STATE OF NEW YORK
________________________________________________________________________
3046
2009-2010 Regular Sessions
IN ASSEMBLY
January 22, 2009
___________
Introduced by M. of A. KOLB, OAKS, CALHOUN, O'MARA, SAYWARD, REILICH,
FINCH, P. LOPEZ -- Multi-Sponsored by -- M. of A. BACALLES, BUTLER,
CONTE, DUPREY, ERRIGO, MOLINARO, QUINN, WALKER -- read once and
referred to the Committee on Economic Development, Job Creation,
Commerce and Industry
AN ACT to amend the economic development law and the tax law, in
relation to establishing the manufacturing preservation and enhance-
ment act (Part A); to amend the economic development law and the tax
law, in relation to establishing the office of the New York state
homeshoring initiative (Part B); to amend the general municipal law,
in relation to the decertification of business enterprises due to the
outsourcing of jobs (Part C); and to amend the tax law, in relation to
tax exemptions for manufacturers (Part D)
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 relating to the manufacturing preservation and enhancement act. Each
3 component is wholly contained within a Part identified as Parts A
4 through D. The effective date for each particular provision contained
5 within such Part is set forth in the last section of such Part. Any
6 provision in any section contained within a Part, including the effec-
7 tive date of the Part, which makes a reference to a section "of this
8 act", when used in connection with that particular component, shall be
9 deemed to mean and refer to the corresponding section of the Part in
10 which it is found. Section three of this act sets forth the general
11 effective date of this act.
12 PART A
13 Section 1. The economic development law is amended by adding a new
14 article 15 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05088-01-9
A. 3046 2
1 ARTICLE 15
2 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
3 Section 270. Definitions.
4 271. Manufacturing preservation and enhancement program.
5 272. Special provisions relating to certified manufacturers.
6 273. Reporting.
7 § 270. Definitions. As used in this article, the following words and
8 terms shall have the following meanings unless the content shall indi-
9 cate another or different meaning or intent:
10 1. "Program" shall mean the manufacturing preservation and enhancement
11 program established pursuant to this article.
12 2. "Manufacturing firm" shall mean an enterprise, including corporate
13 entities, partnerships and sole proprietors, engaged in the business of
14 production of goods and products from raw materials.
15 3. "Benchmark" shall mean a specific number of eligible new jobs
16 created in the state pursuant to the program.
17 4. "MEI" shall mean the manufacturing enhancement incentive program.
18 § 271. Manufacturing preservation and enhancement program. 1. There
19 is hereby created a manufacturing preservation and enhancement program
20 within the department to provide technical and financial assistance in
21 the form of tax incentives to manufacturing firms that meet specified
22 benchmarks in job creation as established by the commissioner.
23 2. The commissioner shall determine eligibility requirements for
24 participation in the program, provided, however, that such requirements
25 shall include the following:
26 (a) An applicant to the program may not participate in the program if
27 designated as a certified business located in an empire zone created
28 pursuant to article eighteen-B of the general municipal law; and
29 (b) An applicant that has previously participated in the program may
30 not reapply for participation in the program unless it can document that
31 at the time of its reapplication for participation, it has maintained a
32 level of employment at least as great as the highest level required
33 during its previous participation in the program.
34 3. Applications for participation in the MEI shall be submitted by
35 each manufacturing firm seeking to participate in the program, and shall
36 be in the form and contain such information, exhibits and supporting
37 data as the commissioner may prescribe. No applications for partic-
38 ipation shall be accepted after December thirty-first, two thousand
39 seventeen.
40 4. Manufacturing firms interested in participating in the MEI shall
41 submit an application to the program. The commissioner shall review all
42 applications for participation in the program for eligibility and shall
43 register eligible applicants. The commissioner shall provide each regis-
44 tered applicant with benchmarks in job creation that must be achieved by
45 the registered applicant over the following five years. Such benchmarks
46 shall be consistent with regulations to be prescribed by the commission-
47 er. Annually, each registered applicant shall submit to the commissioner
48 a registration statement, together with such information, exhibits and
49 supporting data as the commissioner may require. Upon submission of the
50 fifth annual registration statement, the commissioner shall review the
51 registered applicant's file for eligibility for the tax incentives. If
52 the registered applicant has met the required benchmarks in job
53 creation, the commissioner shall provide a certificate, valid for the
54 succeeding two tax years, certifying that the registered applicant is
55 eligible for tax credits pursuant to this article. The MEI certificate
56 shall include a description of the property eligible for the property
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1 tax benefit and shall specify the employment level and total amount of
2 employee gross salary eligible for the wage credit.
3 § 272. Special provisions relating to certified manufacturers. During
4 the two-year certification period, certified manufacturing firms shall
5 be eligible to receive the following tax credits:
6 1. An MEI property tax credit, which shall be computed pursuant to
7 section seven hundred of the tax law;
8 2. An MEI wage tax credit, which shall be computed pursuant to section
9 seven hundred one of the tax law; and
10 3. An MEI energy tax credit, which shall be computed pursuant to
11 section seven hundred two of the tax law.
