorities law shall be subject to the
33 provisions of article eighteen of this chapter.
34 § 8. Subdivision 9 of section 874 of the general municipal law, as
35 added by section 1 of subpart C of part S of chapter 57 of the laws of
36 2010, is amended to read as follows:
37 (9) (a) Within thirty days of the date that the agency designates a
38 project operator or other person to act as agent of the agency for
39 purposes of providing financial assistance consisting of any sales and
40 compensating use tax exemption to such person, the agency shall file a
41 statement with the department of taxation and finance relating thereto,
42 on a form and in such manner as is prescribed by the commissioner of
43 taxation and finance, identifying each such agent so named by the agen-
44 cy, setting forth the taxpayer identification number of each such agent,
45 giving a brief description of the property and/or services intended to
46 be exempted from such taxes as a result of such appointment as agent,
47 indicating the agency's rough estimate of the value of the property
48 and/or services to which such appointment as agent relates, indicating
49 the date when such designation as agent became effective and indicating
50 the date upon which such designation as agent shall cease.
51 (b) Within thirty days of the date that the agency's designation
52 described in paragraph (a) of this subdivision has been amended, termi-
53 nated, been revoked, or become invalid or ineffective for any reason,
54 the agency shall file a statement with the department of taxation and
55 finance relating thereto, on a form and in such manner as is prescribed
56 by the commissioner of taxation and finance, identifying each such agent
S. 2609--D 60 A. 3009--D
1 so named by the agency in the original designation and setting forth the
2 taxpayer identification number and other identifying information of each
3 such agent, the date as of which the original designation was amended,
4 terminated, revoked, or became invalid or ineffective and the reason
5 therefor, together with a copy of the original designation.
6 § 9. Subdivision 4 of section 1963 of the public authorities law, as
7 added by section 2 of subpart C of part S of chapter 57 of the laws of
8 2010, is amended to read as follows;
9 4. (a) Within thirty days of the date that the authority designates a
10 project operator or other person to act as agent of the authority for
11 purposes of providing financial assistance consisting of any sales and
12 compensating use tax exemption to such person, the agency shall file a
13 statement with the department of taxation and finance relating thereto,
14 on a form and in such manner as is prescribed by the commissioner of
15 taxation and finance, identifying each such agent so named by the
16 authority, setting forth the taxpayer identification number of each such
17 agent, giving a brief description of the property and/or services
18 intended to be exempted from such taxes as a result of such appointment
19 as agent, indicating the authority's rough estimate of the value of the
20 property and/or services to which such appointment as agent relates,
21 indicating the date when such designation as agent became effective and
22 indicating the date upon which such designation as agent shall cease.
23 (b) Within thirty days of the date that the authority's designation
24 described in paragraph (a) of this subdivision has been amended, termi-
25 nated, been revoked, or become invalid or ineffective for any reason,
26 the authority shall file a statement with the department of taxation and
27 finance relating thereto, on a form and in such manner as is prescribed
28 by the commissioner of taxation and finance, identifying each such agent
29 so named by the authority in the original designation and setting forth
30 the taxpayer identification number and other identifying information of
31 each such agent, the date as of which the original designation was
32 amended, terminated, revoked, or became invalid or ineffective and the
33 reason therefor, together with a copy of the original designation.
34 § 10. Subdivision 4 of section 2326 of the public authorities law, as
35 added by section 3 of subpart C of part S of chapter 57 of the laws of
36 2010, is amended to read as follows:
37 4. (a) Within thirty days of the date that the authority designates a
38 project operator or other person to act as agent of the authority for
39 purposes of providing financial assistance consisting of any sales and
40 compensating use tax exemption to such person, the agency shall file a
41 statement with the department of taxation and finance relating thereto,
42 on a form and in such manner as is prescribed by the commissioner of
43 taxation and finance, identifying each such agent so named by the
44 authority, setting forth the taxpayer identification number of each such
45 agent, giving a brief description of the property and/or services
46 intended to be exempted from such taxes as a result of such appointment
47 as agent, indicating the authority's rough estimate of the value of the
48 property and/or services to which such appointment as agent relates,
49 indicating the date when such designation as agent became effective and
50 indicating the date upon which such designation as agent shall cease.
51 (b) Within thirty days of the date that the authority's designation
52 described in paragraph (a) of this subdivision has been amended, termi-
53 nated, been revoked, or become invalid or ineffective for any reason,
54 the authority shall file a statement with the department of taxation and
55 finance relating thereto, on a form and in such manner as is prescribed
56 by the commissioner of taxation and finance, identifying each such agent
S. 2609--D 61 A. 3009--D
1 so named by the authority in the original designation and setting forth
2 the taxpayer identification number and other identifying information of
3 each such agent, the date as of which the original designation was
4 amended, terminated, revoked, or became invalid or ineffective and the
5 reason therefor, together with a copy of the original designation.
6 § 11. Severability. If any provision of this act shall for any reason
7 be finally adjudged by any court of competent jurisdiction to be inval-
8 id, such judgment shall not affect, impair, or invalidate the remainder
9 of this act, but shall be confined in its operation to the provision
10 directly involved in the controversy in which such judgment shall have
11 been rendered. It is hereby declared to be the intent of the legislature
12 that this act would have been enacted even if such invalid provision had
13 not been included in this act.
14 § 12. This act shall take effect immediately and shall apply to (a)
15 any project established, agent or project operator appointed on or after
16 the date this act shall have become a law and any financial assistance
17 or agreement regarding payments in lieu of taxes provided thereto, (b)
18 any amendment or revision involving additional funds or benefits made on
19 or after the date this act shall have become a law to any project estab-
20 lished, agent or project operator appointed, financial assistance
21 provided, or payment in lieu of taxes entered into, prior to that date,
22 and (c) any state sales and compensating use tax exemption benefits and
23 any payments in lieu of state sales and compensating use taxes recov-
24 ered, recaptured, received, or otherwise obtained by an industrial
25 development agency established by the general municipal law or an indus-
26 trial development authority created by title 11 or title 15 of article 8
27 of the public authorities law on or after such date.
28 PART K
29 Section 1. Paragraph 42 of subdivision (a) of section 1115 of the tax
30 law, as added by section 11 of part W-1 of chapter 109 of the laws of
31 2006, is amended to read as follows:
32 (42) E85, CNG or hydrogen, for use or consumption directly and exclu-
33 sively in the engine of a motor vehicle and natural gas purchased and
34 converted into CNG, for use or for sale for use or consumption directly
35 and exclusively in the engine of a motor vehicle.
36 § 2. This act shall take effect on the first day of a sales tax quar-
37 terly period, as described in subdivision (b) of section 1136 of the tax
38 law, next commencing after this act shall have become a law and shall
39 apply in accordance with the applicable transitional provisions in
40 sections 1106 and 1217 of the tax law; provided, however, that the
41 amendments to paragraph 42 of subdivision (a) of section 1115 of the tax
42 law made by section one of this act shall not affect the repeal of such
43 paragraph and shall be deemed repealed therewith.
44 PART L
45 Section 1. Section 301-c of the tax law is amended by adding a new
46 subdivision (p) to read as follows:
47 (p) Reimbursement for motor fuel and diesel motor fuel used by a
48 voluntary ambulance service, as defined in section three thousand one of
49 the public health law, a fire company or a fire department, as defined
50 in section three of the volunteer firefighters' benefit law, or a volun-
51 teer rescue squad supported in whole or in part by tax monies, where any
52 such entity is the purchaser, user or consumer of motor fuel or diesel
S. 2609--D 62 A. 3009--D
1 motor fuel in a vehicle owned and operated by such entity and used
2 exclusively for such entity's purposes. A purchaser shall be eligible
3 for reimbursement of the tax imposed pursuant to this article if (1) any
4 tax imposed pursuant to this article has been paid with respect to such
5 gallonage and the entire amount of such tax has been absorbed by such
6 purchaser, and (2) such purchaser possesses documentary proof satisfac-
7 tory to the commissioner evidencing the absorption by such purchaser of
8 the entire amount of such tax. Provided, that the commissioner shall
9 require such documentary proof to qualify for any reimbursement provided
10 hereunder as the commissioner deems appropriate.
11 § 2. This act shall take effect on the first day of the first month
12 next succeeding the sixtieth day after it shall have become a law.
13 PART M
14 Intentionally omitted
15 PART N
16 Intentionally omitted
17 PART O
18 Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of
19 section 481 of the tax law, as amended by chapter 604 of the laws of
20 2008, is amended to read as follows:
21 (i) In addition to any other penalty imposed by this article, the
22 commissioner may (A) impose a penalty of not more than [one] six hundred
23 [fifty] dollars for each two hundred cigarettes, or fraction thereof, in
24 excess of one thousand cigarettes in unstamped or unlawfully stamped
25 packages in the possession or under the control of any person or (B)
26 impose a penalty of not more than two hundred dollars for each ten unaf-
27 fixed false, altered or counterfeit cigarette tax stamps, imprints or
28 impressions, or fraction thereof, in the possession or under the control
29 of any person. In addition, the commissioner may impose a penalty of not
30 more than seventy-five dollars for each fifty cigars or one pound of
31 tobacco, or fraction thereof, in excess of two hundred fifty cigars or
32 five pounds of tobacco in the possession or under the control of any
33 person and a penalty of not more than one hundred fifty dollars for each
34 fifty cigars or pound of tobacco, or fraction thereof, in excess of five
35 hundred cigars or ten pounds of tobacco in the possession or under the
36 control of any person, with respect to which the tobacco products tax
37 has not been paid or assumed by a distributor or tobacco products deal-
38 er; provided, however, that any such penalty imposed shall not exceed
39 seven thousand five hundred dollars in the aggregate. The commissioner
40 may impose a penalty of not more than seventy-five dollars for each
41 fifty cigars or one pound of tobacco, or fraction thereof, in excess of
42 fifty cigars or one pound of tobacco in the possession or under the
43 control of any tobacco products dealer or distributor appointed by the
44 commissioner, and a penalty of not more than one hundred fifty dollars
45 for each fifty cigars or pound of tobacco, or fraction thereof, in
46 excess of two hundred fifty cigars or five pounds of tobacco in the
47 possession or under the control of any such dealer or distributor, with
48 respect to which the tobacco products tax has not been paid or assumed
49 by a distributor or a tobacco products dealer; provided, however, that
S. 2609--D 63 A. 3009--D
1 any such penalty imposed shall not exceed fifteen thousand dollars in
2 the aggregate.
3 § 2. This act shall take effect June 1, 2013.
4 PART P
5 Section 1. The tax law is amended by adding a new section 171-v to
6 read as follows:
7 § 171-v. Enforcement of delinquent tax liabilities through the suspen-
8 sion of drivers' licenses. (1) The commissioner shall enter into a writ-
9 ten agreement with the commissioner of motor vehicles, which shall set
10 forth the procedures for the two departments to cooperate in a program
11 to improve tax collection through the suspension of drivers' licenses of
12 taxpayers with past-due tax liabilities equal to or in excess of ten
13 thousand dollars. For the purposes of this section, the term "tax
14 liabilities" shall mean any tax, surcharge, or fee administered by the
15 commissioner, or any penalty or interest due on these amounts owed by an
16 individual with a New York driver's license, the term "driver's license"
17 means any license issued by the department of motor vehicles, except for
18 a commercial driver's license as defined in section five hundred one-a
19 of the vehicle and traffic law, and the term "past-due tax liabilities"
20 means any tax liability or liabilities which have become fixed and final
21 such that the taxpayer no longer has any right to administrative or
22 judicial review.
23 (2) The agreement shall include the following provisions:
24 (a) the procedures by which the department shall notify the commis-
25 sioner of motor vehicles of taxpayers with past-due tax liabilities,
26 including the procedures by which the department and the department of
27 motor vehicles shall share the information necessary to identify indi-
28 viduals with past-due tax liabilities, which shall include a taxpayer's
29 name, social security number, and any other information necessary to
30 ensure the proper identification of the taxpayer;
31 (b) the procedures by which the commissioner shall notify the depart-
32 ment of motor vehicles that a taxpayer has satisfied his or her past-due
33 tax liabilities, or has entered into an installment payment agreement or
34 has otherwise made payment arrangements satisfactory to the commission-
35 er, so that the suspension of the taxpayer's driver's license may be
36 lifted; and
37 (c) any other matter the department and the department of motor vehi-
38 cles shall deem necessary to carry out the provisions of this section.
39 (3) The department shall provide notice to the taxpayer of his or her
40 inclusion in the license suspension program no later than sixty days
41 prior to the date the department intends to inform the commissioner of
42 motor vehicles of the taxpayer's inclusion. However, no such notice
43 shall be issued to a taxpayer whose wages are being garnished by the
44 department for the payment of past-due tax liabilities or past-due child
45 support or combined child and spousal support arrears. Notice shall be
46 provided by first class mail to the taxpayer's last known address as
47 such address appears in the electronic systems or records of the depart-
48 ment. Such notice shall include:
49 (a) a clear statement of the past-due tax liabilities along with a
50 statement that the department shall provide to the department of motor
51 vehicles the taxpayer's name, social security number and any other iden-
52 tifying information necessary for the purpose of suspending his or her
53 driver's license pursuant to this section and subdivision four-f of
S. 2609--D 64 A. 3009--D
1 section five hundred ten of the vehicle and traffic law sixty days after
2 the mailing or sending of such notice to the taxpayer;
3 (b) a statement that the taxpayer may avoid suspension of his or her
4 license by fully satisfying the past-due tax liabilities or by making
5 payment arrangements satisfactory to the commissioner, and information
6 as to how the taxpayer can pay the past-due tax liabilities to the
7 department, enter into a payment arrangement or request additional
8 information;
9 (c) a statement that the taxpayer's right to protest the notice is
10 limited to raising issues set forth in subdivision five of this section;
11 (d) a statement that the suspension of the taxpayer's driver's license
12 shall continue until the past-due tax liabilities are fully paid or the
13 taxpayer makes payment arrangements satisfactory to the commissioner;
14 and
15 (e) any other information that the commissioner deems necessary.
16 (4) After the expiration of the sixty day period, if the taxpayer has
17 not challenged the notice pursuant to subdivision five of this section
18 and the taxpayer has failed to satisfy the past-due tax liabilities or
19 make payment arrangements satisfactory to the commissioner, the depart-
20 ment shall notify the department of motor vehicles, in the manner agreed
21 upon by the two agencies, that the taxpayer's driver's license shall be
22 suspended pursuant to subdivision four-f of section five hundred ten of
23 the vehicle and traffic law; provided, however, in any case where a
24 taxpayer fails to comply with the terms of a current payment arrangement
25 more than once within a twelve month period, the commissioner shall
26 immediately notify the department of motor vehicles that the taxpayer's
27 driver's license shall be suspended.
28 (5) Notwithstanding any other provision of law, and except as specif-
29 ically provided herein, the taxpayer shall have no right to commence a
30 court action or proceeding or to any other legal recourse against the
31 department or the department of motor vehicles regarding a notice issued
32 by the department pursuant to this section and the referral by the
33 department of any taxpayer with past-due tax liabilities to the depart-
34 ment of motor vehicles pursuant to this section for the purpose of
35 suspending the taxpayer's driver's license. A taxpayer may only chal-
36 lenge such suspension or referral on the grounds that (i) the individual
37 to whom the notice was provided is not the taxpayer at issue; (ii) the
38 past-due tax liabilities were satisfied; (iii) the taxpayer's wages are
39 being garnished by the department for the payment of the past-due tax
40 liabilities at issue or for past-due child support or combined child and
41 spousal support arrears; (iv) the taxpayer's wages are being garnished
42 for the payment of past-due child support or combined child and spousal
43 support arrears pursuant to an income execution issued pursuant to
44 section five thousand two hundred forty-one of the civil practice law
45 and rules; (v) the taxpayer's driver's license is a commercial driver's
46 license as defined in section five hundred one-a of the vehicle and
47 traffic law; or (vi) the department incorrectly found that the taxpayer
48 has failed to comply with the terms of a payment arrangement made with
49 the commissioner more than once within a twelve month period for the
50 purposes of subdivision three of this section.
