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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| Jan 22, 2025 |
referred to finance |
Senate Bill S3009
2025-2026 Legislative Session
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2025-2026 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Current Bill Status - In Senate Committee Finance 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
Actions
2025-S3009 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A3009
- Current Committee:
- Senate Finance
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2025-S3009 (ACTIVE) - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2025-2026 state fiscal year; relates to the inflation reduction credit (Part A); provides for a middle-class tax cut; extends the temporary personal income tax high income surcharge (Part B)
2025-S3009 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
S. 3009 A. 3009
S E N A T E - A S S E M B L Y
January 22, 2025
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to the inflation refund credit
(Part A); to amend the tax law, in relation to providing for a
middle-class tax cut and extending the temporary personal income tax
high income surcharge (Part B); to amend the tax law, in relation to
enhancing the empire state child credit for three years (Part C); to
amend the public housing law, in relation to certain eligibility for
the New York state low income housing tax credit program and increases
to the aggregate amount of the allocable tax credit (Part D); to amend
the tax law, in relation to credits for the rehabilitation of historic
properties (Part E); to amend the real property law, in relation to
the purchase of residential real property by certain purchasers
(Subpart A); and to amend the tax law, in relation to depreciation and
interest deduction adjustments for properties owned by institutional
investors in residential properties (Subpart B)(Part F); to amend the
economic development law and the tax law, in relation to establishing
the CATALIST NY program (Part G); to amend the economic development
law and the tax law, in relation to the excelsior jobs program; and to
repeal article 22 of the economic development law relating to the
employee training incentive program (Subpart A); and to amend the
economic development law, in relation to the empire state jobs
retention program (Subpart B) (Part H); to amend the tax law, in
relation to film production and post-production credits (Part I); to
amend the economic development law, in relation to the newspaper and
broadcast media jobs program (Part J); to amend the tax law, in
relation to the empire state digital gaming media production credit
(Part K); to amend subpart B of part PP of chapter 59 of the laws of
2021 amending the tax law and the state finance law relating to estab-
lishing the New York city musical and theatrical production tax credit
and establishing the New York state council on the arts cultural
program fund, in relation to the effectiveness thereof; and to amend
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-01-5
S. 3009 2 A. 3009
the tax law, in relation to the New York city musical and theatrical
production tax credit (Part L); to amend the tax law, in relation to
clarifying the notices afforded protest rights (Part M); to amend the
tax law, in relation to the filing of tax warrants and warrant-related
records (Part N); to amend the real property tax law and the tax law,
in relation to simplifying STAR income determinations; and repealing
certain provisions of such laws relating thereto (Part O); to repeal
certain provisions of the general municipal law and the public author-
ities law relating to certain reporting requirements of industrial
development agencies (Part P); to amend the tax law, in relation to
the pass-through entity tax and the New York city pass-through entity
tax election deadline (Part Q); to amend the tax law, in relation to
increasing the estimated tax threshold under article nine-A of the tax
law (Part R); to amend the tax law, in relation to establishing a tax
credit for organ donation (Part S); to amend the tax law, in relation
to making the estate tax three-year gift addback rule permanent (Part
T); to amend the tax law, in relation to expanding the credit for
employment of persons with disabilities (Part U); to amend the tax
law, in relation to reporting of federal partnership adjustments (Part
V); to amend the tax law and the administrative code of the city of
New York, in relation to establishing a credit against the tax on
personal income of certain residents of a city having a population of
one million or more inhabitants (Part W); to amend the general city
law, chapter 772 of the laws of 1966, relating to enabling any city
having a population of one million or more to raise tax revenue, and
the administrative code of the city of New York, in relation to
authorizing credits for relocation and employment assistance and
making available relocation assistance credits per employees (Part X);
to amend the tax law, in relation to extending the clean heating fuel
credit for three years (Part Y); to amend the tax law, in relation to
extending the alternative fuels and electric vehicle recharging prop-
erty credit for three years (Part Z); to amend the tax law, in
relation to extending the sales tax exemption for certain sales made
through vending machines (Part AA); to amend the labor law, in
relation to extending the workers with disabilities tax credit (Part
BB); to amend the tax law, in relation to extending the hire a vet
credit (Part CC); to amend chapter 59 of the laws of 2014, amending
the tax law relating to a musical and theatrical production credit, in
relation to the effectiveness thereof (Part DD); to amend part U of
chapter 59 of the laws of 2017, amending the tax law, relating to the
financial institution data match system for state tax collection
purposes, in relation to extending the effectiveness thereof (Part
EE); to amend the racing, pari-mutuel wagering and breeding law, in
relation to simplifying the pari-mutuel tax rate system; and to repeal
section 908 of the racing, pari-mutuel wagering and breeding law
relating thereto (Subpart A); and to amend the racing, pari-mutuel
wagering and breeding law, in relation to licenses for simulcast
facilities, sums relating to track simulcast, simulcast of out-of-
state thoroughbred races, simulcasting of races run by out-of-state
harness tracks and distributions of wagers; to amend chapter 281 of
the laws of 1994 amending the racing, pari-mutuel wagering and breed-
ing law and other laws relating to simulcasting, in relation to the
effectiveness thereof; and to amend chapter 346 of the laws of 1990
amending the racing, pari-mutuel wagering and breeding law and other
laws relating to simulcasting and the imposition of certain taxes, in
relation to the effectiveness thereof (Subpart B)(Part FF); to amend
S. 3009 3 A. 3009
the racing, pari-mutuel wagering and breeding law, in relation to the
tax on gaming revenues in certain regions; to amend part OOO of chap-
ter 59 of the laws of 2021 amending the racing, pari-mutuel wagering
and breeding law relating to the tax on gaming revenues, in relation
to the effectiveness thereof; and providing for the repeal of such
provisions of the racing, pari-mutuel wagering and breeding law relat-
ing thereto (Part GG); to amend the racing, pari-mutuel wagering and
breeding law, in relation to the utilization of funds in the Capital
off-track betting corporations' capital acquisition funds (Part HH);
and to amend the racing, pari-mutuel wagering and breeding law, in
relation to enhancing the health and safety of thoroughbred horses;
and providing for the repeal of such provisions upon expiration there-
of (Part II)
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 major components of legislation
which are necessary to implement the state fiscal plan for the 2025-2026
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through II. 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,
including 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. Section 606 of the tax law is amended by adding a new
subsection (qqq) to read as follows:
(QQQ) INFLATION REFUND CREDIT. (1) A TAXPAYER WHO MEETS THE ELIGIBIL-
ITY STANDARDS IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A
CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE IN THE AMOUNT SPECIFIED
IN PARAGRAPH THREE OF THIS SUBSECTION FOR TAX YEAR TWO THOUSAND TWENTY-
FIVE.
(2) TO BE ELIGIBLE FOR THE CREDIT, THE TAXPAYER (OR TAXPAYERS FILING
JOINT RETURNS)(A) MUST HAVE BEEN A FULL-YEAR RESIDENT IN THE STATE OF
NEW YORK IN TAX YEAR TWO THOUSAND TWENTY-THREE, AND (B) (I) MUST HAVE
HAD NEW YORK ADJUSTED GROSS INCOME OF THREE HUNDRED THOUSAND DOLLARS OR
LESS IN TAX YEAR TWO THOUSAND TWENTY-THREE IF THEY FILED A NEW YORK
STATE RESIDENT INCOME TAX RETURN AS MARRIED TAXPAYERS FILING JOINTLY OR
A QUALIFIED SURVIVING SPOUSE, OR (II) MUST HAVE HAD NEW YORK ADJUSTED
GROSS INCOME OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR LESS IN TAX YEAR
TWO THOUSAND TWENTY-THREE IF THEY FILED A NEW YORK STATE RESIDENT INCOME
TAX RETURN AS A SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE
RETURN, OR HEAD OF HOUSEHOLD.
(3) AMOUNT OF CREDIT. (A) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STAN-
DARDS IN PARAGRAPH TWO WHO FILED A NEW YORK STATE RESIDENT INCOME TAX
RETURN AS MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING
SPOUSE, THE CREDIT AMOUNT SHALL BE FIVE HUNDRED DOLLARS, AND (B) FOR
TAXPAYERS WHO MEET THE ELIGIBILITY STANDARDS IN PARAGRAPH TWO WHO FILED
A NEW YORK STATE RESIDENT INCOME TAX RETURN AS A SINGLE TAXPAYER,
S. 3009 4 A. 3009
MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF HOUSEHOLD, THE
CREDIT AMOUNT SHALL BE THREE HUNDRED DOLLARS.