12 § 273. Reporting. The commissioner shall, on or before September
13 first, two thousand eleven, and annually thereafter, submit a report to
14 the governor, the temporary president of the senate, the speaker of the
15 assembly, the minority leader of the senate and the minority leader of
16 the assembly on the operation and accomplishments of the program
17 provided for pursuant to this article.
18 § 2. The tax law is amended by adding a new article 23 to read as
19 follows:
20 ARTICLE 23
21 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
22 Section 700. MEI property tax credit.
23 701. MEI wage tax credit.
24 702. MEI energy tax credit.
25 § 700. MEI property tax credit. (a) Allowance of credit. A taxpayer
26 receiving an MEI certificate issued pursuant to article fifteen of the
27 economic development law, and that or who is subject to property taxes
28 under article nine-A or article twenty-two of this chapter, shall be
29 allowed a credit against the property taxes assessed under article
30 nine-A or article twenty-two of this chapter during the tax years that
31 the certificate is valid, provided, and to the extent that, the taxes
32 assessed constitute eligible real property taxes as defined in
33 subsection (b) of this section. The credit shall be computed pursuant to
34 the provisions of subsection (c) of this section.
35 (b) Definition. The term "eligible real property taxes" shall mean tax
36 imposed on real property which has been certified as MEI eligible prop-
37 erty pursuant to article fifteen of the economic development law. In
38 addition, the term "eligible real property taxes" includes payments in
39 lieu of taxes made by the taxpayer to the state, a municipal corporation
40 or a public benefit corporation pursuant to a written agreement entered
41 into by the taxpayer and the state, municipal corporation or public
42 benefit corporation.
43 (c) Computation of property tax credit. The property tax credit
44 described in this section shall be a flat ten percent of the property
45 tax assessed.
46 § 701. MEI wage tax credit. (a) Allowance of credit. A taxpayer
47 receiving an MEI certificate that has been issued pursuant to article
48 fifteen of the economic development law, and that or who is subject to
49 taxes under article nine-A or article twenty-two of this chapter, shall
50 be allowed a credit against the taxes assessed under article nine-A or
51 article twenty-two of this chapter during the tax years that the certif-
52 icate is valid. The credit shall be computed pursuant to the provisions
53 of subsection (c) of this section.
54 (b) Definitions. The term "eligible wages" shall mean the total amount
55 of employee gross salary eligible for the wage tax credit, as such
A. 3046 4
1 amount is specified in the MEI certificate issued pursuant to article
2 fifteen of the economic development law.
3 (c) Computation of wage tax credit. (1) During the first tax year of
4 the two-year period for which a valid MEI certificate has been issued
5 pursuant to article fifteen of the economic development law, provided
6 the taxpayer has maintained the employment and eligible wage require-
7 ments specified by the MEI as defined in article fifteen of the economic
8 development law, the taxpayer shall be allowed a credit of one and one-
9 half percent of the total amount of the eligible wages actually paid by
10 the taxpayer. If the taxpayer increases employment during this tax year,
11 and exceeds the level of employment required by the MEI as defined in
12 article fifteen of the economic development law, hiring and maintaining
13 additional employees and paying additional wages over and above the
14 eligible wages amount, the taxpayer shall be allowed an additional cred-
15 it of two and one-half percent of the total amount by which the wages
16 actually paid as a result of the increased level of employment exceed
17 the eligible wages.
18 (2) During the second tax year of the two-year period for which a
19 valid MEI certificate has been issued pursuant to article fifteen of the
20 economic development law, provided the taxpayer has maintained the
21 employment and eligible wage requirements specified by the MEI as
22 defined in article fifteen of the economic development law, the taxpayer
23 shall be allowed a credit of one and one-half percent of the total
24 amount of the eligible wages actually paid by the taxpayer; however, if
25 the taxpayer increased employment in the preceding tax year and claimed
26 the two and one-half percent credit for employment and payment of wages
27 in excess of the MEI requirements pursuant to article fifteen of the
28 economic development law, the taxpayer shall be allowed a credit of one
29 and one-half percent of the total amount of the eligible wages actually
30 paid by the taxpayer during the preceding tax year, provided the taxpay-
31 er has maintained the increased employment and salary levels. If the
32 taxpayer again increases employment, hiring and maintaining additional
33 employees and paying additional wages over and above the previous tax
34 year's amount, the taxpayer shall be allowed an additional credit of two
35 and one-half percent of the total amount by which the wages actually
36 paid as a result of the increased level of employment exceed the wages
37 subject to the one and one-half percent credit.
38 § 702. MEI energy tax credit. (a) Allowance of credit. A taxpayer
39 receiving an MEI certificate has been issued pursuant to article fifteen
40 of the economic development law, and that or who is subject to taxes
41 under article nine-A or article twenty-two of this chapter, shall be
42 allowed a credit against the taxes assessed under article nine-A or
43 article twenty-two of this chapter during the tax years that the certif-
44 icate is valid. The credit shall be computed pursuant to the provisions
45 of subsection (c) of this section.
