S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4680
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 5, 2019
                                ___________
 
 Introduced  by  M.  of  A.  KOLB,  MONTESANO,  PALMESANO,  RAIA, HAWLEY,
   BARCLAY, FINCH, DiPIETRO -- Multi-Sponsored by -- M. of A. BLANKENBUSH
   -- read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to  expanding  eligibility  for
   the  investment tax credit to all businesses in the state (Part A); to
   amend the tax law, in relation to a qualified emerging technology  tax
   credit  (Part  B);  to amend the general municipal law, in relation to
   certified startup business enterprises; and to amend the tax  law,  in
   relation to the angel tax credit (Part C)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law components of legislation relating
 to "Invest-NY".  Each component is wholly contained within a Part  iden-
 tified  as  Parts  A  through  C. The effective date for each particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of this act", when used in connection with that  particular  component,
 shall  be  deemed  to mean and refer to the corresponding section of the
 Part in which it is found. Section three of  this  act  sets  forth  the
 general effective date of this act.
 
                                  PART A
 
   Section  1.    Subparagraph  (i)  of paragraph (b) of subdivision 1 of
 section 210-B of the tax law, as amended by section 2 of part P of chap-
 ter 59 of the laws of 2017, is amended to read as follows:
   (i) A credit shall be allowed under this subdivision with  respect  to
 tangible personal property and other tangible property, including build-
 ings  and  structural  components  of  buildings, which are: depreciable
 pursuant to section one hundred  sixty-seven  of  the  internal  revenue
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06094-01-9

 A. 4680                             2
 
 code, have a useful life of four years or more, are acquired by purchase
 as  defined  in  section  one  hundred  seventy-nine (d) of the internal
 revenue code, have a situs in this state and are (A) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,
 assembling, refining, mining, extracting, farming,  agriculture,  horti-
 culture, floriculture, viticulture or commercial fishing, (B) industrial
 waste  treatment facilities or air pollution control facilities, used in
 the taxpayer's trade or business, (C) research and development property,
 [or] (D) principally used in the ordinary course of the taxpayer's trade
 or business as a broker or dealer in connection  with  the  purchase  or
 sale  (which  shall include but not be limited to the issuance, entering
 into, assumption,  offset,  assignment,  termination,  or  transfer)  of
 stocks,  bonds  or  other  securities as defined in section four hundred
 seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
 defined in section four hundred seventy-five (e) of the Internal Revenue
 Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
 trade or business of providing investment advisory services for a  regu-
 lated  investment  company as defined in section eight hundred fifty-one
 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
 ination services to customers in connection with the  purchase  or  sale
 (which  shall include but not be limited to the issuance, entering into,
 assumption, offset, assignment, termination, or transfer) of  securities
 as  defined  in section four hundred seventy-five (c)(2) of the Internal
 Revenue Code, (F) principally used in the ordinary course of the taxpay-
 er's business  as  an  exchange  registered  as  a  national  securities
 exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
 ties Exchange Act of 1934 or a board of trade as defined in subparagraph
 one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
 fit corporation law or as an entity that is wholly owned by one or  more
 such  national securities exchanges or boards of trade and that provides
 automation or technical services thereto, [or] (G) principally used as a
 qualified film production facility including qualified  film  production
 facilities  having a situs in an empire zone designated as such pursuant
 to article eighteen-B of the general municipal law, where  the  taxpayer
 is  providing  three  or  more services to any qualified film production
 company using the facility, including such services as a studio lighting
 grid, lighting and grip equipment, multi-line phone  service,  broadband
 information  technology  access,  industrial  scale electrical capacity,
 food services, security  services,  and  heating,  ventilation  and  air
 conditioning,  OR  (H)  PRINCIPALLY  USED  IN THE ORDINARY COURSE OF ANY
 TRADE OR BUSINESS OF THE TAXPAYER NOT OTHERWISE DESCRIBED IN CLAUSES (A)
 THROUGH (G) OF THIS SUBPARAGRAPH. For purposes of clauses (D),  (E)  and
 (F)  of  this  subparagraph, property purchased by a taxpayer affiliated
 with a regulated broker, dealer, registered investment advisor, national
 securities exchange or board of trade, is allowed a  credit  under  this
 subdivision  if the property is used by its affiliated regulated broker,
 dealer, registered investment advisor, national securities  exchange  or
 board  of  trade  in  accordance  with this subdivision. For purposes of
 determining if the property is principally used in qualifying uses,  the
 uses  by  the taxpayer described in clauses (D) and (E) of this subpara-
 graph may be aggregated. In addition, the  uses  by  the  taxpayer,  its
 affiliated  regulated  broker,  dealer and registered investment advisor
 under either or both of  those  clauses  may  be  aggregated.  Provided,
 however,  a taxpayer shall not be allowed the credit provided by clauses
 (D), (E) and (F) of this  subparagraph  unless  the  property  is  first
 placed  in  service  before  October first, two thousand fifteen and (i)

