A03009 Summary:
BILL NO | A03009B |
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SAME AS | SAME AS UNI. S02009-B |
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SPONSOR | Budget |
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COSPNSR | |
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MLTSPNSR | |
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Amd Various Laws, generally | |
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Relates to the New York city personal income tax rates; relates to recouping savings retrospectively from unlawfully claimed exemptions removed during re-registration process; authorizes homeowners who registered for the STAR exemption, but failed to file timely exemption applications with their local assessors, to receive the benefit for the 2014 exemption; makes permanent the itemized deduction limitation applicable to incomes of ten million dollars or greater; amends the personal income and MTA mobility tax statutes for technical changes; adds a reporting requirement to the commercial production tax credit; relates to the Excelsior Jobs Program and significant capital investments; creates the employee training incentive program tax credit within the excelsior tax credit program; imposes tax on wireless telecommunications businesses pursuant to sections 184 and 184-a of the tax law; incorporates the DOS biennial statement requirement into the corporate tax return; makes corrections to the corporate tax reform provisions; and repeals certain provisions of the tax law relating thereto; exempts certain items or tangible personal property furnished to customers by certain cider producers, breweries, and distilleries at tastings; relates to the imposition of the sales and compensating use tax on prepaid mobile calling services; expands the solar panel state and local sales and use tax exemptions; allows a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production; calculates the estate tax imposed under the tax rate table, clarifies the phase out date for certain gift add backs and disallows deductions relating to intangible personal property for estates of non-resident decedents; relates to warrantless income execution provisions; relates to capital awards to vendor tracks; relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; extends certain provisions relating to simulcasting and the imposition of certain taxes; relates to video lottery gaming; relates to a franchised corporation; relates to a use tax on boats; relates to an aircraft sales tax exemption; relates to a jockey's workers compensation fund; relates to VTL vendor fee rates; and relates to the MTA payroll tax. |
A03009 Actions:
BILL NO | A03009B | |||||||||||||||||||||||||||||||||||||||||||||||||
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01/21/2015 | referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
03/28/2015 | amend (t) and recommit to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
03/28/2015 | print number 3009a | |||||||||||||||||||||||||||||||||||||||||||||||||
03/28/2015 | amend (t) and recommit to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
03/28/2015 | print number 3009b | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | reported referred to rules | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | rules report cal.17 | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | ordered to third reading rules cal.17 | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | motion to amend lost | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | motion to amend lost | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | motion to amend lost | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | message of necessity - 3 day message | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | REFERRED TO FINANCE | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | SUBSTITUTED FOR S2009B | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | MESSAGE OF NECESSITY - 3 DAY MESSAGE | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
03/30/2015 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
04/01/2015 | delivered to governor | |||||||||||||||||||||||||||||||||||||||||||||||||
04/13/2015 | signed chap.59 |
A03009 Committee Votes:
Go to topA03009 Floor Votes:
Yes
Abbate
No
Corwin
No
Goodell
Yes
Lupardo
Yes
Paulin
Yes
Silver
Yes
Abinanti
Yes
Crespo
Yes
Gottfried
No
Lupinacci
Yes
Peoples-Stokes
Yes
Simanowitz
Yes
Arroyo
No
Crouch
No
Graf
Yes
Magee
Yes
Perry
Yes
Simon
Yes
Aubry
Yes
Curran
Yes
Gunther
Yes
Magnarelli
Yes
Persaud
Yes
Simotas
No
Barclay
Yes
Cusick
No
Hawley
No
Malliotakis
Yes
Pichardo
Yes
Skartados
Yes
Barrett
Yes
Cymbrowitz
Yes
Hevesi
Yes
Markey
Yes
Pretlow
Yes
Skoufis
No
Barron
Yes
Davila
No
Hikind
Yes
Mayer
Yes
Quart
Yes
Solages
Yes
Benedetto
Yes
DenDekker
Yes
Hooper
Yes
McDonald
No
Ra
No
Stec
Yes
Bichotte
Yes
Dilan
Yes
Jaffee
Yes
McDonough
Yes
Raia
Yes
Steck
Yes
Blake
Yes
Dinowitz
Yes
Jean-Pierre
No
McKevitt
Yes
Ramos
Yes
Stirpe
No
Blankenbush
No
DiPietro
Yes
Johns
No
McLaughlin
Yes
Rivera
No
Tedisco
No
Borelli
No
Duprey
Yes
Joyner
Yes
Miller
Yes
Roberts
No
Tenney
Yes
Brabenec
Yes
Englebright
Yes
Kaminsky
Yes
Montesano
Yes
Robinson
Yes
Thiele
Yes
Braunstein
Yes
Fahy
No
Katz
Yes
Morelle
Yes
Rodriguez
Yes
Titone
Yes
Brennan
Yes
Farrell
Yes
Kavanagh
Yes
Mosley
Yes
Rosenthal
Yes
Titus
Yes
Brindisi
No
Finch
Yes
Kearns
Yes
Moya
Yes
Rozic
Yes
Walker
Yes
Bronson
No
Fitzpatrick
Yes
Kim
No
Murray
Yes
Russell
No
Walter
Yes
Brook-Krasny
No
Friend
No
Kolb
No
Nojay
Yes
Ryan
Yes
Weinstein
Yes
Buchwald
Yes
Galef
No
Lalor
Yes
Nolan
Yes
Saladino
Yes
Weprin
No
Butler
Yes
Gantt
Yes
Lavine
No
Oaks
Yes
Santabarbara
Yes
Woerner
Yes
Cahill
Yes
Garbarino
No
Lawrence
Yes
O'Donnell
Yes
Scarborough
No
Wozniak
Yes
Ceretto
No
Giglio
Yes
Lentol
Yes
Ortiz
Yes
Schimel
Yes
Wright
ER
Clark
Yes
Gjonaj
Yes
Lifton
Yes
Otis
Yes
Schimminger
Yes
Zebrowski
Yes
Colton
Yes
Glick
Yes
Linares
No
Palmesano
Yes
Seawright
Yes
Mr. Speaker
Yes
Cook
Yes
Goldfeder
Yes
Lopez
No
Palumbo
Yes
Sepulveda
‡ Indicates voting via videoconference
A03009 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ S. 2009--B A. 3009--B SENATE - ASSEMBLY January 21, 2015 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT intentionally omitted (Part A); to amend the state finance law, the tax law and the administrative code of the city of New York, in relation to the New York city personal income tax rates (Part B); intentionally omitted (Part C); intentionally omitted (Part D); to amend the real property tax law, in relation to establishing a state- administered recoupment provision to the STAR exemption program (Part E); to amend the state finance law, in relation to making technical corrections to the school tax relief fund; and to provide one-time relief to STAR registrants who failed to file timely STAR exemption applications (Part F); intentionally omitted (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the limitation on charitable contribution deductions for certain taxpayers (Part H); to amend the tax law, the administrative code of the city of New York and the labor law, in relation to making certain technical corrections (Part I); to amend the tax law, in relation to a report regarding the empire state commercial production tax credit; and to repeal section 9 of part V of chapter 62 of the laws of 2006, amending the tax law relating to the empire state commercial production tax credit, relating thereto (Part J); to amend the economic development law, in relation to the eligi- bility of entertainment companies for the excelsior jobs program (Part K); intentionally omitted (Part L); intentionally omitted (Part M); intentionally omitted (Part N); to amend the economic development law and the tax law, in relation to establishing a tax credit for employ- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-04-5S. 2009--B 2 A. 3009--B ers who procure skills training for employees necessary to cultivate a talented workforce (Part O); to amend the tax law, in relation to the metropolitan transportation business tax surcharge on utility services and excise tax on sale of telecommunication services, and the excise tax on telecommunication services imposed by article 9 of such law (Part P); intentionally omitted (Part Q); intentionally omitted (Part R); to amend the business corporation law, the limited liability company law, the partnership law and the tax law, in relation to the biennial statements filed with the secretary of state (Part S); to amend the tax law, in relation to making corrections to the corporate tax reform provisions; and to repeal certain provisions of such law relating thereto (Part T); to amend the tax law, in relation to exempting certain items of tangible personal property furnished to customers by certain cider producers, breweries, and distilleries at tastings (Part U); to amend the tax law, in relation to the imposition of the sales and compensating use tax on prepaid mobile calling services (Part V); intentionally omitted (Part W); intentionally omit- ted (Part X); intentionally omitted (Part Y); to amend the tax law, in relation to exempting electricity provided by certain sources from the sales tax imposed by article 28 of the tax law and omitting such exemption from the taxes imposed pursuant to the authority of article 29 of the tax law, unless a locality elects otherwise; and to repeal subdivisions (n) and (p) of section 1210 of such law relating to tax exemptions imposed by resolution in cities having a population of one million or more persons (Part Z); to amend the tax law, in relation to allowing a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production (Part AA); to amend the tax law, in relation to calculating the estate tax imposed under the tax rate table, clarifying the phase out date for certain gift add backs and disallowing deductions relating to intangible personal property for estates of non-resident decedents (Part BB); intentionally omitted (Part CC); to amend part Q of chapter 59 of the laws of 2013 amending the tax law relating to serving an income execution with respect to individual tax debtors without filing a warrant, in relation to extending the effectiveness thereof (Part DD); intentionally omitted (Part EE); intentionally omitted (Part FF); intentionally omitted (Part GG); intentionally omitted (Part HH); intentionally omitted (Part II); intentionally omitted (Part JJ); intentionally omitted (Part KK); intentionally omitted (Part LL); to amend the tax law, in relation to capital awards to vendor tracks (Part MM); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out- of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part NN); to amend the tax law and the penal law, in relation to video lottery gaming (Part OO); to amend the racing, pari-mutuel wagering and breed- ing law, in relation to a franchised corporation (Part PP); inten- tionally omitted (Part QQ); to amend the tax law, in relation to the credit for certain alternative fuel vehicle refueling property andS. 2009--B 3 A. 3009--B electric vehicle recharging property (Part RR); to amend the tax law, in relation to sales and compensating use taxes imposed with respect to vessels by article 28 of the tax law and pursuant to the authority of article 29 of such law (Part SS); to amend the tax law, in relation to sales and compensating use taxes imposed with respect to certain aircraft by article 28 and pursuant to the authority of article 29 of such law (Part TT); to amend the tax law, in relation to exempting from sales and use taxes certain tangible personal property or services (Part UU); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part VV); to amend the tax law, in relation to vendor fees paid to vendor tracks (Part WW); to amend the racing, pari-mutuel wagering and breeding law, in relation to account wagering; and providing for the repeal of certain provisions upon expiration thereof (Part XX); to amend the tax law, in relation to the exemption of libraries from the imposition of the metropolitan commuter transporta- tion mobility tax (Part YY); and to amend part CC of a chapter of the laws of 2015 amending the vehicle and traffic law relating to direct- ing the city of Buffalo to adjudicate traffic infractions, as proposed in legislative bill numbers S.2008-B and A.3008-B, in relation to the effectiveness thereof (Part ZZ) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2015-2016 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through ZZ. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 PART A 13 Intentionally Omitted 14 PART B 15 Section 1. Subdivision 1 of section 54-f of the state finance law, as 16 amended by section 1 of part EE of chapter 57 of the laws of 2010, is 17 amended to read as follows: 18 1. Except as otherwise provided by law, the provisions of this section 19 shall be utilized by the state to calculate the annual amount due to be 20 paid to the city of New York by the state to reimburse such city for tax 21 receipts foregone (a) as a result of [a] chapter three hundred eighty- 22 nine of the laws of nineteen hundred ninety-seven [that reduced the23rates of tax imposed pursuant to authority granted under section thir-24teen hundred one of the tax law and that created a new "state school tax25reduction credit" against liabilities imposed pursuant to the authorityS. 2009--B 4 A. 3009--B 1granted the city by such section and other statutes authorizing the2imposition of a personal income tax on the residents of such city], and 3 (b) as a result of the tax rate adjustments made by [a] chapter fifty- 4 seven of the laws of two thousand ten and by a chapter of the laws of 5 two thousand fifteen, which amended this subdivision. 6 § 2. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the 7 tax law, as amended by section 2 of part EE of chapter 57 of the laws of 8 2010, are amended to read as follows: 9 (1) Resident married individuals filing joint returns and resident 10 surviving spouses. The tax under this section for each taxable year on 11 the city taxable income of every city resident married individual who 12 makes a single return jointly with his or her spouse under subsection 13 (b) of section thirteen hundred six of this article and on the city 14 taxable income of every city resident surviving spouse shall be deter- 15 mined in accordance with the following tables: 16 (A) For taxable years beginning after two thousand fourteen: 17 If the city taxable income is: The tax is: 18 Not over $21,600 2.55% of the city taxable income 19 Over $21,600 but not $551 plus 3.1% of excess 20 over $45,000 over $21,600 21 Over $45,000 but not $1,276 plus 3.15% of excess 22 over $90,000 over $45,000 23 Over $90,000 but not $2,694 plus 3.2% of excess 24 over $500,000 over $90,000 25 Over $500,000 $16,803 plus 3.4% of excess 26 over $500,000 27 (B) For taxable years beginning after two thousand nine and before two 28 thousand fifteen: 29 If the city taxable income is: The tax is: 30 Not over $21,600 2.55% of the city taxable income 31 Over $21,600 but not $551 plus 3.1% of excess 32 over $45,000 over $21,600 33 Over $45,000 but not $1,276 plus 3.15% of excess 34 over $90,000 over $45,000 35 Over $90,000 but not $2,694 plus 3.2% of excess 36 over $500,000 over $90,000 37 Over $500,000 $15,814 plus 3.4% of excess 38 over $500,000 39 [(B) For taxable years beginning in two thousand one and two thousand40two and for taxable years beginning after two thousand five and before41two thousand ten:42If the city taxable income is: The tax is:43Not over $21,600 2.55% of the city taxable income44Over $21,600 but not $551 plus 3.1% of excess45over $45,000 over $21,60046Over $45,000 but not $1,276 plus 3.15% of excess47over $90,000 over $45,00048Over $90,000 $2,694 plus 3.2% of excess49over $90,000]S. 2009--B 5 A. 3009--B 1 (2) Resident heads of households. The tax under this section for each 2 taxable year on the city taxable income of every city resident head of a 3 household shall be determined in accordance with the following tables: 4 (A) For taxable years beginning after two thousand fourteen: 5 If the city taxable income is: The tax is: 6 Not over $14,400 2.55% of the city taxable income 7 Over $14,400 but not $367 plus 3.1% of excess 8 over $30,000 over $14,400 9 Over $30,000 but not $851 plus 3.15% of excess 10 over $60,000 over $30,000 11 Over $60,000 but not $1,796 plus 3.2% of excess 12 over $500,000 over $60,000 13 Over $500,000 $16,869 plus 3.4% of excess 14 over $500,000 15 (B) For taxable years beginning after two thousand nine and before two 16 thousand fifteen: 17 If the city taxable income is: The tax is: 18 Not over $14,400 2.55% of the city taxable income 19 Over $14,400 but not $367 plus 3.1% of excess 20 over $30,000 over $14,400 21 Over $30,000 but not $851 plus 3.15% of excess 22 over $60,000 over $30,000 23 Over $60,000 but not $1,796 plus 3.2% of excess 24 over $500,000 over $60,000 25 Over $500,000 $15,876 plus 3.4% of excess 26 Over $500,000 27 [(B) For taxable years beginning in two thousand one and two thousand28two and for taxable years beginning after two thousand five and before29two thousand ten:30If the city taxable income is: The tax is:31Not over $14,400 2.55% of the city taxable income32Over $14,400 but not $367 plus 3.1% of excess33over $30,000 over $14,40034Over $30,000 but not $851 plus 3.15% of excess35over $60,000 over $30,00036Over $60,000 $1,796 plus 3.2% of excess37over $60,000] 38 (3) Resident unmarried individuals, resident married individuals 39 filing separate returns and resident estates and trusts. The tax under 40 this section for each taxable year on the city taxable income of every 41 city resident individual who is not a city resident married individual 42 who makes a single return jointly with his or her spouse under 43 subsection (b) of section thirteen hundred six of this article or a city 44 resident head of household or a city resident surviving spouse, and on 45 the city taxable income of every city resident estate and trust shall be 46 determined in accordance with the following tables: 47 (A) For taxable years beginning after two thousand fourteen:S. 2009--B 6 A. 3009--B 1 If the city taxable income is: The tax is: 2 Not over $12,000 2.55% of the city taxable income 3 Over $12,000 but not $306 plus 3.1% of excess 4 over $25,000 over $12,000 5 Over $25,000 but not $709 plus 3.15% of excess 6 over $50,000 over $25,000 7 Over $50,000 but not $1,497 plus 3.2% of excess 8 over $500,000 over $50,000 9 Over $500,000 $16,891 plus 3.4% 10 of excess over $500,000 11 (B) For taxable years beginning after two thousand nine and before two 12 thousand fifteen: 13 If the city taxable income is: The tax is: 14 Not over $12,000 2.55% of the city taxable income 15 Over $12,000 but not $306 plus 3.1% of excess 16 over $25,000 over $12,000 17 Over $25,000 but not $709 plus 3.15% of excess 18 over $50,000 over $25,000 19 Over $50,000 but not $1,497 plus 3.2% of excess 20 over $500,000 over $50,000 21 Over $500,000 $15,897 plus 3.4% 22 of excess over $500,000 23 [(B) For taxable years beginning in two thousand one and two thousand24two and for taxable years beginning after two thousand five and before25two thousand ten:26If the city taxable income is: The tax is:27Not over $12,000 2.55% of the city taxable income28Over $12,000 but not $306 plus 3.1% of excess29over $25,000 over $12,00030Over $25,000 but not $709 plus 3.15% of excess31over $50,000 over $25,00032Over $50,000 $1,497 plus 3.2% of excess33over $50,000] 34 § 3. Paragraphs 1, 2 and 3 of subdivision (a) of section 11-1701 of 35 the administrative code of the city of New York, as amended by section 3 36 of part EE of chapter 57 of the laws of 2010, are amended to read as 37 follows: 38 (1) Resident married individuals filing joint returns and resident 39 surviving spouses. The tax under this section for each taxable year on 40 the city taxable income of every city resident married individual who 41 makes a single return jointly with his or her spouse under subdivision 42 (b) of section 11-1751 of this chapter and on the city taxable income of 43 every city resident surviving spouse shall be determined in accordance 44 with the following tables: 45 (A) For taxable years beginning after two thousand fourteen: 46 If the city taxable income is: The tax is: 47 Not over $21,600 2.55% of the city taxable income 48 Over $21,600 but not $551 plus 3.1% of excess 49 over $45,000 over $21,600 50 Over $45,000 but not $1,276 plus 3.15% of excess 51 over $90,000 over $45,000S. 2009--B 7 A. 3009--B 1 Over $90,000 but not $2,694 plus 3.2% of excess 2 over $500,000 over $90,000 3 Over $500,000 $16,803 plus 3.4% of excess 4 over $500,000 5 (B) For taxable years beginning after two thousand nine and before two 6 thousand fifteen: 7 If the city taxable income is: The tax is: 8 Not over $21,600 2.55% of the city taxable income 9 Over $21,600 but not $551 plus 3.1% of excess 10 over $45,000 over $21,600 11 Over $45,000 but not $1,276 plus 3.15% of excess 12 over $90,000 over $45,000 13 Over $90,000 but not $2,694 plus 3.2% of excess 14 over $500,000 over $90,000 15 Over $500,000 $15,814 plus 3.4% of excess 16 over $500,000 17 [(B) For taxable years beginning in two thousand one and two thousand18two and for taxable years beginning after two thousand five and before19two thousand ten:20If the city taxable income is: The tax is:21Not over $21,600 2.55% of the city taxable income22Over $21,600 but not $551 plus 3.1% of excess23over $45,000 over $21,60024Over $45,000 but not $1,276 plus 3.15% of excess25over $90,000 over $45,00026Over $90,000 $2,694 plus 3.2% of excess27over $90,000] 28 (2) Resident heads of households. The tax under this section for each 29 taxable year on the city taxable income of every city resident head of a 30 household shall be determined in accordance with the following tables: 31 (A) For taxable years beginning after two thousand fourteen: 32 If the city taxable income is: The tax is: 33 Not over $14,400 2.55% of the city taxable income 34 Over $14,400 but not $367 plus 3.1% of excess 35 over $30,000 over $14,400 36 Over $30,000 but not $851 plus 3.15% of excess 37 over $60,000 over $30,000 38 Over $60,000 but not $1,796 plus 3.2% of excess 39 over $500,000 over $60,000 40 Over $500,000 $16,869 plus 3.4% of excess 41 over $500,000 42 (B) For taxable years beginning after two thousand nine and before two 43 thousand fifteen: 44 If the city taxable income is: The tax is: 45 Not over $14,400 2.55% of the city taxable income 46 Over $14,400 but not $367 plus 3.1% of excess 47 over $30,000 over $14,400 48 Over $30,000 but not $851 plus 3.15% of excess 49 over $60,000 over $30,000 50 Over $60,000 but not $1,796 plus 3.2% of excessS. 2009--B 8 A. 3009--B 1 over $500,000 over $60,000 2 Over $500,000 $15,876 plus 3.4% of excess 3 over $500,000 4 [(B) For taxable years beginning in two thousand one and two thousand5two and for taxable years beginning after two thousand five and before6two thousand ten:7If the city taxable income is: The tax is:8Not over $14,400 2.55% of the city taxable income9Over $14,400 but not $367 plus 3.1% of excess10over $30,000 over $14,40011Over $30,000 but not $851 plus 3.15% of excess12over $60,000 over $30,00013Over $60,000 $1,79614plus 3.2% of excess15over $60,000] 16 (3) Resident unmarried individuals, resident married individuals 17 filing separate returns and resident estates and trusts. The tax under 18 this section for each taxable year on the city taxable income of every 19 city resident individual who is not a married individual who makes a 20 single return jointly with his or her spouse under subdivision (b) of 21 section 11-1751 of this chapter or a city resident head of a household 22 or a city resident surviving spouse, and on the city taxable income of 23 every city resident estate and trust shall be determined in accordance 24 with the following tables: 25 (A) For taxable years beginning after two thousand fourteen: 26 If the city taxable income is: The tax is: 27 Not over $12,000 2.55% of the city taxable income 28 Over $12,000 but not $306 plus 3.1% of excess 29 over $25,000 over $12,000 30 Over $25,000 but not $709 plus 3.15% of excess 31 over $50,000 over $25,000 32 Over $50,000 but not $1,497 plus 3.2% of excess 33 over $500,000 over $50,000 34 Over $500,000 $16,891 plus 3.4% of excess 35 over $500,000 36 (B) For taxable years beginning after two thousand nine and before two 37 thousand fifteen: 38 If the city taxable income is: The tax is: 39 Not over $12,000 2.55% of the city taxable income 40 Over $12,000 but not $306 plus 3.1% of excess 41 over $25,000 over $12,000 42 Over $25,000 but not $709 plus 3.15% of excess 43 over $50,000 over $25,000 44 Over $50,000 but not $1,497 plus 3.2% of excess 45 over $500,000 over $50,000 46 Over $500,000 $15,897 plus 3.4% of excess 47 over $500,000S. 2009--B 9 A. 3009--B 1 [(B) For taxable years beginning in two thousand one and two thousand2two and for taxable years beginning after two thousand five and before3two thousand ten:4If the city taxable income is: The tax is:5Not over $12,000 2.55% of the city taxable income6Over $12,000 but not $306 plus 3.1% of excess7over $25,000 over $12,0008Over $25,000 but not $709 plus 3.15% of excess9over $50,000 over $25,00010Over $50,000 $1,497 plus 3.2% of excess11over $50,000] 12 § 4. Notwithstanding any provision of law to the contrary, the method 13 of determining the amount to be deducted and withheld from wages on 14 account of taxes imposed by or pursuant to the authority of article 30 15 of the tax law in connection with the implementation of the provisions 16 of this act shall be prescribed by regulations of the commissioner of 17 taxation and finance with due consideration to the effect such withhold- 18 ing tables and methods would have on the receipt and amount of revenue. 19 The commissioner of taxation and finance shall adjust such withholding 20 tables and methods in regard to taxable years beginning in 2015 and 21 after in such manner as to result, so far as practicable, in withholding 22 from an employee's wages an amount substantially equivalent to the tax 23 reasonably estimated to be due for such taxable years as a result of the 24 provisions of this act. Provided, however, for tax year 2015 the with- 25 holding tables shall reflect as accurately as practicable the full 26 amount of tax year 2015 liability so that such amount is withheld by 27 December 31, 2015. Any such regulations to implement a change in with- 28 holding tables and methods for tax year 2015 shall be adopted and effec- 29 tive as soon as practicable and the commissioner may adopt such regu- 30 lations on an emergency basis notwithstanding anything to the contrary 31 in section 202 of the state administrative procedure act. In carrying 32 out his or her duties and responsibilities under this section, the 33 commissioner of taxation and finance may accompany such a rule making 34 procedure with a similar procedure with respect to the taxes required to 35 be deducted and withheld by local laws imposing taxes pursuant to the 36 authority of articles 30, 30-A and 30-B of the tax law, the provisions 37 of any other law in relation to such a procedure to the contrary 38 notwithstanding. 39 § 5. 1. Notwithstanding any provision of law to the contrary, no addi- 40 tion to tax shall be imposed for failure to pay the estimated tax in 41 subsection (c) of section 685 of the tax law and subdivision (c) of 42 section 11-1785 of the administrative code of the city of New York with 43 respect to any underpayment of a required installment due prior to, or 44 within thirty days of, the effective date of this act to the extent that 45 such underpayment was created or increased by the amendments made by 46 this act, provided, however, that the taxpayer remits the amount of any 47 underpayment prior to or with his or her next quarterly estimated tax 48 payment. 49 2. The commissioner of taxation and finance shall take steps to publi- 50 cize the necessary adjustments to estimated tax and, to the extent 51 reasonably possible, to inform the taxpayer of the tax liability changes 52 made by this act. 53 § 6. This act shall take effect immediately. 54 PART CS. 2009--B 10 A. 3009--B 1 Intentionally Omitted 2 PART D 3 Intentionally Omitted 4 PART E 5 Section 1. Section 425 of the real property tax law is amended by 6 adding a new subdivision 15 to read as follows: 7 15. Recoupment of exemptions by commissioner. (a) Generally. If the 8 commissioner should determine, based upon data collected under the STAR 9 registration program, that property improperly received the basic STAR 10 exemption on one or more of the three preceding assessment rolls, the 11 commissioner shall treat the exemption as an improperly granted 12 exemption and proceed in the manner provided by this subdivision; 13 provided that final assessment rolls that were filed prior to April 14 first, two thousand eleven shall not be subject to the provisions of 15 this subdivision. 16 (b) Procedure. The tax savings attributable to each such improperly 17 granted exemption shall be collected from the owners whose property 18 improperly received the exemption for the applicable year, together with 19 interest as specified in this subdivision, by utilizing any of the 20 procedures for collection, levy, and lien of personal income tax set 21 forth in article twenty-two of the tax law, any other relevant proce- 22 dures referenced within the provisions of that article, and any other 23 law as may be applicable, so far as practicable when recouping the 24 exemption amount pursuant to this subdivision, except that: 25 (i) prior to directing that an improperly granted exemption be 26 recouped pursuant to this subdivision, the commissioner shall provide 27 the owners with notice and an opportunity to show the commissioner that 28 the exemption was properly granted. If the owners fail to respond to 29 such notice within forty-five days from the mailing thereof, or if their 30 response does not show to the commissioner's satisfaction that the 31 eligibility requirements were in fact satisfied, the commissioner shall 32 proceed with the recoupment of the improperly granted exemption in 33 accordance with the provisions of this subdivision; and 34 (ii) notwithstanding the provisions of paragraph (b) of subdivision 35 six of this section, neither an assessor nor a board of assessment 36 review has the authority to consider an objection to the recoupment of 37 an exemption pursuant to this subdivision, nor may such an action be 38 reviewed in a proceeding to review an assessment pursuant to title one 39 or one-A of article seven of this chapter. Such an action may only be 40 challenged before the department. If an owner is dissatisfied with the 41 department's final determination, the owner may appeal that determi- 42 nation to the board in a form and manner to be prescribed by the commis- 43 sioner. Such appeal shall be filed within forty-five days from the issu- 44 ance of the department's final determination. If dissatisfied with the 45 board's determination, the owner may seek judicial review thereof pursu- 46 ant to article seventy-eight of the civil practice law and rules. The 47 owner shall otherwise have no right to challenge such final determi- 48 nation in a court action, administrative proceeding, including but not 49 limited to an administrative proceeding pursuant to article forty of the 50 tax law, or any other form of legal recourse against the commissioner,S. 2009--B 11 A. 3009--B 1 the department, the board, the assessor, or any other person, state 2 agency, or local government. 3 (c) The amount to be recouped for each improperly received exemption 4 shall have interest added at the rate prescribed by section nine hundred 5 twenty-four-a of this chapter or such other law as may be applicable for 6 each month or portion thereof since the levy of school taxes upon such 7 assessment roll. 8 (d) In the event that a revocation of prior exemption pursuant to 9 subdivision twelve of this section or a voluntary renunciation of the 10 STAR exemption pursuant to section four hundred ninety-six of this chap- 11 ter has occurred, the provisions of this subdivision shall not be appli- 12 cable to the exemptions so revoked or voluntarily renounced. 13 § 2. This act shall take effect immediately. 14 PART F 15 Section 1. Subdivision 3 of section 97-rrr of the state finance law, 16 as amended by section 8 of part F of chapter 109 of the laws of 2006, is 17 amended to read as follows: 18 3. The monies in such fund shall be appropriated for school property 19 tax exemptions [and local property tax rebates] granted pursuant to the 20 real property tax law [and the tax law] and payable pursuant to section 21 [thirty-six hundred nine] thirty-six hundred nine-e of the education 22 law, and for payments to the city of New York pursuant to section 23 fifty-four-f of this chapter[, and pursuant to section one hundred24seventy-eight of the tax law]. 25 § 2. One-time relief for unenrolled registrants. (1) As used in this 26 section, the term "unenrolled registrant" means a person who purchased 27 or otherwise acquired a primary residence after the taxable status date 28 for the 2013 assessment roll and who registered that property with the 29 commissioner of taxation and finance in accordance with subdivision 14 30 of section 425 of the real property tax law on or before the taxable 31 status date for the 2014 assessment roll, but who failed to file an 32 application for the STAR exemption for that property in accordance with 33 subdivision 6 of section 425 of the real property tax law on or before 34 the taxable status date for the 2014 assessment roll. 35 (2) If the commissioner of taxation and finance is informed on or 36 before October 1, 2015, that an owner of property is an unenrolled 37 registrant, and if such commissioner finds that the unenrolled regis- 38 trant's property would have qualified for the STAR exemption authorized 39 by section 425 of the real property tax law on the 2014 assessment roll 40 if a completed application had been filed with the appropriate assessor 41 in a timely manner, then the commissioner of taxation and finance is 42 authorized to remit directly to the property owner or owners the tax 43 savings that the STAR exemption would have yielded if the STAR exemption 44 had been granted on the 2014 assessment roll. When remitting such 45 amount, the commissioner of taxation and finance shall advise the prop- 46 erty owner or owners that such payment is subject to recovery by such 47 commissioner if the property owner or owners do not apply for and quali- 48 fy for the STAR exemption on the 2015 assessment roll, or if it should 49 otherwise be found to have been erroneously remitted to such property 50 owner or owners. 51 (3) The amounts payable under this act shall be paid from the account 52 established for the payment of STAR benefits to late registrants pursu- 53 ant to subparagraph (iii) of paragraph (a) of subdivision 14 of section 54 425 of the real property tax law.S. 2009--B 12 A. 3009--B 1 (4) The provisions of part 6 of article 22 of the tax law relating to 2 the collection of a tax imposed by such article that has been assessed 3 and remains unpaid shall apply to the recovery authorized by subdivision 4 two of this section of a payment found to have been erroneously made 5 pursuant to this act to an ineligible property owner or owners in the 6 same manner and with the same force and effect as if the language of 7 such article had been incorporated in full into this act except to the 8 extent that any provision of such article is either inconsistent with a 9 provision of this act or is not relevant to this act as determined by 10 the commissioner of taxation and finance. Furthermore, for purposes of 11 applying the provisions of part 6 of article 22 of the tax law, where 12 the terms "tax" and "taxes" appear in such article, such terms shall be 13 construed to mean "a payment or payments erroneously made pursuant to 14 this act to an ineligible property owner or owners". 15 § 3. This act shall take effect immediately. 16 PART G 17 Intentionally Omitted 18 PART H 19 Section 1. Subsection (g) of section 615 of the tax law, as amended by 20 section 1 of part D of chapter 59 of the laws of 2013, is amended to 21 read as follows: 22 (g)(1) With respect to an individual whose New York adjusted gross 23 income is over one million dollars and no more than ten million dollars, 24 the New York itemized deduction shall be an amount equal to fifty 25 percent of any charitable contribution deduction allowed under section 26 one hundred seventy of the internal revenue code for taxable years 27 beginning after two thousand nine and before two thousand [sixteen] 28 eighteen. With respect to an individual whose New York adjusted gross 29 income is over one million dollars, the New York itemized deduction 30 shall be an amount equal to fifty percent of any charitable contribution 31 deduction allowed under section one hundred seventy of the internal 32 revenue code for taxable years beginning in two thousand nine or after 33 two thousand [fifteen] seventeen. 34 (2) With respect to an individual whose New York adjusted gross income 35 is over ten million dollars, the New York itemized deduction shall be an 36 amount equal to twenty-five percent of any charitable contribution 37 deduction allowed under section one hundred seventy of the internal 38 revenue code for taxable years beginning after two thousand nine and 39 ending before two thousand [sixteen] eighteen. 