Add Art 18 SS360 - 369, Ec Dev L; add S485-n, RPT L; amd SS186-a, 210 & 606, Tax L
Enacts the New York state academic collaborative district act; establishes criteria for academic collaborative designation and the application for academic collaborative district designation; establishes procedure to terminate or revise an academic collaborative district; creates academic collaborative district tax exemptions.
STATE OF NEW YORK
________________________________________________________________________
4361
2011-2012 Regular Sessions
IN ASSEMBLY
February 3, 2011
___________
Introduced by M. of A. MORELLE, ORTIZ, HOYT, SCARBOROUGH, V. LOPEZ,
CYMBROWITZ, MILLMAN -- Multi-Sponsored by -- M. of A. ABBATE, AUBRY,
CAHILL, CLARK, COLTON, COOK, DESTITO, ROBINSON, SWEENEY, TOWNS, WRIGHT
-- read once and referred to the Committee on Economic Development
AN ACT to amend the economic development law, the real property tax law
and the tax law, in relation to authorizing the creation of academic
collaborative districts within the state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The economic development law is amended by adding a new
2 article 18 to read as follows:
3 ARTICLE 18
4 NEW YORK STATE ACADEMIC COLLABORATIVE DISTRICTS ACT
5 Section 360. Short title.
6 361. Legislative findings and intent.
7 362. Definitions.
8 363. Criteria for academic collaborative district designation.
9 364. Responsibilities of the commissioner.
10 365. Rescinding of local incentives.
11 366. Designation of academic collaborative districts.
12 367. Application for academic collaborative district desig-
13 nation.
14 368. Academic collaborative district development plan.
15 369. Termination or revision of an academic collaborative
16 district.
17 § 360. Short title. This act shall be known and may be cited as the
18 "New York state academic collaborative districts act".
19 § 361. Legislative findings and intent. The legislature finds and
20 declares that higher education institutions in New York state are among
21 the fastest growing sectors of the state's economy. It is further found
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05541-02-1
A. 4361 2
1 and declared that these institutions attract a substantial amount of
2 federal research and development funds that come into New York state,
3 and that these institutions are home to world-class researchers and
4 research facilities. Finally, it is found and declared that collab-
5 oration between higher education institutions and businesses will stimu-
6 late private investment, private business development and job creation.
7 It is the public policy of the state to offer special incentives and
8 assistance that will support these collaborations with the goal of
9 development of new businesses, expansion of existing businesses, and the
10 development of human resources within and near existing empire zones and
11 to do so without encouraging the relocation of business investment from
12 other areas of the state. It is further found and declared that it is
13 public policy of the state to achieve these goals through the mutual
14 cooperation of all levels of state and local government and the business
15 community.
16 § 362. Definitions. As used in this article, the following words and
17 terms shall have the following meanings unless the context shall indi-
18 cate another or different meaning or intent:
19 (a) "Applicant" shall mean the county, city, town or village submit-
20 ting an application in the manner authorized by local law for desig-
21 nation of an area as an academic collaborative district.
22 (b) "College" shall mean universities and other institutions for high-
23 er education, as such term is defined in section two of the education
24 law, authorized to confer degrees by the board of regents of the state
25 of New York.
26 (c) "Minority-owned business enterprise" shall mean a business enter-
27 prise, including a sole proprietorship, partnership or corporation, that
28 is:
29 (i) at least fifty-one percent owned by one or more minority group
30 members;
31 (ii) an enterprise in which such minority ownership is real, substan-
32 tial and continuing;
33 (iii) an enterprise in which such minority ownership has and exercises
34 the authority to control independently the day-to-day business decisions
35 of the enterprise; and
36 (iv) an enterprise authorized to do business in this state and inde-
37 pendently owned and operated.
38 (d) "Academic collaborative district" shall mean an area within the
39 state that has been designated as an academic collaborative district
40 pursuant to this article.
41 (e) "Women-owned business enterprise" shall mean a business enter-
42 prise, including a sole proprietorship, partnership or corporation, that
43 is:
44 (i) at least fifty-one percent owned by one or more United States
45 citizens or permanent resident aliens who are women;
46 (ii) an enterprise in which the ownership interest of such women is
47 real, substantial and continuing;
48 (iii) an enterprise in which such women ownership has and exercises
49 the authority to control independently the day-to-day business decisions
50 of the enterprise; and
51 (iv) an enterprise authorized to do business in this state and inde-
52 pendently owned and operated.
53 (f) "Locally owned business enterprise" shall mean a business firm in
54 which the total ownership interest held by individuals who are full time
55 bona fide residents of such district is more than eighty percent, whose
56 business activities are conducted in a manner whereby at least fifty
A. 4361 3
1 percent of the assets of such firm are located and utilized in such
2 district, and at least forty percent of such firm's employees are prin-
3 cipally employed in such district; provided however, for business firms
4 located within districts designated in a city such individuals shall
5 reside within a community planning board or within traditional neighbor-
6 hood boundaries and provided further however for business firms located
7 within districts outside of a city such individuals may reside in the
8 county in which the district is designated.
9 (g) "Chief executive" shall mean (i) a county executive or manager of
10 a county; (ii) in a county not having a county executive or manager, the
11 chairperson or other presiding officer of the county legislative body;
12 (iii) a mayor of a city or village, except where a city or village has a
13 manager, it shall mean such a manager; or (iv) a supervisor of a town,
14 except where a town has a manager, it shall mean such manager.
15 (h) "Minority group member" shall mean a United States citizen or
16 permanent resident alien who is and can demonstrate membership in one of
17 the following groups:
18 (i) Black persons having origins in any of the Black African racial
19 groups;
20 (ii) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban,
21 Central or South American of either Indian or Hispanic origin, regard-
22 less of race;
23 (iii) Native American or Alaskan native persons having origins in any
24 of the original peoples of North America; and
25 (iv) Asian and Pacific Islander persons having origins in any of the
26 Far East countries, South East Asia, the Indian subcontinent or the
27 Pacific Islands.
28 (i) "Commissioner" shall mean the commissioner of economic develop-
29 ment.
30 (j) "Single enterprise" means two or more related business enterprises
31 characterized by an absence of arms length relationships found among
32 enterprises that are not integrated. Factors to be considered, among
33 other things, in determining the existence of a single enterprise are
34 interrelation of operations, common management, centralized control of
35 labor relations, common ownership and common financial control.
36 (k) "Human resource development" shall mean job preparation and place-
37 ment, skills training and education for district residents and employees
38 of district businesses, child and family care services and facilities,
39 and activities to improve the health benefits and other benefits
40 provided by district businesses to their employees.
41 § 363. Criteria for academic collaborative district designation. To be
42 eligible for designation as an academic collaborative district, an area
43 must be on an existing college owned property and the boundaries of such
44 property shall be co-terminus with the property of the college.
45 § 364. Responsibilities of the commissioner. The commissioner shall:
46 (a) Receive and review applications for designation of areas as
47 academic collaborative districts;
48 (b) Make recommendations to the academic collaborative districts
49 designation board, as established in section three hundred sixty-six of
50 this article, for designation of areas as academic collaborative
51 districts, provided, however, that all such areas recommended by the
52 commissioner shall meet the requirements of this article;
53 (c) Review new applications to replace any previously designated
54 academic collaborative district the designation of which has been termi-
55 nated or withdrawn;
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1 (d) File notice of the designation or redesignation of an academic
2 collaborative district or of the revision or termination of such desig-
3 nation with the applicant, the department of taxation and finance, the
4 secretary of state, with the county, city, town or village clerk of each
5 county, city, town, or village, respectively, in which the academic
6 collaborative district is located, with the school district governing
7 body in which the academic collaborative district is located, with the
8 commissioner of taxation and finance and with other state and local
9 entities; provided, however, that such notice shall specify the date
10 such action was taken and shall contain a description sufficient to
11 identify the academic collaborative district, including the names of the
12 abutting streets, roads, highways, bodies of water, or other identifying
13 physical features;
14 (e) Establish a priority for the allocation of authority to issue
15 private activity bonds for the benefit of municipalities and business
16 enterprises located or to be located within academic collaborative
17 districts;
18 (f) Coordinate with the comptroller and the commissioner of taxation
19 and finance a linked deposit program. The comptroller and the commis-
20 sioner of taxation and finance are hereby authorized and empowered to
21 enter into agreements with financial institutions located in or serving
22 the academic collaborative districts, to provide for the deposit of
23 funds administered jointly by them in such institutions, at reduced
24 rates of return to the state, in return for commitments by such insti-
25 tutions to businesses of loans of comparable amounts, at reduced inter-
26 est rates, for business development projects in the districts that will
27 create or preserve jobs.
28 (g) Review a plan submitted no later than December thirty-first, two
29 thousand thirteen, by the urban development corporation and the job
30 development authority, for extending to minority- or women-owned
31 contracting companies which are endeavoring to secure work on projects
32 in the districts, surety guarantees assistance and such other assistance
33 as may be required by such firms which currently is unavailable from
34 other sources.