51 However, nothing in this subdivision is intended to limit a taxpayer
52 from seeking relief from joint and several liability pursuant to section
53 six hundred fifty-four of this chapter, to the extent that he or she is
54 eligible pursuant to that subdivision, or establishing to the department
55 that the enforcement of the underlying tax liabilities has been stayed
S. 2609--D 65 A. 3009--D
1 by the filing of a petition pursuant to the Bankruptcy Code of 1978
2 (Title Eleven of the United States Code).
3 (6) Notwithstanding any provision of this chapter to the contrary, the
4 department may disclose to the department of motor vehicles the informa-
5 tion described in this section that, in the discretion of the commis-
6 sioner, is necessary for the proper identification of a taxpayer
7 referred to the department of motor vehicles for the purpose of suspend-
8 ing the taxpayer's driver's license pursuant to this section and subdi-
9 vision four-f of section five hundred ten of the vehicle and traffic
10 law. The department of motor vehicles may not redisclose this informa-
11 tion to any other entity or person, other than for the purpose of
12 informing the taxpayer that his or her driver's license has been
13 suspended.
14 (7) Except as otherwise provided in this section, the activities to
15 collect past-due tax liabilities undertaken by the department pursuant
16 to this section shall not in any way limit, restrict or impair the
17 department from exercising any other authority to collect or enforce tax
18 liabilities under any other applicable provision of law.
19 § 2. Section 510 of the vehicle and traffic law is amended by adding a
20 new subdivision 4-f to read as follows:
21 4-f. Suspension for failure to pay past-due tax liabilities. (1) The
22 commissioner shall enter into a written agreement with the commissioner
23 of taxation and finance, as provided in section one hundred
24 seventy-one-v of the tax law, which shall set forth the procedures for
25 suspending the drivers' licenses of individuals who have failed to
26 satisfy past-due tax liabilities as such terms are defined in such
27 section.
28 (2) Upon receipt of notification from the department of taxation and
29 finance that an individual has failed to satisfy past-due tax liabil-
30 ities, or to otherwise make payment arrangements satisfactory to the
31 commissioner of taxation and finance, or has failed to comply with the
32 terms of such payment arrangements more than once within a twelve month
33 period, the commissioner or his or her agent shall suspend the license
34 of such person to operate a motor vehicle. In the event such person is
35 unlicensed, such person's privilege of obtaining a license shall be
36 suspended. Such suspension shall take effect no later than fifteen days
37 from the date of the notice thereof provided to the person whose license
38 or privilege of obtaining a license is to be suspended, and shall remain
39 in effect until such time as the commissioner is advised that the person
40 has satisfied his or her past-due tax liabilities, or has otherwise made
41 payment arrangements satisfactory to the commissioner of taxation and
42 finance.
43 (3) From the time the commissioner is notified by the department of
44 taxation and finance under this section, the commissioner shall be
45 relieved from all liability to such person which may otherwise arise
46 under this section, and such person shall have no right to commence a
47 court action or proceeding or to any other legal recourse against the
48 commissioner to recover such driving privileges as authorized by this
49 section. In addition, notwithstanding any other provision of law, such
50 person shall have no right to a hearing or appeal pursuant to this chap-
51 ter with respect to a suspension of driving privileges as authorized by
52 this section.
53 (4) Notwithstanding any provision of law to the contrary, the depart-
54 ment shall furnish the department of taxation and finance with the
55 information necessary for the proper identification of an individual
56 referred to the department for the purpose of driver's license suspen-
S. 2609--D 66 A. 3009--D
1 sion pursuant to this section and section one hundred seventy-one-v of
2 the tax law. This shall include the individual's name, social security
3 number and any other information the commissioner of motor vehicles
4 deems necessary.
5 (5) Any person whose driver's license is suspended pursuant to para-
6 graph two of this subdivision may apply for the issuance of a restricted
7 use license as provided in section five hundred thirty of this title.
8 § 3. Subdivision 7 of section 511 of the vehicle and traffic law, as
9 added by chapter 81 of the laws of 1995, is amended to read as follows:
10 7. Exceptions. When a person is convicted of a violation of subdivi-
11 sion one [of] or two of this section, and the suspension was issued
12 pursuant to (a) subdivision four-e of section five hundred ten of this
13 article due to a support arrears, or (b) subdivision four-f of section
14 five hundred ten of the article due to past-due tax liabilities, the
15 mandatory penalties set forth in subdivision one or two of this section
16 shall not be applicable if, on or before the return date or subsequent
17 adjourned date, such person presents proof that such support arrears or
18 past-due tax liabilities have been satisfied as shown by certified
19 check, notice issued by the court ordering the suspension, or notice
20 from a support collection unit or department of taxation and finance as
21 applicable. The sentencing court shall take the satisfaction of arrears
22 or the payment of the past-due tax liabilities into account when impos-
23 ing a sentence for any such conviction. For licenses suspended for non-
24 payment of past-due tax liabilities, the court shall also take into
25 consideration proof, in the form of a notice from the department of
26 taxation and finance, that such person has made payment arrangements
27 that are satisfactory to the commissioner of taxation and finance.
28 § 4. Section 530 of the vehicle and traffic law is amended by adding a
29 new subdivision 5-b to read as follows:
30 (5-b) Issuance of a restricted license shall not be denied to any
31 person whose license is suspended pursuant to subdivision four-f of
32 section five hundred ten of this title for any reason other than such
33 person's failure to otherwise have a valid or renewable driver's
34 license. The restrictions on the types of vehicles which may be operated
35 with a restricted license contained in such subdivision five of this
36 section shall not be applicable to a restricted license issued to a
37 person pursuant to subdivision four-f of section five hundred ten of
38 this title. The issuance of a restricted license issued as a result of a
39 suspension under subdivision four-f of section five hundred ten of this
40 title shall not in any way affect a person's eligibility for a
41 restricted license at some future time.
42 § 5. This act shall take effect immediately; provided, however, that
43 the department of taxation and finance and the department of motor vehi-
44 cles shall have up to six months after this act shall have become a law
45 to execute the written agreement and implement the necessary procedures
46 as described in sections one and two of this act.
47 PART Q
48 Section 1. The tax law is amended by adding a new section 174-c to
49 read as follows:
50 § 174-c. Service of income execution without filing a warrant. 1.
51 Notwithstanding any provision of law to the contrary, if any individual
52 liable for the payment of any tax or other imposition administered by
53 the commissioner, including any additions to tax, penalties and interest
54 in connection therewith, fails to pay or to collect or pay over the same
S. 2609--D 67 A. 3009--D
1 within twenty-one calendar days after notice and demand therefor is
2 given to such individual (ten business days if the amount for which such
3 notice and demand is made equals or exceeds one hundred thousand
4 dollars), the commissioner is authorized to serve an income execution on
5 the individual or on the person from whom the individual is receiving,
6 or will receive, money, without filing a warrant in the office of the
7 clerk of the appropriate county or in the department of state as
8 provided for in this chapter. For purposes of serving an income
9 execution pursuant to this section, the commissioner shall, in the right
10 of the people of the state of New York, be deemed to have obtained judg-
11 ment against the individual for the tax or other imposition, and the
12 additions to tax, penalties and interest in connection thereof, and
13 there shall be a lien on the amount of the individual's income that may
14 be garnished. If the commissioner chooses to serve an income execution
15 without filing a warrant pursuant to this section, the commissioner must
16 serve the income execution within six years after the first date a
17 warrant could be filed pursuant to section one hundred seventy-four-b of
18 this article. When serving an income execution without the filing of a
19 warrant, the commissioner shall follow the procedures set forth in
20 section five thousand two hundred thirty-one of the civil practice law
21 and rules, with the references in such section to "sheriff" to be read
22 as referring to the commissioner or the department. The income
23 execution shall specify the name and address of the person from whom the
24 taxpayer is receiving or will receive money; the amount of money, the
25 frequency of its payment and the amount of the installments to be
26 collected therefrom; and shall contain a notice to the taxpayer that the
27 taxpayer shall commence payment of the installments specified in the
28 notice within a specified period of time that is no less than twenty-one
29 days after the notice is mailed to the taxpayer, and that, upon the
30 taxpayer's default, the execution will be served upon the person from
31 whom the taxpayer is receiving or will receive money. Such income
32 execution shall continue to be in effect until such liability is satis-
33 fied or until twenty years from the first date a warrant could be filed
34 by the commissioner pursuant to section one hundred seventy-four-b of
35 this article, whether or not a warrant is filed for that liability.
36 2. The provisions of this section shall be in addition to the proce-
37 dures relating to collection or administration provided with respect to
38 any tax or other imposition administered by the commissioner. Where a
39 provision of this section is inconsistent with any such provision with
40 respect to such tax or other imposition, the provisions of this section
41 will apply. Nothing in this section shall prevent the commissioner from
42 timely filing a warrant in order to pursue any of the collection methods
43 authorized under article fifty-two of the civil practice law and rules.
44 3. The commissioner shall periodically, but no less frequently than
45 quarterly, electronically file with the department of state a list of
46 the names of the taxpayers who have been served with income executions
47 under the authority of this section during that period. The commissioner
48 shall also include in this list the names of taxpayers whose income
49 executions are cancelled or discharged during that period. The depart-
50 ment of state shall upon receipt post such a list to their website.
51 § 2. This act shall take effect immediately and shall expire and be
52 deemed repealed on and after April 1, 2015.
53 PART R
54 Intentionally omitted
S. 2609--D 68 A. 3009--D
1 PART S
2 Intentionally omitted
3 PART T
4 Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
5 sion b of section 1612 of the tax law, as amended by section 6 of part K
6 of chapter 57 of the laws of 2010, is amended to read as follows:
7 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
8 agraph, when a vendor track, is located in Sullivan county and within
9 sixty miles from any gaming facility in a contiguous state such vendor
10 fee shall, for a period of [five] six years commencing April first, two
11 thousand eight, be at a rate of forty-one percent of the total revenue
12 wagered at the vendor track after payout for prizes pursuant to this
13 chapter, after which time such rate shall be as for all tracks in clause
14 (C) of this subparagraph.
15 § 2. This act shall take effect immediately and shall be deemed to
16 have been in full force and effect on and after April 1, 2013.
17 PART U
18 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
19 racing, pari-mutuel wagering and breeding law, as amended by section 1
20 of part O of chapter 59 of the laws of 2012, is amended to read as
21 follows:
22 (a) Any racing association or corporation or regional off-track
23 betting corporation, authorized to conduct pari-mutuel wagering under
24 this chapter, desiring to display the simulcast of horse races on which
25 pari-mutuel betting shall be permitted in the manner and subject to the
26 conditions provided for in this article may apply to the board for a
27 license so to do. Applications for licenses shall be in such form as may
28 be prescribed by the board and shall contain such information or other
29 material or evidence as the board may require. No license shall be
30 issued by the board authorizing the simulcast transmission of thorough-
31 bred races from a track located in Suffolk county. The fee for such
32 licenses shall be five hundred dollars per simulcast facility per year
33 payable by the licensee to the board for deposit into the general fund.
34 Except as provided herein, the board shall not approve any application
35 to conduct simulcasting into individual or group residences, homes or
36 other areas for the purposes of or in connection with pari-mutuel wager-
37 ing. The board may approve simulcasting into residences, homes or other
38 areas to be conducted jointly by one or more regional off-track betting
39 corporations and one or more of the following: a franchised corporation,
40 thoroughbred racing corporation or a harness racing corporation or asso-
41 ciation; provided (i) the simulcasting consists only of those races on
42 which pari-mutuel betting is authorized by this chapter at one or more
43 simulcast facilities for each of the contracting off-track betting
44 corporations which shall include wagers made in accordance with section
45 one thousand fifteen, one thousand sixteen and one thousand seventeen of
46 this article; provided further that the contract provisions or other
47 simulcast arrangements for such simulcast facility shall be no less
48 favorable than those in effect on January first, two thousand five; (ii)
49 that each off-track betting corporation having within its geographic
50 boundaries such residences, homes or other areas technically capable of
51 receiving the simulcast signal shall be a contracting party; (iii) the
S. 2609--D 69 A. 3009--D
1 distribution of revenues shall be subject to contractual agreement of
2 the parties except that statutory payments to non-contracting parties,
3 if any, may not be reduced; provided, however, that nothing herein to
4 the contrary shall prevent a track from televising its races on an
5 irregular basis primarily for promotional or marketing purposes as found
6 by the board. For purposes of this paragraph, the provisions of section
7 one thousand thirteen of this article shall not apply. Any agreement
8 authorizing an in-home simulcasting experiment commencing prior to May
9 fifteenth, nineteen hundred ninety-five, may, and all its terms, be
10 extended until June thirtieth, two thousand [thirteen] fourteen;
11 provided, however, that any party to such agreement may elect to termi-
12 nate such agreement upon conveying written notice to all other parties
13 of such agreement at least forty-five days prior to the effective date
14 of the termination, via registered mail. Any party to an agreement
15 receiving such notice of an intent to terminate, may request the board
16 to mediate between the parties new terms and conditions in a replacement
17 agreement between the parties as will permit continuation of an in-home
18 experiment until June thirtieth, two thousand [thirteen] fourteen; and
19 (iv) no in-home simulcasting in the thoroughbred special betting
20 district shall occur without the approval of the regional thoroughbred
21 track.
22 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
23 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
24 section 2 of part O of chapter 59 of the laws of 2012, is amended to
25 read as follows:
26 (iii) Of the sums retained by a receiving track located in Westchester
27 county on races received from a franchised corporation, for the period
28 commencing January first, two thousand eight and continuing through June
29 thirtieth, two thousand [thirteen] fourteen, the amount used exclusively
30 for purses to be awarded at races conducted by such receiving track
31 shall be computed as follows: of the sums so retained, two and one-half
32 percent of the total pools. Such amount shall be increased or decreased
33 in the amount of fifty percent of the difference in total commissions
34 determined by comparing the total commissions available after July twen-
35 ty-first, nineteen hundred ninety-five to the total commissions that
36 would have been available to such track prior to July twenty-first,
37 nineteen hundred ninety-five.
38 § 3. The opening paragraph of subdivision 1 of section 1014 of the
39 racing, pari-mutuel wagering and breeding law, as amended by section 3
40 of part O of chapter 59 of the laws of 2012, is amended to read as
41 follows:
42 The provisions of this section shall govern the simulcasting of races
43 conducted at thoroughbred tracks located in another state or country on
44 any day during which a franchised corporation is conducting a race meet-
45 ing in Saratoga county at Saratoga thoroughbred racetrack until June
46 thirtieth, two thousand [thirteen] fourteen and on any day regardless of
47 whether or not a franchised corporation is conducting a race meeting in
48 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
49 two thousand [thirteen] fourteen. On any day on which a franchised
50 corporation has not scheduled a racing program but a thoroughbred racing
51 corporation located within the state is conducting racing, every off-
52 track betting corporation branch office and every simulcasting facility
53 licensed in accordance with section one thousand seven (that have
54 entered into a written agreement with such facility's representative
55 horsemen's organization, as approved by the board), one thousand eight,
56 or one thousand nine of this article shall be authorized to accept
S. 2609--D 70 A. 3009--D
1 wagers and display the live simulcast signal from thoroughbred tracks
2 located in another state or foreign country subject to the following
3 provisions:
4 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
5 and breeding law, as amended by section 4 of part O of chapter 59 of the
6 laws of 2012, is amended to read as follows:
7 1. The provisions of this section shall govern the simulcasting of
8 races conducted at harness tracks located in another state or country
9 during the period July first, nineteen hundred ninety-four through June
10 thirtieth, two thousand [thirteen] fourteen. This section shall super-
11 sede all inconsistent provisions of this chapter.
