S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4727
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2017
                                ___________
 
 Introduced  by  Sens.  SEWARD, AKSHAR, AMEDORE, FUNKE, GALLIVAN, GRIFFO,
   LITTLE, ORTT, SAVINO, SERINO,  TEDISCO,  VALESKY  --  read  twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Investigations and Government Operations
 
 AN ACT to amend the tax law, in relation to providing  insurance  corpo-
   rations  with  a  tax  credit  for  investments made in rural business
   growth funds; and to amend the  state  finance  law,  in  relation  to
   establishing the New York agriculture and rural jobs fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new section 43  to  read
 as follows:
   § 43. NEW YORK AGRICULTURE AND RURAL JOBS CREDIT. (A) DEFINITIONS. FOR
 THE PURPOSE OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (1)  "AFFILIATE"  MEANS  A PERSON THAT DIRECTLY, OR INDIRECTLY THROUGH
 ONE OR MORE INTERMEDIARIES, CONTROLS, IS  CONTROLLED  BY,  OR  IS  UNDER
 COMMON CONTROL WITH ANOTHER PERSON. FOR THE PURPOSES OF THIS DIVISION, A
 PERSON  IS  "CONTROLLED  BY"  ANOTHER  PERSON  IF THE CONTROLLING PERSON
 HOLDS, DIRECTLY OR INDIRECTLY, THE MAJORITY VOTING OR OWNERSHIP INTEREST
 IN THE CONTROLLED PERSON OR HAS CONTROL OVER THE  DAY-TO-DAY  OPERATIONS
 OF THE CONTROLLED PERSON BY CONTRACT OR BY LAW.
   (2)  "CLOSING  DATE"  MEANS  THE DATE ON WHICH A RURAL BUSINESS GROWTH
 FUND HAS COLLECTED ALL OF THE AMOUNTS SPECIFIED BY SUBPARAGRAPHS (A) AND
 (B) OF PARAGRAPH SEVEN OF SUBDIVISION (B) OF THIS SECTION.
   (3) "CREDIT-ELIGIBLE CAPITAL CONTRIBUTION" MEANS AN INVESTMENT OF CASH
 BY A PERSON IN A RURAL BUSINESS GROWTH FUND THAT EQUALS THE AMOUNT SPEC-
 IFIED ON A TAX CREDIT CERTIFICATE ISSUED BY THE DEPARTMENT UNDER SUBPAR-
 AGRAPH (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF  THIS  SECTION.    THE
 INVESTMENT  SHALL  PURCHASE  AN  EQUITY  INTEREST  IN THE RURAL BUSINESS
 GROWTH FUND OR PURCHASE, AT PAR VALUE  OR  PREMIUM,  A  DEBT  INSTRUMENT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08845-01-7

 S. 4727                             2
 
 ISSUED  BY  THE RURAL GROWTH FUND THAT MEETS ALL OF THE FOLLOWING CRITE-
 RIA:
   (A) THE DEBT INSTRUMENT HAS AN ORIGINAL MATURITY DATE OF AT LEAST FIVE
 YEARS AFTER THE DATE OF ISSUANCE.
   (B)  THE  DEBT  INSTRUMENT HAS A REPAYMENT SCHEDULE THAT IS NOT FASTER
 THAN A LEVEL PRINCIPAL AMORTIZATION OVER FIVE YEARS.
   (C) THE DEBT INSTRUMENT HAS  NO  INTEREST,  DISTRIBUTION,  OR  PAYMENT
 FEATURES  DEPENDENT ON THE RURAL BUSINESS GROWTH FUND'S PROFITABILITY OR
 THE SUCCESS OF THE RURAL GROWTH INVESTMENTS.
   (4) "ELIGIBLE INVESTMENT AUTHORITY" MEANS THE  AMOUNT  STATED  ON  THE
 NOTICE ISSUED UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B)
 OF  THIS  SECTION  CERTIFYING  THE  RURAL BUSINESS GROWTH FUND. AT LEAST
 SIXTY-FIVE PERCENT OF A RURAL BUSINESS GROWTH FUND'S ELIGIBLE INVESTMENT
 AUTHORITY SHALL BE COMPRISED OF CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (5) A BUSINESS'S "PRINCIPAL BUSINESS OPERATIONS" ARE IN THIS STATE  IF
 AT  LEAST  EIGHTY  PERCENT  OF  THE  BUSINESS'S EMPLOYEES RESIDE IN THIS
 STATE, THE INDIVIDUALS WHO RECEIVE  EIGHTY  PERCENT  OF  THE  BUSINESS'S
 PAYROLL  RESIDE  IN  THIS  STATE,  OR THE BUSINESS HAS AGREED TO USE THE
 PROCEEDS OF A RURAL  GROWTH  INVESTMENT  TO  RELOCATE  AT  LEAST  EIGHTY
 PERCENT OF ITS EMPLOYEES TO THIS STATE OR PAY AT LEAST EIGHTY PERCENT OF
 ITS PAYROLL TO INDIVIDUALS RESIDING IN THIS STATE.
   (6) "RURAL AREA" MEANS EITHER OF THE FOLLOWING:
   (A)  AN  AREA OF THE STATE NOT IN A CITY OR TOWN THAT HAS A POPULATION
 OF MORE THAN FIFTY THOUSAND INHABITANTS ACCORDING TO THE LATEST DECENNI-
 AL CENSUS OF THE UNITED STATES OR IN THE URBANIZED AREA  CONTIGUOUS  AND
 ADJACENT  TO  A  CITY  OR  TOWN THAT HAS A POPULATION OF MORE THAN FIFTY
 THOUSAND INHABITANTS; OR
   (B) ANY AREA DETERMINED TO BE "RURAL IN CHARACTER" BY THE UNDER-SECRE-
 TARY OF AGRICULTURE FOR  RURAL  DEVELOPMENT  WITHIN  THE  UNITED  STATES
 DEPARTMENT OF AGRICULTURE.
   (7)  "RURAL  BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE
 TIME IF THE INITIAL INVESTMENT IN THE COMPANY BY A RURAL BUSINESS GROWTH
 FUND, HAS ITS PRINCIPAL BUSINESS OPERATIONS IN  THIS  STATE,  HAS  FEWER
 THAN  TWO  HUNDRED  FIFTY  EMPLOYEES  OR  NOT  MORE THAN FIFTEEN MILLION
 DOLLARS IN NET INCOME FOR THE PRECEDING TAXABLE YEAR, AND  MEETS  EITHER
 OF THE FOLLOWING CRITERIA:
   (A)  THE  BUSINESS'S  PRINCIPAL  BUSINESS  OPERATIONS ARE LOCATED IN A
 RURAL AREA; OR
   (B) THE BUSINESS PRODUCES OR PROVIDES ANY GOODS OR  SERVICES  NORMALLY
 USED  BY  FARMERS,  RANCHERS,  OR  PRODUCERS  AND  HARVESTERS OF AQUATIC
 PRODUCTS IN THEIR BUSINESS OPERATIONS, OR  TO  IMPROVE  THE  WELFARE  OR
 LIVELIHOOD OF SUCH PERSONS, OR IS INVOLVED IN THE PROCESSING AND MARKET-
 ING OF AGRICULTURAL PRODUCTS, FARM SUPPLY, AND INPUT SUPPLIERS.  FOR THE
 PURPOSES  OF  THIS  SECTION,  "NET  INCOME" MEANS FEDERAL ADJUSTED GROSS
 INCOME AS REQUIRED TO BE REPORTED UNDER THE INTERNAL REVENUE  CODE  LESS
 FEDERAL  AND STATE TAXES IMPOSED ON OR MEASURED BY INCOME.  ANY BUSINESS
 WHICH IS CLASSIFIED AS A RURAL BUSINESS  CONCERN  AT  THE  TIME  OF  THE
 INITIAL  INVESTMENT  IN  SAID  BUSINESS  BY A RURAL BUSINESS GROWTH FUND
 SHALL REMAIN CLASSIFIED AS A RURAL  BUSINESS  CONCERN  AND  MAY  RECEIVE
 FOLLOW-ON  INVESTMENTS  FROM  ANY  RURAL  BUSINESS GROWTH FUND, AND SUCH
 FOLLOW-ON INVESTMENTS SHALL BE RURAL GROWTH INVESTMENTS EVEN THOUGH SUCH
 BUSINESS MAY NOT MEET THE DEFINITION OF A RURAL BUSINESS CONCERN AT  THE
 TIME OF SUCH FOLLOW-ON INVESTMENTS.
   (8)  "RURAL  BUSINESS  GROWTH  FUND"  MEANS AN ENTITY CERTIFIED BY THE
 DEPARTMENT UNDER THIS SECTION.

