STATE OF NEW YORK
________________________________________________________________________
3760
2011-2012 Regular Sessions
IN ASSEMBLY
January 27, 2011
___________
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a downtown
revitalization zone jobs credit against the franchise tax on business
corporations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 187-q to
2 read as follows:
3 § 187-q. Downtown revitalization zone jobs credit. 1. Allowance of
4 credit. A taxpayer shall be allowed a credit, to be computed as provided
5 in this section, against the tax imposed by this article where the
6 taxpayer has been certified pursuant to article eighteen-B of the gener-
7 al municipal law. The amount of such credit shall be as prescribed in
8 subdivision four of this section.
9 2. Definitions. For purposes of this subdivision, the following terms
10 shall have the following meanings:
11 (a) "Downtown revitalization zone wages" means wages paid by the
12 taxpayer for full-time employment, other than to general executive offi-
13 cers, during the taxable year in an area designated or previously desig-
14 nated as a downtown revitalization zone or zone equivalent area pursuant
15 to article eighteen-B of the general municipal law where such employment
16 is in a job created in the area (1) during the period of its designation
17 as a downtown revitalization zone or zone equivalent area, (2) within
18 four years of the expiration of such designation, or (3) during the ten
19 year period immediately following the date of designation as a zone
20 equivalent area, provided, however, that if the taxpayer's certification
21 under article eighteen-B of the general municipal law is revoked with
22 respect to the designation as a downtown revitalization zone or zone
23 equivalent area, any wages paid by the taxpayer, on or after the effec-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05995-01-1
A. 3760 2
1 tive date of such decertification, for employment in such zone shall not
2 constitute downtown revitalization zone wages.
3 (b) "Targeted employee" means a resident of the state who receives
4 downtown revitalization zone wages and who is (1) an eligible individual
5 under the provisions of the targeted jobs tax credit (section fifty-one
6 of the internal revenue code), (2) eligible for benefits under the
7 provisions of the job training partnership act (P.L. 97-300, as
8 amended), (3) a recipient of public assistance benefits or (4) an indi-
9 vidual whose income is below the most recently established poverty rate
10 promulgated by the United States department of commerce, or a member of
11 a family whose family income is below the most recently established
12 poverty rate promulgated by the appropriate federal agency.
13 An individual who satisfies the criteria set forth in subparagraph
14 one, two or four of this paragraph at the time of initial employment in
15 the job with respect to which the credit is claimed, or who satisfies
16 the criterion set forth in subparagraph three of this paragraph at such
17 time or at any time within the previous two years, shall be a targeted
18 employee so long as such individual continues to receive downtown revi-
19 talization zone wages.
20 (c) "Average number of individuals, excluding general executive offi-
21 cers, employed full-time" shall mean the number of such individuals
22 employed by the taxpayer on the thirty-first day of March, the thirtieth
23 day of June, the thirtieth day of September and the thirty-first day of
24 December during each taxable year or other applicable period, by adding
25 together the number of such individuals ascertained on each of such date
26 and dividing the sum so obtained by the number of such individuals
27 ascertained on each of such date and dividing the sum so obtained by the
28 number of such dates occurring within such taxable year or other appli-
29 cable period.
30 3. Eligibility for credit. The credit provided for in this section
31 shall be allowed only where the average number of individuals, excluding
32 general executive officers, employed full-time by the taxpayer in the
33 state and in the downtown revitalization zone or zone area previously
34 constituting such zone or zone equivalent area, during the taxable year
35 exceeds the average number of such individuals employed full-time by the
36 taxpayer in the state and in such zone or area subsequently or previous-
37 ly constituting such zone or such zone equivalent area, respectively,
38 during the four years immediately preceding the first taxable year in
39 which the credit is claimed with respect to such zone or area. Where
40 the taxpayer provided full-time employment within the state or in such
41 zone or area during only a portion of such four-year period, then for
42 purposes of this subdivision the term "four years" shall be deemed to
43 refer instead to such portion, if any.
44 The credit shall be allowed only with respect to the first taxable
45 year during which payments of downtown revitalization zone wages are
46 made and the conditions set forth in this subdivision are satisfied, and
47 with respect to each of the four taxable years next following (but only,
48 with respect to each of such years, if such conditions are satisfied),
49 in accordance with subdivision four of this section. Subsequent certif-
50 ications of the taxpayer pursuant to article eighteen-B of the general
51 municipal law, at the same or a different location in the same downtown
52 revitalization zone or zone equivalent area, or at a location in a
53 different downtown revitalization zone or zone equivalent area, shall
54 not extend the five taxable year time limitation on the allowance of the
55 credit set forth in the preceding sentence. Provided, further, that no
56 credit shall be allowed with respect to any taxable year beginning more
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1 than four years following the taxable year in which designation as a
2 downtown revitalization zone expired or more than ten years after the
3 designation as a zone equivalent area.
4 4. Calculation of credit. (a) The amount of the credit shall equal the
5 sum of:
6 (1) the product of three thousand dollars and the average number of
7 individuals, excluding general executive officers, employed full-time by
8 the taxpayer, who:
9 (i) received downtown revitalization zone wages for more than half of
10 the taxable year,
11 (ii) received, with respect to more than half of the period of employ-
12 ment by the taxpayer during the taxable year, an hourly wage which was
13 at least one hundred thirty-five percent of the minimum wage specified
14 in section six hundred fifty-two of the labor law, and
15 (iii) are targeted employees; and
16 (2) the product of fifteen hundred dollars and the average number of
17 individuals, excluding general executive officers and individuals,
18 employed full-time by the taxpayer who received downtown revitalization
19 zone wages for more than half of the taxable year.
20 (b) For purposes of calculating the amount of the credit, individuals
21 employed within a downtown revitalization zone or zone equivalent area
22 within the immediately preceding sixty months by a related person, as
23 such term is defined in subparagraph (c) of paragraph three of
24 subsection (b) of section four hundred sixty-five of the internal reven-
25 ue code, shall not be included in the average number of individuals
26 described in paragraph (a) of this subdivision, unless such related
27 person was never allowed a credit under this subdivision with respect to
28 such employees.
29 Provided, further, that the credit provided for in this section with
30 respect to the taxable year, and carryovers of such credit to the taxa-
31 ble year, deducted from the tax otherwise due, shall not, in the aggre-
32 gate, exceed fifty percent of the tax imposed under section fourteen
33 hundred fifty-five of this chapter computed without regard to any credit
34 provided for under this article.
35 5. Carryovers. The credit and carryovers of such credit allowed under
36 this section for any taxable year shall not, in the aggregate, reduce
37 the tax due for such year to less than the minimum tax fixed by
38 subsection (b) of section fourteen hundred fifty-five of this chapter.
39 However, if the amount of credit or carryovers of such credit, or both,
40 allowed under this section for any taxable year reduces the tax to such
41 amount, or if any part of the credit or carryovers of such credit shall
42 not be deducted from the tax otherwise due by reason of any amount of
43 credit or carryovers of such credit thus not deductible in such taxable
44 year may be carried over to the following year or years and may be
45 deducted from the taxpayer's tax for such year or years.
46 § 2. This act shall take effect on the first of January next succeed-
47 ing the date on which it shall have become a law and shall apply to
48 taxable years commencing on or after such effective date.