12 § 5. The opening paragraph of subdivision 1 of section 1016 of the
13 racing, pari-mutuel wagering and breeding law, as amended by section 5
14 of part O of chapter 59 of the laws of 2012, is amended to read as
15 follows:
16 The provisions of this section shall govern the simulcasting of races
17 conducted at thoroughbred tracks located in another state or country on
18 any day during which a franchised corporation is not conducting a race
19 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
20 thirtieth, two thousand [thirteen] fourteen. Every off-track betting
21 corporation branch office and every simulcasting facility licensed in
22 accordance with section one thousand seven that have entered into a
23 written agreement with such facility's representative horsemen's organ-
24 ization as approved by the board, one thousand eight or one thousand
25 nine of this article shall be authorized to accept wagers and display
26 the live full-card simulcast signal of thoroughbred tracks (which may
27 include quarter horse or mixed meetings provided that all such wagering
28 on such races shall be construed to be thoroughbred races) located in
29 another state or foreign country, subject to the following provisions;
30 provided, however, no such written agreement shall be required of a
31 franchised corporation licensed in accordance with section one thousand
32 seven of this article:
33 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel
34 wagering and breeding law, as amended by section 6 of part O of chapter
35 59 of the laws of 2012, is amended to read as follows:
36 Notwithstanding any other provision of this chapter, for the period
37 July twenty-fifth, two thousand one through September eighth, two thou-
38 sand [twelve] thirteen, when a franchised corporation is conducting a
39 race meeting within the state at Saratoga Race Course, every off-track
40 betting corporation branch office and every simulcasting facility
41 licensed in accordance with section one thousand seven (that has entered
42 into a written agreement with such facility's representative horsemen's
43 organization as approved by the board), one thousand eight or one thou-
44 sand nine of this article shall be authorized to accept wagers and
45 display the live simulcast signal from thoroughbred tracks located in
46 another state, provided that such facility shall accept wagers on races
47 run at all in-state thoroughbred tracks which are conducting racing
48 programs subject to the following provisions; provided, however, no such
49 written agreement shall be required of a franchised corporation licensed
50 in accordance with section one thousand seven of this article.
51 § 7. Section 32 of chapter 281 of the laws of 1994, amending the
52 racing, pari-mutuel wagering and breeding law and other laws relating
53 to simulcasting, as amended by section 7 of part O of chapter 59 of the
54 laws of 2012, is amended to read as follows:
55 § 32. This act shall take effect immediately and the pari-mutuel tax
56 reductions in section six of this act shall expire and be deemed
S. 2609--D 71 A. 3009--D
1 repealed on July 1, [2013] 2014; provided, however, that nothing
2 contained herein shall be deemed to affect the application, qualifica-
3 tion, expiration, or repeal of any provision of law amended by any
4 section of this act, and such provisions shall be applied or qualified
5 or shall expire or be deemed repealed in the same manner, to the same
6 extent and on the same date as the case may be as otherwise provided by
7 law; provided further, however, that sections twenty-three and twenty-
8 five of this act shall remain in full force and effect only until May 1,
9 1997 and at such time shall be deemed to be repealed.
10 § 8. Section 54 of chapter 346 of the laws of 1990, amending the
11 racing, pari-mutuel wagering and breeding law and other laws relating to
12 simulcasting and the imposition of certain taxes, as amended by section
13 8 of part O of chapter 59 of the laws of 2012, is amended to read as
14 follows:
15 § 54. This act shall take effect immediately; provided, however,
16 sections three through twelve of this act shall take effect on January
17 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
18 ing law, as added by section thirty-eight of this act, shall expire and
19 be deemed repealed on July 1, [2013] 2014; and section eighteen of this
20 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
21 two of this act shall take effect as of the same date as chapter 772 of
22 the laws of 1989 took effect.
23 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
24 pari-mutuel wagering and breeding law, as amended by section 9 of part O
25 of chapter 59 of the laws of 2012, is amended to read as follows:
26 (a) The franchised corporation authorized under this chapter to
27 conduct pari-mutuel betting at a race meeting or races run thereat shall
28 distribute all sums deposited in any pari-mutuel pool to the holders of
29 winning tickets therein, provided such tickets be presented for payment
30 before April first of the year following the year of their purchase,
31 less an amount which shall be established and retained by such fran-
32 chised corporation of between twelve to seventeen per centum of the
33 total deposits in pools resulting from on-track regular bets, and four-
34 teen to twenty-one per centum of the total deposits in pools resulting
35 from on-track multiple bets and fifteen to twenty-five per centum of the
36 total deposits in pools resulting from on-track exotic bets and fifteen
37 to thirty-six per centum of the total deposits in pools resulting from
38 on-track super exotic bets, plus the breaks. The retention rate to be
39 established is subject to the prior approval of the racing and wagering
40 board. Such rate may not be changed more than once per calendar quarter
41 to be effective on the first day of the calendar quarter. "Exotic bets"
42 and "multiple bets" shall have the meanings set forth in section five
43 hundred nineteen of this chapter. "Super exotic bets" shall have the
44 meaning set forth in section three hundred one of this chapter. For
45 purposes of this section, a "pick six bet" shall mean a single bet or
46 wager on the outcomes of six races. The breaks are hereby defined as the
47 odd cents over any multiple of five for payoffs greater than one dollar
48 five cents but less than five dollars, over any multiple of ten for
49 payoffs greater than five dollars but less than twenty-five dollars,
50 over any multiple of twenty-five for payoffs greater than twenty-five
51 dollars but less than two hundred fifty dollars, or over any multiple of
52 fifty for payoffs over two hundred fifty dollars. Out of the amount so
53 retained there shall be paid by such franchised corporation to the
54 commissioner of taxation and finance, as a reasonable tax by the state
55 for the privilege of conducting pari-mutuel betting on the races run at
56 the race meetings held by such franchised corporation, the following
S. 2609--D 72 A. 3009--D
1 percentages of the total pool for regular and multiple bets five per
2 centum of regular bets and four per centum of multiple bets plus twenty
3 per centum of the breaks; for exotic wagers seven and one-half per
4 centum plus twenty per centum of the breaks, and for super exotic bets
5 seven and one-half per centum plus fifty per centum of the breaks. For
6 the period June first, nineteen hundred ninety-five through September
7 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
8 three per centum and such tax on multiple wagers shall be two and one-
9 half per centum, plus twenty per centum of the breaks. For the period
10 September tenth, nineteen hundred ninety-nine through March thirty-
11 first, two thousand one, such tax on all wagers shall be two and six-
12 tenths per centum and for the period April first, two thousand one
13 through December thirty-first, two thousand [thirteen] fourteen, such
14 tax on all wagers shall be one and six-tenths per centum, plus, in each
15 such period, twenty per centum of the breaks. Payment to the New York
16 state thoroughbred breeding and development fund by such franchised
17 corporation shall be one-half of one per centum of total daily on-track
18 pari-mutuel pools resulting from regular, multiple and exotic bets and
19 three per centum of super exotic bets provided, however, that for the
20 period September tenth, nineteen hundred ninety-nine through March thir-
21 ty-first, two thousand one, such payment shall be six-tenths of one per
22 centum of regular, multiple and exotic pools and for the period April
23 first, two thousand one through December thirty-first, two thousand
24 [thirteen] fourteen, such payment shall be seven-tenths of one per
25 centum of such pools.
26 § 10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
27 ing and breeding law, as amended by section 10 of part O of chapter 59
28 of the laws of 2012, is amended to read as follows:
29 5. The provisions of this section shall expire and be of no further
30 force and effect after June thirtieth, two thousand [thirteen] fourteen.
31 § 11. This act shall take effect immediately.
32 PART V
33 Section 1. Subparagraphs (A) and (B) of paragraph 2 of subsection (pp)
34 of section 606 of the tax law, as amended by chapter 472 of the laws of
35 2010, are amended to read as follows:
36 (A) With respect to any particular residence of a taxpayer, the credit
37 allowed under paragraph one of this subsection shall not exceed fifty
38 thousand dollars for taxable years beginning on or after January first,
39 two thousand ten and before January first, two thousand [fifteen] twenty
40 and twenty-five thousand dollars for taxable years beginning on or after
41 January first, two thousand [fifteen] twenty. In the case of a husband
42 and wife, the amount of the credit shall be divided between them equally
43 or in such other manner as they may both elect. If a taxpayer incurs
44 qualified rehabilitation expenditures in relation to more than one resi-
45 dence in the same year, the total amount of credit allowed under para-
46 graph one of this subsection for all such expenditures shall not exceed
47 fifty thousand dollars for taxable years beginning on or after January
48 first, two thousand ten and before January first, two thousand [fifteen]
49 twenty and twenty-five thousand dollars for taxable years beginning on
50 or after January first, two thousand [fifteen] twenty.
51 (B) For taxable years beginning on or after January first, two thou-
52 sand ten and before January first, two thousand [fifteen] twenty, if the
53 amount of credit allowable under this subsection shall exceed the
54 taxpayer's tax for such year, and the taxpayer's New York adjusted gross
S. 2609--D 73 A. 3009--D
1 income for such year does not exceed sixty thousand dollars, the excess
2 shall be treated as an overpayment of tax to be credited or refunded in
3 accordance with the provisions of section six hundred eighty-six of this
4 article, provided, however, that no interest shall be paid thereon. If
5 the taxpayer's New York adjusted gross income for such year exceeds
6 sixty thousand dollars, the excess credit that may be carried over to
7 the following year or years and may be deducted from the taxpayer's tax
8 for such year or years. For taxable years beginning on or after January
9 first, two thousand [fifteen] twenty, if the amount of credit allowable
10 under this subsection shall exceed the taxpayer's tax for such year, the
11 excess may be carried over to the following year or years and may be
12 deducted from the taxpayer's tax for such year or years.
13 § 2. This act shall take effect immediately.
14 PART W
15 Section 1. Subdivision 13 of section 282 of the tax law, as added by
16 chapter 276 of the laws of 1986, is amended to read as follows:
17 13. "Terminal" means a motor fuel or Diesel motor fuel storage facili-
18 ty with a storage capacity of fifty thousand gallons or more excluding
19 such facility at which motor fuel or Diesel motor fuel is stored solely
20 for its retail sale at such facility. "Terminal operator" means any
21 person who or which has the use of or control over, or the right to so
22 use or control, a terminal.
23 § 2. Subdivision 1 of section 282-a of the tax law, as amended by
24 chapter 2 of the laws of 1995, is amended to read as follows:
25 1. There is hereby levied and imposed with respect to Diesel motor
26 fuel an excise tax of four cents per gallon upon the sale or use of
27 Diesel motor fuel in this state.
28 The excise tax is imposed on the first sale or use of Diesel motor
29 fuel to occur which is not exempt from tax under this article. Provided,
30 however, if the tax has not been imposed prior thereto, it shall be
31 imposed on the removal of highway Diesel motor fuel from a terminal,
32 other than by pipeline, barge, tanker or other vessel, or the delivery
33 of Diesel motor fuel to a filling station or into the fuel tank connect-
34 ing with the engine of a motor vehicle for use in the operation thereof
35 whichever event shall be first to occur. The tax shall be computed based
36 upon the number of gallons of Diesel motor fuel sold, removed or used or
37 the number of gallons of Diesel fuel delivered into the fuel tank of a
38 motor vehicle, as the case may be. Nothing in this article shall be
39 construed to require the payment of such excise tax more than once upon
40 the same Diesel motor fuel. Nor shall the collection of such tax be made
41 applicable to the sale or use of Diesel motor fuel under circumstances
42 which preclude the collection of such tax by reason of the United States
43 constitution and of laws of the United States enacted pursuant thereto.
44 Provided, further, no Diesel motor fuel shall be included in the measure
45 of the tax unless it shall have previously come to rest within the mean-
46 ing of federal decisional law interpreting the United States constitu-
47 tion. All tax for the period for which a return is required to be filed
48 shall be due on the date limited for the filing of the return for such
49 period, regardless of whether a return is filed as required by this
50 article or whether the return which is filed correctly shows the amount
51 of tax due.
52 § 3. Paragraph (b) of subdivision 3 of section 282-a of the tax law,
53 as amended by section 2 of part E of chapter 59 of the laws of 2012, is
54 amended to read as follows:
S. 2609--D 74 A. 3009--D
1 (b) The tax on the incidence of sale or use imposed by subdivision one
2 of this section shall not apply to: (i) the sale or use of non-highway
3 Diesel motor fuel, but only if all of such fuel is consumed other than
4 on the public highways of this state (except for the use of the public
5 highway by farmers to reach adjacent farmlands); provided, however, this
6 exemption shall in no event apply to a sale of non-highway Diesel motor
7 fuel which involves a delivery at a filling station or into a repository
8 which is equipped with a hose or other apparatus by which such fuel can
9 be dispensed into the fuel tank of a motor vehicle (except for delivery
10 at a farm site which qualifies for the exemption under subdivision (g)
11 of section three hundred one-b of this chapter); or (ii) a sale to the
12 consumer consisting of not more than twenty gallons of water-white kero-
13 sene to be used and consumed exclusively for heating purposes; or (iii)
14 the sale to or delivery at a filling station or other retail vendor of
15 water-white kerosene provided such filling station or other retail
16 vendor only sells such water-white kerosene exclusively for heating
17 purposes in containers of no more than twenty gallons; or (iv) a sale of
18 kero-jet fuel to an airline for use in its airplanes or a use of kero-
19 jet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
20 by a registered distributor of Diesel motor fuel to a fixed base opera-
21 tor registered under this article as a distributor of kero-jet fuel only
22 where such fixed base operator is engaged solely in making or offering
23 to make retail sales not in bulk of kero-jet fuel directly into the fuel
24 tank of an airplane for the purpose of operating such airplane; or (vi)
25 a retail sale not in bulk of kero-jet fuel by a fixed base operator
26 registered under this article as a distributor of kero-jet fuel only
27 where such fuel is delivered directly into the fuel tank of an airplane
28 for use in the operation of such airplane; or (vii) the sale of previ-
29 ously untaxed qualified biodiesel to a person registered under this
30 article as a distributor of Diesel motor fuel other than (A) a retail
31 sale to such person or (B) a sale to such person which involves a deliv-
32 ery at a filling station or into a repository which is equipped with a
33 hose or other apparatus by which such qualified biodiesel can be
34 dispensed into the fuel tank of a motor vehicle; or (viii) the sale of
35 previously untaxed highway Diesel motor fuel by a person registered
36 under this article as a distributor of Diesel motor fuel to a person
37 registered under this article as a distributor of Diesel motor fuel
38 where the highway Diesel motor fuel is either: (A) being delivered by
39 pipeline, railcar, barge, tanker or other vessel to a terminal, the
40 operator of which terminal is registered under section two hundred
41 eighty-three-b of this article, or (B) within such a terminal where it
42 has been so delivered. Provided, however, that the exemption set forth
43 in this subparagraph shall not apply to any highway Diesel motor fuel if
44 it is removed from a terminal, other than by pipeline, barge, tanker or
45 other vessel.
46 § 4. Subdivision 5 of section 282-a of the tax law, as amended by
47 section 5 of part K of chapter 61 of the laws of 2011, is amended to
48 read as follows:
49 5. All the provisions of this article relating to the administration
50 and collection of the taxes on motor fuel, except [sections] section two
51 hundred eighty-three-a [and two hundred eighty-three-b] of this article,
52 shall be applicable to the tax imposed by this section with such limita-
53 tion as specifically provided for in this article with respect to Diesel
54 motor fuel and with such modification as may be necessary to adapt the
55 language of such provisions to the tax imposed by this section. With
56 respect to the bond or other security required by subdivision three of
S. 2609--D 75 A. 3009--D
1 section two hundred eighty-three of this article, the commissioner, in
2 determining the amount of bond or other security required for the
3 purpose of securing tax payments, shall take into account the volume of
4 non-highway Diesel motor fuel and other Diesel motor fuel sold for
5 exempt purposes by a distributor of Diesel motor fuel during prior peri-
6 ods as a factor reducing potential tax liability along with any other
7 relevant factors in determining the amount of security required. With
8 respect to the bond required to be filed prior to registration as a
9 Diesel motor fuel distributor, no bond shall be required of an applicant
10 upon a finding of the applicant's fiscal responsibility, as reflected by
11 such factors as net worth, current assets and liabilities, and tax
12 reporting and payment history, and the department shall not provide for
13 a minimum bond of every applicant.
14 § 5. Section 300 of the tax law is amended by adding a new subdivision
15 (s) to read as follows:
16 (s) The term "terminal" shall have the same meaning as in subdivision
17 thirteen of section two hundred eighty-two of this chapter.