 A. 4680                             3
 
 eighty percent or more of the employees  performing  the  administrative
 and  support  functions resulting from or related to the qualifying uses
 of such equipment are located in this state or (ii) the  average  number
 of  employees  that  perform  the  administrative  and support functions
 resulting from or related to the qualifying uses of such  equipment  and
 are  located  in this state during the taxable year for which the credit
 is claimed is equal to or greater than ninety-five percent of the  aver-
 age  number of employees that perform these functions and are located in
 this state during the thirty-six months immediately preceding  the  year
 for  which  the  credit  is  claimed,  or  (iii) the number of employees
 located in this state during the taxable year for which  the  credit  is
 claimed  is  equal  to  or  greater than ninety percent of the number of
 employees located in  this  state  on  December  thirty-first,  nineteen
 hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
 er  in  nineteen hundred ninety-eight, the last day of its first taxable
 year ending after December thirty-first, nineteen hundred  ninety-eight.
 If  the  taxpayer becomes subject to tax in this state after the taxable
 year beginning in nineteen hundred ninety-eight, then  the  taxpayer  is
 not  required  to  satisfy the employment test provided in the preceding
 sentence of this subparagraph for its first taxable year.  For  purposes
 of  clause  (iii) of this subparagraph the employment test will be based
 on the number of employees located in this state on the last day of  the
 first  taxable year the taxpayer is subject to tax in this state. If the
 uses of the property must be aggregated to determine whether the proper-
 ty is principally used in qualifying uses, then  either  each  affiliate
 using  the property must satisfy this employment test or this employment
 test must be satisfied through the aggregation of the employees  of  the
 taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
 investment adviser using the property. For purposes  of  clause  (A)  of
 this subparagraph, tangible personal property and other tangible proper-
 ty  shall  not  include property principally used by the taxpayer in the
 production or distribution of electricity, natural gas after  extraction
 from wells, steam, or water delivered through pipes and mains.
   §  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
 of the tax law, as amended by section 3 of part P of chapter 59  of  the
 laws of 2017, is amended to read as follows:
   (A)  A  credit  shall be allowed under this subsection with respect to
 tangible personal property and other tangible property, including build-
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the internal revenue
 code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  internal
 revenue code, have a situs in this state and are (i) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,
 assembling, refining, mining, extracting, farming,  agriculture,  horti-
 culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
 trial waste treatment facilities or air  pollution  control  facilities,
 used in the taxpayer's trade or business, (iii) research and development
 property, (iv) principally used in the ordinary course of the taxpayer's
 trade  or business as a broker or dealer in connection with the purchase
 or sale (which shall include but not be limited to the issuance,  enter-
 ing  into,  assumption, offset, assignment, termination, or transfer) of
 stocks, bonds or other securities as defined  in  section  four  hundred
 seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
 defined in section 475(e) of the Internal Revenue Code, (v)  principally
 used  in  the  ordinary  course  of  the taxpayer's trade or business of