 S. 4727                             3
 
   (9) "RURAL GROWTH INVESTMENT" MEANS ANY CAPITAL OR  EQUITY  INVESTMENT
 IN A RURAL BUSINESS CONCERN OR ANY LOAN TO A RURAL BUSINESS CONCERN WITH
 A TERM OF AT LEAST ONE YEAR.
   (10)  "TAXABLE  YEAR"  WHEN  USED IN REFERENCE TO AN INSURANCE COMPANY
 MEANS THE CALENDAR YEAR ENDING ON THE THIRTY-FIRST DAY OF DECEMBER  NEXT
 PRECEDING  THE  DAY  THE  ANNUAL REPORT IS REQUIRED TO BE RETURNED UNDER
 SUBDIVISION (D) OF THIS SECTION.
   (B) CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND  SEVEN-
 TEEN, AN APPLICANT THAT HAS DEVELOPED A BUSINESS PLAN TO INVEST IN RURAL
 BUSINESS  CONCERNS  IN THIS STATE AND HAS SUCCESSFULLY SOLICITED PRIVATE
 INVESTORS TO MAKE CAPITAL CONTRIBUTIONS IN SUPPORT OF THE PLAN MAY APPLY
 TO THE DEPARTMENT FOR CERTIFICATION AS A RURAL BUSINESS GROWTH FUND. THE
 APPLICATION SHALL INCLUDE ALL OF THE FOLLOWING:
   (A) THE TOTAL ELIGIBLE INVESTMENT AUTHORITY SOUGHT  BY  THE  APPLICANT
 UNDER THE BUSINESS PLAN;
   (B) DOCUMENTS AND OTHER EVIDENCE SUFFICIENT TO PROVE, TO THE SATISFAC-
 TION  OF  THE  DEPARTMENT, THAT THE APPLICANT MEETS ALL OF THE FOLLOWING
 CRITERIA: (I) THE APPLICANT OR AN AFFILIATE OF THE APPLICANT IS LICENSED
 AS A RURAL BUSINESS INVESTMENT COMPANY UNDER 7 U.S.C. 2009CC,  OR  AS  A
 SMALL BUSINESS INVESTMENT COMPANY UNDER 15 U.S.C. 681.
   (II)  AS  OF  THE DATE THE APPLICATION IS SUBMITTED, THE APPLICANT HAS
 INVESTED MORE THAN ONE HUNDRED MILLION DOLLARS IN  OPERATING  COMPANIES,
 INCLUDING  AT LEAST FIFTY MILLION DOLLARS IN OPERATING COMPANIES LOCATED
 IN RURAL AREAS. IN COMPUTING INVESTMENTS UNDER THIS DIVISION, THE APPLI-
 CANT MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT.
   (C) AN ESTIMATE OF THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED
 IN THIS STATE AS A RESULT OF THE APPLICANT'S RURAL GROWTH INVESTMENTS;
   (D) A REVENUE IMPACT ASSESSMENT FOR  THE  APPLICANT'S  PROPOSED  RURAL
 GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE-
 PENDENT  ECONOMIC  FORECASTING FIRM USING A DYNAMIC ECONOMIC FORECASTING
 MODEL.   THE REVENUE IMPACT ASSESSMENT  SHALL  ANALYZE  THE  APPLICANT'S
 BUSINESS  PLAN  OVER THE TEN YEARS FOLLOWING THE DATE THE APPLICATION IS
 SUBMITTED TO THE DEPARTMENT.
   (E) A SIGNED AFFIDAVIT FROM EACH INVESTOR  SUCCESSFULLY  SOLICITED  BY
 THE  APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN SUPPORT
 OF THE BUSINESS PLAN. EACH AFFIDAVIT SHALL  INCLUDE  INFORMATION  SUFFI-
 CIENT  FOR THE TAX COMMISSIONER TO IDENTIFY THE INVESTOR AND SHALL STATE
 THE AMOUNT OF THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION.
   (F) A NONREFUNDABLE APPLICATION FEE OF FIVE THOUSAND DOLLARS.
   (2) THE DEPARTMENT SHALL REVIEW AND MAKE A DETERMINATION WITH  RESPECT
 TO  EACH  APPLICATION  SUBMITTED UNDER PARAGRAPH ONE OF THIS SUBDIVISION
 WITHIN THIRTY DAYS OF RECEIPT. THE  DEPARTMENT  SHALL  REVIEW  AND  MAKE
 DETERMINATIONS  ON  THE  APPLICATIONS IN THE ORDER IN WHICH THE APPLICA-
 TIONS ARE RECEIVED BY  THE  DEPARTMENT.  APPLICATIONS  RECEIVED  BY  THE
 DEPARTMENT  ON THE SAME DAY SHALL BE DEEMED TO HAVE BEEN RECEIVED SIMUL-
 TANEOUSLY. EXCEPT AS PROVIDED IN PARAGRAPH FOUR OF  SUBDIVISION  (C)  OF
 THIS  SECTION,  THE  DEPARTMENT  SHALL NOT APPROVE MORE THAN ONE HUNDRED
 MILLION DOLLARS IN ELIGIBLE INVESTMENT AUTHORITY OR MORE THAN SIXTY-FIVE
 MILLION DOLLARS IN CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (3) THE DEPARTMENT SHALL DENY  AN  APPLICATION  SUBMITTED  UNDER  THIS
 SECTION  IF ANY OF THE FOLLOWING ARE TRUE: (A) THE APPLICATION IS INCOM-
 PLETE.
   (B) THE APPLICATION FEE IS NOT PAID IN FULL.
   (C) THE APPLICANT DOES NOT  SATISFY  ALL  THE  CRITERIA  DESCRIBED  IN
 SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION.

 S. 4727                             4
 
   (D)  THE REVENUE IMPACT ASSESSMENT SUBMITTED UNDER SUBPARAGRAPH (D) OF
 PARAGRAPH ONE OF THIS SUBDIVISION DOES NOT DEMONSTRATE THAT  THE  APPLI-
 CANT'S  BUSINESS  PLAN WILL RESULT IN A POSITIVE ECONOMIC IMPACT ON THIS
 STATE OVER A  TEN-YEAR  PERIOD  THAT  EXCEEDS  THE  ELIGIBLE  INVESTMENT
 AUTHORITY SOUGHT BY THE APPLICANT.
   (E)  THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS DESCRIBED IN AFFIDAVITS
 SUBMITTED UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION DO
 NOT EQUAL SIXTY-FIVE PERCENT OF THE TOTAL AMOUNT OF ELIGIBLE  INVESTMENT
 AUTHORITY SOUGHT UNDER THE APPLICANT'S BUSINESS PLAN.
   (F) THE DEPARTMENT HAS ALREADY APPROVED THE MAXIMUM AMOUNT OF ELIGIBLE
 INVESTMENT  AUTHORITY  AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS ALLOWED
 UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
   (4) IF THE DEPARTMENT DENIES AN APPLICATION UNDER PARAGRAPH  THREE  OF
 THIS  SUBDIVISION, THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION
 OF THE APPLICANT. THE NOTICE SHALL INCLUDE THE REASONS THAT THE APPLICA-
 TION WAS DENIED. IF THE APPLICATION WAS DENIED FOR ANY REASON OTHER THAN
 THE REASON SPECIFIED IN SUBPARAGRAPH (F)  OF  PARAGRAPH  THREE  OF  THIS
 SUBDIVISION,  THE  APPLICANT  MAY  PROVIDE ADDITIONAL INFORMATION TO THE
 DEPARTMENT TO COMPLETE, CLARIFY, OR CURE  DEFECTS  IN  THE  APPLICATION.
 THE  ADDITIONAL  INFORMATION  MUST BE SUBMITTED WITHIN THIRTY DAYS AFTER
 THE DATE THE NOTICE OF DENIAL WAS SENT BY THE DEPARTMENT. IF THE  PERSON
 OR ENTITY SUBMITS ADDITIONAL INFORMATION WITHIN THIRTY DAYS, THE DEPART-
 MENT SHALL RECONSIDER THE APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING
 SUCH  ADDITIONAL INFORMATION. IF AFTER SUBMISSION OF ADDITIONAL INFORMA-
 TION, THE DEPARTMENT APPROVES THE APPLICATION, THEN THE SUBMISSION  DATE
 SHALL  BE THE DATE OF THE ORIGINAL SUBMISSION OF THE APPLICATION. IF THE
 PERSON OR ENTITY DOES NOT SUBMIT ADDITIONAL  INFORMATION  WITHIN  THIRTY
 DAYS AFTER THE NOTICE OF DENIAL WAS SENT, THE APPLICANT MAY SUBMIT A NEW
 APPLICATION WITH A NEW SUBMISSION DATE AT ANY TIME.
   (5)  OF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS WOULD
 RESULT IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED  BY
 PARAGRAPH  TWO  OF THIS SUBDIVISION, THE DEPARTMENT SHALL PROPORTIONALLY
 REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL
 CONTRIBUTIONS FOR  EACH  APPROVED  APPLICATION  AS  NECESSARY  TO  AVOID
 EXCEEDING THE LIMIT.
   (6)  THE DEPARTMENT SHALL NOT DENY A RURAL BUSINESS GROWTH FUND APPLI-
 CATION OR REDUCE THE REQUESTED ELIGIBLE INVESTMENT AUTHORITY FOR REASONS
 OTHER THAN THOSE DESCRIBED IN PARAGRAPHS THREE AND FIVE OF THIS SUBDIVI-
 SION. IF THE DEPARTMENT APPROVES SUCH APPLICATION, THE DEPARTMENT  SHALL
 ISSUE  ALL  OF  THE  FOLLOWING  NOTICES: (A) TO THE APPLICANT, A WRITTEN
 NOTICE CERTIFYING THAT THE  APPLICANT  QUALIFIES  AS  A  RURAL  BUSINESS
 GROWTH  FUND  AND  SPECIFYING  THE  AMOUNT  OF  THE APPLICANT'S ELIGIBLE
 INVESTMENT AUTHORITY; (B) TO EACH INVESTOR WHOSE AFFIDAVIT WAS  INCLUDED
 IN  THE  APPLICATION,  A TAX CREDIT CERTIFICATE SPECIFYING THE AMOUNT OF
 THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION; (C) TO THE  COMMIS-
 SIONER,  A COPY OF EACH TAX CREDIT CERTIFICATE ISSUED UNDER SUBPARAGRAPH
 (B) OF PARAGRAPH SIX OF THIS SUBDIVISION.
   (7) A RURAL BUSINESS GROWTH FUND SHALL COMPLETE ALL OF  THE  FOLLOWING
 WITHIN  SIXTY  DAYS OF RECEIVING THE CERTIFICATION ISSUED UNDER SUBPARA-
 GRAPH (A) OF PARAGRAPH SIX OF THIS SUBDIVISION:
   (A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES-
 TOR ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH (B) OF  PARAGRAPH
 SIX OF THIS SUBDIVISION;
   (B)  COLLECT  ONE OR MORE INVESTMENTS OF CASH, WHICH SHALL PURCHASE AN
 EQUITY INTEREST IN THE RURAL GROWTH FUND OR A DEBT INSTRUMENT ISSUED  BY
 THE  RURAL  GROWTH FUND AT PAR VALUE OR PREMIUM, WITH A MATURITY DATE OF