46 (b) Definition. The term "eligible energy costs" shall mean the
47 amounts paid by the taxpayer for electricity, natural gas, or any other
48 energy product or service which the taxpayer has used in the operation
49 of a MEI certified manufacturing firm facility pursuant to article
50 fifteen of the economic development law.
51 (c) Computation of energy credit. (1) If the taxpayer has paid eligi-
52 ble energy costs during the first tax year of the two-year period for
53 which a valid MEI certificate has been issued pursuant to article
54 fifteen of the economic development law, provided the taxpayer has main-
55 tained the employment and eligible wages requirements specified by the
56 MEI as defined in article fifteen of the economic development law, the
A. 3046 5
1 taxpayer shall be allowed an energy credit of twenty-five dollars per
2 employee required by the MEI as defined in article fifteen of the
3 economic development law. If the taxpayer increases employment during
4 this tax year, and exceeds the level of employment required by the MEI
5 as defined in article fifteen of the economic development law, hiring
6 and maintaining additional employees and paying additional wages over
7 and above the eligible wages amount, the taxpayer shall be allowed an
8 additional energy credit of fifty dollars per each additional employee.
9 The energy tax credit shall not exceed the amount of eligible energy
10 costs actually paid by the taxpayer.
11 (2) If the taxpayer has paid eligible energy costs during the second
12 tax year of the two-year period for which a valid MEI certificate has
13 been issued pursuant to article fifteen of the economic development law,
14 provided the taxpayer has maintained the employment and eligible wage
15 requirements specified by the MEI as defined in article fifteen of the
16 economic development law, the taxpayer shall be allowed an energy credit
17 of twenty-five dollars per employee required by the MEI as defined in
18 article fifteen of the economic development law; however, if the taxpay-
19 er increased employment during the preceding tax year and claimed the
20 additional energy tax credit of fifty dollars per additional employee,
21 the taxpayer shall be allowed a credit of twenty-five dollars per
22 employee up to the number of employees claimed in the previous tax year,
23 provided the taxpayer has maintained the increased employment and wage
24 levels. If the taxpayer again increases employment, hiring additional
25 employees and paying additional wages over and above the previous tax
26 year's amounts, the taxpayer shall be allowed an additional credit of
27 fifty dollars for each additional employee hired during the second year.
28 The energy tax credit shall not exceed the amount of eligible energy
29 costs actually paid by the taxpayer.
30 § 3. Section 210 of the tax law is amended by adding three new subdi-
31 visions 41, 42 and 43 to read as follows:
32 41. MEI property tax credit. (a) Allowance of credit. A taxpayer shall
33 be allowed a credit, to be computed as provided in section seven hundred
34 of this chapter, against the tax imposed by this article.
35 (b) Carryovers. The credit allowed under this subdivision for any
36 taxable year shall not reduce the tax due for such year to less than the
37 higher of the amounts prescribed in paragraphs (c) and (d) of subdivi-
38 sion one of this section; provided, however, if the amount of this cred-
39 it allowable under this section for any taxable year reduces tax to such
40 amount, any amount of the credit not deductible in such taxable year may
41 be carried over to the following year or years and may be deducted from
42 the taxpayer's tax for such year or years.
43 42. MEI wage tax credit. (a) Allowance of credit. A taxpayer shall be
44 allowed a credit against the tax imposed by this article, to be computed
45 as provided in section seven hundred one of this chapter, against the
46 tax imposed by this article.
47 (b) Carryovers. The credit allowed under this subdivision for any
48 taxable year shall not reduce the tax due for such year to less than the
49 higher of the amounts prescribed in paragraphs (c) and (d) of subdivi-
50 sion one of this section; provided, however, if the amount of this cred-
51 it allowable under this section for any taxable year reduces tax to such
52 amount, any amount of the credit not deductible in such taxable year may
53 be carried over to the following year or years and may be deducted from
54 the taxpayer's tax for such year or years.
55 43. MEI energy tax credit. (a) Allowance of credit. A taxpayer shall
56 be allowed a credit against the tax imposed by this article, to be
A. 3046 6
1 computed as provided in section seven hundred two of this chapter,
2 against the tax imposed by this article.
3 (b) Carryovers. The credit allowed under this subdivision for any
4 taxable year shall not reduce the tax due for such year to less than the
5 higher of the amounts prescribed in paragraphs (c) and (d) of subdivi-
6 sion one of this section; provided, however, if the amount of this cred-
7 it allowable under this section for any taxable year reduces tax to such
8 amount, any amount of the credit not deductible in such taxable year may
9 be carried over to the following year or years and may be deducted from
10 the taxpayer's tax for such year or years.
11 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
12 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
13 the laws of 2008, is amended to read as follows:
14 (B) shall be treated as the owner of a new business with respect to
15 such share if the corporation qualifies as a new business pursuant to
16 paragraph (j) of subdivision twelve of section two hundred ten of this
17 chapter.
