Establishes the creation of research and development centers; provides tax credits and benefits for research and development enterprises and qualified research production facilities; centers would be modeled after the Empire Zone program.
STATE OF NEW YORK
________________________________________________________________________
5407
2009-2010 Regular Sessions
IN ASSEMBLY
February 13, 2009
___________
Introduced by M. of A. BUTLER -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the general municipal law, in relation to the creation
of research and development centers; to amend the tax law, in relation
to providing tax credits and benefits for research and development
enterprises, qualified research production facilities; and to provide
a research and development wage, expense and grant tax credit and a
certified research and development enterprise credit for real property
taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "research and development centers program".
3 § 2. Section 957 of the general municipal law is amended by adding a
4 new subdivision (v) to read as follows:
5 (v) "Research and development center" shall mean an area within the
6 state that has been designated as a research and development center
7 pursuant to this article.
8 § 3. Section 960 of the general municipal law is amended by adding a
9 new subdivision (f) to read as follows:
10 (f) The empire zone board shall determine the actual geographic bound-
11 aries of research and development centers after a review of proposed
12 boundaries made by resolution of the legislative body of the county in
13 which a designated research and development center is located, or by the
14 city council in the case of the city of New York.
15 § 4. Article 18-B of the general municipal law is amended by adding a
16 new section 970 to read as follows:
17 § 970. Research and development centers. (a) Creation of research and
18 development centers. The research and development center program is
19 hereby created to foster physical, engineering and biological research.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08167-01-9
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1 (b) Purpose. For the purpose of this program, a research and develop-
2 ment establishment shall mean an establishment located in New York state
3 primarily engaged in conducting research and experimental development in
4 the physical, engineering, and life sciences, such as agriculture, elec-
5 tronics, environmental, biology, botany, biotechnology, computers, chem-
6 istry, food, fisheries, forests, geology, health, mathematics, medicine,
7 oceanography, pharmacy, physics, veterinary, and other allied subjects.
8 (c) Responsibilities of the commissioner. The commissioner shall:
9 (1) After consultation with the director of the budget, the commis-
10 sioner of labor, and the commissioner of taxation and finance, promul-
11 gate regulations governing (i) the joint certification by the commis-
12 sioner and the commissioner of labor, as to the eligibility of a
13 business enterprise for benefits set forth in subdivision (e) of this
14 section, provided, however, that a business enterprise that has shifted
15 its operations, or some portion thereof, from an area within New York
16 state not designated as a research and development center to an area so
17 designated shall not be certified to receive such benefits, except where
18 such shift in operations is from a business incubator facility operated
19 by a municipality or by a public or private not-for-profit entity which
20 provides space and business support services to newly established firms;
21 and (ii) the joint revocation by the commissioner and the commissioner
22 of labor of a certificate to receive benefits set forth in subdivision
23 (e) of this section upon a finding that (I) such business enterprise
24 made material misrepresentation of the fact on its application for
25 certification, or such business enterprise failed to disclose facts in
26 its application for certification constituting grounds for refusing to
27 issue certification; (II) the business enterprise has failed to
28 construct, expand, rehabilitate or operate its facility substantially in
29 accordance with the representations contained in its application for
30 certification; (III) the business enterprise has failed to create new
31 employment or prevent a loss of employment in the appropriate research
32 and development center provided, however, that such failure was not due
33 to economic circumstances or conditions which such business could not
34 anticipate or which were beyond its control; where applicable, the busi-
35 ness has failed to submit an annual report after it has applied for
36 center incentives or program assistance based on new hires or invest-
37 ment. Revocation of such certificate shall become effective on the date
38 determined to be the earliest event constituting grounds for revoking
39 such certificate. The commissioner shall notify the commissioner of
40 taxation and finance that such decertification has occurred, and such
41 notification shall include the effective date of such decertification
42 and the center to which decertification applies;
43 (2) Establish a priority for the allocation of authority to issue
44 private activity bonds for the benefit of municipalities and business
45 enterprises located or to be located within a research and development
46 center;
47 (3) Coordinate the research and development center program with state
48 agencies and authorities, the provision of business development programs
49 and services for each research and development center in order to stimu-
50 late the creation and development of new businesses and may request and
51 shall receive from any department, division, board, bureau, commission,
52 agency or public authority of the state such assistance as may be neces-
53 sary; and
54 (4) Recommend for loan and grant programs of the department of econom-
55 ic development and the urban development corporation, special terms and
56 conditions for viable center projects and programs.
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1 (d) Designation of research and development centers. (1) The following
2 seven research and development centers are hereby designated. Each
3 center shall not exceed a total of four square miles in area. Each
4 center must be located within the geographic boundaries of the follow-
5 ing:
6 (i) Erie county,
7 (ii) Monroe county,
8 (iii) Onondaga county,
9 (iv) Albany county, provided however, up to two square miles may be
10 located in Rensselaer county,
11 (v) Broome county, provided however, up to one square mile may be
12 located in Tioga county,
13 (vi) the city of New York,
14 (vii) Nassau county and Suffolk county, provided that no more than two
15 square miles are located in either county.
16 (2) Each center may contain non-contiguous areas, provided that at
17 least one contiguous area is at least one square mile and two contiguous
18 areas are at least one half of one square mile each.
19 (e) Special provisions relating to research and development centers.
