S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3471
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN ACT to amend the economic development law, in relation to the excels-
   ior jobs program and certain incentives for medical equipment projects
   within such program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 352 of the economic development law is  amended  by
 adding a new subdivision 8-b to read as follows:
   8-B. "MEDICAL EQUIPMENT PROJECT" MEANS A PROJECT DEEMED BY THE COMMIS-
 SIONER  TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE PRIMARILY USED
 BY MEDICAL  PROFESSIONALS  IN  A  PROFESSIONAL  OR  HOME  CARE  SETTING.
 PROJECTS SHALL INCLUDE, BUT NOT BE LIMITED TO, THE MANUFACTURE OF DEVEL-
 OPMENT  OF  PRODUCTS OR TECHNOLOGIES SUCH AS: PERSONAL PROTECTIVE EQUIP-
 MENT, OXYGEN AND OXYGEN DELIVERY  SYSTEMS,  VENTILATION  AND  ASPIRATION
 DEVICES,  RESPIRATORY  DISEASE  MANAGEMENT SERVICES, MONITORING DEVICES,
 FEEDING PUMPS, MEDICAL  TESTING  DEVICES,  AND  EQUIPMENT  NECESSARY  TO
 CONDUCT MEDICAL TESTS.
   §  2. Subdivision 1 of section 353 of the economic development law, as
 amended by section 2 of part L of chapter 59 of the  laws  of  2020,  is
 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08063-01-1
              

 S. 3471                             2
 
   (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;
   (k) as a life sciences company; [or]
   (l)  as  a  company operating in one of the industries listed in para-
 graphs (b) through (e) of this  subdivision  and  engaging  in  a  green
 project  as  defined in section three hundred fifty-two of this article;
 OR
   (M) AS A COMPANY OPERATING IN ONE OF THE INDUSTRIES  LISTED  IN  PARA-
 GRAPHS  (B),  (C),  (D)  OR  (K)  OF  THIS SUBDIVISION AND ENGAGING IN A
 MEDICAL EQUIPMENT PROJECT.
   § 3. Subdivisions 1, 2 and 3 of section 355 of the  economic  develop-
 ment law, as amended by section 4 of part L of chapter 59 of the laws of
 2020, are amended to read as follows:
   1. Excelsior jobs tax credit component. A participant in the excelsior
 jobs program shall be eligible to claim a credit for each net new job it
 creates in New York state. In a project that is not a green project OR A
 MEDICAL  EQUIPMENT  PROJECT,  the amount of such credit per job shall be
 equal to the product of the gross wages paid and up to 6.85 percent.  In
 a green project, the amount of such credit per job shall be equal to the
 product  of  the  gross  wages  paid and up to 7.5 percent. IN A MEDICAL
 EQUIPMENT PROJECT, THE AMOUNT OF SUCH CREDIT PER JOB SHALL BE  EQUAL  TO
 THE PRODUCT OF THE GROSS WAGES PAID AND UP TO 8.5 PERCENT.
   2.  Excelsior  investment  tax  credit component. A participant in the
 excelsior jobs program shall be eligible to claim a credit on  qualified
 investments.  In  a  project  that  is  not a green project OR A MEDICAL
 EQUIPMENT PROJECT, the credit shall be equal to two percent of the  cost
 or  other basis for federal income tax purposes of the qualified invest-
 ment. In a green project, the credit shall be equal to five  percent  of
 the cost or other basis for federal income tax purposes of the qualified
 investment. IN A MEDICAL EQUIPMENT PROJECT, THE CREDIT SHALL BE EQUAL TO
 SEVEN 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 one of section two hundred 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 develop-
 ment  property.  In  addition,  a  taxpayer who or which is qualified to
 claim the excelsior investment tax credit component and is  also  quali-
 fied  to  claim  the brownfield tangible property credit component under
 section twenty-one of the tax law may claim either the excelsior invest-
 ment 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

 S. 3471                             3
 
 the certificate of tax credit to the business enterprise, may be claimed
 in  the  first taxable year for which the business enterprise is allowed
 to claim the credit. Expenses incurred prior to the date the certificate
 of  eligibility  is issued are not eligible to be included in the calcu-
 lation of the credit.
   3. Excelsior research and development tax credit component. A  partic-
 ipant  in the excelsior jobs program shall be eligible to claim a credit
 equal to fifty percent of  the  portion  of  the  participant's  federal
 research  and  development  tax credit that relates to the participant's
 research and development expenditures in New York state during the taxa-
 ble year; provided however, if not a green project OR A  MEDICAL  EQUIP-
 MENT  PROJECT,  the  excelsior research and development tax credit shall
 not exceed six percent of the qualified research and development expend-
 itures attributable to activities conducted in New York state, or, if  a
 green project OR A MEDICAL EQUIPMENT PROJECT, the excelsior research and
 development  tax  credit  shall not exceed eight percent of the research
 and development expenditures attributable to activities conducted in New
 York state. If the federal research and development credit has  expired,
 then  the  research and development expenditures relating to the federal
 research and development credit shall be calculated as  if  the  federal
 research  and  development  credit structure and definition in effect in
 two thousand nine  were  still  in  effect.  Notwithstanding  any  other
 provision  of  this  chapter  to  the contrary, research and development
 expenditures in this state, including salary or wage expenses  for  jobs
 related  to  research  and  development activities in this state, may be
 used as the basis for the excelsior research and development tax  credit
 component  and  the  qualified  emerging  technology company facilities,
 operations and training credit under the tax law.
   § 4. This act shall take effect immediately.