Add §§50 & 187-s, amd §1511, Tax L; add §99-uu, St Fin L
Establishes the New York rural growth fund tax credit and the New York rural growth fund; provides that individuals who develop a business plan to invest in rural business in New York and have successfully solicited private investors to make capital contributions in support of such business plan may apply to the department of economic development for certification as a rural business growth fund; provides that if approved, tax credits shall be issued in an aggregate amount equal to seventy percent of the eligible investment authority; defines terms; provides for penalties; requires reporting.
STATE OF NEW YORK
________________________________________________________________________
9249
IN SENATE
February 18, 2026
___________
Introduced by Sen. C. RYAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law and the state finance law, in relation to
establishing the New York rural growth fund tax credit and the New
York rural growth fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 50 to read
2 as follows:
3 § 50. New York rural growth fund credit. (a) Definitions. For purposes
4 of this section, the following terms shall have the following meanings:
5 (1) "Affiliate" means a person that, directly or indirectly through
6 one or more intermediaries, controls, is controlled by, or is under
7 common control with another person. For the purposes of this paragraph,
8 a person is "controlled by" another person if the controlling person
9 holds, directly or indirectly, the majority voting or ownership interest
10 in the controlled person or has control over the day-to-day operations
11 of the controlled person by contract or by law.
12 (2) "Closing date" means the date on which a rural business growth
13 fund has collected all of the amounts specified by subparagraphs (A) and
14 (B) of paragraph seven of subdivision (b) of this section.
15 (3) "Credit-eligible capital contribution" means an investment of cash
16 by a person in a rural business growth fund for which tax credits are
17 certified that is made in exchange for an equity interest in, or a debt
18 instrument issued by, such rural business growth fund. The investment
19 shall purchase an equity interest in the rural business growth fund or
20 purchase, at par value or premium, a debt instrument issued by the rural
21 business growth fund that meets all of the following criteria:
22 (A) the debt instrument has an original maturity date of at least five
23 years after the date of issuance;
24 (B) the debt instrument has a repayment schedule that is not faster
25 than a level principal amortization over five years; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14844-01-6
S. 9249 2
1 (C) the debt instrument has no interest, distribution, or payment
2 features dependent on the rural business growth fund's profitability or
3 the success of the rural growth investments.
4 (4) "Eligible investment authority" means the amount stated on the
5 notice issued under subparagraph (A) of paragraph six of subdivision (b)
6 of this section certifying the rural business growth fund.
7 (5) "Jobs created" means the number of people employed by a rural
8 business that has received a rural growth investment during the taxable
9 year, determined by averaging the number of full-time employees employed
10 on March thirty-first, June thirtieth, September thirtieth, and December
11 thirty-first of such taxable year, to the extent such number exceeds the
12 number of jobs retained. An individual shall be considered employed
13 full-time if such individual works not less than thirty-five hours per
14 week, or if two or more individuals together constitute the equivalent
15 of one full-time position.
16 (6) "Jobs retained" means the number of persons employed by a rural
17 business that has received a rural growth investment during the taxable
18 year, determined by averaging the number of full-time employees employed
19 on March thirty-first, June thirtieth, September thirtieth, and December
20 thirty-first of the taxable year in which the initial rural growth
21 investment was made. An individual shall be considered employed full-
22 time if such individual works not less than thirty-five hours per week,
23 or if two or more individuals together constitute the equivalent of one
24 full-time position.
25 (7) "Principal business operations in New York state" means a business
26 that has at least eighty percent of its employees who reside in New York
27 state, the individuals who receive at least eighty percent of the busi-
28 ness's payroll reside in New York state, or the business has agreed to
29 use the proceeds of a rural growth investment to relocate at least
30 eighty percent of its employees to New York state within twelve months
31 of receiving the investment by a rural business growth fund.
32 (8) "Rural area" shall have the same meaning as defined in subdivision
33 seven of section four hundred eighty-one of the executive law.