20 In addition to the benefits provided in this section, additional bene-
21 fits applicable to research and development centers shall be provided as
22 follows:
23 (1) A refund or credit for increases in employment against the taxes
24 imposed under article nine-A or article twenty-two of the tax law pursu-
25 ant to section twenty-five-a of the tax law;
26 (2) A credit for research and development expenses against the taxes
27 imposed under article nine-A or article twenty-two of the tax law pursu-
28 ant to section twenty-five-b of the tax law;
29 (3) A refund or credit for research and development grants against the
30 taxes imposed under article nine-A or article twenty-two of the tax law
31 pursuant to section twenty-five-c of the tax law;
32 (4) A refund or credit for real property taxes against the taxes
33 imposed under article nine-A or article twenty-two of the tax law pursu-
34 ant to section twenty-five-d of the tax law;
35 (5) Tax benefits provided under the empire zone program;
36 (6) An increase in the rate of the investment tax credit;
37 (7) An exclusion of income for qualified research services for the
38 purpose of the calculation of taxes imposed under article nine-A or
39 article twenty-two of the tax law;
40 (8) An exclusion of income for qualified royalty payments for the
41 purpose of the calculation of taxes imposed under article nine-A or
42 article twenty-two of the tax law.
43 (f) Termination or revision of a research and development center. (1)
44 Except as provided in this section, any designation of an area as a
45 research and development zone shall remain in effect during the period
46 beginning on the date of designation and ending December thirty-first,
47 two thousand twenty-nine.
48 (2) The legislative body of the county in which a designated research
49 and development center is located, or by the city council in the case of
50 the city of New York may, by resolution, submit to the commissioner a
51 request to revise the boundaries of an existing research and development
52 center. The commissioner may, after consulting with the commissioner of
53 labor, approve such revision subject to the following provisions:
54 (i) The commissioner may grant approval of revision of the borders of
55 a research and development center without prior public notice and with-
56 out prior public hearing if such revision adds territory to an existing
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1 research and development center, but does not remove territory from such
2 center.
3 (ii) The commissioner may grant approval of a revision of the borders
4 of a research and development center after public notice of such
5 revision and a public hearing at least thirty days prior to the effec-
6 tive date of such revision, if such revision removes territory from an
7 existing research and development center.
8 (iii) The revision of the borders of a research and development center
9 shall have no effect on the duration of the designation of the research
10 and development center as provided in paragraph one of this subdivision.
11 § 5. The tax law is amended by adding five new sections 25-a, 25-b,
12 25-c, 25-d and 25-e to read as follows:
13 § 25-a. Research and development wage credit. (a) Allowance of credit.
14 A taxpayer which is a certified research and development enterprise
15 (CRDE), and which is subject to tax under article nine-A or twenty-two
16 of this chapter, shall be allowed a credit against such tax, pursuant to
17 the provisions referenced in subdivision (d) of this section, to be
18 computed as hereinafter provided.
19 (b) Definitions. (1) The term "certified research and development
20 enterprise" or "CRDE" shall mean a business facility which during the
21 taxable year is principally engaged in conducting research and develop-
22 ment in the physical, engineering, and life sciences and which has been
23 designated under section nine hundred seventy of the general municipal
24 law.
25 (2) The term "certified research production facility" or "CRPF" shall
26 mean a business facility built in New York state in conjunction with a
27 CRDE to produce or manufacture products which have been or are being
28 developed at the CRDE, provided that the CRPF is established after the
29 designation of the CRDE, and which has been designated under section
30 nine hundred seventy of the general municipal law.
31 (3) The term "research and development job" shall mean an individual
32 employed full time for at least one-half of a taxable year at a CRDE in
33 which the primary job function of the individual is classified as
34 research and development in the physical, engineering, and life sciences
35 under the North American industry classification system.
36 (4) The term "research production job" shall mean an individual
37 employed full time for at least one-half of a taxable year at a CRPF in
38 which the primary job function of the individual is classified as manu-
39 facturing under the North American industry classification system.
40 (5) The term "employment increase year" shall mean the taxable year in
41 which the increase in employment for which this credit is claimed
42 occurs.
43 (6) The term "base year" shall mean the taxable year immediately
44 preceding the employment increase year.
45 (7) The term "employment increase level" shall mean the difference
46 between the employment number in the employment increase year and the
47 employment number in the base year. If employment increase level is less
48 than zero in any taxable year, it shall be assumed to be zero.
49 (8) The term "employment number" shall mean the average number of
50 research and development jobs at a CRDE and research production jobs at
51 a CRPF. Such number shall be computed by determining the number of such
52 qualified individuals employed by the taxpayer on the thirty-first day
53 of March, the thirtieth day of June, the thirtieth day of September and
54 the thirty-first day of December during the applicable taxable year,
55 adding together the number of such individuals determined to be so
56 employed on each of such dates and dividing the sum so obtained by the
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1 number of such dates occurring within such applicable taxable year. Such
2 number shall not include individuals employed within the immediately
3 preceding sixty months by a related person to the taxpayer, as such term
4 "related person" is defined in subparagraph (c) of paragraph three of
5 subsection (b) of section four hundred sixty-five of the internal reven-
6 ue code.
7 (9) The term "total wages" shall mean the total salaries and wages
8 paid to employees included in the calculation of the employment number
9 in the employment increase year.
10 (10) The term "average wages" shall mean total wages divided by the
11 employment number in the employment increase year.
12 (c) Application of the credit. (1) The amount of credit shall equal
13 the product (or pro rata share of the product, in the case of a member
14 of a partnership) of five percent of the average wages and the employ-
15 ment increase level.
