A03046 Summary:

BILL NOA03046
 
SAME ASNo same as
 
SPONSORKolb (MS)
 
COSPNSROaks, Calhoun, O'Mara, Sayward, Reilich, Finch, Lopez P, Barclay
 
MLTSPNSRBacalles, Butler, Conte, Duprey, Errigo, Molinaro, Quinn
 
Add Art 15 SS270 - 273, Art 17 SS350 - 353, Ec Dev L; add Art 23 SS700 - 702, amd SS606, 210, 208, 209, 601 & 602, Tax L; add S959-c, Gen Muni L
 
Establishes the manufacturing preservation and enhancement act and the office of the New York state homeshoring initiative.
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A03046 Actions:

BILL NOA03046
 
01/22/2009referred to economic development
01/06/2010referred to economic development
04/20/2010held for consideration in economic development
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A03046 Floor Votes:

There are no votes for this bill in this legislative session.
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A03046 Text:



 
                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

        A. 3046                             3
 
     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

        A. 3046                             7
 
     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

        A. 3046                             8
 
     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

        A. 3046                             9
 
     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 credit       Amount 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 under    Amount of MEI wage tax credit
    41  subsection (rr)                      under subdivision forty-two of
    42                                       section two hundred ten
 
    43  (xxxiii) MEI energy tax credit under Amount 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.

        A. 3046                            11
 
     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.

        A. 3046                            13
 
     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.

        A. 3046                            15
 

     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.
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