18 § 6. Subparagraph (A) of paragraph 1 of subdivision (c) of section
19 301-a of the tax law, as amended by section 19 of part K of chapter 61
20 of the laws of 2011, is amended to read as follows:
21 (A) The highway diesel motor fuel component shall be determined by
22 multiplying the motor fuel and highway diesel motor fuel rate times (1)
23 the number of gallons of highway diesel motor fuel sold or used by a
24 petroleum business in this state during the month covered by the return
25 under this article and (2) with respect to any gallonage which prior
26 thereto has not been included in the measure of the tax imposed by this
27 article, times the number of gallons of highway diesel motor fuel
28 [delivered] (i) removed from a terminal, other than by pipeline, barge,
29 tanker or other vessel, (ii) delivered to a filling station or [(ii)],
30 (iii) delivered into the fuel tank connecting with the engine of a motor
31 vehicle for use in the operation thereof, whichever of the latter [two]
32 three events shall be the first to occur. Provided, however, that no
33 highway diesel motor fuel shall be included in the measure of the tax
34 unless it shall have previously come to rest within the meaning of
35 federal decisional law interpreting the United States constitution, nor
36 decisional law, nor shall any highway diesel motor fuel be included in
37 the measure of the tax imposed by this article more than once.
38 § 7. Subdivision (e) of section 301-b of the tax law, as amended by
39 section 4 of part E of chapter 59 of the laws of 2012, is amended to
40 read as follows:
41 (e) Sales of highway diesel motor fuel, qualified biodiesel, non-high-
42 way diesel motor fuel and residual petroleum product to registered
43 distributors of diesel motor fuel and registered residual petroleum
44 product businesses.
45 (1) The sale of previously untaxed highway diesel motor fuel by a
46 person registered under article twelve-A of this chapter as a distribu-
47 tor of diesel motor fuel to a person registered under such article
48 twelve-A as a distributor of diesel motor fuel where the highway diesel
49 motor fuel is either: (A) being delivered by pipeline, railcar, barge,
50 tanker or other vessel to a terminal, the operator of which terminal is
51 registered under section two hundred eighty-three-b of this chapter, or
52 (B) within such a terminal where it has been so delivered. Provided,
53 however, that the exemption set forth in this paragraph shall not apply
54 to any highway diesel motor fuel if it is removed from a terminal, other
55 than by pipeline, barge, tanker or other vessel.
S. 2609--D 76 A. 3009--D
1 (2) Qualified biodiesel and non-highway [Diesel] diesel motor fuel
2 sold by a person registered under article twelve-A of this chapter as a
3 distributor of diesel motor fuel to a person registered under such arti-
4 cle twelve-A as a distributor of diesel motor fuel where such sale is
5 not a retail sale or a sale that involves a delivery at a filling
6 station or into a repository equipped with a hose or other apparatus by
7 which such qualified biodiesel or non-highway [Diesel] diesel motor fuel
8 can be dispensed into the fuel tank of a motor vehicle.
9 [(2)] (3) Residual petroleum product sold by a person registered under
10 this article as a residual petroleum product business to a person regis-
11 tered under this article as a residual petroleum product business where
12 such sale is not a retail sale. Provided, however, that the commissioner
13 may require such documentary proof to qualify for any exemption provided
14 in this section as the commissioner deems appropriate, including the
15 expansion of any certifications required pursuant to section two hundred
16 eighty-five-a or two hundred eighty-five-b of this chapter to cover the
17 taxes imposed by this article.
18 [(3)] (4) "Qualified biodiesel" means such term as defined in subdivi-
19 sion twenty-three of section two hundred eighty-two of this chapter.
20 § 8. Clause (D) of subparagraph (ii) of paragraph 4 of subdivision (b)
21 of section 1101 of the tax law, as added by chapter 261 of the laws of
22 1988, is amended to read as follows:
23 (D) The terms "filling station", "terminal" and "owner" shall have the
24 same meaning as they have for the purposes of article twelve-A of this
25 chapter.
26 § 9. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
27 amended by section 5 of part E of chapter 59 of the laws of 2012, is
28 amended to read as follows:
29 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
30 on account of the taxes imposed by this article and pursuant to the
31 authority of article twenty-nine of this chapter, a tax upon the sale or
32 use of diesel motor fuel in this state. The tax shall be computed based
33 upon the number of gallons of diesel motor fuel sold or used. Provided,
34 however, if the tax has not been imposed prior thereto, it shall be
35 imposed on the removal of highway diesel motor fuel from a terminal,
36 other than by pipeline, barge, tanker or other vessel, or the delivery
37 of diesel motor fuel to a retail service station. The collection of such
38 tax shall not be made applicable to the sale or use of diesel motor fuel
39 under circumstances which preclude the collection of such tax by reason
40 of the United States constitution and of laws of the United States
41 enacted pursuant thereto. The prepaid tax on diesel motor fuel shall not
42 apply to (i) the sale of [previously untaxed] non-highway Diesel motor
43 fuel to a person registered as a distributor of Diesel motor fuel other
44 than a sale to such person which involves a delivery at a filling
45 station or into a repository which is equipped with a hose or other
46 apparatus by which such fuel can be dispensed into the fuel tank of a
47 motor vehicle[,]; (ii) the sale to or delivery at a filling station or
48 other retail vendor of water-white kerosene provided such filling
49 station or other retail vendor only sells such water-white kerosene
50 exclusively for heating purposes in containers of no more than twenty
51 gallons or to the sale of CNG or hydrogen; [or] (iii) the sale of previ-
52 ously untaxed qualified biodiesel, as defined in subdivision twenty-
53 three of section two hundred eighty-two of this chapter, to a person
54 registered under article twelve-A of this chapter as a distributor of
55 Diesel motor fuel other than (A) a retail sale to such person or (B) a
56 sale to such person which involves a delivery at a filling station or
S. 2609--D 77 A. 3009--D
1 into a repository which is equipped with a hose or other apparatus by
2 which such qualified biodiesel can be dispensed into the fuel tank of a
3 motor vehicle[. "Qualified biodiesel" means such term as defined in
4 subdivision twenty-three of section two hundred eighty-two of this chap-
5 ter]; or (iv) the sale of previously untaxed highway diesel motor fuel
6 by a person registered under article twelve-A of this chapter as a
7 distributor of diesel motor fuel to a person registered under such arti-
8 cle twelve-A as a distributor of diesel motor fuel where the highway
9 diesel motor fuel is either: (A) being delivered by pipeline, railcar,
10 barge, tanker or other vessel to a terminal, the operator of which
11 terminal is registered under section two hundred eighty-three-b of this
12 chapter, or (B) within such a terminal where it has been so delivered.
13 Provided, however, that the exemption set forth in this subparagraph
14 shall not apply to any highway diesel motor fuel if it is removed from a
15 terminal, other than by pipeline, barge, tanker or other vessel.
16 § 10. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
17 as amended by section 6 of part E of chapter 59 of the laws of 2012, is
18 amended to read as follows:
19 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
20 on account of the taxes imposed by this article and pursuant to the
21 authority of article twenty-nine of this chapter, a tax upon the sale or
22 use of diesel motor fuel in this state. The tax shall be computed based
23 upon the number of gallons of diesel motor fuel sold or used. Provided,
24 however, if the tax has not been imposed prior thereto, it shall be
25 imposed on the removal of highway diesel motor fuel from a terminal,
26 other than by pipeline, barge, tanker or other vessel, or the delivery
27 of diesel motor fuel to a retail service station. The collection of such
28 tax shall not be made applicable to the sale or use of diesel motor fuel
29 under circumstances which preclude the collection of such tax by reason
30 of the United States constitution and of laws of the United States
31 enacted pursuant thereto. The prepaid tax on diesel motor fuel shall not
32 apply to (i) the sale of non-highway Diesel motor fuel to a person
33 registered as a distributor of Diesel motor fuel other than a sale to
34 such person which involves a delivery at a filling station or into a
35 repository which is equipped with a hose or other apparatus by which
36 such fuel can be dispensed into the fuel tank of a motor vehicle[,];
37 (ii) the sale to or delivery at a filling station or other retail vendor
38 of water-white kerosene provided such filling station or other retail
39 vendor only sells such water-white kerosene exclusively for heating
40 purposes in containers of no more than twenty gallons; [or] (iii) the
41 sale of previously untaxed qualified biodiesel, as defined in subdivi-
42 sion twenty-three of section two hundred eighty-two of this chapter to a
43 person registered under article twelve-A of this chapter as a distribu-
44 tor of Diesel motor fuel other than (A) a retail sale to such person or
45 (B) a sale to such person which involves a delivery at a filling station
46 or into a repository which is equipped with a hose or other apparatus by
47 which such qualified biodiesel can be dispensed into the fuel tank of a
48 motor vehicle[. "Qualified biodiesel" means such term as defined in
49 subdivision twenty-three of section two hundred eighty-two of this chap-
50 ter]; or (iv) the sale of previously untaxed highway diesel motor fuel
51 by a person registered under article twelve-A of this chapter as a
52 distributor of diesel motor fuel to a person registered under such arti-
53 cle twelve-A as a distributor of diesel motor fuel where the highway
54 diesel motor fuel is either: (A) being delivered by pipeline, railcar,
55 barge, tanker or other vessel to a terminal, the operator of which
56 terminal is registered under section two hundred eighty-three-b of this
S. 2609--D 78 A. 3009--D
1 chapter, or (B) within such a terminal where it has been so delivered.
2 Provided, however, that the exemption set forth in this subparagraph
3 shall not apply to any highway diesel motor fuel once it is removed from
4 a terminal, other than by pipeline, barge, tanker or other vessel.
5 § 11. Section 1812-c of the tax law, as added by chapter 276 of the
6 laws of 1986, is amended to read as follows:
7 § 1812-c. Person not licensed as terminal operator. Any person who,
8 while not licensed as such pursuant to the provisions of article
9 twelve-A of this chapter, operates as a terminal operator as defined in
10 subdivision thirteen of section two hundred eighty-two of this chapter,
11 except where all of the motor fuel or diesel motor fuel stored in the
12 storage facility is solely for such person's own use and consumption,
13 shall be guilty of a class E felony.
14 § 12. This act shall take effect August 1, 2013; provided, however,
15 that the amendments made to paragraph 2 of subdivision (a) of section
16 1102 of the tax law made by section nine of this act shall be subject to
17 the expiration and reversion of such paragraph pursuant to section 19 of
18 part W-1 of chapter 109 of the laws of 2006, as amended, when upon such
19 date the provisions of section ten of this act shall take effect.
20 PART X
21 Section 1. Subdivision 3 of section 504 of the tax law, as amended by
22 chapter 194 of the laws of 1963, is amended to read as follows:
23 3. [Owned and operated] (a) Operated by a farmer or by a person that
24 bears the relationship to such farmer described in paragraph (b) of this
25 subdivision and used exclusively by such farmer or such person in trans-
26 porting [his] such farmer's own agricultural commodities and products,
27 pulpwood or livestock, including the packed, processed, or manufactured
28 products thereof, that were originally grown or raised on [his] such
29 farmer's farm, lands or orchard, or when used to transport supplies and
30 equipment to [his] such farmer's farm or orchard that are consumed and
31 used thereon or when operated by [a] such farmer or such person in
32 transporting farm products from a farm contiguous to [his own] such
33 farmer's farm.
34 (b) The relationship to such farmer as referenced in paragraph (a) of
35 this subdivision, shall include:
36 (i) members of a family, including spouses, ancestors, lineal descend-
37 ants, brothers and sisters (whether by the whole or half blood), and
38 entities related to such a family member as described in subparagraphs
39 (ii) through (iv) of this paragraph;
40 (ii) a shareholder and a corporation more than fifty percent of the
41 value of the outstanding stock of which is owned or controlled directly
42 or indirectly by such shareholder;
43 (iii) a partner and a partnership more than fifty percent of the capi-
44 tal or profits interest in which is owned or controlled directly or
45 indirectly by such partner;
46 (iv) a beneficiary and a trust more than fifty percent of the benefi-
47 cial interest in which is owned or controlled directly or indirectly by
48 such beneficiary;
49 (v) two or more corporations, partnerships, associations, or trusts,
50 or any combination thereof, which are owned or controlled, either
51 directly or indirectly, by the same person, corporation or other entity,
52 or interests; and
53 (vi) a grantor of a trust and such trust.
S. 2609--D 79 A. 3009--D
1 § 2. This act shall take effect on the first day of the first month
2 next occurring 60 days after this act shall have become a law.
3 PART Y
4 Section 1. Subsection (c) of section 612 of the tax law is amended by
5 adding a new paragraph 39 to read as follows:
6 (39) In the case of a taxpayer who is a small business who has busi-
7 ness income and/or farm income as defined in the laws of the United
8 States, an amount equal to three percent of the net items of income,
9 gain, loss and deduction attributable to such business or farm entering
10 into federal adjusted gross income, but not less than zero, for taxable
11 years beginning after two thousand thirteen, an amount equal to three
12 and three-quarters percent of the net items of income, gain, loss and
13 deduction attributable to such business or farm entering into federal
14 adjusted gross income, but not less than zero, for taxable years begin-
15 ning after two thousand fourteen, and an amount equal to five percent of
16 the net items of income, gain, loss and deduction attributable to such
17 business or farm entering into federal adjusted gross income, but not
18 less than zero, for taxable years beginning after two thousand fifteen.
19 For the purposes of this paragraph, the term small business shall mean a
20 sole proprietor or a farm business who employs one or more persons
21 during the taxable year and who has net business income or net farm
22 income of less than two hundred fifty thousand dollars.
23 § 2. Subdivision (c) of section 11-1712 of the administrative code of
24 the city of New York is amended by adding new paragraph 35 to read as
25 follows:
26 (35) In the case of a taxpayer who is a small business who has busi-
27 ness income and/or farm income as defined in the laws of the United
28 States, an amount equal to three percent of the net items of income,
29 gain, loss and deduction attributable to such business or farm entering
30 into federal adjusted gross income, but not less than zero, for taxable
31 years beginning after two thousand thirteen, an amount equal to three
32 and three-quarters percent of the net items of income, gain, loss and
33 deduction attributable to such business or farm entering into federal
34 adjusted gross income, but not less than zero, for taxable years begin-
35 ning after two thousand fourteen, and an amount equal to five percent of
36 the net items of income, gain, loss and deduction attributable to such
37 business or farm entering into federal adjusted gross income, but not
38 less than zero, for taxable years beginning after two thousand fifteen.
39 For the purposes of this paragraph, the term small business shall mean a
40 sole proprietor or a farm business who employs one or more persons
41 during the taxable year and who has net business income or net farm
42 income of less than two hundred fifty thousand dollars.
43 § 3. This act shall take effect immediately.
44 PART Z
45 Section 1. Paragraph (a) of subdivision 1 of section 210 of the tax
46 law is amended by adding a new subparagraph (vii) to read as follows:
47 (vii) For a qualified New York manufacturer, as defined in subpara-
48 graph (vi) of this paragraph, the rate at which the tax is computed in
49 effect for taxable years beginning on or after January first, two thou-
50 sand thirteen and before January first, two thousand fourteen for quali-
51 fied New York manufacturers shall be reduced by nine and two-tenths
52 percent for taxable years commencing on or after January first, two
S. 2609--D 80 A. 3009--D
1 thousand fourteen and before January first, two thousand fifteen, twelve
2 and three-tenths percent for taxable years commencing on or after Janu-
3 ary first, two thousand fifteen and before January first, two thousand
4 sixteen, fifteen and four-tenths percent for taxable years commencing on
5 or after January first, two thousand sixteen and before January first,
6 two thousand eighteen, and twenty-five percent for taxable years begin-
7 ning on or after January first, two thousand eighteen.
8 § 2. Paragraph (b) of subdivision 1 of section 210 of the tax law is
9 amended by adding a new subparagraph 3 to read as follows:
10 (3) For a qualified New York manufacturer, as defined in subparagraph
11 two of this paragraph, the rate at which the tax is computed in effect
12 for taxable years beginning on or after January first, two thousand
13 thirteen and before January first, two thousand fourteen shall be
14 reduced by nine and two-tenths percent for taxable years commencing on
15 or after January first, two thousand fourteen and before January first,
16 two thousand fifteen, twelve and three-tenths percent for taxable years
17 commencing on or after January first, two thousand fifteen and before
18 January first, two thousand sixteen, fifteen and four-tenths percent for
19 taxable years commencing on or after January first, two thousand sixteen
20 and before January first, two thousand eighteen, and twenty-five percent
21 for taxable years beginning on or after January first, two thousand
22 eighteen.