(4) THE AMOUNT OF THE CREDIT 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. THE COMMISSIONER SHALL DETERMINE THE
TAXPAYER'S ELIGIBILITY FOR THIS CREDIT UTILIZING THE INFORMATION AVAIL-
ABLE TO THE COMMISSIONER ON THE TAXPAYER'S PERSONAL INCOME TAX RETURN
FILED FOR TAX YEAR TWO THOUSAND TWENTY-THREE. FOR THOSE TAXPAYERS WHOM
THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMIS-
SIONER SHALL ADVANCE A PAYMENT IN THE AMOUNT SPECIFIED IN PARAGRAPH
THREE OF THIS SUBSECTION. A TAXPAYER WHO FAILED TO RECEIVE AN ADVANCE
PAYMENT THAT THEY BELIEVE WAS DUE, OR WHO RECEIVED AN ADVANCE PAYMENT
THAT THEY BELIEVE IS LESS THAN THE AMOUNT THAT WAS DUE, MAY REQUEST
PAYMENT OF THE CLAIMED DEFICIENCY IN A MANNER PRESCRIBED BY THE COMMIS-
SIONER.
§ 2. Notwithstanding any provision of law to the contrary, any credit
paid pursuant to this act, to the extent includible in gross income for
federal income tax purposes, shall not be subject to state or local
income tax.
§ 3. This act shall take effect immediately.
PART B
Section 1. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1
of subsection (a) of section 601 of the tax law, as amended by section 1
of subpart A of part A of chapter 59 of the laws of 2022, are amended to
read as follows:
(vi) For taxable years beginning in two thousand twenty-three and
before two thousand [twenty-eight] TWENTY-FIVE the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900
Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over
$161,550
Over $323,200 but not over $18,252 plus 6.85% of excess over
$2,155,350 $323,200
Over $2,155,350 but not over $143,754 plus 9.65% of excess over
$5,000,000 $2,155,350
Over $5,000,000 but not over $418,263 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,478,263 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven]
TWENTY-FOUR AND BEFORE TWO THOUSAND TWENTY-SIX the following rates shall
apply:
[If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
S. 3009 5 A. 3009
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900
Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess
over $161,550
Over $323,200 but not over $18,252 plus 6.85% of excess
$2,155,350 over $323,200
Over $2,155,350 $143,754 plus 8.82% of excess
over $2,155,350]
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 3.90% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $669 PLUS 4.40% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $953 PLUS 5.15% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,174 PLUS 5.40% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,391 PLUS 5.90% OF EXCESS OVER
$161,550
OVER $323,200 BUT NOT OVER $17,928 PLUS 6.85% OF EXCESS
$2,155,350 OVER $323,200
OVER $2,155,350 BUT NOT OVER $143,430 PLUS 9.65% OF EXCESS
$5,000,000 OVER $2,155,350
OVER $5,000,000 BUT NOT OVER $417,939 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,477,939 PLUS 10.90% OF EXCESS
OVER $25,000,000
§ 2. Subparagraph (B) of paragraph 1 of subsection (a) of section 601
of the tax law is amended by adding two new clauses (viii) and (ix) to
read as follows:
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND
BEFORE TWO THOUSAND THIRTY-THREE THE FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $652 PLUS 4.30% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $929 PLUS 5.05% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,146 PLUS 5.30% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,229 PLUS 5.80% OF EXCESS
OVER $161,550
OVER $323,200 BUT NOT OVER $17,605 PLUS 6.85% OF EXCESS
$2,155,350 OVER $323,200
OVER $2,155,350 BUT NOT OVER $143,107 PLUS 9.65% OF EXCESS
$5,000,000 OVER $2,155,350
OVER $5,000,000 BUT NOT OVER $417,616 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,477,616 PLUS 10.90% OF EXCESS
OVER $25,000,000
S. 3009 6 A. 3009
(IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND THIRTY-TWO THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $652 PLUS 4.30% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $929 PLUS 5.05% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,146 PLUS 5.30% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,229 PLUS 5.80% OF EXCESS
OVER $161,550
OVER $323,200 BUT NOT OVER $17,605 PLUS 6.85% OF EXCESS
$2,155,350 OVER $323,200
OVER $2,155,350 $143,107 PLUS 8.82% OF EXCESS
OVER $2,155,350
§ 3. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of
subsection (b) of section 601 of the tax law, as amended by section 2 of
subpart A of part A of chapter 59 of the laws of 2022, are amended to
read as follows:
(vi) For taxable years beginning in two thousand twenty-three and
before two thousand [twenty-eight] TWENTY-FIVE the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800
Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650
Over $20,900 but not over $107,650 $901 plus 5.5% of excess over
$20,900
Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over
$107,650
Over $269,300 but not over $15,371 plus 6.85% of excess over
$1,616,450 $269,300
Over $1,616,450 but not over $107,651 plus 9.65% of excess over
$5,000,000 $1,616,450
Over $5,000,000 but not over $434,163 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,494,163 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven]
TWENTY-FOUR AND BEFORE TWO THOUSAND TWENTY-SIX the following rates shall
apply:
[If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $512 plus 4.5% of excess over
$17,650 $12,800
Over $17,650 but not over $730 plus 5.25% of excess over
$20,900 $17,650
Over $20,900 but not over $901 plus 5.5% of excess over
$107,650 $20,900
Over $107,650 but not over $5,672 plus 6.00% of excess
S. 3009 7 A. 3009
$269,300 over $107,650
Over $269,300 but not over $15,371 plus 6.85% of excess
$1,616,450 over $269,300
Over $1,616,450 $107,651 plus 8.82% of excess
over $1,616,450]
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 3.90% OF THE NEW YORK TAXABLE
INCOME
OVER $12,800 BUT NOT OVER $499 PLUS 4.40% OF EXCESS OVER
$17,650 $12,800
OVER $17,650 BUT NOT OVER $712 PLUS 5.15% OF EXCESS OVER
$20,900 $17,650
OVER $20,900 BUT NOT OVER $879 PLUS 5.40% OF EXCESS OVER
$107,650 $20,900
OVER $107,650 BUT NOT OVER $5,564 PLUS 5.90% OF EXCESS
$269,300 OVER $107,650
OVER $269,300 BUT NOT OVER $15,101 PLUS 6.85% OF EXCESS
$1,616,450 OVER $269,300
OVER $1,616,450 BUT NOT OVER $107,381 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,616,450
OVER $5,000,000 BUT NOT OVER $433,894 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,493,894 PLUS 10.90% OF EXCESS
OVER $25,000,000
§ 4. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
of the tax law is amended by adding two new clauses (viii) and (ix) to
read as follows:
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND
BEFORE TWO THOUSAND THIRTY-THREE THE FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 3.80% OF THE NEW YORK TAXABLE
INCOME
OVER $12,800 BUT NOT OVER $486 PLUS 4.30% OF EXCESS OVER
$17,650 $12,800
OVER $17,650 BUT NOT OVER $695 PLUS 5.05% OF EXCESS OVER
$20,900 $17,650
OVER $20,900 BUT NOT OVER $859 PLUS 5.30% OF EXCESS OVER
$107,650 $20,900
OVER $107,650 BUT NOT OVER $5,457 PLUS 5.80% OF EXCESS
$269,300 OVER $107,650
OVER $269,300 BUT NOT OVER $14,833 PLUS 6.85% OF EXCESS
$1,616,450 OVER $269,300
OVER $1,616,450 BUT NOT OVER $107,113 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,616,450
OVER $5,000,000 BUT NOT OVER $433,626 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,493,626 PLUS 10.90% OF EXCESS
OVER $25,000,000
(IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND THIRTY-TWO THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 3.80% OF THE NEW YORK TAXABLE
S. 3009 8 A. 3009
INCOME
OVER $12,800 BUT NOT OVER $486 PLUS 4.30% OF EXCESS OVER
$17,650 $12,800
OVER $17,650 BUT NOT OVER $695 PLUS 5.05% OF EXCESS OVER
$20,900 $17,650
OVER $20,900 BUT NOT OVER $859 PLUS 5.30% OF EXCESS OVER
$107,650 $20,900
OVER $107,650 BUT NOT OVER $5,457 PLUS 5.80% OF EXCESS
$269,300 OVER $107,650
OVER $269,300 BUT NOT OVER $14,833 PLUS 6.85% OF EXCESS
$1,616,450 OVER $269,300
OVER $1,616,450 $107,113 PLUS 8.82% OF EXCESS
OVER $1,616,450
§ 5. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of
subsection (c) of section 601 of the tax law, as amended by section 3 of
subpart A of part A of chapter 59 of the laws of 2022, are amended to
read as follows:
(vi) For taxable years beginning in two thousand twenty-three and
before two thousand [twenty-eight] TWENTY-FIVE the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900
Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over
$80,650
Over $215,400 but not over $12,356 plus 6.85% of excess over
$1,077,550 $215,400
Over $1,077,550 but not over $71,413 plus 9.65% of excess over
$5,000,000 $1,077,550
Over $5,000,000 but not over $449,929 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,509,929 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven]
TWENTY-FOUR AND BEFORE TWO THOUSAND TWENTY-SIX the following rates shall
apply:
[If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900
Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess
over $80,650
Over $215,400 but not over $12,356 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 $71,413 plus 8.82% of excess
over $1,077,550]
S. 3009 9 A. 3009
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 3.90% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $332 PLUS 4.40% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $473 PLUS 5.15% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $586 PLUS 5.40% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,191 PLUS 5.90% OF EXCESS
OVER $80,650
OVER $215,400 BUT NOT OVER $12,141 PLUS 6.85% OF EXCESS
$1,077,550 OVER $215,400
OVER $1,077,550 BUT NOT OVER $71,198 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,077,550
OVER $5,000,000 BUT NOT OVER $449,714 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,509,714 PLUS 10.90% OF EXCESS
OVER $25,000,000
§ 6. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
of the tax law is amended by adding two new clauses (viii) and (ix) to
read as follows:
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND
BEFORE TWO THOUSAND THIRTY-THREE THE FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 3.80% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $323 PLUS 4.30% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $461 PLUS 5.05% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $572 PLUS 5.30% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,110 PLUS 5.80% OF EXCESS
OVER $80,650
OVER $215,400 BUT NOT OVER $11,926 PLUS 6.85% OF EXCESS
$1,077,550 OVER $215,400
OVER $1,077,550 BUT NOT OVER $70,983 PLUS 9.65% OF EXCESS
$5,000,000 OVER $1,077,550
OVER $5,000,000 BUT NOT OVER $449,499 PLUS 10.30% OF EXCESS
$25,000,000 OVER $5,000,000
OVER $25,000,000 $2,509,499 PLUS 10.90% OF EXCESS
OVER $25,000,000
(IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND THIRTY-TWO THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 3.80% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $323 PLUS 4.30% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $461 PLUS 5.05% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $572 PLUS 5.30% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,110 PLUS 5.80% OF EXCESS
OVER $80,650
OVER $215,400 BUT NOT OVER $11,926 PLUS 6.85% OF EXCESS
S. 3009 10 A. 3009
$1,077,550 OVER $215,400
OVER $1,077,550 $70,983 PLUS 8.82% OF EXCESS
OVER $1,077,550
§ 7. The opening paragraph of subsection (d-4) of section 601 of the
tax law, as added by section 3 of subpart B of part A of chapter 59 of
the laws of 2022, is amended to read as follows:
Alternative tax table benefit recapture. Notwithstanding the
provisions of subsection (d), (d-1), (d-2) or (d-3) of this section, for
taxable years beginning on or after two thousand twenty-three and before
two thousand [twenty-eight] TWENTY-FIVE, there is hereby imposed a
supplemental tax in addition to the tax imposed under subsections (a),
(b) and (c) of this section for the purpose of recapturing the benefit
of the tax tables contained in such subsections. During these taxable
years, any reference in this chapter to subsection (d), (d-1), (d-2) or
(d-3) of this section shall be read as a reference to this subsection.
§ 8. Section 601 of the tax law is amended by adding three new
subsections (d-5), (d-6) and (d-7) to read as follows:
(D-5) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-6) OR (D-7)
OF THIS SECTION, FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND
TWENTY-FIVE AND BEFORE TWO THOUSAND TWENTY-SIX, THERE IS HEREBY IMPOSED
A SUPPLEMENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A),
(B) AND (C) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT
OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE
YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D), (D-1), (D-2),
(D-3), (D-4), (D-6) OR (D-7) OF THIS SECTION SHALL BE READ AS A REFER-
ENCE TO THIS SUBSECTION.
(1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
SURVIVING SPOUSES:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650, BUT
NOT OVER $25,000,000:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$27,900 $161,550 $0 $333
$161,550 $323,200 $333 $807
$323,200 $2,155,350 $1,140 $3,071
$2,155,350 $5,000,000 $4,211 $60,350
$5,000,000 $25,000,000 $64,561 $32,500
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$27,900 $161,550 NEW YORK ADJUSTED GROSS INCOME MINUS $107,650
$161,550 $323,200 NEW YORK ADJUSTED GROSS INCOME MINUS $161,550
$323,200 $2,155,350 NEW YORK ADJUSTED GROSS INCOME MINUS $323,200
$2,155,350 $5,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS $2,155,350
$5,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS $5,000,000
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN TWENTY-SEVEN THOUSAND NINE HUNDRED DOLLARS,
THE SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE PRODUCT OF
S. 3009 11 A. 3009
5.40 PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE COMPUTATION
ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS
THE LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED GROSS INCOME
MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS, AND THE
DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(B) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF 10.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (A) OF THIS SECTION.
(2) FOR RESIDENT HEADS OF HOUSEHOLDS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650, BUT
NOT OVER $25,000,000:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$107,650 $269,300 $0 $787
$269,300 $1,616,450 $787 $2,559
$1,616,450 $5,000,000 $3,346 $45,260
$5,000,000 $25,000,000 $48,606 $32,500
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$107,650 $269,300 NEW YORK ADJUSTED GROSS INCOME MINUS $107,650
$269,300 $1,616,450 NEW YORK ADJUSTED GROSS INCOME MINUS $269,300
$1,616,450 $5,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS $1,616,450
$5,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS $5,000,000
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY
DOLLARS, THE SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE
PRODUCT OF 5.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE
COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF
SUBSECTION (B) OF THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED
GROSS INCOME MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS,
AND THE DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(B) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF 10.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (B) OF THIS SECTION.
(3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650, BUT
NOT OVER $25,000,000:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$80,650 $215,400 $0 $567
$215,400 $1,077,550 $567 $2,047
S. 3009 12 A. 3009
$1,077,550 $5,000,000 $2,614 $30,172
$5,000,000 $25,000,000 $32,786 $32,500
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$80,650 $215,400 NEW YORK ADJUSTED GROSS INCOME MINUS $107,650
$215,400 $1,077,550 NEW YORK ADJUSTED GROSS INCOME MINUS $215,400
$1,077,550 $5,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS $1,077,550
$5,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS $5,000,000
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN EIGHTY THOUSAND SIX HUNDRED FIFTY DOLLARS, THE
SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE PRODUCT OF 5.90
PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE COMPUTATION ON THE
NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF SUBSECTION (C) OF
THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED GROSS INCOME MINUS
ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS, AND THE DENOMINA-
TOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(B) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF 10.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
(D-6) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-5) OR (D-7)
OF THIS SECTION, FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND
TWENTY-SIX AND BEFORE TWO THOUSAND THIRTY-THREE, THERE IS HEREBY IMPOSED
A SUPPLEMENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A),
(B) AND (C) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT
OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE
YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D), (D-1), (D-2),
(D-3), (D-4), (D-5) OR (D-7) OF THIS SECTION SHALL BE READ AS A REFER-
ENCE TO THIS SUBSECTION.
(1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
SURVIVING SPOUSES:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650, BUT
NOT OVER $25,000,000:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$27,900 $161,550 $0 $333
$161,550 $323,200 $333 $808
$323,200 $2,155,350 $1,141 $3,393
$2,155,350 $5,000,000 $4,534 $60,350
$5,000,000 $25,000,000 $64,884 $32,500
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$27,900 $161,550 NEW YORK ADJUSTED GROSS INCOME
MINUS $107,650
$161,550 $323,200 NEW YORK ADJUSTED GROSS INCOME
S. 3009 13 A. 3009
MINUS $161,550
$323,200 $2,155,350 NEW YORK ADJUSTED GROSS INCOME
MINUS $323,200
$2,155,350 $5,000,000 NEW YORK ADJUSTED GROSS INCOME
MINUS $2,155,350
$5,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME
MINUS $5,000,000
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN TWENTY-SEVEN THOUSAND NINE HUNDRED DOLLARS,
THE SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE PRODUCT OF
5.30 PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE COMPUTATION
ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH
IS THE LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED GROSS
INCOME MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS, AND
THE DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(B) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF 10.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (A) OF THIS SECTION.
(2) FOR RESIDENT HEADS OF HOUSEHOLDS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650, BUT
NOT OVER $25,000,000:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$107,650 $269,300 $0 $787
$269,300 $1,616,450 $787 $2,827
$1,616,450 $5,000,000 $3,614 $45,260
$5,000,000 $25,000,000 $48,874 $32,500
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$107,650 $269,300 NEW YORK ADJUSTED GROSS INCOME
MINUS $107,650
$269,300 $1,616,450 NEW YORK ADJUSTED GROSS INCOME
MINUS $269,300
$1,616,450 $5,000,000 NEW YORK ADJUSTED GROSS INCOME
MINUS $1,616,450
$5,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME
MINUS $5,000,000
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY
DOLLARS, THE SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE
PRODUCT OF 5.80 PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE
S. 3009 14 A. 3009
COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF
SUBSECTION (B) OF THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED
GROSS INCOME MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS,
AND THE DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(B) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF 10.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (B) OF THIS SECTION.
