NY State Assembly Bill 2009-A8131

Assembly Bill A8131

Signed By Governor

2009-2010 Legislative Session

Authorizes N.Y. city to provide a biotechnology credit to be taken against the general corporation, unincorporated business and banking taxes

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 16, 2009	signed chap.453
Sep 04, 2009	delivered to governor
Jul 16, 2009	returned to assembly passed senate 3rd reading cal.645 substituted for s4845b
Jun 18, 2009	referred to rules
Jun 17, 2009	delivered to senate passed assembly ordered to third reading rules cal.439 rules report cal.439 reported reported referred to rules
May 05, 2009	referred to ways and means

Votes

- Jul 16, 2009 - Floor Vote
  A8131
  
  56
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  5
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 16, 2009
      
      aye (56)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      nay (1)
      
      LaValle
      
      excused (5)
      
      Diaz
      
      Foley
      
      Johnson
      
      Kruger
      
      Squadron

2009-A8131 (ACTIVE) - Details

See Senate Version of this Bill:: S4845
Law Section:: Tax Law
Laws Affected:: Amd §1201-a, Tax L

2009-A8131 (ACTIVE) - Summary

Authorizes cities of one million or more to provide a biotechnology credit to be taken against the general corporation tax, unincorporated business tax and banking corporation tax imposed by such city.

2009-A8131 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8131

TITLE OF BILL:
An act to amend the tax law, in relation to authorizing any city having
a population of one million or more to provide a biotechnology credit
against the general corporation tax, unincorporated business tax and
banking corporation tax of such city

SUMMARY OF SPECIFIC PROVISIONS:
This bill would amend Section 1201-a of the tax law by adding a new
subdivision (d). In Section 1 of the bill, paragraph 1 of new subdivi-
sion (d)would allow New York City to create, by local law, a credit
against the City's general corporation, unincorporated business and
banking taxes, substantially identical to New York State's Qualified
Emerging Technologies Facilities, Operations and Training Credit, as
provided in subdivision 12-g of Section 210 of the tax law. New York
City's credit, termed the "Biotechnology Credit" would be limited to
companies in biotechnology as defined in Section 3102-e(b)(5) of the
public authorities law.

While this credit is substantially identical to the New York State's
Qualified Emerging Technologies, Facilities, Operations and Training
State credit, this credit differs from the State's credit in several
ways.

Paragraph 2 establishes a two-tiered credit. In the first tier, eligible

firms will receive 100% of the credit available, up to $250,000 per
calendar year. Firms will be eligible for this tier of the credit if
firms increase their employment level by 5% more than their employment
level in their base year. Firms that are newly established, newly relo-
cated, or did not have any employees in the year prior to which the
credit is claimed are not subject to the base year employment increase,
are eligible this tier of the credit. In the second tier, firms who
increase their employment level by less than 5% of their base year
employment, the maximum amount of the credit will be 50% of the maximum
amount of the credit, not to exceed $125,000.  Firms in academic incuba-
tors are not eligible for the 50 percent credit. Base year employment is
defined as the average number of individuals employed full-time by the
taxpayer in the city in the year preceding the first calendar year in
which the credit is claimed.

Paragraph 3 provides that the maximum amount of tax credits in any year
is $3 million, to be allocated among tax payers on a pro rata basis by
the New York City Department of Finance.

Paragraph 4 provides that the New York City Department of Finance shall
establish rules related to the application process and due dates.

Paragraph 5 provides that such a local law may provide a credit for up
to three consecutive years, but may not apply to taxable years starting
before January 1,2010 or after January 1,2013.

Section 2 of the bill provides that the act would take effect immediate-
ly.

STATEMENT IN SUPPORT:
9 world class research institutions, 26 medical centers, 175 hospitals,
and an unparalleled talent pool, New York City has a natural advantage
in the bioscience industry, yet it lags behind other cities, such as
Boston and San Diego, in the commercialization of new technologies.