40 § 2. Subdivision (g) of section 11-1715 of the administrative code of 41 the city of New York, as amended by section 2 of part D of chapter 59 of 42 the laws of 2013, is amended to read as follows: 43 (g) (1) With respect to an individual whose New York adjusted gross 44 income is over one million dollars but no more than ten million dollars, 45 the New York itemized deduction shall be an amount equal to fifty 46 percent of any charitable contribution deduction allowed under section 47 one hundred seventy of the internal revenue code for taxable years 48 beginning after two thousand nine and before two thousand [sixteen] 49 eighteen. With respect to an individual whose New York adjusted gross 50 income is over one million dollars, the New York itemized deduction 51 shall be an amount equal to fifty percent of any charitable contributionS. 2009--B 13 A. 3009--B 1 deduction allowed under section one hundred seventy of the internal 2 revenue code for taxable years beginning in two thousand nine or after 3 two thousand [fifteen] seventeen. 4 (2) With respect to an individual whose New York adjusted gross income 5 is over ten million dollars, the New York itemized deduction shall be an 6 amount equal to twenty-five percent of any charitable contribution 7 deduction allowed under section one hundred seventy of the internal 8 revenue code for taxable years beginning after two thousand nine and 9 ending before two thousand [sixteen] eighteen. 10 § 3. This act shall take effect immediately. 11 PART I 12 Section 1. Paragraph 41 of subsection (c) of section 612 of the tax 13 law, as added by section 1 of part KK of chapter 59 of the laws of 2014, 14 is amended to read as follows: 15 (41) The amount of any award paid to a volunteer firefighter or volun- 16 teer ambulance worker from a length of service defined contribution plan 17 or defined benefit plan as provided for in articles eleven-A, eleven-AA, 18 eleven-AAA and eleven-AAAA of the general municipal law, to the extent 19 that such award is includable in gross income for federal income tax 20 purposes; provided, however, that such award is not distributed in the 21 form of a lump sum distribution, as defined in subparagraph [(A)] (D) of 22 paragraph four of subsection (e) of section four hundred two of the 23 internal revenue code and taxed under section six hundred three of this 24 article; and provided, further, that such award is not distributed to a 25 taxpayer who has not attained the age of fifty-nine and one-half years. 26 § 2. Paragraph 37 of subdivision (c) of section 11-1712 of the admin- 27 istrative code of the city of New York, as added by section 2 of part KK 28 of chapter 59 of the laws of 2014, is amended to read as follows: 29 (37) The amount of any award paid to a volunteer firefighter or volun- 30 teer ambulance worker from a length of service defined contribution plan 31 or defined benefit plan as provided for in articles eleven-A, eleven-AA, 32 eleven-AAA and eleven-AAAA of the general municipal law, to the extent 33 that such award is includable in gross income for federal income tax 34 purposes; provided, however, that such award is not distributed in the 35 form of a lump sum distribution, as defined in subparagraph [(A)] (D) of 36 paragraph four of subsection (e) of section four hundred two of the 37 internal revenue code and taxed under section six hundred three of the 38 tax law; and provided, further, that such award is not distributed to a 39 taxpayer who has not attained the age of fifty-nine and one-half years. 40 § 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as 41 amended by chapter 760 of the laws of 1992, is amended to read as 42 follows: 43 (3-a) Pensions and annuities received by an individual who has 44 attained the age of fifty-nine and one-half, not otherwise excluded 45 pursuant to paragraph three of this subsection, to the extent includible 46 in gross income for federal income tax purposes, but not in excess of 47 twenty thousand dollars, which are periodic payments attributable to 48 personal services performed by such individual prior to his retirement 49 from employment, which arise (i) from an employer-employee relationship 50 or (ii) from contributions to a retirement plan which are deductible for 51 federal income tax purposes. However, the term "pensions and annuities" 52 shall also include distributions received by an individual who has 53 attained the age of fifty-nine and one-half from an individual retire- 54 ment account or an individual retirement annuity, as defined in sectionS. 2009--B 14 A. 3009--B 1 four hundred eight of the internal revenue code, and distributions 2 received by an individual who has attained the age of fifty-nine and 3 one-half from self-employed individual and owner-employee retirement 4 plans which qualify under section four hundred one of the internal 5 revenue code, whether or not the payments are periodic in nature. Never- 6 theless, the term "pensions and annuities" shall not include any lump 7 sum distribution, as defined in subparagraph [(A)] (D) of paragraph four 8 of subsection (e) of section four hundred two of the internal revenue 9 code and taxed under section six hundred three of this article. Where a 10 husband and wife file a joint state personal income tax return, the 11 modification provided for in this paragraph shall be computed as if they 12 were filing separate state personal income tax returns. Where a payment 13 would otherwise come within the meaning of the term "pensions and annui- 14 ties" as set forth in this paragraph, except that such individual is 15 deceased, such payment shall, nevertheless, be treated as a pension or 16 annuity for purposes of this paragraph if such payment is received by 17 such individual's beneficiary. 18 § 4. Subparagraph (B) of paragraph 1 of subsection (e-1) of section 19 606 of the tax law, as added by section 2 of part K of chapter 59 of the 20 laws of 2014, is amended to read as follows: 21 (B) "Household" or "members of the household" means a qualified 22 taxpayer and all other persons, not necessarily related, who have the 23 same residence and share its furnishings, facilities and accommodations. 24 Such terms shall not include a tenant, subtenant, roomer or boarder who 25 is not related to the qualified taxpayer in any degree specified in 26 [paragraphs one through eight of subsection (a)] subparagraphs (A) 27 through (G) of paragraph two of subsection (d) of section one hundred 28 fifty-two of the internal revenue code. Provided, however, no person may 29 be a member of more than one household at one time. 30 § 5. Subparagraph (D) of paragraph 1 of subsection (e-1) of section 31 606 of the tax law, as added by section 2 of part K of chapter 59 of the 32 laws of 2014, is amended to read as follows: 33 (D) "Residence" means a dwelling in this state, in a city with a popu- 34 lation of over one million, owned or rented by the taxpayer, and so much 35 of the land abutting it, not exceeding one acre, as is reasonably neces- 36 sary for use of the dwelling as a home, and may consist of a part of a 37 multi-dwelling or multi-purpose building including a cooperative or 38 condominium, and rental units within a single dwelling. Residence 39 includes a trailer or mobile home, used exclusively for residential 40 purposes and defined as real property pursuant to paragraph (g) of 41 subdivision twelve of section one hundred two of the real property tax 42 law. 43 § 6. Subparagraph (B) of paragraph 1 of subsection (e) of section 606 44 of the tax law, as amended by chapter 28 of the laws of 1987, is amended 45 to read as follows: 46 (B) "Household" or "members of the household" means a qualified 47 taxpayer and all other persons, not necessarily related, who have the 48 same residence and share its furnishings, facilities and accommodations. 49 Such terms shall not include a tenant, subtenant, roomer or boarder who 50 is not related to the qualified taxpayer in any degree specified in 51 [paragraphs one through eight of subsection (a)] subparagraphs (A) 52 through (G) of paragraph two of subsection (d) of section one hundred 53 fifty-two of the internal revenue code. Provided, however, no person may 54 be a member of more than one household at one time.S. 2009--B 15 A. 3009--B 1 § 7. Paragraph 1 of subsection (b) of section 806 of the tax law, as 2 added by section 2 of part DD of chapter 59 of the laws of 2014, is 3 amended to read as follows: 4 (1) The commissioner may require the filing of a combined return 5 which, in addition to the return provided for in subsection (b) of 6 section eight hundred four of this article, may also include any of the 7 returns required to be filed by a [resident individual of New York8state] taxpayer pursuant to the provisions of section six hundred 9 fifty-one of this chapter and which may be required to be filed by such 10 [individual] taxpayer pursuant to any local law enacted pursuant to the 11 authority of article thirty, thirty-A or thirty-B of this chapter. 12 § 8. Paragraph 1 and clause (ii) of subparagraph (B) of paragraph 2 of 13 subsection (xx) of section 606 of the tax law, as added by section 4 of 14 part R of chapter 59 of the laws of 2014, are amended to read as 15 follows: 16 (1) A qualified New York manufacturer will be allowed a credit equal 17 to twenty percent of the real property tax it paid during the taxable 18 year for real property owned by such manufacturer in New York which was 19 principally used during the taxable year for manufacturing to the extent 20 not deducted in computing [federal] New York adjusted gross income. This 21 credit will not be allowed if the real property taxes that are the basis 22 for this credit are included in the calculation of another credit 23 claimed by the taxpayer. 24 (ii) In addition, the term real property tax includes taxes paid by 25 the taxpayer upon real property principally used during the taxable year 26 by the taxpayer in manufacturing where the taxpayer leases such real 27 property from an unrelated third party if the following conditions are 28 satisfied: (I) the tax must be paid by the taxpayer as lessee pursuant 29 to explicit requirements in a written lease, and (II) the taxpayer as 30 lessee has paid such taxes directly to the taxing authority and has 31 received a written receipt for payment of taxes from the taxing authori- 32 ty. In the case of a [combined group that constitutes a qualified New33York manufacturer] taxpayer that, during the taxable year, is principal- 34 ly engaged in the production of goods by farming, agriculture, horticul- 35 ture, floriculture, viticulture, or commercial fishing, the taxpayer is 36 eligible if the taxpayer satisfies the conditions in the preceding 37 sentence [are satisfied if one corporation in the combined group is the38lessee and another corporation in the combined group makes the payments39to the taxing authority] and the taxpayer leases such real property from 40 a related or unrelated party. 41 § 9. Subsection (yy) of section 606 of the tax law, as added by 42 section 4 of part T of chapter 59 of the laws of 2014, is amended to 43 read as follows: 44 (yy) The tax-free NY area excise tax on telecommunication services 45 credit. A taxpayer that is a business or owner of a business that is 46 located in a tax-free NY area approved pursuant to article twenty-one of 47 the economic development law shall be allowed a credit equal to the 48 excise tax on telecommunication services imposed by section one hundred 49 eighty-six-e of this chapter and passed through to such business during 50 the taxable year to the extent not otherwise deducted in computing 51 [federal] New York adjusted gross income. This credit may be claimed 52 only where any tax imposed by such section one hundred eighty-six-e has 53 been separately stated on a bill from the provider of telecommunication 54 services and paid by such taxpayer with respect to such services 55 rendered within a tax-free NY area during the taxable year. If the 56 amount of the credit allowed under this subsection for any taxable yearS. 2009--B 16 A. 3009--B 1 exceeds the taxpayer's tax for such year, the excess will be treated as 2 an overpayment to be credited or refunded in accordance with the 3 provisions of section six hundred eighty-six of this article, provided, 4 however, that no interest will be paid thereon. 5 § 10. Subparagraph (i) of paragraph 2 of subdivision (b) and subdivi- 6 sion (d) of section 25-b of the labor law, as added by section 1 of part 7 MM of chapter 59 of the laws of 2014, are amended to read as follows: 8 (i) who is deemed to have a developmental disability, as that term is 9 defined in subdivision twenty-two of section 1.03 of the mental hygiene 10 law and who is certified by the education department or the office for 11 people with developmental disabilities[:12(A)] as a person with a disability which constitutes or results in a 13 substantial handicap to employment; and 14 [(B) as a person having completed or as receiving services under an15individualized written rehabilitation plan approved by the education16department or other state agency responsible for providing vocational17rehabilitation services to such individual; and] 18 (d) To participate in the [developmentally disabled works] workers 19 with disabilities tax credit program, an employer must submit an appli- 20 cation (in a form prescribed by the commissioner) to the commissioner 21 [no later than November thirtieth of the prior year]. The commissioner 22 shall establish guidelines that specify requirements for employers to 23 participate in the program including criteria for certifying qualified 24 employees. Any regulations that the commissioner determines are neces- 25 sary may be adopted on an emergency basis notwithstanding anything to 26 the contrary in section two hundred two of the state administrative 27 procedure act. Such requirements may include the types of industries 28 that the employers are engaged in. 29 § 11. This act shall take effect immediately, provided, however that: 30 (i) sections one and two of this act shall be deemed to have been in 31 full force and effect on and after the effective date of part KK of 32 chapter 59 of the laws of 2014; 33 (ii) sections four and five of this act shall be deemed to have been 34 in full force and effect on and after the effective date of part K of 35 chapter 59 of the laws of 2014, provided, however, that the amendments 36 to subsection (e-1) of section 606 of the tax law made by sections four 37 and five of this act shall not affect the repeal of such subsection and 38 shall be deemed repealed therewith; 39 (iii) section seven of this act shall be deemed to have been in full 40 force and effect on and after the effective date of part DD of chapter 41 59 of the laws of 2014; 42 (iv) section eight of this act shall be deemed to have been in full 43 force and effect on and after the effective date of part R of chapter 59 44 of the laws of 2014; 45 (v) section nine of this act shall be deemed to have been in full 46 force and effect on and after the effective date of part T of chapter 59 47 of the laws of 2014; 48 (vi) section ten of this act shall be deemed to have been in full 49 force and effect on and after the effective date of part MM of chapter 50 59 of the laws of 2014; and 51 (vii) the amendments to section 25-b of the labor law made by section 52 ten of this act, shall not affect the repeal of such section and shall 53 be deemed repealed therewith. 54 PART JS. 2009--B 17 A. 3009--B 1 Section 1. Section 9 of part V of chapter 62 of the laws of 2006, 2 amending the tax law relating to the empire state commercial production 3 tax credit, is REPEALED. 4 § 2. Subdivision (c) of section 28 of the tax law, as amended by 5 section 45 of part A of chapter 59 of the laws of 2014, is relettered 6 subdivision (d) and a new subdivision (c) is added to read as follows: 7 (c) The department of economic development shall submit, on or before 8 December first of each year, to the governor, the director of the divi- 9 sion of the budget, the temporary president of the senate, and the 10 speaker of the assembly an annual report including, but not limited to, 11 the following information regarding the previous calendar year: 12 (1) the total dollar amount of credits allocated, the name and address 13 of each qualified commercial production company allocated credits under 14 this section, the total amount of credits allocated to each qualified 15 commercial production company, the total amount of qualified production 16 costs and production costs for each qualified commercial production 17 company, and the estimated number of employees, credit-eligible man 18 hours, and credit-eligible wages associated with each qualified commer- 19 cial production company allocated credits under this section; 20 (2) for qualified commercial production companies that were allocated 21 credit pursuant to subparagraph (ii) of paragraph two of subdivision (a) 22 of this section: the name and address of each qualified commercial 23 production company, the total dollar amount of credits allocated, the 24 total amount of credits allocated to each qualified commercial 25 production company, total qualified production costs and production 26 costs for each qualified production company, and the estimated number of 27 employees, credit-eligible man hours, and credit-eligible wages associ- 28 ated with each qualified commercial production company that filmed or 29 recorded a qualified commercial within the district; 30 (3) for qualified commercial production companies that were allocated 31 credit pursuant to subparagraph (iii) of paragraph two of subdivision 32 (a) of this section: the name and address of each qualified commercial 33 production company, the total dollar amount of credits allocated, the 34 total amount of credits allocated to each qualified commercial 35 production company, total qualified production costs and production 36 costs for each qualified production company, and the estimated number of 37 employees, credit-eligible man hours, and credit-eligible wages associ- 38 ated with each qualified commercial production company that filmed or 39 recorded a qualified commercial outside the district; and 40 (4) the amount of credits reallocated to all eligible qualified 41 commercial production companies pursuant to subparagraph (iii) of para- 42 graph two of subdivision (a) of this section. 43 (5) The report may also include any recommendations for changes in the 44 calculation or administration of the credit, recommendations regarding 45 continuing modification or repeal of this credit, and any other informa- 46 tion regarding this credit as may be useful and appropriate. 47 § 3. This act shall take effect immediately with the first report 48 being due December 1, 2016, with regard to credits allocated in calendar 49 year 2015. 50 PART K 51 Section 1. Subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 52 and 19 of section 352 of the economic development law, as added by 53 section 1 of part MM of chapter 59 of the laws of 2010, subdivision 12S. 2009--B 18 A. 3009--B 1 as amended by section 1 of part G of chapter 61 of the laws of 2011, are 2 amended to read as follows: 3 7. "Entertainment company" means a corporation, partnership, limited 4 partnership, or other entity principally engaged in the production or 5 post production of (i) motion pictures, which shall include feature- 6 length films and television films, (ii) instructional videos, (iii) 7 televised commercial advertisements, (iv) animated films or cartoons, 8 (v) music videos, (vi) television programs, which shall include, but not 9 be limited to, television series, television pilots, and single tele- 10 vision episodes, or (vii) programs primarily intended for radio broad- 11 cast. "Entertainment company" shall not include an entity (i) princi- 12 pally engaged in the live performance of events, including, but not 13 limited to, theatrical productions, concerts, circuses, and sporting 14 events, (ii) principally engaged in the production of content intended 15 primarily for industrial, corporate or institutional end-users, (iii) 16 principally engaged in the production of fundraising films or programs, 17 or (iv) engaged in the production of content for which records are 18 required under section 2257 of title 18, United States code, to be main- 19 tained with respect to any performer in such production. 20 8. "Financial services data centers or financial services customer 21 back office operations" means operations that manage the data or 22 accounts of existing customers or provide product or service information 23 and support to customers of financial services companies, including 24 banks, other lenders, securities and commodities brokers and dealers, 25 investment banks, portfolio managers, trust offices, and insurance 26 companies. 27 [8.] 9. "Investment zone" shall mean an area within the state that had 28 been designated under paragraph (i) of subdivision (a) and subdivision 29 (d) of section nine hundred fifty-eight of the general municipal law 30 that was wholly contained within up to four distinct and separate 31 contiguous areas as of the date immediately preceding the date the 32 designation of such area expired pursuant to section nine hundred 33 sixty-nine of the general municipal law. 34 [9.] 10. "Manufacturing" means the process of working raw materials 35 into products suitable for use or which gives new shapes, new quality or 36 new combinations to matter which has already gone through some artifi- 37 cial process by the use of machinery, tools, appliances, or other simi- 38 lar equipment. "Manufacturing" does not include an operation that 39 involves only the assembly of components, provided, however, the assem- 40 bly of motor vehicles or other high value-added products shall be 41 considered manufacturing. 42 [10.] 11. "Music production" means the process of creating sound 43 recordings of at least eight minutes, recorded in professional sound 44 studios, intended for commercial release. "Music production" does not 45 include recording of live concerts, or recordings that are primarily 46 spoken word or wildlife or nature sounds, or produced for instructional 47 use or advertising or promotional purposes. 48 12. "Net new jobs" means [jobs created in this state that]: 49 (a) jobs created in this state that (i) are new to the state[;], 50 [(b)] (ii) have not been transferred from employment with another 51 business located in this state including from a related person in this 52 state[;], 53 [(c)] (iii) are either full-time wage-paying jobs or equivalent to a 54 full-time wage-paying job requiring at least thirty-five hours per 55 week[;], and 56 [(d)] (iv) are filled for more than six months[.]; orS. 2009--B 19 A. 3009--B 1 (b) jobs obtained by an entertainment company in this state (i) as a 2 result of the termination of a licensing agreement with another enter- 3 tainment company, (ii) that the commissioner determines to be at risk of 4 leaving the state as a direct result of the termination, (iii) that are 5 either full-time wage-paying jobs or equivalent to a full-time wage-pay- 6 ing job requiring at least thirty-five hours per week, and (iv) that are 7 filled for more than six months. 8 [11.] 13. "Participant" means a business entity that: 9 (a) has completed an application prescribed by the department to be 10 admitted into the program; 11 (b) has been issued a certificate of eligibility by the department; 12 (c) has demonstrated that it meets the eligibility criteria in section 13 three hundred fifty-three and subdivision two of section three hundred 14 fifty-four of this article; and 15 (d) has been certified as a participant by the commissioner. 16 [12.] 14. "Preliminary schedule of benefits" means the maximum aggre- 17 gate amount of each component of the tax credit that a participant in 18 the excelsior jobs program is eligible to receive pursuant to this arti- 19 cle. The schedule shall indicate the annual amount of each component of 20 the credit a participant may claim in each of its ten years of eligibil- 21 ity. The preliminary schedule of benefits shall be issued by the 22 department when the department approves the application for admission 23 into the program. The commissioner may amend that schedule, provided 24 that the commissioner complies with the credit caps in section three 25 hundred fifty-nine of this article. 26 [13.] 15. "Qualified investment" means an investment in tangible prop- 27 erty (including a building or a structural component of a building) 28 owned by a business enterprise which: 29 (a) is depreciable pursuant to section one hundred sixty-seven of the 30 internal revenue code; 31 (b) has a useful life of four years or more; 32 (c) is acquired by purchase as defined in section one hundred seven- 33 ty-nine (d) of the internal revenue code; 34 (d) has a situs in this state; and 35 (e) is placed in service in the state on or after the date the certif- 36 icate of eligibility is issued to the business enterprise. 37 [14.] 16. "Regionally significant project" means (a) a manufacturer 38 creating at least fifty net new jobs in the state and making significant 39 capital investment in the state; (b) a business creating at least twenty 40 net new jobs in agriculture in the state and making significant capital 41 investment in the state, (c) a financial services firm, distribution 42 center, or back office operation creating at least three hundred net new 43 jobs in the state and making significant capital investment in the 44 state, [or] (d) a scientific research and development firm creating at 45 least twenty net new jobs in the state, and making significant capital 46 investment in the state or (e) an entertainment company creating or 47 obtaining at least two hundred net new jobs in the state and making 48 significant capital investment in the state. Other businesses creating 49 three hundred or more net new jobs in the state and making significant 50 capital investment in the state may be considered eligible as a 51 regionally significant project by the commissioner as well. The commis- 52 sioner shall promulgate regulations pursuant to section three hundred 53 fifty-six of this article to determine what constitutes significant 54 capital investment for each of the project categories indicated in this 55 subdivision and what additional criteria a business must meet to be 56 eligible as a regionally significant project, including, but not limitedS. 2009--B 20 A. 3009--B 1 to, whether a business exports a substantial portion of its products or 2 services outside of the state or outside of a metropolitan statistical 3 area or county within the state. 4 [15.] 17. "Related person" means a "related person" pursuant to 5 subparagraph (c) of paragraph three of subsection (b) of section four 6 hundred sixty-five of the internal revenue code. 7 [16.] 18. "Remuneration" means wages and benefits paid to an employee 8 by a participant in the excelsior jobs program. 9 [17.] 19. "Research and development expenditures" mean the expenses of 10 the business enterprise that are qualified research expenses under the 11 federal research and development credit under section forty-one of the 12 internal revenue code and are attributable to activities conducted in 13 the state. If the federal research and development credit has expired, 14 then the research and development expenditures shall be calculated as if 15 the federal research and development credit structure and definition in 16 effect in federal tax year two thousand nine were still in effect. 17 [18.] 20. "Scientific research and development" means conducting 18 research and experimental development in the physical, engineering, and 19 life sciences, including but not limited to agriculture, electronics, 20 environmental, biology, botany, biotechnology, computers, chemistry, 21 food, fisheries, forests, geology, health, mathematics, medicine, ocean- 22 ography, pharmacy, physics, veterinary, and other allied subjects. For 23 the purposes of this article, scientific research and development does 24 not include medical or veterinary laboratory testing facilities. 25 [19.] 21. "Software development" means the creation of coded computer 26 instructions or production or post-production of video games, as defined 27 in subdivision one-a of section six hundred eleven of the general busi- 28 ness law, other than those embedded and used exclusively in advertising, 29 promotional websites or microsites, and also includes new media as 30 defined by the commissioner in regulations. 31 § 2. Subdivisions 1, 3, and 5 of section 353 of the economic develop- 32 ment law, subdivisions 1 and 5 as amended by section 2 of part G of 33 chapter 61 of the laws of 2011 and subdivision 3 as amended by section 1 34 of part C of chapter 68 of the laws of 2013, are amended to read as 35 follows: 36 1. To be a participant in the excelsior jobs program, a business enti- 37 ty shall operate in New York state predominantly: 38 (a) as a financial services data center or a financial services back 39 office operation; 40 (b) in manufacturing; 41 (c) in software development and new media; 42 (d) in scientific research and development; 43 (e) in agriculture; 44 (f) in the creation or expansion of back office operations in the 45 state; 46 (g) in a distribution center; [or] 47 (h) in an industry with significant potential for private-sector 48 economic growth and development in this state as established by the 49 commissioner in regulations promulgated pursuant to this article. In 50 promulgating such regulations the commissioner shall include job and 51 investment criteria; 52 (i) as an entertainment company; or 53 (j) in music production. 54 3. For the purposes of this article, in order to participate in the 55 excelsior jobs program, a business entity operating predominantly in 56 manufacturing must create at least ten net new jobs; a business entityS. 2009--B 21 A. 3009--B 1 operating predominately in agriculture must create at least five net new 2 jobs; a business entity operating predominantly as a financial service 3 data center or financial services customer back office operation must 4 create at least fifty net new jobs; a business entity operating predomi- 5 nantly in scientific research and development must create at least five 6 net new jobs; a business entity operating predominantly in software 7 development must create at least five net new jobs; a business entity 8 creating or expanding back office operations must create at least fifty 9 net new jobs; a business entity operating predominately in music 10 production must create at least five net new jobs; a business entity 11 operating predominantly as an entertainment company must create or 12 obtain at least one hundred net new jobs; or a business entity operating 13 predominantly as a distribution center in the state must create at least 14 seventy-five net new jobs, notwithstanding subdivision five of this 15 section; or a business entity must be a regionally significant project 16 as defined in this article; or 17 5. A not-for-profit business entity, a business entity whose primary 18 function is the provision of services including personal services, busi- 19 ness services, or the provision of utilities, and a business entity 20 engaged predominantly in the retail or entertainment industry, other 21 than a business operating as an entertainment company as defined in this 22 article and other than a business entity engaged in music production, 23 and a company engaged in the generation or distribution of electricity, 24 the distribution of natural gas, or the production of steam associated 25 with the generation of electricity are not eligible to receive the tax 26 credit described in this article. 27 § 3. Subdivision 1 of section 354 of the economic development law, as 28 amended by section 3 of part G of chapter 61 of the laws of 2011, is 29 amended as follows: 30 1. A business enterprise must submit a completed application as 31 prescribed by the commissioner. An application made by an entertainment 32 company must be submitted by June first, two thousand fifteen, except 33 for an application made by an entertainment company that is eligible to 34 participate in the excelsior jobs program based upon creating net new 35 jobs pursuant to paragraph (a) of subdivision twelve of section three 36 hundred fifty-two of this article. An application may be recommended by 37 entities, including but not limited to, those created pursuant to subdi- 38 vision (e) of section nine hundred fifty-seven of the general municipal 39 law. 40 § 4. Subdivision 6 of section 355 of the economic development law, as 41 amended by section 4 of part G of chapter 61 of the laws of 2011, is 42 amended to read as follows: 43 6. Claim of tax credit. The business enterprise shall be allowed to 44 claim the credit as prescribed in section thirty-one of the tax law. No 45 costs used by an entertainment company as the basis for the allowance of 46 a tax credit described in this section shall be used by such enter- 47 tainment company to claim any other credit allowed pursuant to the tax 48 law. 49 § 5. This act shall take effect immediately. 50 PART L 51 Intentionally Omitted 52 PART MS. 2009--B 22 A. 3009--B 1 Intentionally Omitted 2 PART N 3 Intentionally Omitted 4 PART O 5 Section 1. The economic development law is amended by adding a new 6 article 22 to read as follows: 7 ARTICLE 22 8 EMPLOYEE TRAINING INCENTIVE PROGRAM 9 Section 441. Definitions. 10 442. Eligibility criteria. 11 443. Application and approval process. 12 444. Powers and duties of the commissioner. 13 445. Recordkeeping requirements. 14 446. Cap on tax credit. 15 § 441. Definitions. As used in this article, the following terms shall 16 have the following meanings: 17 1. "Approved provider" means an entity meeting such criteria as shall 18 be established by the commissioner in rules and regulations promulgated 19 pursuant to this article, that may provide eligible training to employ- 20 ees of a business entity participating in the employee training incen- 21 tive program; provided that, for internship programs, the business enti- 22 ty shall be an approved provider or an approved provider in contract 23 with such business entity. Such criteria shall ensure that any approved 24 provider possess adequate credentials to provide the training described 25 in an application by a business entity to the commissioner to partic- 26 ipate in the employee training incentive program. 27 2. "Commissioner" means the commissioner of economic development. 28 3. "Eligible training" means (a) training provided by an approved 29 provider that is: 30 (i) to upgrade, retrain or improve the productivity of employees; 31 (ii) provided to employees filling net new jobs, or to existing 32 employees in connection with a significant capital investment by a 33 participating business entity; 34 (iii) determined by the commissioner to satisfy a business need on the 35 part of a participating business entity; 36 (iv) not designed to train or upgrade skills as required by a federal 37 or state entity; 38 (v) not training the completion of which may result in the awarding of 39 a license or certificate required by law in order to perform a job func- 40 tion; and 41 (vi) not culturally focused training; or 42 (b) an internship program in advanced technology approved by the 43 commissioner and provided by an approved provider, on or after August 44 first, two thousand fifteen, to provide employment and experience oppor- 45 tunities for current students, recent graduates, and recent members of 46 the armed forces. 47 4. "Net new job" means a job created in this state that: 48 (a) is new to the state; 49 (b) has not been transferred from employment with another business 50 located in this state through an acquisition, merger, consolidation orS. 2009--B 23 A. 3009--B 1 other reorganization of businesses or the acquisition of assets of 2 another business, and has not been transferred from employment with a 3 related person in this state; 4 (c) is either a full-time wage-paying job or equivalent to a full-time 5 wage-paying job requiring at least thirty-five hours per week; 6 (d) is filled for more than six months; 7 (e) is filled by a person who has received eligible training; and 8 (f) is comprised of tasks the performance of which required the person 9 filling the job to undergo eligible training. 10 5. "Significant capital investment" means a capital investment of at 11 least one million dollars in new business processes or equipment. 12 6. "Strategic industry" means an industry in this state, as estab- 13 lished by the commissioner in regulations promulgated pursuant to this 14 article, based upon the following criteria: 15 (a) shortages of workers trained to work within the industry; 16 (b) technological disruption in the industry, requiring significant 17 capital investment for existing businesses to remain competitive; 18 (c) the ability of businesses in the industry to relocate outside of 19 the state in order to attract talent; 20 (d) the potential to recruit minorities and women to be trained to 21 work in the industry in which they are traditionally underrepresented; 22 (e) the potential to create jobs in economically distressed areas, 23 which shall be based on criteria indicative of economic distress, 24 including poverty rates, numbers of persons receiving public assistance, 25 and unemployment rates; or 26 (f) such other criteria as shall be developed by the commissioner in 27 consultation with the commissioner of labor. 