 S. 4727                             5
 
 AT LEAST FIVE YEARS FROM THE  CLOSING  DATE  THAT,  WHEN  ADDED  TO  THE
 CONTRIBUTIONS  COLLECTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH, EQUAL
 THE FUND'S ELIGIBLE INVESTMENT AUTHORITY. AT LEAST TEN  PERCENT  OF  THE
 FUND'S  ELIGIBLE  INVESTMENT  AUTHORITY  SHALL  BE  COMPRISED  OF EQUITY
 INVESTMENTS CONTRIBUTED BY AFFILIATES OF THE RURAL BUSINESS GROWTH FUND,
 INCLUDING EMPLOYEES, OFFICERS, AND DIRECTORS OF SUCH AFFILIATES.
   (C) SEND TO THE DEPARTMENT DOCUMENTATION SUFFICIENT TO PROVE THAT  THE
 AMOUNTS  DESCRIBED  IN  SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH HAVE
 BEEN COLLECTED. IF THE RURAL BUSINESS GROWTH FUND FAILS TO FULLY  COMPLY
 WITH THIS PARAGRAPH, THE FUND'S CERTIFICATION SHALL LAPSE.
   (8)  ELIGIBLE  INVESTMENT  AUTHORITY AND CORRESPONDING CREDIT-ELIGIBLE
 CAPITAL CONTRIBUTIONS THAT LAPSE UNDER PARAGRAPH SEVEN OF THIS  SUBDIVI-
 SION  DO  NOT COUNT TOWARD LIMITS ON TOTAL ELIGIBLE INVESTMENT AUTHORITY
 AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS PRESCRIBED IN PARAGRAPH TWO OF
 THIS SUBDIVISION. ONCE ELIGIBLE INVESTMENT  AUTHORITY  HAS  LAPSED,  THE
 DEPARTMENT  SHALL  FIRST  AWARD  LAPSED AUTHORITY PRO RATA TO EACH RURAL
 BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE  REQUESTED  ELIGIBLE
 INVESTMENT  AUTHORITY  UNDER  PARAGRAPH  FIVE  OF  THIS SUBDIVISION. ANY
 REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT
 TO NEW APPLICANTS.
   (9) APPLICATION FEES SUBMITTED TO THE DEPARTMENT PURSUANT TO  SUBPARA-
 GRAPH  (F) OF PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE CREDITED TO THE
 NEW YORK AGRICULTURE AND RURAL JOBS FUND,  CREATED  IN  SECTION  NINETY-
 NINE-AA OF THE STATE FINANCE LAW.
   (C) REVOCATION OF CERTIFICATION. (1) THE DEPARTMENT SHALL REVOKE A TAX
 CREDIT  CERTIFICATE  ISSUED UNDER SUBDIVISION (B) OF THIS SECTION IF ANY
 OF THE FOLLOWING OCCUR WITH RESPECT TO  A  RURAL  BUSINESS  GROWTH  FUND
 BEFORE  THE FUND EXITS THE PROGRAM UNDER PARAGRAPH FIVE OF THIS SUBDIVI-
 SION.
   (A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE  CAPI-
 TAL  CONTRIBUTION WAS MADE DOES NOT INVEST SIXTY PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 TWO  YEARS  OF  THE CLOSING DATE AND ONE HUNDRED PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 THREE YEARS OF THE CLOSING DATE.
   (B)  AFTER  INVESTING  ONE  HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT
 AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL  BUSINESS
 GROWTH  FUND  FAILS TO MAINTAIN THAT INVESTMENT UNTIL THE FIFTH ANNIVER-
 SARY OF THE CLOSING DATE, INCLUDING THE REINVESTMENT OF SUCH INVESTMENT.
 FOR THE PURPOSES OF THIS SECTION, AN INVESTMENT IS "MAINTAINED" EVEN  IF
 THE  INVESTMENT  IS  SOLD OR REPAID SO LONG AS THE RURAL BUSINESS GROWTH
 FUND REINVESTS AN AMOUNT EQUAL TO THE CAPITAL RETURNED OR  RECOVERED  BY
 THE  FUND  FROM  THE ORIGINAL INVESTMENT, EXCLUSIVE OF ANY PROFITS REAL-
 IZED, IN OTHER RURAL GROWTH INVESTMENTS  IN  THIS  STATE  WITHIN  TWELVE
 MONTHS OF THE RECEIPT OF SUCH CAPITAL.  AMOUNTS RECEIVED PERIODICALLY BY
 A RURAL BUSINESS GROWTH FUND SHALL BE TREATED AS CONTINUALLY INVESTED IN
 RURAL  GROWTH  INVESTMENTS  IF THE AMOUNTS ARE REINVESTED IN ONE OR MORE
 RURAL GROWTH INVESTMENTS BY THE END OF THE FOLLOWING  CALENDAR  YEAR.  A
 RURAL  BUSINESS GROWTH FUND IS NOT REQUIRED TO REINVEST CAPITAL RETURNED
 FROM RURAL GROWTH INVESTMENTS IN THE SIX  MONTHS  IMMEDIATELY  PRECEDING
 THE FIFTH ANNIVERSARY OF THE CLOSING DATE, AND SUCH RURAL GROWTH INVEST-
 MENTS  SHALL  BE  CONSIDERED  HELD CONTINUOUSLY BY THE RURAL GROWTH FUND
 THROUGH THE FIFTH ANNIVERSARY OF THE CLOSING DATE.
   (C) THE RURAL BUSINESS GROWTH FUND INVESTS MORE THAN  THE  GREATER  OF
 SEVEN  MILLION  FIVE  HUNDRED  THOUSAND DOLLARS OR TWENTY PERCENT OF ITS
 ELIGIBLE INVESTMENT  AUTHORITY  IN  THE  SAME  RURAL  BUSINESS  CONCERN,

 S. 4727                             6
 
 INCLUDING  AMOUNTS  INVESTED IN AFFILIATES OF THE RURAL BUSINESS CONCERN
 BUT EXCLUDING AMOUNTS REINVESTED IN THE RURAL BUSINESS GROWTH FUND  WITH
 REPAID  OR  REDEEMED  RURAL  BUSINESS  GROWTH INVESTMENTS, PROVIDED SUCH
 REINVESTMENTS  SHALL  NOT  COUNT TOWARDS THE REQUIREMENT OF SUBPARAGRAPH
 (A) OF THIS PARAGRAPH.
   (D) THE RURAL BUSINESS GROWTH FUND MAKES A RURAL GROWTH INVESTMENT  IN
 A  RURAL  BUSINESS CONCERN THAT DIRECTLY OR INDIRECTLY THROUGH AN AFFIL-
 IATE OWNS, HAS THE RIGHT TO ACQUIRE AN OWNERSHIP INTEREST, MAKE  A  LOAN
 TO,  OR  MAKE AN INVESTMENT IN THE RURAL BUSINESS GROWTH FUND, AN AFFIL-
 IATE OF THE RURAL BUSINESS GROWTH FUND, OR  AN  INVESTOR  IN  THE  RURAL
 BUSINESS  GROWTH  FUND.  THIS PARAGRAPH DOES NOT APPLY TO INVESTMENTS IN
 PUBLICLY TRADED SECURITIES BY A RURAL BUSINESS CONCERN OR  AN  OWNER  OR
 AFFILIATE OF SUCH CONCERN.
   (2)  BEFORE TAKING ACTION UNDER PARAGRAPH ONE OF THIS SUBDIVISION, THE
 DEPARTMENT SHALL NOTIFY THE RURAL BUSINESS GROWTH FUND  OF  THE  REASONS
 FOR  THE  PENDING ACTION. IF THE RURAL BUSINESS GROWTH FUND CORRECTS THE
 VIOLATIONS, OTHER THAN VIOLATIONS OF SUBPARAGRAPH (D) OF  PARAGRAPH  ONE
 OF  THIS  SUBDIVISION, OUTLINED IN THE NOTICE TO THE SATISFACTION OF THE
 DEPARTMENT WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE OF THE NOTICE  WAS
 SENT,  THE  DEPARTMENT  SHALL  NOT REVOKE THE TAX CREDIT CERTIFICATES OR
 LEVY A FINE.
   (3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH
 ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL MAKE AN  ASSESSMENT  FOR
 THE  AMOUNT  OF  THE CREDIT CLAIMED BY THE CERTIFICATE HOLDER BEFORE THE
 CERTIFICATE WAS REVOKED. THE  COMMISSIONER  SHALL  MAKE  THE  ASSESSMENT
 WITHIN ONE YEAR AFTER THE CERTIFICATE HAS BEEN REVOKED.
   (4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS
 SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-EL-
 IGIBLE  CAPITAL  CONTRIBUTIONS  DO  NOT  COUNT TOWARD THE LIMIT ON TOTAL
 ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL  CONTRIBUTIONS
 DESCRIBED  BY  PARAGRAPH  TWO  OF  SUBDIVISION  (B) OF THIS SECTION. THE
 DEPARTMENT SHALL FIRST AWARD REVERTED AUTHORITY PRO RATA TO  EACH  RURAL
 BUSINESS  GROWTH  FUND THAT WAS AWARDED LESS THAN THE REQUESTED ELIGIBLE
 INVESTMENT AUTHORITY UNDER PARAGRAPH FIVE OF  SUBDIVISION  (B)  OF  THIS
 SECTION.  ANY  REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY
 THE DEPARTMENT TO NEW APPLICANTS.
   (5) (A) ON OR AFTER THE FIFTH ANNIVERSARY OF THE CLOSING DATE, A RURAL
 BUSINESS GROWTH FUND THAT HAS NOT COMMITTED ANY OF THE ACTS DESCRIBED IN
 PARAGRAPH ONE OF THIS SUBDIVISION MAY APPLY TO THE  DEPARTMENT  TO  EXIT
 THE  PROGRAM AS A RURAL BUSINESS GROWTH FUND AND NO LONGER BE SUBJECT TO
 REGULATION UNDER THIS SECTION.  THE  DEPARTMENT  SHALL  RESPOND  TO  THE
 APPLICATION  WITHIN  THIRTY  DAYS  AFTER RECEIVING SUCH APPLICATION.  IN
 EVALUATING SUCH REQUEST THE FACT THAT NO TAX  CREDIT  CERTIFICATES  HAVE
 BEEN  REVOKED  WITH  RESPECT  TO THE RURAL BUSINESS GROWTH FUND SHALL BE
 SUFFICIENT EVIDENCE TO PROVE THAT THE  FUND  IS  ELIGIBLE  TO  EXIT  THE
 PROGRAM.  THE  DEPARTMENT  SHALL  NOT  UNREASONABLY  DENY AN APPLICATION
 SUBMITTED UNDER THIS SUBDIVISION.
   (B) THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION WITH RESPECT
 TO AN APPLICATION SUBMITTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH  TO
 THE RURAL BUSINESS GROWTH FUND. IF THE APPLICATION IS DENIED, THE NOTICE
 SHALL INCLUDE THE REASONS FOR THE DETERMINATION.
   (C)  THE  DEPARTMENT  SHALL NOT REVOKE A TAX CREDIT CERTIFICATE DUE TO
 ANY ACTIONS OF A RURAL BUSINESS GROWTH FUND THAT OCCUR  AFTER  THE  DATE
 THE FUND'S APPLICATION FOR EXITING THE PROGRAM IS APPROVED UNDER SUBPAR-
 AGRAPH (A) OF THIS PARAGRAPH.