23 § 3. Paragraph (c) of subdivision 1 of section 210 of the tax law is
24 amended by adding a new subparagraph (iii) to read as follows:
25 (iii) For a qualified New York manufacturer, as defined in subpara-
26 graph (vi) of paragraph (a) of this subdivision, the rate at which the
27 tax is computed in effect for taxable years beginning on or after Janu-
28 ary first, two thousand thirteen and before January first, two thousand
29 fourteen for qualified New York manufacturers shall be reduced by nine
30 and two-tenths percent for taxable years commencing on or after January
31 first, two thousand fourteen and before January first, two thousand
32 fifteen, twelve and three-tenths percent for taxable years commencing on
33 or after January first, two thousand fifteen and before January first,
34 two thousand sixteen, fifteen and four-tenths percent for taxable years
35 commencing on or after January first, two thousand sixteen and before
36 January first, two thousand eighteen, and twenty-five percent for taxa-
37 ble years beginning on or after January first, two thousand eighteen.
38 § 4. Paragraph (d) of subdivision 1 of section 210 of the tax law is
39 amended by adding a new subparagraph 6 to read as follows:
40 (6) For a qualified New York manufacturer, as defined in subparagraph
41 (vi) of paragraph (a) of this subdivision, the amounts prescribed in
42 subparagraphs one and four of this paragraph in effect for taxable years
43 beginning on or after January first, two thousand thirteen and before
44 January first, two thousand fourteen for qualified New York manufactur-
45 ers shall be reduced by nine and two-tenths percent for taxable years
46 commencing on or after January first, two thousand fourteen and before
47 January first, two thousand fifteen, twelve and three-tenths percent for
48 taxable years commencing on or after January first, two thousand fifteen
49 and before January first, two thousand sixteen, fifteen and four-tenths
50 percent for taxable years commencing on or after January first, two
51 thousand sixteen and before January first, two thousand eighteen, and
52 twenty-five percent for taxable years beginning on or after January
53 first, two thousand eighteen.
54 § 5. This act shall take effect immediately.
55 PART AA
S. 2609--D 81 A. 3009--D
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 23-a to read as follows:
3 23-a. Hire a vet credit. (a) Allowance of credit. For taxable years
4 beginning on or after January first, two thousand fifteen and before
5 January first, two thousand seventeen, a taxpayer shall be allowed a
6 credit, to be computed as provided in this subdivision, against the tax
7 imposed by this article, for hiring and employing, for not less than one
8 year and for not less than thirty-five hours each week, a qualified
9 veteran within the state. The taxpayer may claim the credit in the year
10 in which the qualified veteran completes one year of employment by the
11 taxpayer. If the taxpayer claims the credit allowed under this subdivi-
12 sion, the taxpayer may not use the hiring of a qualified veteran that is
13 the basis for this credit in the basis of any other credit allowed under
14 this article.
15 (b) Qualified veteran. A qualified veteran is an individual:
16 (1) who served on active duty in the United States army, navy, air
17 force, marine corps, coast guard or the reserves thereof, or who served
18 in active military service of the United States as a member of the army
19 national guard, air national guard, New York guard or New York naval
20 militia; who was released from active duty by general or honorable
21 discharge after September eleventh, two thousand one;
22 (2) who commences employment by the qualified taxpayer on or after
23 January first, two thousand fourteen, and before January first, two
24 thousand sixteen; and
25 (3) who certifies by signed affidavit, under penalty of perjury, that
26 he or she has not been employed for thirty-five or more hours during any
27 week in the one hundred eighty day period immediately prior to his or
28 her employment by the taxpayer.
29 (c) Employer prohibition. An employer shall not discharge an employee
30 and hire a qualifying veteran solely for the purpose of qualifying for
31 this credit.
32 (d) Amount of credit. The amount of the credit shall be ten percent of
33 the total amount of wages paid to the qualified veteran during the
34 veteran's first full year of employment. Provided, however, that, if the
35 qualified veteran is a disabled veteran, as defined in paragraph (b) of
36 subdivision one of section eighty-five of the civil service law, the
37 amount of the credit shall be fifteen percent of the total amount of
38 wages paid to the qualified veteran during the veteran's first full year
39 of employment. The credit allowed pursuant to this subdivision shall not
40 exceed in any taxable year, five thousand dollars for any qualified
41 veteran and fifteen thousand dollars for any qualified veteran who is a
42 disabled veteran.
43 (e) Carryover. The credit allowed under this subdivision for any taxa-
44 ble year shall not reduce the tax due for such year to less than the
45 amount prescribed in paragraph (d) of subdivision one of this section.
46 However, if the amount of credit allowable under this subdivision for
47 any taxable year reduces the tax to such amount, any amount of credit
48 not deductible in such taxable year may be carried over to the following
49 three years and may be deducted from the taxpayer's tax for such year or
50 years.
51 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
52 of the tax law is amended by adding a new clause (xxxv) to read as
53 follows:
54 (xxxv) Hire a vet creditAmount of credit under subdivision
55 under subsection (a-2)twenty-three-a of section two
56 hundred ten or subsection (e-1)
S. 2609--D 82 A. 3009--D
1 of section fourteen hundred
2 fifty-six
3 § 3. Section 606 of the tax law is amended by adding a new subsection
4 (a-2) to read as follows:
5 (a-2) Hire a vet credit. (1) Allowance of credit. For taxable years
6 beginning on or after January first, two thousand fifteen and before
7 January first, two thousand seventeen, a taxpayer shall be allowed a
8 credit, to be computed as provided in this subsection, against the tax
9 imposed by this article, for hiring and employing, for not less than one
10 year and for not less than thirty-five hours each week, a qualified
11 veteran within the state. The taxpayer may claim the credit in the year
12 in which the qualified veteran completes one year of employment by the
13 taxpayer. If the taxpayer claims the credit allowed under this
14 subsection, the taxpayer may not use the hiring of a qualified veteran
15 that is the basis for this credit in the basis of any other credit
16 allowed under this article.
17 (2) Qualified veteran. A qualified veteran is an individual:
18 (A) who served on active duty in the United States army, navy, air
19 force, marine corps, coast guard or the reserves thereof, or who served
20 in active military service of the United States as a member of the army
21 national guard, air national guard, New York guard or New York naval
22 militia; who was released from active duty by general or honorable
23 discharge after September eleventh, two thousand one;
24 (B) who commences employment by the qualified taxpayer on or after
25 January first, two thousand fourteen, and before January first, two
26 thousand sixteen; and
27 (C) who certifies by signed affidavit, under penalty of perjury, that
28 he or she has not been employed for thirty-five or more hours during any
29 week in the one hundred eighty day period immediately prior to his or
30 her employment by the taxpayer.
31 (3) Employer prohibition. An employer shall not discharge an employee
32 and hire a qualifying veteran solely for the purpose of qualifying for
33 this credit.
34 (4) Amount of credit. The amount of the credit shall be ten percent of
35 the total amount of wages paid to he qualified veteran during the veter-
36 an's first full year of employment. Provided, however, that, if the
37 qualified veteran is a disabled veteran, as defined in paragraph (b) of
38 subdivision one of section eighty-five of the civil service law, the
39 amount of the credit shall be fifteen percent of the total amount of
40 wages paid to the qualified veteran during the veteran's first full year
41 of employment. The credit allowed pursuant to this subsection shall not
42 exceed in any taxable year, five thousand dollars for any qualified
43 veteran and fifteen thousand dollars for any qualified veteran who is a
44 disabled veteran.
45 (5) Carryover. If the amount of credit allowable under this subsection
46 for any taxable year exceeds the taxpayer's tax for such year, any
47 amount of credit not deductible in such taxable year may be carried over
48 to the following three years and may be deducted from the taxpayer's tax
49 for such year or years.
50 § 4. Section 1456 of the tax law is amended by adding a new subsection
51 (e-1) to read as follows:
52 (e-1) Hire a vet credit. (1) Allowance of credit. For taxable years
53 beginning on or after January first, two thousand fifteen and before
54 January first, two thousand seventeen, a taxpayer shall be allowed a
55 credit, to be computed as provided in this subsection, against the tax
56 imposed by this article, for hiring and employing, for not less than one
S. 2609--D 83 A. 3009--D
1 year and for not less than thirty-five hours each week, a qualified
2 veteran within the state. The taxpayer may claim the credit in the year
3 in which the qualified veteran completes one year of employment by the
4 taxpayer. If the taxpayer claims the credit allowed under this
5 subsection, the taxpayer may not use the hiring of a qualified veteran
6 that is the basis for this credit in the basis of any other credit
7 allowed in this article.
8 (2) Qualified veteran. A qualified veteran is an individual:
9 (A) who served on active duty in the United States army, navy, air
10 force, marine corps, coast guard or the reserves thereof, or who served
11 in active military service of the United States as a member of the army
12 national guard, air national guard, New York guard or New York naval
13 militia; who was released from active duty by general or honorable
14 discharge after September eleventh, two thousand one;
15 (B) who commences employment by the qualified taxpayer on or after
16 January first, two thousand fourteen, and before January first, two
17 thousand sixteen; and
18 (C) who certifies by signed affidavit, under penalty of perjury, that
19 he or she has not been employed for thirty-five or more hours during any
20 week in the one hundred eighty day period immediately prior to his or
21 her employment by the taxpayer.
22 (3) Employer prohibition. An employer shall not discharge an employee
23 and hire a qualifying veteran solely for the purpose of qualifying for
24 this credit.
25 (4) Amount of credit. The amount of the credit shall be ten percent of
26 the total amount of wages paid to the qualified veteran during the
27 veteran's first full year of employment. Provided, however, that, if the
28 qualified veteran is a disabled veteran, as defined in paragraph (b) of
29 subdivision one of section eighty-five of the civil service law, the
30 amount of the credit shall be fifteen percent of the total amount of
31 wages paid to the qualified veteran during the veteran's first full year
32 of employment. The credit allowed pursuant to this subsection shall not
33 exceed in any taxable year, five thousand dollars for any qualified
34 veteran and fifteen thousand dollars for any qualified veteran who is a
35 disabled veteran.
36 (5) Carryover. The credit allowed under this subsection for any taxa-
37 ble year shall not reduce the tax due for such year to less than the
38 amount prescribed in paragraph three of subsection (b) of section four-
39 teen hundred fifty-five of this article. However, if the amount of cred-
40 it allowable under this subsection for any taxable year reduces the tax
41 to such amount, any amount of credit not deductible in such taxable year
42 may be carried over to the following three years and may be deducted
43 from the taxpayer's tax for such year or years.
44 § 5. Section 1511 of the tax law is amended by adding a new subdivi-
45 sion (g-1) to read as follows:
46 (g-1) Hire a vet credit. (1) Allowance of credit. For taxable years
47 beginning on or after January first, two thousand fifteen and before
48 January first, two thousand seventeen, a taxpayer shall be allowed a
49 credit, to be computed as provided in this subdivision, against the tax
50 imposed by this article, for hiring and employing, for not less than one
51 year and for not less than thirty-five hours each week, a qualified
52 veteran within the state. The taxpayer may claim the credit in the year
53 in which the qualified veteran completes one year of employment by the
54 taxpayer. If the taxpayer claims the credit allowed under this subdivi-
55 sion, the taxpayer may not use the hiring of a qualified veteran that is
S. 2609--D 84 A. 3009--D
1 the basis for this credit in the basis of any other credit allowed under
2 this article.
3 (2) Qualified veteran. A qualified veteran is an individual:
4 (A) who served on active duty in the United States army, navy, air
5 force, marine corps, coast guard or the reserves thereof, or who served
6 in active military service of the United States as a member of the army
7 national guard, air national guard, New York guard or New York naval
8 militia; who was released from active duty by general or honorable
9 discharge after September eleventh, two thousand one;
10 (B) who commences employment by the qualified taxpayer on or after
11 January first, two thousand fourteen, and before January first, two
12 thousand sixteen; and
13 (C) who certifies by signed affidavit, under penalty of perjury, that
14 he or she has not been employed for thirty-five or more hours during any
15 week in the one hundred eighty day period immediately prior to his or
16 her employment by the taxpayer.
17 (3) Employer prohibition. An employer shall not discharge an employee
18 and hire a qualifying veteran solely for the purpose of qualifying for
19 this credit.
20 (4) Amount of credit. The amount of the credit shall be ten percent of
21 the total amount of wages paid to the qualified veteran during the
22 veteran's first full year of employment. Provided, however, that, if the
23 qualified veteran is a disabled veteran, as defined in paragraph (b) of
24 subdivision one of section eighty-five of the civil service law, the
25 amount of the credit shall be fifteen percent of the total amount of
26 wages paid to the qualified veteran during the veteran's first full year
27 of employment. The credit allowed pursuant to this subdivision shall
28 not exceed in any taxable year, five thousand dollars for any qualified
29 veteran and fifteen thousand dollars for any qualified veteran who is a
30 disabled veteran.
31 (5) Carryover. The credit allowed under this subdivision for any taxa-
32 ble year shall not reduce the tax due for such year to less than the
33 amount prescribed in paragraph four of subdivision (a) of section
34 fifteen hundred two of this article or the minimum tax prescribed in
35 section fifteen hundred two-a of this article, whichever is applicable.
36 However, if the amount of credit allowable under this subdivision for
37 any taxable year reduces the tax to such amount, any amount of credit
38 not deductible in such taxable year may be carried over to the following
39 three years and may be deducted from the taxpayer's tax for such year or
40 years.
41 § 6. This act shall take effect immediately.
42 PART BB
43 Section 1. Paragraphs (a) and (b) of subdivision 6 of section 18-a of
44 the public service law, as added by section 4 of part NN of chapter 59
45 of the laws of 2009, are amended to read as follows:
46 (a) Notwithstanding any provision of law to the contrary, and subject
47 to the exceptions provided for in paragraph (b) of this subdivision, for
48 the state fiscal year beginning on April first, two thousand nine and
49 [four] eight state fiscal years thereafter, a temporary annual assess-
50 ment (hereinafter "temporary state energy and utility service conserva-
51 tion assessment") is hereby imposed on public utility companies (includ-
52 ing for the purposes of this subdivision municipalities other than
53 municipalities as defined in section eighty-nine-l of this chapter),
54 corporations (including for purposes of this subdivision the Long Island
S. 2609--D 85 A. 3009--D
1 power authority), and persons subject to the commission's regulation
2 (hereinafter such public utility companies, corporations, and persons
3 are referred to collectively as the "utility entities") to encourage the
4 conservation of energy and other resources provided through utility
5 entities, to be assessed in the manner provided in this subdivision;
6 provided, however, that such assessment shall not be imposed upon tele-
7 phone corporations as defined in subdivision seventeen of section two of
8 this article.
9 (b) The temporary state energy and utility service conservation
10 assessment shall be [equal to two] based upon the following percentum of
11 the utility entity's gross operating revenues derived from intrastate
12 utility operations in the last preceding calendar year, minus the
13 amount, if any, that such utility entity is assessed pursuant to subdi-
14 visions one and two of this section for the corresponding state fiscal
15 year period: (1) two percentum for the state fiscal year beginning April
16 first, two thousand thirteen and the state fiscal year beginning April
17 first, two thousand fourteen; (2) one and three-quarters percentum for
18 the state fiscal year beginning April first, two thousand fifteen; and
19 (3) one and one-half percentum for the state fiscal year beginning April
20 first, two thousand sixteen. With respect to the temporary state energy
21 and utility service conservation assessment to be paid for the state
22 fiscal year beginning April first, two thousand seventeen and notwith-
23 standing clause (i) of paragraph (d) of this subdivision, on or before
24 March tenth, two thousand seventeen, utility entities shall make a
25 payment equal to one-half of the assessment paid by such entities pursu-
26 ant to this paragraph for the state fiscal year beginning on April
27 first, two thousand sixteen. With respect to the Long Island power
28 authority, the temporary state energy and utility service conservation
29 assessment shall be [equal to one] based upon the following percentum of
30 such authority's gross operating revenues derived from intrastate utili-
31 ty operations in the last preceding calendar year: (1) one percentum for
32 the state fiscal year beginning April first, two thousand thirteen and
33 the state fiscal year beginning April first, two thousand fourteen; (2)
34 three-quarters of one percentum for the state fiscal year beginning
35 April first, two thousand fifteen; and (3) one-half percentum for the
36 state fiscal year beginning April first, two thousand sixteen. With
37 respect to the temporary state energy and utility service conservation
38 assessment to be paid for the state fiscal year beginning April first,
39 two thousand seventeen and notwithstanding clause (i) of paragraph (d)
40 of this subdivision, on or before March tenth, two thousand seventeen,
41 the Long Island power authority shall make a payment equal to one-half
42 of the assessment it paid for the state fiscal year beginning on April
43 first, two thousand sixteen. No corporation or person subject to the
44 jurisdiction of the commission only with respect to safety, or the power
45 authority of the state of New York, shall be subject to the temporary
46 state energy and utility service conservation assessment provided for
47 under this subdivision. Utility entities whose gross operating revenues
48 from intrastate utility operations are five hundred thousand dollars or
49 less in the preceding calendar year shall not be subject to the tempo-
50 rary state energy and utility service conservation assessment. The mini-
51 mum temporary state energy and utility service conservation assessment
52 to be billed to any utility entity whose gross revenues from intrastate
53 utility operations are in excess of five hundred thousand dollars in the
54 preceding calendar year shall be two hundred dollars.
