S T A T E   O F   N E W   Y O R K
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                                   2901
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2019
                                ___________
 
 Introduced by M. of A. LENTOL -- read once and referred to the Committee
   on Higher Education
 
 AN ACT to amend the education law and the tax law, in relation to estab-
   lishing the New York entrepreneur program act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York entrepreneur program act".
   §  2.  Article  5 of the education law is amended by adding a new part
 2-A to read as follows:
                                 PART II-A
                     NEW YORK ENTREPRENEUR PROGRAM ACT
 SECTION 286. NEW YORK ENTREPRENEUR PROGRAM ESTABLISHED; DEFINITIONS.
         286-A. OVERSIGHT.
         286-B. LOAN DEFERRALS AND JOB CREATION.
         286-C. TAX CREDIT FOR SUPPORTING BUSINESSES.
   § 286. NEW YORK ENTREPRENEUR PROGRAM  ESTABLISHED;  DEFINITIONS.    1.
 THERE  IS  HEREBY  ESTABLISHED A NEW YORK ENTREPRENEUR PROGRAM UNDER THE
 PURVIEW OF THE REGENTS AND THE BOARD FOR ANY STARTUP BUSINESS LOCATED AT
 ANY OF THE CITY UNIVERSITY OF  NEW  YORK'S  COMMUNITY  COLLEGES.    SUCH
 PROGRAM  SHALL PROVIDE ACCESS TO TECHNOLOGY TO A SELECT GROUP OF STARTUP
 ENTREPRENEURS HELPING THEM CREATE BUSINESSES THAT GROW NEW YORK  STATE'S
 ECONOMY.  THE  PROGRAM  SHALL  NOT PROVIDE BUSINESS LOANS TO THE PARTIC-
 IPANTS.
   2. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING  TERMS  SHALL  HAVE
 THE FOLLOWING MEANINGS:
   (A) "BOARD" SHALL MEAN THE BOARD OF TRUSTEES OF THE CITY UNIVERSITY OF
 NEW YORK.
   (B)  "PARTICIPANT"  SHALL  MEAN  ANY  COLLEGE GRADUATE ACCEPTED TO THE
 PROGRAM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04452-01-9
              