 A. 4680                             4
 
 providing investment advisory services for a regulated investment compa-
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code, or lending, loan  arrangement  or  loan  origination  services  to
 customers  in  connection with the purchase or sale (which shall include
 but not be limited to the issuance, entering into,  assumption,  offset,
 assignment,  termination,  or  transfer)  of  securities  as  defined in
 section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
 [or]  (vi)  principally  used  as  a  qualified film production facility
 including qualified film production facilities  having  a  situs  in  an
 empire  zone  designated  as  such pursuant to article eighteen-B of the
 general municipal law, where the taxpayer is  providing  three  or  more
 services  to  any  qualified film production company using the facility,
 including such services as a studio lighting  grid,  lighting  and  grip
 equipment,  multi-line  phone  service, broadband information technology
 access, industrial scale electrical capacity,  food  services,  security
 services,  and heating, ventilation and air conditioning, OR (VII) PRIN-
 CIPALLY USED IN THE ORDINARY COURSE OF ANY  TRADE  OR  BUSINESS  OF  THE
 TAXPAYER  NOT  OTHERWISE  DESCRIBED  IN CLAUSES (I) THROUGH (VI) OF THIS
 SUBPARAGRAPH. For purposes of clauses (iv) and (v) of this subparagraph,
 property purchased by a taxpayer affiliated  with  a  regulated  broker,
 dealer,  or registered investment adviser is allowed a credit under this
 subsection if the property is used by its affiliated  regulated  broker,
 dealer   or  registered  investment  adviser  in  accordance  with  this
 subsection. For purposes of determining if the property  is  principally
 used  in  qualifying uses, the uses by the taxpayer described in clauses
 (iv) and (v) of this subparagraph may be aggregated.  In  addition,  the
 uses by the taxpayer, its affiliated regulated broker, dealer and regis-
 tered  investment  adviser  under either or both of those clauses may be
 aggregated. Provided, however, a taxpayer shall not be allowed the cred-
 it provided by clauses (iv) and (v)  of  this  subparagraph  unless  (I)
 eighty  percent  or  more of the employees performing the administrative
 and support functions resulting from or related to the  qualifying  uses
 of  such equipment are located in this state, or (II) the average number
 of employees that  perform  the  administrative  and  support  functions
 resulting  from  or related to the qualifying uses of such equipment and
 are located in this state during the taxable year for which  the  credit
 is  claimed is equal to or greater than ninety-five percent of the aver-
 age number of employees that perform these functions and are located  in
 this  state  during the thirty-six months immediately preceding the year
 for which the credit is  claimed,  or  (III)  the  number  of  employees
 located  in  this  state during the taxable year for which the credit is
 claimed is equal to or greater than ninety  percent  of  the  number  of
 employees  located  in  this  state  on  December thirty-first, nineteen
 hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
 er in nineteen hundred ninety-eight, the last day of its  first  taxable
 year  ending after December thirty-first, nineteen hundred ninety-eight.
 If the taxpayer becomes subject to tax in this state after  the  taxable
 year  beginning  in  nineteen hundred ninety-eight, then the taxpayer is
 not required to satisfy the employment test provided  in  the  preceding
 sentence  of  this  subparagraph  for  its  first  taxable year. For the
 purposes of clause (III) of this subparagraph the employment  test  will
 be  based  on  the number of employees located in this state on the last
 day of the first taxable year the taxpayer is subject  to  tax  in  this
 state.  If  the  uses  of  the  property must be aggregated to determine
 whether the property is principally used in qualifying uses, then either
 each affiliate using the property must satisfy this employment  test  or

 A. 4680                             5
 
 this  employment  test  must be satisfied through the aggregation of the
 employees of the taxpayer, its affiliated regulated broker, dealer,  and
 registered investment adviser using the property. For purposes of clause
 (i)  of this subparagraph, tangible personal property and other tangible
 property shall not include property principally used by the taxpayer  in
 the  production  or  distribution  of  electricity,  natural  gas  after
 extraction from wells, steam,  or  water  delivered  through  pipes  and
 mains.
   § 3. This act shall take effect immediately and apply to taxable years
 ending on or after January 1, 2019.
 