35 (h) Promulgate regulations, in consultation with the commissioner of
36 labor, for program evaluation and coordinate implementation of an evalu-
37 ation system, which is capable of compiling and analyzing accurate and
38 consistent information necessary for an assessment of whether statutory
39 objectives and criteria are being met;
40 (i) Review performance objectives and progress in meeting objectives
41 with district boards and district administrative entities as part of the
42 annual administrative contract process;
43 (j) Assist districts in increasing their child care capacity and in
44 planning special care activities, including the provision of technical
45 assistance by the department in planning for the provision of child care
46 services in the districts;
47 (k) Coordinate with the department of labor, the state education
48 department, the job training partnership council and agencies of the
49 state the inclusion in annual and biennial plans of such entities' stra-
50 tegies for increasing and improving human resource development services
51 on a priority basis, consistent with federal statutory and regulatory
52 requirements, to residents of the districts and employees of district
53 businesses, including, but not limited to, the governor's plan for coor-
54 dination and special services of the job training partnership council,
55 the jobs plan and Wagner-Peyser annual plan for services of the depart-
A. 4361 5
1 ment of labor, and the career education state plan of the state educa-
2 tion department;
3 (l) Arrange with the job training partnership council the provision of
4 job training partnership act funds for use within the districts with the
5 cooperation of the service delivery areas in the governor's plan for
6 coordination and special services;
7 (m) Subject to the availability of funds, arrange for the allocation
8 and reservation of funds from the infrastructure improvement programs of
9 state agencies and authorities to assist the districts to make public
10 improvements necessary for community, commercial, industrial and tourism
11 development projects in support of district revitalization;
12 (n) Systematically enlist other state agencies and authorities to
13 participate in district programs and projects and in cooperative plan-
14 ning of interagency district activities in support of district revitali-
15 zation efforts;
16 (o) Recommend for economic development loan and grant programs of the
17 department of economic development, urban development corporation, job
18 development authority, and science and technology foundation special
19 terms and conditions for viable district projects and programs;
20 (p) Award preference to be given to applications submitted by or on
21 behalf of districts for entrepreneurial assistance programs under arti-
22 cle nine of the omnibus economic development act of nineteen hundred
23 eighty-seven to support the creation of new entrepreneurial development
24 and entrepreneurial support centers;
25 (q) Review a program plan and guidelines submitted by the division of
26 minority and women's business development of the department of economic
27 development no later than March thirty-first, two thousand thirteen for
28 expedited review of applications by district businesses for certif-
29 ication as minority- or women-owned businesses;
30 (r) Review a program plan and guidelines submitted no later than March
31 thirty-first, two thousand thirteen by the job development authority for
32 extending to small businesses within the districts, subject to funds
33 availability, guarantees of performance bonds or bid bonds for
34 construction, service and manufacturing contracts with federal, state
35 and local government agencies and authorities, as well as the private
36 sector;
37 (s) Review a program plan submitted by the department of labor no
38 later than March thirty-first, two thousand thirteen for the establish-
39 ment by the department of a community service center, to the extent
40 practicable, in or immediately adjacent to each district;
41 (t) Coordinate with the urban development corporation the creation of
42 a special category of assistance for districts within the regional
43 economic development partnership program, which will make available
44 economic development assistance grants for district programs and activ-
45 ities, including, but not limited to, planning, service coordination,
46 and local institutional capacity building for human resource development
47 necessary for economic revitalization; planning and development of small
48 business incubators; job placement and preparedness programs for
49 districts residents; education and training programs for district busi-
50 nesses; child care programs and projects supportive of business develop-
51 ment; technical assistance for minority-owned and women-owned business
52 development; training for district officials; business and tourism
53 development and marketing programs; and other innovative programs and
54 activities in support of economic and community development within the
55 districts; and
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1 (u) Assist in the development of a plan, in coordination with the
2 health and insurance departments, to assist districts in obtaining
3 affordable employee health insurance for small business enterprises
4 located within the district.
5 § 365. Rescinding of local incentives. Should a certified business
6 enterprise in an academic collaborative district be decertified, any
7 local incentive provided by such municipality may be rescinded by local
8 law or resolution by the governing body of such municipality, notwith-
9 standing subdivision five of section four hundred eighty-five-l of the
10 real property tax law.
11 § 366. Designation of academic collaborative districts. (a) The
12 academic collaborative districts designation board is hereby created.
13 Such board shall consist of the commissioner of taxation and finance,
14 the director of the budget, five members to be appointed by the governor
15 (one of whom must be the president or chief executive officer of a non-
16 public college or university in New York state); three members to be
17 appointed by the temporary president of the senate; three members to be
18 appointed by the speaker of the assembly; one member to be appointed by
19 the minority leader of the senate and one member to be appointed by the
20 minority leader of the assembly. The governor shall designate from among
21 the voting members the chairman of the board.
22 (b) The academic collaborative districts designation board shall
23 designate from the recommendations made by the commissioner within eigh-
24 teen months after the effective date of this article, not more than
25 fifty academic collaborative districts. Twenty-five academic collabora-
26 tive districts shall be allocated to private colleges and twenty-five
27 academic collaborative districts shall be allocated to public colleges.
28 (c) In reviewing applications for designation of an area as an academ-
29 ic collaborative district, the board shall consider the level of local
30 participation including, but not limited to, local tax incentives and
31 the provision of local services.
32 (d) Notwithstanding any other provision of this article, such
33 districts designated, shall be, as far as practicable, equally distrib-
34 uted between urban, suburban and rural areas.
35 (e) The department of audit and control, the department of taxation
36 and finance, the department of economic development, and the legislative
37 commission on expenditure review shall prepare reports on the management
38 and the economic and fiscal impact of academic collaborative districts.
39 (f) In reviewing applications for designation of an area as an academ-
40 ic collaborative district, the board shall give priority to colleges
41 that:
42 (i) are located in counties in which the unemployment rate is higher
43 than the average unemployment rate for the entire state;
44 (ii) have the potential to create a significant number of new jobs;
45 and
46 (iii) shall use the results of basic research to create new commercial
47 applications of that research.
48 § 367. Application for academic collaborative district designation.
49 (a) (i) A college may prepare and submit an application to the commis-
50 sioner for designation of an area therein as an academic collaborative
51 district;
52 (ii) No application for designation of an area as an academic collabo-
53 rative district pursuant to this article shall be accepted unless the
54 applicant demonstrates that it has, to the maximum extent feasible,
55 solicited and considered the views of residents of the proposed
56 district, the views of state and local officials elected to represent
A. 4361 7
1 such residents and the local private organizations representing such
2 residents.
3 (b) Each application shall:
4 (i) be prepared in a manner and form prescribed by regulations promul-
5 gated by the commissioner, and the applicant college shall ensure that
6 the information contained in such application, to the maximum extent
7 possible, is accurate and complete;
8 (ii) include evidence of the adoption of an academic collaborative
9 district development plan by the local governing body of the area in
10 which the academic collaborative district is to be located;
11 (iii) include a map of the area comprising the proposed academic
12 collaborative district, showing existing streets, highways, waterways,
13 natural boundaries and other physical features;
14 (iv) include evidence that the applicant has, to the maximum extent
15 feasible, solicited and considered the views of residents of the
16 proposed academic collaborative district and the local governmental and
17 private organizations representing such residents;
18 (v) specify goals and objectives, both short term and long term, for
19 the proposed district;
20 (vi) identify financial commitments the applicant will make to the
21 district for activities, including, but not limited to, marketing of the
22 district for business development, human resource services for district
23 residents and businesses, and services for small and minority- and
24 women-owned businesses; and
25 (vii) identify publicly controlled and other developable lands and
26 buildings within the proposed district which are or could be made avail-
27 able for industrial and commercial development.
28 § 368. Academic collaborative district development plan. An academic
29 collaborative district development plan shall be filed with the commis-
30 sioner, and shall demonstrate the methods by which the applicant intends
31 to promote the development of new business and the expansion of existing
32 business within the academic collaborative district and shall include,
33 but shall not be limited to:
34 (a) a statement indicating how academic collaborative district desig-
35 nation would assist in the revitalization of the area in which such
36 district is proposed to be located;
37 (b) a description of the method by which industrial development agen-
38 cies or other public finance agencies shall grant a preference for allo-
39 cation of private activity bonding authority for projects located in the
40 proposed academic collaborative district;
41 (c) a description of proposals for infrastructure improvements and
42 investments and a timetable for their completion;
43 (d) a statement identifying those local tax incentives proposed to be
44 offered within the district;
45 (e) a description of a procedure to expedite the issuance of any
46 required local permits or licenses;
47 (f) a description of other activities to be undertaken by municipal
48 agencies, business entities, not-for-profit corporations, community-
49 based organizations or any other persons, which are designed to promote
50 private sector business investment and job development in the district
51 and a description of the job training or job placement services to be
52 made available to district residents in need of such training or
53 services;
54 (g) an inventory of real property located within the proposed academic
55 collaborative district that is owned by a municipality or the state and
56 is currently unused by the municipality or the state;
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1 (h) a description of the business development programs and services to
2 be available to stimulate the creation of new small businesses, includ-
3 ing new small minority and women business enterprises;
4 (i) a description of efforts that will be undertaken to prevent or
5 discourage the displacement of residents of the proposed academic colla-
6 borative district;
7 (j) a description of activities designed to ensure the meaningful
8 participation of minority-owned and women-owned business enterprises in
9 academic collaborative district development activities;
10 (k) a description of provisions for the participation of not-for-pro-
11 fit and business corporations in the development of the plan and in
12 strategies for implementation of the plan;
13 (l) a description of the marketing strategy to be employed by the
14 applicant to promote business development in the district and the
15 resources to be committed by the applicant and other organizations to
16 the implementation of such strategy;
17 (m) a description of the method by which the applicant will evaluate
18 the success of any activities to be undertaken in the proposed academic
19 collaborative district, provided, however, that the applicant shall take
20 into consideration the factors upon which the selection of the area was
21 based in any evaluation;
22 (n) a description of provisions for participation and allocation of
23 funds by the affected service delivery area private industry council and
24 administrative entity established pursuant to the job training partner-
25 ship act (P.L. 97-300, as amended) to provide job training in the
26 district;
27 (o) a statement of the reasons why the particular geographic config-
28 uration of the district was selected;
29 (p) a description of the special programs to be operated by educa-
30 tional institutions and other training entities in the area to prepare
31 and train district residents for employment by businesses located within
32 and outside the district;
33 (q) a statement from the appropriate regional economic development
34 council setting forth the specific resources to be allocated for busi-
35 ness development in the district;
36 (r) a description of facilities for licensed and certified child day
37 care for the children of persons engaged in training for employment in,
38 or employed in, the district;
39 (s) a description of specific strategies and priorities for economic
40 revitalization of the district and of indicators to be used to measure
41 performance against objectives;
42 (t) a statement of human resource development goals for the academic
43 collaborative district and specific strategies for achieving them;
44 (u) a description of how the applicant will use district designation
45 to coordinate economic development programs and providers at the local
46 level to service the district; and
47 (v) a description of the financial commitments which the applicant is
48 prepared to make to the district, including, but not limited to, specif-
49 ic commitments for infrastructure improvements.
