S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9954
 
                           I N  A S S E M B L Y
 
                               March 3, 2020
                                ___________
 
 Introduced  by  M. of A. JOYNER, CYMBROWITZ -- read once and referred to
   the Committee on Economic Development
 
 AN ACT to amend the economic development law, in  relation  to  defining
   community  significant  projects  and  including  such projects in the
   excelsior jobs program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions  17  and 20-a of section 352 of the economic
 development law, subdivision 17 as amended by section 1 of  part  K  and
 subdivision  20-a as added by section 1 of part ZZ of chapter  59 of the
 laws of 2017, are amended and a new subdivision 18-a is added to read as
 follows:
   17. "Qualified investment" means an investment  in  tangible  property
 (including  a building or a structural component of a building) owned by
 a business enterprise which:
   (a) is depreciable pursuant to section one hundred sixty-seven of  the
 internal revenue code;
   (b) has a useful life of four years or more;
   (c)  is  acquired by purchase as defined in section one hundred seven-
 ty-nine (d) of the internal revenue code;
   (d) has a situs in this state; [and]
   (e) is placed in service in the state on or after the date the certif-
 icate of eligibility is issued to the business enterprise; AND
   (F) DEMOLITION AND REMEDIATION OF  COSTS  INCURRED  AND  PAID  IN  THE
 LEASED  BUILDING BY THE BUSINESS ENTERPRISE IN A PUBLIC HOUSING DEVELOP-
 MENT IN THE STATE, AS DETERMINED BY THE COMMISSIONER.
   18-A. "COMMUNITY SIGNIFICANT PROJECT" MEANS (A) A BUSINESS CREATING OR
 RETAINING CURRENT JOBS AS DETERMINED BY THE COMMISSIONER,  WITH  PARTIC-
 ULAR  EMPHASIS  ON  EMPLOYMENT AND/OR TRAINING OF CURRENT PUBLIC HOUSING
 RESIDENTS; (B) CURRENTLY LOCATED OR TO BE  LOCATED  IN  EXISTING  LEASED
 SPACE OF A BUILDING IN A PUBLIC HOUSING DEVELOPMENT IN THE STATE THAT IS
 OWNED  AND  OPERATED BY A PUBLIC HOUSING AUTHORITY CREATED UNDER ARTICLE
 THIRTEEN OF THE PUBLIC HOUSING LAW; (C) WHICH MAKES  SIGNIFICANT  QUALI-
 FIED  CAPITAL  INVESTMENTS  TO START A BUSINESS, OR IMPROVE SERVICES AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15041-03-0

 A. 9954                             2
 
 WORKING CONDITIONS FOR AN EXISTING BUSINESS, WHEN LOCATED IN SUCH PUBLIC
 HOUSING SPACE; AND (D) CREATES AT LEAST FIVE NEW NET JOBS  OR  RETAINING
 CURRENT  JOBS  OR MAKES QUALIFIED CAPITAL INVESTMENTS TO SUCH SPACE OF A
 BUILDING.    THE  COMMISSIONER  SHALL PROMULGATE REGULATIONS PURSUANT TO
 SECTION THREE HUNDRED FIFTY-SIX OF THIS ARTICLE TO DETERMINE WHAT  ADDI-
 TIONAL  CRITERIA  A  BUSINESS  MUST  MEET  TO BE ELIGIBLE AS A COMMUNITY
 SIGNIFICANT PROJECT, INCLUDING, BUT NOT LIMITED TO, INCENTIVIZING  CHILD
 CARE  PROVIDERS AND OTHER BUSINESSES THAT SUPPORT THE NEEDS OF THE WORK-
 FORCE RESIDING IN SUCH PUBLIC HOUSING AND THE SOCIAL AND HEALTH NEEDS OF
 RESIDENTS IN SUCH  PUBLIC  HOUSING,  ENSURING  THAT  RESIDENTS  ARE  NOT
 DISPLACED AND ENSURING THAT SERVICES OR PROGRAMS BEING OFFERED TO PUBLIC
 HOUSING  RESIDENTS  BY  EITHER  A  PUBLIC HOUSING AUTHORITY OR AN ENTITY
 ALREADY ONSITE, ARE NOT DISPLACED IN ORDER TO LOCATE OR EXPAND  A  BUSI-
 NESS IN A PUBLIC HOUSING DEVELOPMENT.
   20-a.  "Significant  capital investment" means a project which will be
 either a newly constructed facility or a newly constructed addition  to,
 expansion  of  or  improvement  of  a  facility,  consisting of tangible
 personal property and other tangible property, including  buildings  and
 structural  components  of  buildings,  that 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,
 and  that  is equal to or exceeds (a) one million dollars for a manufac-
 turer; (b) two hundred fifty thousand dollars for an  agriculture  busi-
 ness;  (c)  three  million dollars for a financial services firm or back
 office operation; (d) fifteen million dollars for a distribution center;
 (e) three million dollars for  a  scientific  research  and  development
 firm;  [or]  (f)  three million dollars for other businesses; OR (G) ONE
 MILLION DOLLARS FOR A SIGNIFICANT PROJECT.
   § 2. Subdivisions 1, 3 and 4 of section 353 of the  economic  develop-
 ment law, subdivision 1 as amended by section 2 of part K, subdivision 3
 as  separately  amended  by section 2 of part K and section 2 of part ZZ
 and subdivision 4 as separately amended by  section  3  of  part  K  and
 section  2  of part ZZ of chapter 59 of the laws of 2017, are amended to
 read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a) as a financial services data center or a financial  services  back
 office operation;
   (b) in manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
   (f)  in  the  creation  or  expansion of back office operations in the
 state;
   (g) in a distribution center;
   (h) in an  industry  with  significant  potential  for  private-sector
 economic  growth  and  development  in  this state as established by the
 commissioner in regulations promulgated pursuant  to  this  article.  In
 promulgating  such  regulations  the  commissioner shall include job and
 investment criteria;
   (i) as an entertainment company;
   (j) in music production; [or]
   (k) as a life sciences company; OR
   (L) AS A COMMUNITY SIGNIFICANT PROJECT.