18 The corporation's credit base under
19 section two hundred ten or section
20 With respect to the following fourteen hundred fifty-six of this
21 credit under this section: chapter is:
22 (i) Investment tax credit Investment credit base
23 under subsection (a) or qualified
24 rehabilitation
25 expenditures under
26 subdivision twelve of
27 section two hundred ten
28 (ii) Empire zone Cost or other basis
29 investment tax credit under subdivision
30 under subsection (j) twelve-B
31 of section two hundred
32 ten
33 (iii) Empire zone Eligible wages under
34 wage tax credit subdivision nineteen of
35 under subsection (k) section two hundred ten
36 or subsection (e) of
37 section fourteen hundred
38 fifty-six
39 (iv) Empire zone Qualified investments
40 capital tax credit and contributions under
41 under subsection (l) subdivision twenty of
42 section two hundred ten
43 or subsection (d) of
44 section fourteen hundred
45 fifty-six
46 (v) Agricultural property tax Allowable school
47 credit under subsection (n) district property taxes under
48 subdivision twenty-two of
49 section two hundred ten
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1 (vi) Credit for employment Qualified first-year wages or
2 of persons with dis- qualified second-year wages
3 abilities under under subdivision
4 subsection (o) twenty-three of section
5 two hundred ten
6 or subsection (f)
7 of section fourteen
8 hundred fifty-six
9 (vii) Employment incentive Applicable investment credit
10 credit under subsec- base under subdivision
11 tion (a-1) twelve-D of section two
12 hundred ten
13 (viii) Empire zone Applicable investment
14 employment credit under sub-
15 incentive credit under division twelve-C
16 subsection (j-1) of section two hundred ten
17 (ix) Alternative fuels credit Cost under subdivision
18 under subsection (p) twenty-four of section two
19 hundred ten
20 (x) Qualified emerging Applicable credit base
21 technology company under subdivision twelve-E
22 employment credit of section two hundred ten
23 under subsection (q)
24 (xi) Qualified emerging Qualified investments under
25 technology company subdivision twelve-F of
26 capital tax credit section two hundred ten
27 under subsection (r)
28 (xii) Credit for purchase of an Cost of an automated
29 automated external defibrillator external defibrillator under
30 under subsection (s) subdivision twenty-five of
31 section two hundred ten
32 or subsection (j) of section
33 fourteen hundred fifty-six
34 (xiii) Low-income housing Credit amount under
35 credit under subsection (x) subdivision thirty
36 of section two hundred ten or
37 subsection (l) of section
38 fourteen hundred fifty-six
39 (xiv) Credit for transportation Amount of credit under sub-
40 improvement contributions division thirty-two of section
41 under subsection (z) two hundred ten or subsection
42 (n) of section fourteen
43 hundred fifty-six
44 (xv) QEZE credit for real property Amount of credit under
45 taxes under subsection (bb) subdivision twenty-seven of
46 section two hundred ten or
47 subsection (o) of section
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1 fourteen hundred fifty-six
2 (xvi) QEZE tax reduction credit Amount of benefit period
3 under subsection (cc) factor, employment increase factor
4 and zone allocation
5 factor (without regard
6 to pro ration) under
7 subdivision twenty-eight of
8 section two hundred ten or
9 subsection (p) of section
10 fourteen hundred fifty-six
11 and amount of tax factor
12 as determined under
13 subdivision (f) of section sixteen
14 (xvii) Green building credit Amount of green building credit
15 under subsection (y) under subdivision thirty-one
16 of section two hundred ten
17 or subsection (m) of section
18 fourteen hundred fifty-six
19 (xviii) Credit for long-term Qualified costs under
20 care insurance premiums subdivision twenty-five-a of
21 under subsection (aa) section two hundred ten
22 or subsection (k) of section
23 fourteen hundred fifty-six
24 (xix) Brownfield redevelopment Amount of credit
25 credit under subsection under subdivision
26 (dd) thirty-three of section
27 two hundred ten
28 or subsection (q) of
29 section fourteen hundred
30 fifty-six
31 (xx) Remediated brownfield Amount of credit under
32 credit for real property subdivision thirty-four
33 taxes for qualified of section two hundred
34 sites under subsection ten or subsection (r) of
35 (ee) section fourteen hundred
36 fifty-six
37 (xxi) Environmental Amount of credit under
38 remediation subdivision thirty-five of
39 insurance credit under section two hundred
40 subsection (ff) ten or subsection
41 (s) of section
42 fourteen hundred
43 fifty-six
44 (xxii) Empire state film Amount of credit for qualified
45 production credit under production costs in production
46 subsection (gg) of a qualified film under
47 subdivision thirty-six of
48 section two hundred ten
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1 (xxiii) Qualified emerging Qualifying expenditures and
2 technology company facilities, development activities under
3 operations and training credit subdivision twelve-G of section
4 under subsection (nn) two hundred ten