50 § 369. Termination or revision of an academic collaborative district.
51 (a) Except as provided in this section, any designation of an area as an
52 academic collaborative district shall remain in effect during the period
53 beginning on the date of designation and ending July thirty-first, two
54 thousand eighteen.
55 (b) After consultation with the director of the budget and the commis-
56 sioner of labor, the commissioner may terminate the designation of an
A. 4361 9
1 area as an academic collaborative district upon a finding that (i) the
2 applicant has failed substantially to implement the academic collabora-
3 tive district development plan within the time stated therein; (ii)
4 there has been no substantial business development or job creation with-
5 in the area designated as an academic collaborative district within five
6 years after such designation; (iii) there has been inadequate management
7 and evaluation of the district at the local level; or (iv) the applicant
8 has repeatedly failed to comply with program reporting requirements,
9 provided, however, that no termination shall occur unless and until
10 written notice has been given to the applicant and a public hearing has
11 been held thirty days prior to the effective date of such termination.
12 (c) A college may, by resolution, submit to the commissioner a request
13 to revise the boundaries of an existing academic collaborative district.
14 The commissioner may, after consultation with the commissioner of labor,
15 approve such revision subject to the following provisions:
16 (i) Any revision of the borders of an academic collaborative district
17 shall be based upon a determination by the commissioner that a change in
18 circumstances has occurred since the establishment of the existing
19 borders which makes revision of such borders necessary or desirable.
20 (ii) The commissioner shall affirm that such revision would not have
21 the effect of producing an academic collaborative district which does
22 not satisfy the criteria for district designation established by or
23 pursuant to section three hundred sixty-three of this article.
24 (iii) The commissioner may grant approval of revision of the borders
25 of an academic collaborative district without prior public notice and
26 without a prior public hearing if such revision adds territory to an
27 existing academic collaborative district, but does not remove territory
28 from such district.
29 (iv) The commissioner may grant approval of a revision of the borders
30 of an academic collaborative district after public notice of such
31 proposed revision and a public hearing at least thirty days prior to the
32 effective date of such revision, if such revision removes territory from
33 an existing academic collaborative district.
34 (v) The revision of the borders of an academic collaborative district
35 shall have no effect on the duration of the designation of such academic
36 collaborative district as provided by subdivision (a) of this section.
37 (vi) It is the policy to allow each district no more than one boundary
38 amendment within a twelve month period. If, however, there is a change
39 in circumstances involving extenuating factors within the year (such as
40 the attraction/retention of a major potential/area employer, which is
41 consistent with the district's development goals), the request will be
42 considered.
43 (d) Upon the termination or revision of the borders of an academic
44 collaborative district as provided in this section, the commissioner
45 shall file notice of such action as required by section three hundred
46 sixty-four of this article.
47 § 2. The real property tax law is amended by adding a new section
48 485-n to read as follows:
49 § 485-n. Academic collaborative district exemption. 1. (a) Real prop-
50 erty constructed, altered, installed or improved in an area designated
51 an academic collaborative district pursuant to article eighteen of the
52 economic development law shall be exempt from taxation and special ad
53 valorem levies by any municipal corporation in which located, for the
54 period and to the extent herein provided, provided that the governing
55 board of such municipal corporation, after public hearing, adopts a
56 local law, ordinance or resolution providing therefor.
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1 (b) For exemptions commencing in the first seven years from the date
2 on which the academic collaborative district was designated, the amount
3 of such exemption in any of these years shall be one hundred percent of
4 the "base amount", determined pursuant to subdivision two of this
5 section. In the eighth, ninth and tenth years, the amount of the
6 exemption shall be seventy-five percent, fifty percent, and twenty-five
7 percent, respectively, of such base amount.
8 (c) For exemptions commencing in the eighth, ninth and tenth years
9 from the date on which the academic collaborative district was desig-
10 nated, the amount of such exemption shall be seventy-five percent, fifty
11 percent and twenty-five percent, respectively, of the "base amount",
12 determined pursuant to subdivision two of this section.
13 1-a. (a) A municipal corporation may provide in such local law, ordi-
14 nance or resolution, or in a separate local law, ordinance or resolution
15 adopted after public hearing, that the exemption so authorized shall be
16 for a term of ten years, notwithstanding that the designation of the
17 district may expire prior to the end of such ten year term. Any such
18 local law, ordinance or resolution shall be applicable only to
19 exemptions commencing on assessment rolls with taxable status dates on
20 or after the effective date of such local law, ordinance or resolution.
21 (b) Where such local law, ordinance or resolution has been adopted,
22 the amount of such exemption in the first seven years of its term shall
23 be one hundred percent of the "base amount," determined pursuant to
24 subdivision two of this section. The amount of the exemption in the
25 eighth, ninth, and tenth years of its term shall be seventy-five
26 percent, fifty percent and twenty-five percent, respectively, of such
27 base amount.
28 2. (a) The base amount of the exemption shall be the extent of the
29 increase in assessed value attributable to such construction, alter-
30 ation, installation or improvement as determined in the initial year for
31 which application for exemption is made pursuant to this section. The
32 base amount shall remain constant for the authorized term of the
33 exemption, subject to the following:
34 (i) If there is subsequent construction, alteration, installation or
35 improvement during the term of the exemption, the base amount shall be
36 revised to include the increase in assessed value attributable to such
37 construction, alteration, installation or improvement.
38 (ii) If a change in level of assessment of fifteen percent or more is
39 certified for an assessment roll pursuant to the rules of the state
40 board, the base amount shall be adjusted by such change in level of
41 assessment. The exemption on that assessment roll shall thereupon be
42 recomputed, notwithstanding the fact that the assessor receives the
43 certification after the completion, verification and filing of the final
44 assessment roll. In the event the assessor does not have custody of the
45 roll when such certification is received, the assessor shall certify the
46 recomputed exemption to the local officers having custody and control of
47 the roll, and such local officers are hereby directed and authorized to
48 enter the recomputed exemption certified by the assessor on the roll.
49 (b) No such exemption shall be granted unless, pursuant to article
50 eighteen of the economic development law:
51 (i) notice of the designation of the academic collaborative district
52 has been filed with the clerk of the assessing unit by the commissioner
53 of economic development on or before the applicable taxable status date;
54 (ii) the construction, alteration, installation or improvement
55 commenced on or after the date the academic collaborative district was
56 designated; and
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1 (iii) the designation of the academic collaborative district has not
2 ended and has not been terminated by the commissioner of economic devel-
3 opment on or before the applicable taxable status date.
4 (c) For purposes of this section the terms construction, alteration,
5 installation and improvement shall not include ordinary maintenance and
6 repairs.
7 (d) No such exemption shall be granted concurrent with or subsequent
8 to any other real property tax exemption granted to the same improve-
9 ments to real property, except, where during the period of such previous
10 exemption, payments in lieu of taxes or other payments were made to the
11 local government in an amount that would have been equal to or greater
12 than the amount of real property taxes that would have been paid on such
13 improvements had such property been granted an exemption pursuant to
14 this section. In such case, an exemption shall be granted for a number
15 of years equal to the ten year exemption granted pursuant to this
16 section less the number of years the property would have been previously
17 exempt from real property taxes.
18 3. Such exemption shall be granted only upon application by the owner
19 of such real property on a form prescribed by the state board. The
20 original of such application shall be filed with the assessor of the
21 assessing unit. Such original application shall be filed on or before
22 the appropriate taxable status date of such assessing unit and no later
23 than one year from the date of completion of such construction, alter-
24 ation, installation or improvement.
25 4. If the assessor receives the notice described in paragraph (b) of
26 subdivision two of this section and an application by the owner of the
27 real property, he shall approve the application and such real property
28 shall thereafter be exempt from taxation as herein provided commencing
29 with the assessment roll prepared after the taxable status date referred
30 to in subdivision three of this section. The assessed value of any
31 exemption granted pursuant to this section shall be entered by the
32 assessor on the assessment roll with the taxable property, with the
33 amount of the exemption entered in a separate column.
34 5. Exemptions existing prior in time to the termination of the desig-
35 nation of an academic collaborative district by the commissioner, or, in
36 the case of a municipal corporation which has adopted a local law, ordi-
37 nance or resolution pursuant to subdivision one-a of this section, prior
38 in time to the expiration of such designation, shall continue as if the
39 designation of the academic collaborative district had not been termi-
40 nated, or, if applicable, had not expired; provided, however, that any
41 further increase in the value attributable to construction, alteration,
42 installation or improvement commenced subsequent to the date of termi-
43 nation, or, if applicable, the date of expiration, shall not be eligible
44 for exemption pursuant to this section.