28 § 442. Eligibility criteria. In order to participate in the employee 29 training incentive program, a business entity must satisfy the following 30 criteria: 31 1. (a) The business entity must operate in the state predominantly in 32 a strategic industry; 33 (b) The business entity must demonstrate that it is obtaining eligible 34 training from an approved provider; 35 (c) The business entity must create at least ten net new jobs or make 36 a significant capital investment in connection with the eligible train- 37 ing; and 38 (d) The business entity must be in compliance with all worker 39 protection and environmental laws and regulations. In addition, the 40 business entity may not owe past due state taxes or local property 41 taxes; or 42 2. (a) The business entity, or an approved provider in contract with 43 such business entity, must be approved by the commissioner to provide 44 eligible training in the form of an internship program in advanced tech- 45 nology pursuant to paragraph (b) of subdivision three of section four 46 hundred forty-one of this article; 47 (b) The business entity must be located in the state; 48 (c) The business entity must be in compliance with all worker 49 protection and environmental laws and regulations. In addition, the 50 business entity must not have past due state taxes or local property 51 taxes; 52 (d) The internship program shall not displace regular employees; 53 (e) The business entity must have less than one hundred employees; and 54 (f) Participation of an individual in an internship program shall not 55 last more than a total of twelve months.S. 2009--B 24 A. 3009--B 1 § 443. Application and approval process. 1. A business entity must 2 submit a completed application in such form and with such information as 3 prescribed by the commissioner. 4 2. As part of such application, each business entity must: 5 (a) provide such documentation as the commissioner may require in 6 order for the commissioner to determine that the business entity intends 7 to procure eligible training for its employees from an approved provid- 8 er; 9 (b) agree to allow the department of taxation and finance to share its 10 tax information with the department. However, any information shared as 11 a result of this agreement shall not be available for disclosure or 12 inspection under the state freedom of information law; 13 (c) agree to allow the department of labor to share its tax and 14 employer information with the department. However, any information 15 shared as a result of this agreement shall not be available for disclo- 16 sure or inspection under the state freedom of information law; 17 (d) allow the department and its agents access to any and all books 18 and records the department may require to monitor compliance; 19 (e) provide a clear and detailed presentation of all related persons 20 to the applicant to assure the department that jobs are not being shift- 21 ed within the state; and 22 (f) certify, under penalty of perjury, that it is in substantial 23 compliance with all environmental, worker protection, and local, state, 24 and federal tax laws. 25 3. The commissioner may approve an application from a business entity 26 upon determining that such business entity meets the eligibility crite- 27 ria established in section four hundred forty-two of this article. 28 Following approval by the commissioner of an application by a business 29 entity to participate in the employee training incentive program, the 30 commissioner shall issue a certificate of tax credit to the business 31 entity upon its demonstrating successful completion of such eligible 32 training to the satisfaction of the commissioner. For eligible training 33 as defined by paragraph (a) of subdivision three of section four hundred 34 forty-one of this article the amount of the credit shall be equal to 35 fifty percent of eligible training costs, up to a credit of ten thousand 36 dollars per employee receiving eligible training. For eligible training 37 as defined by paragraph (b) of subdivision three of section four hundred 38 forty-one of this article, the amount of the credit shall be equal to 39 fifty percent of the stipend paid to an intern, up to a credit of three 40 thousand dollars per intern. The tax credits shall be claimed by the 41 qualified employer as specified in subdivision fifty of section two 42 hundred ten-B and subsection (ddd) of section six hundred six of the tax 43 law. 44 § 444. Powers and duties of the commissioner. 1. The commissioner 45 shall, in consultation with the commissioner of labor, promulgate regu- 46 lations consistent with the purposes of this article that, notwithstand- 47 ing any provisions to the contrary in the state administrative procedure 48 act, may be adopted on an emergency basis. Such regulations shall 49 include, but not be limited to, eligibility criteria for business enti- 50 ties desiring to participate in the employee training incentive program, 51 procedures for the receipt and evaluation of applications from business 52 entities to participate in the program, and such other provisions as the 53 commissioner deems to be appropriate in order to implement the 54 provisions of this article. 55 2. The commissioner shall, in consultation with the department of 56 taxation and finance, develop a certificate of tax credit that shall beS. 2009--B 25 A. 3009--B 1 issued by the commissioner to participating business entities. Partic- 2 ipants may be required by the commissioner of taxation and finance to 3 include the certificate of tax credit with their tax return to receive 4 any tax benefits under this article. 5 3. The commissioner shall solely determine the eligibility of any 6 applicant applying for entry into the program and shall remove any 7 participant from the program for failing to meet any of the requirements 8 set forth in subdivision one of section four hundred forty-two of this 9 article or for making a material misrepresentation with respect to its 10 participation in the employee training incentive program. 11 § 445. Recordkeeping requirements. Each business entity participating 12 in the employee training incentive program shall maintain all relevant 13 records for the duration of its program participation plus three years. 14 § 446. Cap on tax credit. The total amount of tax credits listed on 15 certificates of tax credit issued by the commissioner for any taxable 16 year may not exceed five million dollars, and shall be allotted from the 17 funds available for tax credits under the excelsior jobs program act 18 pursuant to section three hundred fifty-nine of this chapter, provided 19 however, that the portion of this tax credit cap allocated to internship 20 programs in advanced technology shall be not less than two hundred fifty 21 thousand dollars nor more than one million dollars. 22 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 23 sion 50 to read as follows: 24 50. Employee training incentive program tax credit. (a) A taxpayer 25 that has been approved by the commissioner of economic development to 26 participate in the employee training incentive program and has been 27 issued a certificate of tax credit pursuant to section four hundred 28 forty-three of the economic development law shall be allowed to claim a 29 credit against the tax imposed by this article. The credit shall equal 30 fifty percent of a taxpayer's eligible training costs, up to a credit of 31 ten thousand dollars per employee completing eligible training pursuant 32 to paragraph (a) of subdivision three of section four hundred forty-one 33 of the economic development law. The credit shall equal fifty percent 34 of the stipend paid to an intern, up to a credit of three thousand 35 dollars per intern completing eligible training pursuant to paragraph 36 (b) of subdivision three of section four hundred forty-one of the 37 economic development law. In no event shall a taxpayer be allowed a 38 credit greater than the amount of credit listed on the certificate of 39 tax credit issued by the commissioner of economic development. The cred- 40 it will be allowed in the taxable year in which the eligible training is 41 completed. 42 (b) The credit allowed under this subdivision for any taxable year may 43 not reduce the tax due for that year to less than the amount prescribed 44 in paragraph (d) of subdivision one of section two hundred ten of this 45 article. However, if the amount of credit allowed under this subdivi- 46 sion for any taxable year reduces the tax to such amount, or if the 47 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 48 any amount of credit thus not deductible in that taxable year will be 49 treated as an overpayment of tax to be credited or refunded in accord- 50 ance with the provisions of section one thousand eighty-six of this 51 chapter. Provided, however, the provisions of subsection (c) of section 52 one thousand eighty-eight of this chapter notwithstanding, no interest 53 will be paid thereon. 54 (c) The taxpayer may be required to attach to its tax return its 55 certificate of tax credit issued by the commissioner of economic devel- 56 opment pursuant to section four hundred forty-three of the economicS. 2009--B 26 A. 3009--B 1 development law. In no event shall the taxpayer be allowed a credit 2 greater than the amount of the credit listed in the certificate of tax 3 credit, or in the case of a taxpayer who is a partner in a partnership 4 or a member of a limited liability company, its pro rata share of the 5 amount of credit listed in the certificate of tax credit issued to the 6 partnership or limited liability company. 7 § 3. Section 606 of the tax law is amended by adding a new subsection 8 (ddd) to read as follows: 9 (ddd) Employee training incentive program tax credit. (1) A taxpayer 10 that has been approved by the commissioner of economic development to 11 participate in the employee training incentive program and has been 12 issued a certificate of tax credit pursuant to section four hundred 13 forty-three of the economic development law shall be allowed to claim a 14 credit against the tax imposed by this article. The credit shall equal 15 fifty percent of a taxpayer's eligible training costs, up to a credit of 16 ten thousand dollars per employee completing eligible training pursuant 17 to paragraph (a) of subdivision three of section four hundred forty-one 18 of the economic development law. The credit shall equal fifty percent 19 of the stipend paid to an intern, up to a credit of three thousand 20 dollars per intern completing eligible training pursuant to paragraph 21 (b) of subdivision three of section four hundred forty-one of the 22 economic development law. In no event shall a taxpayer be allowed a 23 credit greater than the amount listed on the certificate of tax credit 24 issued by the commissioner of economic development. In the case of a 25 taxpayer who is a partner in a partnership, member of a limited liabil- 26 ity company or shareholder in an S corporation, the taxpayer shall be 27 allowed its pro rata share of the credit earned by the partnership, 28 limited liability company or S corporation. The credit will be allowed 29 in the taxable year in which the eligible training is completed. 30 (2) If the amount of the credit allowed under this subsection for any 31 taxable year exceeds the taxpayer's tax for the taxable year, the excess 32 shall be treated as an overpayment of tax to be credited or refunded in 33 accordance with the provisions of section six hundred eighty-six of this 34 article, provided, however, no interest will be paid thereon. 35 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 36 of the tax law is amended by adding a new clause (xlii) to read as 37 follows: 38 (xlii) Employee training incentive Amount of credit under 39 program credit under subdivision fifty of 40 subsection (ddd) section two hundred ten-B 41 § 5. This act shall take effect immediately and shall apply to taxable 42 years beginning on or after January 1, 2015 and eligible training costs 43 incurred on or after the effective date of this act. 44 PART P 45 Section 1. Paragraph (b) of subdivision 1 of section 186-c of the tax 46 law, as amended by section 65 of part A of chapter 59 of the laws of 47 2014, is amended to read as follows: 48 (b) (1) In addition to the surcharge imposed by paragraph (a) of this 49 subdivision, there is hereby imposed a surcharge on the gross receipts 50 from telecommunication services, except for the gross receipts from 51 mobile telecommunication services that are subject to tax under subpara- 52 graph two of this paragraph, relating to the metropolitan commuter 53 transportation district at the rate of seventeen percent of the state 54 tax rate under section one hundred eighty-six-e of this article. All theS. 2009--B 27 A. 3009--B 1 definitions and other provisions of section one hundred eighty-six-e of 2 this article shall apply to the tax imposed by this [paragraph] subpara- 3 graph with such modification and limitation as may be necessary (includ- 4 ing substituting the words "metropolitan commuter transportation 5 district" for "state" where appropriate) in order to adapt the language 6 of such section one hundred eighty-six-e of this article to the 7 surcharge imposed by this [paragraph] subparagraph within such metropol- 8 itan commuter transportation district so as to include [(1)] (i) any 9 intra-district telecommunication services[, except any telecommunication10services the gross receipts from which are subject to tax under subpara-11graph four of this paragraph], [(2)] (ii) any inter-district telecommu- 12 nication services which originate or terminate in such district and are 13 charged to a service address therein regardless of where the amounts 14 charged for such services are billed or ultimately paid[, except any15telecommunications services the gross receipts from which are subject to16tax under subparagraph four of this paragraph], [(3)] and (iii) as 17 apportioned to such district, private telecommunication services[,18except any telecommunication services the gross receipts from which are19subject to tax under subparagraph four of this paragraph, and (4) mobile20telecommunications service provided by a home service provider where the21place of primary use is within such metropolitan commuter transportation22district]. Provided however, such tax surcharge shall be calculated as 23 if the tax imposed under section one hundred eighty-six-e of this arti- 24 cle were imposed at a rate of three and one-half percent. 25 (2) In addition to the surcharge imposed by paragraph (a) of this 26 subdivision, there is hereby imposed a surcharge on the gross receipts 27 from mobile telecommunication services relating to the metropolitan 28 commuter transportation district at the rate of seven-tenths and two- 29 hundredths and one-thousandth percent on and after May first, two thou- 30 sand fifteen. All the definitions and other provisions of section one 31 hundred eighty-six-e of this article shall apply to the tax imposed by 32 this subparagraph with such modification and limitation as may be neces- 33 sary (including substituting the words "metropolitan commuter transpor- 34 tation district" for "state" where appropriate) in order to adapt the 35 language of such section one hundred eighty-six-e of this article to the 36 surcharge imposed by this subparagraph within such metropolitan commuter 37 transportation district so as to include any mobile telecommunications 38 service provided by a home service provider where the mobile telecommu- 39 nications customer's place of primary use is within such metropolitan 40 commuter transportation district. 41 § 2. Paragraph (a) of subdivision 2 of section 186-e of the tax law, 42 as amended by section 4 of part S of chapter 85 of the laws of 2002, is 43 amended to read as follows: 44 (a) (1) There is hereby imposed an excise tax on the sale of telecom- 45 munication services, except for the sale of mobile telecommunication 46 services that are subject to tax under subparagraph two of this para- 47 graph, by any person which is a provider of telecommunication services, 48 to be paid by such person, at the rate of three and one-half percent 49 prior to October first, nineteen hundred ninety-eight, three and one- 50 quarter percent from October first, nineteen hundred ninety-eight 51 through December thirty-first, nineteen hundred ninety-nine, and two and 52 one-half percent on and after January first, two thousand of gross 53 receipt from: [(1)] (i) any intrastate telecommunication services[,54except any telecommunication services the gross receipt from which is55subject to tax under subparagraph four of this paragraph]; [(2)] (ii) 56 any interstate and international telecommunication services (other thanS. 2009--B 28 A. 3009--B 1 interstate and international private telecommunication services [and any2telecommunication services the gross receipt from which is subject to3tax under subparagraph four of this paragraph]) which originate or 4 terminate in this state and which telecommunication services are charged 5 to a service address in this state, regardless of where the amounts 6 charged for such services are billed or ultimately paid; [(3)] and (iii) 7 interstate and international private telecommunication services, the 8 gross receipt to which the tax shall apply shall be determined as 9 prescribed in subdivision three of this section[, except any telecommu-10nication services the gross receipt from which is subject to tax under11subparagraph four of this paragraph; and (4) mobile telecommunications12service provided by a home service provider where the mobile telecommu-13nications customer's place of primary use is within this state]. 14 (2) There is hereby imposed an excise tax on the sale of mobile tele- 15 communication services, by any person which is a provider of telecommu- 16 nication services, to be paid by such person, at the rate of two and 17 nine-tenths percent on and after May first, two thousand fifteen of 18 gross receipts from any mobile telecommunications service provided by a 19 home service provider where the mobile telecommunications customer's 20 place of primary use is within this state. 21 § 3. Section 186-e of the tax law is amended by adding a new subdivi- 22 sion 9 to read as follows: 23 9. Distribution. Seven and six-tenths percent of the monies collected 24 from the excise tax imposed by this section shall be distributed pursu- 25 ant to subdivision three of section two hundred five of this chapter. 26 § 4. Severability. If any provision of this act shall for any reason 27 be finally adjudged by any court of competent jurisdiction to be inval- 28 id, such judgment shall not affect, impair, or invalidate the remainder 29 of this act, but shall be confined in its operation to the provision 30 directly involved in the controversy in which such judgment shall have 31 been rendered. It is hereby declared to be the intent of the legislature 32 that this act would have been enacted even if such invalid provision had 33 not been included in this act. Provided further, if a court of final, 34 competent jurisdiction adjudges the tax rates imposed on the sale of 35 mobile telecommunication services, by any person which is a provider of 36 telecommunication services, pursuant to subparagraph (2) of paragraph 37 (a) of subdivision 2 of section 186-e of the tax law, to be invalid as 38 imposed on the sale of such services, such tax rates shall be imposed on 39 the sale of all telecommunication services, including the sale of mobile 40 telecommunication services. 41 § 5. This act shall take effect immediately and shall apply to gross 42 receipts from mobile telecommunication services received on and after 43 May 1, 2015, and shall apply, for purposes of subdivision 9 of section 44 186-e of the tax law, as added by section three of this act, to monies 45 collected from the excise tax imposed by section 186-e of the tax law on 46 the sale of mobile telecommunication services on and after May 1, 2015. 47 PART Q 48 Intentionally Omitted 49 PART R 50 Intentionally OmittedS. 2009--B 29 A. 3009--B 1 PART S 2 Section 1. Paragraph (r) of section 104-A of the business corporation 3 law, as amended by chapter 172 of the laws of 2000, is amended to read 4 as follows: 5 (r) For filing a statement or amendment pursuant to section four 6 hundred eight of this chapter with the department of state, nine 7 dollars. This fee shall not apply to statements submitted through the 8 department of taxation and finance pursuant to paragraph eight of 9 section four hundred eight of this chapter. 10 § 2. Paragraphs (b) and (c) of section 306-A of the business corpo- 11 ration law, as added by chapter 469 of the laws of 1997, are amended to 12 read as follows: 13 (b) Upon the failure of the designating corporation to file a certif- 14 icate of amendment or change providing for the designation by the corpo- 15 ration of the new address after the filing of a certificate of resigna- 16 tion for receipt of process with the secretary of state, its authority 17 to do business in this state shall be suspended unless the corporation 18 has previously filed a statement [of addresses and directors] under 19 section four hundred eight of this chapter, in which case the address of 20 the principal executive office stated in the last filed statement [of21addresses and directors], shall constitute the new address for process 22 of the corporation provided such address is different from the previous 23 address for process, and the corporation shall not be deemed suspended. 24 (c) The filing by the department of state of a certificate of amend- 25 ment or change or statement under section four hundred eight of this 26 chapter providing for a new address by a designating corporation shall 27 annul the suspension and its authority to do business in this state 28 shall be restored and continue as if no suspension had occurred. 29 § 3. Section 408 of the business corporation law, as added by chapter 30 55 of the laws of 1992, the section heading as amended by chapter 375 of 31 the laws of 1998, subparagraph (a) of paragraph 1 and paragraph 2 as 32 amended by chapter 172 of the laws of 1999, subparagraph (b) of para- 33 graph 3 as amended by chapter 170 of the laws of 1994, paragraph 6 as 34 added by chapter 469 of the laws of 1997, and paragraph 7 as added by 35 chapter 172 of the laws of 2000, is amended to read as follows: 36 § 408. [Biennial statement] Statement; filing. 37 1. [Each] Except as provided in paragraph eight of this section, each 38 domestic corporation, and each foreign corporation authorized to do 39 business in this state, shall, during the applicable filing period as 40 determined by subdivision three of this section, file a statement 41 setting forth: 42 (a) The name and business address of its chief executive officer. 43 (b) The street address of its principal executive office. 44 (c) The post office address within or without this state to which the 45 secretary of state shall mail a copy of any process against it served 46 upon him or her. Such address shall supersede any previous address on 47 file with the department of state for this purpose. 48 2. [Such] Except as provided in paragraph eight of this section, such 49 statement shall be made on forms prescribed by the secretary of state, 50 and the information therein contained shall be given as of the date of 51 the execution of the statement. Such statement shall only request 52 reporting of information required under paragraph one of this section. 53 It shall be signed and delivered to the department of state. 54 3. [For] Except as provided in paragraph eight of this section, for 55 the purpose of this section the applicable filing period for a corpo-S. 2009--B 30 A. 3009--B 1 ration shall be the calendar month during which its original certificate 2 of incorporation or application for authority were filed or the effec- 3 tive date thereof if stated. The applicable filing period shall only 4 occur: (a) annually, during the period starting on April 1, 1992 and 5 ending on March 31, 1994; and (b) biennially, during a period starting 6 on April 1 and ending on March 31 thereafter. Those corporations that 7 filed between April 1, 1992 and June 30, 1994 shall not be required to 8 file such statements again until such time as they would have filed, had 9 this subdivision not been amended. 10 4. The provisions of [subdivision eleven of section ninety-six of the11executive law and] paragraph (g) of section one hundred four of this 12 chapter shall not be applicable to filings pursuant to this section. 13 5. The provisions of this section and section 409 of this article 14 shall not apply to a farm corporation. For the purposes of this subdivi- 15 sion, the term "farm corporation" shall mean any domestic corporation or 16 foreign corporation authorized to do business in this state under this 17 chapter engaged in the production of crops, livestock and livestock 18 products on land used in agricultural production, as defined in section 19 301 of the agriculture and markets law. However, this exception shall 20 not apply to farm corporations that have filed statements with the 21 department of state which have been submitted through the department of 22 taxation and finance pursuant to paragraph eight of this section. 23 6. No such statement shall be accepted for filing when a certificate 24 of resignation for receipt of process has been filed under section three 25 hundred six-A of this chapter unless the corporation has stated a 26 different address for process which does not include the name of the 27 party previously designated in the address for process in such certif- 28 icate. 29 7. A domestic corporation or foreign corporation may amend its state- 30 ment to change the information required by [subdivisions] subparagraphs 31 (a) and (b) of paragraph one of this section. Such amendment shall be 32 made on forms prescribed by the secretary of state. It shall be signed 33 and delivered to the department of state. 34 8. (a) The commissioner of taxation and finance and the secretary of 35 state may agree to allow corporations to provide the statement specified 36 in paragraph one of this section on tax reports filed with the depart- 37 ment of taxation and finance in lieu of biennial statements. This agree- 38 ment may apply to tax reports due for tax years starting on or after 39 January first, two thousand sixteen. 40 (b) If the agreement described in subparagraph (a) of this paragraph 41 is made, each corporation required to file the statement specified in 42 paragraph one of this section that is also subject to tax under article 43 nine or nine-A of the tax law shall include such statement annually on 44 its tax report filed with the department of taxation and finance in lieu 45 of filing a statement under this section with the department of state 46 and in a manner prescribed by the commissioner of taxation and finance. 47 However, each corporation required to file a statement under this 48 section must continue to file the biennial statement required by this 49 section with the department of state until the corporation in fact has 50 filed a tax report with the department of taxation and finance that 51 includes all required information. After that time, the corporation 52 shall continue to deliver annually the statement specified in paragraph 53 one of this section on its tax report in lieu of the biennial statement 54 required by this section. 55 (c) If the agreement described in subparagraph (a) of this paragraph 56 is made, the department of taxation and finance shall deliver to theS. 2009--B 31 A. 3009--B 1 department of state for filing the statement specified in paragraph one 2 of this section for each corporation that files a tax report containing 3 such statement. The department of taxation and finance must, to the 4 extent feasible, also include the current name of the corporation, 5 department of state identification number for such corporation, the 6 name, signature and capacity of the signer of the statement, name and 7 street address of the filer of the statement, and the email address, if 8 any, of the filer of the statement. 9 § 4. Section 409 of the business corporation law is amended by adding 10 a new paragraph 4 to read as follows: 11 4. This section shall not apply to corporations that have submitted a 12 statement pursuant to paragraph eight of section four hundred eight of 13 this chapter. 14 § 5. Subdivision (e) of section 301 of the limited liability company 15 law, as amended by chapter 643 of the laws of 1995, is amended to read 16 as follows: 17 (e) [Every] (1) Except as otherwise provided in this subdivision, 18 every limited liability company to which this chapter applies, shall 19 biennially in the calendar month during which its articles of organiza- 20 tion or application for authority were filed, or effective date thereof 21 if stated, file on forms prescribed by the secretary of state, a state- 22 ment setting forth the post office address within or without this state 23 to which the secretary of state shall mail a copy of any process 24 accepted against it served upon him or her. Such address shall supersede 25 any previous address on file with the department of state for this 26 purpose. 27 (2) The commissioner of taxation and finance and the secretary of 28 state may agree to allow limited liability companies to include the 29 statement specified in paragraph one of this subdivision on tax reports 30 filed with the department of taxation and finance in lieu of biennial 31 statements and in a manner prescribed by the commissioner of taxation 32 and finance. If this agreement is made, starting with taxable years 33 beginning on or after January first, two thousand sixteen, each limited 34 liability company required to file the statement specified in paragraph 35 one of this subdivision that is subject to the filing fee imposed by 36 paragraph three of subsection (c) of section six hundred fifty-eight of 37 the tax law shall provide such statement annually on its filing fee 38 payment form filed with the department of taxation and finance in lieu 39 of filing a statement under this section with the department of state. 40 However, each limited liability company required to file a statement 41 under this section must continue to file the biennial statement required 42 by this section with the department of state until the limited liability 43 company in fact has filed a filing fee payment form with the department 44 of taxation and finance that includes all required information. After 45 that time, the limited liability company shall continue to provide annu- 46 ally the statement specified in paragraph one of this subdivision on its 47 filing fee payment form in lieu of the biennial statement required by 48 this subdivision. 49 (3) If the agreement described in paragraph two of this subdivision is 50 made, the department of taxation and finance shall deliver to the 51 department of state the statement specified in paragraph one of this 52 subdivision contained on filing fee payment forms. The department of 53 taxation and finance must, to the extent feasible, also include the 54 current name of the limited liability company, department of state iden- 55 tification number for such limited liability company, the name, signa- 56 ture and capacity of the signer of the statement, name and streetS. 2009--B 32 A. 3009--B 1 address of the filer of the statement, and the email address, if any, of 2 the filer of the statement. 3 § 6. Subdivision (c) of section 301-A of the limited liability company 4 law, as added by chapter 448 of the laws of 1998, is amended to read as 5 follows: 6 (c) The filing by the department of state of a certificate of amend- 7 ment or certificate of change or the filing of a statement under section 8 three hundred one of this article providing for a new address by a 9 designating limited liability company shall annul the suspension and its 10 authority to do business in this state shall be restored and continued 11 as if no suspension had occurred. 12 § 7. Subdivision (c) of section 1101 of the limited liability company 13 law is amended to read as follows: 14 (c) For the statement of address of the post office address to which 15 the secretary of state shall mail a copy of any process against the 16 limited liability company served upon him or her pursuant to section 17 three hundred one of this chapter, nine dollars. This fee shall not 18 apply to statements submitted through the department of taxation and 19 finance pursuant to paragraph two of subdivision (e) of section three 20 hundred one of this chapter. 21 § 8. Subdivision (g) of section 121-1500 of the partnership law, as 22 amended by chapter 643 of the laws of 1995, is amended to read as 23 follows: 24 (g) Each registered limited liability partnership shall, within sixty 25 days prior to the fifth anniversary of the effective date of its regis- 26 tration and every five years thereafter, furnish a statement to the 27 department of state setting forth: (i) the name of the registered limit- 28 ed liability partnership, (ii) the address of the principal office of 29 the registered limited liability partnership, (iii) the post office 30 address within or without this state to which the secretary of state 31 shall mail a copy of any process accepted against it served upon him or 32 her, which address shall supersede any previous address on file with the 33 department of state for this purpose, and (iv) a statement that it is 34 eligible to register as a registered limited liability partnership 35 pursuant to subdivision (a) of this section. The statement shall be 36 executed by one or more partners of the registered limited liability 37 partnership. The statement shall be accompanied by a fee of twenty 38 dollars if submitted directly to the department of state. The commis- 39 sioner of taxation and finance and the secretary of state may agree to 40 allow registered limited liability partnerships to provide the statement 41 specified in this subdivision on tax reports filed with the department 42 of taxation and finance in lieu of statements filed directly with the 43 secretary of state and in a manner prescribed by the commissioner of 44 taxation and finance. If this agreement is made, starting with taxable 45 years beginning on or after January first, two thousand sixteen, each 46 registered limited liability partnership required to file the statement 47 specified in this subdivision that is subject to the filing fee imposed 48 by paragraph three of subsection (c) of section six hundred fifty-eight 49 of the tax law shall provide such statement annually on its filing fee 50 payment form filed with the department of taxation and finance in lieu 51 of filing a statement under this subdivision with the department of 52 state. However, each registered limited liability partnership required 53 to file a statement under this section must continue to file a statement 54 with the department of state as required by this section until the 55 registered limited liability partnership in fact has filed a filing fee 56 payment form with the department of taxation and finance that includesS. 2009--B 33 A. 3009--B 1 all required information. After that time, the registered limited 2 liability partnership shall continue to provide annually the statement 3 specified in this subdivision on its filing fee payment form in lieu of 4 the statement required by this subdivision. The commissioner of taxation 5 and finance shall deliver the completed statement specified in this 6 subdivision to the department of state for filing. The department of 7 taxation and finance must, to the extent feasible, also include in such 8 delivery the current name of the registered limited liability partner- 9 ship, department of state identification number for such registered 10 limited liability partnership, the name, signature and capacity of the 11 signer of the statement, name and street address of the filer of the 12 statement, and the email address, if any, of the filer of the statement. 13 If a registered limited liability partnership shall not timely file the 14 statement required by this subdivision, the department of state may, 15 upon sixty days' notice mailed to the address of such registered limited 16 liability partnership as shown in the last registration or statement or 17 certificate of amendment filed by such registered limited liability 18 partnership, make a proclamation declaring the registration of such 19 registered limited liability partnership to be revoked pursuant to this 20 subdivision. The department of state shall file the original proclama- 21 tion in its office and shall publish a copy thereof in the state regis- 22 ter no later than three months following the date of such proclamation. 