S08524 Summary:

BILL NOS08524
 
SAME ASSAME AS A05922
 
SPONSORBOYLE
 
COSPNSR
 
MLTSPNSR
 
Rpld Art 18-B, add Art 18-B §§955 - 958, Art 18-D §§972 & 973, Gen Muni L; add §15-a, amd §§210, 210-B, 606, 1511, 1502, 186-a & 186-e, Tax L
 
Fosters economic development by establishing the New York state cornerstone program (focused on job retention) and the New York state discovery program (focused on job creation); provides a series of tax cuts to businesses.
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S08524 Actions:

BILL NOS08524
 
05/09/2018REFERRED TO LOCAL GOVERNMENT
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S08524 Committee Votes:

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S08524 Floor Votes:

There are no votes for this bill in this legislative session.
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S08524 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8524
 
                    IN SENATE
 
                                       May 9, 2018
                                       ___________
 
        Introduced  by  Sen.  BOYLE  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government
 
        AN ACT to amend the general municipal law, in relation  to  establishing
          the  New York state cornerstone program; and to repeal article 18-B of
          such law relating thereto (Part A); to amend the general municipal law
          and the tax law, in  relation  to  establishing  the  New  York  state
          discovery  program  (Part B); and to amend the tax law, in relation to
          net income base and in relation to certain taxes (Part C)
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law components of legislation relating
     2  to  the  "New  York  state  cornerstone  program  and the New York state
     3  discovery program". Each component is wholly  contained  within  a  Part
     4  identified  as Parts A through C. The effective date for each particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing the effective date of the Part, which makes reference to  a  section
     8  "of  this  act", when used in connection with that particular component,
     9  shall be deemed to mean and refer to the corresponding  section  of  the
    10  Part  in  which  it  is  found. Section three of this act sets forth the
    11  general effective date of this act.
    12    § 1-a. Statement of legislative findings and declaration.  It is here-
    13  by found and declared that there exists within the state high  unemploy-
    14  ment,  limited  new  job  creation,  a  dependence  on public assistance
    15  income, insufficient support for industrial and  commercial  businesses,
    16  and  unnecessarily  high  taxes.  These  severe conditions require state
    17  government to target certain industries in order  to  stimulate  private
    18  investment,  private business development and job creation. It should be
    19  the public policy of the state to help promote the  development  of  new
    20  businesses,  rather  than deter them with punitive regulation and exces-
    21  sive taxes. It is further found and declared that it is the public poli-
    22  cy of the state to achieve these goals through the mutual cooperation of
    23  all levels of state and local government,  the  business  community  and
    24  academic institutions.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08139-01-7

        S. 8524                             2
 
     1                                   PART A
 
     2    Section 1. Article 18-B of the general municipal law is REPEALED.
     3    § 2. The general municipal law is amended by adding a new article 18-B
     4  to read as follows:
     5                                 ARTICLE 18-B
     6                     NEW YORK STATE CORNERSTONE PROGRAM
     7  Section 955. New York cornerstone program established.
     8          956. Responsibilities of the commissioner.
     9          957. Cornerstone development board.
    10          958. Reporting requirements.
    11    § 955. New  York  cornerstone  program  established.  There  is hereby
    12  established the New York cornerstone program.
    13    § 956. Responsibilities of the commissioner. 1.  The  commissioner  of
    14  economic  development  shall,  in  consultation with the director of the
    15  budget, the commissioner of labor, and the commissioner of taxation  and
    16  finance,  promulgate  rules  and regulations, which, notwithstanding any
    17  provisions to the contrary in the state  administrative  procedure  act,
    18  may be adopted on an emergency basis, relating to:
    19    (a) the application process;
    20    (b)  defining  types of businesses eligible, including but not limited
    21  to manufacturing, high-tech, bio-tech, clean-tech and agri-business;
    22    (c) limiting businesses to ten years of participation;
    23    (d) certification by the  commissioner  for  eligibility  of  business
    24  enterprises  for  benefits  referred  to  in  this article. Criteria for
    25  certification shall include, but not be limited to:
    26    (i) requiring a business to have been operational in  New  York  state
    27  for  at least ten consecutive years prior to applying to the cornerstone
    28  program;
    29    (ii) requiring a business to show proof that they will have  to  lower
    30  employment levels without certification in the program;
    31    (iii)  requiring  a  business  to  commit to maintaining or increasing
    32  current employment levels to qualify for tax benefits;
    33    (iv) whether certification will have the undesired effect  of  causing
    34  individuals  to  transfer from existing employment with another business
    35  enterprise to similar employment with the business enterprise so  certi-
    36  fied,  and transferring existing employment from one or more other muni-
    37  cipalities, towns or villages in the state;
    38    (v) whether such enterprise is likely to enhance the economic  climate
    39  of the state; and
    40    (vi)  whether the commissioner of labor establishes that such business
    41  enterprise, during the ten years preceding the submission of an applica-
    42  tion for certification, has engaged in  a  substantial  violation  or  a
    43  pattern  of  violations of laws regulating unemployment insurance, work-
    44  ers' compensation, public work, child labor,  employment  of  minorities
    45  and  women, safety and health, or other laws for the protection of work-
    46  ers as determined by final judgment  of  a  judicial  or  administrative
    47  proceeding.
    48    2.  The  commissioner  of  economic development shall, in consultation
    49  with the director of the budget, the  commissioner  of  labor,  and  the
    50  commissioner of taxation and finance, establish a cost benefit analysis.
    51    3.  The  commissioner  of  economic development shall, in consultation
    52  with the director of the budget, the  commissioner  of  labor,  and  the
    53  commissioner  of  taxation  and finance, establish a program and propose
    54  legislation granting tax  exemptions  previously  applicable  to  empire
    55  zones  for  business  enterprises eligible under the cornerstone program