55 § 2. Section 6 of part NN of chapter 59 of the laws of 2009, amending
56 the public service law relating to financing the operations of the
S. 2609--D 86 A. 3009--D
1 department of public service, the public service commission, department
2 support and energy management services provided by other state agencies,
3 increasing the utility assessment cap and the minimum threshold for
4 collection thereunder, and establishing a temporary state energy and
5 utility service conservation assessment and providing for the collection
6 thereof, is amended to read as follows:
7 § 6. This act shall take effect immediately; provided, however, that
8 subdivision 6 of section 18-a of the public service law, as added by
9 section four of this act shall take effect April 1, 2009 and shall
10 expire and be deemed repealed March 31, [2014] 2017; [and] provided,
11 [further,] that if section four of this act shall become law after April
12 1, 2009, it shall take effect immediately and shall be deemed to have
13 been in full force and effect on and after April 1, 2009; and provided,
14 further, that the provisions of subdivision 6 of section 18-a of the
15 public service law shall continue in effect with regard to all such
16 assessments incurred prior to repeal of this section.
17 § 3. This act shall take effect immediately and shall be deemed to
18 have been in full force and effect on and after April 1, 2013; provided,
19 however, that the amendments to subdivision 6 of section 18-a of the
20 public service law made by section one of this act shall not affect the
21 repeal of such subdivision and shall be deemed to be repealed therewith.
22 PART CC
23 Section 1. Section 606 of the tax law is amended by adding a new
24 subsection (vv) to read as follows:
25 (vv) Family tax relief credit. 1. An individual taxpayer who meets the
26 eligibility standards in paragraph two of this subsection shall be
27 allowed a credit against the taxes imposed by this article of three
28 hundred fifty dollars per return for tax years two thousand fourteen,
29 two thousand fifteen, and two thousand sixteen.
30 2. To be eligible for the credit, the taxpayer (or taxpayers filing
31 joint returns) on the personal income tax return filed for the taxable
32 year two years prior, must have (a) been a resident, (b) claimed one or
33 more dependent children who were under the age of seventeen on the last
34 day of the taxable year, (c) had New York adjusted gross income of at
35 least forty thousand dollars but no greater than three hundred thousand
36 dollars, and (d) had a tax liability as determined under paragraph three
37 of this subsection of greater than or equal to zero.
38 3. For purposes of this subsection, tax liability shall be determined
39 by applying the tax rate calculations in sections six hundred one and
40 six hundred one-a of this part to the taxpayer's taxable income and then
41 subtracting from that amount any other tax credits allowed under this
42 section or section six hundred twenty of this article.
43 4. For each year this credit is allowed, on or before October
44 fifteenth of such year, the commissioner shall determine the taxpayer's
45 eligibility for this credit utilizing the information available to the
46 commissioner on the taxpayer's personal income tax return filed for the
47 taxable year two years prior to the taxable year in which the credit is
48 allowed. For those taxpayers whom the commissioner has determined eligi-
49 ble for this credit, the commissioner shall advance a payment of three
50 hundred fifty dollars. When a taxpayer files his or her return for the
51 taxable year, such taxpayer shall properly reconcile that payment on his
52 or her return.
53 5. If the amount of the credit allowed under this subsection shall
54 exceed the taxpayer's tax for the taxable year, the excess shall be
S. 2609--D 87 A. 3009--D
1 treated as an overpayment of tax to be credited or refunded in accord-
2 ance with the provisions of six hundred eighty-six of this article,
3 provided, however, that no interest shall be paid thereon.
4 § 2. This act shall take effect immediately.
5 PART DD
6 Section 1. Subdivision (b) of section 25-a of the labor law, as added
7 by section 1 of part D of chapter 56 of the laws of 2011, is amended to
8 read as follows:
9 (b) Definitions. (1) The term "qualified employer" means an employer
10 that has been certified by the commissioner to participate in the New
11 York youth works tax credit program and that employs one or more quali-
12 fied employees.
13 (2) The term "qualified employee" means an individual:
14 (i) who is between the age of sixteen and twenty-four;
15 (ii) who resides in a city with a population of [sixty-two] fifty-five
16 thousand or more or a town with a population of four hundred eighty
17 thousand or more;
18 (iii) who is low-income or at-risk, as those terms are defined by the
19 commissioner;
20 (iv) who is unemployed prior to being hired by the qualified employer;
21 and
22 (v) who will be working for the qualified employer in a full-time or
23 part-time position that pays wages that are equivalent to the wages paid
24 for similar jobs, with appropriate adjustments for experience and train-
25 ing, and for which no other employee has been terminated, or where the
26 employer has not otherwise reduced its workforce by involuntary termi-
27 nations with the intention of filling the vacancy by creating a new
28 hire.
29 § 2. Subdivisions (a) and (d) of section 25-a of the labor law, subdi-
30 vision (a) as added by section 1 of part D of chapter 56 of the laws of
31 2011 and subdivision (d) as amended by section 1 of part T of chapter 59
32 of the laws of 2012, are amended to read as follows:
33 (a) The commissioner is authorized to establish and administer the New
34 York youth works tax credit program to provide tax incentives to employ-
35 ers for employing at risk youth in part-time and full-time positions
36 [in]. There will be five distinct pools of tax incentives. Program one
37 will cover tax incentives allocated for two thousand twelve and two
38 thousand thirteen. Program two will cover tax incentives allocated in
39 two thousand fourteen to be used in two thousand fourteen and fifteen.
40 Program three will cover tax incentives allocated in two thousand
41 fifteen to be used in two thousand fifteen and sixteen. Program four
42 will cover tax incentives allocated in two thousand sixteen to be used
43 in two thousand sixteen and seventeen. Program five will cover tax
44 incentives allocated in two thousand seventeen to be used in two thou-
45 sand seventeen and eighteen. The commissioner is authorized to allocate
46 up to twenty-five million dollars of tax credits under [this] program
47 one, six million dollars of tax credits under program two, six million
48 dollars of tax credits under program three, and six million dollars of
49 tax credits under program four, and six million dollars of tax credits
50 under program five.
51 (d) To participate in the New York youth works tax credit program, an
52 employer must submit an application (in a form prescribed by the commis-
53 sioner) to the commissioner after January first, two thousand twelve but
54 no later than November thirtieth, two thousand twelve for program one,
S. 2609--D 88 A. 3009--D
1 after January first, two thousand fourteen but no later than November
2 thirtieth, two thousand fourteen for program two, after January first,
3 two thousand fifteen but no later than November thirtieth, two thousand
4 fifteen for program three, after January first, two thousand sixteen but
5 no later than November thirtieth, two thousand sixteen for program four,
6 and after January first, two thousand seventeen but no later than Novem-
7 ber thirtieth, two thousand seventeen for program five. The qualified
8 employees must start their employment on or after January first, two
9 thousand twelve but no later than December thirty-first, two thousand
10 twelve for program one, on or after January first, two thousand fourteen
11 but no later than December thirty-first, two thousand fourteen for
12 program two, on or after January first, two thousand fifteen but no
13 later than December thirty-first, two thousand fifteen for program
14 three, on or after January first, two thousand sixteen but no later than
15 December thirty-first, two thousand sixteen for program four, and on or
16 after January first, two thousand seventeen but no later than December
17 thirty-first, two thousand seventeen for program five. The commissioner
18 shall establish guidelines and criteria that specify requirements for
19 employers to participate in the program including criteria for certify-
20 ing qualified employees. Any regulations that the commissioner deter-
21 mines are necessary may be adopted on an emergency basis notwithstanding
22 anything to the contrary in section two hundred two of the state admin-
23 istrative procedure act. Such requirements may include the types of
24 industries that the employers are engaged in. The commissioner may give
25 preference to employers that are engaged in demand occupations or indus-
26 tries, or in regional growth sectors, including those identified by the
27 regional economic development councils, such as clean energy, health-
28 care, advanced manufacturing and conservation. In addition, the commis-
29 sioner shall give preference to employers who offer advancement and
30 employee benefit packages to the qualified individuals.
31 § 3. This act shall take effect immediately.
32 PART EE
33 Section 1. The tax law is amended by adding a new section 38 to read
34 as follows:
35 § 38. Minimum wage reimbursement credit. (a) A taxpayer that is an
36 eligible employer or an owner of an eligible employer as defined in
37 subdivision (b) of this section shall be eligible for a credit against
38 the tax imposed under article nine, nine-A, twenty-two, thirty-two or
39 thirty-three of this article, pursuant to the provisions referenced in
40 subdivision (e) of this section.
41 (b) An eligible employer is a corporation (including a New York S
42 corporation), a sole proprietorship, a limited liability company or a
43 partnership. An eligible employee is an individual who is (i) employed
44 by an eligible employer in New York state, (ii) paid at the minimum wage
45 rate as defined in article nineteen of the labor law during the taxable
46 year by the eligible employer, (iii) between the ages of sixteen and
47 nineteen during the period in which he or she is paid at such minimum
48 wage rate by the eligible employer, and (iv) a student during the period
49 in which he or she is paid at such minimum wage rate by the taxpayer.
50 (c) For taxable years beginning on or after January first, two thou-
51 sand fourteen and before January first, two thousand fifteen, the amount
52 of the credit allowed under this section shall be equal to the product
53 of the total number of hours worked during the taxable year by eligible
54 employees for which they were paid at the minimum wage rate as defined
S. 2609--D 89 A. 3009--D
1 in article nineteen of the labor law and seventy five cents. For taxa-
2 ble years beginning on or after January first, two thousand fifteen and
3 before January first, two thousand sixteen, the amount of the credit
4 allowed under this section shall be equal to the product of the total
5 number of hours during the taxable year worked by eligible employees for
6 which they were paid at such minimum wage rate and one dollar and thir-
7 ty-one cents. For taxable years beginning on or after January first,
8 two thousand sixteen and before January first, two thousand nineteen,
9 the amount of the credit allowed under this section shall be equal to
10 the product of the total number of hours during the taxable year worked
11 by eligible employees for which they were paid at such minimum wage rate
12 and one dollar and thirty-five cents. Provided, however, if the federal
13 minimum wage established by federal law pursuant to 29 U.S.C. section
14 206 or its successors is increased above eighty-five percent of the
15 minimum wage in article nineteen of the labor law, the dollar amounts in
16 this subdivision shall be reduced to the difference between the minimum
17 wage in article nineteen of the labor law and the federal minimum wage.
18 Such reduction would take effect on the date that employers are required
19 to pay such federal minimum wage.
20 (d) Employer prohibition. An employer shall not discharge an employee
21 and hire an eligible employee solely for the purpose of qualifying for
22 this credit. An eligible employee who is used as the basis for this
23 credit may not be used as the basis of any other credit allowed under
24 this chapter.
25 (e) Cross references: For application of the credit provided in this
26 section, see the following provisions of this chapter:
27 (1) Article 9: Section 187-s.
28 (2) Article 9-A: Section 210, subdivision 46.
29 (3) Article 22: Section 606, subsection (aaa).
30 (4) Article 32: Section 1456, subsection (z).
31 (5) Article 33: Section 1511, subdivision (cc).
32 § 2. The tax law is amended by adding a new section 187-s to read as
33 follows:
34 § 187-s Minimum wage reimbursement credit. (a) Allowance of credit. A
35 taxpayer shall be allowed a credit, to be computed as provided in
36 section thirty-eight of this chapter against the tax imposed by section
37 one hundred eighty-five of this article.
38 (b) Application of credit. The credit allowed under this section for
39 any taxable year may not reduce the tax due for such year to less than
40 the minimum tax prescribed in subdivision two of section one hundred
41 eighty-five of this article. However, if the amount of credit allowed
42 under this section for any taxable year reduces the tax to such amount,
43 any amount of credit thus not deductible in such taxable year will be
44 treated as an overpayment of tax to be credited or refunded in accord-
45 ance with the provisions of section one thousand eighty-six of this
46 chapter. Provided, however, the provisions of subsection (c) of section
47 one thousand eighty-eight of this chapter notwithstanding, no interest
48 will be paid thereon.
49 § 3. Section 210 of the tax law is amended by adding a new subdivision
50 46 to read as follows:
51 46. Minimum wage reimbursement credit. (a) Allowance of credit. A
52 taxpayer shall be allowed a credit, to be computed as provided in
53 section thirty-eight of this chapter, against the tax imposed by this
54 article.
55 (b) Application of credit. The credit allowed under this subdivision
56 for any taxable year may not reduce the tax due for such year to less
S. 2609--D 90 A. 3009--D
1 than the amount prescribed in paragraph (d) of subdivision one of this
2 section. However, if the amount of credit allowed under this subdivision
3 for any taxable year reduces the tax to such amount, any amount of cred-
4 it thus not deductible in such taxable year will be treated as an over-
5 payment of tax to be credited or refunded in accordance with the
6 provisions of section one thousand eighty-six of this chapter. Provided,
7 however, the provisions of subsection (c) of section one thousand eight-
8 y-eight of this chapter notwithstanding, no interest will be paid there-
9 on.
10 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
11 of the tax law is amended by adding a new clause (xxxv) to read as
12 follows:
13 (xxxv) Minimum wage reimbursementAmount of credit under subdivision
14 credit under subsection (aaa)forty-six of section two hundred
15 ten or subsection (z) of
16 section fourteen hundred
17 fifty-six
18 § 5. Section 606 of the tax law is amended by adding a new subsection
19 (aaa) to read as follows:
20 (aaa) Minimum wage reimbursement credit. (1) A taxpayer shall be
21 allowed a credit, to be computed as provided in section thirty-eight of
22 this chapter, against the tax imposed by this article.
23 (2) Application of credit. If the amount of the credit allowed under
24 this subsection for any taxable year exceeds the taxpayer's tax for such
25 year, the excess will be treated as an overpayment of tax to be credited
26 or refunded in accordance with the provisions of section six hundred
27 eighty-six of this article, provided, however, that no interest will be
28 paid thereon.
29 § 6. Section 1456 of the tax law is amended by adding a new subsection
30 (z) to read as follows:
31 (z) Minimum wage reimbursement credit. (1) Allowance of credit. A
32 taxpayer shall be allowed a credit, to be computed as provided under
33 section thirty-eight of this chapter, against the tax imposed by this
34 article.
35 (2) Application of credit. The credit allowed under this subsection
36 for any taxable year shall not, in the aggregate, reduce the tax due for
37 such year to less than the minimum tax fixed by subsection (b) of
38 section fourteen hundred fifty-five of this article. However, if the
39 amount of credit of such credit allowed under this subsection for any
40 taxable year reduces the tax to such amount, then any amount of credit
41 thus not deductible shall be treated as an overpayment of tax to be
42 credited or refunded in accordance with the provisions of section one
43 thousand eighty-six of this chapter. Provided, however, the provisions
44 of subsection (c) of section one thousand eighty-eight of this chapter
45 notwithstanding, no interest shall be paid thereon.
46 § 7. Section 1511 of the tax law is amended by adding a new subdivi-
47 sion (cc) to read as follows:
48 (cc) Minimum wage reimbursement credit. (1) Allowance of credit. A
49 taxpayer shall be allowed a credit, to be computed as provided under
50 section thirty-eight of this chapter, against the tax imposed by this
51 article.