23 This shall not apply to registered limited liability partnerships that 24 have filed a statement with the department of state through the depart- 25 ment of taxation and finance. Upon the publication of such proclamation 26 in the manner aforesaid, the registration of each registered limited 27 liability partnership named in such proclamation shall be deemed revoked 28 without further legal proceedings. Any registered limited liability 29 partnership whose registration was so revoked may file in the department 30 of state a [certificate of consent certifying that either a] statement 31 required by this subdivision [has been filed or accompanies the certif-32icate of consent and all fees imposed under this chapter on the regis-33tered limited liability partnership have been paid]. The filing of such 34 [certificate of consent] statement shall have the effect of annulling 35 all of the proceedings theretofore taken for the revocation of the 36 registration of such registered limited liability partnership under this 37 subdivision and (1) the registered limited liability partnership shall 38 thereupon have such powers, rights, duties and obligations as it had on 39 the date of the publication of the proclamation, with the same force and 40 effect as if such proclamation had not been made or published and (2) 41 such publication shall not affect the applicability of the provisions of 42 subdivision (b) of section twenty-six of this chapter to any debt, obli- 43 gation or liability incurred, created or assumed from the date of publi- 44 cation of the proclamation through the date of the filing of the 45 [certificate of consent. The filing of a certificate of consent shall be46accompanied by a fee of fifty dollars and if accompanied by a statement,47the fee required by this subdivision] statement with the department of 48 state. If, after the publication of such proclamation, it shall be 49 determined by the department of state that the name of any registered 50 limited liability partnership was erroneously included in such proclama- 51 tion, the department of state shall make appropriate entry on its 52 records, which entry shall have the effect of annulling all of the 53 proceedings theretofore taken for the revocation of the registration of 54 such registered limited liability partnership under this subdivision and 55 (A) such registered limited liability partnership shall have such 56 powers, rights, duties and obligations as it had on the date of theS. 2009--B 34 A. 3009--B 1 publication of the proclamation, with the same force and effect as if 2 such proclamation had not been made or published and (B) such publica- 3 tion shall not affect the applicability of the provisions of subdivision 4 (b) of section twenty-six of this chapter to any debt, obligation or 5 liability incurred, created or assumed from the date of publication of 6 the proclamation through the date of the making of the entry on the 7 records of the department of state. Whenever a registered limited 8 liability partnership whose registration was revoked shall have filed a 9 [certificate of consent] statement pursuant to this subdivision or if 10 the name of a registered limited liability partnership was erroneously 11 included in a proclamation and such proclamation was annulled, the 12 department of state shall publish a notice thereof in the state regis- 13 ter. 14 § 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part- 15 nership law, as amended by chapter 643 of the laws of 1995 and as desig- 16 nated by chapter 767 of the laws of 2005, is amended to read as follows: 17 (I) Each New York registered foreign limited liability partnership 18 shall, within sixty days prior to the fifth anniversary of the effective 19 date of its notice and every five years thereafter, furnish a statement 20 to the department of state setting forth: 21 (i) the name under which the New York registered foreign limited 22 liability partnership is carrying on or conducting or transacting busi- 23 ness or activities in this state, (ii) the address of the principal 24 office of the New York registered foreign limited liability partnership, 25 (iii) the post office address within or without this state to which the 26 secretary of state shall mail a copy of any process accepted against it 27 served upon him or her, which address shall supersede any previous 28 address on file with the department of state for this purpose, and (iv) 29 a statement that it is a foreign limited liability partnership. The 30 statement shall be executed by one or more partners of the New York 31 registered foreign limited liability partnership. The statement shall be 32 accompanied by a fee of fifty dollars if submitted directly to the 33 department of state. The commissioner of taxation and finance and the 34 secretary of state may agree to allow New York registered foreign limit- 35 ed liability partnerships to provide the statement specified in this 36 paragraph on tax reports filed with the department of taxation and 37 finance in lieu of statements filed directly with the secretary of state 38 and in a manner prescribed by the commissioner of taxation and finance. 39 If this agreement is made, starting with taxable years beginning on or 40 after January first, two thousand sixteen, each New York registered 41 foreign limited liability partnership required to file the statement 42 specified in this paragraph that is subject to the filing fee imposed by 43 paragraph three of subsection (c) of section six hundred fifty-eight of 44 the tax law shall provide such statement annually on its filing fee 45 payment form filed with the department of taxation and finance in lieu 46 of filing a statement under this paragraph directly with the department 47 of state. However, each New York registered foreign limited liability 48 partnership required to file a statement under this section must contin- 49 ue to file a statement with the department of state as required by this 50 section until the New York registered foreign limited liability partner- 51 ship in fact has filed a filing fee payment form with the department of 52 taxation and finance that includes all required information. After that 53 time, the New York registered foreign limited liability partnership 54 shall continue to provide annually the statement specified in this para- 55 graph on its filing fee payment form in lieu of filing the statement 56 required by this paragraph directly with the department of state. TheS. 2009--B 35 A. 3009--B 1 commissioner of taxation and finance shall deliver the completed state- 2 ment specified in this paragraph to the department of state for filing. 3 The department of taxation and finance must, to the extent feasible, 4 also include in such delivery the current name of the New York regis- 5 tered foreign limited liability partnership, department of state iden- 6 tification number for such New York registered foreign limited liability 7 partnership, the name, signature and capacity of the signer of the 8 statement, name and street address of the filer of the statement, and 9 the email address, if any, of the filer of the statement. If a New York 10 registered foreign limited liability partnership shall not timely file 11 the statement required by this subdivision, the department of state may, 12 upon sixty days' notice mailed to the address of such New York regis- 13 tered foreign limited liability partnership as shown in the last notice 14 or statement or certificate of amendment filed by such New York regis- 15 tered foreign limited liability partnership, make a proclamation declar- 16 ing the status of such New York registered foreign limited liability 17 partnership to be revoked pursuant to this subdivision. This shall not 18 apply to New York registered foreign limited liability partnerships that 19 have filed a statement with the department of state through the depart- 20 ment of taxation and finance. The department of state shall file the 21 original proclamation in its office and shall publish a copy thereof in 22 the state register no later than three months following the date of such 23 proclamation. Upon the publication of such proclamation in the manner 24 aforesaid, the status of each New York registered foreign limited 25 liability partnership named in such proclamation shall be deemed revoked 26 without further legal proceedings. Any New York registered foreign 27 limited liability partnership whose status was so revoked may file in 28 the department of state a [certificate of consent certifying that either29a] statement required by this subdivision [has been filed or accompanies30the certificate of consent and all fees imposed under this chapter on31the New York registered foreign limited liability partnership have been32paid]. The filing of such [certificate of consent] statement shall have 33 the effect of annulling all of the proceedings theretofore taken for the 34 revocation of the status of such New York registered foreign limited 35 liability partnership under this subdivision and (1) the New York regis- 36 tered foreign limited liability partnership shall thereupon have such 37 powers, rights, duties and obligations as it had on the date of the 38 publication of the proclamation, with the same force and effect as if 39 such proclamation had not been made or published and (2) such publica- 40 tion shall not affect the applicability of the laws of the jurisdiction 41 governing the agreement under which such New York registered foreign 42 limited liability partnership is operating (including laws governing the 43 liability of partners) to any debt, obligation or liability incurred, 44 created or assumed from the date of publication of the proclamation 45 through the date of the filing of the [certificate of consent. The46filing of a certificate of consent shall be accompanied by a fee of47fifty dollars and if accompanied by a statement, the fee required by48this subdivision] statement with the department of state. If, after the 49 publication of such proclamation, it shall be determined by the depart- 50 ment of state that the name of any New York registered foreign limited 51 liability partnership was erroneously included in such proclamation, the 52 department of state shall make appropriate entry on its records, which 53 entry shall have the effect of annulling all of the proceedings thereto- 54 fore taken for the revocation of the status of such New York registered 55 foreign limited liability partnership under this subdivision and (1) 56 such New York registered foreign limited liability partnership shallS. 2009--B 36 A. 3009--B 1 have such powers, rights, duties and obligations as it had on the date 2 of the publication of the proclamation, with the same force and effect 3 as if such proclamation had not been made or published and (2) such 4 publication shall not affect the applicability of the laws of the juris- 5 diction governing the agreement under which such New York registered 6 foreign limited liability partnership is operating (including laws 7 governing the liability of partners) to any debt, obligation or liabil- 8 ity incurred, created or assumed from the date of publication of the 9 proclamation through the date of the making of the entry on the records 10 of the department of state. Whenever a New York registered foreign 11 limited liability partnership whose status was revoked shall have filed 12 a [certificate of consent] statement pursuant to this subdivision or if 13 the name of a New York registered foreign limited liability partnership 14 was erroneously included in a proclamation and such proclamation was 15 annulled, the department of state shall publish a notice thereof in the 16 state register. 17 § 10. Subdivision (d) of section 121-1506 of the partnership law, as 18 amended by chapter 172 of the laws of 1999, is amended to read as 19 follows: 20 (d) The filing by the department of state of a certificate of amend- 21 ment or the filing of a statement providing for a new address by a 22 designating limited liability partnership shall annul the suspension and 23 its authority to do business in this state shall be restored and contin- 24 ued as if no suspension had occurred. 25 § 11. Section 192 of the tax law is amended by adding a new subdivi- 26 sion 5 to read as follows: 27 5. Notwithstanding the provisions of section two hundred two of this 28 article, the commissioner shall provide the statements and other 29 required information requested on tax reports under section four hundred 30 eight of the business corporation law to the secretary of state for 31 filing. Such provision may also include a copy or image of that portion 32 of the report solely pertinent to such information to the extent feasi- 33 ble. The commissioner may also provide information on noncompliance. 34 § 12. Section 211 of the tax law is amended by adding a new subdivi- 35 sion 15 to read as follows: 36 15. Notwithstanding the provisions of subdivision eight of this 37 section, the commissioner shall provide the statements and other 38 required information requested on tax reports under section four hundred 39 eight of the business corporation law to the secretary of state for 40 filing. Such provision may also include a copy or image of that portion 41 of the report solely pertinent to such information to the extent feasi- 42 ble. The commissioner any also provide information on noncompliance. 43 § 13. Paragraph 3 of subsection (c) of section 658 of the tax law is 44 amended by adding a new subparagraph (E) to read as follows: 45 (E) Notwithstanding the provisions of subsection (e) of section six 46 hundred ninety-seven of this article, the commissioner shall provide the 47 statements and other required information included on the filing fee 48 payment form under section three hundred one of the limited liability 49 company law, subdivision (g) of section 121-1500 of the partnership law, 50 and subdivision (f) of section 121-1502 of the partnership law, to the 51 secretary of state for filing. Such provision may also include a copy 52 or image of that portion of the report solely pertinent to such informa- 53 tion to the extent feasible. The commissioner may also provide informa- 54 tion on noncompliance. 55 § 14. Section 1085 of the tax law is amended by adding a new 56 subsection (v) to read as follows:S. 2009--B 37 A. 3009--B 1 (v) Failure to supply all the information required or to provide 2 correct information in secretary of state statements. Unless it is shown 3 that such failure to provide the statement and information required by 4 section four hundred eight of the business corporation law is due to 5 reasonable cause and not to willful neglect, there shall, upon notice 6 and demand by the commissioner and in the same manner as tax, be paid by 7 the taxpayer failing to supply complete and correct information, a 8 penalty of two hundred fifty dollars per corporation required to provide 9 such information. 10 § 15. Section 685 of the tax law is amended by adding a new subsection 11 (dd) to read as follows: 12 (dd) Failure to supply all the information required or to provide 13 correct information in secretary of state statements. Unless it is shown 14 that such failure to provide the statement and information required by 15 subdivision (e) of section three hundred one of the limited liability 16 company law, subdivision (g) of section 121-1500 of the partnership law, 17 and subdivision (f) of section 121-1502 of the partnership law is due to 18 reasonable cause and not to willful neglect, there shall, upon notice 19 and demand by the commissioner and in the same manner as tax, be paid by 20 the entity failing to supply complete and correct information, a penalty 21 of two hundred and fifty dollars per limited liability company, regis- 22 tered limited liability partnership or New York registered foreign 23 limited liability partnership required to provide such information on 24 its filing fee payment form. 25 § 16. This act shall take effect immediately. 26 PART T 27 Section 1. Paragraph (a) of subdivision 5 of section 208 of the tax 28 law, as amended by section 4 of part A of chapter 59 of the laws of 29 2014, is amended to read as follows: 30 (a) The term "investment capital" means investments in stocks that (i) 31 satisfy the definition of a capital asset under section 1221 of the 32 internal revenue code at all times the taxpayer owned such stock during 33 the taxable year, (ii) are held by the taxpayer for investment for more 34 than [six consecutive months but are not] one year, (iii) the disposi- 35 tions of which are, or would be, treated by the taxpayer as generating 36 long-term capital gains or losses under the internal revenue code, (iv) 37 for stocks acquired on or after January first, two thousand fifteen, at 38 any time after the close of the day in which they are acquired, have 39 never been held for sale to customers in the regular course of busi- 40 ness[, or, if the taxpayer makes the election provided for in subpara-41graph one of paragraph (a) of subdivision five of section two hundred42ten-A of this article, are not qualified financial instruments as43described in subdivision five of section two hundred ten-A of this arti-44cle], and (v) before the close of the day on which the stock was 45 acquired, are clearly identified in the taxpayer's records as stock held 46 for investment in the same manner as required under section 1236(a)(1) 47 of the internal revenue code for the stock of a dealer in securities to 48 be eligible for capital gain treatment (whether or not the taxpayer is a 49 dealer of securities subject to section 1236), provided, however, that 50 for stock acquired prior to October first, two thousand fifteen that was 51 not subject to section 1236(a) of the internal revenue code, such iden- 52 tification in the taxpayer's records must occur before October first, 53 two thousand fifteen. Stock in a corporation that is conducting a 54 unitary business with the taxpayer, stock in a corporation that isS. 2009--B 38 A. 3009--B 1 included in a combined report with the taxpayer pursuant to the commonly 2 owned group election in subdivision three of section two hundred ten-C 3 of this article, and stock issued by the taxpayer shall not constitute 4 investment capital. For purposes of this subdivision, if the taxpayer 5 owns or controls, directly or indirectly, less than twenty percent of 6 the voting power of the stock of a corporation, that corporation will be 7 presumed to be conducting a business that is not unitary with the busi- 8 ness of the taxpayer. 9 § 2. Paragraph (d) of subdivision 5 of section 208 of the tax law, as 10 added by section 4 of part A of chapter 59 of the laws of 2014, is 11 amended to read as follows: 12 (d) If a taxpayer acquires stock that is a capital asset under section 13 1221 of the internal revenue code during the [second half of its] taxa- 14 ble year and owns that stock on the last day of the taxable year, it 15 will be presumed, solely for purposes of determining whether that stock 16 should be classified as investment capital after it is acquired, that 17 the taxpayer held that stock for more than [six consecutive months18during the taxable] one year. However, if the taxpayer does not in fact 19 [hold] own that stock [for more than six consecutive months,] at the 20 time it actually files its original report for the taxable year in which 21 it acquired the stock, then the presumption in the preceding sentence 22 shall not apply and the actual period of time during which the taxpayer 23 owned the stock shall be used to determine whether the stock should be 24 classified as investment capital after it is acquired. If the taxpayer 25 relies on the presumption in the first sentence of this paragraph but 26 does not own the stock for more than one year, the taxpayer must 27 increase its total business capital in the immediately succeeding taxa- 28 ble year by the amount included in investment capital for that stock, 29 net of any liabilities attributable to that stock computed as provided 30 in paragraph (b) of this subdivision and must increase its business 31 income in the immediately succeeding taxable year by the amount of 32 income and net gains (but not less than zero) from that stock included 33 in investment income, less any interest deductions directly or indirect- 34 ly attributable to that stock, as provided in subdivision six of this 35 section. 36 § 3. Paragraph (e) of subdivision 5 of section 208 of the tax law, as 37 added by section 4 of part A of chapter 59 of the laws of 2014, is 38 amended to read as follows: 39 (e) When income or gain from a debt obligation or other security 40 cannot be apportioned to the state using the [business allocation41percentage] apportionment factor determined under section two hundred 42 ten-A of this article as a result of United States constitutional prin- 43 ciples, the debt obligation or other security will be included in 44 investment capital. 45 § 4. Paragraph (f) of subdivision 5 of section 208 of the tax law is 46 REPEALED. 47 § 5. Paragraphs (a) and (b) of subdivision 6 of section 208 of the tax 48 law, paragraph (a) as amended and paragraph (b) as added by section 4 of 49 part A of chapter 59 of the laws of 2014, are amended to read as 50 follows: 51 (a) (i) The term "investment income" means income, including capital 52 gains in excess of capital losses, from investment capital, to the 53 extent included in computing entire net income, less, [(i)] in the 54 discretion of the commissioner, any interest deductions allowable in 55 computing entire net income which are directly or indirectly attribut- 56 able to investment capital or investment income, [and (ii) the taxpay-S. 2009--B 39 A. 3009--B 1er's loss, deduction and/or expense attributable to any transaction, or2series of transactions, entered into to manage the risk of price changes3or currency fluctuations with respect to any item of investment capital4that is held or to be held by the taxpayer, or the aggregate investment5capital that is held or to be held by the taxpayer, if all of the risk,6or all but a de minimis amount of the risk, is with respect to invest-7ment capital,] provided, however, that in no case shall investment 8 income exceed entire net income. (ii) If the amount of interest 9 deductions subtracted under subparagraph (i) [or subparagraph (ii)] of 10 this paragraph [or under both of those subparagraphs] exceeds investment 11 income, the excess of such amount over investment income must be added 12 back to entire net income. (iii) If the taxpayer's investment income 13 determined without regard to the interest deductions subtracted under 14 subparagraph (i) of this paragraph comprises more than eight percent of 15 the taxpayer's entire net income, investment income determined without 16 regard to such interest deductions cannot exceed eight percent of the 17 taxpayer's entire net income. 18 (b) In lieu of subtracting from investment income the amount of those 19 interest deductions, the taxpayer may [elect] make a revocable election 20 to reduce its total investment income, determined after applying the 21 limitation in subparagraph (iii) of paragraph (a) of this subdivision, 22 by forty percent. If the taxpayer makes this election, the taxpayer must 23 also make the elections provided for in paragraphs (b) and (c) of subdi- 24 vision six-a of this section. If the taxpayer subsequently revokes this 25 election, the taxpayer must revoke the elections provided for in para- 26 graphs (b) and (c) of subdivision six-a of this section. A taxpayer 27 [which] that does not make this election because it has no investment 28 capital will not be precluded from making those other elections. 29 § 5-a. Paragraphs (b) and (c) of subdivision 6-a of section 208 of the 30 tax law, as added by section 4 of chapter 59 of the laws of 2014, are 31 amended to read as follows: 32 (b) "Exempt CFC income" means the income required to be included in 33 the taxpayer's federal gross income pursuant to subsection (a) of 34 section 951 of the internal revenue code, received from a corporation 35 that is conducting a unitary business with the taxpayer but is not 36 included in a combined report with the taxpayer, less, in the discretion 37 of the commissioner, any interest deductions directly or indirectly 38 attributable to that income. In lieu of subtracting from its exempt CFC 39 income the amount of those interest deductions, the taxpayer may [elect] 40 make a revocable election to reduce its total exempt CFC income by forty 41 percent. If the taxpayer makes this election, the taxpayer must also 42 make the elections provided for in paragraph (b) of subdivision six of 43 this section and paragraph (c) of this subdivision. If the taxpayer 44 subsequently revokes this election, the taxpayer must revoke the 45 elections provided for in paragraph (b) of subdivision six of this 46 section and paragraph (c) of this subdivision. A taxpayer which does not 47 make this election because it has no exempt CFC income will not be 48 precluded from making those other elections. 49 (c) "Exempt unitary corporation dividends" means those dividends from 50 a corporation that is conducting a unitary business with the taxpayer 51 but is not included in a combined report with the taxpayer, less, in the 52 discretion of the commissioner, any interest deductions directly or 53 indirectly attributable to such income. Other than dividend income 54 received from corporations that are taxable under a franchise tax 55 imposed by article nine or article thirty-three of this chapter or would 56 be taxable under a franchise tax imposed by article nine or articleS. 2009--B 40 A. 3009--B 1 thirty-three of this chapter if subject to tax, in lieu of subtracting 2 from this dividend income those interest deductions, the taxpayer may 3 [elect] make a revocable election to reduce the total amount of this 4 dividend income by forty percent. If the taxpayer makes this election, 5 the taxpayer must also make the elections provided for in paragraph (b) 6 of subdivision six of this section and paragraph (b) of this subdivi- 7 sion. If the taxpayer subsequently revokes this election, the taxpayer 8 must also revoke the elections provided for in paragraph (b) of subdivi- 9 sion six of this section and paragraph (b) of this subdivision. A 10 taxpayer which does not make this election because it has not received 11 any exempt unitary corporation dividends or is precluded from making 12 this election for dividends received from corporations taxable under a 13 franchise tax imposed by article nine or article thirty-three of this 14 chapter or would be taxable under a franchise tax imposed by article 15 nine or article thirty-three of this chapter if subject to tax will not 16 be precluded from making those other elections. 17 § 5-b. Clause (i) of subparagraph 5 of paragraph (a) of subdivision 9 18 of section 208 of the tax law, as amended by section 4 of part A of 19 chapter 59 of the laws of 2014, is amended to read as follows: 20 (i) any refund or credit of a tax imposed under this article, article 21 twenty-three, or former article thirty-two of this chapter, for which 22 tax no exclusion or deduction was allowed in determining the taxpayer's 23 entire net income under this article, article twenty-three, or former 24 article thirty-two of this chapter for any prior year, or (ii) [a refund25or credit of general corporation tax allowed by subdivision eleven of26section 11-604 of the administrative code of the city of New York, or27(iii)] any refund or credit of a tax imposed under sections one hundred 28 eighty-three, one hundred eighty-three-a, one hundred eighty-four or one 29 hundred eighty-four-a of this chapter[, and]; 30 § 6. Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r) 31 of subdivision 9 of section 208 of the tax law, as added by section 4 of 32 part A of chapter 59 of the laws of 2014, is amended to read as follows: 33 (ii) Measurement of assets. For purposes of this paragraph: (I) Total 34 assets are those assets that are properly reflected on a balance sheet, 35 computed in the same manner as is required by the banking regulator of 36 the taxpayers included in the combined return. 37 (II) Assets will only be included if the income or expenses of which 38 are properly reflected (or would have been properly reflected if not 39 fully depreciated or expensed, or depreciated or expensed to a nominal 40 amount) in the computation of the combined group's entire net income for 41 the taxable year. Assets will not include deferred tax assets and intan- 42 gible assets identified as "goodwill". 43 (III) Tangible real and personal property, such as buildings, land, 44 machinery, and equipment shall be valued at cost. Leased assets will be 45 valued at the annual lease payment multiplied by eight. Intangible prop- 46 erty, such as loans and investments, shall be valued at book value 47 exclusive of reserves. 48 (IV) Intercorporate stockholdings and bills, notes and accounts 49 receivable, and other intercorporate indebtedness between the corpo- 50 rations included in the combined report shall be eliminated. 51 (V) Average assets are computed using the assets measured on the first 52 day of the taxable year, and on the last day of each subsequent quarter 53 of the taxable year or month or day during the taxable year. 54 § 7. Clause (B) of subparagraph 2 and clause (B) of subparagraph 2-a 55 of paragraph (s) of subdivision 9 of section 208 of the tax law, asS. 2009--B 41 A. 3009--B 1 added by section 4 of part A of chapter 59 of the laws of 2014, are 2 amended to read as follows: 3 (B) The average value during the taxable year of the assets of the 4 taxpayer, or, if the taxpayer is included in a combined report, the 5 assets of the combined reporting group of the taxpayer under section two 6 hundred ten-C of this article, must not exceed eight billion dollars. 7 (B) The average value during the taxable year of the assets of the 8 taxpayer, or, if the taxpayer is included in a combined report, the 9 assets of the combined reporting group of the taxpayer under section two 10 hundred ten-C of this article, must not exceed eight billion dollars. 11 § 8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as 12 added by section 5 of part A of chapter 59 of the laws of 2014, is 13 amended to read as follows: 14 (d)(i) A corporation with less than one million dollars but at least 15 ten thousand dollars of receipts within this state in a taxable year 16 that is part of a [combined reporting] unitary group that meets the 17 ownership test under section two hundred ten-C of this article is deriv- 18 ing receipts from activity in this state if the receipts within this 19 state of the members of the [combined reporting] unitary group that have 20 at least ten thousand dollars of receipts within this state in the 21 aggregate meet the threshold set forth in paragraph (b) of this subdivi- 22 sion. 23 (ii) A corporation that does not meet any of the thresholds set forth 24 in paragraph (c) of this subdivision but has at least ten customers, or 25 locations, or customers and locations, as described in paragraph (c) of 26 this subdivision, and is part of a [combined reporting] unitary group 27 that meets the ownership test under section two hundred ten-C of this 28 article [that] is doing business in this state if the number of custom- 29 ers, locations, or customers and locations, within this state of the 30 members of the [combined reporting] unitary group that have at least ten 31 customers, locations, or customers and locations, within this state in 32 the aggregate meets any of the thresholds set forth in paragraph (c) of 33 this subdivision. 34 (iii) For purposes of this paragraph, any corporation described in 35 paragraph (c) of subdivision two of section two hundred ten-C of this 36 article shall not be considered. 37 § 8-a. Subdivision 2-a of section 209 of the tax law, as amended by 38 section 5 of part A of chapter 59 of the laws of 2014, is amended to 39 read as follows: 40 2-a. An alien corporation shall not be deemed to be doing business, 41 employing capital, owning or leasing property, [or] maintaining an 42 office in this state, or deriving receipts from activity in this state, 43 for the purposes of this article, if its activities in this state are 44 limited solely to (a) investing or trading in stocks and securities for 45 its own account within the meaning of clause (ii) of subparagraph (A) of 46 paragraph (2) of subsection (b) of section eight hundred sixty-four of 47 the internal revenue code or (b) investing or trading in commodities for 48 its own account within the meaning of clause (ii) of subparagraph (B) of 49 paragraph (2) of subsection (b) of section eight hundred sixty-four of 50 the internal revenue code or (c) any combination of activities described 51 in paragraphs (a) and (b) of this subdivision. An alien corporation that 52 under any provision of the internal revenue code is not treated as a 53 "domestic corporation" as defined in section seven thousand seven 54 hundred one of such code and has no effectively connected income for the 55 taxable year pursuant to clause (iv) of the opening paragraph of subdi- 56 vision nine of section two hundred eight of this article shall not beS. 2009--B 42 A. 3009--B 1 subject to tax under this article for that taxable year. For purposes of 2 this article, an alien corporation is a corporation organized under the 3 laws of a country, or any political subdivision thereof, other than the 4 United States, or organized under the laws of a possession, territory or 5 commonwealth of the United States. 6 § 9. Paragraph (d) of subdivision 1 of section 209-B of the tax law, 7 as added by section 7 of part A of chapter 59 of the laws of 2014, is 8 amended to read as follows: 9 (d)(i) A corporation with less than one million dollars but at least 10 ten thousand dollars of receipts within the metropolitan commuter trans- 11 portation district in a taxable year that is part of a [combined report-12ing] unitary group that meets the ownership test under section two 13 hundred ten-C of this article is deriving receipts from activity in the 14 metropolitan commuter transportation district if the receipts within the 15 metropolitan commuter transportation district of the members of the 16 [combined reporting] unitary group that have at least ten thousand 17 dollars of receipts within the metropolitan commuter transportation 18 district in the aggregate meet the threshold set forth in paragraph (b) 19 of this subdivision. 20 (ii) A corporation that does not meet any of the thresholds set forth 21 in paragraph (c) of this subdivision but has at least ten customers, or 22 locations, or customers and locations, as described in paragraph (c), 23 and is part of a [combined reporting] unitary group that meets the 24 ownership test under section two hundred ten-C of this article [that] is 25 doing business in the metropolitan commuter transportation district if 26 the number of customers, locations, or customers and locations, within 27 the metropolitan commuter transportation district of the members of the 28 [combined reporting] unitary group that have at least ten customers, 29 locations, or customers and locations, within the metropolitan commuter 30 transportation district in the aggregate meets any of the thresholds set 31 forth in paragraph (c) of this subdivision. 32 (iii) For purposes of this paragraph, any corporation described in 33 paragraph (c) of subdivision two of section two hundred ten-C of this 34 article shall not be considered. 35 § 10. The opening paragraph of paragraph (a) of subdivision 1 of 36 section 210 of the tax law, as amended by section 12 of part A of chap- 37 ter 59 of the laws of 2014, is amended to read as follows: 38 For taxable years beginning before January first, two thousand 39 sixteen, the amount prescribed by this paragraph shall be computed at 40 the rate of seven and one-tenth percent of the taxpayer's business 41 income base. For taxable years beginning on or after January first, two 42 thousand sixteen, the amount prescribed by this paragraph shall be six 43 and one-half percent of the taxpayer's business income base. The taxpay- 44 er's business income base shall mean the portion of the taxpayer's busi- 45 ness income [allocated] apportioned within the state as hereinafter 46 provided. However, in the case of a small business taxpayer, as defined 47 in paragraph (f) of this subdivision, the amount prescribed by this 48 paragraph shall be computed pursuant to subparagraph (iv) of this para- 49 graph and in the case of a manufacturer, as defined in subparagraph (vi) 50 of this paragraph, the amount prescribed by this paragraph shall be 51 computed pursuant to subparagraph (vi) of this paragraph, and, in the 52 case of a qualified emerging technology company, as defined in subpara- 53 graph (vii) of this paragraph, the amount prescribed by this paragraph 54 shall be computed pursuant to subparagraph (vii) of this paragraph.S. 2009--B 43 A. 3009--B 1 § 11. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 2 210 of the tax law, as amended by section 12 of part A of chapter 59 of 3 the laws of 2014, is amended to read as follows: 4 (vi) for taxable years beginning on or after January first, two thou- 5 sand fourteen, the amount prescribed by this paragraph for a taxpayer 6 which is a qualified New York manufacturer, shall be computed at the 7 rate of zero percent of the taxpayer's business income base. The term 8 "manufacturer" shall mean a taxpayer which during the taxable year is 9 principally engaged in the production of goods by manufacturing, proc- 10 essing, assembling, refining, mining, extracting, farming, agriculture, 11 horticulture, floriculture, viticulture or commercial fishing. However, 12 the generation and distribution of electricity, the distribution of 13 natural gas, and the production of steam associated with the generation 14 of electricity shall not be qualifying activities for a manufacturer 15 under this subparagraph. Moreover, in the case of a combined report, the 16 combined group shall be considered a "manufacturer" for purposes of this 17 subparagraph only if the combined group during the taxable year is prin- 18 cipally engaged in the activities set forth in this paragraph, or any 19 combination thereof. A taxpayer or, in the case of a combined report, a 20 combined group shall be "principally engaged" in activities described 21 above if, during the taxable year, more than fifty percent of the gross 22 receipts of the taxpayer or combined group, respectively, are derived 23 from receipts from the sale of goods produced by such activities. In 24 computing a combined group's gross receipts, intercorporate receipts 25 shall be eliminated. A "qualified New York manufacturer" is a manufac- 26 turer which has property in New York which is described in clause (A) of 27 subparagraph (i) of paragraph (b) of subdivision one of section two 28 hundred ten-B of this article and either (I) the adjusted basis of such 29 property for federal income tax purposes at the close of the taxable 30 year is at least one million dollars or (II) all of its real and 31 personal property is located in New York. A taxpayer or, in the case of 32 a combined report, a combined group, that does not satisfy the princi- 33 pally engaged test may be a qualified New York manufacturer if the 34 taxpayer or the combined group employs during the taxable year at least 35 two thousand five hundred employees in manufacturing in New York and the 36 taxpayer or the combined group has property in the state used in manu- 37 facturing, the adjusted basis of which for federal income tax purposes 38 at the close of the taxable year is at least one hundred million 39 dollars. 40 § 12. Subparagraph (vii) of paragraph (a) of subdivision 1 of section 41 210 of the tax law, as amended by section 12 of part A of chapter 59 of 42 the laws of 2014, is amended to read as follows: 43 (vii) For a taxpayer that is defined as a qualified emerging technolo- 44 gy company under paragraph (c) of subdivision one of section thirty-one 45 hundred two-e of the public authorities law regardless of the ten 46 million dollar limitation expressed in subparagraph one of such para- 47 graph (c) the amount prescribed by this paragraph shall be computed at 48 the rate [at which the tax is computed in effect for taxable years49beginning on or after January first, two thousand thirteen and before50January first, two thousand fourteen for such qualified emerging tech-51nology companies shall be reduced by nine and two-tenths percent for52taxable years commencing on or after January first, two thousand four-53teen and before January first, two thousand fifteen, twelve and three-54tenths percent for taxable years commencing on or after January first,55two thousand fifteen and before January first, two thousand sixteen,56fifteen and four-tenths percent for taxable years commencing on or afterS. 2009--B 44 A. 3009--B 1January first, two thousand sixteen and before January first, two thou-2sand eighteen, and twenty-five percent for taxable years beginning on or3after January first, two thousand eighteen] of 5.7 percent for taxable 4 years beginning on or after January first, two thousand fifteen and 5 before January first, two thousand sixteen, 5.5 percent for taxable 6 years beginning on or after January first two thousand sixteen and 7 before January first, two thousand eighteen, and 4.875 percent for taxa- 8 ble years beginning on or after January first, two thousand eighteen. 9 § 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of 10 paragraph (a) of subdivision 1 of section 210 of the tax law, as added 11 by section 12 of part A of chapter 59 of the laws of 2014, is amended to 12 read as follows: 13 (IV) In lieu of the subtraction described in item (III) of this 14 subclause, if the taxpayer so elects, the taxpayer's prior net operating 15 loss conversion subtraction for the tax years beginning on or after 16 January first, two thousand fifteen and before January first, two thou- 17 sand seventeen shall equal in each year, not more than one-half of its 18 net operating loss conversion subtraction pool until the pool is 19 exhausted. If the pool is not exhausted at the end of such time period, 20 the remainder of the pool shall be forfeited. The taxpayer shall make 21 such revocable election on its first return for the tax year beginning 22 on or after January first, two thousand fifteen and before January 23 first, two thousand sixteen by the due date for such return (determined 24 with regard to extensions). 25 § 14. Subclause 4 of clause (B) of subparagraph (viii) of paragraph 26 (a) of subdivision 1 of section 210 of the tax law, as added by section 27 12 of part A of chapter 59 of the laws of 2014, is amended to read as 28 follows: 29 (4) The prior net operating loss conversion subtraction may be used to 30 reduce the taxpayer's tax on [allocated] the apportioned business income 31 base to the higher of the tax on the capital base under paragraph (b) of 32 this subdivision or the fixed dollar minimum under paragraph (d) of this 33 subdivision. [Any] Unless the taxpayer has made the election provided 34 for in item (IV) of subclause two of this clause, any amount of unused 35 subtraction shall be carried forward to subsequent tax year or years 36 until [tax] the prior net operating loss conversion subtraction pool is 37 exhausted, but for no longer than twenty taxable years, or the taxable 38 year beginning on or after January first, two thousand thirty-five but 39 before January first, two thousand thirty-six, whichever comes first. 40 Such amount carried forward shall not be subject to the one-tenth limi- 41 tation for the subsequent tax year or years. However, if the taxpayer 42 elects to compute its prior net operating loss conversion subtraction 43 pursuant to item (IV) of subclause two of this clause, the taxpayer 44 shall not carry forward any unused amount of such subtraction [beyond45its] to any tax year beginning on or after [January first, two thousand46sixteen and before] January first, two thousand seventeen. 47 § 15. The opening paragraph of subparagraph (ix) of paragraph (a) of 48 subdivision 1 of section 210 of the tax law, as added by section 12 of 49 part A of chapter 59 of the laws of 2014, is amended to read as follows: 50 In computing the business income base, a net operating loss deduction 51 shall be allowed. A net operating loss deduction is the amount of net 52 operating loss or losses from one or more taxable years that are carried 53 forward or carried back to a particular [income] taxable year. A net 54 operating loss is the amount of a business loss incurred in a particular 55 tax year multiplied by the apportionment factor for that year as deter- 56 mined under section two hundred ten-A of this article. The maximum netS. 2009--B 45 A. 3009--B 1 operating loss deduction that is allowed in a taxable year is the amount 2 that reduces the taxpayer's tax on [allocated] the apportioned business 3 income base to the higher of the tax on the capital base or the fixed 4 dollar minimum. Such deduction and loss are determined in accordance 5 with the following: 6 § 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of subdi- 7 vision 1 or section 210 of the tax law, as added by section 12 of part A 8 of chapter 59 of the laws of 2014, are amended to read as follows: 9 (4) [A net operating loss may be carried forward to each of the twenty10taxable years following the taxable year of the loss. A net operating11loss may be carried back to each of the three taxable years preceding12the taxable year of the loss; provided, however no loss can be carried13back to a tax year prior to a tax year beginning on or after January,14first, two thousand fifteen. A taxpayer must apply both of these limita-15tions in computing such net operating loss deduction.] A net operating 16 loss may be carried back three taxable years preceding the taxable year 17 of the loss ("the loss year"). However no loss can be carried back to a 18 taxable year beginning before January first, two thousand fifteen. The 19 loss is first carried to the earliest of the three taxable years. If it 20 is not entirely used in that year, it is carried to the second taxable 21 year preceding the loss year, and any remaining amount is carried to the 22 taxable year immediately preceding the loss year. Any unused amount of 23 loss then remaining may be carried forward for as many as twenty taxable 24 years following the loss year. Losses carried forward are carried 25 forward first to the taxable year immediately following the loss year, 26 then to the second taxable year following the loss year, and then to the 27 next immediately subsequent taxable year or years until the loss is used 28 up or the twentieth taxable year following the loss year, whichever 29 comes first. 30 (6) Where there are two or more [allocated] apportioned net operating 31 losses, or portions thereof, carried back or carried forward to be 32 deducted in one particular tax year from [allocated] apportioned busi- 33 ness income, the earliest [allocated] apportioned loss incurred must be 34 applied first. 35 § 17. Subparagraph (ix) of paragraph (a) of subdivision 1 of section 36 210 of the tax law is amended by adding a new clause 7 to read as 37 follows: 38 (7) A taxpayer may elect to waive the entire carryback period with 39 respect to a net operating loss. Such election must be made on the 40 taxpayer's original timely filed return (determined with regard to 41 extensions) for the taxable year of the net operating loss for which the 42 election is to be in effect. Once an election is made for a taxable 43 year, it shall be irrevocable for that taxable year. A separate election 44 must be made for each loss year. This election applies to all members of 45 a combined group. 46 § 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as 47 amended by section 12 of part A of chapter 59 of the laws of 2014, is 48 amended to read as follows: 49 (b) Capital base. (1) (i) The amount prescribed by this paragraph 50 shall be computed at .15 percent for each dollar of the taxpayer's total 51 business capital, or the portion thereof [allocated] apportioned within 52 the state as hereinafter provided for taxable years beginning before 53 January first, two thousand sixteen. However, in the case of a cooper- 54 ative housing corporation as defined in the internal revenue code, the 55 applicable rate shall be .04 percent until taxable years beginning on or 56 after January first, two thousand twenty. The rate of tax for subsequentS. 2009--B 46 A. 3009--B 1 tax years shall be as follows: .125 percent for taxable years beginning 2 on or after January first, two thousand sixteen and before January 3 first, two thousand seventeen; .100 percent for taxable years beginning 4 on or after January first, two thousand seventeen and before January 5 first, two thousand eighteen; .075 percent for taxable years beginning 6 on or after January first, two thousand eighteen and before January 7 first, two thousand nineteen; .050 percent for taxable years beginning 8 on or after January first, two thousand nineteen and before January 9 first, two thousand twenty; .025 percent for taxable years beginning on 10 or after January first, two thousand twenty and before January first, 11 two thousand twenty-one; and zero percent for years beginning on or 12 after January first, two thousand twenty-one. The rate of tax for a 13 qualified New York manufacturer [for tax years subsequent to taxable14years beginning on or after January first, two thousand fifteen and15before January first, two thousand sixteen] shall be .132 percent for 16 taxable years beginning on or after January first, two thousand fifteen 17 and before January first, two thousand sixteen, .106 percent for taxable 18 years beginning on or after January first, two thousand sixteen and 19 before January first, two thousand seventeen, .085 percent for taxable 20 years beginning on or after January first, two thousand seventeen and 21 before January first, two thousand eighteen; .056 percent for taxable 22 years beginning on or after January first, two thousand eighteen and 23 before January first, two thousand nineteen; .038 percent for taxable 24 years beginning on or after January first, two thousand nineteen and 25 before January first, thousand twenty; .019 percent for taxable years 26 beginning on or after January first, two thousand twenty and before 27 January first, two thousand twenty-one; and zero percent for years 28 beginning on or after January first, two thousand twenty-one. (ii) In no 29 event shall the amount prescribed by this paragraph exceed three hundred 30 fifty thousand dollars for qualified New York manufacturers and for all 31 other taxpayers five million dollars. 32 (2) For purposes of subparagraph one of this paragraph, the term 33 "manufacturer" shall mean a taxpayer which during the taxable year is 34 principally engaged in the production of goods by manufacturing, proc- 35 essing, assembling, refining, mining, extracting, farming, agriculture, 36 horticulture, floriculture, viticulture or commercial fishing. Moreover, 37 for purposes of computing the capital base in a combined report, the 38 combined group shall be considered a "manufacturer" for purposes of this 39 subparagraph only if the combined group during the taxable year is prin- 40 cipally engaged in the activities set forth in this subparagraph, or any 41 combination thereof. A taxpayer or, in the case of a combined report, a 42 combined group shall be "principally engaged" in activities described 43 above if, during the taxable year, more than fifty percent of the gross 44 receipts of the taxpayer or combined group, respectively, are derived 45 from receipts from the sale of goods produced by such activities. In 46 computing a combined group's gross receipts, intercorporate receipts 47 shall be eliminated. A "qualified New York manufacturer" is a manufac- 48 turer that has property in New York that is described in clause (A) of 49 subparagraph (i) of paragraph (b) of subdivision one of section [210-B] 50 two hundred ten-B of this article and either (i) the adjusted basis of 51 that property for federal income tax purposes at the close of the taxa- 52 ble year is at least one million dollars or (ii) all of its real and 53 personal property is located in New York. In addition, a "qualified New 54 York manufacturer" means a taxpayer that is defined as a qualified 55 emerging technology company under paragraph (c) of subdivision one of 56 section thirty-one hundred two-e of the public authorities law regard-S. 2009--B 47 A. 3009--B 1 less of the ten million dollar limitation expressed in subparagraph one 2 of such paragraph. A taxpayer or, in the case of a combined report, a 3 combined group, that does not satisfy the principally engaged test may 4 be a qualified New York manufacturer if the taxpayer or the combined 5 group employs during the taxable year at least two thousand five hundred 6 employees in manufacturing in New York and the taxpayer or the combined 7 group has property in the state used in manufacturing, the adjusted 8 basis of which for federal income tax purposes at the close of the taxa- 9 ble year is at least one hundred million dollars. 10 § 19. Subparagraphs 1 and 2 of paragraph (d) of subdivision 1 of 11 section 210 of the tax law, as amended by section 12 of part A of chap- 12 ter 59 of the laws of 2014, are amended to read as follows: 13 (1) (A) The amount prescribed by this paragraph for New York S corpo- 14 rations, other than New York S corporations that are qualified New York 15 manufacturers or qualified emerging technology companies, will be deter- 16 mined in accordance with the following table: 17 If New York receipts are: The fixed dollar minimum tax is: 18 not more than $100,000 $ 25 19 more than $100,000 but not over $250,000 $ 50 20 more than $250,000 but not over $500,000 $ 175 21 more than $500,000 but not over $1,000,000 $ 300 22 more than $1,000,000 but not over $5,000,000 $1,000 23 more than $5,000,000 but not over $25,000,000 $3,000 24 Over $25,000,000 $4,500 25 (B) Provided further, the amount prescribed by this paragraph for New 26 York S corporations that are qualified New York manufacturers, as 27 defined in subparagraph (vi) of paragraph (a) of this subdivision, and 28 for New York S corporations that are qualified emerging technology 29 companies under paragraph (c) of subdivision one of section thirty-one 30 hundred two-e of the public authorities law regardless of the ten 31 million dollar limitation expressed in subparagraph one of such para- 32 graph (c), will be determined in accordance with the following tables. 33 For taxable years beginning on or after January 1, 2015 and before Janu- 34 ary 1, 2016: 35 If New York receipts are: The fixed dollar minimum tax is: 36 not more than $100,000 $ 22 37 more than $100,000 but not over $250,000 $ 44 38 more than $250,000 but not over $500,000 $ 153 39 more than $500,000 but not over $1,000,000 $ 263 40 more than $1,000,000 but not over $5,000,000 $ 877 41 more than $5,000,000 but not over $25,000,000 $2,631 42 Over $25,000,000 $3,947 43 For taxable years beginning on or after January 1, 2016 and before Janu- 44 ary 1, 2018: 45 If New York receipts are: The fixed dollar minimum tax is: 46 not more than $100,000 $ 21 47 more than $100,000 but not over $250,000 $ 42 48 more than $250,000 but not over $500,000 $ 148 49 more than $500,000 but not over $1,000,000 $ 254S. 2009--B 48 A. 3009--B 1 more than $1,000,000 but not over $5,000,000 $ 846 2 more than $5,000,000 but not over $25,000,000 $2,538 3 Over $25,000,000 $3,807 4 For taxable years beginning on or after January 1, 2018: 5 If New York receipts are: The fixed dollar minimum tax is: 6 not more than $100,000 $ 19 7 more than $100,000 but not over $250,000 $ 38 8 more than $250,000 but not over $500,000 $ 131 9 more than $500,000 but not over $1,000,000 $ 225 10 more than $1,000,000 but not over $5,000,000 $ 750 11 more than $5,000,000 but not over $25,000,000 $2,250 12 Over $25,000,000 $3,375 13 (C) Provided further, the amount prescribed by this paragraph for a 14 qualified New York manufacturer, as defined in subparagraph (vi) of 15 paragraph (a) of this subdivision, and a qualified emerging technology 16 company under paragraph (c) of subdivision one of section thirty-one 17 hundred two-e of the public authorities law regardless of the ten 18 million dollar limitation expressed in subparagraph one of such para- 19 graph (c), that is not a New York S corporation, will be determined in 20 accordance with the following tables[:]. However, with respect to quali- 21 fied New York manufacturers, the amounts in these tables will apply in 22 the case of a combined report only if the combined group satisfies the 23 requirements to be a qualified New York manufacturer as set forth in 24 such subparagraph (vi). 25 [For tax years beginning on or after January 1, 2014 and before January261, 2015:27If New York receipts are: The fixed dollar minimum tax is:28not more than $100,000 $ 2329more than $100,000 but not over $250,000 $ 6830more than $250,000 but not over $500,000 $ 15931more than $500,000 but not over $1,000,000 $ 45432more than $1,000,000 but not over $5,000,000 $1,36233more than $5,000,000 but not over $25,000,000 $3,17834Over $25,000,000 $4,500] 35 For tax years beginning on or after January 1, 2015 and before January 36 1, 2016: 37 If New York receipts are: The fixed dollar minimum tax is: 38 not more than $100,000 $ 22 39 more than $100,000 but not over $250,000 $ 66 40 more than $250,000 but not over $500,000 $ 153 41 more than $500,000 but not over $1,000,000 $ 439 42 more than $1,000,000 but not over $5,000,000 $1,316 43 more than $5,000,000 but not over $25,000,000 $3,070 44 Over $25,000,000 $4,385 45 For tax years beginning on or after January 1, 2016 and before January 46 1, 2018: 47 If New York receipts are: The fixed dollar minimum tax is:S. 2009--B 49 A. 3009--B 1 not more than $100,000 $ 21 2 more than $100,000 but not over $250,000 $ 63 3 more than $250,000 but not over $500,000 $ 148 4 more than $500,000 but not over $1,000,000 $ 423 5 more than $1,000,000 but not over $5,000,000 $1,269 6 more than $5,000,000 but not over $25,000,000 $2,961 7 Over $25,000,000 $4,230 8 For tax years beginning on or after January 1, 2018: 9 If New York receipts are: The fixed dollar minimum tax is: 10 not more than $100,000 $ 19 11 more than $100,000 but not over $250,000 $ 56 12 more than $250,000 but not over $500,000 $ 131 13 more than $500,000 but not over $1,000,000 $ 375 14 more than $1,000,000 but not over $5,000,000 $1,125 15 more than $5,000,000 but not over $25,000,000 $2,625 16 Over $25,000,000 $3,750 17 (D) Otherwise, for all other taxpayers not covered by clauses (A), (B) 18 and (C) of this subparagraph, the amount prescribed by this paragraph 19 will be determined in accordance with the following table: 20 If New York receipts are: The fixed dollar minimum tax is: 21 not more than $100,000 $ 25 22 more than $100,000 but not over $250,000 $ 75 23 more than $250,000 but not over $500,000 $ 175 24 more than $500,000 but not over $1,000,000 $ 500 25 more than $1,000,000 but not over $5,000,000 $1,500 26 more than $5,000,000 but not over $25,000,000 $3,500 27 more than $25,000,000 but not over $50,000,000 $5,000 28 more than $50,000,000 but not over $100,000,000 $10,000 29 more than $100,000,000 but not over $250,000,000 $20,000 30 more than $250,000,000 but not over $500,000,000 $50,000 31 more than $500,000,000 but not over $1,000,000,000 $100,000 32 Over $1,000,000,000 $200,000 33 (E) For purposes of this paragraph, New York receipts are the receipts 34 included in the numerator of the apportionment factor determined under 35 section two hundred ten-A for the taxable year. 36 (2) If the taxable year is less than twelve months, the amount of New 37 York receipts is determined by dividing the amount of the receipts for 38 the taxable year by the number of months in the taxable year and multi- 39 plying the result by twelve, and the amount prescribed by this paragraph 40 shall be reduced by twenty-five percent of the period for which the 41 taxpayer is subject to tax is more than six months but not more than 42 nine months and by fifty percent if the period for which the taxpayer is 43 subject to tax is not more than six months. In the case of a termination 44 year of a New York S corporation, the sum of the tax computed under this 45 paragraph for the S short year and for the C short year shall not be 46 less than the amount computed under this paragraph as if the corporation 47 were a New York C corporation for the entire taxable year. 48 § 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as 49 amended by section 12 of part A of chapter 59 of the laws of 2014, is 50 amended to read as follows:S. 2009--B 50 A. 3009--B 1 (f) For purposes of this section, the term "small business taxpayer" 2 shall mean a taxpayer (i) which has an entire net income of not more 3 than three hundred ninety thousand dollars for the taxable year; (ii) 4 the aggregate amount of money and other property received by the corpo- 5 ration for stock, as a contribution to capital, and as paid-in surplus, 6 does not exceed one million dollars; (iii) which is not part of an 7 affiliated group, as defined in section 1504 of the internal revenue 8 code, unless such group, if it had filed a report under this article on 9 a combined basis, would have itself qualified as a "small business 10 taxpayer" pursuant to this subdivision; and (iv) which has an average 11 number of individuals, excluding general executive officers, employed 12 full-time in the state during the taxable year of one hundred or fewer. 13 If the taxable period to which subparagraph (i) of this paragraph 14 applies is less than twelve months, entire net income under such subpar- 15 agraph shall be placed on an annual basis by multiplying the entire net 16 income by twelve and dividing the result by the number of months in the 17 period. For purposes of subparagraph (ii) of this paragraph, the amount 18 taken into account with respect to any property other than money shall 19 be the amount equal to the adjusted basis to the corporation of such 20 property for determining gain, reduced by any liability to which the 21 property was subject or which was assumed by the corporation. The deter- 22 mination under the preceding sentence shall be made as of the time the 23 property was received by the corporation. For purposes of subparagraph 24 [(iii)] (iv) of this [section] paragraph, "average number of individ- 25 uals, excluding general executive officers, employed full-time" shall be 26 computed by ascertaining the number of such individuals employed by the 27 taxpayer on the thirty-first day of March, the thirtieth day of June, 28 the thirtieth day of September and the thirty-first day of December 29 during each taxable year or other applicable period, by adding together 30 the number of such individuals ascertained on each of such dates and 31 dividing the sum so obtained by the number of such dates occurring with- 32 in such taxable year or other applicable period. An individual employed 33 full-time means an employee in a job consisting of at least thirty-five 34 hours per week, or two or more employees who are in jobs that together 35 constitute the equivalent of a job at least thirty-five hours per week 36 (full-time equivalent). Full-time equivalent employees in the state 37 [includes] include all employees regularly connected with or working out 38 of an office or place of business of the taxpayer within the state. 39 § 21. Subdivision 1 of section 210-A of the tax law, as added by 40 section 16 of part A of chapter 59 of the laws of 2014, is amended to 41 read as follows: 42 1. General. Business income and capital shall be apportioned to the 43 state by the apportionment factor determined pursuant to this section. 44 The apportionment factor is a fraction, determined by including only 45 those receipts, net income, net gains, and other items described in this 46 section that are included in the computation of the taxpayer's business 47 income (determined without regard to the modification provided in 48 subparagraph nineteen of paragraph (a) of subdivision nine of section 49 two hundred eight of this article) for the taxable year. The numerator 50 of the apportionment fraction shall be equal to the sum of all the 51 amounts required to be included in the numerator pursuant to the 52 provisions of this section and the denominator of the apportionment 53 fraction shall be equal to the sum of all the amounts required to be 54 included in the denominator pursuant to the provisions of this section.S. 2009--B 51 A. 3009--B 1 § 22. Paragraph (c) of subdivision 2 of section 210-A of the tax law, 2 as added by section 16 of part A of chapter 59 of the laws of 2014, is 3 amended to read as follows: 4 (c) Receipts from sales of tangible personal property and electricity 5 that are traded as commodities, as [described] the term "commodity" is 6 defined in section 475 of the internal revenue code, are included in the 7 apportionment fraction in accordance with clause (I) of subparagraph two 8 of paragraph (a) of subdivision five of this section. 9 § 23. The opening paragraph and paragraph 1 of paragraph (a) of subdi- 10 vision 5 of section 210-A of the tax law, as added by section 16 of part 11 A of chapter 59 of the laws of 2014, are amended to read as follows: 12 [A financial instrument is a "qualified financial instrument" if it is13marked to market under section 475 or section 1256 of the internal14revenue code, provided that loans secured by real property shall not be15qualified financial instruments.] A financial instrument is a "nonquali- 16 fied financial instrument" if it is not a qualified financial instru- 17 ment. A qualified financial instrument means a financial instrument 18 that is of a type described in any of clauses (A), (B), (C), (D), (G), 19 (H) or (I) of subparagraph two of this paragraph and that has been 20 marked to market in the taxable year by the taxpayer under section 475 21 or section 1256 of the internal revenue code. Further, if the taxpayer 22 has in the taxable year marked to market a financial instrument of the 23 type described in any of the clauses (A), (B), (C), (D), (G), (H) or (I) 24 of subparagraph two of this paragraph, then any financial instrument 25 within that type described in the above specified clause or clauses that 26 has not been marked to market by the taxpayer under section 475 or 27 section 1256 of the internal revenue code is a qualified financial 28 instrument in the taxable year. Notwithstanding the two preceding 29 sentences, (i) a loan secured by real property shall not be a qualified 30 financial instrument, (ii) if the only loans that are marked to market 31 by the taxpayer under section 475 or section 1256 of the internal reven- 32 ue code are loans secured by real property, then no loans shall be qual- 33 ified financial instruments, and (iii) stock that is investment capital 34 as defined in paragraph (a) of subdivision five of section two hundred 35 eight of this article shall not be a qualified financial instrument. If 36 a corporation is included in a combined report, the definition of quali- 37 fied financial instrument shall be determined on a combined basis. 38 (1) Fixed percentage method for qualified financial instruments. In 39 determining the inclusion of receipts and net gains from qualified 40 financial instruments in the apportionment fraction, taxpayers may elect 41 to use the fixed percentage method described in this subparagraph for 42 qualified financial instruments. The election is irrevocable, applies to 43 all qualified financial instruments, and must be made on an annual basis 44 on the taxpayer's original, timely filed return, determined with regard 45 to extensions of time for filing. If the taxpayer elects the fixed 46 percentage method, then all income, gain or loss, including marked to 47 market net gains as defined in clause (J) of subparagraph two of this 48 paragraph, from qualified financial instruments constitutes business 49 income, gain or loss. If the taxpayer does not elect to use the fixed 50 percentage method, then receipts and net gains are included in the 51 apportionment fraction in accordance with the customer sourcing method 52 described in subparagraph two of this paragraph. Under the fixed 53 percentage method, eight percent of all net income (not less than zero) 54 from qualified financial instruments is included in the numerator of the 55 apportionment fraction. All net income (not less than zero) from quali-S. 2009--B 52 A. 3009--B 1 fied financial instruments is included in the denominator of the appor- 2 tionment fraction. 3 § 24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph (a) 4 of subdivision 5 of section 210-A of the tax law, as added by section 16 5 of part A of chapter 59 of the laws of 2014, is amended to read as 6 follows: 7 (iv) Net gains (not less than zero) from sales of loans not secured by 8 real property are included in the numerator of the apportionment frac- 9 tion as provided in this subclause. The amount of net gains from the 10 sale of loans not secured by real property included in the numerator of 11 the apportionment fraction is determined by multiplying the net gains by 12 a fraction, the numerator of which is the amount of gross proceeds from 13 sales of loans not secured by real property to purchasers located within 14 the state and the denominator of which is the amount of gross [receipts] 15 proceeds from sales of loans not secured by real property to purchasers 16 located within and without the state. Gross proceeds shall be determined 17 after the deduction of any cost incurred to acquire the loans but shall 18 not be less than zero. Net gains (not less than zero) from sales of 19 loans not secured by real property are included in the denominator of 20 the apportionment fraction. 21 § 25. Clause (A) of subparagraph 2 of paragraph (a) of subdivision 5 22 of section 210-A of the tax law is amended by adding a new subclause (v) 23 to read as follows: 24 (v) For purposes of this subdivision, a loan is secured by real prop- 25 erty if fifty percent or more of the value of the collateral used to 26 secure the loan, when valued at fair market value as of the time the 27 loan was entered into, consists of real property. 28 § 25-a. Clause (I) of subparagraph 2 of paragraph (a) of subdivision 5 29 of section 210-A of the tax law, as added by section 16 of part A of 30 chapter 59 of the laws of 2014, is amended to read as follows: 31 (I) Physical commodities. Net income (not less than zero) from sales 32 of physical commodities are included in the numerator of the apportion- 33 ment fraction as provided in this [subparagraph] clause. The amount of 34 net income from sales of physical commodities included in the numerator 35 of the apportionment fraction is determined by multiplying the net 36 income from sales of physical commodities by a fraction, the numerator 37 of which is the amount of receipts from sales of physical commodities 38 actually delivered to points within the state or, if there is no actual 39 delivery of the physical commodity, sold to purchasers located in the 40 state, and the denominator of which is the amount of receipts from sales 41 of physical commodities actually delivered to points within and without 42 the state or, if there is no actual delivery of the physical commodity, 43 sold to purchasers located within and without the state. Net income (not 44 less [that] than zero) from sales of physical commodities is included in 45 the denominator of the apportionment fraction. Net income (not less than 46 zero) from sales of physical commodities is determined after the 47 deduction of the cost to acquire or produce the physical commodities. 48 § 26. Subparagraph 2 of paragraph (a) of subdivision 5 of section 49 210-A of the tax law is amended by adding a new clause (J) to read as 50 follows: 51 (J) Marked to market net gains. (i) For purposes of this subdivision, 52 "marked to market" means that a financial instrument is, under section 53 475 or section 1256 of the internal revenue code, treated by the taxpay- 54 er as sold for its fair market value on the last business day of the 55 taxpayer's taxable year. "Marked to market gain or loss" means the gain 56 or loss recognized by the taxpayer under section 475 or section 1256 ofS. 2009--B 53 A. 3009--B 1 the internal revenue code because the financial instrument is treated as 2 sold for its fair market value on the last business day of the taxpay- 3 er's taxable year. 4 (ii) The amount of marked to market net gains (not less than zero) 5 from each type of financial instrument that is marked to market included 6 in the numerator of the apportionment fraction is determined by multi- 7 plying the marked to market net gains (but not less than zero) from such 8 type of the financial instrument by a fraction, the numerator of which 9 is the numerator of the apportionment fraction for the net gains from 10 that type of financial instrument determined under the applicable clause 11 of this subparagraph and the denominator of which is the denominator of 12 the apportionment fraction for the net gains for that type of financial 13 instrument determined under the applicable clause of this subparagraph. 14 Marked to market net gains (not less than zero) from financial instru- 15 ments for which the numerator of the apportionment fraction is deter- 16 mined under the immediately preceding sentence are included in the 17 denominator of the apportionment fraction. 18 (iii) If the type of financial instrument that is marked to market is 19 not otherwise sourced by the taxpayer under this subparagraph, or if the 20 taxpayer has a net loss from the sales of that type of financial instru- 21 ment under the applicable clause of this subparagraph, the amount of 22 marked to market net gains (not less than zero) from that type of finan- 23 cial instrument included in the numerator of the apportionment fraction 24 is determined by multiplying the marked to market net gains (but not 25 less than zero) from that type of financial instrument by a fraction, 26 the numerator of which is the sum of the amount of receipts included in 27 the numerator of the apportionment fraction under clauses (A), (B), (C), 28 (D), (E), (F), (G), (H) and (I) of this subparagraph and subclause (ii) 29 of this clause, and the denominator of which is the sum of the amount of 30 receipts included in the denominator of the apportionment fraction under 31 clauses (A), (B), (C), (D), (E), (F), (G), (H) and (I) and subclause 32 (ii) of this clause. Marked to market net gains (not less than zero) for 33 which the amount to be included in the numerator of the apportionment 34 fraction is determined under the immediately preceding sentence are 35 included in the denominator of the apportionment fraction. 