16 (2) The credit may be allowed in the employment increase year and the
17 four taxable years immediately following the employment increase year,
18 provided that if the employment number in any taxable year in which the
19 credit is claimed is less than the employment number in the employment
20 increase year, the amount of credit must be recalculated by substituting
21 the lower employment number in the current taxable year for the employ-
22 ment number in the employment increase year for the purpose of calculat-
23 ing the employment increase level and this lower employment number shall
24 be deemed to be the employment number for the employment increase year
25 for any future application of this credit.
26 (d) Cross-references. For application of the credit provided for in
27 this section, see the following provisions of this chapter:
28 (1) Article 9-A: Section 210: subdivision 41,
29 (2) Article 22: Section 606: subsection (qq).
30 § 25-b. Research and development expense credit. (a) Allowance of
31 credit. A taxpayer which is a certified research and development enter-
32 prise (CRDE), and which is subject to tax under article nine-A or twen-
33 ty-two of this chapter, shall be allowed a credit against such tax,
34 pursuant to the provisions referenced in subdivision (d) of this
35 section, to be computed as hereinafter provided.
36 (b) Definitions. (1) The term "certified research and development
37 enterprise" or "CRDE" shall have the same meaning as defined by section
38 twenty-five-a of this article.
39 (2) The term "qualified research and development expense" shall mean
40 any expense incurred at a CRDE to conduct research and development in
41 the physical, engineering, and life sciences, such as agriculture, elec-
42 tronics, environmental, biology, botany, biotechnology, computers, chem-
43 istry, food, fisheries, forests, geology, health, mathematics, medicine,
44 oceanography, pharmacy, physics, veterinary, and other allied subjects.
45 Qualified research and development expenses shall not include the cost
46 of labor or any equipment for which any investment tax credits are
47 claimed for.
48 (c) Application of the credit. The amount of credit shall equal the
49 product (or pro rata share of the product, in the case of a member of a
50 partnership) of five percent of qualified research and development
51 expenses.
52 (d) Cross-references. For application of the credit provided for in
53 this section, see the following provisions of this chapter:
54 (1) Article 9-A: Section 210: subdivision 42,
55 (2) Article 22: Section 606: subsection (rr).
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1 § 25-c. Research and development grant credit. (a) Allowance of cred-
2 it. A taxpayer which is a certified research and development enterprise
3 (CRDE), and which is subject to tax under article nine-A or twenty-two
4 of this chapter, shall be allowed a credit against such tax, pursuant to
5 the provisions referenced in subdivision (d) of this section, to be
6 computed as hereinafter provided.
7 (b) Definitions. (1) The term "certified research and development
8 enterprise" or "CRDE" shall have the same meaning as defined by section
9 twenty-five-a of this article.
10 (2) The term "university research center" shall mean any department,
11 foundation, or business venture operated solely by any institution of
12 higher education located in New York state, recognized and approved by
13 the regents, or any successor organization, of the university of the
14 state of New York which provides a course of study leading to the grant-
15 ing of a post-secondary degree, certificate or diploma.
16 (3) The term "qualified research and development grant" shall mean
17 donation of money or equipment by a CRDE to a university research center
18 which will facilitate or assist the university research center to
19 conduct research and development which is substantially related to the
20 research and development activities of the CRDE.
21 (c) Application of the credit. The amount of credit shall equal the
22 product (or pro rata share of the product, in the case of a member of a
23 partnership) of ten percent of qualified research and development
24 grants.
25 (d) Cross-references. For application of the credit provided for in
26 this section, see the following provisions of this chapter:
27 (1) Article 9-A: Section 210: subdivision 43,
28 (2) Article 22: Section 606: subsection (ss).
29 § 25-d. Credit for real property taxes. (a) Allowance of credit. A
30 taxpayer which is a certified research and development enterprise
31 (CRDE), and which is subject to tax under article nine-A or twenty-two
32 of this chapter, shall be allowed a credit against such tax, pursuant to
33 the provisions referenced in subdivision (l) of this section, for eligi-
34 ble real property taxes.
35 (b) Amount of credit. The amount of the credit shall be the product
36 (or pro rata share of the product, in the case of a member of a partner-
37 ship) of (i) the benefit period factor, (ii) the employment increase
38 factor and (iii) the eligible real property taxes paid or incurred by
39 the CRDE during the taxable year. However, the amount of the credit may
40 not exceed the credit limitation set forth in subdivision (j) of this
41 section.
42 (c) Benefit period factor. The benefit period factors are set forth in
43 the following table:
44 Taxable year of theBenefit period factor:
45 benefit period:
46 1--101.0
47 11.8
48 12.6
49 13.4
50 14.2
51 150
52 (d) Research and development job. The term "research and development
53 job" shall have the same meaning as defined by section twenty-five-a of
54 this article.
55 (e) Center employment increase number. The center employment increase
56 number is the average number of research and development jobs at a CRDE.
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1 Such number shall be computed by determining the number of such quali-
2 fied individuals employed by the taxpayer on the thirty-first day of
3 March, the thirtieth day of June, the thirtieth day of September and the
4 thirty-first day of December during the applicable taxable year, adding
5 together the number of such individuals determined to be so employed on
6 each of such dates and dividing the sum so obtained by the number of
7 such dates occurring within such applicable taxable year. Such number
8 shall not include individuals employed within the immediately preceding
9 sixty months by a related person to the taxpayer, as such term "related
10 person" is defined in subparagraph (c) of paragraph three of subsection
11 (b) of section four hundred sixty-five of the internal revenue code.