45 § 3. Section 186-a of the tax law is amended by adding a new subdivi-
46 sion 8-a to read as follows:
47 8-a. Notwithstanding any other provision of this chapter or any other
48 law to the contrary, any utility (a) which is subject to tax hereunder,
49 and (b) which is subject to the supervision of the department of public
50 service, shall provide, in addition to any other discount, a reduction
51 of three percent in the rate charged for gas, electricity, steam or
52 water sold, or gas, electric, steam or water service rendered, prior to
53 two thousand thirteen, for ultimate consumption or use within an area
54 designated as an academic collaborative district pursuant to article
55 eighteen of the economic development law by a business, whether incorpo-
56 rated or unincorporated, other than a retail enterprise as defined in
A. 4361 12
1 paragraph (k) of subdivision twelve of section two hundred ten of this
2 chapter but without regard to subparagraph (iii) of such paragraph,
3 which has been certified pursuant to article eighteen of the economic
4 development law, and which has claimed a credit under subdivision nine-
5 teen of section two hundred ten, subsection (k) of section six hundred
6 six, subsection (e) of section fourteen hundred fifty-six or subdivision
7 (g) of section fifteen hundred eleven of this chapter during the previ-
8 ous fifteen months, as evidenced by a certificate issued by the commis-
9 sioner to such business. Ninety-six and one-half percent of the aggre-
10 gate of such reductions during the year may be applied as a credit
11 against the tax imposed pursuant to this section with respect to such
12 year.
13 § 4. Section 210 of the tax law is amended by adding two new subdivi-
14 sions 12-H and 12-I to read as follows:
15 12-H. Academic collaborative district investment tax credit. (a) A
16 taxpayer shall be allowed a credit, to be computed as herein provided,
17 against the tax imposed by this article if the taxpayer has been certi-
18 fied pursuant to article eighteen of the economic development law. The
19 amount of the credit shall be ten percent of the cost or other basis for
20 federal income tax purposes of tangible personal property and other
21 tangible property, including buildings and structural components of
22 buildings, described in paragraph (b) of this subdivision, which is
23 located within an academic collaborative district designated as such
24 pursuant to article eighteen of the economic development law, but only
25 if the acquisition, construction, reconstruction or erection of such
26 property occurred or was commenced on or after the date of such desig-
27 nation and prior to the expiration thereof. Provided, however, that in
28 the case of an acquisition, construction, reconstruction or erection
29 which was commenced during such period and continued or completed subse-
30 quently, such credit shall be ten percent of the portion of the cost or
31 other basis for federal income tax purposes attributable to such period,
32 which portion shall be ascertained by multiplying such cost or basis by
33 a fraction, the numerator of which shall be the expenditures paid or
34 incurred during such period for such purposes and the denominator of
35 which shall be the total of all expenditures paid or incurred for such
36 acquisition, construction, reconstruction or erection.
37 (b) A credit shall be allowed under this subdivision with respect to
38 tangible personal property and other tangible property, including build-
39 ings and structural components of buildings, which (i) are depreciable
40 pursuant to section one hundred sixty-seven of the internal revenue
41 code, (ii) have a useful life of four years or more, (iii) are acquired
42 by purchase as defined in section one hundred seventy-nine (d) of the
43 internal revenue code, (iv) have a situs in an academic collaborative
44 district designated as such pursuant to article eighteen of the economic
45 development law, and (v) are developmentally used by the taxpayer in (A)
46 the production of goods by manufacturing, processing, assembling, refin-
47 ing, mining, extracting, farming, agriculture, horticulture, floricul-
48 ture, viticulture or commercial fishing, (B) industrial waste treatment
49 facilities or air pollution control facilities used in the taxpayer's
50 trade or business, (C) research and development property, (D) the ordi-
51 nary course of the taxpayer's trade or business as a broker or dealer in
52 connection with the purchase or sale (which shall include but not be
53 limited to the issuance, entering into, assumption, offset, assignment,
54 termination, or transfer) of stocks, bonds or other securities as
55 defined in section four hundred seventy-five (c)(2) of the Internal
56 Revenue Code, or of commodities as defined in section four hundred
A. 4361 13
1 seventy-five (e) of the Internal Revenue Code, (E) the ordinary course
2 of the taxpayer's trade or business of providing investment advisory
3 services for a regulated investment company as defined in section eight
4 hundred fifty-one of the Internal Revenue Code, or lending, loan
5 arrangement, or loan origination services to customers in connection
6 with the purchase or sale (which shall include but not be limited to the
7 issuance, entering into, assumption, offset, assignment, termination or
8 transfer) of securities as defined in section four hundred seventy-five
9 (c)(2) of the Internal Revenue Code, or (F) in the ordinary course of
10 the taxpayer's business as an exchange registered as a national securi-
11 ties exchange within the meaning of sections 3(a)(1) and 6(a) of the
12 Securities Exchange Act of 1934 or a board of trade as defined in
13 subparagraph one of paragraph (a) of section fourteen hundred ten of the
14 not-for-profit corporation law or as an entity that is wholly owned by
15 one or more such national securities exchanges or boards of trade and
16 that provides automation or technical services thereto. For purposes of
17 clauses (D), (E) and (F) of subparagraph (v) of this paragraph, property
18 purchased by a taxpayer affiliated with a regulated broker, dealer,
19 national securities exchange or board of trade is allowed a credit under
20 this subdivision if the property is used by its affiliated regulated
21 broker, dealer or national securities exchange or board of trade in
22 accordance with this subdivision. Provided, however, a taxpayer shall
23 not be allowed the credit provided by clauses (D), (E) and (F) of
24 subparagraph (v) of this paragraph unless all or a substantial portion
25 of the employees performing the administrative and support functions
26 resulting from or related to the qualifying uses of such equipment are
27 located in this state. For the purpose of this subdivision, the term
28 "goods" shall not include electricity. For purposes of this paragraph,
29 manufacturing shall mean the process of working raw materials into wares
30 suitable for use or which gives new shapes, new quality or new combina-
31 tions to matter which already has gone through some artificial process
32 by the use of machinery, tools, appliances and other similar equipment.
33 Property used in the production of goods shall include machinery, equip-
34 ment or other tangible property which is principally used in the repair
35 and service of other machinery, equipment or other tangible property
36 used principally in the production of goods and shall include all facil-
37 ities used in the production operation, including storage of material to
38 be used in production and of the products that are produced. For
39 purposes of this paragraph, the terms "research and development proper-
40 ty", "industrial waste treatment facilities", and "air pollution control
41 facilities" shall have the meanings ascribed thereto by clauses (B), (C)
42 and (D), respectively, of subparagraph (ii) of paragraph (b) of subdivi-
43 sion twelve of this section, and the provisions of subparagraph (iii) of
44 such paragraph (b) shall apply.
45 (c) A taxpayer shall not be allowed a credit under this subdivision
46 with respect to any tangible personal property and other tangible prop-
47 erty, including buildings and structural components of buildings, which
48 it leases to any other person or corporation except where a taxpayer
49 leases property to an affiliated regulated broker, dealer, national
50 securities exchange or board of trade (or other entity described in
51 clause (F) of subparagraph (v) of paragraph (b) of this subdivision that
52 uses such property in accordance with clause (D), (E) or (F) of subpara-
53 graph (v) of paragraph (b) of this subdivision. For purposes of the
54 preceding sentence, any contract or agreement to lease or rent or for a
55 license to use such property shall be considered a lease. Provided,
56 however, in determining whether a taxpayer shall be allowed a credit
A. 4361 14
1 under this subdivision with respect to such property, any election made
2 with respect to such property pursuant to the provisions of paragraph
3 eight of subsection (f) of section one hundred sixty-eight of the inter-
4 nal revenue code, as such paragraph was in effect for agreements entered
5 into prior to January first, nineteen hundred eighty-four, shall be
6 disregarded.
7 (d) The credit allowed under this subdivision for any taxable year
8 shall not reduce the tax due for such year to less than the higher of
9 the amounts prescribed in paragraphs (c) and (d) of subdivision one of
10 this section. Provided, however, that if the amount of credit allowed
11 under this subdivision for any taxable year reduces the tax to such
12 amount, any amount of credit not deductible in such taxable year may be
13 carried over to the following year or years and may be deducted from the
14 taxpayer's tax for such year or years. In lieu of such carryover, any
15 such taxpayer which qualifies as a new business under paragraph (j) of
16 subdivision twelve of this section may elect, on its report for its
17 taxable year with respect to which such credit is allowed, to treat
18 fifty percent of the amount of such carryover as an overpayment of tax
19 to be credited or refunded in accordance with the provisions of section
20 ten hundred eighty-six of this chapter. Provided, however, the
21 provisions of subsection (c) of section ten hundred eighty-eight of this
22 chapter notwithstanding, no interest shall be paid thereon.
23 (e) At the option of the taxpayer air or water pollution control
24 facilities which qualify for elective deductions under paragraph (g) of
25 subdivision nine of section two hundred eight of this article or an
26 eligible business facility for which a credit is allowed under subdivi-
27 sion eleven of this section, or research and development facilities
28 which qualify for elective deduction under subparagraphs two and three
29 of paragraph (e) of subdivision three of this section, or property which
30 qualifies for the credit provided under subdivision twelve or eighteen
31 of this section may be treated as property principally used by the
32 taxpayer in the production of goods by manufacturing, processing, assem-
33 bling, refining, mining, extracting, farming, agriculture, horticulture,
34 viticulture or commercial fishing, provided the property otherwise qual-
35 ifies under paragraph (b) of this subdivision, in which event a
36 deduction shall not be allowed under paragraph (g) of subdivision nine
37 of section two hundred eight of this article, a credit shall not be
38 allowed under such subdivision eleven and a deduction shall not be
39 allowed under such subparagraph three of paragraph (e) and a credit
40 shall not be allowed under such subdivision twelve or eighteen of this
41 section.
