NY State Senate Bill 2023-S458

Senate Bill S458

2023-2024 Legislative Session

Relates to defining community significant projects and including such projects in the excelsior jobs program

download bill text pdf

Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to commerce, economic development and small business
Jan 04, 2023	referred to commerce, economic development and small business

2023-S458 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§352, 353 & 355, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9079
2021-2022: S2232

2023-S458 (ACTIVE) - Summary

Defines community significant projects as a business creating or retaining current jobs as determined by the commissioner, with particular emphasis on employment and/or training of current public housing residents; currently located or to be located in existing leased space of a building in a public housing development in the state; and which makes significant qualified capital investments to start a business, or improve services and working conditions for an existing business, when located in such public housing space and including such projects in the excelsior jobs program.

2023-S458 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S458

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the economic development law, in relation to defining
community significant projects and including such projects in the
excelsior jobs program

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish community significant projects as eligible to
receive Excelsior Jobs Program tax credits.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill would include demolition and remediation costs as a qualified
investment if the costs were incurred and paid in leased buildings by
businesses in a public housing development. This bill would define a
"community significant project" as: a business creating or retaining
current jobs, with an emphasis on employment and/or training of current
public housing residents; is 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 and
which makes significant qualified capital investments to start a busi-
ness, or improve services and working conditions for an existing busi-
ness, when located in such public housing space; and creates at least
five new net jobs or retains current jobs or makes qualified capital
investments to the space of the a building of one million dollars or
more. Further, this bill would establish community significant projects
as eligible to receive Excelsior Jobs Program tax credits. Section four
would set an immediate effective date and apply to taxable years begin-
ning on and after January 1, 2024.

 
JUSTIFICATION:

The commercial spaces owned by public housing authorities (PHAs) across
the State provide a platform for local businesses to bring essential
goods and services to their neighborhoods. However, many of these spaces
stand vacant and deteriorating, while occupied units are often in such
dilapidated condition as to leave commercial tenants with much work that
needs to be done and no options for already cash-strapped PHAs.

The significant investment needed to make these spaces safe and commer-
cially viable can be an insurmountable barrier to bringing new business
to communities that need it most. Giving businesses the opportunity to
qualify for a return on their investment in PHA commercial will help
break down this barrier and restore more of these vacant units to sound
profitability and much-needed uses - including grocery stores, child
care centers and other professional services - that benefit local busi-
nesses, communities and the families that live and work in them.

 
PRIOR LEGISLATIVE HISTORY:

S.2232 of 2022-21: Referred to Commerce, Economic Development, and Small
Business;

S.9079 of 2020: Referred to Rules

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024.

2023-S458 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    458
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced by Sen. SEPULVEDA -- 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  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00004-01-3

 S. 458                              2
 
 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
 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. Paragraphs (m) and (n) of subdivision 1 and subdivisions 3 and 4
 of section 353 of the economic development law, paragraphs (m)  and  (n)
 of subdivision 1 and subdivision 3 as amended by chapter 494 of the laws
 of  2022, 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
 and a new paragraph (o) is added to subdivision 1 to read as follows:
   (m)  as  a  participant  operating  in one of the industries listed in
 paragraphs (a) through (k) of this subdivision and operating or sponsor-
 ing child care services to its employees as  defined  in  section  three
 hundred fifty-two of this article; [or]
   (n) as a Green CHIPS project[.]; OR
   (O) AS A COMMUNITY SIGNIFICANT PROJECT.
   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
 S. 458                              3
 
 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 or Green CHIPS project
 as defined in this  article;  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  (O)  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.  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, is amended to read as follows:
   (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, 2024.

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