        S. 8524                             3
 
     1  established pursuant to this article, to the  governor  and  legislature
     2  within one hundred eighty days from the effective date of this article.
     3    §  957. Cornerstone development board.  1. The cornerstone development
     4  board is hereby created.
     5    2. Such board shall  consist  of  the  commissioner  of  taxation  and
     6  finance,  the  director of the budget, the commissioner of labor and two
     7  members to be appointed by the governor; one member to be  appointed  by
     8  the temporary president of the senate; one member to be appointed by the
     9  speaker  of  the  assembly;  one  member to be appointed by the minority
    10  leader of the senate and one member to  be  appointed  by  the  minority
    11  leader of the assembly.
    12    3.  The  governor  shall  designate  from among the voting members the
    13  chair of the board. Each member of the board shall be entitled to desig-
    14  nate a representative to attend meetings of the  board  in  his  or  her
    15  place,  and  to vote or otherwise act on his or her behalf in his or her
    16  absence.
    17    4. Notice of such designation shall be furnished  in  writing  to  the
    18  board by the designating member.
    19    5.  A  representative  shall  serve at the pleasure of the designating
    20  member.
    21    6. A representative shall not be authorized to delegate any of his  or
    22  her duties or functions to any other person.
    23    §  958.  Reporting  requirements.    1.  The  department  of audit and
    24  control, the department of taxation and finance and  the  department  of
    25  economic  development  shall  prepare  reports on the management and the
    26  economic and fiscal impact of the cornerstone program.
    27    2. The analysis of the fiscal and economic impact of the program shall
    28  include, but not be limited to: a review of the cost  of  providing  the
    29  tax  benefits  referred  to  in  this  article; progress of the program;
    30  number of tax credits claimed by each certified business; number of jobs
    31  created and/or retained by  each  business  and  all  other  information
    32  requested and not prohibited by law.
    33    3.  Such reports shall be transmitted to the governor and the legisla-
    34  ture by September first, two thousand eighteen and every year thereafter
    35  and shall be posted online for full public disclosure.
    36    § 3. This act shall take effect immediately; provided,  however,  that
    37  any  rules and regulations necessary to carry out the provisions of this
    38  act shall be promulgated before such effective date.
 
    39                                   PART B
 
    40    Section 1. This act shall be known and may be cited as the  "New  York
    41  state discovery act".
    42    §  2.    The  general municipal law is amended by adding a new article
    43  18-D to read as follows:
    44                                 ARTICLE 18-D
    45                      NEW YORK STATE DISCOVERY PROGRAM
    46  Section 972. New York state discovery program.
    47          973. Job development fund.
    48    § 972. New York state discovery program. 1. The New York state discov-
    49  ery program is hereby established.
    50    2. The commissioner of economic development shall, after  consultation
    51  with  the  director  of  the  budget, the commissioner of labor, and the
    52  commissioner of taxation and finance, promulgate rules and  regulations,
    53  which,  notwithstanding  any  provisions  to  the  contrary in the state

        S. 8524                             4

     1  administrative procedure act, may be  adopted  on  an  emergency  basis,
     2  relating to:
     3    (a) the application process;
     4    (b)  defining  types of businesses eligible, including but not limited
     5  to manufacturing, high-tech, bio-tech, clean-tech and agri-business;
     6    (c) limiting businesses to ten years of participation;
     7    (d) certification by the commissioner of economic  development  as  to
     8  the eligibility of business enterprises for benefits referred to in this
     9  section,  which shall be governed by criteria including, but not limited
    10  to:
    11    (i) requiring an eligible business to be a  start-up  business,  or  a
    12  business operating in the state for two years or less;
    13    (ii)  a business must offer internships to local high school students,
    14  BOCES students and college students per a plan developed by the  commis-
    15  sioner of economic development;
    16    (iii)  a  business must commit to increasing current employment levels
    17  to qualify for tax benefits;
    18    (iv) whether certification will have the undesired effect  of  causing
    19  individuals  to  transfer from existing employment with another business
    20  enterprise to similar employment with the business enterprise so  certi-
    21  fied,  and transferring existing employment from one or more other muni-
    22  cipalities, towns or villages in the state;
    23    (v) whether such enterprise is likely to enhance the economic  climate
    24  of the state;
    25    (vi)  whether the commissioner of labor establishes that such business
    26  enterprise, during the two years preceding the submission of an applica-
    27  tion for certification, has engaged in  a  substantial  violation  or  a
    28  pattern  of  violations of laws regulating unemployment insurance, work-
    29  ers' compensation, public work, child labor,  employment  of  minorities
    30  and  women, safety and health, or other laws for the protection of work-
    31  ers as determined by final judgment  of  a  judicial  or  administrative
    32  proceeding; and
    33    (vii) whether such business meets the requirements of the cost benefit
    34  analysis as established by the commissioner of economic development.
    35    3. The department of audit and control, the department of taxation and
    36  finance and the department of economic development shall prepare reports
    37  on  the  management  and the economic and fiscal impact of the discovery
    38  program. The analysis of the fiscal and economic impact of  the  program
    39  shall  include, but not be limited to: a review of the cost of providing
    40  the tax benefits referred to in this article; progress of  the  program;
    41  number of tax credits claimed by each certified business; number of jobs
    42  created  by  each  business  and all other information requested and not
    43  prohibited by law. Such reports shall be transmitted to the governor and
    44  the legislature by September first, two thousand nineteen and every year
    45  thereafter and shall be posted online for full public disclosure.
    46    4. The department of economic development shall provide grants  of  up
    47  to  two  thousand  dollars  for  every  internship  developed under this
    48  program, to be paid for out of  the  job  development  fund  established
    49  pursuant to this article. Such grant allocations shall be divided evenly
    50  between  the  certified  business  and  the corresponding institution of
    51  higher education to cover costs associated with the development of  such
    52  internships.
    53    §  973.  Job  development  fund. 1. There is hereby established in the
    54  joint custody of the commissioner of taxation and finance and the  state
    55  comptroller a fund to be known as the "job development fund".