52 (2) Application of credit. The credit allowed under this subdivision
53 for any taxable year shall not reduce the tax due for such year to less
54 than the minimum tax fixed by paragraph four of subdivision (a) of
55 section fifteen hundred two of this article or by section fifteen
56 hundred two-a of this article, whichever is applicable. However, if the
S. 2609--D 91 A. 3009--D
1 amount of credit allowed under this subdivision for any taxable year
2 reduces the tax to such amount, then any amount of credit thus not
3 deductible in such taxable year shall be treated as an overpayment of
4 tax to be credited or refunded in accordance with the provisions of
5 section one thousand eighty-six of this chapter. Provided, however, the
6 provisions of subsection (c) of section one thousand eighty-eight of
7 this chapter notwithstanding, no interest shall be paid thereon.
8 § 8. This act shall take effect immediately.
9 PART FF
10 Section 1. Paragraph 1 of subsection (a) of section 601 of the tax law
11 as added by section 1 of part A of chapter 56 of the laws of 2011, is
12 amended to read as follows:
13 (1) (A) For taxable years beginning after two thousand eleven and
14 before two thousand [fifteen] eighteen:
15 If the New York taxable income is: The tax is:
16 Not over $16,000 4% of taxable income
17 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
18 $16,000
19 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
20 $22,000
21 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over
22 $26,000
23 Over $40,000 but not over $150,000 $1,946 plus 6.45% of excess over
24 $40,000
25 Over $150,000 but not over $300,000 $9,041 plus 6.65% of excess over
26 $150,000
27 Over $300,000 but not over $2,000,000 $19,016 plus 6.85% of excess over
28 $300,000
29 Over $2,000,000 $135,466 plus 8.82% of excess over
30 $2,000,000
31 (B) For taxable years beginning after two thousand [fourteen] seven-
32 teen, the following brackets and dollar amounts shall apply, as adjusted
33 by the cost of living adjustment prescribed in section six hundred one-a
34 of this part for tax years two thousand thirteen [and two thousand four-
35 teen] through two thousand seventeen:
36 If the New York taxable income is: The tax is:
37 Not over $16,000 4% of taxable income
38 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
39 $16,000
40 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
41 $22,000
42 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over
43 $26,000
44 Over $40,000 $1,946 plus 6.85% of excess over
45 $40,000
46 § 2. Paragraph 1 of subsection (b) of section 601 of the tax law as
47 added by section 3 of part A of chapter 56 of the laws of 2011, is
48 amended to read as follows:
49 (1) (A) For taxable years beginning after two thousand eleven and
50 before two thousand [fifteen] eighteen:
S. 2609--D 92 A. 3009--D
1 If the New York taxable income is: The tax is:
2 Not over $12,000 4% of taxable income
3 Over $12,000 but not over $16,500 $480 plus 4.5% of excess over
4 $12,000
5 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over
6 $16,500
7 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over
8 $19,500
9 Over $30,000 but not over $100,000 $1,460 plus 6.45% of excess over
10 $30,000
11 Over $100,000 but not over $250,000 $5,975 plus 6.65% of excess over
12 $100,000
13 Over $250,000 but not over $1,500,000 $15,950 plus 6.85% of excess over
14 $250,000
15 Over $1,500,000 $101,575 plus 8.82% of excess over
16 $1,500,000
17 (B) For taxable years beginning after two thousand [fourteen] seven-
18 teen, the following brackets and dollars amounts shall apply, as
19 adjusted by the cost of living adjustment prescribed in section six
20 hundred one-a of this part for tax years two thousand thirteen [and two
21 thousand fourteen] through two thousand seventeen:
22 If the New York taxable income is: The tax is:
23 Not over $12,000 4% of taxable income
24 Over $12,000 but not over $16,500 $480 plus 4.5% of excess over
25 $12,000
26 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over
27 $16,500
28 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over
29 $19,500
30 Over $30,000 $1,460 plus 6.85% of excess over
31 $30,000
32 § 3. Paragraph 1 of subsection (c) of section 601 of the tax law as
33 added by section 5 of part A of chapter 56 of the laws of 2011, is
34 amended to read as follows:
35 (1) (A) For taxable years beginning after two thousand eleven and
36 before two thousand [fifteen] eighteen:
37 If the New York taxable income is: The tax is:
38 Not over $8,000 4% of taxable income
39 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
40 $8,000
41 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
42 $11,000
43 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over
44 $13,000
45 Over $20,000 but not over $75,000 $973 plus 6.45% of excess over
46 $20,000
47 Over $75,000 but not over $200,000 $4,521 plus 6.65% of excess over
48 $75,000
49 Over $200,000 but not over $1,000,000 $12,833 plus 6.85% of excess over
50 $200,000
51 Over $1,000,000 $67,633 plus 8.82% of excess over
S. 2609--D 93 A. 3009--D
1 $1,000,000
2 (B) For taxable years beginning after two thousand [fourteen] seven-
3 teen, the following brackets and dollars amounts shall apply, as
4 adjusted by the cost of living adjustment prescribed in section six
5 hundred one-a of this part for tax years two thousand thirteen [and two
6 thousand fourteen] through two thousand seventeen:
7 If the New York taxable income is: The tax is:
8 Not over $8,000 4% of taxable income
9 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
10 $8,000
11 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
12 $11,000
13 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over
14 $13,000
15 Over $20,000 $973 plus 6.85% of excess over
16 $20,000
17 § 4. The opening paragraph of subsection (d-1) of section 601 of the
18 tax law as added by section 7 of part A of chapter 56 of the laws of
19 2011, is amended to read as follows:
20 Alternative tax table benefit recapture. Notwithstanding the
21 provisions of subsection (d) of this section, for taxable years begin-
22 ning after two thousand eleven and before two thousand [fifteen] eigh-
23 teen, there is hereby imposed a supplemental tax in addition to the tax
24 imposed under subsections (a), (b) and (c) of this section for the
25 purpose of recapturing the benefit of the tax tables contained in such
26 subsections. During these taxable years, any reference in this chapter
27 to subsection (d) of this section shall be read as a reference to this
28 subsection.
29 § 5. Subparagraph (D) of paragraph 1 of subsection (d-1) of section
30 601 of the tax law, as added by section 7 of part A of chapter 56 of the
31 laws of 2011, is amended to read as follows:
32 (D) The tax table benefit is the difference between (i) the amount of
33 taxable income set forth in the tax table in paragraph one of subsection
34 (a) of this section not subject to the 8.82 percent rate of tax for the
35 taxable year multiplied by such rate and (ii) the dollar denominated tax
36 for such amount of taxable income set forth in the tax table applicable
37 to the taxable year in paragraph one of subsection (a) of this section
38 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
39 of this paragraph. The fraction for this subparagraph is computed as
40 follows: the numerator is the lesser of fifty thousand dollars or the
41 excess of New York adjusted gross income for the taxable year over two
42 million dollars and the denominator is fifty thousand dollars. This
43 subparagraph shall apply only to taxable years beginning on or after
44 January first, two thousand twelve and before January first, two thou-
45 sand [fifteen] eighteen.
46 § 6. Subparagraph (C) of paragraph 2 of subsection (d-1) of section
47 601 of the tax law, as added by section 7 of part A of chapter 56 of the
48 laws of 2011, is amended to read as follows:
49 (C) The tax table benefit is the difference between (i) the amount of
50 taxable income set forth in the tax table in paragraph one of subsection
51 (b) of this section not subject to the 8.82 percent rate of tax for the
52 taxable year multiplied by such rate and (ii) the dollar denominated tax
53 for such amount of taxable income set forth in the tax table applicable
S. 2609--D 94 A. 3009--D
1 to the taxable year in paragraph one of subsection (b) of this section
2 less the sum of the tax table benefits in subparagraphs (A) and (B) of
3 this paragraph. The fraction for this subparagraph is computed as
4 follows: the numerator is the lesser of fifty thousand dollars or the
5 excess of New York adjusted gross income for the taxable year over one
6 million five hundred thousand dollars and the denominator is fifty thou-
7 sand dollars. This subparagraph shall apply only to taxable years begin-
8 ning on or after January first, two thousand twelve and before January
9 first, two thousand [fifteen] eighteen.
10 § 7. Subparagraph (C) of paragraph 3 of subsection (d-1) of section
11 601 of the tax law, as added by section 7 of part A of chapter 56 of the
12 laws of 2011, is amended to read as follows:
13 (C) The tax table benefit is the difference between (i) the amount of
14 taxable income set forth in the tax table in paragraph one of subsection
15 (b) of this section not subject to the 8.82 percent rate of tax for the
16 taxable year multiplied by such rate and (ii) the dollar denominated tax
17 for such amount of taxable income set forth in the tax table applicable
18 to the taxable year in paragraph one of subsection (b) of this section
19 less the sum of the tax table benefits in subparagraphs (A) and (B) of
20 this paragraph. The fraction for this subparagraph is computed as
21 follows: the numerator is the lesser of fifty thousand dollars or the
22 excess of New York adjusted gross income for the taxable year over one
23 million five hundred thousand dollars and the denominator is fifty thou-
24 sand dollars. This subparagraph shall apply only to taxable years begin-
25 ning on or after January first, two thousand twelve and before January
26 first, two thousand [fifteen] eighteen.
27 § 8. The opening paragraph of subsection (d-2) of section 601 of the
28 tax law, as added by section 8 of part A of chapter 56 of the laws of
29 2011, is amended to read as follows:
30 Tax table benefit recapture for tax years after two thousand [four-
31 teen] seventeen. For taxable years beginning after two thousand [four-
32 teen] seventeen, there is hereby imposed a supplemental tax in addition
33 to the tax imposed under subsections (a), (b) and (c) of this section
34 for the purpose of recapturing the benefit of the tax tables contained
35 in such subsections. The supplemental tax shall be an amount equal to
36 the table benefit in paragraph one of this subsection multiplied by the
37 fraction in such paragraph. [Any] During these taxable years, any refer-
38 ence in this chapter to subsection (d) of this section shall be read as
39 a reference to this subsection.
40 § 9. Subparagraph (B) of paragraph 1 of subsection (d-2) of section
41 601 of the tax law, as added by section 8 of part A of chapter 56 of
42 the laws of 2011, is amended to read as follows:
43 (B) The fraction is computed as follows: the numerator is the lesser
44 of fifty thousand dollars or the excess of New York adjusted gross
45 income for the taxable year over one hundred thousand dollars (as such
46 amount is adjusted by the cost of living adjustment prescribed in
47 section six hundred one-a of this part for tax years two thousand thir-
48 teen [and] through two thousand [fourteen] seventeen) and the denomina-
49 tor is fifty thousand dollars.
50 § 10. Subsection (a) of section 601-a of the tax law, as added by
51 section 9 of part A of chapter 56 of the laws of 2011, is amended to
52 read as follows:
53 (a) For tax year two thousand thirteen, the commissioner, not later
54 than September first, two thousand twelve, shall multiply the amounts
55 specified in subsection (b) of this section for tax year two thousand
56 twelve by one plus the cost of living adjustment described in subsection
S. 2609--D 95 A. 3009--D
1 (c) of this section. For tax year two thousand fourteen, the commission-
2 er, not later than September first, two thousand thirteen, shall multi-
3 ply the amounts specified in subsection (b) of this section for tax year
4 two thousand thirteen by one plus the cost of living adjustment. For
5 each succeeding tax year after tax year two thousand fourteen and before
6 tax year two thousand eighteen, the commissioner, not later than Septem-
7 ber first of such tax year, shall multiply the amounts specified in
8 subsection (b) of this section for such tax year by one plus the cost of
9 living adjustment described in subsection (c) of this section for such
10 tax year.
11 § 11. Subsection (f) of section 614 of the tax law, as added by
12 section 10 of part A of chapter 56 of the laws of 2011, is amended to
13 read as follows:
14 (f) Adjusted standard deduction. For taxable years beginning after two
15 thousand [fourteen] seventeen, the standard deductions set forth in this
16 section shall be the amounts set forth in this section adjusted by the
17 cost of living adjustment prescribed in section six hundred one-a of
18 this part for tax years two thousand thirteen [and two thousand four-
19 teen] through two thousand seventeen.
20 § 12. Section 11 of part A of chapter 56 of the laws of 2011 is
21 amended to read as follows:
22 § 11. Notwithstanding any provision of law to the contrary, the method
23 of determining the amount to be deducted and withheld from wages on
24 account of taxes imposed by or pursuant to the authority of article 22
25 of the tax law in connection with the implementation of the provisions
26 of this act shall be prescribed by regulations of the commissioner of
27 taxation and finance with due consideration to the effect such withhold-
28 ing tables and methods would have on the receipt and amount of revenue.
29 The commissioner of taxation and finance shall adjust such withholding
30 tables and methods in regard to taxable years beginning in 2012 and
31 after in such manner as to result, so far as practicable, in withholding
32 from an employee's wages an amount substantially equivalent to the tax
33 reasonably estimated to be due for such taxable years as a result of the
34 provisions of this act. Any such regulations to implement a change in
35 withholding tables and methods for tax year 2012 shall be adopted and
36 effective as soon as practicable and the commissioner of taxation and
37 finance may adopt such regulations on an emergency basis notwithstanding
38 anything to the contrary in section 202 of the state administrative
39 procedure act. The commissioner of taxation and finance, in carrying out
40 the duties and responsibilities under this section, may accompany such a
41 rule making procedure with a similar procedure with respect to the taxes
42 required to be deducted and withheld by local laws imposing taxes pursu-
43 ant to the authority of articles 30, 30-A and 30-B of the tax law, the
44 provisions of any other law in relation to such a procedure to the
45 contrary notwithstanding. The withholding tables and methods for tax
46 years 2013 [and 2014] through 2017 shall not be prescribed by regu-
47 lation, notwithstanding any provision of the state administrative proce-
48 dure act to the contrary.
49 § 13. Section 11-1714 of the administrative code of the city of New
50 York is amended by adding a new subdivision (f) to read as follows:
51 (f) For taxable years beginning on or after January first, two thou-
52 sand thirteen, the amounts of standard deductions set forth in this
53 section shall be adjusted in the same manner as the amounts of standard
54 deductions set forth in section six hundred fourteen of the tax law.
55 § 14. This act shall take effect immediately.
S. 2609--D 96 A. 3009--D
1 PART GG
2 Section 1. The tax law is amended by adding a new section 630-c to
3 read as follows:
4 § 630-c. Gift for New York state teen health education fund. An indi-
5 vidual in any taxable year may elect to contribute to the teen health
6 education fund for educational programs in schools related to health.
7 The contribution shall be in any whole dollar amount and shall not
8 reduce the amount of state tax owed by such individual. The commissioner
9 shall include space on the personal income tax return to enable a
10 taxpayer to make such contribution. Notwithstanding any other provision
11 of law all revenues collected pursuant to this section shall be credited
12 to the New York state teen health education fund and used only for those
13 purposes enumerated in section ninety-nine-u of the state finance law.
14 § 2. The state finance law is amended by adding a new section 99-u to
15 read as follows:
16 § 99-u. New York state teen health education fund. 1. There is hereby
17 established in the custody of the commissioner of taxation and finance a
18 special account to be known as the "New York state teen health education
19 fund".
20 2. Such fund shall consist of all revenues received by the department
21 of taxation and finance, pursuant to the provisions of section six
22 hundred thirty-c of the tax law and all other moneys appropriated there-
23 to from any other fund or source pursuant to law. Nothing contained in
24 this section shall prevent the state from receiving grants, gifts or
25 bequests for the purposes of the fund as defined in this section and
26 depositing them into the fund according to law.
27 3. The moneys in said account shall be retained by the fund and shall
28 be released by the commissioner of taxation and finance only upon
29 certificates signed by the commissioner of education or his or her
30 designee and only for the purposes set forth in this section.
31 4. The moneys in such fund shall be expended for the purpose of
32 supplementing educational programs in schools for health and awareness
33 of issues facing teens today when it comes to their health. Eligible
34 health programs are those with an established curriculum providing
35 instruction on alcohol, tobacco and other drug abuse prevention, the
36 causes and problems associated with teen obesity, and for awareness of
37 the symptoms of teen endometriosis.
38 § 3. This act shall take effect immediately.