(3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650, BUT
NOT OVER $25,000,000:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$80,650 $215,400 $0 $568
$215,400 $1,077,550 $568 $2,261
$1,077,550 $5,000,000 $2,829 $30,172
$5,000,000 $25,000,000 $33,001 $32,500
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$80,650 $215,400 NEW YORK ADJUSTED GROSS INCOME
MINUS $107,650
$215,400 $1,077,550 NEW YORK ADJUSTED GROSS INCOME
MINUS $215,400
$1,077,550 $5,000,000 NEW YORK ADJUSTED GROSS INCOME
MINUS $1,077,550
$5,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME
MINUS $5,000,000
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN EIGHTY THOUSAND SIX HUNDRED FIFTY DOLLARS, THE
SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE PRODUCT OF 5.80
PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE COMPUTATION ON THE
NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF SUBSECTION (C) OF
THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED GROSS INCOME MINUS
ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS, AND THE DENOMINA-
TOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(B) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF 10.90 PERCENT AND NEW YORK TAXABLE INCOME AND THE
TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARA-
GRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
(D-7) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-5) OR (D-6)
OF THIS SECTION, FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND
THIRTY-THREE, THERE IS HEREBY IMPOSED A SUPPLEMENTAL TAX IN ADDITION TO
THE TAX IMPOSED UNDER SUBSECTIONS (A), (B) AND (C) OF THIS SECTION FOR
S. 3009 15 A. 3009
THE PURPOSE OF RECAPTURING THE BENEFIT OF THE TAX TABLES CONTAINED IN
SUCH SUBSECTIONS. DURING THESE TAXABLE YEARS, ANY REFERENCE IN THIS
CHAPTER TO SUBSECTION (D), (D-1), (D-2), (D-3), (D-4), (D-5) OR (D-6) OF
THIS SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
(1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
SURVIVING SPOUSES:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$27,900 $161,550 $0 $333
$161,550 $323,200 $333 $808
$323,200 $2,155,350 $1,141 $3,393
$2,155,350 $4,534 $42,461
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$27,900 $161,550 NEW YORK ADJUSTED GROSS INCOME MINUS $107,650
$161,550 $323,200 NEW YORK ADJUSTED GROSS INCOME MINUS $161,550
$323,200 $2,155,350 NEW YORK ADJUSTED GROSS INCOME MINUS $323,200
$2,155,350 NEW YORK ADJUSTED GROSS INCOME MINUS $2,155,350
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN TWENTY-SEVEN THOUSAND NINE HUNDRED DOLLARS,
THE SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE PRODUCT OF
5.30 PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE COMPUTATION
ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS
THE LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED GROSS INCOME
MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS, AND THE
DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(2) FOR RESIDENT HEADS OF HOUSEHOLDS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$107,650 $269,300 $0 $787
$269,300 $1,616,450 $787 $2,827
$1,616,450 $3,614 $31,844
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$107,650 $269,300 NEW YORK ADJUSTED GROSS INCOME MINUS $107,650
$269,300 $1,616,450 NEW YORK ADJUSTED GROSS INCOME MINUS $269,300
$1,616,450 NEW YORK ADJUSTED GROSS INCOME MINUS $1,616,450
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY
S. 3009 16 A. 3009
DOLLARS, THE SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE
PRODUCT OF 5.80 PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE
COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF
SUBSECTION (B) OF THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED
GROSS INCOME MINUS ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS,
AND THE DENOMINATOR OF WHICH IS FIFTY THOUSAND DOLLARS.
(3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS:
(A) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN $107,650:
(I) THE RECAPTURE BASE AND INCREMENTAL BENEFIT SHALL BE DETERMINED BY
NEW YORK TAXABLE INCOME AS FOLLOWS:
GREATER THAN NOT OVER RECAPTURE BASE INCREMENTAL BENEFIT
$80,650 $215,400 $0 $568
$215,400 $1,077,550 $568 $2,261
$1,077,550 $2,829 $21,228
(II) THE APPLICABLE AMOUNT SHALL BE DETERMINED BY NEW YORK TAXABLE
INCOME AS FOLLOWS:
GREATER THAN NOT OVER APPLICABLE AMOUNT
$80,650 $215,400 NEW YORK ADJUSTED GROSS INCOME MINUS $107,650
$215,400 $1,077,550 NEW YORK ADJUSTED GROSS INCOME MINUS $215,400
$1,077,550 NEW YORK ADJUSTED GROSS INCOME MINUS $1,077,550
(III) THE PHASE-IN FRACTION SHALL BE A FRACTION, THE NUMERATOR OF
WHICH SHALL BE THE LESSER OF FIFTY THOUSAND DOLLARS OR THE APPLICABLE
AMOUNT AND THE DENOMINATOR OF WHICH SHALL BE FIFTY THOUSAND DOLLARS; AND
(IV) THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE SUM OF THE RECAPTURE
BASE AND THE PRODUCT OF (I) THE INCREMENTAL BENEFIT AND (II) THE PHASE-
IN FRACTION. PROVIDED, HOWEVER, THAT IF THE NEW YORK TAXABLE INCOME OF
THE TAXPAYER IS LESS THAN EIGHTY THOUSAND SIX HUNDRED FIFTY DOLLARS, THE
SUPPLEMENTAL TAX SHALL EQUAL THE DIFFERENCE BETWEEN THE PRODUCT OF 5.80
PERCENT AND NEW YORK TAXABLE INCOME AND THE TAX TABLE COMPUTATION ON THE
NEW YORK TAXABLE INCOME SET FORTH IN PARAGRAPH ONE OF SUBSECTION (C) OF
THIS SECTION, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
LESSER OF FIFTY THOUSAND DOLLARS OR NEW YORK ADJUSTED GROSS INCOME MINUS
ONE HUNDRED SEVEN THOUSAND SIX HUNDRED FIFTY DOLLARS, AND THE DENOMINA-
TOR OF WHICH IS FIFTY THOUSAND DOLLARS.
§ 9. This act shall take effect immediately.
PART C
Section 1. Paragraph 1 of subsection c-1 of section 606 of the tax
law, as amended by section 1 of part HH of chapter 56 of the laws of
2023, is amended to read as follows:
(1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE, AND TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-EIGHT, A resident taxpayer shall be allowed a credit as
provided herein equal to the greater of one hundred dollars times the
number of qualifying children of the taxpayer or the applicable percent-
age of the child tax credit allowed the taxpayer under section twenty-
four of the internal revenue code for the same taxable year for each
qualifying child. Provided, however, in the case of a taxpayer whose
federal adjusted gross income exceeds the applicable threshold amount
set forth by section 24(b)(2) of the Internal Revenue Code, the credit
shall only be equal to the applicable percentage of the child tax credit
allowed the taxpayer under section 24 of the Internal Revenue Code for
each qualifying child. For the purposes of this subsection, a qualifying
S. 3009 17 A. 3009
child shall be a child who meets the definition of qualified child under
section 24(c) of the internal revenue code. The applicable percentage
shall be thirty-three percent. For purposes of this subsection, any
reference to section 24 of the Internal Revenue Code shall be a refer-
ence to such section as it existed immediately prior to the enactment of
Public Law 115-97.
§ 2. Subsection c-1 of section 606 of the tax law is amended by adding
a new paragraph (1-a) to read as follows:
(1-A) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED HEREIN, EQUAL
TO THE SUM OF:
(I) ONE THOUSAND DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN OF
THE TAXPAYER AGED THREE OR YOUNGER, AND
(II) THREE HUNDRED THIRTY DOLLARS TIMES THE NUMBER OF QUALIFYING CHIL-
DREN OF THE TAXPAYER WHO HAVE ATTAINED AGE FOUR AND NOT YET ATTAINED AGE
SEVENTEEN.
(B) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, A
RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED HEREIN, EQUAL TO
THE SUM OF:
(I) ONE THOUSAND DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN OF
THE TAXPAYER AGED THREE OR YOUNGER, AND
(II) FIVE HUNDRED DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN OF
THE TAXPAYER WHO HAVE ATTAINED AGE FOUR AND NOT YET ATTAINED AGE SEVEN-
TEEN.
(C) THE AMOUNT OF THE CREDIT ALLOWABLE UNDER SUBPARAGRAPHS (A) AND (B)
OF THIS PARAGRAPH SHALL BE REDUCED (BUT NOT BELOW ZERO) BY SIXTEEN
DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLARS BY WHICH THE
TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME EXCEEDS THE THRESHOLD AMOUNT.
FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE TERM "THRESHOLD AMOUNT" SHALL
MEAN: (I) ONE HUNDRED TEN THOUSAND DOLLARS IN THE CASE OF MARRIED
TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING SPOUSE; (II) SEVENTY-
FIVE THOUSAND DOLLARS IN THE CASE OF A TAXPAYER FILING AS HEAD OF HOUSE-
HOLD; AND (III) FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF A SINGLE
TAXPAYER OR MARRIED TAXPAYER FILING A SEPARATE RETURN.
(D) FOR THE PURPOSES OF THIS PARAGRAPH, A QUALIFYING CHILD SHALL BE AN
INDIVIDUAL WHO: (I) IS A CHILD, SIBLING, OR STEPSIBLING OF THE TAXPAYER,
OR A DESCENDENT OF ANY SUCH RELATIVE; (II) HAS THE SAME PRINCIPAL PLACE
OF ABODE AS THE TAXPAYER FOR MORE THAN ONE-HALF OF THE TAXABLE YEAR;
(III) HAS NOT ATTAINED AGE SEVENTEEN; (IV) HAS NOT PROVIDED OVER ONE-
HALF OF SUCH INDIVIDUAL'S OWN SUPPORT FOR THE CALENDAR YEAR IN WHICH THE
TAXABLE YEAR OF THE TAXPAYER BEGINS; (V) HAS NOT FILED A JOINT RETURN
(OTHER THAN ONLY FOR A CLAIM OF REFUND) WITH THE INDIVIDUAL'S SPOUSE
UNDER SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE TAXABLE
YEAR; AND (VI) IS A CITIZEN OR NATIONAL OF THE UNITED STATES, OR AN
INDIVIDUAL WITH AN INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER ISSUED BY
THE INTERNAL REVENUE SERVICE.
(E) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "CHILD" SHALL MEAN AN
INDIVIDUAL WHO IS THE OFFSPRING OR STEPCHILD OF THE TAXPAYER, OR AN
ELIGIBLE FOSTER CHILD OF THE TAXPAYER, OR A LEGALLY ADOPTED INDIVIDUAL
OF THE TAXPAYER, OR AN INDIVIDUAL WHO IS LAWFULLY PLACED WITH THE
TAXPAYER FOR LEGAL ADOPTION BY THE TAXPAYER.
(F) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH, IF
AN INDIVIDUAL MAY BE CLAIMED AS A QUALIFYING CHILD BY TWO OR MORE
TAXPAYERS FOR A TAXABLE YEAR, SUCH INDIVIDUAL SHALL BE TREATED AS THE
S. 3009 18 A. 3009
QUALIFYING CHILD OF THE TAXPAYER WHO IS: (I) A PARENT OF THE INDIVIDUAL,
OR (II) IF SUBCLAUSE (I) DOES NOT APPLY, THE TAXPAYER WITH THE HIGHEST
FEDERAL ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR.
(II) IF THE PARENTS CLAIMING ANY QUALIFYING CHILD DO NOT FILE A JOINT
RETURN TOGETHER, SUCH CHILD SHALL BE TREATED AS THE QUALIFYING CHILD OF:
(I) THE PARENT WITH WHOM THE CHILD RESIDED FOR THE LONGEST PERIOD OF
TIME DURING THE TAXABLE YEAR, OR (II) IF THE CHILD RESIDES WITH BOTH
PARENTS FOR THE SAME AMOUNT OF TIME DURING SUCH TAXABLE YEAR, THE PARENT
WITH THE HIGHEST FEDERAL ADJUSTED GROSS INCOME WHO FILES A RETURN PURSU-
ANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE.
(III) IF THE PARENTS OF AN INDIVIDUAL MAY CLAIM SUCH INDIVIDUAL AS A
QUALIFYING CHILD BUT NO PARENT SO CLAIMS THE INDIVIDUAL, SUCH INDIVIDUAL
MAY BE CLAIMED AS THE QUALIFYING CHILD OF ANOTHER TAXPAYER, BUT ONLY IF
THE FEDERAL ADJUSTED GROSS INCOME OF SUCH TAXPAYER IS HIGHER THAN THE
HIGHEST FEDERAL ADJUSTED GROSS INCOME OF ANY PARENT OF THE INDIVIDUAL,
REGARDLESS OF A REQUIREMENT TO FILE A RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE.
§ 3. This act shall take effect immediately.
PART D
Section 1. Subdivision 3 of section 22 of the public housing law, as
added by section 1 of part CC of chapter 63 of the laws of 2000, is
amended to read as follows:
3. Amount of credit. Except as provided in subdivisions four and five
of this section, the amount of low-income housing credit shall be the
applicable percentage of the qualified basis of each eligible low-income
building. BUILDINGS FINANCED BY REFUNDED BONDS USING THE RULES OF
SECTION 146(I)(6) OF THE INTERNAL REVENUE CODE, SHALL BE ELIGIBLE FOR
CREDIT PURSUANT TO THE RULES OF SECTION 42(B)(2) OF THE INTERNAL REVENUE
CODE.
§ 2. Subdivision 4 of section 22 of the public housing law, as amended
by section 4 of part J of chapter 59 of the laws of 2022, is amended to
read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be one hundred [seventy-two] EIGHTY-SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commission-
er[,] and does not apply to allowance to a taxpayer of the credit with
respect to an eligible low-income building for each year of the credit
period.
§ 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be [one] TWO hundred [eighty-seven] SEVENTEEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be two hundred [seventeen] FORTY-SEVEN million
S. 3009 19 A. 3009
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be two hundred [forty-seven] SEVENTY-SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 6. Subdivision 4 of section 22 of the public housing law, as amended
by section five of this act, is amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be [two] THREE hundred [seventy-seven] SEVEN million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 7. This act shall take effect immediately; provided, however,
section two of this act shall take effect April 1, 2025; section three
of this act shall take effect April 1, 2026; section four of this act
shall take effect April 1, 2027; section five of this act shall take
effect April 1, 2028; and section six of this act shall take effect
April 1, 2029.
PART E
Section 1. Subdivision 26 of section 210-B of the tax law, as added by
section 17 of part A of chapter 59 of the laws of 2014, paragraphs (a)
and (c) as amended by section 2 of part RR of chapter 59 of the laws of
2018, subparagraph (i) of paragraph (a) as amended by section 2, subpar-
agraph (ii) of paragraph (a) as amended by section 4 and paragraph (a-1)
as amended by section 3 of subpart B of part I of chapter 59 of the laws
of 2023, paragraph (e) as amended by section 1 of part U of chapter 59
of the laws of 2019, paragraph (f) as added by section 2 of part CCC of
chapter 59 of the laws of 2021, is amended to read as follows:
26. Credit for rehabilitation of historic properties. (a) Application
of credit. (i) For taxable years beginning on or after January first,
two thousand ten, and before January first, two thousand thirty, a
taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH
(G) OF THIS SUBDIVISION, shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
one hundred percent of the amount of credit allowed the taxpayer for the
same taxable year with respect to a certified historic structure, and
one hundred fifty percent of the amount of credit allowed the taxpayer
with respect to a certified historic structure that is a small project,
under internal revenue code section 47(c)(3), determined without regard
to ratably allocating the credit over a five year period as required by
subsection (a) of such section 47, with respect to a certified historic
structure located within the state. Provided, however, the credit shall
not exceed five million dollars.
S. 3009 20 A. 3009
(ii) For taxable years beginning on or after January first, two thou-
sand thirty, a taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED
IN PARAGRAPH (G) OF THIS SUBDIVISION, shall be allowed a credit as here-
inafter provided, against the tax imposed by this article, in an amount
equal to thirty percent of the amount of credit allowed the taxpayer for
the same taxable year determined without regard to ratably allocating
the credit over a five year period as required by subsection (a) of
section 47 of the internal revenue code, with respect to a certified
historic structure under subsection (c)(3) of section 47 of the internal
revenue code with respect to a certified historic structure located
within the state. Provided, however, the credit shall not exceed one
hundred thousand dollars.
(a-1) If the taxpayer OR TRANSFEREE is a partner in a partnership or a
shareholder in a New York S corporation, then the credit caps imposed in
paragraph (a) of this subdivision shall be applied at the entity level,
so that the aggregate credit allowed to all the partners or shareholders
of each such entity in the taxable year does not exceed the credit cap
that is applicable in that taxable year.
(b) Tax credits allowed pursuant to this subdivision shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
(c) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision must be added back BY THE TAXPAYER OR
TRANSFEREE in the same taxable year and in the same proportion as the
federal credit.
(d) 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 the credit allowed under
this subdivision for any taxable year reduces the tax to such amount or
if the taxpayer otherwise pays tax based on the fixed dollar minimum
amount, any amount of credit thus not deductible in such taxable year
shall be treated as an overpayment of tax to be recredited 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.