                                  PART B
 
   Section  1.  Subparagraph  (vii)  of paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 12 of part T of  chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (vii) For a taxpayer that is defined as a qualified emerging technolo-
 gy  company under paragraph (c) of subdivision one of section thirty-one
 hundred two-e of the  public  authorities  law  regardless  of  the  ten
 million  dollar  limitation  expressed in subparagraph one of such para-
 graph (c) the amount prescribed by this paragraph shall be  computed  at
 the  rate of 5.7 percent for taxable years beginning on or after January
 first, two thousand fifteen  and  before  January  first,  two  thousand
 [sixteen,  5.5]  TWENTY, AND ZERO percent for taxable years beginning on
 or after January first, two thousand [sixteen and before January  first,
 two  thousand eighteen, and 4.875 percent for taxable years beginning on
 or after January first, two thousand eighteen] TWENTY.  IN THE CASE OF A
 COMBINED REPORT, EACH CORPORATION INCLUDED IN THE COMBINED  REPORT  MUST
 QUALIFY  AS A QUALIFIED EMERGING TECHNOLOGY COMPANY IN ORDER FOR THE TAX
 RATES PROVIDED BY THIS SUBPARAGRAPH TO APPLY.
   § 2. This act shall take effect immediately.

                                  PART C
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 959-c to read as follows:
   § 959-C. CERTIFIED STARTUP BUSINESS ENTERPRISE. (A) CERTIFICATION. (I)
 THE COMMISSIONER SHALL APPROVE APPLICATIONS FOR QUALIFICATION OF A BUSI-
 NESS  ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE. AS A CONDI-
 TION FOR APPROVAL OF SUCH APPLICATION, THE COMMISSIONER IS AUTHORIZED TO
 SPECIFY CERTAIN REQUIREMENTS TO BE SATISFIED AS A CONDITION FOR APPROVAL
 OF A BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS  ENTERPRISE  AS
 THE  COMMISSIONER DEEMS NECESSARY TO ENSURE THE QUALIFYING ANGEL INVEST-
 MENT WILL MAKE A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC DEVELOPMENT OF
 THIS STATE, INCLUDING THE USE OF  A  SYSTEM  OF  EVALUATION  OF  VARIOUS
 APPLICANT BUSINESS ENTERPRISES IN A COMPETITIVE FASHION.
   (II)  WITH  RESPECT  TO AN APPROVED APPLICATION FOR QUALIFICATION OF A
 BUSINESS ENTERPRISE AS A  CERTIFIED  STARTUP  BUSINESS  ENTERPRISE,  THE
 COMMISSIONER  SHALL  ISSUE  TO SUCH BUSINESS ENTERPRISE A CERTIFICATE OF
 QUALIFICATION AS A CERTIFIED STARTUP BUSINESS ENTERPRISE  SETTING  FORTH
 THE  EFFECTIVE  DATE  OF  THE CERTIFICATION AND THE AMOUNT OF QUALIFYING
 ANGEL INVESTMENT AWARDED TO SUCH BUSINESS ENTERPRISE, WHICH AMOUNT SHALL
 BE NO LESS THAN ONE HUNDRED  THOUSAND  DOLLARS  AND  NO  MORE  THAN  TWO
 MILLION DOLLARS.
   (III)  FOR  THE  PERIOD JULY FIRST, TWO THOUSAND NINETEEN THROUGH JUNE
 THIRTIETH, TWO THOUSAND TWENTY, THE COMMISSIONER MAY CERTIFY UP TO TWEN-