36 § 27. Paragraph (e) of subdivision 5 of section 210-A of the tax law, 37 as added by section 16 of part A of chapter 59 of the laws of 2014, is 38 amended to read as follows: 39 (e) For purposes of this subdivision, a taxpayer shall use the follow- 40 ing hierarchy to determine the commercial domicile of a business entity, 41 based on the information known to the taxpayer or information that would 42 be known upon reasonable inquiry: (i) [the location of the treasury43function of the business entity; (ii)] the seat of management and 44 control of the business entity; and [(iii)] (ii) the billing address of 45 the business entity in the taxpayer's records. The taxpayer must exer- 46 cise due diligence before rejecting [a] the first method in this hierar- 47 chy and proceeding to the next method. 48 § 28. Section 210-A of the tax law is amended by adding a new subdivi- 49 sion 6-a to read as follows: 50 6-a. Receipts from the operation of vessels. Receipts from the opera- 51 tion of vessels are included in the numerator of the apportionment frac- 52 tion as follows. The amount of receipts from the operation of vessels 53 included in the numerator of the apportionment fraction is determined by 54 multiplying the amount of such receipts by a fraction, the numerator of 55 which is the aggregate number of working days of the vessels owned or 56 leased by the taxpayer in territorial waters of the state during theS. 2009--B 54 A. 3009--B 1 period covered by the taxpayer's report and the denominator of which is 2 the aggregate number of working days of all vessels owned or leased by 3 the taxpayer during such period. Receipts from the operation of vessels 4 are included in the denominator of the apportionment fraction. 5 § 29. The opening paragraph of clause (A) of subparagraph 1 of para- 6 graph (b) of subdivision 7 of section 210-A of the tax law, as added by 7 section 16 of part A of chapter 59 of the laws of 2014, is amended to 8 read as follows: 9 The portion of receipts of a taxpayer from aviation services (other 10 than services described in paragraph (a) of this subdivision, but 11 including the receipts of a qualified air freight forwarder) to be 12 included in the numerator of the apportionment fraction shall be deter- 13 mined by multiplying its receipts from such aviation services by a 14 percentage which is equal to the arithmetic average of the following 15 three percentages: 16 § 30. Paragraph (b) of subdivision 7 of section 210-A of the tax law 17 is amended by adding a new subparagraph 3 to read as follows: 18 (3) A corporation is a qualified air freight forwarder with respect to 19 another corporation: 20 (A) if it owns or controls either directly or indirectly all of the 21 capital stock of such other corporation, or if all of its capital stock 22 is owned or controlled either directly or indirectly by such other 23 corporation, or if all of the capital stock of both corporations is 24 owned or controlled either directly or indirectly by the same interests, 25 (B) if it is principally engaged in the business of air freight 26 forwarding, and 27 (C) if its air freight forwarding business is carried on principally 28 with the airline or airlines operated by such other corporation. 29 § 30-a. Paragraph (b) of subdivision 8 of section 210-A of the tax 30 law, as added by section 16 of part A of chapter 59 of the laws of 2014, 31 is amended to read as follows: 32 (b) The amount of receipts from sales of advertising on television or 33 radio included in the numerator of the apportionment fraction is deter- 34 mined by multiplying the total of such receipts by a fraction, the 35 numerator of which is the number of viewers or listeners within the 36 state and the denominator of which is the number of viewers or listeners 37 within and without the state. The total of such receipts from sales of 38 advertising on television and radio is included in the denominator of 39 the apportionment fraction. 40 § 31. Subparagraph (i) of paragraph (b) and paragraph (d) of subdivi- 41 sion 1 of section 210-B of the tax law, as added by section 17 of part A 42 of chapter 59 of the laws of 2014, are amended to read as follows: 43 (i) A credit shall be allowed under this subdivision with respect to 44 tangible personal property and other tangible property, including build- 45 ings and structural components of buildings, which are: depreciable 46 pursuant to section one hundred sixty-seven of the internal revenue 47 code, have a useful life of four years or more, are acquired by purchase 48 as defined in section one hundred seventy-nine (d) of the internal 49 revenue code, have a situs in this state and are (A) principally used by 50 the taxpayer in the production of goods by manufacturing, processing, 51 assembling, refining, mining, extracting, farming, agriculture, horti- 52 culture, floriculture, viticulture or commercial fishing, (B) industrial 53 waste treatment facilities or air pollution control facilities, used in 54 the taxpayer's trade or business, (C) research and development property, 55 or (D) principally used in the ordinary course of the taxpayer's trade 56 or business as a broker or dealer in connection with the purchase orS. 2009--B 55 A. 3009--B 1 sale (which shall include but not be limited to the issuance, entering 2 into, assumption, offset, assignment, termination, or transfer) of 3 stocks, bonds or other securities as defined in section four hundred 4 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 5 defined in section four hundred seventy-five (e) of the Internal Revenue 6 Code, (E) principally used in the ordinary course of the taxpayer's 7 trade or business of providing investment advisory services for a regu- 8 lated investment company as defined in section eight hundred fifty-one 9 of the Internal Revenue Code, or lending, loan arrangement or loan orig- 10 ination services to customers in connection with the purchase or sale 11 (which shall include but not be limited to the issuance, entering into, 12 assumption, offset, assignment, termination, or transfer) of securities 13 as defined in section four hundred seventy-five (c)(2) of the Internal 14 Revenue Code, (F) [originally] principally used in the ordinary course 15 of the taxpayer's business as an exchange registered as a national secu- 16 rities exchange within the meaning of sections 3(a)(1) and 6(a) of the 17 Securities Exchange Act of 1934 or a board of trade as defined in 18 [section 1410(a)(1) of the New York Not-for-Profit Corporation Law] 19 subparagraph one of paragraph (a) of section fourteen hundred ten of the 20 not-for-profit corporation law or as an entity that is wholly owned by 21 one or more such national securities exchanges or boards of trade and 22 that provides automation or technical services thereto, or (G) princi- 23 pally used as a qualified film production facility including qualified 24 film production facilities having a situs in an empire zone designated 25 as such pursuant to article eighteen-B of the general municipal law, 26 where the taxpayer is providing three or more services to any qualified 27 film production company using the facility, including such services as a 28 studio lighting grid, lighting and grip equipment, multi-line phone 29 service, broadband information technology access, industrial scale elec- 30 trical capacity, food services, security services, and heating, venti- 31 lation and air conditioning. For purposes of clauses (D), (E) and (F) of 32 this subparagraph, property purchased by a taxpayer affiliated with a 33 regulated broker, dealer, registered investment advisor, national secu- 34 rities exchange or board of trade, is allowed a credit under this subdi- 35 vision if the property is used by its affiliated regulated broker, deal- 36 er, registered investment advisor, national securities exchange or board 37 of trade in accordance with this subdivision. For purposes of determin- 38 ing if the property is principally used in qualifying uses, the uses by 39 the taxpayer described in clauses (D) and (E) of this subparagraph may 40 be aggregated. In addition, the uses by the taxpayer, its affiliated 41 regulated broker, dealer and registered investment advisor under either 42 or both of those clauses may be aggregated. Provided, however, a taxpay- 43 er shall not be allowed the credit provided by clauses (D), (E) and (F) 44 of this subparagraph unless the property is first placed in service 45 before October first, two thousand fifteen and (i) eighty percent or 46 more of the employees performing the administrative and support func- 47 tions resulting from or related to the qualifying uses of such equipment 48 are located in this state or (ii) the average number of employees that 49 perform the administrative and support functions resulting from or 50 related to the qualifying uses of such equipment and are located in this 51 state during the taxable year for which the credit is claimed is equal 52 to or greater than ninety-five percent of the average number of employ- 53 ees that perform these functions and are located in this state during 54 the thirty-six months immediately preceding the year for which the cred- 55 it is claimed, or (iii) the number of employees located in this state 56 during the taxable year for which the credit is claimed is equal to orS. 2009--B 56 A. 3009--B 1 greater than ninety percent of the number of employees located in this 2 state on December thirty-first, nineteen hundred ninety-eight or, if the 3 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 4 eight, the last day of its first taxable year ending after December 5 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 6 subject to tax in this state after the taxable year beginning in nine- 7 teen hundred ninety-eight, then the taxpayer is not required to satisfy 8 the employment test provided in the preceding sentence of this subpara- 9 graph for its first taxable year. For purposes of clause (iii) of this 10 subparagraph the employment test will be based on the number of employ- 11 ees located in this state on the last day of the first taxable year the 12 taxpayer is subject to tax in this state. If the uses of the property 13 must be aggregated to determine whether the property is principally used 14 in qualifying uses, then either each affiliate using the property must 15 satisfy this employment test or this employment test must be satisfied 16 through the aggregation of the employees of the taxpayer, its affiliated 17 regulated broker, dealer, and registered investment adviser using the 18 property. For purposes of this subdivision, the term "goods" shall not 19 include electricity. 20 (d) Except as otherwise provided in this paragraph, the credit allowed 21 under this subdivision for any taxable year shall not reduce the tax due 22 for such year to less than the [higher of the amounts prescribed in23paragraphs (c) and] fixed dollar minimum amount prescribed in paragraph 24 (d) of subdivision one of [this] section two hundred ten of this 25 article. However, if the amount of credit allowable under this subdivi- 26 sion for any taxable year reduces the tax to such amount or if the 27 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 28 any amount of credit allowed for a taxable year commencing prior to 29 January first, nineteen hundred eighty-seven and not deductible in such 30 taxable year may be carried over to the following year or years and may 31 be deducted from the taxpayer's tax for such year or years but in no 32 event shall such credit be carried over to taxable years commencing on 33 or after January first, two thousand two, and any amount of credit 34 allowed for a taxable year commencing on or after January first, nine- 35 teen hundred eighty-seven and not deductible in such year may be carried 36 over to the fifteen taxable years next following such taxable year and 37 may be deducted from the taxpayer's tax for such year or years. In lieu 38 of such carryover, any such taxpayer which qualifies as a new business 39 under paragraph [(j)] (f) of this subdivision may elect to treat the 40 amount of such carryover as an overpayment of tax to be credited or 41 refunded in accordance with the provisions of section ten hundred eight- 42 y-six of this chapter, provided, however, the provisions of subsection 43 (c) of section ten hundred eighty-eight of this chapter notwithstanding, 44 no interest shall be paid thereon. 45 § 32. Subdivision 27 of section 210-B of the tax law, as added by 46 section 17 of part A of chapter 59 of the laws of 2014, is amended to 47 read as follows: 48 27. Credits of New York S corporations. (a) General. Notwithstanding 49 the provisions of this section, no carryover of credit allowable in a 50 New York C year shall be deducted from the tax otherwise due under this 51 article in a New York S year, and no credit allowable in a New York S 52 year, or carryover of such credit, shall be deducted from the tax 53 imposed by this article. However, a New York S year shall be treated as 54 a taxable year for purposes of determining the number of taxable years 55 to which a credit may be carried over under this section. Notwithstand- 56 ing the first sentence of this subdivision, however, the credit for theS. 2009--B 57 A. 3009--B 1 special additional mortgage recording tax shall be allowed as provided 2 in subdivision [fifteen] nine of this section, and the carryover of any 3 such credit shall be determined without regard to whether the credit is 4 carried from a New York C year to a New York S year or vice-versa. 5 § 32-a. Subdivision 42 of section 210-b of the tax law, as added by 6 section 17 of part A of chapter 59 of the laws of 2014, is amended to 7 read as follows: 8 42. Alternative base credit. (a) If the tax imposed on a taxpayer by 9 subdivision one of section two hundred nine of this article is the 10 amount prescribed in clause (ii) of subparagraph one of paragraph (b) of 11 subdivision one of section two hundred ten of this article, the taxpayer 12 shall be allowed a credit against the tax imposed under this article 13 equal to the amount of tax paid to another state computed on a tax base 14 identical to the tax base prescribed in such paragraph (b). If the tax 15 imposed on a taxpayer by subdivision one of section two hundred nine of 16 this article is the highest amount prescribed in paragraph (d) of subdi- 17 vision one of section two hundred ten of this article applicable to the 18 taxpayer, the taxpayer shall be allowed a credit against the tax imposed 19 under this article equal to the amount of tax paid to another state 20 computed on a tax base identical to the tax base prescribed in such 21 paragraph (d). 22 § 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph (d) and 23 paragraphs (d-1) and (e) of subdivision 4, and subdivision 7 of section 24 210-C of the tax law, as added by section 18 of part A of chapter 59 of 25 the laws of 2014, are amended to read as follows: 26 1. Tax. (a) The tax on a combined report shall be the highest of (i) 27 the combined business income base multiplied by the tax rate specified 28 in paragraph (a) of subdivision one of section two hundred ten of this 29 article; (ii) the combined capital base multiplied by the tax rate spec- 30 ified in paragraph (b) of subdivision one of section two hundred ten of 31 this article, but not exceeding the limitation provided for in that 32 paragraph (b); or (iii) the fixed dollar minimum that is attributable to 33 the designated agent of the combined group. In addition, the tax on a 34 combined report shall include the fixed dollar minimum tax specified in 35 paragraph (d) of subdivision one of section two hundred ten of this 36 article for each member of the combined group, other than the designated 37 agent, that is a taxpayer. 38 (b) The combined business income base is the amount of the combined 39 business income of the combined group that is apportioned to the state, 40 reduced by any prior net operating loss conversion subtraction and any 41 net operating loss deduction for the combined group. The combined capi- 42 tal base is the amount of the combined capital of the combined group 43 that is apportioned to the state. 44 (i) A net operating loss deduction is allowed in computing the 45 combined business income base. Such deduction may reduce the tax on the 46 combined business income base to the higher of the tax on the combined 47 capital base or the fixed dollar minimum amount that is attributable to 48 the designated agent of the combined group. A combined net operating 49 loss deduction is equal to the amount of combined net operating loss or 50 losses from one or more taxable years that are carried forward or 51 carried back to a particular [income] taxable year. A combined net oper- 52 ating loss is the combined business loss incurred in a particular taxa- 53 ble year multiplied by the combined apportionment factor for that year 54 determined as provided in subdivision five of this section. 55 (ii) The combined net operating loss deduction and combined net oper- 56 ating loss are also subject to the provisions contained in clauses oneS. 2009--B 58 A. 3009--B 1 through [six] seven of subparagraph (ix) of paragraph (a) of subdivision 2 one of section two hundred ten of this article. 3 (d-1) A prior net operating loss conversion subtraction is allowed in 4 computing the combined business income base, as provided in subparagraph 5 (viii) of paragraph (a) of subdivision one of section two hundred ten of 6 this article. Such subtraction may reduce the tax on the combined busi- 7 ness income base to the higher of the tax on the combined capital base 8 or the fixed dollar minimum amount that is attributable to the desig- 9 nated agent of the combined group. 10 (e) (i) Any election made pursuant to paragraph (b) of subdivision 11 six, [and] paragraphs (b) and (c) of subdivision six-a of section two 12 hundred eight, and item (IV) of subclause two of clause (B) of subpara- 13 graph (viii) and clause seven of subparagraph (ix) of paragraph (a) of 14 subdivision one of section two hundred ten of this article shall apply 15 to all members of the combined group. 16 (ii) The determination of whether or not the limitation on investment 17 income provided in subparagraph (iii) of paragraph (a) of subdivision 18 six of section two hundred eight of this article applies to the combined 19 group shall be based on the investment income of the combined group, 20 determined without regard to interest expenses attributable to invest- 21 ment capital or investment income, and the entire net income of the 22 combined group. 23 7. Designated agent. Each combined group shall have one designated 24 agent for the combined group, which shall be a taxpayer. [The designated25agent is the parent corporation of the combined group. If there is no26such parent corporation, or the parent corporation is not a taxpayer,27then another member of the combined group that is a taxpayer may be28appointed as the designated agent.] Only the designated agent may act on 29 behalf of the members of the combined group for matters relating to the 30 combined report. 31 § 33-a. Paragraph (b) of subdivision 3 of section 210-C of the tax 32 law, as added by section 18 of part A of chapter 59 of the laws of 2014, 33 is amended to read as follows: 34 (b) The election under this subdivision shall be made on an original, 35 timely filed return of the combined group , determined with regard to 36 extensions of time for filing. Any corporation entering a commonly owned 37 group subsequent to the year of election shall be included in the 38 combined group and is considered to have waived any objection to its 39 inclusion in the combined group. 40 § 34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as 41 added by section 4 of part A of chapter 68 of the laws of 2013, is 42 amended to read as follows: 43 (1) ascertaining the percentage that the average value of the busi- 44 ness's real and tangible personal property, whether owned or rented to 45 it, in the tax-free NY area in which the business was located during the 46 period covered by the taxpayer's report or return bears to the average 47 value of the business's real and tangible personal property, whether 48 owned or rented to it, within the state during such period; provided 49 that the term "value of the business's real and tangible personal prop- 50 erty" shall have the same meaning as such term has in [subparagraph one51of] paragraph (a) of subdivision [three] two of section [two hundred52ten] two hundred nine-B of this chapter; and 53 § 35. Clause (ii) of subparagraph (B) of paragraph 2 of subdivision 54 (d) of section 40 of the tax law, as added by section 4 of part A of 55 chapter 68 of the laws of 2013, is amended to read as follows:S. 2009--B 59 A. 3009--B 1 (ii) For purposes of article nine-A of this chapter, the term "part- 2 ner's income from the partnership" means partnership items of income, 3 gain, loss and deduction, and New York modifications thereto, entering 4 into [entire net] business income [or minimum taxable income] and the 5 term "partner's entire income" means [entire net] business income [or6minimum taxable income], allocated within the state. For purposes of 7 article twenty-two of this chapter, the term "partner's income from the 8 partnership" means partnership items of income, gain, loss and 9 deduction, and New York modifications thereto, entering into New York 10 adjusted gross income, and the term "partner's entire income" means New 11 York adjusted gross income. 12 § 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40 13 of the tax law, as added by section 4 of part A of chapter 68 of the 14 laws of 2013, is amended to read as follows: 15 (C) (i) Where the taxpayer is a shareholder of a New York S corpo- 16 ration that is a business located in a tax-free NY area, the sharehold- 17 er's tax factor shall be that portion of the amount determined in para- 18 graph one of this subdivision that is attributable to the income of the 19 S corporation. Such attribution shall be made in accordance with the 20 ratio of the shareholder's income from the S corporation allocated with- 21 in the state, entering into New York adjusted gross income, to the 22 shareholder's New York adjusted gross income, or in accordance with such 23 other methods as the commissioner may prescribe as providing an appor- 24 tionment that reasonably reflects the portion of the shareholder's tax 25 attributable to the income of such business. The income of the S corpo- 26 ration allocated within the state shall be determined by multiplying the 27 income of the S corporation by [the] a business allocation factor 28 [computed under paragraph (a) of subdivision three of section two29hundred ten of this article without regard to subparagraph ten of such30paragraph (a)] that shall be determined in clause (ii) of this subpara- 31 graph. In no event may the ratio so determined exceed 1.0. 32 (ii) The business allocation factor for purposes of this subparagraph 33 shall be computed by adding together the property factor specified in 34 subclause (I) of this clause, the wage factor specified in subclause 35 (II) of this clause and the apportionment factor determined under 36 section two hundred ten-A of this chapter and dividing by three. 37 (I) The property factor shall be determined by ascertaining the 38 percentage that the average value of the business's real and tangible 39 personal property, whether owned or rented to it, within the state 40 during the period covered by the taxpayer's report or return bears to 41 the average value of the business's real and tangible personal property, 42 whether owned or rented to it, within and without the state during such 43 period; provided that the term "value of the business's real and tangi- 44 ble personal property" shall have the same meaning as such term has in 45 paragraph (a) of subdivision two of section two hundred nine-B of this 46 chapter. 47 (II) The wage factor shall be determined by ascertaining the percent- 48 age that the total wages, salaries and other personal service compen- 49 sation, similarly computed, during such period of employees, except 50 general executive officers, employed at the business's location or 51 locations within the state, bears to the total wages, salaries and other 52 personal service compensation, similarly computed, during such period, 53 of all the business's employees within and without the state, except 54 general executive officers.S. 2009--B 60 A. 3009--B 1 § 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40 2 of the tax law, as added by section 4 of part A of chapter 68 of the 3 laws of 2013, is amended to read as follows: 4 (B) The term "income of the business located in a tax-free NY area" 5 means [entire net] business income [or minimum taxable income] calcu- 6 lated as if the taxpayer was filing separately and the term "combined 7 group's income" means [entire net] business income [or minimum taxable8income] as shown on the combined report, allocated within the state. 9 § 38. Paragraph 1 of subdivision (e) of section 40 of the tax law, as 10 added by section 4 of part A of chapter 68 of the laws of 2013, is 11 amended to read as follows: 12 (1) Article 9-A: section [210] 210-B, subdivision [47] 41. 13 § 39. Paragraph 1 of subsection (i) of section 660 of the tax law, as 14 amended by section 74 of part A of chapter 59 of the laws of 2014, is 15 amended to read as follows: 16 (1) Notwithstanding the provisions in subsection (a) of this section, 17 in the case of an eligible S corporation for which the election under 18 subsection (a) of this section is not in effect for the current taxable 19 year, the shareholders of an eligible S corporation are deemed to have 20 made that election effective for the eligible S corporation's entire 21 current taxable year, if the eligible S corporation's investment income 22 for the current taxable year is more than fifty percent of its federal 23 gross income for such year. In determining whether an eligible S [corpo-24ration's investment income] corporation is deemed to have made that 25 election, the [investment] income of a qualified subchapter S subsidiary 26 owned directly or indirectly by the eligible S corporation shall be 27 included with the income of the eligible S corporation. 28 § 40. Subdivision 41 of section 210-B of the tax law, as added by 29 section 17 of part A of chapter 59 of the laws of 2014, is amended to 30 read as follows: 31 41. The tax-free NY area tax elimination credit. A taxpayer shall be 32 allowed a credit to be computed as provided in section forty of this 33 chapter, against the tax imposed by this article. Unless the taxpayer 34 has a tax-free NY area allocation factor of one hundred percent, the 35 credit allowed under this subdivision for any taxable year shall not 36 reduce the tax due for such year to less than the amount prescribed in 37 paragraph (d) of subdivision one of section two hundred ten of this 38 article. However, if the amount of the credit allowable under this 39 subdivision for any taxable year reduces the tax to such amount or if 40 the taxpayer otherwise pays tax based on the fixed dollar minimum 41 amount, any amount of credit not deductible in such taxable year shall 42 be treated as an overpayment of tax to be credited or refunded in 43 accordance with the provisions of section one thousand eighty-six of 44 this chapter. Provided, however, the provisions of subsection (c) of 45 section one thousand eighty-eight of this chapter notwithstanding, no 46 interest shall be paid thereon. 47 § 41. Subdivision 44 of section 210-B of the tax law, as added by 48 section 17 of part A of chapter 59 of the laws of 2014, is amended to 49 read as follows: 50 44. The tax-free NY area excise tax on telecommunication services 51 credit. A taxpayer that is a business or owner of a business that is 52 located in a tax-free NY area approved pursuant to article twenty-one of 53 the economic development law shall be allowed a credit equal to the 54 excise tax on telecommunication services imposed by section one hundred 55 eighty-six-e of this chapter and passed through to such business during 56 the taxable year to the extent not otherwise deducted in computingS. 2009--B 61 A. 3009--B 1 entire net income under this article. However, except as otherwise 2 provided for in this subdivision, if the amount of the credit allowable 3 under this subdivision for any taxable year reduces the tax to the 4 amount prescribed in paragraph (d) of subdivision one of section two 5 hundred ten of this chapter or if the taxpayer otherwise pays tax based 6 on the fixed dollar minimum amount, any amount of credit not deductible 7 in such taxable year shall be treated as an overpayment of tax to be 8 credited or refunded in accordance with the provisions of section one 9 thousand eighty-six of this chapter. This credit may be claimed only 10 where any tax imposed by such section one hundred eighty-six-e has been 11 separately stated on a bill from the provider of telecommunication 12 services and paid by such business with respect to such services 13 rendered within a tax-free NY area during the taxable year. Unless the 14 taxpayer has a tax-free NY area allocation factor of one hundred 15 percent, the credit allowed under this subdivision for any taxable year 16 shall not reduce the tax due for such year to less than the amount 17 prescribed in paragraph (d) of subdivision one of section two hundred 18 ten of this chapter. Provided, however, the provisions of subsection (c) 19 of section one thousand eighty-eight of this chapter notwithstanding, no 20 interest shall be paid thereon. 21 § 42. Paragraph (b) of subdivision 47 of section 210-B of the tax law, 22 as added by section 2 of part HH of chapter 59 of the laws of 2014, is 23 amended to read as follows: 24 (b) Application of credit. The credit allowed under this subdivision 25 for any taxable year shall not reduce the tax due for such year to less 26 than the amount prescribed in paragraph (d) of subdivision one of [this] 27 section two hundred ten of this article. Provided, however, that if the 28 amount of the credit allowable under this subdivision for any taxable 29 year reduces the tax to such amount or if the taxpayer otherwise pays 30 tax based on the fixed dollar minimum amount, the excess shall be treat- 31 ed as an overpayment of tax to be credited or refunded in accordance 32 with the provisions of section one thousand eighty-six of this chapter. 33 Provided, further, the provisions of subsection (c) of section one thou- 34 sand eighty-eight of this chapter notwithstanding, no interest shall be 35 paid thereon. 36 § 43. Paragraph (b) of subdivision 48 of section 210-B of the tax law, 37 as added by section 2 of part MM of chapter 59 of the laws of 2014, is 38 amended to read as follows: 39 (b) Carryover. The credit allowed under this subdivision for any taxa- 40 ble year shall not reduce the tax due for such year to less than the 41 amount prescribed in paragraph (d) of subdivision one of [this] section 42 two hundred ten of this article. However, if the amount of credit allow- 43 able under this subdivision for any taxable year reduces the tax to such 44 amount or if the taxpayer otherwise pays tax based on the fixed dollar 45 minimum amount, any amount of credit not deductible in such taxable year 46 may be carried over to the following three years, and may be deducted 47 from the qualified employer's tax for such years. 48 § 44. This act shall take effect immediately and shall be deemed to be 49 in full force and effect on the same date as part A of chapter 59 of the 50 laws of 2014, provided, however, that the amendments to paragraph (b) of 51 subdivision 47 and paragraph (b) of subdivision 48 of section 210-B of 52 the tax law made by sections forty-two and forty-three of this act shall 53 not affect the repeal of such subdivisions and shall be deemed to repeal 54 therewith. 55 PART US. 2009--B 62 A. 3009--B 1 Section 1. Paragraph 33 of subdivision (a) of section 1115 of the tax 2 law, as added by section 99 of part A of chapter 389 of the laws of 3 1997, is amended to read as follows: 4 (33) Wine or wine product, and the bottles, corks, caps, and labels 5 used to package such wine or wine product, furnished by the official 6 agent of a farm winery, winery, wholesaler, or importer at a wine tast- 7 ing held in accordance with [section eighty of] the alcoholic beverage 8 control law to a customer or prospective customer who consumes such wine 9 at such wine tasting. 10 § 2. Section 1118 of the tax law is amended by adding a new subdivi- 11 sion (13) to read as follows: 12 (13) In respect to the use of the following items at a tasting held by 13 a licensed brewery, farm brewery, cider producer, farm cidery, distil- 14 lery or farm distillery in accordance with the alcoholic beverage 15 control law: (i) the alcoholic beverage or beverages authorized by the 16 alcoholic beverage control law to be furnished at no charge to a custom- 17 er or prospective customer at such tasting for consumption at such tast- 18 ing; and (ii) bottles, corks, caps and labels used to package such alco- 19 holic beverages. 20 § 3. This act shall take effect immediately, provided, however, 21 section two of this act shall take effect June 1, 2015 and shall apply 22 in accordance with the transition provisions of section 1106 and 1217 of 23 the tax law. 24 PART V 25 Section 1. Paragraph 22 of subdivision (b) of section 1101 of the tax 26 law, as amended by chapter 651 of the laws of 1999, is amended to read 27 as follows: 28 (22) (A) "Prepaid telephone calling service" means the right to exclu- 29 sively purchase telecommunication services, that must be paid for in 30 advance and enable the origination of one or more intrastate, interstate 31 or international telephone calls using an access number (such as a toll 32 free network access number) and/or authorization code, whether manually 33 or electronically dialed, for which payment to a vendor must be made in 34 advance, whether or not that right is represented by the transfer by the 35 vendor to the purchaser of an item of tangible personal property. Such 36 term, except with respect to the tax imposed by section one hundred 37 eighty-six-e of article nine of this chapter, includes a prepaid mobile 38 calling service. In no event shall a credit card constitute a prepaid 39 telephone calling service. If the sale or recharge of a prepaid tele- 40 phone calling service does not take place at the vendor's place of busi- 41 ness, it shall be conclusively determined to take place at the purchas- 42 er's shipping address or, if there is no item shipped, at the 43 purchaser's billing address or the location associated with the purchas- 44 er's mobile telephone number, or, if the vendor does not have the 45 address or the location associated with the customer's mobile telephone 46 number, at such address, as approved by the commissioner, that reason- 47 ably reflects the customer's location at the time of the sale or 48 recharge. 49 (B) "Prepaid mobile calling service" means the right to use a commer- 50 cial mobile radio service, whether or not sold with other property or 51 services, that must be paid for in advance and is sold for use over a 52 specified period of time or in predetermined units or dollars that 53 decline with use in a known amount, whether or not that right is repres-S. 2009--B 63 A. 3009--B 1 ented by or includes the transfer to the purchaser of an item of tangi- 2 ble personal property. 3 § 2. This act shall take effect immediately. 4 PART W 5 Intentionally Omitted 6 PART X 7 Intentionally Omitted 8 PART Y 9 Intentionally Omitted 10 PART Z 11 Section 1. Subdivision (ee) of section 1115 of the tax law, as added 12 by chapter 306 of the laws of 2005, is amended to read as follows: 13 (ee) The following shall be exempt from tax under this article: (1) 14 Receipts from the retail sale of, and consideration given or contracted 15 to be given for, or for the use of, residential solar energy systems 16 equipment and [of] the service of installing such systems [shall be17exempt from tax under this article]. For the purposes of this subdivi- 18 sion, "residential solar energy systems equipment" shall mean an 19 arrangement or combination of components installed in a residence that 20 utilizes solar radiation to produce energy designed to provide heating, 21 cooling, hot water and/or electricity. Such arrangement or components 22 shall not include equipment that is part of a non-solar energy system or 23 which uses any sort of recreational facility or equipment as a storage 24 medium. 25 (2) Receipts from the sale of electricity by a person primarily 26 engaged in the sale of solar energy system equipment and/or electricity 27 generated by such equipment pursuant to a written agreement under which 28 such electricity is generated by residential solar energy system equip- 29 ment that is: (A) owned by a person other than the purchaser of such 30 electricity; (B) installed on residential property of the purchaser of 31 such electricity; and (C) used to provide heating, cooling, hot water or 32 electricity to such property. 