34 (9) (A) "Rural business" means any business that has its principal
35 business operations in New York state that, at the time of the initial
36 investment in the business by a rural business growth fund, employs no
37 more than two hundred fifty full-time employees and has earned not more
38 than fifteen million dollars in net income for the preceding taxable
39 year. A "rural business" shall exclude the following:
40 (i) a country club;
41 (ii) a racetrack or other facility used for gambling;
42 (iii) a store for which the principal purpose is the sale of alcoholic
43 beverages for consumption off premises;
44 (iv) a massage parlor;
45 (v) a hot tub facility;
46 (vi) a suntan facility;
47 (vii) a business engaged in the development or holding of intangibles
48 for sale;
49 (viii) a private or commercial golf course;
50 (ix) a business that derives or projects to derive fifteen percent or
51 more of its net income from the rental or sale of real property, except
52 any business that is a special purpose entity principally owned by a
53 principal user of that property formed solely for the purpose of rent-
54 ing, either directly or indirectly, or selling real property back to
55 such principal user if such principal user does not derive fifteen
S. 9249 3
1 percent or more of its gross annual revenue from the rental or sale of
2 real property; or
3 (x) a publicly traded business or any business or organization that is
4 exempt from taxation under section 501(c) of the internal revenue code
5 or any for-profit entity that is directly or indirectly owned,
6 controlled, or operated by, or under common control with, an organiza-
7 tion exempt from taxation under section 501(c) of the internal revenue
8 code.
9 (B) For purposes of this paragraph, "net income" means federal
10 adjusted gross income as required to be reported under the internal
11 revenue code less federal and state taxes imposed on or measured by
12 income. Any business which is classified as a rural business at the time
13 of the initial investment in such business by a rural business growth
14 fund shall remain classified as a rural business and may receive
15 follow-on investments from any rural business growth fund, and such
16 follow-on investments shall qualify as a rural growth investment
17 provided it otherwise meets the definition of rural business with the
18 exception of the employee limitation and net income limitation in such
19 definition.
20 (10) "Rural business growth fund" means an entity certified by the
21 department under this section.
22 (11) "Rural growth investment" means any capital or equity investment
23 in a rural business or any loan to a rural business with a term of at
24 least one year.
25 (12) "Tax credit certificate" means the document issued by the depart-
26 ment to a person who has made a credit-eligible capital contribution to
27 a rural business growth fund.
28 (13) "Taxable year", when used in reference to an insurance company,
29 means the calendar year ending on the thirty-first day of December next
30 preceding the day the annual report is required to be returned under
31 subdivision (d) of this section.
32 (14) "Department" means the department of economic development.
33 (b) Certification. (1) On and after August first, two thousand twen-
34 ty-six, an applicant that has developed a business plan to invest in
35 rural business in this state and has successfully solicited private
36 investors to make capital contributions in support of such business plan
37 may apply to the department for certification as a rural business growth
38 fund. Such application shall include all of the following:
39 (A) the total eligible investment authority sought by the applicant
40 under the business plan;
41 (B) documents and other evidence sufficient to prove that the appli-
42 cant meets all of the following criteria: (i) The applicant or an affil-
43 iate of the applicant is licensed as a rural business investment company
44 under 7 U.S.C. 2009cc, or as a small business investment company under
45 15 U.S.C. 681, and a certificate executed by an executive officer of
46 the applicant attesting that such license remains in effect and has not
47 been revoked, and (ii) As of the date the application is submitted, the
48 applicant has invested more than one hundred million dollars in operat-
49 ing companies in rural areas located inside or outside of New York
50 state. In computing investments under this subdivision, the applicant
51 may include investments made by affiliates of the applicant;
52 (C) an estimate of the number of jobs created and jobs retained that
53 will result from the applicant's rural growth investments, together with
54 the anticipated average wage per job;
55 (D) a revenue impact assessment for the applicant's proposed rural
56 growth investments prepared by a nationally recognized third-party inde-
S. 9249 4
1 pendent economic forecasting firm using a dynamic economic forecasting
2 model. The revenue impact assessment shall analyze the applicant's
3 business plan over the ten years following the date the application is
4 submitted to the department;
5 (E) a signed affidavit from each investor successfully solicited by
6 the applicant to make a credit eligible capital contribution in support
7 of the business plan. Each affidavit shall include information suffi-
8 cient for the department to identify the investor and shall state the
9 amount of the investor's credit-eligible capital contribution; and
10 (F) a non-refundable application fee of ten thousand dollars.
11 (2) The department shall review and make a determination with respect
12 to each application submitted under paragraph one of this subdivision
13 within thirty days of receipt. The department shall make determinations
14 on the applications in the order in which the applications are received
15 by the department. Applications received by the department on the same
16 day shall be deemed to have been received simultaneously. Except as
17 provided in paragraph four of subdivision (c) of this section, the
18 department shall not approve more than two hundred fifty million dollars
19 in eligible investment authority or more than one hundred seventy-five
20 million dollars in tax credits.