5 (xxiv) Security training tax Amount of credit
6 credit under under subdivision thirty-seven
7 subsection (ii) of section two hundred ten or
8 under subsection (t) of
9 section fourteen hundred fifty-six
10 (xxv) Credit for qualified fuel Amount of credit under
11 cell electric generating equipment subdivision thirty-seven
12 expenditures under subsection (g-2) of section two hundred ten
13 or subsection (t) of
14 section fourteen hundred
15 fifty-six
16 (xxvi) Empire state commercial Amount of credit for qualified
17 production credit under production costs in production
18 subsection (jj) of a qualified commercial under
19 subdivision thirty-eight of sec-
20 tion two hundred ten
21 (xxvii) Biofuel production Amount of credit
22 tax credit under under subdivision
23 subsection (jj) thirty-eight of
24 section two hundred ten
25 (xxviii) Clean heating fuel credit Amount of credit under
26 under subsection (mm) subdivision thirty-nine of
27 section two hundred ten
28 (xxix) Credit for rehabilitation Amount of credit under
29 of historic properties subdivision forty of
30 under subsection (oo) [subsection] section
31 two hundred ten
32 (xxx) Credit for companies who Amount of credit under
33 provide transportation subdivision forty of
34 to individuals section two hundred ten
35 with disabilities
36 under subsection (oo)
37 (xxxi) MEI property tax creditAmount of MEI property tax credit
38 under subsection (qq)under subdivision forty-one of
39 section two hundred ten
40 (xxxii) MEI wage tax credit underAmount of MEI wage tax credit
41 subsection (rr)under subdivision forty-two of
42 section two hundred ten
43 (xxxiii) MEI energy tax credit underAmount of MEI energy tax credit
44 subsection (ss)under subdivision forty-three of
45 section two hundred ten
A. 3046 10
1 § 5. Section 606 of the tax law is amended by adding three new
2 subsections (qq), (rr) and (ss) to read as follows:
3 (qq) MEI property tax credit. (1) Allowance of credit. A taxpayer
4 shall be allowed a credit, to be computed as provided in section seven
5 hundred of this chapter, against the tax imposed by this article.
6 (2) Application of credit. If the amount of the credit allowed under
7 this subsection for any taxable year shall exceed the taxpayer's tax for
8 such year, the excess shall be treated as an overpayment of tax to be
9 credited or refunded in accordance with the provisions of section six
10 hundred eighty-six of this article, provided, however, that no interest
11 shall be paid thereon.
12 (rr) MEI wage tax credit. (1) Allowance of credit. A taxpayer shall be
13 allowed a credit, to be computed as provided in section seven hundred
14 one of this chapter, against the tax imposed by this article.
15 (2) Application of credit. If the amount of the credit allowed under
16 this subsection for any taxable year shall exceed the taxpayer's tax for
17 such year, the excess shall be treated as an overpayment of tax to be
18 credited or refunded in accordance with the provisions of section six
19 hundred eighty-six of this article, provided, however, that no interest
20 shall be paid thereon.
21 (ss) MEI energy tax credit. (1) Allowance of credit. A taxpayer shall
22 be allowed a credit, to be computed as provided in section seven hundred
23 two of this chapter, against the tax imposed by this article.
24 (2) Application of credit. If the amount of the credit allowed under
25 this subsection for any taxable year shall exceed the taxpayer's tax for
26 such year, the excess shall be treated as an overpayment of tax to be
27 credited or refunded in accordance with the provisions of section six
28 hundred eighty-six of this article, provided, however, that no interest
29 shall be paid thereon.
30 § 6. This act shall take effect on the one hundred eightieth day
31 after it shall have become a law and shall apply to taxable years begin-
32 ning on or after January 1, 2011 and before January 1, 2018; provided,
33 however, that the addition, amendment and/or repeal of any rule or regu-
34 lation necessary for the implementation of this act on its effective
35 date are authorized and directed to be made on or before such date; and
36 provided, however that the empire state film production credit under
37 subsection (gg), the empire state commercial production credit under
38 subsection (jj) and the credit for companies who provide transportation
39 to individuals with disabilities under subsection (oo) of section 606 of
40 the tax law contained in section four of this act shall expire on the
41 same date as provided in section 9 of part P of chapter 60 of the laws
42 of 2004, as amended, section 10 of part V of chapter 62 of the laws of
43 2006, as amended and section 5 of chapter 522 of the laws of 2006, as
44 amended, respectively.
45 PART B
46 Section 1. The economic development law is amended by adding a new
47 article 17 to read as follows:
48 ARTICLE 17
49 OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE
50 Section 350. Legislative findings.
51 351. Office of the New York state homeshoring initiative.
52 352. Objectives.
53 353. Powers and duties.
