S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2058

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. PARMENT -- read once and referred to the Commit-
  tee on Energy

AN ACT to amend the general municipal law and the tax law,  in  relation
  to  making municipal clean energy research and development enterprises
  eligible for the qualified empire zone enterprise tax credit

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  (a)  of section 963 of the general municipal
law, as amended by chapter 161 of the laws of 2005, is amended  to  read
as follows:
  (a) The local empire zone certification officer shall not serve on the
local  empire  zone  administrative  board  and shall, pursuant to regu-
lations promulgated pursuant to this  article,  certify  in  conjunction
with  the  commissioner  and  the  commissioner of labor, those business
enterprises which have been  approved  for  certification  by  the  zone
administrative  board  as  eligible  to  receive benefits referred to in
section nine hundred sixty-six of this article; provided, however,  that
such  certification  shall  be  governed  by criteria including, but not
limited to, (i)  whether  the  business  enterprise,  if  certified,  is
reasonably  likely to create new employment or prevent a loss of employ-
ment in the zone, (ii) whether such new employment opportunities will be
for individuals who will perform a substantial part of their  employment
activities  in the zone, (iii) whether certification will have the unde-
sired effect of causing individuals to transfer from existing employment
with another business enterprise to similar employment with the business
enterprise so certified, and transferring existing employment  from  one
or  more other municipalities, towns or villages in the state, or trans-
ferring existing employment from one or more  other  businesses  in  the
zone,  (iv)  whether  such  enterprise is likely to enhance the economic
climate of the zone, (v) whether such business  enterprise,  during  the
three  years  preceding  the  submission  of  an application for certif-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04735-01-9
              

A. 2058                             2

ication, has  engaged  in  a  substantial  violation  or  a  pattern  of
violations  of  laws  regulating  environmental protection, unemployment
insurance, workers compensation, public work, child labor, employment of
minorities  and  women,  safety  and  health,  or  other  laws  for  the
protection of workers as determined by final judgment of a  judicial  or
administrative  proceeding;  PROVIDED,  HOWEVER,  FOR  THE  PURPOSES  OF
SECTION FIFTEEN OF THE TAX LAW, A MUNICIPAL CORPORATION SHALL BE  DEEMED
A BUSINESS ENTERPRISE ELIGIBLE FOR CERTIFICATION WITH RESPECT TO A CLEAN
ENERGY RESEARCH AND DEVELOPMENT ENTERPRISE; and provided further, howev-
er, that any business enterprise that applies for any tax, utility rate,
or management assistance benefits provided by this article shall provide
ninety  days  written  notice to the commissioner, the local empire zone
certification officer, the local empire zone  administrative  board  and
the  employees  of  such  business  enterprise of any intent to close or
partially close a facility within the empire zone. For the  purposes  of
this  subdivision,  "closing"  shall  mean  the permanent termination of
employment at a business facility, and "partial closing" shall mean  the
permanent  termination  of  a  portion  of  the employment at a business
facility that will either immediately reduce the work force by at  least
fifty  employees or will reduce the work force by at least fifty percent
over a one-year  period,  (vi)  whether  such  business  will  meet  the
requirements  of  the cost benefit analysis as established in this arti-
cle, and (vii) if the certification officer, the commissioner,  and  the
commissioners  of  taxation  and finance and of labor establish that the
business enterprise has been found in  a  criminal  proceeding  to  have
violated,  in  the  previous three years, any of the laws referred to in
paragraph (v) of this subdivision or regulations promulgated pursuant to
such laws, the conditions of any permit issued  thereunder,  or  similar
statute,  regulation,  order or permit condition of any other government
agency, foreign or domestic, the certification  officer  in  conjunction
with  the commissioners of taxation and finance and of labor, such busi-
ness shall not be certified.
  S 2. Section 14 of the tax law is amended by adding a new  subdivision
(a-1) to read as follows:
  (A-1)  MUNICIPAL CLEAN ENERGY RESEARCH AND DEVELOPMENT ENTERPRISE. FOR
PURPOSES OF A CLEAN ENERGY RESEARCH AND DEVELOPMENT ENTERPRISE, WHICH IS
CERTIFIED UNDER ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW  AND  IS
OWNED  AND  OPERATED  BY A MUNICIPAL CORPORATION, THE PROVISIONS OF THIS
SECTION AND SECTION FIFTEEN OF THIS ARTICLE  SHALL  BE  DEEMED  TO  ONLY
APPLY  TO  SUCH  ENTERPRISE  AND SHALL NOT APPLY TO THE MUNICIPAL CORPO-
RATION.
  S 3. Subdivision (a) of section 15 of  the  tax  law,  as  amended  by
section  5  of  part  A of chapter 63 of the laws of 2005, is amended to
read as follows:
  (a) Allowance of credit. A taxpayer which is a qualified  empire  zone
enterprise  (QEZE),  or which is a sole proprietor of a QEZE or a member
of a partnership which is a QEZE, and which  is  subject  to  tax  under
article  nine-A, twenty-two, thirty-two or thirty-three of this chapter,
shall be allowed a credit against such tax, pursuant to  the  provisions
referenced in subdivision (h) of this section, for eligible real proper-
ty  taxes.    PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF A CLEAN ENERGY
RESEARCH AND DEVELOPMENT ENTERPRISE, A MUNICIPAL CORPORATION MAY QUALIFY
FOR THE REFUND OF THE CREDIT PROVIDED BY THIS SECTION  WITH  RESPECT  TO
ANY  REAL PROPERTY TAX EQUIVALENT PAID BY SUCH MUNICIPAL CORPORATION FOR
SAID ENTERPRISE.
  S 4. This act shall take effect immediately.