The New York City Biotechnology credit is modeled after, and designed to
work with, New York State's Qualified Emerging Technologies Facilities,
Operations and Training Credit. Firms will be provided with a refundable
credit, for three types of expenses: qualifying expenses related to
acquiring research and development property, certain expenses related to
training employees, and other research and development expenses. The
credit is limited to small firms engaged in research and development
that meet New York State standards as qualified emerging technology
companies. Such qualified emerging technology companies will be eligible
for the credit for up to 3 years 1. The credit will help a young firm
equip a lab, train technicians, and fund access to high tech equipment
that they do not own.

The credit will differ from New York State's in that it will be focused
on growing firms. The allowable expenses and the credit based on those
expenses will be the same as for the New York State credit for firms
that increase their employment by at least 5 percent, compared to a base
year. Those that do not grow will still be eligible for the credit, but
at half the rate.  Growing firms will have their credit capped at a
maximum of $250,000 per year and those that do not make the 5 percent
threshold will have a maximum credit of 125,000.

Under this legislation, the total credits for a given year are capped at
$3 million. If credits in a given year exceed the cap they will be allo-
cated on a prorated basis by the New York City Department of Finance.
The credit would be for three consecutive years starting in January 2010
and ending in December 2012.

The credit is part of a policy to create an industry with sufficient
size and density that it becomes a good place to make a career in
biotech and to locate the kind of ancillary services that the industry
needs. This credit works in conjunction with the development of labora-
tory space at the East River Science Park and in BioBAT at the Brooklyn
Army Terminal. These spaces, along with existing facilities, will
provide approximately 2 million square feet of laboratory space in the
City.

1 Firms that are located in academic incubators and relocate outside the
incubator will be eligible for an additional year of the credit.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
The credit is capped at $3 million per year. New York City Council
Finance Division estimates that without a cap on total credits, the
credit would cost approximately $2 million in City fiscal year 2011 and
rise to approximately $3 million by City fiscal year 2013.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-A8131 (ACTIVE) - Bill Text download pdf

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

                                  8131

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 5, 2009
                               ___________

Introduced  by  M.  of  A.  WEPRIN,  BING, CASTRO, CHRISTENSEN, KELLNER,
  MAISEL, ROSENTHAL, TITONE, WRIGHT -- Multi-Sponsored by --  M.  of  A.
  ABBATE,  BRENNAN,  CLARK,  COOK, EDDINGTON, GREENE, JAFFEE, SCHIMEL --
  read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to authorizing any city  having
  a  population of one million or more to provide a biotechnology credit
  against the general corporation tax, unincorporated business  tax  and
  banking corporation tax of such city

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

  Section 1. Section 1201-a of the tax law is amended by  adding  a  new
subdivision (d) to read as follows:
  (D)  BIOTECHNOLOGY  CREDIT.  1.  ANY CITY IN THIS STATE HAVING A POPU-
LATION OF ONE MILLION OR MORE,  ACTING  THROUGH  ITS  LOCAL  LEGISLATIVE
BODY,  IS  HEREBY  AUTHORIZED  TO  ADOPT AND AMEND LOCAL LAWS TO ALLOW A
CREDIT AGAINST THE GENERAL CORPORATION TAX, UNINCORPORATED BUSINESS  TAX
AND  THE  BANKING  CORPORATION  TAX IMPOSED PURSUANT TO THE AUTHORITY OF
CHAPTER SEVEN HUNDRED  SEVENTY-TWO  OF  THE  LAWS  OF  NINETEEN  HUNDRED
SIXTY-SIX  WHICH  SHALL BE SUBSTANTIALLY IDENTICAL TO THE CREDIT ALLOWED
UNDER SUBDIVISION TWELVE-G OF SECTION TWO HUNDRED TEN OF  THIS  CHAPTER,
EXCEPT THAT (A) WHENEVER SUBDIVISION TWELVE-G OF SECTION TWO HUNDRED TEN
OF THIS CHAPTER REFERENCES THE STATE, SUCH WORDS SHALL BE READ AS REFER-
ENCING  THE  CITY,  (B)  SUCH CREDIT SHALL BE ALLOWED ONLY TO A TAXPAYER
THAT (1) IS A QUALIFIED EMERGING  TECHNOLOGY  COMPANY  PURSUANT  TO  THE
PROVISIONS  OF  PARAGRAPH  (C)  OF SUBDIVISION ONE OF SECTION THIRTY-ONE
HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW, EXCEPT  THAT  SUCH  COMPANY
SHALL  MEAN  A  COMPANY  LOCATED IN SUCH CITY, (2) ENGAGES IN ACTIVITIES
REFERENCED IN SUBPARAGRAPH FIVE OF PARAGRAPH (B) OF SUBDIVISION  ONE  OF
SECTION  THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW, AND (3)
MEETS THE ELIGIBILITY  REQUIREMENTS  IN  PARAGRAPH  (B)  OF  SUBDIVISION
TWELVE-G  OF SECTION TWO HUNDRED TEN OF THIS CHAPTER, AND (C) THE EFFEC-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11762-01-9