(e) [Except in the case of a qualified rehabilitation project under-
taken within a state park, state historic site, or other land owned by
the state, that is under the jurisdiction of the office of parks, recre-
ation and historic preservation, to] TO be eligible for the credit
allowable under this subdivision, the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subdivision for an additional two
calendar years. THE ELIGIBILITY RESTRICTIONS SET FORTH IN THIS PARAGRAPH
SHALL NOT BE APPLICABLE IF:
S. 3009 21 A. 3009
(I) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN WITHIN A STATE
PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS
UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC
PRESERVATION; OR
(II) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN FOR THE
PROVISION OF AFFORDABLE HOUSING AND THE TAXPAYER HAS ENTERED INTO A
REGULATORY AGREEMENT WITH ANY STATE OR FEDERAL AGENCY OR AUTHORITY, OR
ANY OTHER GOVERNMENT ENTITY THAT IS AUTHORIZED TO ENGAGE IN THE FINANC-
ING, CONSTRUCTION OR OVERSIGHT OF AFFORDABLE HOUSING WITHIN SUCH ENTI-
TY'S JURISDICTION, AND WHERE SUCH REGULATORY AGREEMENT SETS FORTH
AFFORDABILITY REQUIREMENTS APPLICABLE FOR A PERIOD OF NOT LESS THAN
THIRTY YEARS AND THAT IS BINDING ON ALL SUCCESSORS OF THE TAXPAYER.
(f) For purposes of this subdivision "small project" means qualified
rehabilitation expenditures totaling two million five hundred thousand
dollars or less.
(G)(I) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY
TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY
TAX CREDIT AUTHORIZED PURSUANT TO SECTION FORTY-SEVEN OF THE INTERNAL
REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION PROJECT MAY BE
ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO
INTEREST IN THE QUALIFIED REHABILITATION PROJECT OR IN AN ENTITY WITH AN
OWNERSHIP INTEREST IN THE QUALIFIED REHABILITATION PROJECT. A TRANSFEREE
MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
(II) A TAXPAYER SEEKING TO TRANSFER A CREDIT ALLOWED PURSUANT TO THIS
SUBDIVISION MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE
TRANSFER CONTRACT MUST SPECIFY:
(A) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE
PROJECT;
(B) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
(C) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE CLAIMED
AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
(D) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE
TRANSFER CREDIT; AND
(E) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(III) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A
CREDIT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT
FILES A TRANSFER APPLICATION WITH THE COMMISSIONER OF PARKS, RECREATION
AND HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND SUCH TRANSFER APPLI-
CATION IS APPROVED. THE TRANSFER APPLICATION SHALL INCLUDE THE NAME AND
FEDERAL IDENTIFICATION NUMBERS OF THE TAXPAYER AND EACH PROPOSED TRANS-
FEREE, THE AMOUNT OF CREDIT PROPOSED TO BE TRANSFERRED TO EACH PROPOSED
TRANSFEREE, A COPY OF THE TRANSFER CONTRACT, AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OR THE COMMISSIONER OF PARKS, RECREATION AND HISTOR-
IC PRESERVATION MAY REQUIRE. THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION SHALL APPROVE OR DENY EACH TRANSFER APPLICATION
AND, IF AN APPLICATION IS DENIED, SHALL ISSUE A WRITTEN DETERMINATION TO
THE TAXPAYER. IF THE TRANSFER IS APPROVED, THE COMMISSIONER OF PARKS,
RECREATION AND HISTORIC PRESERVATION SHALL ISSUE A TRANSFER APPROVAL
CERTIFICATE THAT PROVIDES THE NAME OF THE TRANSFEROR AND ALL TRANSFER-
EES, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION AND
THE COMMISSIONER DEEM NECESSARY. A COPY OF THE TRANSFER APPROVAL CERTIF-
ICATE MUST BE ATTACHED TO EACH TRANSFEREE'S TAX RETURN. THE COMMISSIONER
OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE
COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED
S. 3009 22 A. 3009
NECESSARY FOR THE TRANSFERABILITY OF CREDITS ALLOWED UNDER THIS SUBDIVI-
SION.
(IV) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION
SHALL FORWARD COPIES OF ALL TRANSFER APPLICATIONS AND ATTACHMENTS THERE-
TO AND APPROVAL CERTIFICATES TO THE COMMISSIONER WITHIN THIRTY DAYS
AFTER THE TRANSFER IS APPROVED.
(V) A TAXPAYER ALLOWED A CREDIT PURSUANT TO SECTION FORTY-SEVEN OF THE
INTERNAL REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION THAT IS
ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBDIVISION SHALL REMAIN
SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
ER WITH RESPECT TO THE CREDIT ALLOWED BY THIS SUBDIVISION, NONE OF WHICH
SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANS-
FERRED.
§ 2. Subsection (oo) of section 606 of the tax law, as amended by
chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 472
of the laws of 2010, subparagraph (A) of paragraph 1 as amended by
section 1 of subpart B of part I of chapter 59 of the laws of 2023,
paragraph 3 as amended by section 1 of part RR of chapter 59 of the laws
of 2018, paragraph 4 as amended by section 1 of part F of chapter 59 of
the laws of 2013, paragraph 5 as amended by section 2 of part U of chap-
ter 59 of the laws of 2019, paragraph 6 as added by section 1 of part
CCC of chapter 59 of the laws of 2021, is amended to read as follows:
(oo) Credit for rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand thirty, a taxpayer, OR A TRANSFEREE
OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH SEVEN OF THIS SUBSECTION,
shall be allowed a credit as hereinafter provided, against the tax
imposed by this article, in an amount equal to one hundred percent of
the amount of credit allowed the taxpayer with respect to a certified
historic structure, and one hundred fifty percent of the amount of cred-
it allowed the taxpayer with respect to a certified historic structure
that is a small project, under internal revenue code section 47(c)(3),
determined without regard to ratably allocating the credit over a five
year period as required by subsection (a) of such section 47, with
respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed five million dollars. For
taxable years beginning on or after January first, two thousand thirty,
a taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH
SEVEN OF THIS SUBSECTION, shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
thirty percent of the amount of credit allowed the taxpayer with respect
to a certified historic structure under internal revenue code section
47(c)(3), determined without regard to ratably allocating the credit
over a five year period as required by subsection (a) of such section
47, with respect to a certified historic structure located within the
state; provided, however, the credit shall not exceed one hundred thou-
sand dollars.
(B) If the taxpayer OR TRANSFEREE is a partner in a partnership or a
shareholder of a New York S corporation, then the credit cap imposed in
subparagraph (A) of this paragraph shall be applied at the entity level,
so that the aggregate credit allowed to all the partners or shareholders
of each such entity in the taxable year does not exceed the credit cap
that is applicable in that taxable year.
(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
S. 3009 23 A. 3009
(3) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subsection and that cred-
it pursuant to such section 47 is recaptured pursuant to subsection (a)
of section 50 of the internal revenue code, a portion of the credit
allowed under this subsection must be added back BY THE TAXPAYER OR
TRANSFEREE in the same taxable year and in the same proportion as the
federal recapture.
(4) 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.
(5) [Except in the case of a qualified rehabilitation project under-
taken within a state park, state historic site, or other land owned by
the state, that is under the jurisdiction of the office of parks, recre-
ation and historic preservation, to] TO be eligible for the credit
allowable under this subsection the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subsection for an additional two calen-
dar years. THE ELIGIBILITY RESTRICTIONS SET FORTH IN THIS PARAGRAPH
SHALL NOT BE APPLICABLE IF:
(A) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN WITHIN A STATE
PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS
UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC
PRESERVATION; OR
(B) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN FOR THE PROVISION
OF AFFORDABLE HOUSING AND THE TAXPAYER HAS ENTERED INTO A REGULATORY
AGREEMENT WITH ANY STATE OR FEDERAL AGENCY OR AUTHORITY, OR ANY OTHER
GOVERNMENT ENTITY THAT IS AUTHORIZED TO ENGAGE IN THE FINANCING,
CONSTRUCTION OR OVERSIGHT OF AFFORDABLE HOUSING WITHIN SUCH ENTITY'S
JURISDICTION, AND WHERE SUCH REGULATORY AGREEMENT SETS FORTH AFFORDABIL-
ITY REQUIREMENTS APPLICABLE FOR A PERIOD OF NOT LESS THAN THIRTY YEARS
AND THAT IS BINDING ON ALL SUCCESSORS OF THE TAXPAYER.
(6) For purposes of this subsection the term "small project" means
qualified rehabilitation expenditures totaling two million five hundred
thousand dollars or less.