21 (3) The department shall deny an application submitted under this
22 section if any of the following are true:
23 (A) the application is incomplete;
24 (B) the application fee is not paid in full;
25 (C) the applicant does not satisfy all the criteria described in
26 subparagraph (B) of paragraph one of this subdivision;
27 (D) the revenue impact assessment submitted under subparagraph (D) of
28 paragraph one of this subdivision does not demonstrate that the appli-
29 cant's business plan will result in a positive economic impact on this
30 state over a ten-year period that exceeds the credit eligible capital
31 contributions sought by the applicant; or
32 (E) the department has already approved the maximum amount of eligible
33 investment authority and credit-eligible capital contributions allowed
34 under paragraph two of this subdivision.
35 (4) If the department denies an application under paragraph three of
36 this subdivision, the department shall send notice of its determination
37 of the application to the applicant. Such notice shall include the
38 reasons that the application was denied. If the application was denied
39 for any reason other than the reason specified in subparagraph (E) of
40 paragraph three of this subdivision, the applicant may provide addi-
41 tional information to the department to complete, clarify, or cure
42 defects in the application. The additional information shall be submit-
43 ted within thirty days after the date the notice of denial was sent by
44 the department. If the person or entity submits additional information
45 within thirty days, the department shall reconsider the application
46 within thirty days after receiving such additional information. If,
47 after submission of additional information, the application is approved,
48 then the submission date shall be the date of the original submission of
49 the application. If the person or entity does not submit additional
50 information within thirty days after the notice of denial was sent, the
51 applicant may submit a new application with a new submission date at any
52 time.
53 (5) If approving multiple simultaneously submitted applications would
54 result in exceeding the overall eligible investment limit prescribed by
55 paragraph two of this subdivision, the department shall proportionally
56 reduce the eligible investment authority and the credit-eligible capital
S. 9249 5
1 contributions for each approved application as necessary to avoid
2 exceeding the limit.
3 (6) The department shall not deny a rural business growth fund's
4 application or reduce the requested eligible investment authority for
5 any reasons other than those described in paragraph three and paragraph
6 five of this subdivision. If the department approves such application,
7 the department shall:
8 (A) issue a written notice certifying that the applicant qualifies as
9 a rural business growth fund, specifying the amount of the applicant's
10 eligible investment authority, and certifying and making available tax
11 credits in an aggregate amount equal to seventy percent of such eligible
12 investment authority, to be allocated among investors in accordance with
13 the affidavits submitted pursuant to subparagraph (E) of paragraph one
14 of this subdivision;
15 (B) to each investor whose affidavit was included in the application,
16 issue a tax credit certificate specifying the amount of the tax credit
17 and the utilization schedule of such tax credit, which, in the aggre-
18 gate, shall equal seventy percent of the applicant's eligible investment
19 authority; and
20 (C) submit to the commissioner a copy of each tax credit certificate
21 issued under subparagraph (B) of this paragraph.
22 (7) A rural business growth fund whose application was accepted shall
23 complete subparagraphs (A) and (B) of this paragraph within sixty days
24 of receiving the written notice issued under paragraph six of this
25 subdivision and shall complete the requirements set forth in subpara-
26 graph (C) of this paragraph within sixty-five days of receiving the
27 written notice issued under paragraph six of this subdivision:
28 (A) Collect the credit-eligible capital contributions from each inves-
29 tor whose credit-eligible capital contributions are described in affida-
30 vits submitted pursuant to subparagraph (E) of paragraph one of this
31 subdivision in the form of cash paid in exchange for equity interests or
32 debt instruments.
33 (B) Collect one or more investments of cash, which shall purchase an
34 equity interest in the rural business growth fund or a debt instrument
35 issued by the rural business growth fund at par value or premium, with a
36 maturity date of at least five years from the closing date that, when
37 added to the contributions collected under subparagraph (A) of this
38 paragraph, equal the fund's eligible investment authority. At least ten
39 percent of the fund's eligible investment authority shall be composed of
40 capital raised directly or indirectly by affiliates of the rural busi-
41 ness growth fund, including employees, officers, and directors of such
42 affiliates.
43 (C) Send to the department documentation sufficient to prove that the
44 amounts described in subparagraphs (A) and (B) of this paragraph have
45 been collected. If the rural business growth fund fails to fully comply
46 with this paragraph, the rural business growth fund's certification
47 shall lapse.