 S. 4727                             7
 
   (6)  IF  THE  NUMBER OF JOBS CREATED OR RETAINED BY THE RURAL BUSINESS
 CONCERN THAT RECEIVED RURAL GROWTH INVESTMENTS FROM THE  RURAL  BUSINESS
 GROWTH FUND IS:
   (A)  LESS  THAN  SIXTY PERCENT OF THE NUMBER PROJECTED IN THE APPROVED
 RURAL BUSINESS GROWTH FUND'S BUSINESS PLAN FILED AS PART OF ITS APPLICA-
 TION FOR CERTIFICATION UNDER SUBDIVISION (B) OF THIS SECTION,  THEN  THE
 STATE  SHALL RECEIVE TWENTY PERCENT OF ANY DISTRIBUTION OR PAYMENT TO AN
 EQUITY HOLDER IN AN APPROVED RURAL BUSINESS GROWTH FUND IN EXCESS OF THE
 SUM OF THE AMOUNT OF EQUITY CAPITAL INVESTED IN THE FUND BY SUCH  EQUITY
 HOLDER AND AN AMOUNT EQUAL TO ANY PROJECTED INCREASE IN THE EQUITY HOLD-
 ER'S  FEDERAL  OR STATE TAX LIABILITY, INCLUDING PENALTIES AND INTEREST,
 RELATED TO THE EQUITY HOLDER'S OWNERSHIP, MANAGEMENT,  OR  OPERATION  OF
 THE FUND; OR
   (B)  GREATER  THAN  SIXTY  PERCENT BUT LESS THAN EIGHTY PERCENT OF THE
 NUMBER PROJECTED IN THE APPROVED RURAL BUSINESS GROWTH  FUND'S  BUSINESS
 PLAN  FILED  AS PART OF ITS APPLICATION FOR CERTIFICATION UNDER SUBDIVI-
 SION (B) OF THIS SECTION, THEN THE STATE SHALL RECEIVE  TEN  PERCENT  OF
 ANY  DISTRIBUTION  OR  PAYMENT  TO AN EQUITY HOLDER IN AN APPROVED RURAL
 BUSINESS GROWTH FUND IN EXCESS OF THE SUM OF THE AMOUNT OF EQUITY  CAPI-
 TAL  INVESTED  IN  THE FUND BY SUCH EQUITY HOLDER AND AN AMOUNT EQUAL TO
 ANY PROJECTED INCREASE IN THE  EQUITY  HOLDER'S  FEDERAL  OR  STATE  TAX
 LIABILITY, INCLUDING PENALTIES AND INTEREST, RELATED TO THE EQUITY HOLD-
 ER'S OWNERSHIP, MANAGEMENT, OR OPERATION OF THE FUND.
   (7)  A  RURAL BUSINESS GROWTH FUND MAY, PRIOR TO MAKING A RURAL GROWTH
 INVESTMENT, REQUEST FROM THE DEPARTMENT A WRITTEN  DETERMINATION  AS  TO
 WHETHER  THE BUSINESS ENTITY IN WHICH IT PROPOSES TO INVEST QUALIFIES AS
 A RURAL BUSINESS CONCERN.
   (D) REPORTS. (1) EACH RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT
 TO THE DEPARTMENT ON OR BEFORE THE FIFTH BUSINESS DAY AFTER  THE  SECOND
 AND  THIRD  ANNIVERSARIES  OF THE CLOSING DATE. THE REPORT SHALL PROVIDE
 DOCUMENTATION AS TO THE RURAL GROWTH INVESTMENTS MADE BY THE RURAL BUSI-
 NESS GROWTH FUND.  SUCH DOCUMENTATION SHALL INCLUDE THE FOLLOWING:
   (A) A BANK STATEMENT OF THE RURAL BUSINESS GROWTH FUND DISPLAYING EACH
 RURAL GROWTH INVESTMENT;
   (B) THE NAME AND LOCATION OF EACH RURAL BUSINESS CONCERN IN WHICH  THE
 RURAL BUSINESS GROWTH FUND HAS MADE A RURAL GROWTH INVESTMENT, INCLUDING
 EVIDENCE THAT THE BUSINESS CONCERN WAS QUALIFIED AT THE TIME THE INVEST-
 MENT WAS MADE.
   (2)  ON  OR BEFORE THE LAST DAY OF FEBRUARY OF EACH YEAR FOLLOWING THE
 YEAR IN WHICH THE REPORT REQUIRED UNDER PARAGRAPH ONE OF  THIS  SUBDIVI-
 SION  IS  DUE,  THE  RURAL  BUSINESS  GROWTH FUND SHALL SUBMIT AN ANNUAL
 REPORT TO THE DEPARTMENT INCLUDING THE FOLLOWING:
   (A) THE NUMBER OF EMPLOYMENT POSITIONS CREATED OR RETAINED AS A RESULT
 OF THE FUND'S RURAL GROWTH INVESTMENTS AS OF THE LAST DAY OF THE PRECED-
 ING CALENDAR YEAR;
   (B) THE AVERAGE ANNUAL SALARY OF THE POSITIONS DESCRIBED  IN  SUBPARA-
 GRAPH (A) OF THIS PARAGRAPH;
   (C) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
   (3)  THE  DEPARTMENT  SHALL  ADOPT  RULES  NECESSARY TO IMPLEMENT THIS
 SUBDIVISION.
   § 2. Section 1511 of the tax law is amended by adding a  new  subdivi-
 sion (dd) to read as follows:
   (DD)  CREDIT  FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
 (1) THERE IS HEREBY ALLOWED A NONREFUNDABLE  TAX  CREDIT  FOR  TAXPAYERS
 THAT  MADE  A  CREDIT-ELIGIBLE  CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER  SUBPARAGRAPH

 S. 4727                             8
 
 (B)  OF  PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE AND SECTION ONE THOUSAND ONE HUNDRED TWELVE OF  THE  INSURANCE  LAW.
 THE  CREDIT  MAY  NOT  BE  SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO
 THE  RURAL  BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX CREDIT CERTIF-
 ICATE. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE  ELIGIBLE
 INVESTMENT  AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
 SARY DATE OF THE CLOSING DATE,  EXCLUSIVE  OF  AMOUNTS  CARRIED  FORWARD
 PURSUANT  TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY CLAIM
 UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE  TAXA-
 BLE  YEARS  THAT  INCLUDE  THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE
 CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
 THREE OF THIS SUBDIVISION.
   (3) IF THE AMOUNT OF THE CREDIT FOR A TAXABLE  YEAR  EXCEEDS  THE  TAX
 OTHERWISE  DUE  FOR  THAT  YEAR,  THE EXCESS SHALL BE CARRIED FORWARD TO
 ENSUING TAXABLE YEARS UNTIL FULLY USED. A  TAXPAYER  CLAIMING  A  CREDIT
 UNDER  THIS  SECTION  SHALL  SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   § 3. The tax law is amended by adding a new section 187-t to  read  as
 follows:
   187-T. CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
 1. THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS THAT
 MADE  A  CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS GROWTH
 FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH (B)  OF
 PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS CHAPTER.
 THE  CREDIT  MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE
 CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO  ANY  ENTITY  OTHER
 THAN AN AFFILIATE OF THE TAXPAYER.
   2.  ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO
 THE  RURAL  BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX CREDIT CERTIF-
 ICATE. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE  ELIGIBLE
 INVESTMENT  AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
 SARY DATE OF THE CLOSING DATE,  EXCLUSIVE  OF  AMOUNTS  CARRIED  FORWARD
 PURSUANT TO SUBDIVISION THREE OF THIS SECTION. THE TAXPAYER MAY CLAIM UP
 TO  TWENTY  PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXABLE
 YEARS THAT INCLUDE THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE CLOSING
 DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO SUBDIVISION THREE
 OF THIS SECTION.
   3. IF THE AMOUNT OF THE CREDIT FOR A  TAXABLE  YEAR  EXCEEDS  THE  TAX
 OTHERWISE  DUE  FOR  THAT  YEAR,  THE EXCESS SHALL BE CARRIED FORWARD TO
 ENSUING TAXABLE YEARS UNTIL FULLY USED. A  TAXPAYER  CLAIMING  A  CREDIT
 UNDER  THIS  SECTION  SHALL  SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 52 to read as follows:
   52.  CREDIT  FOR  CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
 (1) THERE IS HEREBY ALLOWED A NONREFUNDABLE  TAX  CREDIT  FOR  TAXPAYERS
 THAT  MADE  A  CREDIT-ELIGIBLE  CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER  SUBPARAGRAPH
 (B)  OF  PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS

 S. 4727                             9
 
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO  THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX  CREDIT  CERTIF-
 ICATE.  THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD  ANNIVER-
 SARY  DATE  OF  THE  CLOSING  DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
 PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY  CLAIM
 UP  TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXA-
 BLE YEARS THAT INCLUDE THE FOURTH AND FIFTH  ANNIVERSARY  DATES  OF  THE
 CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
 THREE OF THIS SUBDIVISION.
   (3)  IF  THE  AMOUNT  OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
 OTHERWISE DUE FOR THAT YEAR, THE EXCESS  SHALL  BE  CARRIED  FORWARD  TO
 ENSUING  TAXABLE  YEARS  UNTIL  FULLY USED. A TAXPAYER CLAIMING A CREDIT
 UNDER THIS SECTION SHALL SUBMIT A COPY OF  THE  TAX  CREDIT  CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   § 5. The state finance law is amended by adding a new section 99-aa to
 read as follows:
   §  99-AA. NEW YORK AGRICULTURE AND RURAL JOBS FUND. 1. THERE IS HEREBY
 ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMPTROLLER  AND  THE
 COMMISSIONER  OF  TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
 "NEW YORK AGRICULTURE AND RURAL JOBS FUND".
   2. SUCH FUND SHALL CONSIST OF ALL APPLICATION FEES SUBMITTED  PURSUANT
 TO  SUBPARAGRAPH  (F)  OF  PARAGRAPH  ONE  OF SUBDIVISION (B) OF SECTION
 FORTY-THREE OF THE TAX LAW, AND ALL OTHER MONEYS APPROPRIATED, CREDITED,
 OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
   3. MONEYS OF THE FUND,  FOLLOWING  APPROPRIATION  BY  THE  LEGISLATURE
 SHALL BE EXPENDED ONLY FOR THE PURPOSES OF PROVIDING FUNDING FOR THE NEW
 YORK  AGRICULTURE AND RURAL JOBS CREDIT SET FORTH IN SECTION FORTY-THREE
 OF THE TAX LAW. MONEYS SHALL BE PAID OUT OF THE FUND ON  THE  AUDIT  AND
 WARRANT  OF  THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY
 THE COMMISSIONER OF TAXATION AND FINANCE. ANY INTEREST RECEIVED  BY  THE
 COMPTROLLER  ON  MONEYS ON DEPOSIT IN THE NEW YORK AGRICULTURE AND RURAL
 JOBS FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND.
   § 6. This act shall take effect July 1, 2017.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4727--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2017
                                ___________
 