12 (f) Base year. The base year is the taxable year in which a CRDE is
13 first certified pursuant to section nine hundred seventy of the general
14 municipal law.
15 (g) Center employment increase number. The center employment increase
16 number shall equal the center employment number in the taxable year
17 minus the center employment number in the base year. The center employ-
18 ment increase number shall be deemed to be zero if the calculation of
19 the center employment increase number results in a negative number.
20 (h) Employment increase factor. The employment increase factors are
21 set forth in the following table:
22 Center employment increase number:Employment increase factor:
23 At least 1501.0
24 At least 100 but less than 150: .8
25 At least 75 but less than 100: .6
26 At least 50 but less than 75: .4
27 At least 25 but less than 50: .2
28 At least 10 but less than 25: .1
29 Zero 0
30 (i) Eligible real property taxes. The term "eligible real property
31 taxes" means taxes imposed on real property which is owned by the CRDE
32 and located in a research and development center with respect to which
33 the CRDE is certified pursuant to article eighteen-B of the general
34 municipal law, provided such taxes become a lien on the real property
35 during a taxable year in which the owner of the real property is both
36 certified pursuant to article eighteen-B of the general municipal law
37 and a qualified empire zone enterprise. In addition, the term "eligible
38 real property taxes" includes payments in lieu of taxes made by the CRDE
39 to the state, a municipal corporation or a public benefit corporation
40 pursuant to a written agreement entered into between the CRDE and the
41 state, municipal corporation, or public benefit corporation. Provided,
42 however, a payment in lieu of taxes made by the CRDE pursuant to a writ-
43 ten agreement executed or amended on or after January first, two thou-
44 sand six, shall not constitute eligible real property taxes unless such
45 written agreement is approved by both the department of economic devel-
46 opment and the office of real property services as satisfying generally
47 accepted and recognized norms and standards of real property tax
48 appraisals.
49 (j) The credit limitation shall be the greater of the employment
50 increase limitation. The employment increase limitation shall be the
51 product of (i) five thousand dollars and (ii) the employment increase
52 number.
53 (k) Credit recapture. Where a CRDE's eligible real property taxes
54 which were the basis for the allowance of the credit provided for under
55 this section are subsequently reduced as a result of a final order in
56 any proceeding under article seven of the real property tax law or other
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1 provision of law, the taxpayer shall add back, in the taxable year in
2 which such final order is issued, the excess of (i) the amount of credit
3 originally allowed for a taxable year over (ii) the amount of credit
4 determined based upon the reduced eligible real property taxes. If such
5 final order reduces real property taxes for more than one year, the
6 taxpayer must determine how much of such reduction is attributable to
7 each year covered by such final order and calculate the amount of credit
8 which is required by this subdivision to be recaptured for each year
9 based on such reduction.
10 (l) Cross-references. For application of the credit provided for in
11 this section, see the following provisions of this chapter:
12 (1) Article 9-A: Section 210: subdivision 44,
13 (2) Article 22: Section 606: subsection (tt).
14 § 25-e. Research production facility program. (a) Qualified research
15 production facility (QRPF). A business enterprise which has been desig-
16 nated as a certified research production facility pursuant to section
17 nine hundred seventy of the general municipal law, as defined by section
18 twenty-five-a of this article, shall be a qualified research production
19 facility for the taxable years and the fourteen taxable years next
20 following the taxable year in which such designation was made. The site
21 of the qualified research production facility shall be a qualified
22 research production site.
23 (b) Tax benefits. A qualified research production facility shall be
24 eligible for all tax benefits available under this chapter in regard to
25 an empire zone, including, but not limited to, all tax benefits for
26 which a qualified empire zone enterprise is eligible, except empire zone
27 capital tax credits provided pursuant to subdivision twenty of section
28 two hundred ten, subsection (d) of section fourteen hundred fifty-six,
29 or subsection (1) of section six hundred six of this chapter.
30 (c) Application. For purposes of applying this section, wherever the
31 terms "empire zone" and "qualified empire zone enterprise" appear in
32 this chapter, such terms shall be read as "qualified production facili-
33 ty" and as "qualified research production facility" respectively and
34 such other modifications may be made by the commissioner as are neces-
35 sary to adapt provisions relating to empire zones and qualified empire
36 zone enterprises to qualified research production facilities. Further,
37 the employment test set forth in subdivision (b) of section fourteen of
38 this article shall be disregarded and the employment increase factors
39 set forth in subdivision (d) of section sixteen of this article shall be
40 replaced by the employment factor set forth in subdivision (d) of this
41 section.
42 (d) QRPF employment factor. The employment increase factors are set
43 forth in the following table:
44 Number of full-time employees at theEmployment increase factor:
45 qualified research production facility:
46 At least 1501.0
47 At least 100 but less than 150: .8
48 At least 75 but less than 100: .6
49 At least 50 but less than 75: .4
50 At least 25 but less than 50: .2
51 Less than 25: 0
52 (e) QEZE option. If the qualified production facility is located in
53 whole or in part in an area designated as an empire zone pursuant to
54 article eighteen-B of the general municipal law and the taxpayer meets
55 the qualification to be both a qualified empire zone enterprise and a
56 qualified research production facility, the taxpayer shall be required
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1 in the first taxable year in which benefits under either status are
2 available to make an irrevocable election to be either a qualified
3 empire zone enterprise or to be a qualified research production facili-
4 ty. Such election shall be made with the filing of the return or report
5 required of the taxpayer under this chapter.