48 (8) Eligible investment authority and corresponding credit-eligible
49 capital contributions eligible for tax credits that lapse under para-
50 graph seven of this subdivision shall not count toward the limitations
51 on total eligible investment authority and credit-eligible capital
52 contributions prescribed in paragraph two of this subdivision. Once
53 eligible investment authority has lapsed, the department shall first
54 award such lapsed authority pro rata to each rural business growth fund
55 that was awarded less than the requested eligible investment authority
S. 9249 6
1 under paragraph five of this subdivision. Any remaining eligible invest-
2 ment authority may be awarded by the department to new applicants.
3 (9) Application fees submitted to the department pursuant to subpara-
4 graph (F) of paragraph one of this subdivision shall be credited to the
5 New York rural growth fund, as established pursuant to section ninety-
6 nine-uu of the state finance law.
7 (c) Revocation of certification and penalties. (1) The department
8 shall revoke a tax credit certificate issued under subdivision (b) of
9 this section if any of the following occur with respect to a rural busi-
10 ness growth fund before the fund exits the program pursuant to paragraph
11 five of this subdivision:
12 (A) the rural business growth fund in which the credit-eligible capi-
13 tal contribution was made does not invest one hundred percent of its
14 eligible investment authority in rural growth investments in this state
15 within two years of the closing date;
16 (B) after investing one hundred percent of its eligible investment
17 authority in rural growth investments in this state, the rural business
18 growth fund fails to maintain such investment until the seventh anniver-
19 sary of the closing date. For purposes of this subdivision, an invest-
20 ment shall be deemed "maintained" even if the investment is sold or
21 repaid so long as the rural business growth fund reinvests an amount
22 equal to the capital returned or recovered by the fund from the original
23 investment, exclusive of any profits realized, in other rural growth
24 investments in this state within twelve months of the receipt of such
25 capital. Amounts received periodically by a rural business growth fund
26 shall be treated as continually invested in rural growth investments if
27 the amounts are reinvested in one or more rural growth investments by
28 the end of the following calendar year. A rural business growth fund
29 shall not be required to reinvest capital returned from rural growth
30 investments in the twelve months immediately preceding the seventh anni-
31 versary of the closing date, and such rural growth investments shall be
32 considered held continuously by the rural business growth fund through
33 the seventh anniversary of the closing date;
34 (C) the rural business growth fund invests more than the greater of
35 five million dollars or twenty percent of its eligible investment
36 authority in the same rural business, including amounts invested in
37 affiliates of the rural business but excluding amounts reinvested in the
38 rural business growth fund with repaid or redeemed rural business growth
39 investments, provided such reinvestments shall not count towards the
40 requirement of subparagraph (A) of this paragraph; or
41 (D) the rural business growth fund makes a rural growth investment in
42 a rural business that directly or indirectly through an affiliate owns,
43 has the right to acquire an ownership interest, make a loan to, or make
44 an investment in the rural business growth fund, an affiliate of the
45 rural business growth fund, or an investor in the rural business growth
46 fund. This paragraph shall not apply to investments in publicly traded
47 securities by a rural business or an owner or affiliate of such concern.
48 (2) Before taking action pursuant to the provisions of paragraph one
49 of this subdivision, the department shall notify the rural business
50 growth fund of the reasons for the pending action. If the rural business
51 growth fund corrects the violations, other than violations of subpara-
52 graph (D) of paragraph one of this subdivision, outlined in the notice
53 to the satisfaction of the department within one hundred eighty days of
54 the date the notice was sent, the department shall not revoke the tax
55 credit certificates or levy a fine.
S. 9249 7
1 (3) If the department revokes a tax credit certificate under paragraph
2 one of this subdivision, it shall notify the commissioner, who shall
3 make an assessment for the amount of the credit claimed by the certif-
4 icate holder before the certificate was revoked. The commissioner shall
5 make the assessment within one year after the certificate has been
6 revoked.
7 (4) If tax credit certificates are revoked under paragraph one of this
8 subdivision, the associated eligible investment authority and tax cred-
9 its identified on such certificate shall not count toward the limit on
10 total eligible investment authority and credit-eligible capital contrib-
11 utions described in paragraph two of subdivision (b) of this section.
12 The department shall first award such reverted authority pro rata to
13 each rural business growth fund that was awarded less than the requested
14 eligible investment authority under paragraph five of subdivision (b) of
15 this section. Any remaining eligible investment authority may be awarded
16 by the department to new applicants.