42 (f) (1) With respect to property which is depreciable pursuant to
43 section one hundred sixty-seven of the internal revenue code but is not
44 subject to the provisions of section one hundred sixty-eight of such
45 code and which is disposed of or ceases to be in qualified use prior to
46 the end of the taxable year in which the credit is to be taken, the
47 amount of the credit shall be that portion of the credit provided for in
48 this subdivision which represents the ratio which the months of quali-
49 fied use bear to the months of useful life. If property on which credit
50 has been taken is disposed of or ceases to be in qualified use prior to
51 the end of its useful life, the difference between the credit taken and
52 the credit allowed for actual use must be added back in the year of
53 disposition. Provided, however, if such property is disposed of or ceas-
54 es to be in qualified use after it has been in qualified use for more
55 than twelve consecutive years, it shall not be necessary to add back the
56 credit as provided in this subparagraph. The amount of credit allowed
A. 4361 15
1 for actual use shall be determined by multiplying the original credit by
2 the ratio which the months of qualified use bear to the months of useful
3 life. For purposes of this subparagraph, useful life of property shall
4 be the same as the taxpayer uses for depreciation purposes when comput-
5 ing his federal income tax liability.
6 (2) Except with respect to that property to which subparagraph four of
7 this paragraph applies, with respect to three-year property, as defined
8 in subsection (e) of section one hundred sixty-eight of the internal
9 revenue code, which is disposed of or ceases to be in qualified use
10 prior to the end of the taxable year in which the credit is to be taken,
11 the amount of the credit shall be that portion of the credit provided
12 for in this subdivision which represents the ratio which the months of
13 qualified use bear to thirty-six. If property on which credit has been
14 taken is disposed of or ceases to be in qualified use prior to the end
15 of thirty-six months, the difference between the credit taken and the
16 credit allowed for actual use must be added back in the year of disposi-
17 tion. The amount of credit allowed for actual use shall be determined by
18 multiplying the original credit by the ratio which the months of quali-
19 fied use bear to thirty-six.
20 (3) Except with respect to that property to which subparagraph four of
21 this paragraph applies, with respect to property subject to the
22 provisions of section one hundred sixty-eight of the internal revenue
23 code other than three-year property as defined in subsection (e) of such
24 section one hundred sixty-eight which is disposed of or ceases to be in
25 qualified use prior to the end of the taxable year in which the credit
26 is to be taken, the amount of the credit shall be that portion of the
27 credit provided for in this subdivision which represents the ratio which
28 the months of qualified use bear to sixty. If property on which credit
29 has been taken is disposed of or ceases to be in qualified use prior to
30 the end of sixty months, the difference between the credit taken and the
31 credit allowed for actual use must be added back in the year of disposi-
32 tion. The amount of credit allowed for actual use shall be determined by
33 multiplying the original credit by the ratio which the months of quali-
34 fied use bear to sixty.
35 (4) With respect to any property to which section one hundred sixty-
36 eight of the internal revenue code applies, which is a building or a
37 structural component of a building and which is disposed of or ceases to
38 be in qualified use prior to the end of the taxable year in which the
39 credit is to be taken, the amount of the credit shall be that portion of
40 the credit provided for in this subdivision which represents the ratio
41 which the months of qualified use bear to the total number of months
42 over which the taxpayer chooses to deduct the property under the inter-
43 nal revenue code. If property on which credit has been taken is disposed
44 of or ceases to be in qualified use prior to the end of the period over
45 which the taxpayer chooses to deduct the property under the internal
46 revenue code, the difference between the credit taken and the credit
47 allowed for actual use must be added back in the year of disposition.
48 Provided, however, if such property is disposed of or ceases to be in
49 qualified use after it has been in qualified use for more than twelve
50 consecutive years, it shall not be necessary to add back the credit as
51 provided in this subparagraph. The amount of credit allowed for actual
52 use shall be determined by multiplying the original credit by the ratio
53 which the months of qualified use bear to the total number of months
54 over which the taxpayer chooses to deduct the property under the inter-
55 nal revenue code.
A. 4361 16
1 (5) For purposes of this paragraph, disposal or cessation of qualified
2 use shall not be deemed to have occurred solely by reason of the termi-
3 nation or expiration of an academic collaborative district's designation
4 as such.
5 (6)(A) For purposes of this paragraph, the decertification of a busi-
6 ness enterprise with respect to an academic collaborative district shall
7 constitute a disposal or cessation of qualified use of the property on
8 which the credit was taken which is located in the district to which the
9 decertification applies, on the effective date of such decertification.
10 (B) Where a business enterprise has been decertified, the amount
11 required to be added back by reason of this paragraph shall be (i) the
12 amount of credit, with respect to the property which is disposed of or
13 ceases to be in qualified use, which was deducted from the taxpayer's
14 tax otherwise due under this article for all prior taxable years,
15 reduced (but not below zero) by (ii) the credit allowed for actual use.
16 For purposes of this subparagraph, the attribution to specific property
17 of credit amounts deducted from tax shall be established in accordance
18 with the date of placement in service of such property in the district.
19 (C) In no event shall the amount of the credit allowed pursuant to
20 this subdivision be rendered, solely by reason of clause (A) of this
21 subparagraph, less than the amount of the credit to which the taxpayer
22 would otherwise be entitled under subdivision twelve of this section.
23 (D) Notwithstanding any other provision of this subdivision, in the
24 case of a business enterprise which has been decertified, any amount of
25 credit allowed with respect to the property of such business enterprise
26 located in the district to which the decertification applies which is
27 carried over pursuant to paragraph (d) of this subdivision shall not be
28 carried over beyond the seventh taxable year next following the taxable
29 year with respect to which the credit provided for in this subdivision
30 was allowed.
31 (7) For purposes of this paragraph, where a credit is allowed with
32 respect to an air pollution control facility on the basis of a certif-
33 icate of compliance issued pursuant to the environmental conservation
34 law and the certificate is revoked pursuant to subdivision three of
35 section 19-0309 of the environmental conservation law, such revocation
36 shall constitute a disposal or cessation of qualified use, except with
37 respect to property contained in or comprising such facility which is
38 described in clause (A), (B) or (C) of subparagraph (v) of paragraph (b)
39 of this subdivision other than as part of or comprising an air pollution
40 control facility. Also for purposes of this paragraph, the use of an air
41 pollution control facility or an industrial waste treatment facility for
42 the primary purpose of salvaging materials which are usable in the manu-
43 facturing process or are marketable shall constitute a cessation of
44 qualified use, except with respect to property contained in or compris-
45 ing such facility which is described in clause (A) or (C) of subpara-
46 graph (v) of paragraph (b) of this subdivision.
47 12-I. Academic collaborative district employment incentive credit. (a)
48 Where a taxpayer is allowed a credit under subdivision twelve-H of this
49 section, the taxpayer shall be allowed a credit for each of the three
50 years next succeeding the taxable year for which the credit under such
51 subdivision twelve-H is allowed, with respect to such property, whether
52 or not deductible in such taxable year or in subsequent taxable years
53 pursuant to paragraph (d) of such subdivision twelve-H, of thirty
54 percent of the credit allowable under such subdivision twelve-H;
55 provided, however, that the credit allowable under this subdivision for
56 any taxable year shall only be allowed if the average number of employ-
A. 4361 17
1 ees employed by the taxpayer in the empire zone, designated pursuant to
2 article eighteen of the economic development law, in which such property
3 is located during such taxable year is at least one hundred one percent
4 of the average number of employees employed by the taxpayer in such
5 academic collaborative district or, where applicable, in the geographic
6 area subsequently constituting such district, during the taxable year
7 immediately preceding the taxable year for which the credit under such
8 subdivision twelve-H is allowed and provided, further, that if the
9 taxpayer was not subject to tax and did not have a taxable year imme-
10 diately preceding the taxable year for which the credit under subdivi-
11 sion twelve-H of this section is allowed, the credit allowable under
12 this subdivision for any taxable year shall be allowed if the average
13 number of employees employed in such academic collaborative district in
14 such taxable year is at least one hundred one percent of the average
15 number of such employees during the taxable year in which the credit
16 under such subdivision twelve-H is allowed.
17 (b) The average number of employees employed in an academic collabora-
18 tive district, or, where applicable, in the geographic area subsequently
19 constituting such district, in a taxable year shall be computed by
20 ascertaining the number of such employees within such district, or,
21 where applicable, in the geographic area subsequently constituting such
22 district, except general executive officers, employed by the taxpayer on
23 the thirty-first day of March, the thirtieth day of June, the thirtieth
24 day of September and the thirty-first day of December in the taxable
25 year, by adding together the number of employees ascertained on each of
26 such dates and dividing the sum so obtained by the number of such
27 above-mentioned dates occurring within the taxable year. For the
28 purposes of this subdivision, the term "employees" and the term "general
29 executive officers" shall mean the same as in subparagraph three of
30 paragraph (a) of subdivision three of this section.
31 (c) In no event shall the credit herein provided for be allowed in an
32 amount which will reduce the tax payable to less than the amount
33 prescribed in paragraph (d) of subdivision one of this section.
34 Provided, however, that if the amount of credit allowable under this
35 subdivision for any taxable year reduces the tax to such amount, any
36 amount of credit not deductible in such taxable year may be carried over
37 to the following year or years and may be deducted from the taxpayer's
38 tax for such year or years.