        S. 8524                             5

     1    2.  The  fund shall consist of monies appropriated for the division of
     2  science, technology and innovation.
     3    3.  Moneys  of the fund shall be expended for the purposes of carrying
     4  out the provisions of section nine hundred seventy-two of this  article.
     5  Moneys  shall  be  paid  out of the fund on the audit and warrant of the
     6  state comptroller on vouchers approved by the division of science, tech-
     7  nology and innovation. Any  interest  received  by  the  comptroller  on
     8  moneys  on  deposit in the job development fund shall be retained in and
     9  become part of such fund.
    10    § 3. The tax law is amended by adding a new section 15-a  to  read  as
    11  follows:
    12    §  15-a. Discovery zone property tax credit. For a business enterprise
    13  which is first certified under section nine hundred seventy-two  of  the
    14  general municipal law on or after July first, two thousand eighteen, the
    15  credit  shall  be  for a period of ten years and shall not exceed thirty
    16  percent of the eligible real property taxes paid in the current  taxable
    17  year of eligibility.
    18    §  4. Section 210-B of the tax law is amended by adding two new subdi-
    19  visions 52 and 53 to read as follows:
    20    52. Discovery investment credit. (a) A taxpayer  shall  be  allowed  a
    21  credit,  to be computed as hereinafter provided, against the tax imposed
    22  by this article where  the  taxpayer  has  been  certified  pursuant  to
    23  section  nine  hundred  seventy-two  of the general municipal law.   The
    24  amount of such credit shall be twenty percent of the cost or other basis
    25  for federal income tax purposes of tangible personal property and  other
    26  tangible  property,  including  buildings  and  structural components of
    27  buildings, described in paragraph (b) of this subdivision, but  only  if
    28  the  acquisition, construction, reconstruction or erection of such prop-
    29  erty occurred or was commenced on or after the date of such  designation
    30  and prior to the expiration thereof. Provided, however, that in the case
    31  of  an  acquisition,  construction, reconstruction or erection which was
    32  commenced during such period and continued  or  completed  subsequently,
    33  the  credit  shall be twenty percent of the portion of the cost or other
    34  basis for federal income tax purposes attributable to such period, which
    35  portion shall be ascertained by multiplying such  cost  or  basis  by  a
    36  fraction  the  numerator  of  which  shall  be  the expenditures paid or
    37  incurred during such period for such purposes  and  the  denominator  of
    38  which  shall  be the total of all expenditures paid or incurred for such
    39  acquisition, construction, reconstruction or erection.
    40    (b) A credit shall be allowed under this subdivision with  respect  to
    41  tangible personal property and other tangible property, including build-
    42  ings  and  structural components of buildings which: (1) are depreciable
    43  pursuant to section one hundred  sixty-seven  of  the  Internal  Revenue
    44  Code,  (2) have a useful life of four years or more, (3) are acquired by
    45  purchase as defined in section  one  hundred  seventy-nine  (d)  of  the
    46  Internal  Revenue Code, and (4) are (i) principally used by the taxpayer
    47  in the production of goods  by  manufacturing,  processing,  assembling,
    48  refining, mining, extracting, farming, agriculture, horticulture, flori-
    49  culture, viticulture or commercial fishing, (ii) industrial waste treat-
    50  ment  facilities or air pollution control facilities used in the taxpay-
    51  er's trade or business, (iii) research and  development  property,  (iv)
    52  principally used in the ordinary course of the taxpayer's trade or busi-
    53  ness  as  a  broker  or  dealer  in connection with the purchase or sale
    54  (which shall include but not be limited to the issuance, entering  into,
    55  assumption,  offset,  assignment,  termination,  or transfer) of stocks,
    56  bonds or other securities as defined in section  four  hundred  seventy-

        S. 8524                             6
 
     1  five  (c)(2)  of the Internal Revenue Code, or of commodities as defined
     2  in section four hundred seventy-five (e) of the Internal  Revenue  Code,
     3  or  (v)  principally used in the ordinary course of the taxpayer's trade
     4  or  business  of  providing investment advisory services for a regulated
     5  investment company as defined in section eight hundred fifty-one of  the
     6  Internal  Revenue Code, or lending, loan arrangement or loan origination
     7  services to customers in connection with the  purchase  or  sale  (which
     8  shall include but not be limited to the issuance, entering into, assump-
     9  tion,  offset,  assignment,  termination,  or transfer) of securities as
    10  defined in section four hundred  seventy-five  (c)(2)  of  the  Internal
    11  Revenue Code. For purposes of clauses (iv) and (v) of this subparagraph,
    12  property  purchased  by  a  taxpayer affiliated with a regulated broker,
    13  dealer or registered investment adviser is allowed a credit  under  this
    14  subdivision  if the property is used by its affiliated regulated broker,
    15  dealer or registered investment adviser in accordance with this subdivi-
    16  sion. For purposes of determining if the property is principally used in
    17  qualifying uses, the uses by the taxpayer described in clauses (iv)  and
    18  (v) of this subparagraph may be aggregated. In addition, the uses by the
    19  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    20  investment adviser under either or both of those clauses may  be  aggre-
    21  gated.  Provided,  however,  a  taxpayer shall not be allowed the credit
    22  provided by clauses (iv) and (v) of this subparagraph unless (I)  eighty
    23  percent  or  more  of  the  employees  performing the administrative and
    24  support functions resulting from or related to the  qualifying  uses  of
    25  such  equipment are located in this state, or (II) the average number of
    26  employees that perform the administrative and support functions  result-
    27  ing  from  or  related  to the qualifying uses of such equipment and are
    28  located in this state during the taxable year for which  the  credit  is
    29  claimed  is  equal to or greater than ninety-five percent of the average
    30  number of employees that perform these functions and are located in this
    31  state during the thirty-six months immediately preceding  the  year  for
    32  which the credit is claimed, or (III) the number of employees located in
    33  this  state  during  the taxable year for which the credit is claimed is
    34  equal to or greater than ninety  percent  of  the  number  of  employees
    35  located  in  this state on December thirty-first, nineteen hundred nine-
    36  ty-eight or, if the taxpayer was not a calendar year taxpayer  in  nine-
    37  teen hundred ninety-eight, the last day of its first taxable year ending
    38  after  December  thirty-first,  nineteen  hundred  ninety-eight.  If the
    39  taxpayer becomes subject to tax in this state  after  the  taxable  year
    40  beginning  in  nineteen  hundred  ninety-eight, then the taxpayer is not
    41  required to satisfy  the  employment  test  provided  in  the  preceding
    42  sentence  of  this subparagraph for its first taxable year. For purposes
    43  of item (III) of this clause, the employment test will be based  on  the
    44  number  of  employees located in this state on the last day of the first
    45  taxable year the taxpayer is subject to tax in this state. If  the  uses
    46  of  the property must be aggregated to determine whether the property is
    47  principally used in qualifying uses, then either  each  affiliate  using
    48  the  property  must satisfy this employment test or this employment test
    49  must be satisfied through  the  aggregation  of  the  employees  of  the
    50  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    51  investment adviser using the property. For purposes of this subdivision,
    52  the term "goods" shall not include electricity.  For  purposes  of  this
    53  paragraph, manufacturing shall mean the process of working raw materials
    54  into  wares  suitable for  use or which gives new shapes, new quality or
    55  new combination to matter which already has gone through some artificial
    56  process by the use of machinery, tools,  appliances  and  other  similar