17 (5) (A) On or after the seventh anniversary of the closing date, a
18 rural business growth fund that has not committed any of the acts
19 described in paragraph one of this subdivision may apply to the depart-
20 ment to exit the program as a rural business growth fund and no longer
21 be subject to regulation under this section. The department shall
22 respond to the application within thirty days after receiving such
23 application. In evaluating such request, the fact that no tax credit
24 certificates have been revoked with respect to the rural business growth
25 fund shall be sufficient evidence to prove that the fund is eligible to
26 exit the program. The department shall not unreasonably deny an applica-
27 tion submitted under this subdivision.
28 (B) The department shall send written notice of its determination with
29 respect to an application submitted under subparagraph (A) of this para-
30 graph to the rural business growth fund. If the application is denied,
31 the notice shall include the reasons for such determination.
32 (C) The department shall not revoke a tax credit certificate due to
33 any actions of a rural business growth fund that occur after the date
34 the fund's application for exiting the program is approved under subpar-
35 agraph (A) of this paragraph.
36 (6) A rural business growth fund may, prior to making a rural growth
37 investment, request from the department a written determination as to
38 whether the business entity in which it proposes to invest qualifies as
39 a rural business. Such request shall be in a form prescribed by the
40 department. Rural business determination requests shall be accepted,
41 reviewed, and approved on a rolling basis. The department shall issue a
42 written determination, not later than the twentieth business day after
43 the date of receipt of such request, provided the request includes all
44 of the required information to perform such review, and shall notify the
45 rural business growth fund of its determination. If the department fails
46 to notify such fund of its determination within such twenty business day
47 period, the business in which the rural business growth fund proposes to
48 invest shall be deemed to qualify as a rural business. A determination
49 or deemed determination under this paragraph shall be binding on the
50 department for all purposes of this section.
51 (7) A rural business growth fund shall be subject to a penalty if the
52 aggregate number of jobs created and jobs retained, as reported in the
53 annual reports submitted pursuant to subdivision (d) of this section, is
54 less than the number of jobs created and jobs retained certified in the
55 department's notice of approval issued under paragraph six of subdivi-
56 sion (b) of this section.
S. 9249 8
1 (8) The amount of the penalty shall be equal to the amount of tax
2 credits issued to the rural business growth fund pursuant to tax credit
3 certificates issued under subdivision (b) of this section, multiplied by
4 a fraction:
5 (A) the numerator of which is the difference between the number of
6 jobs created and jobs retained certified in the notice of approval and
7 the aggregate number of jobs created and jobs retained actually
8 reported; and
9 (B) the denominator of which is the number of jobs created and jobs
10 retained certified in the notice of approval.
11 (9) Prior to making any distribution to equity holders, the rural
12 business growth fund shall deduct the amount of any penalty calculated
13 pursuant to paragraph seven of this subdivision and remit such amount to
14 the department.
15 (d) Reports. (1) A rural business growth fund shall submit a report to
16 the department on or before the first day of March after each anniver-
17 sary of the closing date until the rural business growth fund has exited
18 the program in accordance with paragraph five of subdivision (c) of this
19 section. Such report shall document the rural business growth fund's
20 growth investments and shall include, but shall not be limited to:
21 (A) a bank statement or equivalent documentation showing each rural
22 growth investment;
23 (B) the name, location, and North American industry classification
24 system code of each rural business receiving a rural growth investment,
25 together with either the determination notice described by paragraph six
26 of subdivision (c) of this section or evidence that such determination
27 was requested and no notice was provided;
28 (C) the number of employment positions that existed at each business
29 described in subparagraph (B) of this paragraph;
30 (D) the number of jobs created and jobs retained during the preceding
31 twelve-month reporting period, calculated in accordance with subdivision
32 (a) of this section; and
33 (E) any other information the department may require by rule or guid-
34 ance.
35 (2) The department may adopt rules and regulations necessary to imple-
36 ment the provisions of this section.
37 (3) Each certified rural business growth fund shall pay an annual fee
38 of twenty thousand dollars to the department. The initial annual fee
39 shall be submitted along with the fund's initial report. Annual fees
40 received shall be credited to the New York rural growth fund, as estab-
41 lished pursuant to section ninety-nine-uu of the state finance law. Any
42 rural business growth fund required to file an annual report pursuant to
43 paragraph one of this subdivision shall remit the fee together with such
44 report. No annual fee shall be required after the fund has been approved
45 to exit the program under subdivision (c) of this section.
46 § 2. Section 1511 of the tax law is amended by adding a new subdivi-
47 sion (ff) to read as follows:
48 (ff) Credit for certain investments to a rural business growth fund.