 Introduced  by  Sens.  SEWARD,  AKSHAR,  AMEDORE, BONACIC, CROCI, FUNKE,
   GALLIVAN, GRIFFO, HELMING, LITTLE, MARCHIONE, O'MARA, ORTT, RANZENHOF-
   ER, RITCHIE, ROBACH, SAVINO, SERINO, TEDISCO, VALESKY  --  read  twice
   and ordered printed, and when printed to be committed to the Committee
   on  Investigations  and  Government  Operations  -- recommitted to the
   Committee on Investigations and Government  Operations  in  accordance
   with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to providing  insurance  corpo-
   rations  with  a  tax  credit  for  investments made in rural business
   growth funds; and to amend the  state  finance  law,  in  relation  to
   establishing the New York agriculture and rural jobs fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new section 44  to  read
 as follows:
   § 44. NEW YORK AGRICULTURE AND RURAL JOBS CREDIT. (A) DEFINITIONS. FOR
 THE PURPOSE OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (1)  "AFFILIATE"  MEANS  A PERSON THAT DIRECTLY, OR INDIRECTLY THROUGH
 ONE OR MORE INTERMEDIARIES, CONTROLS, IS  CONTROLLED  BY,  OR  IS  UNDER
 COMMON CONTROL WITH ANOTHER PERSON. FOR THE PURPOSES OF THIS DIVISION, A
 PERSON  IS  "CONTROLLED  BY"  ANOTHER  PERSON  IF THE CONTROLLING PERSON
 HOLDS, DIRECTLY OR INDIRECTLY, THE MAJORITY VOTING OR OWNERSHIP INTEREST
 IN THE CONTROLLED PERSON OR HAS CONTROL OVER THE  DAY-TO-DAY  OPERATIONS
 OF THE CONTROLLED PERSON BY CONTRACT OR BY LAW.
   (2)  "CLOSING  DATE"  MEANS  THE DATE ON WHICH A RURAL BUSINESS GROWTH
 FUND HAS COLLECTED ALL OF THE AMOUNTS SPECIFIED BY SUBPARAGRAPHS (A) AND
 (B) OF PARAGRAPH SEVEN OF SUBDIVISION (B) OF THIS SECTION.
   (3) "CREDIT-ELIGIBLE CAPITAL CONTRIBUTION" MEANS AN INVESTMENT OF CASH
 BY A PERSON IN A RURAL BUSINESS GROWTH FUND THAT EQUALS THE AMOUNT SPEC-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08845-02-8

 S. 4727--A                          2
 
 IFIED ON A TAX CREDIT CERTIFICATE ISSUED BY THE DEPARTMENT UNDER SUBPAR-
 AGRAPH (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF  THIS  SECTION.    THE
 INVESTMENT  SHALL  PURCHASE  AN  EQUITY  INTEREST  IN THE RURAL BUSINESS
 GROWTH  FUND  OR  PURCHASE,  AT  PAR VALUE OR PREMIUM, A DEBT INSTRUMENT
 ISSUED BY THE RURAL GROWTH FUND THAT MEETS ALL OF THE  FOLLOWING  CRITE-
 RIA:
   (A) THE DEBT INSTRUMENT HAS AN ORIGINAL MATURITY DATE OF AT LEAST FIVE
 YEARS AFTER THE DATE OF ISSUANCE.
   (B)  THE  DEBT  INSTRUMENT HAS A REPAYMENT SCHEDULE THAT IS NOT FASTER
 THAN A LEVEL PRINCIPAL AMORTIZATION OVER FIVE YEARS.
   (C) THE DEBT INSTRUMENT HAS  NO  INTEREST,  DISTRIBUTION,  OR  PAYMENT
 FEATURES  DEPENDENT ON THE RURAL BUSINESS GROWTH FUND'S PROFITABILITY OR
 THE SUCCESS OF THE RURAL GROWTH INVESTMENTS.
   (4) "ELIGIBLE INVESTMENT AUTHORITY" MEANS THE  AMOUNT  STATED  ON  THE
 NOTICE ISSUED UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B)
 OF  THIS  SECTION  CERTIFYING  THE  RURAL BUSINESS GROWTH FUND. AT LEAST
 SIXTY-FIVE PERCENT OF A RURAL BUSINESS GROWTH FUND'S ELIGIBLE INVESTMENT
 AUTHORITY SHALL BE COMPRISED OF CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (5) A BUSINESS'S "PRINCIPAL BUSINESS OPERATIONS" ARE IN THIS STATE  IF
 AT  LEAST  EIGHTY  PERCENT  OF  THE  BUSINESS'S EMPLOYEES RESIDE IN THIS
 STATE, THE INDIVIDUALS WHO RECEIVE  EIGHTY  PERCENT  OF  THE  BUSINESS'S
 PAYROLL  RESIDE  IN  THIS  STATE,  OR THE BUSINESS HAS AGREED TO USE THE
 PROCEEDS OF A RURAL  GROWTH  INVESTMENT  TO  RELOCATE  AT  LEAST  EIGHTY
 PERCENT OF ITS EMPLOYEES TO THIS STATE OR PAY AT LEAST EIGHTY PERCENT OF
 ITS PAYROLL TO INDIVIDUALS RESIDING IN THIS STATE.
   (6) "RURAL AREA" MEANS EITHER OF THE FOLLOWING:
   (A)  AN  AREA OF THE STATE NOT IN A CITY OR TOWN THAT HAS A POPULATION
 OF MORE THAN FIFTY THOUSAND INHABITANTS ACCORDING TO THE LATEST DECENNI-
 AL CENSUS OF THE UNITED STATES OR IN THE URBANIZED AREA  CONTIGUOUS  AND
 ADJACENT  TO  A  CITY  OR  TOWN THAT HAS A POPULATION OF MORE THAN FIFTY
 THOUSAND INHABITANTS; OR
   (B) ANY AREA DETERMINED TO BE "RURAL IN CHARACTER" BY THE UNDER-SECRE-
 TARY OF AGRICULTURE FOR  RURAL  DEVELOPMENT  WITHIN  THE  UNITED  STATES
 DEPARTMENT OF AGRICULTURE.
   (7)  "RURAL  BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE
 TIME IF THE INITIAL INVESTMENT IN THE COMPANY BY A RURAL BUSINESS GROWTH
 FUND, HAS ITS PRINCIPAL BUSINESS OPERATIONS IN  THIS  STATE,  HAS  FEWER
 THAN  TWO  HUNDRED  FIFTY  EMPLOYEES  OR  NOT  MORE THAN FIFTEEN MILLION
 DOLLARS IN NET INCOME FOR THE PRECEDING TAXABLE YEAR, AND  MEETS  EITHER
 OF THE FOLLOWING CRITERIA:
   (A)  THE  BUSINESS'S  PRINCIPAL  BUSINESS  OPERATIONS ARE LOCATED IN A
 RURAL AREA; OR
   (B) THE BUSINESS PRODUCES OR PROVIDES ANY GOODS OR  SERVICES  NORMALLY
 USED  BY  FARMERS,  RANCHERS,  OR  PRODUCERS  AND  HARVESTERS OF AQUATIC
 PRODUCTS IN THEIR BUSINESS OPERATIONS, OR  TO  IMPROVE  THE  WELFARE  OR
 LIVELIHOOD OF SUCH PERSONS, OR IS INVOLVED IN THE PROCESSING AND MARKET-
 ING OF AGRICULTURAL PRODUCTS, FARM SUPPLY, AND INPUT SUPPLIERS.  FOR THE
 PURPOSES  OF  THIS  SECTION,  "NET  INCOME" MEANS FEDERAL ADJUSTED GROSS
 INCOME AS REQUIRED TO BE REPORTED UNDER THE INTERNAL REVENUE  CODE  LESS
 FEDERAL  AND STATE TAXES IMPOSED ON OR MEASURED BY INCOME.  ANY BUSINESS
 WHICH IS CLASSIFIED AS A RURAL BUSINESS  CONCERN  AT  THE  TIME  OF  THE
 INITIAL  INVESTMENT  IN  SAID  BUSINESS  BY A RURAL BUSINESS GROWTH FUND
 SHALL REMAIN CLASSIFIED AS A RURAL  BUSINESS  CONCERN  AND  MAY  RECEIVE
 FOLLOW-ON  INVESTMENTS  FROM  ANY  RURAL  BUSINESS GROWTH FUND, AND SUCH
 FOLLOW-ON INVESTMENTS SHALL BE RURAL GROWTH INVESTMENTS EVEN THOUGH SUCH