 A. 4680                             6
 
 TY MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT. FOR THE  PERIOD  JULY
 FIRST,  TWO THOUSAND TWENTY THROUGH JUNE THIRTIETH, TWO THOUSAND TWENTY-
 ONE, THE COMMISSIONER MAY CERTIFY UP TO TWENTY MILLION DOLLARS IN QUALI-
 FYING  ANGEL INVESTMENT. FOR THE PERIOD JULY FIRST, TWO THOUSAND TWENTY-
 ONE THROUGH JUNE THIRTIETH, TWO THOUSAND  TWENTY-TWO,  THE  COMMISSIONER
 MAY CERTIFY UP TO TWENTY MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT.
   (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (I) "CERTIFIED STARTUP BUSINESS  ENTERPRISE"  SHALL  MEAN  A  BUSINESS
 ENTERPRISE LOCATED IN NEW YORK STATE:
   (1) WITH LESS THAN FIVE MILLION DOLLARS IN ANNUAL REVENUES;
   (2)  WHOSE  PRIMARY  ACTIVITY  CONSISTS  OF A QUALIFYING TECHNOLOGY OR
 INNOVATION ACTIVITY; AND
   (3) THAT HAS BEEN CERTIFIED AS A CERTIFIED STARTUP BUSINESS ENTERPRISE
 BY THE COMMISSIONER.
   (II) "QUALIFYING TECHNOLOGY OR INNOVATION ACTIVITY" SHALL MEAN:
   (1) BIOTECHNOLOGIES, WHICH SHALL BE DEFINED AS TECHNOLOGIES  INVOLVING
 THE  SCIENTIFIC  MANIPULATION  OF  LIVING  ORGANISMS,  ESPECIALLY AT THE
 MOLECULAR AND/OR THE SUB-MOLECULAR GENETIC LEVEL,  TO  PRODUCE  PRODUCTS
 CONDUCIVE  TO  IMPROVING  THE  LIVES  AND HEALTH OF PLANTS, ANIMALS, AND
 HUMANS; AND THE ASSOCIATED SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHAN-
 ICAL, AND COMPUTATIONAL APPLICATIONS AND SERVICES CONNECTED  WITH  THESE
 IMPROVEMENTS;
   (2)  INFORMATION AND COMMUNICATION TECHNOLOGIES, EQUIPMENT AND SYSTEMS
 THAT INVOLVE ADVANCED  COMPUTER  SOFTWARE  AND  HARDWARE,  VISUALIZATION
 TECHNOLOGIES, AND HUMAN INTERFACE TECHNOLOGIES;
   (3)  ADVANCED  MATERIALS  AND PROCESSING TECHNOLOGIES THAT INVOLVE THE
 DEVELOPMENT, MODIFICATION, OR IMPROVEMENT OF ONE OR  MORE  MATERIALS  OR
 METHODS  TO  PRODUCE  DEVICES  AND  STRUCTURES WITH IMPROVED PERFORMANCE
 CHARACTERISTICS OR SPECIAL FUNCTIONAL ATTRIBUTES, OR TO ACTIVATE,  SPEED
 UP, OR OTHERWISE ALTER CHEMICAL, BIOCHEMICAL, OR MEDICAL PROCESSES;
   (4)  ELECTRONIC AND PHOTONIC DEVICES AND COMPONENTS FOR USE IN PRODUC-
 ING ELECTRONIC, OPTOELECTRONIC, MECHANICAL  EQUIPMENT  AND  PRODUCTS  OF
 ELECTRONIC DISTRIBUTION WITH INTERACTIVE MEDIA CONTENT;
   (5)  ENERGY  EFFICIENCY,  RENEWABLE ENERGY AND ENVIRONMENTAL TECHNOLO-
 GIES, PRODUCTS, DEVICES AND SERVICES;
   (6) SMALL SCALE SYSTEMS INTEGRATION AND PACKAGING; OR
   (7) MANUFACTURING;
   (III) "QUALIFYING ANGEL INVESTMENT" SHALL MEAN A CONTRIBUTION  TO  THE
 CAPITAL  OF  A CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED THAT SUCH
 CONTRIBUTION TO CAPITAL IS MADE WITHIN TWELVE MONTHS AFTER THE EFFECTIVE
 DATE OF THE CERTIFIED TECHNOLOGY VENTURE'S CERTIFICATE OF  QUALIFICATION
 AS  A  CERTIFIED  TECHNOLOGY VENTURE AND SUCH CONTRIBUTION IS APPLIED BY
 THE CERTIFIED STARTUP BUSINESS  ENTERPRISE  AGAINST  ITS  ALLOCATION  OF
 QUALIFYING  ANGEL  INVESTMENT.  TOGETHER WITH ALL OTHER QUALIFYING ANGEL
 INVESTMENTS MADE TO A SINGLE CERTIFIED STARTUP BUSINESS ENTERPRISE,  THE
 TOTAL  QUALIFYING  ANGEL  INVESTMENT MAY NOT EXCEED TWO MILLION DOLLARS.
 NOTHING HEREIN SHALL PROHIBIT A PERSON MAKING A QUALIFYING ANGEL INVEST-
 MENT FROM MAKING ADDITIONAL CONTRIBUTIONS TO THE CAPITAL OF  THE  CERTI-
 FIED STARTUP BUSINESS ENTERPRISE OR MAKING LOANS TO OR OTHER INVESTMENTS
 IN  THE  CERTIFIED  STARTUP BUSINESS ENTERPRISE, PROVIDED, HOWEVER, THAT
 SUCH OTHER CONTRIBUTIONS, LOANS AND INVESTMENTS SHALL NOT BE TREATED  AS
 QUALIFYING ANGEL INVESTMENTS.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:

 A. 4680                             7
 
   53. ANGEL TAX CREDIT. (A) ALLOWANCE OF CREDIT.  A  TAXPAYER  THAT  HAS
 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
 (III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
 GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO FIFTY  PERCENT
 OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (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.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  ANGEL  TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
 (III) OF SUBDIVISION (B) OF SECTION NINE  HUNDRED  FIFTY-NINE-C  OF  THE
 GENERAL  MUNICIPAL  LAW,  OR  THAT IS A MEMBER OF A PARTNERSHIP THAT HAS
 MADE A QUALIFYING ANGEL INVESTMENT, SHALL BE ALLOWED A CREDIT  EQUAL  TO
 FIFTY  PERCENT  OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT OR, IN
 THE CASE OF A TAXPAYER WHO IS A MEMBER OF A PARTNERSHIP THAT HAS MADE  A
 QUALIFYING  ANGEL INVESTMENT, A PORTION OF SUCH QUALIFYING ANGEL INVEST-
 MENT EQUAL TO THE PORTION OF ITEMS OF INCOME, GAIN, LOSS  AND  DEDUCTION
 ASSOCIATED  WITH  THE  QUALIFYING ANGEL INVESTMENT PROPERLY ALLOCABLE TO
 SUCH TAXPAYER UNDER SECTION 704 OF THE INTERNAL  REVENUE  CODE  FOR  THE
 TAXABLE YEAR.
   (2)  APPLICATION  OF CREDIT. 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.
   §  4.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A  TAXPAYER  THAT  HAS
 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
 (III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
 GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO FIFTY  PERCENT
 OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  MINIMUM  TAX  FIXED  BY  PARAGRAPH FOUR OF SUBDIVISION (A) OF
 SECTION FIFTEEN HUNDRED TWO  OF  THIS  ARTICLE  OR  BY  SECTION  FIFTEEN
 HUNDRED  TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE
 AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
 REDUCES  THE  TAX  TO  SUCH  AMOUNT,  THEN 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.

 A. 4680                             8
 
   § 5. This act shall take effect immediately and apply to taxable years
 after January 1, 2019.
   § 2. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall not affect, impair, or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Parts A through C of this act shall be
 as specifically set forth in the last section of such Parts.