49 (1) There is hereby allowed a nonrefundable tax credit for taxpayers
50 that made a credit-eligible capital contribution to a rural business
51 growth fund and were issued a tax credit certificate under subparagraph
52 (B) of paragraph six of subdivision (b) of section fifty of this chap-
53 ter. The total amount of credit authorized by such certificate shall
54 equal the amount of tax credit specified on the tax credit certificate,
55 which, in the aggregate, shall reflect seventy percent of the eligible
56 investment authority certified pursuant to section fifty of this chap-
S. 9249 9
1 ter. Such credit may be claimed against the tax imposed by this article
2 and section one thousand one hundred twelve of the insurance law. Such
3 credit may not be sold, transferred, or allocated to any entity other
4 than an affiliate of the taxpayer.
5 (2) A taxpayer may claim credits authorized by the tax credit certif-
6 icate in the taxable years in which the third, fourth, fifth, sixth and
7 seventh anniversaries of the closing date, as such term is defined
8 pursuant to section fifty of this chapter, associated with such certif-
9 icate occur, provided that the maximum credit claimed for any taxable
10 year shall not exceed one-fifth of the amount stated on the tax credit
11 certificate, exclusive of any amounts carried forward pursuant to para-
12 graph three of this subdivision.
13 (3) If the amount of credits allowable for any taxable year exceeds
14 the tax otherwise due for such year, the excess shall be carried forward
15 to subsequent taxable years until fully used. A taxpayer claiming a
16 credit under this subdivision shall submit a copy of the tax credit
17 certificate with the taxpayer's return for each taxable year for which
18 the credit is claimed.
19 § 3. The tax law is amended by adding a new section 187-s to read as
20 follows:
21 § 187-s. Credit for certain investments to a rural business growth
22 fund. 1. There is hereby allowed a non-refundable tax credit for
23 taxpayers that made a credit-eligible capital contribution to a rural
24 business growth fund and were issued a tax credit certificate under
25 subparagraph (B) of paragraph six of subdivision (b) of section fifty of
26 this chapter. The total amount of credit authorized by such certificate
27 shall equal the amount of tax credit specified on the tax credit certif-
28 icate, which, in the aggregate, shall reflect seventy percent of the
29 eligible investment authority certified pursuant to section fifty of
30 this chapter. The credit may be claimed against the tax imposed by this
31 article. The credit may not be sold, transferred, or allocated to any
32 entity other than an affiliate of the taxpayer.
33 2. The taxpayer may claim credits authorized by the tax credit certif-
34 icate in the taxable years in which the third, fourth, fifth, sixth and
35 seventh anniversaries of the closing date, as such term is defined
36 pursuant to section fifty of this chapter, associated with such certif-
37 icate occur, provided that the maximum credit allowed for any taxable
38 year shall not exceed one-fifth of the amount stated on the tax credit
39 certificate, exclusive of any amounts carried forward pursuant to subdi-
40 vision three of this section. In no event shall the credit under this
41 section be allowed in an amount that reduces the tax payable to less
42 than the minimum tax imposed by section one hundred eighty-three of this
43 article.
44 3. If the amount of the credit allowable for any taxable year exceeds
45 the tax otherwise due for such year, the excess shall be carried forward
46 to subsequent taxable years until fully used. A taxpayer claiming a
47 credit under this section shall submit a copy of the tax credit certif-
48 icate with the return for each taxable year for which the credit is
49 claimed.
50 § 4. The state finance law is amended by adding a new section 99-uu to
51 read as follows:
52 § 99-uu. New York rural growth fund. 1. There is hereby established,
53 in the joint custody of the state comptroller and the commissioner of
54 taxation and finance, a special fund to be known as the "New York rural
55 growth fund".
S. 9249 10
1 2. Such fund shall consist of all fees submitted pursuant to section
2 fifty of the tax law, and all other moneys appropriated, credited, or
3 transferred thereto from any other fund or source pursuant to law.
4 3. Moneys of the fund, following appropriation by the legislature,
5 shall be expended only for the purposes of providing funding for the New
6 York rural growth fund credit established by section fifty of the tax
7 law. Moneys shall be paid out of the fund on the audit and warrant of
8 the state comptroller on vouchers approved and certified by the commis-
9 sioner of taxation and finance. Any interest received by the comptroller
10 on moneys deposited in the fund shall be retained in and become part of
11 such fund.
12 § 5. This act shall take effect July 1, 2026 and shall apply to taxa-
13 ble years beginning on and after such date.