 A. 9954                             3
 
   3. For the purposes of this article, in order to  participate  in  the
 excelsior  jobs  program,  a  business entity operating predominantly in
 manufacturing must create at least five net new jobs; a business  entity
 operating predominately in agriculture must create at least five net new
 jobs;  a  business entity operating predominantly as a financial service
 data center or financial services customer back  office  operation  must
 create  at  least  twenty-five net new jobs; a business entity operating
 predominantly in scientific research  and  development  must  create  at
 least  five  net  new jobs; a business entity operating predominantly in
 software development must create at least five net new jobs; a  business
 entity creating or expanding back office operations must create at least
 twenty-five  net  new jobs; a business entity operating predominately in
 music production must create at least five  net  new  jobs;  a  business
 entity  operating  predominantly as an entertainment company must create
 or obtain at least one hundred net new  jobs;  [or]  a  business  entity
 operating  predominantly  as  a  distribution  center  in the state must
 create at least fifty net new jobs, notwithstanding subdivision five  of
 this  section;  [or] a business entity operating predominately as a life
 sciences company must create at least five net new jobs; [or] a business
 entity must be a regionally significant project as defined in this arti-
 cle; or A COMMUNITY SIGNIFICANT PROJECT AS DEFINED IN THIS ARTICLE; OR
   4. A business entity operating predominantly in one of the  industries
 referenced  in  paragraphs (a) through (h) or in paragraph (k) OR (L) of
 subdivision one of this section but which does not meet the job require-
 ments of subdivision three of this section must have  at  least  twenty-
 five full-time job equivalents unless such business is a business entity
 operating predominantly in manufacturing then it must have at least five
 full-time  job  equivalents  and  must demonstrate that its benefit-cost
 ratio is at least ten to one.
   § 3. Subdivision 2 and paragraph (a) of subdivision 4 of  section  355
 of  the  economic  development law, as amended by section 4 of part G of
 chapter 61 of the laws of 2011, are amended to read as follows:
   2. Excelsior investment tax credit component.  A  participant  in  the
 excelsior  jobs program shall be eligible to claim a credit on qualified
 investments. The credit shall be equal to two percent  of  the  cost  or
 other basis for federal income tax purposes of the qualified investment.
 A  participant  may  not  claim both the excelsior investment tax credit
 component and  the  investment  tax  credit  set  forth  in  subdivision
 [twelve]  ONE  of  section  two  hundred  [ten] TEN-B, subsection (a) of
 section six hundred six, THE FORMER subsection (i) of  section  fourteen
 hundred  fifty-six, or subdivision (q) of section fifteen hundred eleven
 of the tax law for the same property in any taxable year, except that  a
 participant may claim both the excelsior investment tax credit component
 and  the investment tax credit for research and development property. In
 addition, a taxpayer who or which is qualified to  claim  the  excelsior
 investment  tax  credit  component  and  is  also qualified to claim the
 brownfield tangible property credit component under  section  twenty-one
 of  the  tax  law  may  claim either the excelsior investment tax credit
 component or such tangible property credit component, but not both  with
 regard  to  a  particular piece of property. A credit may not be claimed
 until a business enterprise has received a certificate  of  tax  credit,
 provided that qualified investments made on or after the issuance of the
 certificate of eligibility but before the issuance of the certificate of
 tax credit to the business enterprise, may be claimed in the first taxa-
 ble year for which the business enterprise is allowed to claim the cred-
 it.  Expenses  incurred prior to the date the certificate of eligibility

 A. 9954                             4
 
 is issued are not eligible to be included  in  the  calculation  of  the
 credit.
   (a)  A  participant in the excelsior jobs program who either qualified
 as a regionally significant project, A COMMUNITY SIGNIFICANT PROJECT  or
 is located in an investment zone shall be eligible to claim a credit for
 a  period of ten years.  FOR THE PURPOSES OF THIS SUBDIVISION, THE LEASE
 PAYMENT PAID BY THE BUSINESS ENTERPRISE PURSUANT  TO  A  PUBLIC  HOUSING
 DEVELOPMENT  IN  THIS  STATE  SHALL  BE  ELIGIBLE  REAL PROPERTY TAX FOR
 PURPOSES OF THIS SUBDIVISION.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2021.