 S. 4727--A                          3
 
 BUSINESS MAY NOT MEET THE DEFINITION OF A RURAL BUSINESS CONCERN AT  THE
 TIME OF SUCH FOLLOW-ON INVESTMENTS.
   (8)  "RURAL  BUSINESS  GROWTH  FUND"  MEANS AN ENTITY CERTIFIED BY THE
 DEPARTMENT UNDER THIS SECTION.
   (9) "RURAL GROWTH INVESTMENT" MEANS ANY CAPITAL OR  EQUITY  INVESTMENT
 IN A RURAL BUSINESS CONCERN OR ANY LOAN TO A RURAL BUSINESS CONCERN WITH
 A TERM OF AT LEAST ONE YEAR.
   (10)  "TAXABLE  YEAR"  WHEN  USED IN REFERENCE TO AN INSURANCE COMPANY
 MEANS THE CALENDAR YEAR ENDING ON THE THIRTY-FIRST DAY OF DECEMBER  NEXT
 PRECEDING  THE  DAY  THE  ANNUAL REPORT IS REQUIRED TO BE RETURNED UNDER
 SUBDIVISION (D) OF THIS SECTION.
   (B) CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO  THOUSAND  EIGH-
 TEEN, AN APPLICANT THAT HAS DEVELOPED A BUSINESS PLAN TO INVEST IN RURAL
 BUSINESS  CONCERNS  IN THIS STATE AND HAS SUCCESSFULLY SOLICITED PRIVATE
 INVESTORS TO MAKE CAPITAL CONTRIBUTIONS IN SUPPORT OF THE PLAN MAY APPLY
 TO THE DEPARTMENT FOR CERTIFICATION AS A RURAL BUSINESS GROWTH FUND. THE
 APPLICATION SHALL INCLUDE ALL OF THE FOLLOWING:
   (A) THE TOTAL ELIGIBLE INVESTMENT AUTHORITY SOUGHT  BY  THE  APPLICANT
 UNDER THE BUSINESS PLAN;
   (B) DOCUMENTS AND OTHER EVIDENCE SUFFICIENT TO PROVE, TO THE SATISFAC-
 TION  OF  THE  DEPARTMENT, THAT THE APPLICANT MEETS ALL OF THE FOLLOWING
 CRITERIA: (I) THE APPLICANT OR AN AFFILIATE OF THE APPLICANT IS LICENSED
 AS A RURAL BUSINESS INVESTMENT COMPANY UNDER 7 U.S.C. 2009CC,  OR  AS  A
 SMALL BUSINESS INVESTMENT COMPANY UNDER 15 U.S.C. 681.
   (II)  AS  OF  THE DATE THE APPLICATION IS SUBMITTED, THE APPLICANT HAS
 INVESTED MORE THAN ONE HUNDRED MILLION DOLLARS IN  OPERATING  COMPANIES,
 INCLUDING  AT LEAST FIFTY MILLION DOLLARS IN OPERATING COMPANIES LOCATED
 IN RURAL AREAS. IN COMPUTING INVESTMENTS UNDER THIS DIVISION, THE APPLI-
 CANT MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT.
   (C) AN ESTIMATE OF THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED
 IN THIS STATE AS A RESULT OF THE APPLICANT'S RURAL GROWTH INVESTMENTS;
   (D) A REVENUE IMPACT ASSESSMENT FOR  THE  APPLICANT'S  PROPOSED  RURAL
 GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE-
 PENDENT  ECONOMIC  FORECASTING FIRM USING A DYNAMIC ECONOMIC FORECASTING
 MODEL.   THE REVENUE IMPACT ASSESSMENT  SHALL  ANALYZE  THE  APPLICANT'S
 BUSINESS  PLAN  OVER THE TEN YEARS FOLLOWING THE DATE THE APPLICATION IS
 SUBMITTED TO THE DEPARTMENT.
   (E) A SIGNED AFFIDAVIT FROM EACH INVESTOR  SUCCESSFULLY  SOLICITED  BY
 THE  APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN SUPPORT
 OF THE BUSINESS PLAN. EACH AFFIDAVIT SHALL  INCLUDE  INFORMATION  SUFFI-
 CIENT  FOR THE TAX COMMISSIONER TO IDENTIFY THE INVESTOR AND SHALL STATE
 THE AMOUNT OF THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION.
   (F) A NONREFUNDABLE APPLICATION FEE OF FIVE THOUSAND DOLLARS.
   (2) THE DEPARTMENT SHALL REVIEW AND MAKE A DETERMINATION WITH  RESPECT
 TO  EACH  APPLICATION  SUBMITTED UNDER PARAGRAPH ONE OF THIS SUBDIVISION
 WITHIN THIRTY DAYS OF RECEIPT. THE  DEPARTMENT  SHALL  REVIEW  AND  MAKE
 DETERMINATIONS  ON  THE  APPLICATIONS IN THE ORDER IN WHICH THE APPLICA-
 TIONS ARE RECEIVED BY  THE  DEPARTMENT.  APPLICATIONS  RECEIVED  BY  THE
 DEPARTMENT  ON THE SAME DAY SHALL BE DEEMED TO HAVE BEEN RECEIVED SIMUL-
 TANEOUSLY. EXCEPT AS PROVIDED IN PARAGRAPH FOUR OF  SUBDIVISION  (C)  OF
 THIS  SECTION,  THE  DEPARTMENT  SHALL NOT APPROVE MORE THAN ONE HUNDRED
 MILLION DOLLARS IN ELIGIBLE INVESTMENT AUTHORITY OR MORE THAN SIXTY-FIVE
 MILLION DOLLARS IN CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (3) THE DEPARTMENT SHALL DENY  AN  APPLICATION  SUBMITTED  UNDER  THIS
 SECTION  IF ANY OF THE FOLLOWING ARE TRUE: (A) THE APPLICATION IS INCOM-
 PLETE.

 S. 4727--A                          4
 
   (B) THE APPLICATION FEE IS NOT PAID IN FULL.
   (C)  THE  APPLICANT  DOES  NOT  SATISFY  ALL THE CRITERIA DESCRIBED IN
 SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION.
   (D) THE REVENUE IMPACT ASSESSMENT SUBMITTED UNDER SUBPARAGRAPH (D)  OF
 PARAGRAPH  ONE  OF THIS SUBDIVISION DOES NOT DEMONSTRATE THAT THE APPLI-
 CANT'S BUSINESS PLAN WILL RESULT IN A POSITIVE ECONOMIC IMPACT  ON  THIS
 STATE  OVER  A  TEN-YEAR  PERIOD  THAT  EXCEEDS  THE ELIGIBLE INVESTMENT
 AUTHORITY SOUGHT BY THE APPLICANT.
   (E) THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS DESCRIBED IN  AFFIDAVITS
 SUBMITTED UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION DO
 NOT  EQUAL SIXTY-FIVE PERCENT OF THE TOTAL AMOUNT OF ELIGIBLE INVESTMENT
 AUTHORITY SOUGHT UNDER THE APPLICANT'S BUSINESS PLAN.
   (F) THE DEPARTMENT HAS ALREADY APPROVED THE MAXIMUM AMOUNT OF ELIGIBLE
 INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL  CONTRIBUTIONS  ALLOWED
 UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
   (4)  IF  THE DEPARTMENT DENIES AN APPLICATION UNDER PARAGRAPH THREE OF
 THIS SUBDIVISION, THE DEPARTMENT SHALL SEND NOTICE OF ITS  DETERMINATION
 OF THE APPLICANT. THE NOTICE SHALL INCLUDE THE REASONS THAT THE APPLICA-
 TION WAS DENIED. IF THE APPLICATION WAS DENIED FOR ANY REASON OTHER THAN
 THE  REASON  SPECIFIED  IN  SUBPARAGRAPH  (F) OF PARAGRAPH THREE OF THIS
 SUBDIVISION, THE APPLICANT MAY PROVIDE  ADDITIONAL  INFORMATION  TO  THE
 DEPARTMENT  TO  COMPLETE,  CLARIFY,  OR CURE DEFECTS IN THE APPLICATION.
 THE ADDITIONAL INFORMATION MUST BE SUBMITTED WITHIN  THIRTY  DAYS  AFTER
 THE  DATE THE NOTICE OF DENIAL WAS SENT BY THE DEPARTMENT. IF THE PERSON
 OR ENTITY SUBMITS ADDITIONAL INFORMATION WITHIN THIRTY DAYS, THE DEPART-
 MENT SHALL RECONSIDER THE APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING
 SUCH ADDITIONAL INFORMATION. IF AFTER SUBMISSION OF ADDITIONAL  INFORMA-
 TION,  THE DEPARTMENT APPROVES THE APPLICATION, THEN THE SUBMISSION DATE
 SHALL BE THE DATE OF THE ORIGINAL SUBMISSION OF THE APPLICATION. IF  THE
 PERSON  OR  ENTITY  DOES NOT SUBMIT ADDITIONAL INFORMATION WITHIN THIRTY
 DAYS AFTER THE NOTICE OF DENIAL WAS SENT, THE APPLICANT MAY SUBMIT A NEW
 APPLICATION WITH A NEW SUBMISSION DATE AT ANY TIME.
   (5) OF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS  WOULD
 RESULT  IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED BY
 PARAGRAPH TWO OF THIS SUBDIVISION, THE DEPARTMENT  SHALL  PROPORTIONALLY
 REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL
 CONTRIBUTIONS  FOR  EACH  APPROVED  APPLICATION  AS  NECESSARY  TO AVOID
 EXCEEDING THE LIMIT.
   (6) THE DEPARTMENT SHALL NOT DENY A RURAL BUSINESS GROWTH FUND  APPLI-
 CATION OR REDUCE THE REQUESTED ELIGIBLE INVESTMENT AUTHORITY FOR REASONS
 OTHER THAN THOSE DESCRIBED IN PARAGRAPHS THREE AND FIVE OF THIS SUBDIVI-
 SION.  IF THE DEPARTMENT APPROVES SUCH APPLICATION, THE DEPARTMENT SHALL
 ISSUE ALL OF THE FOLLOWING NOTICES: (A)  TO  THE  APPLICANT,  A  WRITTEN
 NOTICE  CERTIFYING  THAT  THE  APPLICANT  QUALIFIES  AS A RURAL BUSINESS
 GROWTH FUND AND  SPECIFYING  THE  AMOUNT  OF  THE  APPLICANT'S  ELIGIBLE
 INVESTMENT  AUTHORITY; (B) TO EACH INVESTOR WHOSE AFFIDAVIT WAS INCLUDED
 IN THE APPLICATION, A TAX CREDIT CERTIFICATE SPECIFYING  THE  AMOUNT  OF
 THE  INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION; (C) TO THE COMMIS-
 SIONER, A COPY OF EACH TAX CREDIT CERTIFICATE ISSUED UNDER  SUBPARAGRAPH
 (B) OF THIS PARAGRAPH.
   (7)  A  RURAL BUSINESS GROWTH FUND SHALL COMPLETE ALL OF THE FOLLOWING
 WITHIN SIXTY DAYS OF RECEIVING THE CERTIFICATION ISSUED  UNDER  SUBPARA-
 GRAPH (A) OF PARAGRAPH SIX OF THIS SUBDIVISION:
   (A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES-
 TOR  ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH (B) OF PARAGRAPH
 SIX OF THIS SUBDIVISION;