39 § 5. Section 606 of the tax law is amended by adding four new
40 subsections (l-1), (l-2), (l-3) and (l-4) to read as follows:
41 (l-1) Academic collaborative district investment tax credit. (1) A
42 taxpayer shall be allowed a credit, to be computed as hereinafter
43 provided, against the tax imposed by this article where the taxpayer has
44 been certified pursuant to article eighteen of the economic development
45 law. The amount of such credit shall be eight percent of the cost or
46 other basis for federal income tax purposes of tangible personal proper-
47 ty and other tangible property, including buildings and structural
48 components of buildings, described in paragraph two of this subsection,
49 which is located within an academic collaborative district designated as
50 such pursuant to article eighteen of the economic development law, but
51 only if the acquisition, construction, reconstruction or erection of
52 such property occurred or was commenced on or after the date of such
53 designation and prior to the expiration thereof. Provided, however, that
54 in the case of an acquisition, construction, reconstruction or erection
55 which was commenced during such period and continued or completed subse-
56 quently, the credit shall be eight percent of the portion of the cost or
A. 4361 18
1 other basis for federal income tax purposes attributable to such period,
2 which portion shall be ascertained by multiplying such cost or basis by
3 a fraction the numerator of which shall be the expenditures paid or
4 incurred during such period for such purposes and the denominator of
5 which shall be the total of all expenditures paid or incurred for such
6 acquisition, construction, reconstruction or erection.
7 (2) A credit shall be allowed under this subsection with respect to
8 tangible personal property and other tangible property, including build-
9 ings and structural components of buildings which: (A) are depreciable
10 pursuant to section one hundred sixty-seven of the internal revenue
11 code, (B) have a useful life of four years or more, (C) are acquired by
12 purchase as defined in section one hundred seventy-nine (d) of the
13 internal revenue code, (D) have a situs in an academic collaborative
14 district designated as such pursuant to article eighteen of the economic
15 development law, and (E) are (i) principally used by the taxpayer in the
16 production of goods by manufacturing, processing, assembling, refining,
17 mining, extracting, farming, agriculture, horticulture, floriculture,
18 viticulture or commercial fishing, (ii) industrial waste treatment
19 facilities or air pollution control facilities used in the taxpayer's
20 trade or business, (iii) research and development property, (iv) princi-
21 pally used in the ordinary course of the taxpayer's trade or business as
22 a broker or dealer in connection with the purchase or sale (which shall
23 include but not be limited to the issuance, entering into, assumption,
24 offset, assignment, termination, or transfer) of stocks, bonds or other
25 securities as defined in section four hundred seventy-five (c)(2) of the
26 Internal Revenue Code, or of commodities as defined in section four
27 hundred seventy-five (e) of the Internal Revenue Code, or (v) principal-
28 ly used in the ordinary course of the taxpayer's trade or business of
29 providing investment advisory services for a regulated investment compa-
30 ny as defined in section eight hundred fifty-one of the Internal Revenue
31 Code, or lending, loan arrangement or loan origination services to
32 customers in connection with the purchase or sale (which shall include
33 but not be limited to the issuance, entering into, assumption, offset,
34 assignment, termination, or transfer) of securities as defined in
35 section four hundred seventy-five (c)(2) of the Internal Revenue Code.
36 For purposes of clauses (iv) and (v) of this subparagraph, property
37 purchased by a taxpayer affiliated with a regulated broker or dealer is
38 allowed a credit under this subsection if the property is used by its
39 affiliated regulated broker or dealer in accordance with this
40 subsection. Provided, however, a taxpayer shall not be allowed the cred-
41 it provided by clauses (iv) and (v) of this subparagraph unless all or a
42 substantial portion of the employees performing the administrative and
43 support functions resulting from or related to the qualifying uses of
44 such equipment are located in this state. For purposes of this
45 subsection, the term "goods" shall not include electricity. For purposes
46 of this paragraph, manufacturing shall mean the process of working raw
47 materials into wares suitable for use or which gives new shapes, new
48 quality or new combination to matter which already has gone through some
49 artificial process by the use of machinery, tools, appliances and other
50 similar equipment. Property used in the production of goods shall
51 include machinery, equipment or other tangible property which is princi-
52 pally used in the repair and service of other machinery, equipment or
53 other tangible property used principally in the production of goods and
54 shall include all facilities used in the production operation, including
55 storage of material to be used in production and of the products that
56 are produced. For purposes of this paragraph, the terms "research and
A. 4361 19
1 development property", "industrial waste treatment facilities", and "air
2 pollution control facilities" shall have the meanings ascribed thereto
3 by clauses (ii), (iii) and (iv), respectively, of subparagraph (B) of
4 paragraph two of subsection (a) of this section, and the provisions of
5 subparagraph (C) of such paragraph two shall apply.
6 (3) A taxpayer shall not be allowed a credit under this subsection
7 with respect to any tangible personal property and other tangible prop-
8 erty, including buildings and structural components of buildings, which
9 it leases to any other person or corporation except where a taxpayer
10 leases property to an affiliated regulated broker or dealer that uses
11 such property in accordance with clause (iv) or (v) of subparagraph (E)
12 of paragraph two of this subsection. For purposes of the preceding
13 sentence, any contract or agreement to lease or rent or for a license to
14 use such property shall be considered a lease. Provided, however, in
15 determining whether a taxpayer shall be allowed a credit under this
16 subsection with respect to such property, any election made with respect
17 to such property pursuant to the provisions of paragraph eight of
18 subsection (f) of section one hundred sixty-eight of the internal reven-
19 ue code, as such paragraph was in effect for agreements entered into
20 prior to January first, nineteen hundred eighty-four, shall be disre-
21 garded.
22 (4) If the amount of credit allowed under this subsection for any
23 taxable year shall exceed the taxpayer's tax for such year, the excess
24 may be carried over to the following year or years and may be deducted
25 from the taxpayer's tax for such year or years. In lieu of carrying over
26 any such excess, a taxpayer who qualifies as an owner of a new business
27 for purposes of paragraph ten of subsection (a) of this section may, at
28 his option, receive fifty percent of such excess as a refund. Any refund
29 paid pursuant to this paragraph shall be deemed to be a refund of an
30 overpayment of tax as provided in section six hundred eighty-six of this
31 article, provided, however, that no interest shall be paid thereon.
32 (5) At the option of the taxpayer, air or water pollution control
33 facilities which qualify for elective modifications under subsection (h)
34 of section six hundred twelve, or research and development facilities
35 which qualify for elective modification under paragraphs three and four
36 of subsection (g) of section six hundred twelve, or property which qual-
37 ifies for the credit provided under subsection (a) or (h) of this
38 section may be treated as property principally used by the taxpayer in
39 the production of goods by manufacturing, processing, assembling,
40 mining, refining, extracting, farming, agriculture, horticulture, flori-
41 culture, viticulture, or commercial fishing, provided the property
42 otherwise qualifies under paragraph two of this subsection, in which
43 event a deduction shall not be allowed under subsection (h) or para-
44 graphs three and four of subsection (g) of section six hundred twelve
45 and a credit shall not be allowed under subsection (a) or (h) of this
46 section.
47 (6) (A) With respect to property which is depreciable pursuant to
48 section one hundred sixty-seven of the internal revenue code but is not
49 subject to the provisions of section one hundred sixty-eight of such
50 code and which is disposed of or ceases to be in qualified use prior to
51 the end of the taxable year in which the credit is to be taken, the
52 amount of the credit shall be that portion of the credit provided for in
53 this section which represents the ratio which the months of qualified
54 use bear to the months of useful life. If the property on which credit
55 has been taken is disposed of or ceases to be in qualified use prior to
56 the end of its useful life, the difference between the credit taken and
A. 4361 20
1 the credit allowed for actual use must be added back in the year of
2 disposition. Provided, however, if such property is disposed of or ceas-
3 es to be in qualified use after it has been in qualified use for more
4 than twelve consecutive years, it shall not be necessary to add back the
5 credit as provided in this subsection. The amount of credit allowed for
6 actual use shall be determined by multiplying the original credit by the
7 ratio which the months of qualified use bear to the months of useful
8 life. For purposes of this subsection, useful life of property shall be
9 the same as the taxpayer uses for depreciation purposes when computing
10 his federal income tax liability.
11 (B) Except with respect to that property to which subparagraph (D) of
12 this paragraph applies, with respect to three-year property, as defined
13 in subsection (e) of section one hundred sixty-eight of the internal
14 revenue code, which is disposed of or ceases to be in qualified use
15 prior to the end of the taxable year in which the credit is to be taken,
16 the amount of the credit shall be that portion of the credit provided
17 for in this subsection which represents the ratio which the months of
18 qualified use bear to thirty-six. If property on which credit has been
19 taken is disposed of or ceases to be in qualified use prior to the end
20 of thirty-six months, the difference between the credit taken and the
21 credit allowed for actual use must be added back in the year of disposi-
22 tion. The amount of credit allowed for actual use shall be determined by
23 multiplying the original credit by the ratio which the months of quali-
24 fied use bear to thirty-six.
25 (C) Except with respect to that property to which subparagraph (D) of
26 this paragraph applies, with respect to property subject to the
27 provisions of section one hundred sixty-eight of the internal revenue
28 code other than three-year property as defined in subsection (e) of such
29 section one hundred sixty-eight of the internal revenue code which is
30 disposed of or ceases to be in qualified use prior to the end of the
31 taxable year in which the credit is to be taken, the amount of the cred-
32 it shall be that portion of the credit provided for in this subsection
33 which represents the ratio which the months of qualified use bear to
34 sixty. If property on which credit has been taken is disposed of or
35 ceases to be in qualified use prior to the end of sixty months, the
36 difference between the credit taken and the credit allowed for actual
37 use must be added back in the year of disposition. The amount of credit
38 allowed for actual use shall be determined by multiplying the original
39 credit by the ratio which the months of qualified use bear to sixty.