6 § 6. Section 210 of the tax law is amended by adding four new subdivi-
7 sions 41, 42, 43 and 44 to read as follows:
8 41. Research and development wage credit. (a) Allowance of credit. A
9 taxpayer shall be allowed a credit, to be computed as provided in
10 section twenty-five-a of this chapter, against the tax imposed by this
11 article.
12 (b) Application of credit. The credit allowed under this subdivision
13 for any taxable year shall not reduce the tax due for such year to less
14 than the higher of the amounts prescribed in paragraphs (c) and (d) of
15 subdivision one of this section. However, if the amount of credit
16 allowed under this subdivision for any taxable year reduces the tax to
17 such amount, any amount of credit thus not deductible in such taxable
18 year shall be treated as an overpayment of tax to be credited or
19 refunded in accordance with the provisions of section ten hundred eight-
20 y-six of this chapter. Provided, however, the provisions of subsection
21 (c) of section ten hundred eighty-eight of this chapter notwithstanding,
22 no interest shall be paid thereon.
23 42. Research and development expense credit. (a) Allowance of credit.
24 A taxpayer shall be allowed a credit, to be computed as provided in
25 section twenty-five-b of this chapter, against the tax imposed by this
26 article.
27 (b) Application of credit. The credit allowed under this subdivision
28 for any taxable year shall not reduce the tax due for such year to less
29 than the higher of the amounts prescribed in paragraphs (c) and (d) of
30 subdivision one of this section. However, if the amount of credit or
31 carryovers of such credit, or both, allowed under this subdivision for
32 any taxable year reduces the tax to such amount, any amount of the cred-
33 it or carryovers of such credit thus not deducted in such taxable years
34 may be carried over to the following year or years and may be deducted
35 from tax for such year or years.
36 43. Research and development grant credit. (a) Allowance of credit. A
37 taxpayer shall be allowed a credit, to be computed as provided in
38 section twenty-five-c of this chapter, against the tax imposed by this
39 article.
40 (b) Application of credit. The credit allowed under this subdivision
41 for any taxable year shall not reduce the tax due for such year to less
42 than the higher of the amounts prescribed in paragraphs (c) and (d) of
43 subdivision one of this section. However, if the amount of credit
44 allowed under this subdivision for any taxable year reduces the tax to
45 such amount, any amount of credit thus not deductible in such taxable
46 year shall be treated as an overpayment of tax to be credited or
47 refunded in accordance with the provisions of section ten hundred eight-
48 y-six of this chapter. Provided, however, the provisions of subsection
49 (c) of section ten hundred eighty-eight of this chapter notwithstanding,
50 no interest shall be paid thereon.
51 44. CRDE credit for real property taxes. (a) Allowance of credit. A
52 taxpayer shall be allowed a credit, to be computed as provided in
53 section twenty-five-d of this chapter, against the tax imposed by this
54 article.
55 (b) Application of credit. The credit allowed under this subdivision
56 for any taxable year shall not reduce the tax due for such year to less
A. 5407 10
1 than the higher of the amounts prescribed in paragraphs (c) and (d) of
2 subdivision one of this section. However, if the amount of credit
3 allowed under this subdivision for any taxable year reduces the tax to
4 such amount, any amount of credit thus not deductible in such taxable
5 year shall be treated as an overpayment of tax to be credited or
6 refunded in accordance with the provisions of section ten hundred eight-
7 y-six of this chapter. Provided, however, the provisions of subsection
8 (c) of section ten hundred eighty-eight of this chapter notwithstanding,
9 no interest shall be paid thereon.
10 § 7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
11 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
12 the laws of 2008, is amended to read as follows:
13 (B) shall be treated as the owner of a new business with respect to
14 such share if the corporation qualifies as a new business pursuant to
15 paragraph (j) of subdivision twelve of section two hundred ten of this
16 chapter.
17 The corporation's credit base under
18 section two hundred ten or section
19 With respect to the following fourteen hundred fifty-six of this
20 credit under this section: chapter is:
21 (i) Investment tax credit under Investment credit base or qualified
22 subsection (a) rehabilitation expenditures under
23 subdivision twelve of section two
24 hundred ten
25 (ii) Empire zone investment Cost or other basis under
26 tax credit under subsection (j) subdivision twelve-B of section
27 two hundred ten
28 (iii) Empire zone wage tax credit Eligible wages under subdivision
29 under subsection (k) nineteen of section two hundred
30 ten or subsection (e) of section
31 fourteen hundred fifty-six
32 (iv) Empire zone capital tax Qualified investments and
33 credit under subsection (l) contributions under subdivision
34 twenty of section two hundred ten
35 or subsection (d) of section
36 fourteen hundred fifty-six
37 (v) Agricultural property tax Allowable school district property
38 credit under subsection (n) taxes under subdivision twenty-two
39 of section two hundred ten
40 (vi) Credit for employment of Qualified first-year wages or
41 persons with disabilities qualified second-year wages under
42 under subsection (o) subdivision twenty-three of
43 section two hundred ten or
44 subsection (f) of section
45 fourteen hundred fifty-six
46 (vii) Employment incentive credit Applicable investment credit base
47 under subsection (a-1) under subdivision twelve-D of
48 section two hundred ten
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1 (viii) Empire zone employment Applicable investment credit