A. 8131                             2

TIVE DATE OF SUCH CREDIT SHALL BE AS PROVIDED IN LOCAL LAWS. SUBJECT  TO
THE  LIMITATIONS  SET  FORTH  IN PARAGRAPH TWO OF THIS SUBDIVISION, SUCH
CREDIT SHALL BE APPLIED IN A MANNER CONSISTENT WITH THE  CREDIT  ALLOWED
UNDER  SUBDIVISION  TWELVE-G  OF SECTION TWO HUNDRED TEN OF THIS CHAPTER
EXCEPT AS MAY BE NECESSARY TO  TAKE  INTO  ACCOUNT  DIFFERENCES  BETWEEN
ARTICLE  NINE-A  OF  THIS  CHAPTER  AND THE GENERAL CORPORATION TAX, THE
UNINCORPORATED BUSINESS TAX OR THE BANKING CORPORATION TAX.
  2. (A) THE PERCENTAGE OF THE CREDIT ALLOWED TO A TAXPAYER  UNDER  THIS
SUBDIVISION IN ANY CALENDAR YEAR SHALL BE:
  (1)  IF  THE  AVERAGE  NUMBER  OF  INDIVIDUALS EMPLOYED FULL-TIME BY A
TAXPAYER IN THE CITY DURING THE CALENDAR YEAR IN  WHICH  THE  CREDIT  IS
CLAIMED IS AT LEAST ONE HUNDRED FIVE PERCENT OF THE TAXPAYER'S BASE YEAR
EMPLOYMENT, ONE HUNDRED PERCENT, EXCEPT THAT IN NO CASE SHALL THE CREDIT
ALLOWED  UNDER THIS CLAUSE EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER
CALENDAR YEAR.  PROVIDED, HOWEVER, THE INCREASE IN BASE YEAR  EMPLOYMENT
SHALL  NOT  APPLY  TO A TAXPAYER ALLOWED A CREDIT UNDER THIS SUBDIVISION
THAT WAS, (I) LOCATED OUTSIDE OF THE CITY, (II) NOT DOING  BUSINESS,  OR
(III)  DID  NOT HAVE ANY EMPLOYEES, IN THE YEAR PRECEDING THE FIRST YEAR
THAT THE CREDIT WAS CLAIMED.
  (2) IF THE AVERAGE NUMBER  OF  INDIVIDUALS  EMPLOYED  FULL-TIME  BY  A
TAXPAYER  IN  THE  CITY  DURING THE CALENDAR YEAR IN WHICH THE CREDIT IS
CLAIMED IS LESS THAN ONE HUNDRED FIVE PERCENT  OF  THE  TAXPAYER'S  BASE
YEAR  EMPLOYMENT, FIFTY PERCENT, EXCEPT THAT IN NO CASE SHALL THE CREDIT
ALLOWED UNDER  THIS  CLAUSE  EXCEED  ONE  HUNDRED  TWENTY-FIVE  THOUSAND
DOLLARS  PER CALENDAR YEAR. IN THE CASE OF AN ENTITY LOCATED IN THE CITY
OF NEW YORK RECEIVING SPACE AND BUSINESS SUPPORT SERVICES BY AN ACADEMIC
INCUBATOR FACILITY, AS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (E)  OF
SUBDIVISION  TWELVE-G OF SECTION TWO HUNDRED TEN OF THIS CHAPTER, IF THE
AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY SUCH FACILITY IN THE
CITY DURING THE CALENDAR YEAR IN WHICH THE  CREDIT  ALLOWED  UNDER  THIS
SUBDIVISION  IS  CLAIMED  IS  LESS  THAN ONE HUNDRED FIVE PERCENT OF THE
TAXPAYER'S BASE YEAR EMPLOYMENT, THE CREDIT SHALL BE ZERO.