33 § 2. Subdivision (ii) of section 1115 of the tax law, as amended by 34 chapter 13 of the laws of 2013, is amended to read as follows: 35 (ii) The following shall be exempt from tax under this article: (1) 36 Receipts from the retail sale of, and consideration given or contracted 37 to be given for, or for the use of, commercial solar energy systems 38 equipment and [of] the service of installing such systems [shall be39exempt from taxes imposed by sections eleven hundred five and eleven40hundred ten of this article]. For the purposes of this subdivision, 41 "commercial solar energy systems equipment" shall mean an arrangement or 42 combination of components installed upon non-residential premises that 43 utilize solar radiation to produce energy designed to provide heating, 44 cooling, hot water and/or electricity. Such arrangement or components 45 shall not include equipment that is part of a non-solar energy system.S. 2009--B 64 A. 3009--B 1 (2) Receipts from the sale of electricity by a person primarily 2 engaged in the sale of solar energy system equipment and/or electricity 3 generated by such equipment pursuant to a written agreement under which 4 the electricity is generated by commercial solar energy system equipment 5 that is: (A) owned by a person other than the purchaser of such elec- 6 tricity; (B) installed on the non-residential premises of the purchaser 7 of such electricity; and (C) used to provide heating, cooling, hot water 8 or electricity to such premises. 9 § 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax 10 law, paragraph 1 as amended by chapter 13 of the laws of 2013, and para- 11 graph 4 as amended by chapter 200 of the laws of 2009, are amended to 12 read as follows: 13 (1) Either, all of the taxes described in article twenty-eight of this 14 chapter, at the same uniform rate, as to which taxes all provisions of 15 the local laws, ordinances or resolutions imposing such taxes shall be 16 identical, except as to rate and except as otherwise provided, with the 17 corresponding provisions in such article twenty-eight, including the 18 definition and exemption provisions of such article, so far as the 19 provisions of such article twenty-eight can be made applicable to the 20 taxes imposed by such city or county and with such limitations and 21 special provisions as are set forth in this article. The taxes author- 22 ized under this subdivision may not be imposed by a city or county 23 unless the local law, ordinance or resolution imposes such taxes so as 24 to include all portions and all types of receipts, charges or rents, 25 subject to state tax under sections eleven hundred five and eleven 26 hundred ten of this chapter, except as otherwise provided. (i) Any local 27 law, ordinance or resolution enacted by any city of less than one 28 million or by any county or school district, imposing the taxes author- 29 ized by this subdivision, shall, notwithstanding any provision of law to 30 the contrary, exclude from the operation of such local taxes all sales 31 of tangible personal property for use or consumption directly and 32 predominantly in the production of tangible personal property, gas, 33 electricity, refrigeration or steam, for sale, by manufacturing, proc- 34 essing, generating, assembly, refining, mining or extracting; and all 35 sales of tangible personal property for use or consumption predominantly 36 either in the production of tangible personal property, for sale, by 37 farming or in a commercial horse boarding operation, or in both; and, 38 unless such city, county or school district elects otherwise, shall omit 39 the provision for credit or refund contained in clause six of subdivi- 40 sion (a) or subdivision (d) of section eleven hundred nineteen of this 41 chapter. (ii) Any local law, ordinance or resolution enacted by any 42 city, county or school district, imposing the taxes authorized by this 43 subdivision, shall omit the residential solar energy systems equipment 44 and electricity exemption provided for in subdivision (ee), the commer- 45 cial solar energy systems equipment and electricity exemption provided 46 for in subdivision (ii) and the clothing and footwear exemption provided 47 for in paragraph thirty of subdivision (a) of section eleven hundred 48 fifteen of this chapter, unless such city, county or school district 49 elects otherwise as to either such residential solar energy systems 50 equipment and electricity exemption, such commercial solar energy 51 systems equipment and electricity exemption or such clothing and foot- 52 wear exemption. 53 (4) Notwithstanding any other provision of law to the contrary, any 54 local law enacted by any city of one million or more that imposes the 55 taxes authorized by this subdivision (i) may omit the exception provided 56 in subparagraph (ii) of paragraph three of subdivision (c) of sectionS. 2009--B 65 A. 3009--B 1 eleven hundred five of this chapter for receipts from laundering, dry- 2 cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining; 3 (ii) may impose the tax described in paragraph six of subdivision (c) of 4 section eleven hundred five of this chapter at a rate in addition to the 5 rate prescribed by this section not to exceed two percent in multiples 6 of one-half of one percent; (iii) shall provide that the tax described 7 in paragraph six of subdivision (c) of section eleven hundred five of 8 this chapter does not apply to facilities owned and operated by the city 9 or an agency or instrumentality of the city or a public corporation the 10 majority of whose members are appointed by the chief executive officer 11 of the city or the legislative body of the city or both of them; (iv) 12 shall not include any tax on receipts from, or the use of, the services 13 described in paragraph seven of subdivision (c) of section eleven 14 hundred five of this chapter; (v) shall provide that, for purposes of 15 the tax described in subdivision (e) of section eleven hundred five of 16 this chapter, "permanent resident" means any occupant of any room or 17 rooms in a hotel for at least one hundred eighty consecutive days with 18 regard to the period of such occupancy; (vi) may omit the exception 19 provided in paragraph one of subdivision (f) of section eleven hundred 20 five of this chapter for charges to a patron for admission to, or use 21 of, facilities for sporting activities in which the patron is to be a 22 participant, such as bowling alleys and swimming pools; (vii) may 23 provide the clothing and footwear exemption in paragraph thirty of 24 subdivision (a) of section eleven hundred fifteen of this chapter, and, 25 notwithstanding any provision of subdivision (d) of this section to the 26 contrary, any local law providing for such exemption or repealing such 27 exemption, may go into effect on any one of the following dates: March 28 first, June first, September first or December first; (viii) shall omit 29 the exemption provided in paragraph forty-one of subdivision (a) of 30 section eleven hundred fifteen of this chapter; (ix) shall omit the 31 exemption provided in subdivision (c) of section eleven hundred fifteen 32 of this chapter insofar as it applies to fuel, gas, electricity, refrig- 33 eration and steam, and gas, electric, refrigeration and steam service of 34 whatever nature for use or consumption directly and exclusively in the 35 production of gas, electricity, refrigeration or steam; (x) shall omit, 36 unless such city elects otherwise, the provision for refund or credit 37 contained in clause six of subdivision (a) or in subdivision (d) of 38 section eleven hundred nineteen of this chapter; [and] (xi) shall 39 provide that section eleven hundred five-C of this chapter does not 40 apply to such taxes, and shall tax receipts from every sale, other than 41 sales for resale, of gas service or electric service of whatever nature, 42 including the transportation, transmission or distribution of gas or 43 electricity, even if sold separately, at the rate set forth in clause 44 one of subparagraph (i) of the opening paragraph of this section; (xii) 45 shall omit, unless such city elects otherwise, the exemption for resi- 46 dential solar energy systems equipment and electricity provided in 47 subdivision (ee) of section eleven hundred fifteen of this chapter; and 48 (xiii) shall omit, unless such city elects otherwise, the exemption for 49 commercial solar energy systems equipment and electricity provided in 50 subdivision (ii) of section eleven hundred fifteen of this chapter. Any 51 reference in this chapter or in any local law, ordinance or resolution 52 enacted pursuant to the authority of this article to former subdivisions 53 (n) or (p) of this section shall be deemed to be a reference to clauses 54 (xii) or (xiii) of this paragraph, respectively, and any such local law, 55 ordinance or resolution that provides the exemptions provided in such 56 former subdivisions (n) and/or (p) shall be deemed instead to provideS. 2009--B 66 A. 3009--B 1 the exemptions provided in clauses (xii) and/or (xiii) of this 2 paragraph. 3 § 4. Paragraph 1 and subparagraph (i) of paragraph 3 of subdivision 4 (b) of section 1210 of the tax law, paragraph 1 as amended by section 36 5 of part S-1 of chapter 57 of the laws of 2009, and subparagraph (i) of 6 paragraph 3 as amended by section 3 of part B of chapter 35 of the laws 7 of 2006, are amended to read as follows: 8 (1) Or, one or more of the taxes described in subdivisions (b), (d), 9 (e) and (f) of section eleven hundred five of this chapter, at the same 10 uniform rate, including the transitional provisions in section eleven 11 hundred six of this chapter covering such taxes, but not the taxes 12 described in subdivisions (a) and (c) of section eleven hundred five of 13 this chapter. Provided, further, that where the tax described in subdi- 14 vision (b) of section eleven hundred five of this chapter is imposed, 15 the compensating use taxes described in clauses (E), (G) and (H) of 16 subdivision (a) of section eleven hundred ten of this chapter shall also 17 be imposed. Provided, further, that where the taxes described in subdi- 18 vision (b) of section eleven hundred five are imposed, such taxes shall 19 omit: (A) the provision for refund or credit contained in subdivision 20 (d) of section eleven hundred nineteen of this chapter with respect to 21 such taxes described in such subdivision (b) of section eleven hundred 22 five unless such city or county elects to provide such provision or, if 23 so elected, to repeal such provision; (B) the exemption provided in 24 paragraph two of subdivision (ee) of section eleven hundred fifteen of 25 this chapter unless such county or city elects otherwise; and (C) the 26 exemption provided in paragraph two of subdivision (ii) of section elev- 27 en hundred fifteen of this chapter, unless such county or city elects 28 otherwise. 29 (i) Notwithstanding any other provision of law to the contrary but not 30 with respect to cities subject to the provisions of section eleven 31 hundred eight of this chapter, any city or county, except a county whol- 32 ly contained within a city, may provide that the tax imposed, pursuant 33 to this subdivision, by such city or county on the sale, other than for 34 resale, of propane (except when sold in containers of less than one 35 hundred pounds), natural gas, electricity, steam and gas, electric and 36 steam services of whatever nature used for residential purposes and on 37 the use of gas or electricity used for residential purposes may be 38 imposed at a lower rate than the uniform local rate imposed pursuant to 39 the opening paragraph of this section, as long as such rate is one of 40 the rates authorized by such paragraph or such sale or use may be 41 exempted from such taxes. Provided, however, such lower rate must apply 42 to all such energy sources and services and at the same rate and no such 43 exemption, other than the exemption provided for in subdivision (ee) of 44 section eleven hundred fifteen of this chapter, if such exemption is 45 elected by such city or county, may be enacted unless such exemption 46 applies to all such energy sources and services. 47 § 4-a. Subdivision (d) of section 1210 of the tax law, as amended by 48 section 37 of part S-1 of chapter 57 of the laws of 2009, is amended to 49 read as follows: 50 (d) A local law, ordinance or resolution imposing any tax pursuant to 51 this section, increasing or decreasing the rate of such tax, repealing 52 or suspending such tax, exempting from such tax the energy sources and 53 services described in paragraph three of subdivision (a) or of subdivi- 54 sion (b) of this section or changing the rate of tax imposed on such 55 energy sources and services or providing for the credit or refund 56 described in clause six of subdivision (a) of section eleven hundredS. 2009--B 67 A. 3009--B 1 nineteen of this chapter, or electing or repealing the exemption for 2 residential solar equipment and electricity in subdivision (ee) of 3 section eleven hundred fifteen of this article, or the exemption for 4 commercial solar equipment and electricity in subdivision (ii) of 5 section eleven hundred fifteen of this article must go into effect only 6 on one of the following dates: March first, June first, September first 7 or December first; provided, that a local law, ordinance or resolution 8 providing for the exemption described in paragraph thirty of subdivision 9 (a) of section eleven hundred fifteen of this chapter or repealing any 10 such exemption or a local law, ordinance or resolution providing for a 11 refund or credit described in subdivision (d) of section eleven hundred 12 nineteen of this chapter or repealing such provision so provided must go 13 into effect only on March first. No such local law, ordinance or resol- 14 ution shall be effective unless a certified copy of such law, ordinance 15 or resolution is mailed by registered or certified mail to the commis- 16 sioner at the commissioner's office in Albany at least ninety days prior 17 to the date it is to become effective. However, the commissioner may 18 waive and reduce such ninety-day minimum notice requirement to a mailing 19 of such certified copy by registered or certified mail within a period 20 of not less than thirty days prior to such effective date if the commis- 21 sioner deems such action to be consistent with the commissioner's duties 22 under section twelve hundred fifty of this article and the commissioner 23 acts by resolution. Where the restriction provided for in section twelve 24 hundred twenty-three of this article as to the effective date of a tax 25 and the notice requirement provided for therein are applicable and have 26 not been waived, the restriction and notice requirement in section 27 twelve hundred twenty-three of this article shall also apply. 28 § 5. Subdivisions (n) and (p) of section 1210 of the tax law are 29 REPEALED. 30 § 6. Subdivision (a) of section 1212 of the tax law, as amended by 31 section 40 of part S-1 of chapter 57 of the laws of 2009, is amended to 32 read as follows: 33 (a) Any school district which is coterminous with, partly within or 34 wholly within a city having a population of less than one hundred twen- 35 ty-five thousand, is hereby authorized and empowered, by majority vote 36 of the whole number of its school authorities, to impose for school 37 district purposes, within the territorial limits of such school district 38 and without discrimination between residents and nonresidents thereof, 39 the taxes described in subdivision (b) of section eleven hundred five 40 (but excluding the tax on prepaid telephone calling services) and the 41 taxes described in clauses (E) and (H) of subdivision (a) of section 42 eleven hundred ten, including the transitional provisions in subdivision 43 (b) of section eleven hundred six of this chapter, so far as such 44 provisions can be made applicable to the taxes imposed by such school 45 district and with such limitations and special provisions as are set 46 forth in this article, such taxes to be imposed at the rate of one-half, 47 one, one and one-half, two, two and one-half or three percent which rate 48 shall be uniform for all portions and all types of receipts and uses 49 subject to such taxes. In respect to such taxes, all provisions of the 50 resolution imposing them, except as to rate and except as otherwise 51 provided herein, shall be identical with the corresponding provisions in 52 such article twenty-eight of this chapter, including the applicable 53 definition and exemption provisions of such article, so far as the 54 provisions of such article twenty-eight of this chapter can be made 55 applicable to the taxes imposed by such school district and with such 56 limitations and special provisions as are set forth in this article. TheS. 2009--B 68 A. 3009--B 1 taxes described in subdivision (b) of section eleven hundred five (but 2 excluding the tax on prepaid telephone calling service) and clauses (E) 3 and (H) of subdivision (a) of section eleven hundred ten, including the 4 transitional provision in subdivision (b) of such section eleven hundred 5 six of this chapter, may not be imposed by such school district unless 6 the resolution imposes such taxes so as to include all portions and all 7 types of receipts and uses subject to tax under such subdivision (but 8 excluding the tax on prepaid telephone calling service) and clauses. 9 Provided, however, that, where a school district imposes such taxes, 10 such taxes shall omit the provision for refund or credit contained in 11 subdivision (d) of section eleven hundred nineteen of this chapter with 12 respect to such taxes described in such subdivision (b) of section elev- 13 en hundred five unless such school district elects to provide such 14 provision or, if so elected, to repeal such provision, and shall omit 15 the exemptions provided in paragraph two of subdivision (ee) and para- 16 graph two of subdivision (ii) of section eleven hundred fifteen of this 17 chapter unless such school district elects otherwise. 18 § 7. Section 1224 of the tax law is amended by adding a new subdivi- 19 sion (c-1) to read as follows: 20 (c-1) Notwithstanding any other provision of law: (1) Where a county 21 containing one or more cities with a population of less than one million 22 has elected the exemption for residential solar energy systems equipment 23 and electricity provided in subdivision (ee) of section eleven hundred 24 fifteen of this chapter, the exemption for commercial solar energy 25 systems equipment and electricity provided in subdivision (ii) of such 26 section eleven hundred fifteen, or both such exemptions, a city within 27 such county shall have the prior right to impose tax on such exempt 28 equipment and/or electricity to the extent of one half of the maximum 29 rates authorized under subdivision (a) of section twelve hundred ten of 30 this article; 31 (2) Where a city of less than one million has elected the exemption 32 for residential solar energy systems equipment and electricity provided 33 in subdivision (ee) of section eleven hundred fifteen of this chapter, 34 the exemption for commercial solar energy systems equipment and elec- 35 tricity provided in subdivision (ii) of such section eleven hundred 36 fifteen, or both such exemptions, the county in which such city is 37 located shall have the prior right to impose tax on such exempt equip- 38 ment and/or electricity to the extent of one half of the maximum rates 39 authorized under subdivision (a) of section twelve hundred ten of this 40 article. 41 § 8. This act shall take effect December 1, 2015 and shall apply in 42 accordance with the applicable transitional provisions in sections 1106 43 and 1217 of the tax law. 44 PART AA 45 Section 1. Subdivision (f) of section 301-c of the tax law, as amended 46 by section 23 of part K of chapter 61 of the laws of 2011, is amended to 47 read as follows: 48 (f) Motor fuel and highway diesel motor fuel used for farm production. 49 No more than one thousand five hundred gallons of motor fuel and no more 50 than four thousand five hundred gallons of highway diesel motor fuel 51 purchased in this state in a thirty-day period or a greater amount which 52 has been given prior clearance by the commissioner, by a consumer for 53 use or consumption directly and exclusively in the production for sale 54 of tangible personal property by farming, but only if all of such motorS. 2009--B 69 A. 3009--B 1 fuel or highway diesel motor fuel is delivered on the farm site and is 2 consumed other than on the public highways of this state (except for the 3 use of the public highway to reach adjacent farmlands). This reimburse- 4 ment to such purchaser who used such motor fuel or highway diesel motor 5 fuel in the manner specified in this subdivision may be claimed only 6 where, (i) the tax imposed pursuant to this article has been paid with 7 respect to such motor fuel or highway diesel motor fuel and the entire 8 amount of such tax has been absorbed by such purchaser, and (ii) such 9 purchaser possesses documentary proof satisfactory to the commissioner 10 evidencing the absorption by it of the entire amount of the tax imposed 11 pursuant to this article. Provided, however, that the commissioner shall 12 require such documentary proof to qualify for any reimbursement of tax 13 provided by this subdivision as the commissioner deems appropriate. The 14 commissioner is hereby empowered to make such provisions as deemed 15 necessary to define the procedures for granting prior clearance for 16 purchases of more than one thousand five hundred gallons of motor fuel 17 or four thousand five hundred gallons of highway diesel motor fuel in a 18 thirty-day period. 19 § 2. This act shall take effect immediately. 20 PART BB 21 Section 1. Subsection (b) of section 952 of the tax law, as amended by 22 section 2 of part X of chapter 59 of the laws of 2014, is amended to 23 read as follows: 24 (b) Computation of tax. The tax imposed by this section shall be 25 computed on the deceased resident's New York taxable estate as follows: 26 [In the case of decedents dying on or after April 1, 2014 and before27April 1, 2015] 28 If the New York taxable estate is: The tax is: 29 Not over $500,000 3.06% of taxable estate 30 Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over 31 $500,000 32 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over 33 $1,000,000 34 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over 35 $1,500,000 36 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess 37 over $2,100,000 38 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over 39 $2,600,000 40 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over 41 $3,100,000 42 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess 43 over $3,600,000 44 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess 45 over $4,100,000 46 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess 47 over $5,100,000 48 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess 49 over $6,100,000 50 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess 51 over $7,100,000 52 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess 53 over $8,100,000 54 Over $9,100,000 but not over $930,800 plus 15.2% of excess overS. 2009--B 70 A. 3009--B 1 $10,100,000 $9,100,000 2 Over $10,100,000 $1,082,800 plus 16.0% of excess 3 over $10,100,000 4 § 2. Paragraph 3 of subsection (a) of section 954 of the tax law, as 5 added by section 3 of part X of chapter 59 of the laws of 2014, is 6 amended to read as follows: 7 (3) Increased by the amount of any taxable gift under section 2503 of 8 the internal revenue code not otherwise included in the decedent's 9 federal gross estate, made during the three year period ending on the 10 decedent's date of death, but not including any gift made: [(1)] (A) 11 when the decedent was not a resident of New York state; [(2)] or (B) 12 before April first, two thousand fourteen[; or (3)]; or (C) that is real 13 or tangible personal property having an actual situs outside New York 14 state at the time the gift was made. Provided, however that this para- 15 graph shall not apply to the estate of a decendent dying on or after 16 January first, two thousand nineteen. 17 § 3. Subsection (b) of section 960 of the tax law, as amended by 18 section 5 of part X of chapter 59 of the laws of 2014, is amended to 19 read as follows: 20 (b) Computation of tax.--The tax imposed under subsection (a) shall be 21 the same as the tax that would be due, if the decedent had died a resi- 22 dent, under subsection (a) of section nine hundred fifty-two, except 23 that for purposes of computing the tax under subsection (b) of section 24 nine hundred fifty-two, "New York taxable estate" shall not include the 25 value of, or any deduction allowable under the Internal Revenue Code 26 related to, any intangible personal property otherwise includible in the 27 deceased individual's New York gross estate, and shall not include the 28 amount of any gift unless such gift consists of real or tangible 29 personal property having an actual situs in New York state or intangible 30 personal property employed in a business, trade or profession carried on 31 in this state. 32 § 4. This act shall take effect immediately and shall be deemed to 33 have been in full force and effect on and after April 1, 2014. 34 PART CC 35 Intentionally Omitted 36 PART DD 37 Section 1. Section 2 of part Q of chapter 59 of the laws of 2013, 38 amending the tax law relating to serving an income execution with 39 respect to individual tax debtors without filing a warrant, is amended 40 to read as follows: 41 § 2. This act shall take effect immediately and shall expire and be 42 deemed repealed on and after April 1, [2015] 2017. 43 § 2. This act shall take effect immediately. 44 PART EE 45 Intentionally Omitted 46 PART FFS. 2009--B 71 A. 3009--B 1 Intentionally Omitted 2 PART GG 3 Intentionally Omitted 4 PART HH 5 Intentionally Omitted 6 PART II 7 Intentionally Omitted 8 PART JJ 9 Intentionally Omitted 10 PART KK 11 Intentionally Omitted 12 PART LL 13 Intentionally Omitted 14 PART MM 15 Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- 16 sion b of section 1612 of the tax law, as amended by section 1 of part 17 BB of chapter 59 of the laws of 2014, is amended to read as follows: 18 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of 19 this subparagraph, the track operator of a vendor track shall be eligi- 20 ble for a vendor's capital award of up to four percent of the total 21 revenue wagered at the vendor track after payout for prizes pursuant to 22 this chapter, which shall be used exclusively for capital project 23 investments to improve the facilities of the vendor track which promote 24 or encourage increased attendance at the video lottery gaming facility 25 including, but not limited to hotels, other lodging facilities, enter- 26 tainment facilities, retail facilities, dining facilities, events 27 arenas, parking garages and other improvements that enhance facility 28 amenities; provided that such capital investments shall be approved by 29 the division, in consultation with the state racing and wagering board, 30 and that such vendor track demonstrates that such capital expenditures 31 will increase patronage at such vendor track's facilities and increase 32 the amount of revenue generated to support state education programs. The 33 annual amount of such vendor's capital awards that a vendor track shall 34 be eligible to receive shall be limited to two million five hundred 35 thousand dollars, except for Aqueduct racetrack, for which there shallS. 2009--B 72 A. 3009--B 1 be no vendor's capital awards. Except for tracks having less than one 2 thousand one hundred video gaming machines, and except for a vendor 3 track located west of State Route 14 from Sodus Point to the Pennsylva- 4 nia border within New York, each track operator shall be required to 5 co-invest an amount of capital expenditure equal to its cumulative 6 vendor's capital award. For all tracks, except for Aqueduct racetrack, 7 the amount of any vendor's capital award that is not used during any one 8 year period may be carried over into subsequent years ending before 9 April first, two thousand [fifteen] sixteen. Any amount attributable to 10 a capital expenditure approved prior to April first, two thousand 11 [fifteen] sixteen and completed before April first, two thousand [seven-12teen] eighteen; or approved prior to April first, two thousand [nine-13teen] twenty and completed before April first, two thousand [twenty-one] 14 twenty-two for a vendor track located west of State Route 14 from Sodus 15 Point to the Pennsylvania border within New York, shall be eligible to 16 receive the vendor's capital award. In the event that a vendor track's 17 capital expenditures, approved by the division prior to April first, two 18 thousand [fifteen] sixteen and completed prior to April first, two thou- 19 sand [seventeen] eighteen, exceed the vendor track's cumulative capital 20 award during the five year period ending April first, two thousand 21 [fifteen] sixteen, the vendor shall continue to receive the capital 22 award after April first, two thousand [fifteen] sixteen until such 23 approved capital expenditures are paid to the vendor track subject to 24 any required co-investment. In no event shall any vendor track that 25 receives a vendor fee pursuant to clause (F) or (G) of this subparagraph 26 be eligible for a vendor's capital award under this section. Any opera- 27 tor of a vendor track which has received a vendor's capital award, 28 choosing to divest the capital improvement toward which the award was 29 applied, prior to the full depreciation of the capital improvement in 30 accordance with generally accepted accounting principles, shall reim- 31 burse the state in amounts equal to the total of any such awards. Any 32 capital award not approved for a capital expenditure at a video lottery 33 gaming facility by April first, two thousand [fifteen] sixteen shall be 34 deposited into the state lottery fund for education aid; and 35 § 2. This act shall take effect immediately. 36 PART NN 37 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 38 racing, pari-mutuel wagering and breeding law, as amended by section 1 39 of part AA of chapter 59 of the laws of 2014, is amended to read as 40 follows: 41 (a) Any racing association or corporation or regional off-track 42 betting corporation, authorized to conduct pari-mutuel wagering under 43 this chapter, desiring to display the simulcast of horse races on which 44 pari-mutuel betting shall be permitted in the manner and subject to the 45 conditions provided for in this article may apply to the commission for 46 a license so to do. Applications for licenses shall be in such form as 47 may be prescribed by the commission and shall contain such information 48 or other material or evidence as the commission may require. No license 49 shall be issued by the commission authorizing the simulcast transmission 50 of thoroughbred races from a track located in Suffolk county. The fee 51 for such licenses shall be five hundred dollars per simulcast facility 52 and for account wagering licensees that do not operate either a simul- 53 cast facility that is open to the public within the state of New York or 54 a licensed racetrack within the state, twenty thousand dollars per yearS. 2009--B 73 A. 3009--B 1 payable by the licensee to the commission for deposit into the general 2 fund. Except as provided in this section, the commission shall not 3 approve any application to conduct simulcasting into individual or group 4 residences, homes or other areas for the purposes of or in connection 5 with pari-mutuel wagering. The commission may approve simulcasting into 6 residences, homes or other areas to be conducted jointly by one or more 7 regional off-track betting corporations and one or more of the follow- 8 ing: a franchised corporation, thoroughbred racing corporation or a 9 harness racing corporation or association; provided (i) the simulcasting 10 consists only of those races on which pari-mutuel betting is authorized 11 by this chapter at one or more simulcast facilities for each of the 12 contracting off-track betting corporations which shall include wagers 13 made in accordance with section one thousand fifteen, one thousand 14 sixteen and one thousand seventeen of this article; provided further 15 that the contract provisions or other simulcast arrangements for such 16 simulcast facility shall be no less favorable than those in effect on 17 January first, two thousand five; (ii) that each off-track betting 18 corporation having within its geographic boundaries such residences, 19 homes or other areas technically capable of receiving the simulcast 20 signal shall be a contracting party; (iii) the distribution of revenues 21 shall be subject to contractual agreement of the parties except that 22 statutory payments to non-contracting parties, if any, may not be 23 reduced; provided, however, that nothing herein to the contrary shall 24 prevent a track from televising its races on an irregular basis primari- 25 ly for promotional or marketing purposes as found by the commission. For 26 purposes of this paragraph, the provisions of section one thousand thir- 27 teen of this article shall not apply. Any agreement authorizing an 28 in-home simulcasting experiment commencing prior to May fifteenth, nine- 29 teen hundred ninety-five, may, and all its terms, be extended until June 30 thirtieth, two thousand [fifteen] sixteen; provided, however, that any 31 party to such agreement may elect to terminate such agreement upon 32 conveying written notice to all other parties of such agreement at least 33 forty-five days prior to the effective date of the termination, via 34 registered mail. Any party to an agreement receiving such notice of an 35 intent to terminate, may request the commission to mediate between the 36 parties new terms and conditions in a replacement agreement between the 37 parties as will permit continuation of an in-home experiment until June 38 thirtieth, two thousand [fifteen] sixteen; and (iv) no in-home simul- 39 casting in the thoroughbred special betting district shall occur without 40 the approval of the regional thoroughbred track. 41 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 42 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 43 section 2 of part AA of chapter 59 of the laws of 2014, is amended to 44 read as follows: 45 (iii) Of the sums retained by a receiving track located in Westchester 46 county on races received from a franchised corporation, for the period 47 commencing January first, two thousand eight and continuing through June 48 thirtieth, two thousand [fifteen] sixteen, the amount used exclusively 49 for purses to be awarded at races conducted by such receiving track 50 shall be computed as follows: of the sums so retained, two and one-half 51 percent of the total pools. Such amount shall be increased or decreased 52 in the amount of fifty percent of the difference in total commissions 53 determined by comparing the total commissions available after July twen- 54 ty-first, nineteen hundred ninety-five to the total commissions that 55 would have been available to such track prior to July twenty-first, 56 nineteen hundred ninety-five.S. 2009--B 74 A. 3009--B 1 § 3. The opening paragraph of subdivision 1 of section 1014 of the 2 racing, pari-mutuel wagering and breeding law, as amended by section 3 3 of part AA of chapter 59 of the laws of 2014, is amended to read as 4 follows: 5 The provisions of this section shall govern the simulcasting of races 6 conducted at thoroughbred tracks located in another state or country on 7 any day during which a franchised corporation is conducting a race meet- 8 ing in Saratoga county at Saratoga thoroughbred racetrack until June 9 thirtieth, two thousand [fifteen] sixteen and on any day regardless of 10 whether or not a franchised corporation is conducting a race meeting in 11 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, 12 two thousand [fifteen] sixteen. On any day on which a franchised corpo- 13 ration has not scheduled a racing program but a thoroughbred racing 14 corporation located within the state is conducting racing, every off- 15 track betting corporation branch office and every simulcasting facility 16 licensed in accordance with section one thousand seven (that have 17 entered into a written agreement with such facility's representative 18 horsemen's organization, as approved by the commission), one thousand 19 eight, or one thousand nine of this article shall be authorized to 20 accept wagers and display the live simulcast signal from thoroughbred 21 tracks located in another state or foreign country subject to the 22 following provisions: 23 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 24 and breeding law, as amended by section 4 of part AA of chapter 59 of 25 the laws of 2014, is amended to read as follows: 26 1. The provisions of this section shall govern the simulcasting of 27 races conducted at harness tracks located in another state or country 28 during the period July first, nineteen hundred ninety-four through June 29 thirtieth, two thousand [fifteen] sixteen. This section shall supersede 30 all inconsistent provisions of this chapter. 