        S. 8524                             7
 
     1  equipment.  Property  used  in  the  production  of  goods shall include
     2  machinery, equipment or other tangible  property  which  is  principally
     3  used  in  the  repair and service of other machinery, equipment or other
     4  tangible  property used principally in the production of goods and shall
     5  include all facilities used in the production operation, including stor-
     6  age of material to be used in production and of the  products  that  are
     7  produced.  For  purposes  of this paragraph, the terms "industrial waste
     8  treatment facilities", "air pollution control facilities" and  "research
     9  and  development  property"  shall have the meanings ascribed thereto by
    10  clauses (ii) and (iii), respectively, of subparagraph four of this para-
    11  graph, and the provisions of subparagraph three of this paragraph  shall
    12  apply.
    13    (c)  A  taxpayer  shall not be allowed a credit under this subdivision
    14  with respect to any tangible personal property and other tangible  prop-
    15  erty,  including buildings and structural components of buildings, which
    16  it leases to any other person or corporation  except  where  a  taxpayer
    17  leases property to an affiliated regulated broker, dealer, or registered
    18  investment  adviser  that  uses  such property in accordance with clause
    19  (iv) or (v) of subparagraph four of paragraph (b) of  this  subdivision.
    20  For  purposes  of  the  preceding sentence, any contract or agreement to
    21  lease or rent or for a license to use such property shall be  considered
    22  a  lease.  Provided, however, in determining whether a taxpayer shall be
    23  allowed a credit under this subdivision with respect to  such  property,
    24  any  election  made  with  respect  to  such  property  pursuant  to the
    25  provisions of paragraph eight of subsection (f) of section  one  hundred
    26  sixty-eight  of  the  Internal  Revenue  Code,  as such paragraph was in
    27  effect for agreements entered into  prior  to  January  first,  nineteen
    28  hundred eighty-four, shall be disregarded.
    29    (d)  If  the  amount  of credit allowed under this subdivision for any
    30  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    31  may  be  carried over to the following year or years and may be deducted
    32  from the taxpayer's tax for such year or years. Any refund paid pursuant
    33  to this paragraph shall be deemed to be a refund of  an  overpayment  of
    34  tax  as  provided  in  section  six  hundred eighty-six of this chapter,
    35  provided, however, that no interest shall be paid thereon.
    36    53. Discovery wage tax credit. (a) A taxpayer shall be allowed a cred-
    37  it, to be computed as hereinafter provided, against the tax  imposed  by
    38  this  article, where the taxpayer has been certified pursuant to section
    39  nine hundred seventy-two of the general municipal  law.  The  amount  of
    40  such credit shall be as prescribed in paragraph (c) of this subdivision.
    41    (b)  "Discovery  wages" means wages paid by the taxpayer for full-time
    42  employment during a taxable year, provided that those wages are paid  by
    43  a certified business as defined by the commissioner of economic develop-
    44  ment as required in his or her responsibilities.
    45    (c)  The  credit  provided  in  this subdivision shall be equal to the
    46  product of the gross wages  paid  and  six  and  eighty-five  hundredths
    47  percent for each net new job created during the taxable year.
    48    (d)  "Net new job" shall be defined as each job that exceeds the aver-
    49  age number of individuals employed full-time  by  the  taxpayer  in  the
    50  previous taxable year.
    51    (e) If the amount of this credit and carryovers of such credit allowed
    52  under  this subdivision for any taxable year shall exceed the taxpayer's
    53  tax for such year, the excess, as well as any  part  of  the  credit  or
    54  carryovers  of  such credit, or both, which may not be deducted from the
    55  tax otherwise due by reason of paragraph (c) of this subdivision, may be

        S. 8524                             8
 
     1  carried over to the following year or years and may be deducted from the
     2  taxpayer's tax for such year or years.
     3    §  5.  Section  606  of  the  tax  law  is  amended  by adding two new
     4  subsections (j-2) and (j-3) to read as follows:
     5    (j-2) Discovery investment credit. (1) A taxpayer shall be  allowed  a
     6  credit,  to be computed as hereinafter provided, against the tax imposed
     7  by this article where  the  taxpayer  has  been  certified  pursuant  to
     8  section  nine  hundred  seventy-two  of  the  general municipal law. The
     9  amount of such credit shall be twenty percent of the cost or other basis
    10  for federal income tax purposes of tangible personal property and  other
    11  tangible  property,  including  buildings  and  structural components of
    12  buildings, described in paragraph two of this subsection,  but  only  if
    13  the  acquisition, construction, reconstruction or erection of such prop-
    14  erty occurred or was commenced on or after the date of such  designation
    15  and prior to the expiration thereof. Provided, however, that in the case
    16  of  an  acquisition,  construction, reconstruction or erection which was
    17  commenced during such period and continued  or  completed  subsequently,
    18  the  credit  shall be twenty percent of the portion of the cost or other
    19  basis for federal income tax purposes attributable to such period, which
    20  portion shall be ascertained by multiplying such  cost  or  basis  by  a
    21  fraction  the  numerator  of  which  shall  be  the expenditures paid or
    22  incurred during such period for such purposes  and  the  denominator  of
    23  which  shall  be the total of all expenditures paid or incurred for such
    24  acquisition, construction, reconstruction or erection.
    25    (2) A credit shall be allowed under this subsection  with  respect  to
    26  tangible personal property and other tangible property, including build-
    27  ings  and  structural components of buildings which: (A) are depreciable
    28  pursuant to section one hundred  sixty-seven  of  the  Internal  Revenue
    29  Code,  (B) have a useful life of four years or more, (C) are acquired by
    30  purchase as defined in section  one  hundred  seventy-nine  (d)  of  the
    31  Internal  Revenue Code, and (D) are (i) principally used by the taxpayer
    32  in the production of goods  by  manufacturing,  processing,  assembling,
    33  refining, mining, extracting, farming, agriculture, horticulture, flori-
    34  culture, viticulture or commercial fishing, (ii) industrial waste treat-
    35  ment  facilities or air pollution control facilities used in the taxpay-
    36  er's trade or business, (iii) research and  development  property,  (iv)
    37  principally used in the ordinary course of the taxpayer's trade or busi-
    38  ness  as  a  broker  or  dealer  in connection with the purchase or sale
    39  (which shall include but not be limited to the issuance, entering  into,
    40  assumption,  offset,  assignment,  termination,  or transfer) of stocks,
    41  bonds or other securities as defined in section  four  hundred  seventy-
    42  five  (c)(2)  of the Internal Revenue Code, or of commodities as defined
    43  in section four hundred seventy-five (e) of the Internal  Revenue  Code,
    44  or  (v)  principally used in the ordinary course of the taxpayer's trade
    45  or business of providing  investment  advisory  services  for  regulated
    46  investment  company as defined in section eight hundred fifty-one of the
    47  Internal Revenue Code, or lending, loan arrangement or loan  origination
    48  services  to  customers  in  connection with the purchase or sale (which
    49  shall include but not be limited to the issuance, entering into, assump-
    50  tion, offset, assignment, termination, or  transfer)  of  securities  as
    51  defined  in  section  four  hundred  seventy-five(c)(2)  of the Internal
    52  Revenue Code. For purposes of clauses (iv) and (v) of this subparagraph,
    53  property purchased by a taxpayer affiliated  with  a  regulated  broker,
    54  dealer  or  registered investment adviser is allowed a credit under this
    55  subsection if the property is used by its affiliated  regulated  broker,
    56  dealer   or  registered  investment  adviser  in  accordance  with  this

