S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3077
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2023
                                ___________
 
 Introduced  by M. of A. BYRNES, DeSTEFANO, MORINELLO, TAGUE -- read once
   and referred to the Committee on Economic Development
 
 AN ACT to amend the economic development law, the tax law and part V  of
   chapter 61 of the laws of 2011, amending the economic development law,
   the tax law and the real property tax law relating to establishing the
   economic transformation and facility redevelopment program and provid-
   ing  tax  benefits  under  that  program,  in relation to the economic
   transformation and facility redevelopment program and  the  effective-
   ness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 11 of section 400 of the  economic  development
 law,  as  amended  by  section 3 of part QQ of chapter 60 of the laws of
 2016, paragraph (a) as amended by section 2 of part JJ of chapter 59  of
 the laws of 2021, is amended to read as follows:
   11. "Closed facility" means:
   (a)  a  correctional facility, as defined in paragraph (a) of subdivi-
 sion four of section two of the correction law, that has  been  selected
 by  the governor of the state of New York for closure after April first,
 two thousand eleven but no later than March thirty-first,  two  thousand
 twenty-six; or
   (b)  A  CORRECTIONAL FACILITY, AS DEFINED IN PARAGRAPH (A) OF SUBDIVI-
 SION FOUR OF SECTION TWO OF THE CORRECTION LAW, THAT HAS  BEEN  SELECTED
 BY  THE GOVERNOR OF THE STATE OF NEW YORK FOR CLOSURE AFTER APRIL FIRST,
 TWO THOUSAND NINETEEN BUT NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND
 TWENTY-SEVEN; OR
   (C) a facility operated by the office of children and family  services
 under article nineteen-G of the executive law that is closed pursuant to
 authority  granted  to such office in a chapter of the laws of two thou-
 sand eleven; or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03952-01-3
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   [(c)] (D) which has been closed  provided  that  the  commissioner  of
 correctional  services or the commissioner of the office of children and
 family services has notified the commissioner of such closure; or
   [(d)] (E) a facility previously owned by the state, and when operated,
 was  operated  as a psychiatric facility pursuant to section 7.17 of the
 mental hygiene law, and located within the metropolitan commuter  trans-
 portation district but outside New York city.
   §  2. Subdivision 1 of section 402 of the economic development law, as
 amended by section 4 of part QQ of chapter 60 of the laws  of  2016,  is
 amended to read as follows:
   1. A business entity must submit a completed application as prescribed
 by  the  commissioner  by  the later of (a) the date that is three years
 after the date of the closure of the  closed  facility  located  in  the
 economic  transformation area in which the business entity would operate
 or (b) January first, two thousand fifteen.  Provided  however,  in  the
 case  of  a closed facility described in paragraph [(d)] (E) of subdivi-
 sion eleven of section four hundred of this article, a  business  entity
 must submit a completed application as prescribed by the commissioner by
 September first, two thousand sixteen. NOTWITHSTANDING THE FOREGOING, IN
 THE CASE OF A CLOSED FACILITY, AS DESCRIBED PURSUANT TO PARAGRAPH (B) OF
 SUBDIVISION  ELEVEN  OF SECTION FOUR HUNDRED OF THIS ARTICLE, A BUSINESS
 ENTITY SHALL SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMIS-
 SIONER BY SEPTEMBER FIRST, TWO THOUSAND TWENTY-FOUR.
   § 3. Paragraph 1 of subdivision (h) of section 35 of the tax  law,  as
 amended  by  section  5 of part QQ of chapter 60 of the laws of 2016, is
 amended to read as follows:
   (1) A taxpayer which meets the requirements in this section  shall  be
 eligible  to claim a credit on qualified investments with respect to the
 project for which the certificate of eligibility is issued.  The  credit
 shall  be  equal  to  ten percent of the cost or other basis for federal
 income tax purposes of the qualified investment at  a  closed  facility.
 Provided  however,  for purposes of this credit only, a taxpayer that is
 the owner of a closed facility  described  in  paragraph  [(d)]  (E)  of
 subdivision  eleven  of section four hundred of the economic development
 law, shall be allowed to include in its cost or other basis of the qual-
 ified investment at the closed facility, any demolition  costs  incurred
 at  such closed facility. Those demolition costs shall be limited to the
 following costs: (i) asbestos removal costs, (ii) rental  of  demolition
 equipment,  (iii)  personnel  costs to operate the demolition equipment,
 (iv) costs to remove and dispose of demolition debris, (v) the costs  of
 any  permits,  licenses  and insurance necessary for the demolition. The
 total amount of investment tax credit allowed for all  eligible  partic-
 ipants  under this subdivision for qualified investments located at each
 closed facility shall not exceed eight million dollars. The credit shall
 be equal to six percent of the cost or other basis  for  federal  income
 tax purposes for all other qualified investments, but the credit allowed
 to a taxpayer may not exceed four million dollars.
   §  4. Section 12 of part V of chapter 61 of the laws of 2011, amending
 the economic development law, the tax law and the real property tax  law
 relating  to establishing the economic transformation and facility rede-
 velopment program and providing tax  benefits  under  that  program,  as
 amended  by  section  1 of part JJ of chapter 59 of the laws of 2021, is
 amended to read as follows:
   § 12. This act shall take effect immediately and shall expire  and  be
 deemed repealed December 31, [2026] 2028.
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   § 5. This act shall take effect immediately; provided, that the amend-
 ments to article 18 of the economic development law made by sections one
 and  two  of  this  act  shall not affect the repeal of such article and
 shall be deemed repealed therewith; provided, further  that  the  amend-
 ments  to  section  35  of the tax law made by section three of this act
 shall not affect the repeal of such section and shall be deemed repealed
 therewith.