(7)(A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBSECTION MAY
TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY
TAX CREDIT AUTHORIZED PURSUANT TO SECTION FORTY-SEVEN OF THE INTERNAL
REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION PROJECT MAY BE
ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO
INTEREST IN THE QUALIFIED REHABILITATION PROJECT OR IN AN ENTITY WITH AN
OWNERSHIP INTEREST IN THE QUALIFIED REHABILITATION PROJECT. A TRANSFEREE
MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
(B) A TAXPAYER SEEKING TO TRANSFER A CREDIT ALLOWED PURSUANT TO THIS
SUBSECTION MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE
TRANSFER CONTRACT MUST SPECIFY:
S. 3009 24 A. 3009
(I) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE
PROJECT;
(II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
(III) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE
CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
(IV) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE
TRANSFER CREDIT; AND
(V) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
IT PURSUANT TO THIS SUBSECTION AND SEEKING TO TRANSFER THE CREDIT FILES
A TRANSFER APPLICATION WITH THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND SUCH TRANSFER APPLICA-
TION IS APPROVED. THE TRANSFER APPLICATION SHALL INCLUDE THE NAME AND
FEDERAL IDENTIFICATION NUMBERS OF THE TAXPAYER AND EACH PROPOSED TRANS-
FEREE, THE AMOUNT OF CREDIT PROPOSED TO BE TRANSFERRED TO EACH PROPOSED
TRANSFEREE, A COPY OF THE TRANSFER CONTRACT, AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OR THE COMMISSIONER OF PARKS, RECREATION AND HISTOR-
IC PRESERVATION MAY REQUIRE. THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION SHALL APPROVE OR DENY EACH TRANSFER APPLICATION
AND, IF AN APPLICATION IS DENIED, SHALL ISSUE A WRITTEN DETERMINATION TO
THE TAXPAYER. IF THE TRANSFER IS APPROVED, THE COMMISSIONER OF PARKS,
RECREATION AND HISTORIC PRESERVATION SHALL ISSUE A TRANSFER APPROVAL
CERTIFICATE THAT PROVIDES THE NAME OF THE TRANSFEROR AND ALL TRANSFER-
EES, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION AND
THE COMMISSIONER DEEM NECESSARY. A COPY OF THE TRANSFER APPROVAL CERTIF-
ICATE MUST BE ATTACHED TO EACH TRANSFEREE'S TAX RETURN. THE COMMISSIONER
OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE
COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED
NECESSARY FOR THE TRANSFERABILITY OF CREDITS ALLOWED UNDER THIS
SUBSECTION.
(D) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION
SHALL FORWARD COPIES OF ALL TRANSFER APPLICATIONS AND ATTACHMENTS THERE-
TO AND APPROVAL CERTIFICATES TO THE COMMISSIONER WITHIN THIRTY DAYS
AFTER THE TRANSFER IS APPROVED.
(E) A TAXPAYER ALLOWED A CREDIT PURSUANT TO SECTION FORTY-SEVEN OF THE
INTERNAL REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION THAT IS
ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBSECTION SHALL REMAIN
SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
ER WITH RESPECT TO THE CREDIT ALLOWED BY THIS SUBSECTION, NONE OF WHICH
SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANS-
FERRED.
§ 3. Subdivision (y) of section 1511 of the tax law, as added by chap-
ter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended
by section 5 of subpart B of part I of chapter 59 of the laws of 2023,
paragraph 3 as amended by section 3 of part RR of chapter 59 of the laws
of 2018, paragraph 4 as amended by section 4 of part F of chapter 59 of
the laws of 2013, paragraph 5 as amended by section 3 of part U of chap-
ter 59 of the laws of 2019, paragraph 6 as added by section 3 of part
CCC of chapter 59 of the laws of 2021, is amended to read as follows:
(y) Credit for rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand thirty, a taxpayer, OR A TRANSFEREE
OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH SEVEN OF THIS SUBDIVISION,
shall be allowed a credit as hereinafter provided, against the tax
imposed by this article, in an amount equal to one hundred percent of
S. 3009 25 A. 3009
the amount of credit allowed the taxpayer with respect to a certified
historic structure, and one hundred fifty percent of the amount of cred-
it allowed the taxpayer with respect to a certified historic structure
that is a small project, under internal revenue code section 47(c)(3),
determined without regard to ratably allocating the credit over a five
year period as required by subsection (a) of such section 47, with
respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed five million dollars. For
taxable years beginning on or after January first, two thousand thirty,
a taxpayer, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN PARAGRAPH
SEVEN OF THIS SUBDIVISION, shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
thirty percent of the amount of credit allowed the taxpayer with respect
to a certified historic structure under internal revenue code section
47(c)(3), determined without regard to ratably allocating the credit
over a five year period as required by subsection (a) of such section 47
with respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed one hundred thousand
dollars.
(B) If the taxpayer OR TRANSFEREE is a partner in a partnership, then
the cap imposed in subparagraph (A) of this paragraph shall be applied
at the entity level, so that the aggregate credit allowed to all the
partners of such partnership in the taxable year does not exceed the
credit cap that is applicable in that taxable year.
(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
(3) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subdivision and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subdivision in the taxable year the credit was
claimed must be added back BY THE TAXPAYER OR TRANSFEREE in the same
taxable year and in the same proportion as the federal recapture.
(4) The credit allowed under this subdivision for any taxable year
shall not reduce the tax due for such year to less than the minimum
fixed by paragraph four of subdivision (a) of section fifteen hundred
two or section fifteen hundred two-a of this article, whichever is
applicable. However, if the amount of credits allowed under this subdi-
vision 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 eight-
y-eight of this chapter notwithstanding, no interest shall be paid ther-
eon.
(5) [Except in the case of a qualified rehabilitation project under-
taken within a state park, state historic site, or other land owned by
the state, that is under the jurisdiction of the office of parks, recre-
ation and historic preservation, to] TO be eligible for the credit
allowable under this subdivision, the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
S. 3009 26 A. 3009
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subdivision for an additional two
calendar years. THE ELIGIBILITY RESTRICTIONS SET FORTH IN THIS PARAGRAPH
SHALL NOT BE APPLICABLE IF:
(A) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN WITHIN A STATE
PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS
UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC
PRESERVATION; OR
(B) A QUALIFIED REHABILITATION PROJECT IS UNDERTAKEN FOR THE PROVISION
OF AFFORDABLE HOUSING AND THE TAXPAYER HAS ENTERED INTO A REGULATORY
AGREEMENT WITH ANY STATE OR FEDERAL AGENCY OR AUTHORITY, OR ANY OTHER
GOVERNMENT ENTITY THAT IS AUTHORIZED TO ENGAGE IN THE FINANCING,
CONSTRUCTION OR OVERSIGHT OF AFFORDABLE HOUSING WITHIN SUCH ENTITY'S
JURISDICTION, AND WHERE SUCH REGULATORY AGREEMENT SETS FORTH AFFORDABIL-
ITY REQUIREMENTS APPLICABLE FOR A PERIOD OF NOT LESS THAN THIRTY YEARS
AND THAT IS BINDING ON ALL SUCCESSORS OF THE TAXPAYER.
(6) For purposes of this subdivision "small project" means qualified
rehabilitation expenditures totaling two million five hundred thousand
dollars or less.
(7)(A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY
TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY
TAX CREDIT AUTHORIZED PURSUANT TO SECTION FORTY-SEVEN OF THE INTERNAL
REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION PROJECT MAY BE
ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO
INTEREST IN THE QUALIFIED REHABILITATION PROJECT OR IN AN ENTITY WITH AN
OWNERSHIP INTEREST IN THE QUALIFIED REHABILITATION PROJECT. A TRANSFEREE
MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
(B) A TAXPAYER SEEKING TO TRANSFER A CREDIT ALLOWED PURSUANT TO THIS
SUBDIVISION MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE
TRANSFER CONTRACT MUST SPECIFY:
(I) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE
PROJECT;
(II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
(III) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE
CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
(IV) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE
TRANSFER CREDIT; AND
(V) THE AMOUNT OF CREDIT BEING TRANSFERRED.
(C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
IT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT FILES
A TRANSFER APPLICATION WITH THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND SUCH TRANSFER APPLICA-
TION IS APPROVED. THE TRANSFER APPLICATION SHALL INCLUDE THE NAME AND
FEDERAL IDENTIFICATION NUMBERS OF THE TAXPAYER AND EACH PROPOSED TRANS-
FEREE, THE AMOUNT OF CREDIT PROPOSED TO BE TRANSFERRED TO EACH PROPOSED
TRANSFEREE, A COPY OF THE TRANSFER CONTRACT, AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OR THE COMMISSIONER OF PARKS, RECREATION AND HISTOR-
IC PRESERVATION MAY REQUIRE. THE COMMISSIONER OF PARKS, RECREATION AND
HISTORIC PRESERVATION SHALL APPROVE OR DENY EACH TRANSFER APPLICATION
AND, IF AN APPLICATION IS DENIED, SHALL ISSUE A WRITTEN DETERMINATION TO
THE TAXPAYER. IF THE TRANSFER IS APPROVED, THE COMMISSIONER OF PARKS,
RECREATION AND HISTORIC PRESERVATION SHALL ISSUE A TRANSFER APPROVAL
CERTIFICATE THAT PROVIDES THE NAME OF THE TRANSFEROR AND ALL TRANSFER-
S. 3009 27 A. 3009
EES, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION
AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION AND
THE COMMISSIONER DEEM NECESSARY. A COPY OF THE TRANSFER APPROVAL CERTIF-
ICATE MUST BE ATTACHED TO EACH TRANSFEREE'S TAX RETURN. THE COMMISSIONER
OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE
COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED
NECESSARY FOR THE TRANSFERABILITY OF CREDITS ALLOWED UNDER THIS SUBDIVI-
SION.