        S. 8524                             9

     1  subsection. For purposes of determining if the property  is  principally
     2  used  in  qualifying uses, the uses by the taxpayer described in clauses
     3  (iv) and (v) of this subparagraph may be aggregated.  In  addition,  the
     4  uses  by  the  taxpayer,  its  affiliated  regulated broker, dealer, and
     5  registered investment adviser under either or both of those clauses  may
     6  be  aggregated.  Provided,  however, a taxpayer shall not be allowed the
     7  credit provided by clauses (iv) and (v) of this subparagraph unless  (I)
     8  eighty  percent  or  more of the employees performing the administrative
     9  and support functions resulting from or related to the  qualifying  uses
    10  of  such equipment are located in this state, or (II) the average number
    11  of employees that  perform  the  administrative  and  support  functions
    12  resulting  from  or related to the qualifying uses of such equipment and
    13  are located in this state during the taxable year for which  the  credit
    14  is  claimed is equal to or greater than ninety-five percent of the aver-
    15  age number of employees that perform these functions and are located  in
    16  this  state  during the thirty-six months immediately preceding the year
    17  for which the credit is  claimed,  or  (III)  the  number  of  employees
    18  located  in  this  state during the taxable year for which the credit is
    19  claimed is equal to or greater than ninety  percent  of  the  number  of
    20  employees  located  in  this  state  on  December thirty-first, nineteen
    21  hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
    22  er in nineteen hundred ninety-eight, the last day of its  first  taxable
    23  year  ending after December thirty-first, nineteen hundred ninety-eight.
    24  If the taxpayer becomes subject to tax in this state after  the  taxable
    25  year  beginning  in  nineteen hundred ninety-eight, then the taxpayer is
    26  not required to satisfy the employment test provided  in  the  preceding
    27  sentence  of  this subparagraph for its first taxable year. For purposes
    28  of item (III) of this clause, the employment test will be based  on  the
    29  number  of  employees located in this state on the last day of the first
    30  taxable year the taxpayer is subject to tax in this state. If  the  uses
    31  of  the property must be aggregated to determine whether the property is
    32  principally used in qualifying uses, then either  each  affiliate  using
    33  the  property  must satisfy this employment test or this employment test
    34  must be satisfied through  the  aggregation  of  the  employees  of  the
    35  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    36  investment advisor using the property. For purposes of this  subsection,
    37  the  term  "goods"  shall  not include electricity. For purposes of this
    38  paragraph, manufacturing shall mean the process of working raw materials
    39  into wares suitable for use or which gives new shapes,  new  quality  or
    40  new combination to matter which already has gone through some artificial
    41  process  by  the  use  of machinery, tools, appliances and other similar
    42  equipment. Property used  in  the  production  of  goods  shall  include
    43  machinery,  equipment  or  other  tangible property which is principally
    44  used in the repair and service of other machinery,  equipment  or  other
    45  tangible  property used principally in the production of goods and shall
    46  include all facilities used in the production operation, including stor-
    47  age of material to be used in production and of the  products  that  are
    48  produced.  For  purposes  of this paragraph, the terms "industrial waste
    49  treatment facilities", "air pollution control facilities" and  "research
    50  and  development  property"  shall have the meanings ascribed thereto by
    51  clauses (ii) and (iii), respectively, of subparagraph (D) of this  para-
    52  graph, and the provisions of subparagraph (C) of this paragraph.
    53    (3)  A  taxpayer  shall  not be allowed a credit under this subsection
    54  with respect to any tangible personal property and other tangible  prop-
    55  erty,  including buildings and structural components of buildings, which
    56  it leases to any other person or corporation  except  where  a  taxpayer

        S. 8524                            10
 
     1  leases property to an affiliated regulated broker, dealer, or registered
     2  investment  adviser  that  uses  such property in accordance with clause
     3  (iv) or (v) of subparagraph (D) of paragraph two of this subsection. For
     4  purposes  of  the preceding sentence, any contract or agreement to lease
     5  or rent or for a license to use such  property  shall  be  considered  a
     6  lease.  Provided,  however,  in  determining whether a taxpayer shall be
     7  allowed a credit under this subsection with respect  to  such  property,
     8  any  election  made  with  respect  to  such  property  pursuant  to the
     9  provisions of paragraph eight of subsection (f) of section  one  hundred
    10  sixty-eight  of  the  Internal  Revenue  Code,  as such paragraph was in
    11  effect for agreements entered into  prior  to  January  first,  nineteen
    12  hundred eighty-four, shall be disregarded.
    13    (4)  If  the  amount  of  credit allowed under this subsection for any
    14  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    15  may  be  carried over to the following year or years and may be deducted
    16  from the taxpayer's tax for such year or  years. Any refund paid  pursu-
    17  ant  to  this paragraph shall be deemed to be a refund of an overpayment
    18  of tax as provided in section six hundred eighty-six  of  this  chapter,
    19  provided, however, that no interest shall be paid thereon.
    20    (j-3)  Discovery  wage  tax  credit. (1) A taxpayer shall be allowed a
    21  credit, to be computed as hereinafter provided, against the tax  imposed
    22  by  this  article,  where  the  taxpayer  has been certified pursuant to
    23  section nine hundred seventy-two  of  the  general  municipal  law.  The
    24  amount  of such credit shall be as prescribed in paragraph three of this
    25  subsection.
    26    (2) "Discovery wages" means wages paid by the taxpayer  for  full-time
    27  employment  during a taxable year, provided that those wages are paid by
    28  a certified business as defined by the commissioner of economic develop-
    29  ment as required in his or her responsibilities.
    30    (3) The credit provided in this subsection shall be equal to the prod-
    31  uct of the gross wages paid and six and eighty-five  hundredths  percent
    32  for each net new job created during the taxable year.
    33    (4)  "Net new job" shall be defined as each job that exceeds the aver-
    34  age number of individuals employed full-time  by  the  taxpayer  in  the
    35  previous taxable year.
    36    (5) If the amount of this credit and carryovers of such credit allowed
    37  under  this  subsection for any taxable year shall exceed the taxpayer's
    38  tax for such year, the excess, as well as any  part  of  the  credit  or
    39  carryovers  of  such credit, or both, which may not be deducted from the
    40  tax otherwise due by reason of paragraph three of this  subsection,  may
    41  be  carried over to the following year or years and may be deducted from
    42  the taxpayer's tax for such year or years.
    43    § 6. Section 1511 of the tax law is amended by adding two new subdivi-
    44  sions (dd) and (ee) to read as follows:
    45    (dd) Discovery investment credit.  (1) A taxpayer shall be  allowed  a
    46  credit,  to be computed as hereinafter provided, against the tax imposed
    47  by this article where  the  taxpayer  has  been  certified  pursuant  to
    48  section  nine  hundred  seventy-two  of  the  general municipal law. The
    49  amount of such credit shall be twenty percent of the cost or other basis
    50  for federal income tax purposes of tangible personal property and  other
    51  tangible  property,  including  buildings  and  structural components of
    52  buildings, described in paragraph two of this subdivision, but  only  if
    53  the  acquisition, construction, reconstruction or erection of such prop-
    54  erty occurred or was commenced on or after the date of such  designation
    55  and prior to the expiration thereof. Provided, however, that in the case
    56  of  an  acquisition,  construction, reconstruction or erection which was