 A. 2901                             2
 
   (C) "PROGRAM" SHALL MEAN THE NEW YORK ENTREPRENEUR PROGRAM ESTABLISHED
 PURSUANT TO THIS SECTION.
   (D) "REGENTS" SHALL MEAN THE BOARD OF REGENTS OF THE STATE UNIVERSITY.
   (E) "SCHOOL" SHALL MEAN ANY COLLEGE WITHIN THE STATE UNIVERSITY OR THE
 CITY UNIVERSITY OF NEW YORK.
   (F) "STARTUP BUSINESS" SHALL MEAN AN ENTREPRENEURIAL IDEA SUPPORTED BY
 A  BUSINESS  PLAN THAT A POTENTIAL PARTICIPANT PREPARES WHEN APPLYING TO
 THE PROGRAM.
   (G) "SUPPORTING BUSINESS" SHALL MEAN ANY  PERSON,  FIRM,  CORPORATION,
 PARTNERSHIP  OR  OTHER  BUSINESS ENTITY WHICH ASSISTS A STARTUP BUSINESS
 DURING THE FIVE YEAR PERIOD DURING WHICH SUCH STARTUP BUSINESS  IS  PART
 OF THE PROGRAM.
   3. THE REGENTS SHALL PROMULGATE SUCH RULES AND REGULATIONS AS THEY SEE
 FIT TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE.
   § 286-A. OVERSIGHT. 1. (A) THE REGENTS, IN CONSULTATION WITH THE BOARD
 FOR  ANY STARTUP BUSINESS TO BE LOCATED AT ANY OF THE CITY UNIVERSITY OF
 NEW YORK'S COMMUNITY COLLEGES, SHALL SELECT PARTICIPANTS' STARTUP  BUSI-
 NESSES  BASED  ON THE QUALITY OF THEIR BUSINESS PROPOSAL, EXPERIENCE AND
 ABILITY TO OBTAIN OUTSIDE FINANCING.
   (B) SUCH PROGRAM SHALL ACCEPT A MAXIMUM OF THREE HUNDRED  PARTICIPANTS
 BUT  SHALL  NOT  ACCEPT MORE THAN FIFTY PARTICIPANTS INTO THE PROGRAM IN
 ANY YEAR.
   2. IN ADDITION TO THE LOAN DEFERRAL SET FORTH IN SECTION  TWO  HUNDRED
 EIGHTY-SIX-B  OF THIS ARTICLE, THE REGENTS AND THE BOARD FOR ANY STARTUP
 BUSINESS LOCATED AT ANY OF THE CITY UNIVERSITY OF NEW  YORK'S  COMMUNITY
 COLLEGES  SHALL  PROVIDE  FOR  PARTICIPANTS,  DURING THEIR FIVE YEARS OF
 PARTICIPATION IN THE PROGRAM:
   (A) FREE HOUSING WITHIN THE LIMITS ESTABLISHED BY THE REGENTS; AND
   (B) ACCESS TO SCHOOL RESOURCES, INCLUDING, BUT NOT LIMITED TO  FACULTY
 AND TECHNOLOGY.
   3.  (A)  THE REGENTS AND THE BOARD FOR ANY STARTUP BUSINESS LOCATED AT
 ANY OF THE CITY UNIVERSITY OF NEW  YORK'S  COMMUNITY  COLLEGES,  AT  THE
 RECOMMENDATION  OF  A  SCHOOL  MAY  TERMINATE A PARTICIPANT'S OR STARTUP
 BUSINESS' PARTICIPATION IN THE PROGRAM.
   (B) THE REGENTS SHALL ESTABLISH  AN  APPEALS  PROCESS  FOR  TERMINATED
 PARTICIPANTS AND STARTUP BUSINESSES TO APPEAL SUCH DECISIONS.
   4. (A) THE PROGRESS OF EACH STARTUP BUSINESS SHALL BE MONITORED BY THE
 REGENTS,  THE  SCHOOL  AT  WHICH THE PARTICIPANTS OPERATING SUCH STARTUP
 BUSINESS RESIDE, A SCHOOL-AFFILIATED SUPERVISING  OFFICER  OR  PROFESSOR
 AND  THE  BOARD  FOR  ANY  STARTUP  BUSINESS  LOCATED AT ANY OF THE CITY
 UNIVERSITY OF NEW YORK'S COMMUNITY COLLEGES.
   (B) THE REGENTS OR THE BOARD FOR ANY STARTUP BUSINESS LOCATED  AT  ANY
 OF THE CITY UNIVERSITY OF NEW YORK'S COMMUNITY COLLEGES SHALL COMPENSATE
 SUCH  SCHOOL-AFFILIATED  SUPERVISING  OFFICERS  OR  PROFESSORS  AND  THE
 REGENTS MAY COMPENSATE OTHER PROFESSORS WHO TAKE TIME TO MENTOR  PARTIC-
 IPANTS UPON THE REQUEST OF A PARTICIPANT.
   5.  THE  REGENTS AND THE BOARD FOR ANY STARTUP BUSINESS LOCATED AT ANY
 OF THE CITY UNIVERSITY OF NEW YORK'S COMMUNITY COLLEGES  SHALL  MAXIMIZE
 THE  FLEXIBILITY AND MINIMIZE THE BURDENS IMPOSED BY EXTENSIVE PAPERWORK
 AND FILING PROCEDURES WHILE MAINTAINING THE ACCOUNTABILITY  OF  STARTUPS
 AND THE PROGRAM.
   §  286-B.  LOAN  DEFERRALS  AND  JOB  CREATION.  1.  UPON ENTERING THE
 PROGRAM, EACH PARTICIPANT WILL BEGIN A FIVE  YEAR  PERIOD  DURING  WHICH
 TIME  THE  STATE  UNIVERSITY, OR THE CITY UNIVERSITY OF NEW YORK FOR ANY
 STARTUP BUSINESS LOCATED AT ANY OF THE CITY  UNIVERSITY  OF  NEW  YORK'S
 COMMUNITY COLLEGES, SHALL PAY THE MINIMUM MONTHLY PAYMENT ON ANY STUDENT