40 (D) With respect to any property to which section one hundred sixty-
41 eight of the internal revenue code applies, which is a building or a
42 structural component of a building and which is disposed of or ceases to
43 be in qualified use prior to the end of the taxable year in which the
44 credit is to be taken, the amount of the credit shall be that portion of
45 the credit provided for in this subsection which represents the ratio
46 which the months of qualified use bear to the total number of months
47 over which the taxpayer chooses to deduct the property under the inter-
48 nal revenue code. If property on which credit has been taken is disposed
49 of or ceases to be in qualified use prior to the end of the period over
50 which the taxpayer chooses to deduct the property under the internal
51 revenue code, the difference between the credit taken and the credit
52 allowed for actual use must be added back in the year of disposition.
53 Provided, however, if such property is disposed of or ceases to be in
54 qualified use after it has been in qualified use for more than twelve
55 consecutive years, it shall not be necessary to add back the credit as
56 provided in this subparagraph. The amount of credit allowed for actual
A. 4361 21
1 use shall be determined by multiplying the original credit by the ratio
2 which the months of qualified use bear to the total number of months
3 over which the taxpayer chooses to deduct the property under the inter-
4 nal revenue code.
5 (E) For purposes of this paragraph, disposal or cessation of qualified
6 use shall not be deemed to have occurred solely by reason of the termi-
7 nation or expiration of an academic collaborative district's designation
8 as such.
9 (F)(i) For purposes of this paragraph, the decertification of a busi-
10 ness enterprise with respect to a district shall constitute a disposal
11 or cessation of qualified use of the property on which the credit was
12 taken which is located in the district to which the decertification
13 applies, on the effective date of such decertification.
14 (ii) Where a business enterprise has been decertified the amount
15 required to be added back by reason of this paragraph shall be augmented
16 by an amount equal to the product of the amount of credit, with respect
17 to property which is disposed of or ceases to be in qualified use, which
18 was deducted from the taxpayer's tax otherwise due under this article
19 for all prior taxable years (subject to the limit set forth in this
20 subparagraph) and the underpayment rate of interest (without regard to
21 compounding) set by the commissioner of taxation and finance pursuant to
22 subsection (j) of section six hundred ninety-seven of this article, in
23 effect on the last day of the taxable year. The limit shall be (I) the
24 amount of credit, with respect to the property which is disposed of or
25 ceases to be in qualified use, which was deducted from the taxpayer's
26 tax otherwise due under this article for all prior taxable years,
27 reduced (but not below zero) by (II) the credit allowed for actual use.
28 For purposes of this subparagraph, the attribution to specific property
29 of credit amount deducted from tax shall be established in accordance
30 with the date of placement in service of such property in the academic
31 collaborative district.
32 (iii) In no event shall the amount of the credit allowed pursuant to
33 this subsection be rendered, solely by reason of clause (i) of this
34 subparagraph, less than the amount of the credit to which the taxpayer
35 would otherwise be entitled under subsection (a) of this section.
36 (iv) Notwithstanding any other provision of this subsection, in the
37 case of a business enterprise which has been decertified, any amount of
38 credit allowed with respect to the property of such business enterprise
39 located in the district to which the decertification applies which is
40 carried over pursuant to paragraph four of this subsection shall not be
41 carried over beyond the seventh taxable year next following the taxable
42 year with respect to which the credit provided for in this subsection
43 was allowed.
44 (G) For purposes of this paragraph, where a credit is allowed with
45 respect to an air pollution control facility on the basis of a certif-
46 icate of compliance issued pursuant to the environmental conservation
47 law and the certificate is revoked pursuant to subdivision three of
48 section 19-0309 of the environmental conservation law, such revocation
49 shall constitute a disposal or cessation of qualified use, except with
50 respect to property contained in or comprising such facility which is
51 described in clause (i), (ii) or (iii) of subparagraph (E) of paragraph
52 two of this subsection other than as part of or comprising an air
53 pollution control facility. Also for purposes of this paragraph, the use
54 of an air pollution control facility or an industrial waste treatment
55 facility for the primary purpose of salvaging materials which are usable
56 in the manufacturing process or are marketable shall constitute a cessa-
A. 4361 22
1 tion of qualified use, except with respect to property contained in or
2 comprising such facility which is described in clause (i) or (iii) of
3 subparagraph (E) of paragraph two of this subsection.
4 (l-2) Academic collaborative district employment incentive credit. (1)
5 Where a taxpayer is allowed a credit under subsection (l-1) of this
6 section, the taxpayer shall be allowed a credit for each of the three
7 years next succeeding the taxable year for which the credit under such
8 subsection (l-1) is allowed, with respect to such property, whether or
9 not deductible in such taxable year or in subsequent taxable years
10 pursuant to paragraph four of subsection (l-1) of this section, of thir-
11 ty percent of the credit allowable under such subsection (l-1);
12 provided, however, that the credit allowable under this subsection for
13 any taxable year shall only be allowed if the average number of employ-
14 ees employed by the taxpayer in the academic collaborative district,
15 designated pursuant to article eighteen of the economic development law,
16 in which such property is located during such taxable year is at least
17 one hundred one percent of the average number of employees employed by
18 the taxpayer in such academic collaborative district or, where applica-
19 ble, in the geographic area subsequently constituting such district,
20 during the taxable year immediately preceding the taxable year for which
21 the credit under such subsection (l-1) is allowed and provided, further,
22 that in the case of a new business, the credit allowable under this
23 subsection for any taxable year shall be allowed if the average number
24 of employees employed in such academic collaborative district in such
25 taxable year is at least one hundred one percent of the average number
26 of such employees during the taxable year in which the credit under such
27 subsection (l-1) is allowed.
28 (2) The average number of employees employed in an academic collabora-
29 tive district, or, where applicable, in the geographic area subsequently
30 constituting such district, in a taxable year shall be computed by
31 ascertaining the number of such employees within such district, or,
32 where applicable, in the geographic area subsequently constituting such
33 district, employed by the taxpayer on the thirty-first day of March, the
34 thirtieth day of June, the thirtieth day of September and the thirty-
35 first day of December in the taxable year, by adding together the number
36 of employees ascertained in each of such dates and dividing the sum so
37 obtained by the number of such abovementioned dates occurring within the
38 taxable year.
39 (3) If the amount of credit allowed under this subsection for any
40 taxable year shall exceed the taxpayer's tax for such year, the excess
41 may be carried over to the following year or years and may be deducted
42 from the taxpayer's tax for such year or years. In lieu of carrying over
43 any such excess, a taxpayer who qualified as an owner of a new business
44 for purposes of paragraph ten of subsection (a) of this section may, at
45 his option, receive fifty percent of such excess as a refund. Any refund
46 paid pursuant to this paragraph shall be deemed to be a refund of an
47 overpayment of tax as provided in section six hundred eighty-six of this
48 article, provided, however, that no interest shall be paid thereon.
49 (l-3) Academic collaborative district wage tax credit. (1) A taxpayer
50 shall be allowed a credit, to be computed as hereinafter provided,
51 against the tax imposed by this article, where the taxpayer has been
52 certified pursuant to article eighteen of the economic development law.
53 The amount of such credit shall be as prescribed in paragraph four of
54 this subsection.
55 (2) For the purposes of this subsection, the following terms shall
56 have the following meanings: (A) "Academic collaborative district wages"
A. 4361 23
1 means wages paid by the taxpayer for full-time employment during the
2 taxable year, in an area designated or previously designated as an
3 academic collaborative district or district equivalent area pursuant to
4 article eighteen of the economic development law, where such employment
5 is in a job created in the area (i) during the period of its designation
6 as an academic collaborative district, (ii) within four years of the
7 expiration of such designation, or (iii) during the ten year period
8 immediately following the date of designation as a college district
9 equivalent area, provided, however, that if the taxpayer's certification
10 under article eighteen of the economic development law is revoked with
11 respect to an academic collaborative district or district equivalent
12 area, any wages paid by the taxpayer, on or after the effective date of
13 such decertification, for employment in such district shall not consti-
14 tute academic collaborative district wages.
15 (B) "Targeted employee" means a New York resident who receives academ-
16 ic collaborative district wages and who is (i) an eligible individual
17 under the provisions of the targeted jobs tax credit (section fifty-one
18 of the internal revenue code), (ii) eligible for benefits under the
19 provisions of the job training partnership act (P.L. 97-300, as
20 amended), (iii) a recipient of public assistance benefits or (iv) an
21 individual whose income is below the most recently established poverty
22 rate promulgated by the United States department of commerce, or a
23 member of a family whose family income is below the most recently estab-
24 lished poverty rate promulgated by the appropriate federal agency.
25 An individual who satisfies the criteria set forth in clause (i), (ii)
26 or (iv) of this subparagraph at the time of initial employment in the
27 job with respect to which the credit is claimed, or who satisfies the
28 criterion set forth in clause (iii) of this subparagraph at such time or
29 at any time within the previous two years, shall be a targeted employee
30 so long as such individual continues to receive academic collaborative
31 district wages.
32 (C) "Average number of individuals employed full-time" shall be
33 computed by ascertaining the number of such individuals employed by the
34 taxpayer on the thirty-first day of March, the thirtieth day of June,
35 the thirtieth day of September and the thirty-first day of December
36 during each taxable year or other applicable period, by adding together
37 the number of such individuals ascertained on each of such dates and
38 dividing the sum so obtained by the number of such dates occurring with-
39 in such taxable year or other applicable period.