        S. 8524                            11
 
     1  commenced during such period and continued  or  completed  subsequently,
     2  the  credit  shall be twenty percent of the portion of the cost or other
     3  basis for federal income tax purposes attributable to such period, which
     4  portion  shall  be  ascertained  by  multiplying such cost or basis by a
     5  fraction the numerator of  which  shall  be  the  expenditures  paid  or
     6  incurred  during  such  period  for such purposes and the denominator of
     7  which shall be the total of all expenditures paid or incurred  for  such
     8  acquisition, construction, reconstruction or erection.
     9    (2)  A  credit shall be allowed under this subdivision with respect to
    10  tangible personal property and other tangible property, including build-
    11  ings and structural components of buildings which: (A)  are  depreciable
    12  pursuant  to  section  one  hundred  sixty-seven of the Internal Revenue
    13  Code, (B) have a useful life of four years or more, (C) are acquired  by
    14  purchase  as  defined  in  section  one  hundred seventy-nine (d) of the
    15  Internal Revenue Code, and (D) are (i) principally used by the  taxpayer
    16  in  the  production  of  goods by manufacturing, processing, assembling,
    17  refining, mining, extracting, farming, agriculture, horticulture, flori-
    18  culture, viticulture or commercial fishing, (ii) industrial waste treat-
    19  ment facilities or air pollution control facilities used in the  taxpay-
    20  er's  trade  or  business, (iii) research and development property, (iv)
    21  principally used in the ordinary course of the taxpayer's trade or busi-
    22  ness as a broker or dealer in  connection  with  the  purchase  or  sale
    23  (which  shall include but not be limited to the issuance, entering into,
    24  assumption, offset, assignment, termination,  or  transfer)  of  stocks,
    25  bonds   or   other   securities  as  defined  in  section  four  hundred
    26  seventy-five(c)(2) of the Internal Revenue Code, or  of  commodities  as
    27  defined in section four hundred seventy-five (e) of the Internal Revenue
    28  Code,  or  (v) principally used in the ordinary course of the taxpayer's
    29  trade or business of providing investment advisory services for a  regu-
    30  lated  investment  company as defined in section eight hundred fifty-one
    31  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    32  ination services to customers in connection with the  purchase  or  sale
    33  (which  shall include but not be limited to the issuance, entering into,
    34  assumption, offset, assignment, termination, or transfer) of  securities
    35  as  defined  in  section four hundred seventy-five(c)(2) of the Internal
    36  Revenue Code. For purposes of clauses (iv) and (v) of this subparagraph,
    37  property purchased by a taxpayer affiliated  with  a  regulated  broker,
    38  dealer  or  registered investment adviser is allowed a credit under this
    39  subdivision if the property is used by its affiliated regulated  broker,
    40  dealer or registered investment adviser in accordance with this subdivi-
    41  sion. For purposes of determining if the property is principally used in
    42  qualifying  uses, the uses by the taxpayer described in clauses (iv) and
    43  (v) of this subparagraph may be aggregated. In addition, the uses by the
    44  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    45  investment  adviser  under either or both of those clauses may be aggre-
    46  gated. Provided, however, a taxpayer shall not  be  allowed  the  credit
    47  provided  by clauses (iv) and (v) of this subparagraph unless (I) eighty
    48  percent or more of the employees  performing  the    administrative  and
    49  support  functions  resulting  from or related to the qualifying uses of
    50  such equipment are located in this state, or (II) the average number  of
    51  employees  that perform the administrative and support functions result-
    52  ing from or related to the qualifying uses of  such  equipment  and  are
    53  located  in  this  state during the taxable year for which the credit is
    54  claimed is equal to or greater than ninety-five percent of  the  average
    55  number of employees that perform these functions and are located in this
    56  state  during  the  thirty-six months immediately preceding the year for

        S. 8524                            12
 
     1  which the credit is claimed, or (III) the number of employees located in
     2  this state during the taxable year for which the credit  is  claimed  is
     3  equal  to  or  greater  than  ninety  percent of the number of employees
     4  located  in  this state on December thirty-first, nineteen hundred nine-
     5  ty-eight or, if the taxpayer was not a calendar year taxpayer  in  nine-
     6  teen hundred ninety-eight, the last day of its first taxable year ending
     7  after  December  thirty-first,  nineteen  hundred  ninety-eight.  If the
     8  taxpayer becomes subject to tax in this state  after  the  taxable  year
     9  beginning  in  nineteen  hundred  ninety-eight, then the taxpayer is not
    10  required to satisfy  the  employment  test  provided  in  the  preceding
    11  sentence  of  this subparagraph for its first taxable year. For purposes
    12  of item (III) of this clause, the employment test will be based  on  the
    13  number  of  employees located in this state on the last day of the first
    14  taxable year the taxpayer is subject to tax in this state. If  the  uses
    15  of  the property must be aggregated to determine whether the property is
    16  principally used in qualifying uses, then either  each  affiliate  using
    17  the  property  must satisfy this employment test or this employment test
    18  must be satisfied through  the  aggregation  of  the  employees  of  the
    19  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    20  investment adviser using the property. For purposes of this subdivision,
    21  the term "goods" shall not include electricity.  For  purposes  of  this
    22  paragraph, manufacturing shall mean the process of working raw materials
    23  into  wares  suitable  for use or which gives new shapes, new quality or
    24  new combination to matter which already has gone through some artificial
    25  process by the use of machinery, tools,  appliances  and  other  similar
    26  equipment.  Property  used  in  the  production  of  goods shall include
    27  machinery, equipment or other tangible  property  which  is  principally
    28  used  in  the  repair and service of other machinery, equipment or other
    29  tangible property used principally in the production of goods and  shall
    30  include all facilities used in the production operation, including stor-
    31  age  of  material  to be used in production and of the products that are
    32  produced. For purposes of this paragraph, the  terms  "industrial  waste
    33  treatment  facilities", "air pollution control facilities" and "research
    34  and development property" shall have the meanings  ascribed  thereto  by
    35  clauses  (ii) and (iii), respectively, of subparagraph (D) of this para-
    36  graph, and the provisions of subparagraph (C) of  this  paragraph  shall
    37  apply.
    38    (3)  A  taxpayer  shall not be allowed a credit under this subdivision
    39  with respect to any tangible personal property and other tangible  prop-
    40  erty,  including buildings and structural components of buildings, which
    41  it leases to any other person or corporation  except  where  a  taxpayer
    42  leases property to an affiliated regulated broker, dealer, or registered
    43  investment  adviser  that  uses  such property in accordance with clause
    44  (iv) or (v) of subparagraph (D) of paragraph two  of  this  subdivision.
    45  For  purposes  of  the  preceding sentence, any contract or agreement to
    46  lease or rent or for a license to use such property shall be  considered
    47  a  lease.  Provided, however, in determining whether a taxpayer shall be
    48  allowed a credit under this subdivision with respect to  such  property,
    49  any  election  made  with  respect  to  such  property  pursuant  to the
    50  provisions of paragraph eight of subsection (f) of section  one  hundred
    51  sixty-eight  of  the  Internal  Revenue  Code,  as such paragraph was in
    52  effect for agreements entered into  prior  to  January  first,  nineteen
    53  hundred eighty-four, shall be disregarded.
    54    (4)  If  the  amount  of credit allowed under this subdivision for any
    55  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    56  may  be  carried over to the following year or years and may be deducted