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1 § 350. Legislative findings. The legislature finds that recent
2 advances in telecommunications and the advent of the internet are regu-
3 larly creating new and previously unimagined opportunities for the
4 creation of jobs and prosperity. The legislature further finds that
5 these advances in communications have also presented the state and its
6 citizens with significant challenges in terms of global competition,
7 which challenges must be addressed directly for our state to maintain
8 its competitive edge in the evolving world economy. The legislature
9 further finds that the proper promotion of internet job opportunities
10 could help improve the overall economic climate within the state by
11 providing potential employment anywhere within the state, including
12 blighted, isolated, and economically depressed regions. The legislature
13 further finds that such potential jobs are particularly suited to being
14 filled by both New Yorkers with disabilities and by those New Yorkers
15 whose family responsibilities preclude or make impractical working
16 outside of the home. The legislature further finds that New York is home
17 to a highly productive and well educated workforce, and that this work-
18 force could and should be made available for employment at home by
19 companies located across the world in order to promote the prosperity of
20 the state and its citizens.
21 § 351. Office of the New York state homeshoring initiative. There is
22 hereby established, under the direction of the commissioner, the office
23 of the New York state homeshoring initiative. The director of such
24 office shall be appointed by the governor, shall report directly to the
25 commissioner on the activities of the office, and shall hold office at
26 the pleasure of the commissioner. The director of the office of the New
27 York state homeshoring initiative shall also regularly advise and report
28 upon its activities to the department of labor. It shall be the duty of
29 the director of the office of the New York state homeshoring initiative
30 to assist the governor in the formulation and implementation of laws and
31 policies relating to the promotion, creation, and integration of tele-
32 commuting job opportunities into the economic fabric of the state. The
33 director shall receive an annual salary to be fixed by the governor
34 within the amount appropriated therefor. The director may appoint such
35 officers, employees, agents, consultants and special committees as he or
36 she may deem necessary to carry out the provisions of this article and
37 prescribe their duties subject to the provisions of the civil service
38 law and the rules and regulations of the civil service commission.
39 § 352. Objectives. The office of the New York state homeshoring initi-
40 ative is directed to promote "homeshoring", an initiative that will
41 promote the creation of telecommuting job opportunities on behalf of New
42 York workers. This assistance should consist of promotion, outreach,
43 coordination, information, technical assistance, and referral services
44 designated to attract employers who might otherwise not consider an
45 actual move to New York state to hire New York citizens for employment
46 opportunities within the state now made possible through telecommuting,
47 as well as encouraging New York state employers to provide job opportu-
48 nities for telecommuting.
49 § 353. Powers and duties. The office of the New York state homeshoring
50 initiative shall:
51 1. coordinate its efforts with all other state agencies, including but
52 not limited to the department, the department of labor, the office of
53 general services, the state office for technology, the department of
54 education, and all other agencies as may be appropriate in forwarding
55 this objective. The office may also work in cooperation with any not-
A. 3046 12
1 for-profit organizations that the office believes will help further its
2 goals and objectives;
3 2. conduct marketing and promotional activities with the intention of
4 encouraging employers both within and outside of New York state to
5 employ New York citizens in telecommuting jobs;
6 3. solicit recommendations from local governments, businesses, and
7 not-for-profit agencies for promoting the objectives of this article,
8 and refer such recommendations to the governor, the legislature and
9 appropriate state agencies or authorities;
10 4. conduct investigations, research, studies and analyses of matters
11 consistent with the goals and objectives of this article;
12 5. coordinate with the office of general services to develop a program
13 where such surplus state equipment as may be appropriate and useful will
14 be made available for sale to qualified businesses that have been iden-
15 tified as creating telecommuting jobs in New York state, and shall
16 develop such rules and regulations as are needed to implement such a
17 program including the criteria for participation in such program; and
18 6. coordinate with the office of general services to develop a program
19 where qualifying businesses that have been identified as creating tele-
20 commuting jobs may be made eligible to make purchases of materials,
21 equipment, or supplies from centralized contracts for commodities in
22 accordance with conditions set by the office and the office of general
23 services; provided that the qualified business shall accept sole respon-
24 sibility for any payment due the vendor. The office shall develop such
25 rules and regulations as are needed to implement such a program and to
26 determine the eligibility for participation in such program.
27 § 2. Section 210 of the tax law is amended by adding a new subdivision
28 44 to read as follows:
29 44. Telecommuting job creation wage tax credit. (a) A taxpayer shall
30 be allowed a credit to be computed as hereinafter provided, against the
31 tax imposed by this article. The amount of such credit shall be as
32 prescribed by paragraph (d) of this subdivision.
33 (b) For the purposes of this subdivision, the following terms shall
34 have the following meanings:
35 (i) "Telecommuting job creation wages" means wages paid by the taxpay-
36 er for employment, during the taxable year where such employment is in a
37 telecommuting job and performed by telecommuting employees.
38 (ii) "Telecommuting job" means a position that did not exist in the
39 taxpayer's business in New York state during the three taxable years
40 prior to hiring the telecommuting employees for whom the credit is
41 claimed and which provides not less than twenty hours per week of
42 employment.
43 (iii) "Telecommuting employee" means a New York resident who received
44 telecommuting job creation wages and who was not employed by the taxpay-
45 er in the three prior taxable years, and who performs his or her job
46 duty from his or her residence.
47 (iv) "Taxpayer" means a New York taxpayer as defined in paragraph (f)
48 of subdivision one of this section.