  (B) FOR THE PURPOSES OF THIS SUBDIVISION, "BASE YEAR EMPLOYMENT" MEANS
THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER  IN
THE  CITY  IN  THE  YEAR  PRECEDING THE FIRST CALENDAR YEAR IN WHICH THE
CREDIT IS CLAIMED.
  (C) FOR THE PURPOSES OF THIS SUBDIVISION, AVERAGE NUMBER  OF  INDIVID-
UALS  EMPLOYED  FULL-TIME SHALL BE COMPUTED BY ADDING THE NUMBER OF SUCH
INDIVIDUALS EMPLOYED BY THE TAXPAYER AT THE END OF EACH  QUARTER  DURING
EACH  CALENDAR  YEAR  OR OTHER APPLICABLE PERIOD AND DIVIDING THE SUM SO
OBTAINED BY THE NUMBER OF SUCH QUARTERS OCCURRING WITHIN  SUCH  CALENDAR
YEAR OR OTHER APPLICABLE PERIOD.
  3.  THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBDIVISION
IN ANY CALENDAR YEAR SHALL BE UP TO THREE MILLION DOLLARS.  SUCH  AGGRE-
GATE  AMOUNT  OF CREDITS SHALL BE ALLOCATED BY THE NEW YORK CITY DEPART-
MENT OF FINANCE AMONG ELIGIBLE TAXPAYERS ON A PRO RATA BASIS.  TAXPAYERS
ELIGIBLE  FOR  SUCH  PRO  RATA ALLOCATION SHALL BE DETERMINED BY THE NEW
YORK CITY DEPARTMENT OF FINANCE NO LATER THAN FEBRUARY TWENTY-EIGHTH  OF
THE SUCCEEDING CALENDAR YEAR IN WHICH THE CREDIT PROVIDED IN THIS SUBDI-
VISION IS APPLIED.
  4.  THE NEW YORK CITY DEPARTMENT OF FINANCE SHALL ESTABLISH BY RULE BY
OCTOBER THIRTY-FIRST, TWO THOUSAND NINE, PROCEDURES FOR  THE  ALLOCATION
OF  TAX  CREDITS  AS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. SUCH
RULES SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION  PROCESS,  THE
DUE  DATES  FOR  SUCH  APPLICATIONS, THE STANDARDS THAT SHALL BE USED TO
EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL  BE  PROVIDED  TO

A. 8131                             3

TAXPAYERS  TO  SUBSTANTIATE  THE AMOUNT OF TAX CREDITS ALLOCATED TO SUCH
TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY  AND  APPROPRI-
ATE.
  5.  ANY LOCAL LAW ADOPTED PURSUANT TO THIS SUBDIVISION MAY PROVIDE FOR
A CREDIT AS AUTHORIZED BY  THIS  SUBDIVISION  FOR  A  MAXIMUM  OF  THREE
CONSECUTIVE  CALENDAR YEARS, PROVIDED, HOWEVER, THAT ANY SUCH CREDIT MAY
NOT APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO  THOUSAND
TEN OR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN.
  S 2. This act shall take effect immediately.

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