        S. 8524                            13
 
     1  from the taxpayer's tax for such year or years. Any refund paid pursuant
     2  to this paragraph shall be deemed to be a refund of  an  overpayment  of
     3  tax  as  provided  in  section  six  hundred eighty-six of this chapter,
     4  provided, however, that no interest shall be paid thereon.
     5    (ee)  Discovery  wage  tax  credit.  (1) A taxpayer shall be allowed a
     6  credit, to be computed as hereinafter provided, against the tax  imposed
     7  by  this  article,  where  the  taxpayer  has been certified pursuant to
     8  section nine hundred seventy-two  of  the  general  municipal  law.  The
     9  amount  of such credit shall be as prescribed in paragraph three of this
    10  subdivision.
    11    (2) "Discovery wages" means wages paid by the taxpayer  for  full-time
    12  employment  during a taxable year, provided that those wages are paid by
    13  a certified business as defined by the commissioner of economic develop-
    14  ment as required in his or her responsibilities.
    15    (3) The credit provided in this subdivision  shall  be  equal  to  the
    16  product  of  the  gross  wages  paid  and six and eighty-five hundredths
    17  percent for each net new job created during the taxable year.
    18    (4) "Net new job" shall be defined as each job that exceeds the  aver-
    19  age  number  of  individuals  employed  full-time by the taxpayer in the
    20  previous taxable year.
    21    (5) If the amount of this credit and carryovers of such credit allowed
    22  under this subdivision for any taxable year shall exceed the  taxpayer's
    23  tax  for  such  year,  the  excess, as well as any part of the credit or
    24  carryovers of such credit, or both, which may not be deducted  from  the
    25  tax  otherwise due by reason of paragraph three of this subdivision, may
    26  be carried over to the following year or years and may be deducted  from
    27  the taxpayer's tax for such year or years.
    28    §  7.  This act shall take effect immediately; provided, however, that
    29  any rules and regulations necessary to carry out the provisions of  this
    30  act  shall  be  promulgated  by the commissioner of economic development
    31  before such effective date.
 
    32                                   PART C
 
    33    Section 1. The opening paragraph of paragraph (a) of subdivision 1  of
    34  section  210 of the tax law, as amended by section 10 of part T of chap-
    35  ter 59 of the laws of 2015, is amended to read as follows:
    36    For  taxable  years  beginning  before  January  first,  two  thousand
    37  sixteen,  the  amount  prescribed by this paragraph shall be computed at
    38  the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
    39  income  base. For taxable years beginning on or after January first, two
    40  thousand [sixteen] seventeen, the amount prescribed  by  this  paragraph
    41  shall  be  [six  and  one-half]  five and nine hundredths percent of the
    42  taxpayer's business income base. The  taxpayer's  business  income  base
    43  shall  mean  the  portion  of the taxpayer's business income apportioned
    44  within the state as hereinafter provided. However,  in  the  case  of  a
    45  small  business  taxpayer,  as defined in paragraph (f) of this subdivi-
    46  sion, the amount prescribed by this paragraph shall be computed pursuant
    47  to subparagraph (iv) of this paragraph and in the case of a  manufactur-
    48  er,  as  defined  in  subparagraph  (vi)  of  this paragraph, the amount
    49  prescribed by this paragraph shall be computed pursuant to  subparagraph
    50  (vi)  of  this paragraph, and, in the case of a qualified emerging tech-
    51  nology company, as defined in subparagraph (vii) of this paragraph,  the
    52  amount  prescribed  by  this  paragraph  shall  be  computed pursuant to
    53  subparagraph (vii) of this paragraph.

        S. 8524                            14
 
     1    § 2. Subparagraph (iv) of paragraph (a) of subdivision  1  of  section
     2  210  of the tax law, as amended by section 12 of part A of chapter 59 of
     3  the laws of 2014, is amended to read as follows:
     4    (iv)  (A)  for taxable years beginning before January first, two thou-
     5  sand sixteen, if the business income base is not more than  two  hundred
     6  ninety  thousand dollars the amount shall be six and one-half percent of
     7  the business income base; if the business income base is more  than  two
     8  hundred  ninety thousand dollars but not over three hundred ninety thou-
     9  sand dollars the amount shall be the sum of (1) eighteen thousand  eight
    10  hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
    11  the business income base over two hundred ninety  thousand  dollars  but
    12  not  over three hundred ninety thousand dollars and (3) four and thirty-
    13  five hundredths percent of the excess of the business income  base  over
    14  three  hundred  fifty thousand dollars but not over three hundred ninety
    15  thousand dollars;
    16    (B) for taxable years beginning on or after January first,  two  thou-
    17  sand  seventeen  and before January first, two thousand eighteen, if the
    18  business income base is not more than five hundred thousand dollars  the
    19  amount  shall  be  three  and one-quarter percent of the business income
    20  base; if the business income base is more  than  five  hundred  thousand
    21  dollars  but  not  over six hundred thousand dollars the amount shall be
    22  the sum of (1) sixteen thousand two hundred fifty dollars, (2)  six  and
    23  one-half  percent  of  the  excess of the business income base over five
    24  hundred thousand dollars but not over six hundred thousand  dollars  and
    25  (3) thirty-two and one-half percent of the excess of the business income
    26  base  over  five hundred fifty thousand dollars but not over six hundred
    27  thousand dollars;
    28    (C) for taxable years beginning on or after January first,  two  thou-
    29  sand  eighteen  and  before January first, two thousand nineteen, if the
    30  business income base is not more than five hundred thousand dollars  the
    31  amount shall be two and nine-tenths percent of the business income base;
    32  if  the  business income base is more than five hundred thousand dollars
    33  but not over six hundred thousand dollars the amount shall be the sum of
    34  (1) fourteen thousand five hundred dollars, (2) six and one-half percent
    35  of the excess of the business income base  over  five  hundred  thousand
    36  dollars  but  not  over  six hundred thousand dollars and (3) thirty-six
    37  percent of the excess of the business  income  base  over  five  hundred
    38  fifty thousand dollars but not over six hundred thousand dollars;
    39    (D)  for  taxable years beginning on or after January first, two thou-
    40  sand nineteen and before January first,  two  thousand  twenty,  if  the
    41  business  income base is not more than five hundred thousand dollars the
    42  amount shall be two and one-half percent of the business income base; if
    43  the business income base is more than five hundred thousand dollars  but
    44  not over six hundred thousand dollars the amount shall be the sum of (1)
    45  twelve  thousand  five  hundred dollars, (2) six and one-half percent of
    46  the excess of the  business  income  base  over  five  hundred  thousand
    47  dollars  but not over six hundred thousand dollars and (3) forty percent
    48  of the excess of the business income base over five hundred fifty  thou-
    49  sand dollars but not over six hundred thousand dollars; and
    50    (E)  for  taxable years beginning on or after January first, two thou-
    51  sand twenty, if the business income base is not more  than  six  hundred
    52  thousand dollars the amount shall be zero percent.
    53    § 3. Paragraph 1 of subdivision (a) of section 1502 of the tax law, as
    54  amended  by  section  4  of part N of chapter 60 of the laws of 2007, is
    55  amended to read as follows:

        S. 8524                            15
 
     1    (1) for taxable years beginning before July first, two thousand,  nine
     2  percent  of  the  taxpayer's entire net income, or portion thereof allo-
     3  cated within this state, for the taxable year, or part  thereof,  except
     4  that  for  taxable  years  beginning  prior  to  January first, nineteen
     5  hundred  seventy-eight,  the rate shall be four and five-tenths percent;
     6  for taxable years beginning  after  June  thirtieth,  two  thousand  and
     7  before  July  first, two thousand one, eight and one-half percent of the
     8  taxpayer's entire net income, or portion thereof allocated  within  this
     9  state,  for  the taxable year, or part thereof; for taxable years begin-
    10  ning after June thirtieth, two thousand one and before July  first,  two
    11  thousand  two,  eight  percent  of  the taxpayer's entire net income, or
    12  portion thereof allocated within this state, for the  taxable  year,  or
    13  part  thereof;  for  taxable  years  beginning after June thirtieth, two
    14  thousand two and before January first, two  thousand  seven,  seven  and
    15  one-half percent of the taxpayer's entire net income, or portion thereof
    16  allocated  within  this  state,  for  the taxable year, or part thereof;
    17  [and] for taxable years beginning [on or] after January first, two thou-
    18  sand seven and before January first, two thousand seventeen,  seven  and
    19  one-tenth percent of the taxpayer's entire net income, or portion there-
    20  of  allocated  within this state, for the taxable year, or part thereof;
    21  and for taxable years beginning on or after January first, two  thousand
    22  seventeen,  six and eighty-five one hundredths percent of the taxpayer's
    23  entire net income, or portion thereof allocated within this  state,  for
    24  the taxable year, or part thereof; or
    25    § 4. Subparagraph 1 of paragraph (b) of subdivision 1 of section 186-a
    26  of  the  tax law, as amended by section 4 of part Y of chapter 63 of the
    27  laws of 2000, is amended to read as follows:
    28    (1) two and five-tenths percent on and after January first, two  thou-
    29  sand through December thirty-first, two thousand, two and forty-five one
    30  hundredths percent from January first, two thousand one through December
    31  thirty-first, two thousand one, two and four-tenths percent from January
    32  first, two thousand two through December thirty-first, two thousand two,
    33  two and twenty-five one hundredths percent from January first, two thou-
    34  sand  three  through  December thirty-first, two thousand three, two and
    35  one hundred twenty-five one thousandths percent from January first,  two
    36  thousand  four  through  December thirty-first, two thousand four [and],
    37  two percent commencing January first, two  thousand  five  and  one  and
    38  one-half  percent  commencing  January first, two thousand seventeen and
    39  thereafter of that portion of its gross income derived from  the  trans-
    40  portation,  transmission  or distribution of gas or electricity by means
    41  of conduits, mains, pipes, wires, lines or the like and
    42    § 5. Subparagraph 1 of paragraph (a) of subdivision 2 of section 186-e
    43  of the tax law, as amended by section 2 of part P of chapter 59  of  the
    44  laws of 2015, is amended to read as follows:
    45    (1)  There is hereby imposed an excise tax on the sale of telecommuni-
    46  cation  services,  except  for  the  sale  of  mobile  telecommunication
    47  services  that  are  subject to tax under subparagraph two of this para-
    48  graph, by any person which is a provider of telecommunication  services,
    49  to  be  paid  by  such person, at the rate of three and one-half percent
    50  prior to October first, nineteen hundred ninety-eight,  three  and  one-
    51  quarter  percent  from  October  first,  nineteen  hundred  ninety-eight
    52  through December thirty-first, nineteen hundred ninety-nine,  [and]  two
    53  and  one-half  percent  [on and] after January first, two thousand five,
    54  and two percent on and after January first, two  thousand  seventeen  of
    55  gross  receipt from: (i) any intrastate telecommunication services; (ii)
    56  any interstate and international telecommunication services (other  than

        S. 8524                            16
 
     1  interstate  and  international private telecommunication services) which
     2  originate  or  terminate  in  this  state  and  which  telecommunication
     3  services  are  charged to a service address in this state, regardless of
     4  where  the  amounts  charged  for such services are billed or ultimately
     5  paid; and (iii) interstate and international  private  telecommunication
     6  services, the gross receipt to which the tax shall apply shall be deter-
     7  mined as prescribed in subdivision three of this section.
     8    § 6. This act shall take effect immediately and shall apply to taxable
     9  years beginning on or after January 1, 2018, provided, however, that any
    10  rules  and regulations necessary to carry out the provisions of this act
    11  shall be promulgated before such effective date.
    12    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    13  sion, section or part of this act shall be  adjudged  by  any  court  of
    14  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    15  impair, or invalidate the remainder thereof, but shall  be  confined  in
    16  its  operation  to the clause, sentence, paragraph, subdivision, section
    17  or part thereof directly involved in the controversy in which such judg-
    18  ment shall have been rendered. It is hereby declared to be the intent of
    19  the legislature that this act would  have  been  enacted  even  if  such
    20  invalid provisions had not been included herein.
    21    §  3.  This act shall take effect immediately, provided, however, that
    22  the applicable effective date of Parts A through C of this act shall  be
    23  as specifically set forth in the last section of such Parts.
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