49 (c) The credit may be claimed by the taxpayer in the first year the
50 telecommuting employee is employed by the taxpayer, provided, however,
51 where a telecommuting employee is hired in the last quarter of a taxable
52 year and is employed by the taxpayer for the entire following taxable
53 year, the taxpayer may elect to forego the credit for the taxable year
54 of the hiring and claim a credit for the following taxable year which
55 reflects wages paid in such year.
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1 (d) The amount of the credit shall equal fifty percent of the personal
2 income tax generated by the telecommuting employee by the taxpayer,
3 provided, however, that the credit provided for under this subdivision
4 with respect to the taxable year, and carryovers of such credit to the
5 taxable year, deducted from the tax otherwise due, may not, in the
6 aggregate, exceed fifty percent of the tax imposed under section two
7 hundred nine of this article computed without regard to any credit
8 provided for by this article.
9 (e) The credit and carryovers of such credit allowed under this subdi-
10 vision for any taxable year shall not, in the aggregate, reduce the tax
11 due for such year to less than the higher of the amounts prescribed in
12 paragraphs (c) and (d) of subdivision one of this section, however, if
13 the amount of credit or carryovers of such credit, or both, allowed
14 under this subdivision for any taxable year reduces the tax to such
15 amount, or if any part of the credit or carryovers of such credit may
16 not be deducted from the tax otherwise due by reason of the final
17 sentence of paragraph (d) of this subdivision, any amount of credit or
18 carryovers of such credit thus not deductible in such taxable year may
19 be carried over to the following year or years and may be deducted from
20 the tax for such year or years.
21 § 3. Section 606 of the tax law is amended by adding a new subsection
22 (u) to read as follows:
23 (u) Telecommuting job creation wage tax credit. (1) A taxpayer shall
24 be allowed a credit, to be computed as hereinafter provided, against the
25 tax imposed by this article. The amount of such credit shall be as
26 prescribed by paragraph three of this subsection.
27 (2) For the purposes of this subsection, the following terms shall
28 have the following meanings:
29 (i) "Telecommuting job" means a position that did not exist in the
30 taxpayer's business in the three taxable years prior to hiring the tele-
31 commuting employees for whom the credit is claimed and which provides
32 not less than twenty hours per week of employment.
33 (ii) "Telecommuting job creation wages" means wages paid by the
34 taxpayer for employment, during the taxable year where such employment
35 is in a telecommuting job created for and performed by telecommuting
36 employees.
37 (iii) "Telecommuting employee" means a New York resident who receives
38 telecommuting job creation wages, who was not employed by the taxpayer
39 in the three prior taxable years, and who performs their job duties from
40 his or her residence.
41 (iv) "Taxpayer" means a New York taxpayer, as defined in paragraph (f)
42 of subdivision one of section two hundred ten of this chapter.
43 (v) The credit may be claimed by the taxpayer in the first year the
44 telecommuting employee is employed by the taxpayer, provided, however,
45 where a telecommuting employee is hired in the last quarter of a taxable
46 year and is employed by the taxpayer for the entire following taxable
47 year, the taxpayer may elect to forego the credit for the taxable year
48 of the hiring and claim a credit for the following taxable year which
49 reflects wages paid in such year.
50 (3) The amount of the credit shall equal fifty percent of the personal
51 income tax generated by the telecommuting employees employed by the
52 taxpayer, provided, however, that the credit provided for under this
53 subsection with respect to the taxable year, and carryovers of such
54 credit to the taxable year, deducted from the tax otherwise due, may
55 not, in the aggregate, exceed fifty percent of the tax imposed under
A. 3046 14
1 section two hundred nine of this chapter computed without regard to any
2 credit provided for by this article.
3 (4) If the amount of the credit and carryovers of such credit allowed
4 under this subsection for any taxable year shall exceed the taxpayer's
5 tax for such year, the excess, as well as any part of the credit or
6 carryovers of such credit, or both, which may not be deducted from the
7 tax otherwise due by reason of the final sentence in paragraph three of
8 this subsection, may be carried over to the following year or years and
9 may be deducted from the taxpayer's tax for such year or years.
10 § 4. This act shall take effect on the one hundred eightieth day after
11 it shall have become a law.
12 PART C
13 Section 1. The general municipal law is amended by adding a new
14 section 959-c to read as follows:
15 § 959-c. Decertification due to the outsourcing of jobs. A certified
16 business enterprise in an empire zone shall be decertified by the
17 commissioner, the local empire zone certification officer and the
18 commissioner of labor if it is determined that such certified business
19 enterprise has failed to meet job creation projections as set forth in
20 the certification process, and it is found that such certified business
21 has outsourced jobs. Prior to the commissioner, the local empire zone
22 certification officer and the commissioner of labor decertifying such
23 certified business enterprise, they shall provide notice to the certi-
24 fied business enterprise of their intent to decertify such certified
25 business enterprise and of its right to request a hearing. A certified
26 business enterprise shall have thirty days within which to request a
27 hearing from its receipt of the notice of intent to revoke certification
28 and opportunity for a hearing. Failure to request a hearing within thir-
29 ty days shall be deemed a waiver of the certified business enterprise's
30 right to a hearing. For the purposes of this section, "outsource" means
31 to relocate or move jobs outside of the state of New York to another
32 state or country.