2 incentive credit under subsection under subdivision twelve-C of
3 (j-1) section two hundred ten
4 (ix) Alternative fuels credit Cost under subdivision twenty-four
5 under subsection (p) of section two hundred ten
6 (x) Qualified emerging technology Applicable credit base under
7 company employment credit under subdivision twelve-E of section
8 subsection (q) two hundred ten
9 (xi) Qualified emerging technology Qualified investments under
10 company capital tax credit under subdivision twelve-F of section
11 subsection (r) two hundred ten
12 (xii) Credit for purchase of an Cost of an automated external
13 automated external defibrillator defibrillator under subdivision
14 under subsection (s) twenty-five of section two hundred
15 ten or subsection (j) of section
16 fourteen hundred fifty-six
17 (xiii) Low-income housing credit Credit amount under subdivision
18 under subsection (x) thirty of section two hundred ten
19 or subsection (l) of section
20 fourteen hundred fifty-six
21 (xiv) Credit for transportation Amount of credit under subdivision
22 improvement contributions under thirty-two of section two hundred
23 subsection (z) ten or subsection (n) of section
24 fourteen hundred fifty-six
25 (xv) QEZE credit for real property Amount of credit under subdivision
26 taxes under subsection (bb) twenty-seven of section two hundred
27 ten or subsection (o) of section
28 fourteen hundred fifty-six
29 (xvi) QEZE tax reduction credit Amount of benefit period factor,
30 under subsection (cc) employment increase factor and zone
31 allocation factor (without regard
32 to pro ration) under subdivision
33 twenty-eight of section two hundred
34 ten or subsection (p) of section
35 fourteen hundred fifty-six and
36 amount of tax factor as determined
37 under subdivision (f) of section
38 sixteen
39 (xvii) Green building credit under Amount of green building credit
40 subsection (y) under subdivision thirty-one of
41 section two hundred ten or
42 subsection (m) of section fourteen
43 hundred fifty-six
44 (xviii) Credit for long-term care Qualified costs under subdivision
45 insurance premiums under subsection twenty-five-a of section two
46 (aa) hundred ten or subsection (k) of
A. 5407 12
1 section fourteen hundred fifty-six
2 (xix) Brownfield redevelopment Amount of credit under subdivision
3 credit under subsection (dd) thirty-three of section two hundred
4 ten or subsection (q) of section
5 fourteen hundred fifty-six
6 (xx) Remediated brownfield credit Amount of credit under subdivision
7 for real property taxes for thirty-four of section two hundred
8 qualified sites under subsection ten or subsection (r) of section
9 (ee) fourteen hundred fifty-six
10 (xxi) Environmental remediation Amount of credit under subdivision
11 insurance credit under subsection thirty-five of section two hundred
12 (ff) ten or subsection (s) of section
13 fourteen hundred fifty-six
14 (xxii) Empire state film production Amount of credit for qualified
15 credit under subsection (gg) production costs in production of a
16 qualified film under subdivision
17 thirty-six of section two hundred
18 ten
19 (xxiii) Qualified emerging Qualifying expenditures and
20 technology company facilities, development activities under
21 operations and training credit subdivision twelve-G of section two
22 under subsection (nn) hundred ten
23 (xxiv) Security training tax credit Amount of credit under subdivision
24 under subsection (ii) thirty-seven of section two hundred
25 ten or under subsection (t) of
26 section fourteen hundred fifty-six
27 (xxv) Credit for qualified fuel Amount of credit under subdivision
28 cell electric generating equipment thirty-seven of section two hundred
29 expenditures under subsection (g-2) ten or subsection (t) of section
30 fourteen hundred fifty-six
31 (xxvi) Empire state commercial Amount of credit for qualified
32 production credit under subsection production costs in production of
33 (jj) a qualified commercial under
34 subdivision thirty-eight of
35 section two hundred ten
36 (xxvii) Biofuel production tax Amount of credit under subdivision
37 credit under subsection (jj) thirty-eight of section two hundred
38 ten
39 (xxviii) Clean heating fuel credit Amount of credit under subdivision
40 under subsection (mm) thirty-nine of section two hundred
41 ten
42 (xxix) Credit for rehabilitation Amount of credit under subdivision
43 of historic properties under forty of [subsection] section
44 subsection (oo) two hundred ten
A. 5407 13
1 (xxx) Credit for companies who Amount of credit under subdivision
2 provide transportation to forty of section two hundred ten
3 individuals with disabilities under
4 subsection (oo)
5 (xxxi) Research andAmount of credit under
6 development wagesubdivision forty-one
7 credit under subsectionof section two hundred
8 (qq)ten
9 (xxxii) Research andAmount of credit under
10 development expensesubdivision forty-two
11 credit under subsectionof section two hundred
12 (rr)ten
13 (xxxiii) Research andAmount of credit under
14 development grantsubdivision forty-three
15 credit under subsectionof section two hundred
16 (ss)ten
17 (xxxiv) CRDE credit for realAmount of credit under
18 property taxes undersubdivision forty-four
19 subsection (tt)of section two hundred
20 ten
21 § 8. Section 606 of the tax law is amended by adding four new
22 subsections (qq), (rr), (ss) and (tt) to read as follows:
23 (qq) Research and development wage credit. (1) Allowance of credit. A
24 taxpayer shall be allowed a credit, to be computed as provided in
25 section twenty-five-a of this chapter, against the tax imposed by this
26 article.
27 (2) Application of credit. If the amount of the credit allowed under
28 this subsection for any taxable year shall exceed the taxpayer's tax for
29 such year, the excess shall be treated as an overpayment of tax to be
30 credited or refunded in accordance with the provisions of section six
31 hundred eighty-six of this article, provided, however, that no interest
32 shall be paid thereon.