 A. 2901                             3
 
 LOANS  SUCH PARTICIPANT HAS OUTSTANDING UNTIL EITHER (A) THE PARTICIPANT
 EXITS THE PROGRAM BEFORE THE END OF SUCH FIVE YEAR PERIOD,  OR  (B)  THE
 PARTICIPANT  COMPLETES  FIVE YEARS IN THE PROGRAM WHEN UPON SUCH TIME HE
 OR  SHE SHALL BE EVALUATED AGAINST THE JOB CREATION CRITERIA IN SUBDIVI-
 SIONS TWO AND THREE OF THIS SECTION.
   2. AFTER FIVE YEARS, STARTUPS THAT HAVE CREATED A  CERTAIN  NUMBER  OF
 JOBS  WITHIN  NEW YORK STATE SHALL HAVE A MAXIMUM OF THREE PARTICIPANTS'
 LOANS FULLY PAID OFF BY THE STATE PURSUANT TO THE SCHEDULE SET FORTH  IN
 SUBDIVISION THREE OF THIS SECTION.
   3. NUMBER OF FULL-TIME             PERCENTAGE OF LOAN
 EMPLOYEES (EXCLUDING                 PAID OFF PER YEAR
 PARTICIPANTS)
 3                                    10%
 4                                    15%
 5                                    20%
 6+                                   25%
   §  286-C. TAX CREDIT FOR SUPPORTING BUSINESSES. 1. THE COMMISSIONER OF
 TAXATION AND FINANCE SHALL GRANT A CREDIT AGAINST ANY TAX DUE UNDER  THE
 PROVISIONS  OF ARTICLES NINE, NINE-A AND TWENTY-TWO OF THE TAX LAW IN AN
 AMOUNT EQUAL TO THE AMOUNT SPECIFIED BY THE REGENTS IN  ANY  TAX  CREDIT
 VOUCHER  ISSUED  BY  SUCH  REGENTS  PURSUANT  TO SUBDIVISION TWO OF THIS
 SECTION.
   2. THE REGENTS SHALL ESTABLISH A SYSTEM OF  TAX  CREDIT  VOUCHERS  FOR
 SUPPORTING  BUSINESSES  ALLOWING  THE  USE OF EQUIPMENT ESSENTIAL TO THE
 FUNCTION OR GROWTH OF ANY STARTUP BUSINESS. SUCH VOUCHERS MAY BE USED AS
 A CREDIT AGAINST ANY OF THE TAXES TO WHICH SUCH SUPPORTING  BUSINESS  IS
 SUBJECT  AND  WHICH  ARE  ENUMERATED IN SUBDIVISION ONE OF THIS SECTION.
 THE AMOUNT OF THE TAX CREDIT VOUCHER SHALL EQUAL THE PRICE TO RENT  SUCH
 EQUIPMENT.
   §  3.  The  tax  law  is amended by adding a new section 44 to read as
 follows:
   § 44. NEW YORK ENTREPRENEUR PROGRAM CREDIT. (A)  GENERAL.  A  TAXPAYER
 SUBJECT  TO TAX UNDER ARTICLE NINE, NINE-A OR TWENTY-TWO OF THIS CHAPTER
 SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX PURSUANT  TO  THE  PROVISIONS
 REFERENCED  IN  SUBDIVISION (D) OF THIS SECTION. THE CREDIT (OR PRO RATA
 SHARE OF EARNED CREDIT IN THE CASE OF A  PARTNERSHIP)  SHALL  EQUAL  THE
 AMOUNT  SPECIFIED BY THE REGENTS PURSUANT TO SECTION TWO HUNDRED EIGHTY-
 SIX-C OF THE EDUCATION LAW.
   (B) DEFINITIONS. FOR THE PURPOSE OF THIS SECTION,  THE  TERM  "STARTUP
 BUSINESS"  SHALL  MEAN  AN  ENTREPRENEURIAL IDEA SUPPORTED BY A BUSINESS
 PLAN THAT A POTENTIAL PARTICIPANT PREPARES WHEN APPLYING TO THE NEW YORK
 ENTREPRENEUR PROGRAM ESTABLISHED PURSUANT TO SECTION TWO HUNDRED  EIGHT-
 Y-SIX OF THE EDUCATION LAW.
   (C) REPORTING REQUIREMENTS. A TAXPAYER WISHING TO CLAIM A CREDIT UNDER
 THIS SECTION SHALL ANNUALLY CERTIFY TO THE COMMISSIONER THE RENTAL VALUE
 OF EQUIPMENT USED BY STARTUP BUSINESSES THAT SUCH TAXPAYER SUPPORTED.
   (D)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9: SECTION 187-T.
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
   (3) ARTICLE 22: SECTION 606, CLAUSE  (XLIV)  OF  SUBPARAGRAPH  (B)  OF
 PARAGRAPH ONE OF SUBSECTION (I) AND SUBSECTION (JJJ).
   §  4.  The tax law is amended by adding a new section 187-t to read as
 follows:
   § 187-T. NEW YORK ENTREPRENEUR PROGRAM CREDIT.  A  TAXPAYER  SHALL  BE
 ALLOWED  A  CREDIT  TO  BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR OF