40 (3) The credit provided for herein shall be allowed only where the
41 average number of individuals employed full-time by the taxpayer in (i)
42 the state and (ii) the academic collaborative district or area previous-
43 ly constituting such district or district equivalent area, during the
44 taxable year exceeds the average number of such individuals employed
45 full-time by the taxpayer in (i) the state and (ii) such district or
46 area subsequently or previously constituting such district or such
47 district equivalent area, respectively, during the four years immediate-
48 ly preceding the first taxable year in which the credit is claimed with
49 respect to such district or area. Where the taxpayer provided full-time
50 employment within (i) the state or (ii) such district or area during
51 only a portion of such four-year period, then for purposes of this para-
52 graph the term "four years" shall be deemed to refer instead to such
53 portion, if any.
54 The credit shall be allowed only with respect to the first taxable
55 year during which payments of academic collaborative district wages are
56 made and the conditions set forth in this paragraph are satisfied, and
A. 4361 24
1 with respect to each of the four taxable years next following (but only,
2 with respect to each of such years, if such conditions are satisfied),
3 in accordance with paragraph four of this subsection. Subsequent certif-
4 ications of the taxpayer pursuant to article eighteen of the economic
5 development law, at the same or a different location in the same academ-
6 ic collaborative district or district equivalent area or at a location
7 in a different academic collaborative district or district equivalent
8 area, shall not extend the five taxable year time limitation on the
9 allowance of the credit set forth in the preceding sentence. Provided,
10 further, however, that no credit shall be allowed with respect to any
11 taxable year beginning more than four years following the taxable year
12 in which designation as an academic collaborative district expired or
13 more than ten years after the designation as a district equivalent area.
14 (4) The amount of the credit shall equal the sum of
15 (i) the product of three thousand dollars and the average number of
16 individuals employed full-time by the taxpayer, computed pursuant to the
17 provisions of subparagraph (C) of paragraph two of this subsection, who
18 (I) received academic collaborative district wages for more than half
19 of the taxable year,
20 (II) received with respect to more than half of the period of employ-
21 ment by the taxpayer during the taxable year, an hourly wage which was
22 at least one hundred thirty-five percent of the minimum wage specified
23 in section six hundred fifty-two of the labor law, and
24 (III) are targeted employees; and
25 (ii) the product of fifteen hundred dollars and the average number of
26 individuals (excluding individuals described in subparagraph (i) of this
27 paragraph) employed full-time by the taxpayer, computed pursuant to the
28 provisions of subparagraph (C) of paragraph two of this subsection, who
29 received district wages for more than half of the taxable year.
30 Provided, further, however, that the credit provided for herein with
31 respect to the taxable year, and carryovers of such credit to the taxa-
32 ble year, deducted from the tax otherwise due, may not, in the aggre-
33 gate, exceed fifty percent of the tax imposed under section six hundred
34 one of this part computed without regard to any credit provided for
35 under this article.
36 (iii) For purposes of calculating the amount of the credit, individ-
37 uals employed within an academic collaborative district or district
38 equivalent area within the immediately preceding sixty months by a
39 related person, as such term is defined in subparagraph (c) of paragraph
40 three of subsection (b) of section four hundred sixty-five of the inter-
41 nal revenue code, shall not be included in the average number of indi-
42 viduals described in subparagraph (i) or subparagraph (ii) of this para-
43 graph, unless such related person was never allowed a credit under this
44 subsection with respect to such employees.
45 (5) If the amount of the credit and carryovers of such credit allowed
46 under this subsection for any taxable year shall exceed the taxpayer's
47 tax for such year, the excess, as well as any part of the credit or
48 carryovers of such credit, or both, which may not be deducted from the
49 tax otherwise due by reason of the final sentence in paragraph four of
50 this subsection, may be carried over to the following year or years and
51 may be deducted from the taxpayer's tax for such year or years. In lieu
52 of carrying over any such excess, a taxpayer who qualifies as an owner
53 of a new business for purposes of paragraph ten of subsection (a) of
54 this section may, at his option, receive fifty percent of such excess as
55 a refund. Any refund paid pursuant to this paragraph shall be deemed to
56 be a refund of an overpayment of tax as provided in section six hundred
A. 4361 25
1 eighty-six of this article, provided, however, that no interest shall be
2 paid thereon.
3 (l-4) Academic collaborative district capital tax credit. (1) A
4 taxpayer shall be allowed a credit against the tax imposed by this arti-
5 cle. The amount of the credit shall be equal to twenty-five percent of
6 the sum of the following investments and contributions made during the
7 taxable year and certified by the commissioner of economic development:
8 (A) qualified investments made in, or contributions in the form of
9 donations made to, one or more academic collaborative district capital
10 corporations established pursuant to section nine hundred sixty-four of
11 the general municipal law, (B) qualified investments in certified
12 district businesses which during the twelve month period immediately
13 preceding the month in which such investment is made, employed full-time
14 within the state an average number of individuals of two hundred fifty
15 or fewer, computed pursuant to the provisions of subparagraph (C) of
16 paragraph two of subsection (k) of this section, except for investments
17 made by or on behalf of an owner of the business including, but not
18 limited to, a stockholder, partner or sole proprietor, or any related
19 person, as defined in subparagraph (C) of paragraph three of subsection
20 (b) of section four hundred sixty-five of the internal revenue code, and
21 (C) contributions of money to community development projects as defined
22 in regulations promulgated by the commissioner of economic development.
23 "Qualified investments" means the contribution of property to a corpo-
24 ration in exchange for original issue capital stock or other ownership
25 interest, the contribution of property to a partnership in exchange for
26 an interest in the partnership, and similar contributions in the case of
27 a business entity not in corporate or partnership form in exchange for
28 an ownership interest in such entity. The total amount of credit allow-
29 able to a taxpayer under this provision for all years, taken in the
30 aggregate, shall not exceed three hundred thousand dollars, and shall
31 not exceed one hundred thousand dollars with respect to the investments
32 and contributions described in each of subparagraphs (A), (B) and (C) of
33 this paragraph.
34 (2) (A) If the amount of the credit and carryovers of such credit
35 allowed under this subsection for any taxable year shall exceed the
36 taxpayer's tax for such year, or if any part of the credit or carryovers
37 of such credit may not be deducted from the tax otherwise due by reason
38 of the final sentence of this subparagraph, any amount of credit or
39 carryovers of such credit thus not deductible in such taxable year may
40 be carried over to the following year or years and may be deducted from
41 the tax for such year or years. In addition, the amount of such credit,
42 and carryovers of such credit to the taxable year, deducted from the tax
43 otherwise due may not, in the aggregate, exceed fifty percent of the tax
44 imposed under section six hundred one of this part computed without
45 regard to any credit provided for by this section.
46 (B) In the case of a husband or wife who is required to file a sepa-
47 rate return, the limitation provided for in paragraph one of this
48 subsection shall be fifty thousand dollars in lieu of one hundred thou-
49 sand dollars and one hundred fifty thousand dollars in lieu of three
50 hundred thousand dollars, unless the spouse of the taxpayer has no cred-
51 it allowable under this subsection for the taxable year of such spouse
52 which ends within or with the taxpayer's taxable year.
53 (C) In the case of an estate or trust, the limitation provided for in
54 paragraph one of this subsection shall be reduced to an amount which
55 bears the same ratio to one hundred thousand dollars and an amount which
56 bears the same ratio to three hundred thousand dollars as the portion of
A. 4361 26
1 the income of the estate or trust which is not allocated to benefici-
2 aries bears to the total income of the estate or trust.
3 (3) Where the stock, partnership interest or other ownership interest
4 arising from a qualified investment as described in subparagraphs (A)
5 and (B) of paragraph one of this subsection is disposed of, the taxpay-
6 er's New York taxable income shall be computed, pursuant to regulations
7 promulgated by the commissioner, so as to properly reflect the reduced
8 cost thereof arising from the application of the credit provided for
9 herein.
10 (4) (A) Where a taxpayer sells, transfers or otherwise disposes of
11 corporate stock, a partnership interest or other ownership interest
12 arising from the making of a qualified investment which was the basis,
13 in whole or in part, for the allowance of the credit provided for under
14 this subsection, or where a contribution or investment which was the
15 basis for such allowance is in any manner, in whole or in part, recov-
16 ered by such taxpayer, and such disposition or recovery occurs during
17 the taxable year or within thirty-six months from the close of the taxa-
18 ble year with respect to which such credit is allowed, subparagraph (B)
19 of this paragraph shall apply.
20 (B) The taxpayer shall add back with respect to the taxable year in
21 which the disposition or recovery described in subparagraph (A) of this
22 paragraph occurred the required portion of the credit originally
23 allowed.
24 (C) The required portion of the credit originally allowed shall be the
25 product of (i) the portion of such credit attributable to the property
26 disposed of or the payment or contribution recovered and (ii) the appli-
27 cable percentage.
28 (D) The applicable percentage shall be:
29 (i) one hundred percent, if the disposition or recovery occurs within
30 the taxable year with respect to which the credit is allowed or within
31 twelve months of the end of such taxable year,
32 (ii) sixty-seven percent, if the disposition or recovery occurs more
33 than twelve but not more than twenty-four months after the end of the
34 taxable year with respect to which the credit is allowed, or
35 (iii) thirty-three percent, if the disposition or recovery occurs more
36 than twenty-four but not more than thirty-six months after the end of
37 the taxable year with respect to which the credit is allowed.
38 § 6. This act shall take effect immediately.