 S. 4727--A                          5
 
   (B) COLLECT ONE OR MORE INVESTMENTS OF CASH, WHICH SHALL  PURCHASE  AN
 EQUITY  INTEREST IN THE RURAL GROWTH FUND OR A DEBT INSTRUMENT ISSUED BY
 THE RURAL GROWTH FUND AT PAR VALUE OR PREMIUM, WITH A MATURITY  DATE  OF
 AT  LEAST  FIVE  YEARS  FROM  THE  CLOSING  DATE THAT, WHEN ADDED TO THE
 CONTRIBUTIONS  COLLECTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH, EQUAL
 THE FUND'S ELIGIBLE INVESTMENT AUTHORITY. AT LEAST TEN  PERCENT  OF  THE
 FUND'S  ELIGIBLE  INVESTMENT  AUTHORITY  SHALL  BE  COMPRISED  OF EQUITY
 INVESTMENTS CONTRIBUTED BY AFFILIATES OF THE RURAL BUSINESS GROWTH FUND,
 INCLUDING EMPLOYEES, OFFICERS, AND DIRECTORS OF SUCH AFFILIATES.
   (C) SEND TO THE DEPARTMENT DOCUMENTATION SUFFICIENT TO PROVE THAT  THE
 AMOUNTS  DESCRIBED  IN  SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH HAVE
 BEEN COLLECTED. IF THE RURAL BUSINESS GROWTH FUND FAILS TO FULLY  COMPLY
 WITH THIS PARAGRAPH, THE FUND'S CERTIFICATION SHALL LAPSE.
   (8)  ELIGIBLE  INVESTMENT  AUTHORITY AND CORRESPONDING CREDIT-ELIGIBLE
 CAPITAL CONTRIBUTIONS THAT LAPSE UNDER PARAGRAPH SEVEN OF THIS  SUBDIVI-
 SION  DO  NOT COUNT TOWARD LIMITS ON TOTAL ELIGIBLE INVESTMENT AUTHORITY
 AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS PRESCRIBED IN PARAGRAPH TWO OF
 THIS SUBDIVISION. ONCE ELIGIBLE INVESTMENT  AUTHORITY  HAS  LAPSED,  THE
 DEPARTMENT  SHALL  FIRST  AWARD  LAPSED AUTHORITY PRO RATA TO EACH RURAL
 BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE  REQUESTED  ELIGIBLE
 INVESTMENT  AUTHORITY  UNDER  PARAGRAPH  FIVE  OF  THIS SUBDIVISION. ANY
 REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT
 TO NEW APPLICANTS.
   (9) APPLICATION FEES SUBMITTED TO THE DEPARTMENT PURSUANT TO  SUBPARA-
 GRAPH  (F) OF PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE CREDITED TO THE
 NEW YORK AGRICULTURE AND RURAL JOBS FUND,  CREATED  IN  SECTION  NINETY-
 NINE-BB OF THE STATE FINANCE LAW.
   (C) REVOCATION OF CERTIFICATION. (1) THE DEPARTMENT SHALL REVOKE A TAX
 CREDIT  CERTIFICATE  ISSUED UNDER SUBDIVISION (B) OF THIS SECTION IF ANY
 OF THE FOLLOWING OCCUR WITH RESPECT TO  A  RURAL  BUSINESS  GROWTH  FUND
 BEFORE  THE FUND EXITS THE PROGRAM UNDER PARAGRAPH FIVE OF THIS SUBDIVI-
 SION.
   (A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE  CAPI-
 TAL  CONTRIBUTION WAS MADE DOES NOT INVEST SIXTY PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 TWO  YEARS  OF  THE CLOSING DATE AND ONE HUNDRED PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 THREE YEARS OF THE CLOSING DATE.
   (B)  AFTER  INVESTING  ONE  HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT
 AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL  BUSINESS
 GROWTH  FUND  FAILS TO MAINTAIN THAT INVESTMENT UNTIL THE FIFTH ANNIVER-
 SARY OF THE CLOSING DATE, INCLUDING THE REINVESTMENT OF SUCH INVESTMENT.
 FOR THE PURPOSES OF THIS SECTION, AN INVESTMENT IS "MAINTAINED" EVEN  IF
 THE  INVESTMENT  IS  SOLD OR REPAID SO LONG AS THE RURAL BUSINESS GROWTH
 FUND REINVESTS AN AMOUNT EQUAL TO THE CAPITAL RETURNED OR  RECOVERED  BY
 THE  FUND  FROM  THE ORIGINAL INVESTMENT, EXCLUSIVE OF ANY PROFITS REAL-
 IZED, IN OTHER RURAL GROWTH INVESTMENTS  IN  THIS  STATE  WITHIN  TWELVE
 MONTHS OF THE RECEIPT OF SUCH CAPITAL.  AMOUNTS RECEIVED PERIODICALLY BY
 A RURAL BUSINESS GROWTH FUND SHALL BE TREATED AS CONTINUALLY INVESTED IN
 RURAL  GROWTH  INVESTMENTS  IF THE AMOUNTS ARE REINVESTED IN ONE OR MORE
 RURAL GROWTH INVESTMENTS BY THE END OF THE FOLLOWING  CALENDAR  YEAR.  A
 RURAL  BUSINESS GROWTH FUND IS NOT REQUIRED TO REINVEST CAPITAL RETURNED
 FROM RURAL GROWTH INVESTMENTS IN THE SIX  MONTHS  IMMEDIATELY  PRECEDING
 THE FIFTH ANNIVERSARY OF THE CLOSING DATE, AND SUCH RURAL GROWTH INVEST-
 MENTS  SHALL  BE  CONSIDERED  HELD CONTINUOUSLY BY THE RURAL GROWTH FUND
 THROUGH THE FIFTH ANNIVERSARY OF THE CLOSING DATE.

 S. 4727--A                          6
 
   (C) THE RURAL BUSINESS GROWTH FUND INVESTS MORE THAN  THE  GREATER  OF
 SEVEN  MILLION  FIVE  HUNDRED  THOUSAND DOLLARS OR TWENTY PERCENT OF ITS
 ELIGIBLE INVESTMENT  AUTHORITY  IN  THE  SAME  RURAL  BUSINESS  CONCERN,
 INCLUDING  AMOUNTS  INVESTED IN AFFILIATES OF THE RURAL BUSINESS CONCERN
 BUT  EXCLUDING AMOUNTS REINVESTED IN THE RURAL BUSINESS GROWTH FUND WITH
 REPAID OR REDEEMED RURAL  BUSINESS  GROWTH  INVESTMENTS,  PROVIDED  SUCH
 REINVESTMENTS  SHALL  NOT  COUNT TOWARDS THE REQUIREMENT OF SUBPARAGRAPH
 (A) OF THIS PARAGRAPH.
   (D) THE RURAL BUSINESS GROWTH FUND MAKES A RURAL GROWTH INVESTMENT  IN
 A  RURAL  BUSINESS CONCERN THAT DIRECTLY OR INDIRECTLY THROUGH AN AFFIL-
 IATE OWNS, HAS THE RIGHT TO ACQUIRE AN OWNERSHIP INTEREST, MAKE  A  LOAN
 TO,  OR  MAKE AN INVESTMENT IN THE RURAL BUSINESS GROWTH FUND, AN AFFIL-
 IATE OF THE RURAL BUSINESS GROWTH FUND, OR  AN  INVESTOR  IN  THE  RURAL
 BUSINESS  GROWTH  FUND.  THIS PARAGRAPH DOES NOT APPLY TO INVESTMENTS IN
 PUBLICLY TRADED SECURITIES BY A RURAL BUSINESS CONCERN OR  AN  OWNER  OR
 AFFILIATE OF SUCH CONCERN.
   (2)  BEFORE TAKING ACTION UNDER PARAGRAPH ONE OF THIS SUBDIVISION, THE
 DEPARTMENT SHALL NOTIFY THE RURAL BUSINESS GROWTH FUND  OF  THE  REASONS
 FOR  THE  PENDING ACTION. IF THE RURAL BUSINESS GROWTH FUND CORRECTS THE
 VIOLATIONS, OTHER THAN VIOLATIONS OF SUBPARAGRAPH (D) OF  PARAGRAPH  ONE
 OF  THIS  SUBDIVISION, OUTLINED IN THE NOTICE TO THE SATISFACTION OF THE
 DEPARTMENT WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE OF THE NOTICE  WAS
 SENT,  THE  DEPARTMENT  SHALL  NOT REVOKE THE TAX CREDIT CERTIFICATES OR
 LEVY A FINE.
   (3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH
 ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL MAKE AN  ASSESSMENT  FOR
 THE  AMOUNT  OF  THE CREDIT CLAIMED BY THE CERTIFICATE HOLDER BEFORE THE
 CERTIFICATE WAS REVOKED. THE  COMMISSIONER  SHALL  MAKE  THE  ASSESSMENT
 WITHIN ONE YEAR AFTER THE CERTIFICATE HAS BEEN REVOKED.
   (4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS
 SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-EL-
 IGIBLE  CAPITAL  CONTRIBUTIONS  DO  NOT  COUNT TOWARD THE LIMIT ON TOTAL
 ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL  CONTRIBUTIONS
 DESCRIBED  BY  PARAGRAPH  TWO  OF  SUBDIVISION  (B) OF THIS SECTION. THE
 DEPARTMENT SHALL FIRST AWARD REVERTED AUTHORITY PRO RATA TO  EACH  RURAL
 BUSINESS  GROWTH  FUND THAT WAS AWARDED LESS THAN THE REQUESTED ELIGIBLE
 INVESTMENT AUTHORITY UNDER PARAGRAPH FIVE OF  SUBDIVISION  (B)  OF  THIS
 SECTION.  ANY  REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY
 THE DEPARTMENT TO NEW APPLICANTS.
   (5) (A) ON OR AFTER THE FIFTH ANNIVERSARY OF THE CLOSING DATE, A RURAL
 BUSINESS GROWTH FUND THAT HAS NOT COMMITTED ANY OF THE ACTS DESCRIBED IN
 PARAGRAPH ONE OF THIS SUBDIVISION MAY APPLY TO THE  DEPARTMENT  TO  EXIT
 THE  PROGRAM AS A RURAL BUSINESS GROWTH FUND AND NO LONGER BE SUBJECT TO
 REGULATION UNDER THIS SECTION.  THE  DEPARTMENT  SHALL  RESPOND  TO  THE
 APPLICATION  WITHIN  THIRTY  DAYS  AFTER RECEIVING SUCH APPLICATION.  IN
 EVALUATING SUCH REQUEST THE FACT THAT NO TAX  CREDIT  CERTIFICATES  HAVE
 BEEN  REVOKED  WITH  RESPECT  TO THE RURAL BUSINESS GROWTH FUND SHALL BE
 SUFFICIENT EVIDENCE TO PROVE THAT THE  FUND  IS  ELIGIBLE  TO  EXIT  THE
 PROGRAM.  THE  DEPARTMENT  SHALL  NOT  UNREASONABLY  DENY AN APPLICATION
 SUBMITTED UNDER THIS SUBDIVISION.
   (B) THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION WITH RESPECT
 TO AN APPLICATION SUBMITTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH  TO
 THE RURAL BUSINESS GROWTH FUND. IF THE APPLICATION IS DENIED, THE NOTICE
 SHALL INCLUDE THE REASONS FOR THE DETERMINATION.
   (C)  THE  DEPARTMENT  SHALL NOT REVOKE A TAX CREDIT CERTIFICATE DUE TO
 ANY ACTIONS OF A RURAL BUSINESS GROWTH FUND THAT OCCUR  AFTER  THE  DATE