39 PART HH
40 Section 1. Subdivision 11 of section 213 of the state finance law is
41 amended by adding a new paragraph (g) to read as follows:
42 (g) a qualifying technology or innovation business which business
43 employs one hundred or fewer employees within the state on a full-time
44 basis and engages in:
45 (1) biotechnologies, which shall be defined as technologies involving
46 the scientific manipulation of living organisms, especially at the
47 molecular and/or the sub-molecular genetic level, to produce products
48 conducive to improving the lives and health of plants, animals, and
49 humans; and the associated scientific research, pharmacological, mechan-
50 ical, and computational applications and services connected with these
51 improvements;
S. 2609--D 97 A. 3009--D
1 (2) information and communication technologies, equipment and systems
2 that involve advanced computer software and hardware, visualization
3 technologies, and human interface technologies;
4 (3) advanced materials and processing technologies that involve the
5 development, modification, or improvement of one or more materials or
6 methods to produce devices and structures with improved performance
7 characteristics or special functional attributes, or to activate, speed
8 up, or otherwise alter chemical, biochemical, or medical processes;
9 (4) electronic and photonic devices and components for use in produc-
10 ing electronic, optoelectronic, mechanical equipment and products of
11 electronic distribution with interactive media content;
12 (5) energy efficiency, renewable energy and environmental technolo-
13 gies, products, devices and services; or
14 (6) small scale systems integration and packaging.
15 § 2. Paragraph (a) of subdivision 16 of section 213 of the state
16 finance law, as amended by chapter 424 of the laws of 2009, is amended
17 to read as follows:
18 (a) for a linked deposit made in connection with a linked loan to a
19 certified business in an empire zone or to an eligible business located
20 in a highly distressed area or to an eligible business that is defined
21 in paragraph (b-1) of subdivision eleven of this section that is located
22 in a renewal community or defined in paragraph (b-2) of such subdivision
23 that is located in an empowerment zone or defined in paragraph (b-3) of
24 such subdivision that is located in an enterprise community, or a quali-
25 fying technology or innovation business as defined in paragraph (g) of
26 subdivision eleven of this section, respectively for eligible projects
27 defined in paragraph (c) of subdivision twelve of this section or a
28 certified minority- or women-owned business enterprise for an eligible
29 project defined in paragraph (e) of subdivision twelve of this section
30 or to a defense industry manufacturer for a project defined in paragraph
31 (d) of subdivision twelve of this section, a fixed rate of interest
32 which is three hundred basis points below the lender's posted four year
33 certificate of deposit rate or, if the lender does not offer a four year
34 certificate of deposit, is three hundred basis points below the average
35 statewide rate for four year certificates of deposit as determined by
36 the commissioner of economic development;
37 § 3. This act shall take effect immediately.
38 PART II
39 Section 1. Section 16-t of section 1 of chapter 168 of the laws of
40 1974, constituting the New York state urban development corporation act,
41 as added by section 1 of part N of chapter 59 of the laws of 2010, is
42 amended to read as follows:
43 § 16-t. Small business revolving loan fund. 1. The small business
44 revolving loan fund program is hereby created. The corporation is
45 authorized, within available appropriations, to provide low interest
46 loans to community development financial institutions, in order to
47 provide funding for those lending organizations' loans to small busi-
48 nesses, located within New York state, that generate economic growth and
49 job creation within New York state but that are unable to obtain
50 adequate credit or adequate terms for such credit. If in the discretion
51 of the corporation the use of a community development financial institu-
52 tion is not practicable based upon the application of rules and regu-
53 lations developed by the corporation, including, but not limited to,
54 assessments of geographic and administrative capacity, then the corpo-
S. 2609--D 98 A. 3009--D
1 ration is authorized, within available appropriations, to provide low
2 interest loans to the following other local community based lending
3 organizations: small business lending consortia, certified development
4 companies, providers of United States department of agriculture business
5 and industrial guaranteed loans, United States small business adminis-
6 tration loan providers, credit unions and community banks. As used in
7 this section "small business" means a business that is resident in New
8 York state, independently owned and operated, not dominant in its field,
9 and employs one hundred or fewer persons.
10 2. In order for a lending organization to be eligible to receive
11 program funds, it must have established sufficient expertise to analyze
12 small business applications for program loans, evaluate the creditwor-
13 thiness of small businesses, and regularly monitor program loans. The
14 lending organization shall review every program loan application in
15 order to determine, among other things, the feasibility of the proposed
16 use of the requested financing by the small business applicant, the
17 likelihood of repayment and the potential that the loan will generate
18 economic development and jobs within New York state. The corporation
19 shall identify eligible lending organizations through one or more
20 competitive statewide or local solicitations.
21 3. Program loans to small businesses shall be targeted and marketed to
22 minority and women-owned enterprises and other small businesses that are
23 having difficulty accessing traditional credit markets. Program loans to
24 small businesses shall be used for the creation and retention of jobs,
25 as defined by the corporation, including: (a) working capital; (b) the
26 acquisition and/or improvement of real property; (c) the acquisition of
27 machinery and equipment, property or improvement; or (d) the refinancing
28 of debt obligations. There shall be two categories of loans to small
29 businesses: a micro loan that shall have a principal amount that is less
30 than twenty-five thousand dollars and a regular loan that shall have a
31 principal amount not less than twenty-five thousand dollars. Prior to
32 receiving program funds, the lending organization must certify to the
33 corporation that such loan complies with this section and rules and
34 regulations promulgated for the program and that the lending organiza-
35 tion has performed its obligations pursuant to and is in compliance with
36 this section, the program rules and regulations and all agreements
37 entered into between the corporation and the lending organization. The
38 program funds amount used by the lending organization to fund a program
39 applicant loan shall not be more than fifty percent of the principal
40 amount of such loan. The program funds amount used by the lending organ-
41 ization to fund a program applicant loan shall not be greater than one
42 hundred and twenty-five thousand dollars. Minority- and women-owned
43 business enterprises and other small businesses who access such program
44 loans under this subdivision shall not be precluded from accessing such
45 short-term financing loans provided under subdivision eleven of this
46 section.
47 4. Program funds shall not be used for: (a) projects that would result
48 in the relocation of any business operation from one municipality within
49 the state to another, except under one of the following conditions: (i)
50 when a business is relocating within a municipality with a population of
51 at least one million where the governing body of such municipality
52 approves such relocation; or (ii) the lending organization notifies each
53 municipality from which such business operation will be relocated and
54 each municipality agrees to such relocation; (b) projects of newspapers,
55 broadcasting or other news media; medical facilities, libraries, commu-
56 nity or civic centers; or public infrastructure improvements; and (c)
S. 2609--D 99 A. 3009--D
1 providing funds, directly or indirectly, for payment, distribution, or
2 as a loan, to owners, members, partners or shareholders of the applicant
3 business, except as ordinary income for services rendered.
4 5. With respect to its program loans, the lending organization may
5 charge application, commitment and loan guarantee fees pursuant to a
6 schedule of fees adopted by the lending organization and approved by the
7 corporation.
8 6. Program funds shall be disbursed to a lending organization by the
9 corporation in the form of a loan to the lending organization. The term
10 of the loan shall commence upon disbursement of the program funds by the
11 corporation to the lending organization. The loan shall carry a low
12 interest rate determined by the corporation based on then prevailing
13 interest rates and the circumstances of the lending organization.
14 Notwithstanding the performance of the loans made by the lending organ-
15 ization using program funds, the lending organization shall remain
16 liable to the corporation with respect to any unpaid amounts due from
17 the lending organization pursuant to the terms of the corporation's
18 loans to the lending organization. In addition, a portion of program
19 funds may be disbursed to a lending organization in the form of a grant
20 or forgivable loan, provided those funds are used by the lending organ-
21 ization for administrative expenses associated with the fund, loan-loss
22 reserves, or other eligible expenses as determined by the corporation.
23 7. Notwithstanding anything to the contrary in this section, the
24 corporation shall provide at least five hundred thousand dollars in
25 program funds pursuant to this section to lending organizations for the
26 purpose of making loans to small business located in Niagara county.
27 8. Notwithstanding anything to the contrary in this section, the
28 corporation shall provide at least five hundred thousand dollars in
29 program funds pursuant to this section to lending organizations for the
30 purpose of making loans to small business located in St. Lawrence coun-
31 ty.
32 9. Notwithstanding anything to the contrary in this section, the
33 corporation shall provide at least five hundred thousand dollars in
34 program funds pursuant to this section to lending organizations for the
35 purpose of making loans to small business located in Erie county.
36 10. Notwithstanding anything to the contrary in this section, the
37 corporation shall provide at least five hundred thousand dollars in
38 program funds pursuant to this section to lending organizations for the
39 purpose of making loans to small business located in Jefferson county.
40 11. Notwithstanding anything to the contrary in this section, the
41 corporation may provide at least five hundred thousand dollars in
42 program funds pursuant to this section to lending organizations for the
43 purpose of making short-term financing available to minority- and
44 women-owned business enterprises and other small businesses performing
45 contracts to provide construction or professional services for state
46 procurement purposes. Such loans shall be used to underwrite the cost of
47 labor, materials, and equipment directly associated with (1) the
48 contract being financed or (2) a contract that has been satisfied for
49 which the business is awaiting payment from the state. The program funds
50 amount used by the lending organization to fund a program applicant loan
51 shall not be more than eighty percent of the principal amount of such
52 loan. The program funds amount used by the lending organization to fund
53 a program applicant loan shall not be greater than one hundred twenty-
54 five thousand dollars. Minority- and women-owned business enterprises
55 and other small businesses who access such short-term financing loans
S. 2609--D 100 A. 3009--D
1 under this subdivision shall not be precluded from accessing such
2 program loans provided under subdivision three of this section.
3 12. Notwithstanding any provision of law to the contrary, the corpo-
4 ration may establish a program fund for program use and pay into such
5 fund any funds available to the corporation from any source that are
6 eligible for program use, including moneys appropriated by the state.
7 [12.] 13. With respect to a lending organization program loan appli-
8 cants, no person who is a member of the board or other governing body,
9 officer, employee, or member of a loan committee, or a family member of
10 any such lending organization shall participate in any decision on such
11 application if such person is a party to or has a financial or personal
12 interest in such loan. Any person who cannot participate in a loan
13 application decision for such reasons shall not be counted as a member
14 of the loan committee, board or other governing body for purposes of
15 determining the number of members required for approval of such applica-
16 tion.
17 [13.] 14. The lending organization shall submit to the corporation
18 annual reports stating: the number of program loans made; the amount of
19 program funding used for loans; the use of loan proceeds by the borrow-
20 er; the number of jobs created or retained; a description of the econom-
21 ic development generated; the status of each outstanding program loan;
22 and such other information as the corporation may require.
23 [14.] 15. The corporation may conduct audits of the lending organiza-
24 tion in order to ensure compliance with the provisions of this section,
25 any regulations promulgated with respect thereto and agreements between
26 the lending organization and the corporation of all aspects of the use
27 of program funds and program loan transactions. In the event that the
28 corporation finds substantive noncompliance, the corporation may termi-
29 nate the lending organization's participation in the program.
30 [15.] 16. Upon termination of a lending organization's participation
31 in the program, the lending organization shall return to the corpo-
32 ration, promptly after its demand therefor, all program fund proceeds
33 held by the lending organization; and provide to the corporation,
34 promptly after its demand therefor, an accounting of all program funds
35 received by the lending organization, including all currently outstand-
36 ing loans that were made using program funds. Notwithstanding such
37 termination, the lending organization shall remain liable to the corpo-
38 ration with respect to any unpaid amounts due from the lending organiza-
39 tion pursuant to the terms of the corporation's loans to the lending
40 organization.
41 § 2. This act shall take effect immediately.
42 PART JJ
43 Section 1. Legislative findings and purposes. It is hereby found that
44 there exists in the state a need to attract private sector investment in
45 new research and in the translation of the products of that research
46 into marketable products.
47 It is hereby further found that the need for this investment is demon-
48 strated by the fact that, while New York state universities rank second
49 nationally in total research spending, the state attracts a dispropor-
50 tionately low share of the nation's venture capital investment.
51 § 2. The New York state innovation venture capital fund. In order to
52 strengthen the university/industry connection and prepare New York busi-
53 nesses to compete for private-sector venture investment, the New York
54 state urban development corporation shall have the power to establish
S. 2609--D 101 A. 3009--D
1 and administer the New York state innovation venture capital fund to
2 provide critical seed and early-stage funding to incentivize new busi-
3 ness formation and growth in New York state and to facilitate the tran-
4 sition from ideas and research to marketable products. Funds will be
5 expended by the innovation venture capital fund pursuant to a plan
6 developed by the urban development corporation and submitted to the
7 director of the division of the budget, the temporary president of the
8 senate, the speaker of the assembly, the minority leader of the senate
9 and the minority leader of the assembly. No funds shall be transferred
10 to the New York state urban development corporation for the New York
11 state innovation venture capital fund until such plan has been submit-
12 ted.
13 § 3. Eligible applicants. Eligible applicants for the New York state
14 innovation venture capital fund may include business enterprises in the
15 formative stage of development, regional and local economic development
16 organizations, technology development organizations, research universi-
17 ties, and investment funds that make seed, early-stage and venture
18 investments. In order to be eligible for funds from the New York state
19 innovation venture capital fund, a beneficiary company must: (a) be, or
20 agree in writing to be, located in New York state; (b) be in the seed,
21 early-stage or venture stage of development, as defined by the corpo-
22 ration; and (c) have the potential to generate additional economic
23 activity in New York State.
24 § 4. Investment professionals. The New York state urban development
25 corporation shall have the power to engage or retain the services of one
26 or more investment professionals or firms, through direct hire or by
27 contract after a competitive solicitation or otherwise as permitted by
28 law, with demonstrated knowledge and expertise to advise the corporation
29 with respect to the innovation venture capital fund and to provide such
30 other investment advisory services as may be necessary or advisable.
31 § 5. Evaluation of applicants. The New York state urban development
32 corporation shall establish a process by rule or regulation for the
33 evaluation of applicants for funds from the New York state innovation
34 venture capital fund; provided however that the corporation shall not
35 issue such rules or regulations pursuant to the emergency rule making
36 authority provided for in the state administrative procedure act.
37 § 6. Report. The New York state urban development corporation shall
38 submit a report annually on December 31 to the director of the division
39 of the budget, the temporary president of the senate, the speaker of the
40 assembly, the minority leader of the senate and the minority leader of
41 the assembly detailing: (a) the total amount of funds committed to each
42 applicant that receives funds and, if applicable, the amount of such
43 funds that has been invested by each such applicant; (b) the amount of
44 New York State innovation venture capital funds invested and the recipi-
45 ents of such funds; (c) the location of each beneficiary company; (d)
46 the number of jobs projected to be created or retained; and (e) such
47 other information as the corporation deems necessary.
48 § 7. Rules and regulations. The New York state urban development
49 corporation is hereby authorized to promulgate rules and regulations in
50 accordance with the state administrative procedure act as are necessary
51 to fulfill the purposes of this act, including with respect to reason-
52 able management fees, promotes, share of return and other fees and
53 charges of applicants that receive funds, and to provide for the repay-
54 ment of funds received by the beneficiary company if the beneficiary
55 company leaves New York state within a period of time to be established
56 by the corporation. In accordance with such rules and regulations, the
S. 2609--D 102 A. 3009--D
1 corporation may impose fees, establish repayment terms and provide for
2 equity participation by the corporation in connection with investments
3 from the New York state innovation venture capital fund. Provided howev-
4 er that no rules or regulations issued pursuant to this section shall be
5 issued utilizing the emergency rule making authority provided for in the
6 state administrative procedure act.
7 § 8. This act shall take effect immediately.
8 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
9 sion, section or part of this act shall be adjudged by any court of
10 competent jurisdiction to be invalid, such judgment shall not affect,
11 impair, or invalidate the remainder thereof, but shall be confined in
12 its operation to the clause, sentence, paragraph, subdivision, section
13 or part thereof directly involved in the controversy in which such judg-
14 ment shall have been rendered. It is hereby declared to be the intent of
15 the legislature that this act would have been enacted even if such
16 invalid provisions had not been included herein.
17 § 3. This act shall take effect immediately provided, however, that
18 the applicable effective date of Parts A through JJ of this act shall be
19 as specifically set forth in the last section of such Parts.