31 § 5. The opening paragraph of subdivision 1 of section 1016 of the 32 racing, pari-mutuel wagering and breeding law, as amended by section 5 33 of part AA of chapter 59 of the laws of 2014, is amended to read as 34 follows: 35 The provisions of this section shall govern the simulcasting of races 36 conducted at thoroughbred tracks located in another state or country on 37 any day during which a franchised corporation is not conducting a race 38 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 39 thirtieth, two thousand [fifteen] sixteen. Every off-track betting 40 corporation branch office and every simulcasting facility licensed in 41 accordance with section one thousand seven that have entered into a 42 written agreement with such facility's representative horsemen's organ- 43 ization as approved by the commission, one thousand eight or one thou- 44 sand nine of this article shall be authorized to accept wagers and 45 display the live full-card simulcast signal of thoroughbred tracks 46 (which may include quarter horse or mixed meetings provided that all 47 such wagering on such races shall be construed to be thoroughbred races) 48 located in another state or foreign country, subject to the following 49 provisions; provided, however, no such written agreement shall be 50 required of a franchised corporation licensed in accordance with section 51 one thousand seven of this article: 52 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 53 wagering and breeding law, as amended by section 6 of part AA of chapter 54 59 of the laws of 2014, is amended to read as follows: 55 Notwithstanding any other provision of this chapter, for the period 56 July twenty-fifth, two thousand one through September eighth, two thou-S. 2009--B 75 A. 3009--B 1 sand [fourteen] fifteen, when a franchised corporation is conducting a 2 race meeting within the state at Saratoga Race Course, every off-track 3 betting corporation branch office and every simulcasting facility 4 licensed in accordance with section one thousand seven (that has entered 5 into a written agreement with such facility's representative horsemen's 6 organization as approved by the commission), one thousand eight or one 7 thousand nine of this article shall be authorized to accept wagers and 8 display the live simulcast signal from thoroughbred tracks located in 9 another state, provided that such facility shall accept wagers on races 10 run at all in-state thoroughbred tracks which are conducting racing 11 programs subject to the following provisions; provided, however, no such 12 written agreement shall be required of a franchised corporation licensed 13 in accordance with section one thousand seven of this article. 14 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 15 racing, pari-mutuel wagering and breeding law and other laws relating 16 to simulcasting, as amended by section 7 of part AA of chapter 59 of the 17 laws of 2014, is amended to read as follows: 18 § 32. This act shall take effect immediately and the pari-mutuel tax 19 reductions in section six of this act shall expire and be deemed 20 repealed on July 1, [2015] 2016; provided, however, that nothing 21 contained herein shall be deemed to affect the application, qualifica- 22 tion, expiration, or repeal of any provision of law amended by any 23 section of this act, and such provisions shall be applied or qualified 24 or shall expire or be deemed repealed in the same manner, to the same 25 extent and on the same date as the case may be as otherwise provided by 26 law; provided further, however, that sections twenty-three and twenty- 27 five of this act shall remain in full force and effect only until May 1, 28 1997 and at such time shall be deemed to be repealed. 29 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 30 racing, pari-mutuel wagering and breeding law and other laws relating to 31 simulcasting and the imposition of certain taxes, as amended by section 32 8 of part AA of chapter 59 of the laws of 2014, is amended to read as 33 follows: 34 § 54. This act shall take effect immediately; provided, however, 35 sections three through twelve of this act shall take effect on January 36 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 37 ing law, as added by section thirty-eight of this act, shall expire and 38 be deemed repealed on July 1, [2015] 2016; and section eighteen of this 39 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 40 two of this act shall take effect as of the same date as chapter 772 of 41 the laws of 1989 took effect. 42 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 43 pari-mutuel wagering and breeding law, as amended by section 9 of part 44 AA of chapter 59 of the laws of 2014, is amended to read as follows: 45 (a) The franchised corporation authorized under this chapter to 46 conduct pari-mutuel betting at a race meeting or races run thereat shall 47 distribute all sums deposited in any pari-mutuel pool to the holders of 48 winning tickets therein, provided such tickets be presented for payment 49 before April first of the year following the year of their purchase, 50 less an amount which shall be established and retained by such fran- 51 chised corporation of between twelve to seventeen per centum of the 52 total deposits in pools resulting from on-track regular bets, and four- 53 teen to twenty-one per centum of the total deposits in pools resulting 54 from on-track multiple bets and fifteen to twenty-five per centum of the 55 total deposits in pools resulting from on-track exotic bets and fifteen 56 to thirty-six per centum of the total deposits in pools resulting fromS. 2009--B 76 A. 3009--B 1 on-track super exotic bets, plus the breaks. The retention rate to be 2 established is subject to the prior approval of the gaming commission. 3 Such rate may not be changed more than once per calendar quarter to be 4 effective on the first day of the calendar quarter. "Exotic bets" and 5 "multiple bets" shall have the meanings set forth in section five 6 hundred nineteen of this chapter. "Super exotic bets" shall have the 7 meaning set forth in section three hundred one of this chapter. For 8 purposes of this section, a "pick six bet" shall mean a single bet or 9 wager on the outcomes of six races. The breaks are hereby defined as the 10 odd cents over any multiple of five for payoffs greater than one dollar 11 five cents but less than five dollars, over any multiple of ten for 12 payoffs greater than five dollars but less than twenty-five dollars, 13 over any multiple of twenty-five for payoffs greater than twenty-five 14 dollars but less than two hundred fifty dollars, or over any multiple of 15 fifty for payoffs over two hundred fifty dollars. Out of the amount so 16 retained there shall be paid by such franchised corporation to the 17 commissioner of taxation and finance, as a reasonable tax by the state 18 for the privilege of conducting pari-mutuel betting on the races run at 19 the race meetings held by such franchised corporation, the following 20 percentages of the total pool for regular and multiple bets five per 21 centum of regular bets and four per centum of multiple bets plus twenty 22 per centum of the breaks; for exotic wagers seven and one-half per 23 centum plus twenty per centum of the breaks, and for super exotic bets 24 seven and one-half per centum plus fifty per centum of the breaks. For 25 the period June first, nineteen hundred ninety-five through September 26 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be 27 three per centum and such tax on multiple wagers shall be two and one- 28 half per centum, plus twenty per centum of the breaks. For the period 29 September tenth, nineteen hundred ninety-nine through March thirty- 30 first, two thousand one, such tax on all wagers shall be two and six- 31 tenths per centum and for the period April first, two thousand one 32 through December thirty-first, two thousand [fifteen] sixteen, such tax 33 on all wagers shall be one and six-tenths per centum, plus, in each such 34 period, twenty per centum of the breaks. Payment to the New York state 35 thoroughbred breeding and development fund by such franchised corpo- 36 ration shall be one-half of one per centum of total daily on-track pari- 37 mutuel pools resulting from regular, multiple and exotic bets and three 38 per centum of super exotic bets provided, however, that for the period 39 September tenth, nineteen hundred ninety-nine through March thirty- 40 first, two thousand one, such payment shall be six-tenths of one per 41 centum of regular, multiple and exotic pools and for the period April 42 first, two thousand one through December thirty-first, two thousand 43 [fifteen] sixteen, such payment shall be seven-tenths of one per centum 44 of such pools. 45 § 10. This act shall take effect immediately. 46 PART OO 47 Section 1. Section 1602 of the tax law is amended by adding a new 48 subdivision 6 to read as follows: 49 6. "Video lottery gaming" means any lottery game played on a video 50 lottery terminal that issues electronic tickets, allows multiple players 51 to participate in the same game and determines winners to a material 52 degree upon the element of chance, notwithstanding that the skill of a 53 player may influence such player's chance of winning a game. VideoS. 2009--B 77 A. 3009--B 1 lottery gaming may include elements of player interaction after a player 2 receives an initial chance. 3 § 2. Subdivision 28 of section 225.00 of the penal law, as added by 4 chapter 174 of the laws of 2013, is amended to read as follows: 5 28. "Video lottery gaming" [means any lottery game played on a video6lottery terminal, which consists of multiple players competing for a7chance to win a random drawn prize pursuant to section sixteen hundred8seventeen-a and paragraph five of subdivision a of section sixteen9hundred twelve of the tax law, as amended and implemented] has the mean- 10 ing set forth in subdivision six of section sixteen hundred two of the 11 tax law. 12 § 3. This act shall take effect on the thirtieth day after it shall 13 have become a law. 14 PART PP 15 Section 1. Paragraph d of subdivision 1 of section 207 of the racing, 16 pari-mutuel wagering and breeding law, as added by chapter 457 of the 17 laws of 2012, is amended to read as follows: 18 d. The board, which shall become effective upon appointment of a 19 majority of public members, shall terminate [three] four years from its 20 date of creation. The board shall propose, no less than one hundred 21 eighty days prior to its termination, recommendations to the governor 22 and the state legislature representing a statutory plan for the prospec- 23 tive not-for-profit governing structure of The New York Racing Associ- 24 ation, Inc. 25 § 2. This act shall take effect immediately. 26 PART QQ 27 Intentionally Omitted 28 PART RR 29 Section 1. Subdivision 2 of section 187-b of the tax law, as amended 30 by section 1 of part G of chapter 59 of the laws of 2013, is amended to 31 read as follows: 32 2. (a) Alternative fuel vehicle refueling property and electric vehi- 33 cle recharging property. The credit under this section for alternative 34 fuel vehicle refueling and electric vehicle recharging property shall 35 equal for each installation of property the lesser of five thousand 36 dollars or the product of fifty percent [of the cost of any such proper-37ty:38(a) which is] and the cost of any such property less any costs paid 39 from the proceeds of grants. 40 (b) To qualify for the credit, the property must: 41 (i) be located in this state; 42 [(b) which constitutes] (ii) constitute alternative fuel vehicle refu- 43 eling property or electric vehicle recharging property; and 44 [(c) for which none of the cost has been] (iii) not be paid for from 45 the proceeds of grants awarded before January first, two thousand 46 fifteen, including grants from the New York state energy research and 47 development authority or the New York power authority.S. 2009--B 78 A. 3009--B 1 § 2. Paragraph (b) of subdivision 30 of section 210-B of the tax law, 2 as added by section 17 of part A of chapter 59 of the laws of 2014, is 3 amended to read as follows: 4 (b) (i) Alternative fuel vehicle refueling property and electric vehi- 5 cle recharging property. The credit under this subdivision for alterna- 6 tive fuel vehicle refueling property and electric vehicle recharging 7 property shall equal for each installation of property the lesser of 8 five thousand dollars or the product of fifty percent [of the cost of9any such property:10(i) which is] and the cost of any such property less any costs paid 11 from the proceeds of grants. 12 (ii) To qualify for the credit, the property must: 13 (A) be located in this state; 14 [(ii) which constitutes] (B) must constitute alternative fuel vehicle 15 refueling property or electric vehicle recharging property; and 16 [(iii) for which none of the cost has been] (C) not be paid for from 17 the proceeds of grants awarded before January first, two thousand 18 fifteen, including grants from the New York state energy research and 19 development authority or the New York power authority. 20 § 3. Paragraph 2 of subsection (p) of section 606 of the tax law, as 21 amended by section 3 of part G of chapter 59 of the laws of 2013, is 22 amended to read as follows: 23 (2) (a) Alternative fuel vehicle refueling property and electric vehi- 24 cle recharging property. The credit under this subsection for alterna- 25 tive fuel vehicle refueling property or electric vehicle recharging 26 property shall equal for each installation of property the lesser of 27 five thousand dollars or the product of fifty percent [of the cost of28any such property29(A) which is] and the cost of any such property less any costs paid 30 from the proceeds of grants. 31 (b) To qualify for the credit, the property must: 32 (i) be located in this state; 33 [(B) which constitutes] (ii) constitute alternative fuel vehicle refu- 34 eling property or electric vehicle recharging property; and 35 [(C) for which none of the cost has been] (iii) not be paid for from 36 the proceeds of grants awarded before January first, two thousand 37 fifteen, including grants from the New York state energy research and 38 development authority or the New York power authority. 39 § 4. This act shall take effect immediately, and shall apply to taxa- 40 ble years beginning on or after January 1, 2015. 41 PART SS 42 Section 1. Section 1115 of the tax law is amended by adding a new 43 subdivision (jj) to read as follows: 44 (jj) Notwithstanding any other provision of this article: (1) Receipts 45 in excess of two hundred thirty thousand dollars from every sale of, and 46 consideration given or contracted to be given for, or for the use of, a 47 vessel shall be exempt from the taxes imposed by this article. For 48 purposes of this subdivision, "vessel" shall have the same meaning as 49 such term is defined in section twenty-two hundred fifty of the vehicle 50 and traffic law and any outboard motor or trailer, as defined in section 51 one hundred fifty-six of such law, when sold in conjunction with such 52 vessel. 53 (2) For purposes of subdivision (b) of section eleven hundred eleven 54 of this article, the purchase price, current market value, or fairS. 2009--B 79 A. 3009--B 1 rental value, as the case may be, of a vessel purchased by a resident of 2 New York state outside of this state for use outside of this state that 3 subsequently becomes subject to the compensating use tax imposed under 4 this article shall be deemed not to exceed two hundred thirty thousand 5 dollars. 6 (3) For purposes of subdivision (i) of section eleven hundred eleven 7 of this article, receipts from, or consideration given or contracted to 8 be given for, the lease of a vessel that is subject to such subdivision 9 (i) in excess of two hundred thirty thousand dollars shall be exempt 10 from the calculation of tax due under such subdivision (i). 11 (4) For purposes of paragraph one of subdivision (q) of section eleven 12 hundred eleven of this article, the limitations on exclusions from the 13 definition of retail sale in paragraph one of such subdivision shall 14 apply only to the first two hundred thirty thousand dollars of receipts 15 from every sale of, or consideration given or contracted to be given 16 for, or for the use of, a vessel. 17 (5) For purposes of paragraph two of subdivision (q) of section eleven 18 hundred eleven of this article, the purchase price or market value, as 19 the case may be, of a vessel subject to tax under paragraph two of such 20 subdivision (q) shall be deemed not to exceed two hundred thirty thou- 21 sand dollars. 22 (6) For purposes of subdivision two of section eleven hundred eighteen 23 of this article, the limitation on the exclusion from compensating use 24 tax in such subdivision two with respect to qualified property, as 25 defined in such subdivision, shall apply only to the first two hundred 26 thirty thousand dollars of consideration given or contracted to be given 27 for, or for the use of, a vessel. 28 (7) For purposes of paragraph (a) of subdivision seven of section 29 eleven hundred eighteen of this article, the refund or credit allowable 30 under paragraph (a) of such subdivision seven shall be computed only 31 with regard to tax legally due and paid to another state on the first 32 two hundred thirty thousand dollars of the purchase price. 33 (8) Except as otherwise provided herein, this subdivision shall not be 34 deemed to limit any other exemption, exclusion or credit in this article 35 relating to a vessel. 36 § 2. Section 1118 of the tax law is amended by adding new subdivision 37 13 to read as follows: 38 (13) In respect to the use within the state of a vessel, as defined in 39 section twenty-two hundred fifty of the vehicle and traffic law, until 40 the first of the following events occur: 41 (a) the use of such vessel within this state by the purchaser thereof 42 for a period in excess of ninety consecutive days; 43 (b) the date upon which such vessel is first required to be registered 44 pursuant to section twenty-two hundred fifty-one of the vehicle and 45 traffic law; or 46 (c) the date upon which such vessel is so registered. 47 § 3. This act shall take effect June 1, 2015 and shall apply in 48 accordance with the applicable transitional provisions in sections 1106 49 and 1217 of the tax law. 50 PART TT 51 Section 1. Paragraph (A) of subdivision (i) of section 1111 of the tax 52 law, as amended by chapter 20 of the laws of 1992, is amended to read as 53 follows:S. 2009--B 80 A. 3009--B 1 (A) Notwithstanding any contrary provisions of this article or other 2 law, with respect to any lease for a term of one year or more of (1) a 3 motor vehicle, as defined in section one hundred twenty-five of the 4 vehicle and traffic law, with a gross vehicle weight of ten thousand 5 pounds or less, or (2) a vessel, as defined in section twenty-two 6 hundred fifty of such law (including any inboard or outboard motor and 7 any trailer, as defined in section one hundred fifty-six of such law, 8 leased in conjunction with such a vessel) [and (3) noncommercial9aircraft having a seating capacity of less than twenty passengers and a10maximum payload capacity of less than six thousand pounds], or an option 11 to renew such a lease or a similar contractual provision, all receipts 12 due or consideration given or contracted to be given for such property 13 under and for the entire period of such lease, option to renew or simi- 14 lar provision, or combination of them, shall be deemed to have been paid 15 or given and shall be subject to tax, and any such tax due shall be 16 collected, as of the date of first payment under such lease, option to 17 renew or similar provision, or combination of them, or as of the date of 18 registration of such property with the commissioner of motor vehicles, 19 whichever is earlier. Notwithstanding any inconsistent provisions of 20 subdivision (b) of this section or of section eleven hundred seventeen 21 of this article or of other law, for purposes of such a lease, option to 22 renew or similar provision originally entered into outside this state, 23 by a lessee (1) who was a resident of this state, and leased such prop- 24 erty for use outside the state and who subsequently brings such property 25 into this state for use here or (2) who was a nonresident and subse- 26 quently becomes a resident and brings the property into this state for 27 use here, any remaining receipts due or consideration to be given after 28 such lessee brings such property into this state shall be subject to tax 29 as if the lessee had entered into or exercised such lease, option to 30 renew or similar provision, or combination thereof, for the first time 31 in this state and the relevant provisions of sections eleven hundred ten 32 concerning imposition and computation of tax, eleven hundred eighteen 33 concerning exemption from use tax for tax paid to another jurisdiction, 34 eleven hundred thirty-two concerning presumption of taxability and 35 conditions for registration and eleven hundred thirty-nine concerning 36 refunds, of this article, shall be applicable to any sales or compensat- 37 ing use tax paid by the lessee before the lessee brought the property 38 into this state, except to the extent that any such provision is incon- 39 sistent with a provision of this subdivision. For purposes of this 40 subdivision, (1) a lease for a term of one year or more shall include 41 any lease for a shorter term which includes an option to renew or other 42 like provision (or more than one of such option or other provision) 43 where the cumulative period that the lease, with or without such option 44 or provision, may be in effect upon exercise of such option or provision 45 is one year or more and (2) receipts due and consideration given or 46 contracted to be given under any such lease or other provision for 47 excess mileage charges shall be subject to tax as and when paid or due. 48 § 2. Subdivision (q) of section 1111 of the tax law, as added by 49 section 3 of subpart B of part S of chapter 57 of the laws of 2010, is 50 amended to read as follows: 51 (q) (1) The exclusions from the definition of retail sale in subpara- 52 graph (iv) of paragraph four of subdivision (b) of section eleven 53 hundred one of this article shall not apply to transfers, distributions, 54 or contributions of [an aircraft or] a vessel, except where, in the case 55 of the exclusion in subclause (I) of clause (A) of such subparagraph 56 (iv), the two corporations to be merged or consolidated are not affil-S. 2009--B 81 A. 3009--B 1 iated persons with respect to each other. For purposes of this subdivi- 2 sion, corporations are affiliated persons with respect to each other 3 where (i) more than five percent of their combined shares are owned by 4 members of the same family, as defined by paragraph four of subsection 5 (c) of section two hundred sixty-seven of the internal revenue code of 6 nineteen hundred eighty-six; (ii) one of the corporations has an owner- 7 ship interest of more than five percent, whether direct or indirect, in 8 the other; or (iii) another person or a group of other persons that are 9 affiliated persons with respect to each other hold an ownership interest 10 of more than five percent, whether direct or indirect, in each of the 11 corporations. 12 (2) Notwithstanding any contrary provision of law, in relation to any 13 transfer, distribution, or contribution of [an aircraft or] a vessel 14 that qualifies as a retail sale as a result of paragraph one of this 15 subdivision, the sales tax imposed by subdivision (a) of section eleven 16 hundred five of this part shall be computed based on the price at which 17 the seller purchased the tangible personal property, provided that where 18 the seller or purchaser affirmatively shows that the seller owned the 19 property for six months prior to making the transfer, distribution or 20 contribution covered by paragraph one of this subdivision, such 21 [aircraft or] vessel shall be taxed on the basis of the current market 22 value of the [aircraft or] vessel at the time of that transfer, distrib- 23 ution, or contribution. For the purposes of the prior sentence, "current 24 market value" shall not exceed the cost of the [aircraft or] vessel. See 25 subdivision (b) of this section for a similar rule on the computation of 26 any compensating use tax due under section eleven hundred ten of this 27 part on such transfers, distributions, or contributions. 28 (3) A purchaser of [an aircraft or] a vessel covered by paragraph one 29 of this subdivision will be entitled to a refund or credit against the 30 sales or compensating use tax due as a result of a transfer, distrib- 31 ution, or contribution of such [aircraft or] vessel in the amount of any 32 sales or use tax paid to this state or any other state on the seller's 33 purchase or use of the [aircraft or] vessel so transferred, distributed 34 or contributed, but not to exceed the tax due on the transfer, distrib- 35 ution, or contribution of the [aircraft or] vessel or on the purchaser's 36 use in the state of the [aircraft or] vessel so transferred, distributed 37 or contributed. An application for a refund or credit under this subdi- 38 vision must be filed and shall be in such form as the commissioner may 39 prescribe. Where an application for credit has been filed, the applicant 40 may immediately take such credit on the return which is due coincident 41 with or immediately subsequent to the time the application for credit is 42 filed. However, the taking of the credit on the return shall be deemed 43 to be part of the application for credit. Provided that the commission- 44 er may, in his or her discretion and notwithstanding any other law, 45 waive the application requirement for any or all classes of persons 46 where the amount of the credit or refund is equal to the amount of the 47 tax due from the purchaser. The provisions of subdivisions (a), (b), and 48 (c) of section eleven hundred thirty-nine of this article shall apply to 49 applications for refund or credit under this subdivision. No interest 50 shall be allowed or paid on any refund made or credit allowed under this 51 subdivision. If a refund is granted or a credit allowed under this para- 52 graph, the seller or purchaser shall not be eligible for a refund or 53 credit pursuant to subdivision seven of section eleven hundred eighteen 54 of this article with regard to the same purchase or use. 55 § 3. Subdivision (a) of section 1115 of the tax law is amended by 56 adding a new paragraph 21-a to read as follows:S. 2009--B 82 A. 3009--B 1 (21-a) General aviation aircraft, and machinery or equipment to be 2 installed on such aircraft. For purposes of this subdivision, "general 3 aviation aircraft" means an aircraft that is used in civil aviation, 4 that is not a commercial aircraft as defined in paragraph seventeen of 5 subdivision (b) of section eleven hundred one of this article, military 6 aircraft, unmanned aerial vehicle or drone. 7 § 4. This act shall take effect September 1, 2015, and shall apply in 8 accordance with applicable transitional provisions of sections 1106 and 9 1217 of the tax law. 10 PART UU 11 Section 1. Section 1115 of the tax law is amended by adding a new 12 subdivision (jj) to read as follows: 13 (jj) Tangible personal property or services otherwise taxable under 14 this article sold to a related person shall not be subject to the taxes 15 imposed by section eleven hundred five of this article or the compensat- 16 ing use tax imposed under section eleven hundred ten of this article 17 where the purchaser can show that the following conditions have been met 18 to the extent they are applicable: (1)(i) the vendor and the purchaser 19 are referenced as either a "covered company" as described in section 20 243.2(f) or a "material entity" as described in section 243.2(l) of the 21 Code of Federal Regulations in a resolution plan that has been submitted 22 to an agency of the United States for the purpose of satisfying subpara- 23 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 24 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 25 successor law, or (ii) the vendor and the purchaser are separate legal 26 entities pursuant to a divestiture directed pursuant to subparagraph 5 27 of paragraph (d) of section one hundred sixty-five of such act or any 28 successor law; (2) the sale would not have occurred between such related 29 entities were it not for such resolution plan or divestiture; and (3) in 30 acquiring such property or services, the vendor did not claim an 31 exemption from the tax imposed by this state or another state based on 32 the vendor's intent to resell such services or property. A person is 33 related to another person for purposes of this subdivision if the person 34 bears a relationship to such person described in section two hundred 35 sixty-seven of the internal revenue code. The exemption provided by this 36 subdivision shall not apply to sales made, services rendered, or uses 37 occurring after June thirtieth, two thousand nineteen, except with 38 respect to sales made, services rendered, or uses occurring pursuant to 39 binding contracts entered into on or before such date; but in no case 40 shall such exemption apply after June thirtieth, two thousand twenty- 41 four. 42 § 2. This act shall take effect on the first day of a sales tax quar- 43 terly period, as described in subdivision (b) of section 1136 of the tax 44 law, next commencing at least ninety days after the date this act shall 45 have become a law and shall apply in accordance with the applicable 46 transitional provisions of sections 1106 and 1217 of the tax law. 47 PART VV 48 Section 1. The opening paragraph of subdivision 7 of section 221 of 49 the racing, pari-mutuel wagering and breeding law, as amended by chapter 50 18 of the laws of 2008, is amended to read as follows: 51 In order to pay the costs of the insurance required by this section 52 and by the workers' compensation law and to carry out its other powersS. 2009--B 83 A. 3009--B 1 and duties and to pay for any of its liabilities under section four- 2 teen-a of the workers' compensation law, the New York Jockey Injury 3 Compensation Fund, Inc. shall ascertain the total funding necessary and 4 establish the sums that are to be paid by all owners and trainers 5 licensed or required to be licensed under section two hundred twenty of 6 this article, to obtain the total funding amount required annually. In 7 order to provide that any sum required to be paid by an owner or trainer 8 is equitable, the fund shall establish payment schedules which reflect 9 such factors as are appropriate, including where applicable, the 10 geographic location of the racing corporation at which the owner or 11 trainer participates, the duration of such participation, the amount of 12 any purse earnings, the number of horses involved, or such other factors 13 as the fund shall determine to be fair, equitable and in the best inter- 14 ests of racing. In no event shall the amount deducted from an owner's 15 share of purses exceed [one] two per centum. The amount deducted from an 16 owner's share of purses shall not exceed one per centum after April 17 first, two thousand seventeen. In the cases of multiple ownerships and 18 limited racing appearances, the fund shall equitably adjust the sum 19 required. 20 § 2. This act shall take effect immediately. 21 PART WW 22 Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- 23 sion b of section 1612 of the tax law, as amended by section 1 of part Z 24 of chapter 59 of the laws of 2014, is amended to read as follows: 25 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- 26 agraph, when a vendor track, is located in Sullivan county and within 27 sixty miles from any gaming facility in a contiguous state such vendor 28 fee shall, for a period of [seven] eight years commencing April first, 29 two thousand eight, be at a rate of forty-one percent of the total 30 revenue wagered at the vendor track after payout for prizes pursuant to 31 this chapter, after which time such rate shall be as for all tracks in 32 clause (C) of this subparagraph. 33 § 2. This act shall take effect immediately and shall be deemed to 34 have been in full force and effect on and after April 1, 2015. 35 PART XX 36 Section 1. Subdivision 1 of section 1012 of the racing, pari-mutuel 37 wagering and breeding law, as amended by chapter 174 of the laws of 38 2013, is amended to read as follows: 39 1. Racing associations and corporations, franchised corporations, 40 off-track betting corporations and multi-jurisdictional account wagering 41 providers may form partnerships, joint ventures, or any other affil- 42 iations or contractual arrangement in order to further the purposes of 43 this section. Multi-jurisdictional account wagering providers involved 44 in such joint affiliations or contractual arrangements shall follow the 45 same distributional policy with respect to retained commissions as 46 [their in-state affiliate or contractual partner] a multi-jurisdictional 47 account wagering provider defined in this article. 48 § 2. Section 1012 of the racing, pari-mutuel wagering and breeding law 49 is amended by adding a new subdivision 1-a to read as follows: 50 1-a. Notwithstanding any provision to the contrary, any multi-juris- 51 dictional account wagering providers involved in such joint affiliations 52 or contractual arrangements authorized in subdivision one of thisS. 2009--B 84 A. 3009--B 1 section which was entered into on or before the first of January, two 2 thousand fourteen may continue to follow the same distributional policy 3 with respect to retained commissions as their in-state affiliate or 4 contractual partner through the thirty-first of December, two thousand 5 sixteen. 6 § 3. This act shall take effect immediately; provided, however, that 7 the provisions of section two of this act shall expire January 1, 2017 8 when upon such date the provisions of such section shall be deemed 9 repealed. 10 PART YY 11 Section 1. Paragraph 4 of subsection (b) of section 800 of the tax 12 law, as added by section 1 of part B of chapter 56 of the laws of 2011, 13 is amended to read as follows: 14 (4) Any eligible educational institution. An "eligible educational 15 institution" shall mean any public school district, a board of cooper- 16 ative educational services, a public elementary or secondary school, a 17 school approved pursuant to article eighty-five or eighty-nine of the 18 education law to serve students with disabilities of school age, or a 19 nonpublic elementary or secondary school that provides instruction in 20 grade one or above, all public library systems as defined in subdivision 21 one of section two hundred seventy-two of the education law, and all 22 public and free association libraries as such terms are defined in 23 subdivision two of section two hundred fifty-three of the education law. 24 § 2. This act shall take effect immediately and apply to taxable peri- 25 ods beginning on or after January 1, 2016. 26 PART ZZ 27 Section 1. Section 19 of part CC of a chapter of the laws of 2015 28 amending the vehicle and traffic law relating to directing the city of 29 Buffalo to adjudicate traffic infractions, as proposed in legislative 30 bill numbers S.2008-B and A.3008-B, is amended to read as follows: 31 § 19. This act shall take effect on [May] July 1, 2015; provided, 32 however, that effective immediately the city of Buffalo is authorized to 33 enact a local law establishing a traffic violations agency in the city 34 of Buffalo; provided, however, that the provisions of sections four and 35 five of this act shall take effect on the same date as the enactment of 36 such local law, herein authorized, establishing a traffic violations 37 agency; provided, further, that if established, such agency and the city 38 of Buffalo shall comply with all the provisions of law set forth in this 39 act; provided, however, that the amendments made to section 371 of the 40 general municipal law, made by sections six, seven and eight of this 41 act, shall not affect the expiration of such section and be deemed to 42 expire therewith; and provided, further, that the city of Buffalo shall 43 notify the legislative bill drafting commission upon the occurrence of 44 the enactment of the local law provided for in this section in order 45 that the commission may maintain an accurate and timely effective data 46 base of the official text of the laws of the state of New York in furth- 47 erance of effectuating the provisions of section 44 of the legislative 48 law and section 70-b of the public officers law. 49 § 2. This act shall take effect on the same date as such chapter of 50 the laws of 2015 takes effect. 51 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 52 sion, section or part of this act shall be adjudged by any court ofS. 2009--B 85 A. 3009--B 1 competent jurisdiction to be invalid, such judgment shall not affect, 2 impair, or invalidate the remainder thereof, but shall be confined in 3 its operation to the clause, sentence, paragraph, subdivision, section 4 or part thereof directly involved in the controversy in which such judg- 5 ment shall have been rendered. It is hereby declared to be the intent of 6 the legislature that this act would have been enacted even if such 7 invalid provisions had not been included herein. 8 § 3. This act shall take effect immediately provided, however, that 9 the applicable effective date of Parts A through ZZ of this act shall be 10 as specifically set forth in the last section of such Parts.