33 (rr) Research and development expense credit. (1) Allowance of credit.
34 A taxpayer shall be allowed a credit, to be computed as provided in
35 section twenty-five-b of this chapter, against the tax imposed by this
36 article.
37 (2) Application of credit. If the amount of the credit and carryovers
38 of such credit allowed under this subsection for any taxable year shall
39 exceed the taxpayer's tax for such year, the excess, as well as any part
40 of the credit or carryovers of such credit, or both, may be carried over
41 to the following year or years and may be deducted from the taxpayer's
42 tax for such year or years.
43 (ss) Research and development grant credit. (1) Allowance of credit.
44 A taxpayer shall be allowed a credit, to be computed as provided in
45 section twenty-five-c of this chapter, against the tax imposed by this
46 article.
47 (2) Application of credit. If the amount of the credit allowed under
48 this subsection for any taxable year shall exceed the taxpayer's tax for
49 such year, the excess shall be treated as an overpayment of tax to be
50 credited or refunded in accordance with the provisions of section six
51 hundred eighty-six of this article, provided, however, that no interest
52 shall be paid thereon.
A. 5407 14
1 (tt) CRDE credit for real property taxes. (1) Allowance of credit. A
2 taxpayer shall be allowed a credit, to be computed as provided in
3 section twenty-five-d of this chapter, against the tax imposed by this
4 article.
5 (2) Application of credit. If the amount of the credit allowed under
6 this subsection for any taxable year shall exceed the taxpayer's tax for
7 such year, the excess shall be treated as an overpayment of tax to be
8 credited or refunded in accordance with the provisions of section six
9 hundred eighty-six of this article, provided, however, that no interest
10 shall be paid thereon.
11 § 9. Paragraph (a) of subdivision 12 of section 210 of the tax law, as
12 amended by chapter 817 of the laws of 1987, is amended to read as
13 follows:
14 (a) A taxpayer shall be allowed a credit, to be computed as hereinaft-
15 er provided, against the tax imposed by this article. The amount of the
16 credit shall be the per cent provided for hereinbelow of the investment
17 credit base. The investment credit base is the cost or other basis for
18 federal income tax purposes of tangible personal property and other
19 tangible property, including buildings and structural components of
20 buildings, described in paragraph (b) of this subdivision, less the
21 amount of the nonqualified nonrecourse financing with respect to such
22 property to the extent such financing would be excludible from the cred-
23 it base pursuant to section 46(c)(8) of the internal revenue code
24 (treating such property as section thirty-eight property irrespective of
25 whether or not it in fact constitutes section thirty-eight property).
26 If, at the close of a taxable year following the taxable year in which
27 such property was placed in service, there is a net decrease in the
28 amount of nonqualified nonrecourse financing with respect to such prop-
29 erty, such net decrease shall be treated as if it were the cost or other
30 basis of property described in paragraph (b) of this subdivision
31 acquired, constructed, reconstructed or erected during the year of the
32 decrease in the amount of nonqualified nonrecourse financing. In the
33 case of a combined report the term investment credit base shall mean the
34 sum of the investment credit base of each corporation included on such
35 report. The percentage to be used to compute the credit allowed pursuant
36 to this subdivision shall be that percentage appearing in column two
37 which is opposite the appropriate period in column one in which the
38 tangible personal property was acquired, constructed, reconstructed or
39 erected, as the case may be:
40 Column 1 Column 2
41 After December 31, 1968 and
42 prior to January 1, 1974 one per cent
43 After December 31, 1973 and
44 prior to January 1, 1978 two per cent
45 After December 31, 1977 and
46 prior to January 1, 1979 three per cent
47 After December 31, 1978 and
48 prior to June 1, 1981 four per cent
49 After May 31, 1981 and
50 prior to July 1, 1982 five per cent
51 After June 30, 1982 and
52 prior to January 1, 1987 six per cent
53 For taxable years five per cent with respect
54 beginning in 1987, to the first five hundred
55 1988 and 1989 million dollars of the
A. 5407 15
1 investment credit base, and
2 four percent with respect to
3 the investment credit base in
4 excess of five hundred million
5 dollars, except that in the case
6 of research and development
7 property at the option of the
8 taxpayer the applicable per-
9 centage shall be nine
10 For taxable years beginning
11 in 1990 five percent with respect to the
12 first four hundred twenty-five
13 million dollars of the investment
14 credit base, and four percent
15 with respect to the investment
16 credit base in excess of four
17 hundred twenty-five million
18 dollars, except that in the
19 case of research and
20 development property at the
21 option of the taxpayer the
22 applicable percentage shall
23 be nine
24 For taxable years beginning
25 after 1990 but before 2010 five percent with respect to
26 the first three hundred fifty
27 million dollars of the invest-
28 ment credit base, and four percent
29 with respect to the investment
30 credit base in excess of three
31 hundred fifty million dollars,
32 except that in the case of
33 research and development
34 property at the option of the
35 taxpayer the applicable
36 percentage shall be nine
37 For taxable years beginningfive percent with respect to the
38 after 2009first three hundred fifty million
39 dollars of the investment credit
40 base, and four percent with respect
41 to the investment credit base in
42 excess of three hundred fifty
43 million dollars, except that in the
44 case of research and development
45 property at the option of the
46 taxpayer the applicable percentage
47 shall be nine, and that in the case
48 of research and development property
49 located within a research and
50 development zone at the option
51 of the taxpayer the applicable
52 percentage shall be eighteen
53 Provided, however, that in the case of an acquisition, construction,
54 reconstruction or erection which was commenced in any one period and
55 continued or completed in any subsequent period the credit shall be the
56 sum of the portions of the investment credit base attributable to each
A. 5407 16
1 such period, which portion with respect to each such period shall be
2 ascertained by multiplying such investment credit base by a fraction the
3 numerator of which shall be the expenditures paid or incurred during
4 such period for such purposes and the denominator of which shall be the
5 total of all expenditures paid or incurred for such acquisition,
6 construction, reconstruction or erection, multiplied by the allowable
7 percentage for each such period.
