Add Art 18-D SS974 - 974-c, Gen Muni L; amd SS210, 606, 1456 & 1511, Tax L
Enacts the New York state green economic development zones act to offer special incentives and assistance that promote the development of new green businesses and expansion of existing businesses within designated green economic development zones in areas of Staten Island.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A128B
SPONSOR: Cusick (MS) TITLE OF BILL: An act to amend the general municipal law and the tax
law, in relation to enacting the New York state green economic develop-
ment zones act
PURPOSE OR GENERAL IDEA OF BILL: This legislation would create the
Green Enterprise Trade Zone, which is a designated area in the commer-
cial and/or industrial zoned area of Staten Island. It would attract
companies producing goods and services for the Green Environmental Stan-
dards that government is mandating and leverage green business strate-
gies and green technology, with investment tax credits to accelerate
investment in our City and State green tech and clean tech developing
industries.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this bill states the name of the act.
Section 2 of this bill establishes the types of green businesses that
are covered under the act and establishes the Green Zone location within
Staten Island. It also grants the commissioner of economic development
the authority to establish rules and regulations.
Section 3 amends Section 210 of the tax law to allow for a thirty
percent credit of any business or investment capital spent by a qualify-
ing business within the Green Zone.
Sections 4 and 5 amend Section 616 of the tax law to allow for a thirty
percent credit of any business or investment capital spent by a qualify-
ing business within the Green Zone.
Section 6 amends Section 1456 of the tax law to allow for a thirty
percent credit of any business or investment capital spent by a qualify-
ing business within the Green Zone.
Section 7 amends Section 1511 of the tax law to allow for a thirty
percent credit of any business or investment capital spent by a qualify-
ing business within the Green Zone.
Section 8 states that the law shall take effect immediately.
JUSTIFICATION: The NYC Regional Council designated the Staten Island
Green Zone as one of eight priority projects for the City of New York in
its January 2012 report to the Governor. In addition, the Regional Coun-
cil also designated the West Shore of Staten Island, which is home to
the proposed Green Zone, as an "Opportunity Zone" meaning special atten-
tion from Staten funding agencies should be given to this region,
including funding through the Excelsior Tax Credit program. The Federal
Economic Development Administration recently awarded the Staten Island
Economic Development Corporation $120,000 grant to study the proposed
Green Zone.
The Green Zone is a geographically designated area of Staten Island
aimed at attracting companies that produce Green goods and services, or
who utilize Green technology. The Green Zone attracts companies who work
within the sphere of smart growth and environmentally friendly develop-
ment and research. The Green Zone acts as a "go to place" for the entre-
preneur who is prepared to put their technology into production and the
market. Staten Island has a rich history of manufacturing and industrial
production and a strong base for skilled labor. Advances in Green tech-
nology allow for increased and diversified employment and production on
Staten Island. Businesses that take measurable steps in increasing ener-
gy and material efficiency will be the standard-bearers for increased
Green initiatives throughout the region. The Green Zone and the initi-
atives of Green Zone companies will educate local companies and resi-
dents about the Green economy. This education and availability of
resources will allow for efficiency retrofits, professional support and
guidance for companies seeking financial incentives for Green invest-
ment, promote Green Collar job retraining options, improve alternative
energy development, and attract Green businesses that create sustainable
employment opportunities for Islanders.
A Green Enterprise Trade Zone is not unlike a Foreign Trade Zone. The
concept of a Foreign Trade Zone has been part of our economic scheme
since the 1930's. It exempted from tax, merchandise entering and leaving
the Foreign Trade Zone, promotes trade and economic development.
This legislation proposes to establish a Green enterprise Zone to
encourage and develop the green technologies necessary to slow the
outflow of our U.S. dollars to purchase foreign oil, to protect our
environment by encouraging the adoption of green business strategies and
the production of green technology thus creating an area where the
investment community can focus on green product development, as well as
an area where green products can be manufactured. This zone will estab-
lish a location where companies focusing on green economic development
can come together to individually and jointly spur development of a more
green state.
Most importantly, the Green Zone Act will provide a tax credit for the
businesses that invest within it, providing an incentive to relocate
within the zone and create the synergies of locating in a common area.
PRIOR LEGISLATIVE HISTORY: 2012: A.2219-E - Held for consideration in
Ways and Means; S.5491-F died in Finance; 2010: A.10662-Died in Assembly
Economic Development.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