 S. 4727--A                          7
 
 THE FUND'S APPLICATION FOR EXITING THE PROGRAM IS APPROVED UNDER SUBPAR-
 AGRAPH (A) OF THIS PARAGRAPH.
   (6)  IF  THE  NUMBER OF JOBS CREATED OR RETAINED BY THE RURAL BUSINESS
 CONCERN THAT RECEIVED RURAL GROWTH INVESTMENTS FROM THE  RURAL  BUSINESS
 GROWTH FUND IS:
   (A)  LESS  THAN  SIXTY PERCENT OF THE NUMBER PROJECTED IN THE APPROVED
 RURAL BUSINESS GROWTH FUND'S BUSINESS PLAN FILED AS PART OF ITS APPLICA-
 TION FOR CERTIFICATION UNDER SUBDIVISION (B) OF THIS SECTION,  THEN  THE
 STATE  SHALL RECEIVE TWENTY PERCENT OF ANY DISTRIBUTION OR PAYMENT TO AN
 EQUITY HOLDER IN AN APPROVED RURAL BUSINESS GROWTH FUND IN EXCESS OF THE
 SUM OF THE AMOUNT OF EQUITY CAPITAL INVESTED IN THE FUND BY SUCH  EQUITY
 HOLDER AND AN AMOUNT EQUAL TO ANY PROJECTED INCREASE IN THE EQUITY HOLD-
 ER'S  FEDERAL  OR STATE TAX LIABILITY, INCLUDING PENALTIES AND INTEREST,
 RELATED TO THE EQUITY HOLDER'S OWNERSHIP, MANAGEMENT,  OR  OPERATION  OF
 THE FUND; OR
   (B)  GREATER  THAN  SIXTY  PERCENT BUT LESS THAN EIGHTY PERCENT OF THE
 NUMBER PROJECTED IN THE APPROVED RURAL BUSINESS GROWTH  FUND'S  BUSINESS
 PLAN  FILED  AS PART OF ITS APPLICATION FOR CERTIFICATION UNDER SUBDIVI-
 SION (B) OF THIS SECTION, THEN THE STATE SHALL RECEIVE  TEN  PERCENT  OF
 ANY  DISTRIBUTION  OR  PAYMENT  TO AN EQUITY HOLDER IN AN APPROVED RURAL
 BUSINESS GROWTH FUND IN EXCESS OF THE SUM OF THE AMOUNT OF EQUITY  CAPI-
 TAL  INVESTED  IN  THE FUND BY SUCH EQUITY HOLDER AND AN AMOUNT EQUAL TO
 ANY PROJECTED INCREASE IN THE  EQUITY  HOLDER'S  FEDERAL  OR  STATE  TAX
 LIABILITY, INCLUDING PENALTIES AND INTEREST, RELATED TO THE EQUITY HOLD-
 ER'S OWNERSHIP, MANAGEMENT, OR OPERATION OF THE FUND.
   (7)  A  RURAL BUSINESS GROWTH FUND MAY, PRIOR TO MAKING A RURAL GROWTH
 INVESTMENT, REQUEST FROM THE DEPARTMENT A WRITTEN  DETERMINATION  AS  TO
 WHETHER  THE BUSINESS ENTITY IN WHICH IT PROPOSES TO INVEST QUALIFIES AS
 A RURAL BUSINESS CONCERN.
   (D) REPORTS. (1) EACH RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT
 TO THE DEPARTMENT ON OR BEFORE THE FIFTH BUSINESS DAY AFTER  THE  SECOND
 AND  THIRD  ANNIVERSARIES  OF THE CLOSING DATE. THE REPORT SHALL PROVIDE
 DOCUMENTATION AS TO THE RURAL GROWTH INVESTMENTS MADE BY THE RURAL BUSI-
 NESS GROWTH FUND.  SUCH DOCUMENTATION SHALL INCLUDE THE FOLLOWING:
   (A) A BANK STATEMENT OF THE RURAL BUSINESS GROWTH FUND DISPLAYING EACH
 RURAL GROWTH INVESTMENT;
   (B) THE NAME AND LOCATION OF EACH RURAL BUSINESS CONCERN IN WHICH  THE
 RURAL BUSINESS GROWTH FUND HAS MADE A RURAL GROWTH INVESTMENT, INCLUDING
 EVIDENCE THAT THE BUSINESS CONCERN WAS QUALIFIED AT THE TIME THE INVEST-
 MENT WAS MADE.
   (2)  ON  OR BEFORE THE LAST DAY OF FEBRUARY OF EACH YEAR FOLLOWING THE
 YEAR IN WHICH THE REPORT REQUIRED UNDER PARAGRAPH ONE OF  THIS  SUBDIVI-
 SION  IS  DUE,  THE  RURAL  BUSINESS  GROWTH FUND SHALL SUBMIT AN ANNUAL
 REPORT TO THE DEPARTMENT INCLUDING THE FOLLOWING:
   (A) THE NUMBER OF EMPLOYMENT POSITIONS CREATED OR RETAINED AS A RESULT
 OF THE FUND'S RURAL GROWTH INVESTMENTS AS OF THE LAST DAY OF THE PRECED-
 ING CALENDAR YEAR;
   (B) THE AVERAGE ANNUAL SALARY OF THE POSITIONS DESCRIBED  IN  SUBPARA-
 GRAPH (A) OF THIS PARAGRAPH;
   (C) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
   (3)  THE  DEPARTMENT  SHALL  ADOPT  RULES  NECESSARY TO IMPLEMENT THIS
 SUBDIVISION.
   § 2. Section 1511 of the tax law is amended by adding a  new  subdivi-
 sion (dd) to read as follows:
   (DD)  CREDIT  FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
 (1) THERE IS HEREBY ALLOWED A NONREFUNDABLE  TAX  CREDIT  FOR  TAXPAYERS

 S. 4727--A                          8
 
 THAT  MADE  A  CREDIT-ELIGIBLE  CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER  SUBPARAGRAPH
 (B)  OF  PARAGRAPH  SIX OF SUBDIVISION (B) OF SECTION FORTY-FOUR OF THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE  AND  SECTION  ONE THOUSAND ONE HUNDRED TWELVE OF THE INSURANCE LAW.
 THE CREDIT MAY NOT BE SOLD, TRANSFERRED,  OR  ALLOCATED  TO  ANY  ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO  THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX  CREDIT  CERTIF-
 ICATE.  THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD  ANNIVER-
 SARY  DATE  OF  THE  CLOSING  DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
 PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY  CLAIM
 UP  TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXA-
 BLE YEARS THAT INCLUDE THE FOURTH AND FIFTH  ANNIVERSARY  DATES  OF  THE
 CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
 THREE OF THIS SUBDIVISION.
   (3)  IF  THE  AMOUNT  OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
 OTHERWISE DUE FOR THAT YEAR, THE EXCESS  SHALL  BE  CARRIED  FORWARD  TO
 ENSUING  TAXABLE  YEARS  UNTIL  FULLY USED. A TAXPAYER CLAIMING A CREDIT
 UNDER THIS SECTION SHALL SUBMIT A COPY OF  THE  TAX  CREDIT  CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   §  3.  The tax law is amended by adding a new section 187-q to read as
 follows:
   § 187-Q. CREDIT FOR CERTAIN INVESTMENTS TO  A  RURAL  BUSINESS  GROWTH
 FUND.  1. THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAY-
 ERS THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER  SUBPARAGRAPH
 (B)  OF  PARAGRAPH  SIX OF SUBDIVISION (B) OF SECTION FORTY-FOUR OF THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   2. ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT  EQUAL
 TO  THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX  CREDIT  CERTIF-
 ICATE.  THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD  ANNIVER-
 SARY  DATE  OF  THE  CLOSING  DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
 PURSUANT TO SUBDIVISION THREE OF THIS SECTION. THE TAXPAYER MAY CLAIM UP
 TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR  THE  TAXABLE
 YEARS THAT INCLUDE THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE CLOSING
 DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO SUBDIVISION THREE
 OF THIS SECTION.
   3.  IF  THE  AMOUNT  OF  THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
 OTHERWISE DUE FOR THAT YEAR, THE EXCESS  SHALL  BE  CARRIED  FORWARD  TO
 ENSUING  TAXABLE  YEARS  UNTIL  FULLY USED. A TAXPAYER CLAIMING A CREDIT
 UNDER THIS SECTION SHALL SUBMIT A COPY OF  THE  TAX  CREDIT  CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   §  4. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. CREDIT FOR CERTAIN INVESTMENTS TO A RURAL  BUSINESS  GROWTH  FUND.
 (1)  THERE  IS  HEREBY  ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS
 THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO  A  RURAL  BUSINESS

 S. 4727--A                          9
 
 GROWTH  FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
 (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION  FORTY-FOUR  OF  THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO  THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX  CREDIT  CERTIF-
 ICATE.  THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD  ANNIVER-
 SARY  DATE  OF  THE  CLOSING  DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
 PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY  CLAIM
 UP  TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXA-
 BLE YEARS THAT INCLUDE THE FOURTH AND FIFTH  ANNIVERSARY  DATES  OF  THE
 CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
 THREE OF THIS SUBDIVISION.
   (3)  IF  THE  AMOUNT  OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
 OTHERWISE DUE FOR THAT YEAR, THE EXCESS  SHALL  BE  CARRIED  FORWARD  TO
 ENSUING  TAXABLE  YEARS  UNTIL  FULLY USED. A TAXPAYER CLAIMING A CREDIT
 UNDER THIS SECTION SHALL SUBMIT A COPY OF  THE  TAX  CREDIT  CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   § 5. The state finance law is amended by adding a new section 99-bb to
 read as follows:
   §  99-BB. NEW YORK AGRICULTURE AND RURAL JOBS FUND. 1. THERE IS HEREBY
 ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMPTROLLER  AND  THE
 COMMISSIONER  OF  TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
 "NEW YORK AGRICULTURE AND RURAL JOBS FUND".
   2. SUCH FUND SHALL CONSIST OF ALL APPLICATION FEES SUBMITTED  PURSUANT
 TO  SUBPARAGRAPH  (F)  OF  PARAGRAPH  ONE  OF SUBDIVISION (B) OF SECTION
 FORTY-FOUR OF THE TAX LAW, AND ALL OTHER MONEYS APPROPRIATED,  CREDITED,
 OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
   3.  MONEYS  OF  THE  FUND,  FOLLOWING APPROPRIATION BY THE LEGISLATURE
 SHALL BE EXPENDED ONLY FOR THE PURPOSES OF PROVIDING FUNDING FOR THE NEW
 YORK AGRICULTURE AND RURAL JOBS CREDIT SET FORTH IN  SECTION  FORTY-FOUR
 OF  THE  TAX  LAW. MONEYS SHALL BE PAID OUT OF THE FUND ON THE AUDIT AND
 WARRANT OF THE STATE COMPTROLLER ON VOUCHERS APPROVED AND  CERTIFIED  BY
 THE  COMMISSIONER  OF TAXATION AND FINANCE. ANY INTEREST RECEIVED BY THE
 COMPTROLLER ON MONEYS ON DEPOSIT IN THE NEW YORK AGRICULTURE  AND  RURAL
 JOBS FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND.
   § 6. This act shall take effect July 1, 2018.