 A. 2901                             4
 
 THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. PROVIDED,  HOWEV-
 ER,  THAT  THE  AMOUNT OF SUCH CREDIT ALLOWED AGAINST THE TAX IMPOSED BY
 SECTION ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE SHALL BE THE  EXCESS  OF
 THE  AMOUNT OF SUCH CREDIT OVER THE AMOUNT OF ANY CREDIT ALLOWED BY THIS
 SECTION AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED  EIGHTY-THREE  OF
 THIS ARTICLE. IN NO EVENT SHALL THE CREDIT UNDER THIS SECTION BE ALLOWED
 IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE APPLICA-
 BLE  MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTI-
 CLE. IF, HOWEVER, THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS  SECTION
 FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE
 TREATED  AS  AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAP-
 TER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION  ONE
 THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL
 BE PAID THEREON.
   §  5. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. NEW YORK ENTREPRENEUR PROGRAM CREDIT. A TAXPAYER SHALL BE  ALLOWED
 A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR OF THIS CHAP-
 TER,  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE.  IN NO EVENT SHALL THE
 CREDIT PROVIDED HEREIN BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX
 PAYABLE TO LESS THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARA-
 GRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.
 HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR  ANY
 TAXABLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS
 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS  AN  OVERPAYMENT
 OF  TAX  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 
 (XLIV) NEW YORK                      AMOUNT OF CREDIT UNDER SUBDIVISION
 ENTREPRENEUR PROGRAM                 FIFTY-THREE OF SECTION TWO HUNDRED
 CREDIT UNDER SUBSECTION (JJJ)        TEN-B
   § 7. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  NEW  YORK  ENTREPRENEUR  PROGRAM  CREDIT.  A  TAXPAYER SHALL BE
 ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED  IN  SECTION  FORTY-FOUR  OF
 THIS  CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF
 THE CREDIT ALLOWED UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR  SHALL
 EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS
 AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH  THE
 PROVISIONS  OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED,
 HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 8. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of this act on its effective date is authorized to be made on or
 before such date.