33 § 2. This act shall take effect immediately.
34 PART D
35 Section 1. Section 208 of the tax law is amended by adding two new
36 subdivisions 20 and 21 to read as follows:
37 20. "Manufacturer" shall mean a taxpayer which during the taxable year
38 is principally engaged in the production of goods by manufacturing,
39 processing, assembling, refining, mining, extracting, farming, agricul-
40 ture, horticulture, floriculture, viticulture or commercial fishing.
41 Moreover, for purposes of computing the capital base in a combined
42 report, the group shall be considered a "manufacturer" for purposes of
43 this article only if the combined group during the taxable year is prin-
44 cipally engaged in the activities set forth in this subdivision, or any
45 combination thereof.
46 21. "Principally engaged" shall include a taxpayer or a combined group
47 if, during the taxable year, more than fifty percent of the gross
48 receipts of the taxpayer or combined group, respectively, are derived
49 from receipts from the sale of goods produced by manufacturing. In
50 computing a combined group's gross receipts, intercorporate receipts
51 shall be eliminated.
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1 § 2. Section 209 of the tax law is amended by adding a new subdivision
2 11 to read as follows:
3 11. For any taxable year beginning on or after January first, two
4 thousand nine, a taxpayer who is a manufacturer shall be fully exempt
5 from all taxes imposed by this article.
6 § 3. Subsection (f) of section 601 of the tax law, as amended by chap-
7 ter 248 of the laws of 1997, is amended to read as follows:
8 (f) Partners and partnerships. A partnership as such shall not be
9 subject to tax under this article. Persons carrying on business as part-
10 ners shall be liable for tax under this article only in their separate
11 or individual capacities. Notwithstanding this or any other section of
12 this article, a person's liability for tax under this subsection, if
13 such person's primary activity is in his or her role as a manufacturer,
14 shall be zero for taxable years beginning on or after January first, two
15 thousand nine. For purposes of this section a person shall be classi-
16 fied as a manufacturer if, he or she is principally engaged in the
17 production of goods by manufacturing, processing, assembling, refining,
18 mining, extracting, farming, agriculture, horticulture, floriculture,
19 viticulture or commercial fishing. In addition, for purposes of comput-
20 ing the capital base in a combined report, the group shall be considered
21 a manufacturer for purposes of this article, only if the combined group
22 during the taxable year is principally engaged in the activities set
23 forth in this subsection, or any combination thereof. For purposes of
24 this subsection, a taxpayer is "principally engaged" in the described
25 activity if, during the taxable year, more than fifty percent of the
26 gross receipts of the taxpayer are derived from receipts from activities
27 covered by this subsection. As used in this article, the term "partner-
28 ship" shall include, unless a different meaning is clearly required, a
29 subchapter K limited liability company. The term "subchapter K limited
30 liability company" shall mean a limited liability company classified as
31 a partnership for federal income tax purposes. The term "limited liabil-
32 ity company" means a domestic limited liability company or a foreign
33 limited liability company, as defined in section one hundred two of the
34 limited liability company law, a limited liability investment company
35 formed pursuant to section five hundred seven of the banking law, or a
36 limited liability trust company formed pursuant to section one hundred
37 two-a of the banking law.
38 § 4. Subsection (b) of section 602 of the tax law, as amended by chap-
39 ter 333 of the laws of 1987, is amended to read as follows:
40 (b) The tax imposed by this section on New York minimum taxable
41 income, as defined in section six hundred twenty-two or section six
42 hundred thirty-six, as the case may be, shall be at the rate of six
43 percent, except for, in the case of income derived from activity of a
44 person classified as a manufacturer under subsection (f) of section six
45 hundred one of this part, the tax imposed by this section on New York
46 minimum taxable income for taxable years beginning on or after January
47 first, two thousand nine, shall be zero.
48 § 5. This act shall take effect immediately and shall apply to taxable
49 years commencing on or after January 1, 2009; provided, however, that
50 the commissioner of taxation and finance is authorized to promulgate any
51 and all rules and regulations and take any other measures necessary for
52 the timely implementation of this act on its effective date on or before
53 such date.
54 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
55 sion, section or part of this act shall be adjudged by any court of
56 competent jurisdiction to be invalid, such judgment shall not affect,
A. 3046 16
1 impair, or invalidate the remainder thereof, but shall be confined in
2 its operation to the clause, sentence, paragraph, subdivision, section
3 or part thereof directly involved in the controversy in which such judg-
4 ment shall have been rendered. It is hereby declared to be the intent of
5 the legislature that this act would have been enacted even if such
6 invalid provisions had not been included herein.
7 § 3. This act shall take effect immediately provided, however, that
8 the applicable effective date of Parts A through D of this act shall be
9 as specifically set forth in the last section of such Parts.