8 § 10. Paragraph 1 of subsection (a) of section 606 of the tax law, as
9 amended by chapter 170 of the laws of 1994, is amended to read as
10 follows:
11 (1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
12 er provided, against the tax imposed by this article. The amount of the
13 credit shall be the per cent provided for hereinbelow of the investment
14 credit base. The investment credit base is the cost or other basis, for
15 federal income tax purposes, of tangible personal property and other
16 tangible property, including buildings and structural components of
17 buildings, described in paragraph two of this subsection, less the
18 amount of the nonqualified nonrecourse financing with respect to such
19 property to the extent such financing would be excludible from the cred-
20 it base pursuant to section 46(c)(8) of the internal revenue code
21 (treating such property as section thirty-eight property irrespective of
22 whether or not it in fact constitutes section thirty-eight property).
23 If, at the close of a taxable year following the taxable year in which
24 such property was placed in service, there is a net decrease in the
25 amount of nonqualified nonrecourse financing with respect to such prop-
26 erty, such net decrease shall be treated as if it were the cost or other
27 basis of property described in paragraph two of this subsection
28 acquired, constructed, reconstructed or erected during the year of the
29 decrease in the amount of nonqualified nonrecourse financing. The
30 percentage to be used to compute the credit allowed pursuant to this
31 subsection shall be that percentage appearing in column two which is
32 opposite the appropriate period in column one in which the tangible
33 personal property was acquired, constructed, reconstructed or erected,
34 as the case may be:
35 Column 1 Column 2
36 After December 31, 1968 and
37 prior to January 1, 1974 one per cent
38 After December 31, 1973 and
39 prior to January 1, 1978 two per cent
40 After December 31, 1977 and
41 prior to January 1, 1979 three per cent
42 After December 31, 1978 and
43 prior to June 1, 1981 four per cent
44 After May 31, 1981 and
45 prior to July 1, 1982 five per cent
46 After June 30, 1982 and
47 before January 1, 1987 six per cent
48 After December 31, 1986 four per cent, except that in the
49 and before January case of research and
50 1, 2010 development property the applicable
51 percentage shall be seven
52 After December 31, 2010four per cent, except that in the
53 case of research and
54 development property the applicable
A. 5407 17
1 percentage shall be seven, and that
2 in the case of research and
3 development property located within
4 a research and development zone the
5 applicable percentage shall be fourteen
6 Provided, however, that in the case of an acquisition, construction,
7 reconstruction or erection which was commenced in any one period and
8 continued or completed in any subsequent period the credit shall be the
9 sum of the portions of the investment credit base attributable to each
10 such period, which portion with respect to each such period shall be
11 ascertained by multiplying such investment credit base by a fraction the
12 numerator of which shall be the expenditures paid or incurred during
13 such period for such purposes and the denominator of which shall be the
14 total of all expenditures paid or incurred for such acquisition,
15 construction, reconstruction or erection, multiplied by the allowable
16 percentage for each such period.
17 § 11. Paragraph (a) of subdivision 9 of section 208 of the tax law is
18 amended by adding two new subparagraphs 18 and 19 to read as follows:
19 (18) In the case of a certified research and development enterprise
20 which has been designated under section nine hundred seventy of the
21 general municipal law, an amount equal to fifty percent of any payments
22 received to conduct research and development activities which are
23 conducted within a research and development zone, less any deductible
24 expenses incurred to conduct the research and development activity.
25 (19) In the case of a certified research and development enterprise
26 which has been designated under section nine hundred seventy of the
27 general municipal law, an amount equal to twenty percent of any royalty
28 payments received on patents derived from research and development
29 activities conducted within a research and development zone.
30 § 12. Subsection (c) of section 612 of the tax law is amended by
31 adding two new paragraphs 39 and 40 to read as follows:
32 (39) In the case of a certified research and development enterprise
33 which has been designated under section nine hundred seventy of the
34 general municipal law, an amount equal to fifty percent of any payments
35 received to conduct research and development activities which are
36 conducted within a research and development zone, less any deductible
37 expenses incurred to conduct the research and development activity.
38 (40) In the case of a certified research and development enterprise
39 which has been designated under section nine hundred seventy of the
40 general municipal law, an amount equal to twenty percent of any royalty
41 payments received on patents derived from research and development
42 activities conducted within a research and development zone.
43 § 13. This act shall take effect immediately and shall apply to taxa-
44 ble years beginning on and after January 1, 2010; provided, however that
45 the empire state film production credit under subsection (gg), the
46 empire state commercial production credit under subsection (jj) and the
47 credit for companies who provide transportation to individuals with
48 disabilities under subsection (oo) of section 606 of the tax law
49 contained in section seven of this act shall expire on the same date as
50 provided in section 9 of part P of chapter 60 of the laws of 2004, as
51 amended, section 10 of part V of chapter 62 of the laws of 2006, as
52 amended, and section 5 of chapter 522 of the laws of 2006, as amended,
53 respectively.