(D) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION
SHALL FORWARD COPIES OF ALL TRANSFER APPLICATIONS AND ATTACHMENTS THERE-
TO AND APPROVAL CERTIFICATES TO THE COMMISSIONER WITHIN THIRTY DAYS
AFTER THE TRANSFER IS APPROVED.
(E) A TAXPAYER ALLOWED A CREDIT PURSUANT TO SECTION FORTY-SEVEN OF THE
INTERNAL REVENUE CODE WITH RESPECT TO A QUALIFIED REHABILITATION THAT IS
ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBDIVISION SHALL REMAIN
SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
ER WITH RESPECT TO THE CREDIT ALLOWED BY THIS SUBDIVISION, NONE OF WHICH
SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANS-
FERRED.
§ 4. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2026.
PART F
Section 1. This Part enacts into law major components of legislation
relating to the purchase of residential real property by certain
purchasers, and taxation relating thereto. Each component is wholly
contained within a Subpart identified as Subpart A and Subpart B. The
effective date for each particular provision contained within such
Subpart is set forth in the last section of such Subpart. Any provision
in any section contained within a Subpart, including the effective date
of the Subpart, 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 Subpart in which it
is found. Section three of this Part sets forth the general effective
date of this Part.
SUBPART A
Section 1. The real property law is amended by adding a new article 16
to read as follows:
ARTICLE 16
SEVENTY-FIVE-DAY WAITING PERIOD FOR SALE OF SINGLE-FAMILY AND TWO-FAMILY
RESIDENCES TO CERTAIN PURCHASERS
SECTION 520. DEFINITIONS.
521. SEVENTY-FIVE-DAY WAITING PERIOD.
522. ENFORCEMENT.
§ 520. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "COMMUNITY LAND TRUST" SHALL MEAN A NONPROFIT ORGANIZATION EXEMPT
FROM CERTAIN TAXES PURSUANT TO SECTION 501 (C) (3) OR SECTION 501(C) (4)
OF THE UNITED STATES INTERNAL REVENUE CODE AND/OR THAT IS INCORPORATED
UNDER THE NOT-FOR-PROFIT CORPORATION LAW WHOSE PRIMARY PURPOSE IS TO
PROVIDE AFFORDABLE HOUSING BY OWNING LAND AND LEASING OR SELLING RESI-
DENTIAL HOUSING SITUATED ON THAT LAND TO HOUSEHOLDS THAT MEET CERTAIN
INCOME REQUIREMENTS.
S. 3009 28 A. 3009
2. (A) "COVERED ENTITY" SHALL MEAN AN INSTITUTIONAL REAL ESTATE INVES-
TOR OR AN ENTITY THAT RECEIVES FUNDING FROM AN INSTITUTIONAL REAL ESTATE
INVESTOR FOR THE PURCHASE OF A SINGLE-FAMILY RESIDENCE OR TWO-FAMILY
RESIDENCE.
(B) "COVERED ENTITY" SHALL NOT INCLUDE:
(I) AN ORGANIZATION WHICH IS DESCRIBED IN SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE AND EXEMPT FROM TAX UNDER SECTION 501(A) OF THE
INTERNAL REVENUE CODE;
(II) A LAND BANK; OR
(III) A COMMUNITY LAND TRUST.
3.(A) "INSTITUTIONAL REAL ESTATE INVESTOR" SHALL MEAN AN ENTITY OR
COMBINED GROUP THAT:
(I) OWNS TEN OR MORE SINGLE-FAMILY RESIDENCES AND/OR TWO-FAMILY RESI-
DENCES;
(II) MANAGES OR RECEIVES FUNDS POOLED FROM INVESTORS AND ACTS AS A
FIDUCIARY WITH RESPECT TO ONE OR MORE INVESTORS; AND
(III) HAS FIFTY MILLION DOLLARS OR MORE IN NET VALUE OR ASSETS UNDER
MANAGEMENT ON ANY DAY DURING THE TAXABLE YEAR.
(B) AN ENTITY IS CONSIDERED OWNING A SINGLE-FAMILY RESIDENCE OR TWO-
FAMILY RESIDENCE IF IT DIRECTLY OWNS THE SINGLE-FAMILY RESIDENCE OR
TWO-FAMILY RESIDENCE OR INDIRECTLY OWNS TEN PERCENT OR MORE OF THE
SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE.
4. "LAND BANK" SHALL MEAN AN ENTITY CREATED IN ACCORDANCE WITH ARTICLE
SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
5. "SINGLE-FAMILY RESIDENCE" SHALL MEAN A RESIDENTIAL PROPERTY
CONSISTING OF ONE DWELLING UNIT; PROVIDED THAT SUCH TERM SHALL NOT
INCLUDE:
(A) ANY SINGLE-FAMILY RESIDENCE THAT IS TO BE USED AS THE PRINCIPAL
RESIDENCE OF ANY PERSON WHO HAS AN OWNERSHIP INTEREST IN THE COVERED
ENTITY THAT SEEKS TO PURCHASE THE SINGLE-FAMILY RESIDENCE; OR
(B) ANY SINGLE-FAMILY RESIDENCE CONSTRUCTED, ACQUIRED, OR OPERATED
WITH FEDERAL, STATE, OR LOCAL APPROPRIATED FUNDING SOURCES.
6. "TWO-FAMILY RESIDENCE" SHALL MEAN A RESIDENTIAL PROPERTY CONSISTING
OF TWO DWELLING UNITS; PROVIDED THAT SUCH TERM SHALL NOT INCLUDE:
(A) ANY TWO-FAMILY RESIDENCE IN WHICH ONE OF THE DWELLING UNITS IS TO
BE USED AS THE PRINCIPAL RESIDENCE OF ANY PERSON WHO HAS AN OWNERSHIP
INTEREST IN THE COVERED ENTITY THAT SEEKS TO PURCHASE THE TWO-FAMILY
RESIDENCE; OR
(B) ANY TWO-FAMILY RESIDENCE CONSTRUCTED, ACQUIRED, OR OPERATED WITH
FEDERAL, STATE, OR LOCAL APPROPRIATED FUNDING SOURCES.
§ 521. SEVENTY-FIVE-DAY WAITING PERIOD. 1. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, ON AND AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE, IT
SHALL BE UNLAWFUL FOR A COVERED ENTITY TO PURCHASE, ACQUIRE, OR OFFER TO
PURCHASE OR ACQUIRE ANY INTEREST IN A SINGLE-FAMILY RESIDENCE OR TWO-FA-
MILY RESIDENCE UNLESS THE SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESI-
DENCE HAS BEEN LISTED FOR SALE TO THE GENERAL PUBLIC FOR AT LEAST SEVEN-
TY-FIVE DAYS.
2. THE SEVENTY-FIVE-DAY WAITING PERIOD SET FORTH IN SUBDIVISION ONE OF
THIS SECTION SHALL RESTART IF THE SELLER CHANGES THE ASKING PRICE FOR
THE SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE, AND A COVERED ENTI-
TY SHALL BE PROHIBITED FROM PURCHASING, ACQUIRING, OR OFFERING TO
PURCHASE OR ACQUIRE ANY INTEREST IN THE SINGLE-FAMILY RESIDENCE OR TWO-
FAMILY RESIDENCE UNTIL IT HAS BEEN LISTED FOR SALE TO THE GENERAL PUBLIC
AT THE NEW ASKING PRICE FOR AT LEAST AN ADDITIONAL SEVENTY-FIVE DAYS.
S. 3009 29 A. 3009
3. A COVERED ENTITY THAT VIOLATES THIS SECTION MAY BE SUBJECT TO CIVIL
DAMAGES AND PENALTIES IN AN AMOUNT NOT TO EXCEED TWO HUNDRED FIFTY THOU-
SAND DOLLARS.
4. BEFORE FINALIZING THE SALE OF A SINGLE-FAMILY OR TWO-FAMILY RESI-
DENCE, A COVERED ENTITY PURCHASING SUCH RESIDENCE SHALL BE REQUIRED TO
SUBMIT TO THE SELLER OR ANYONE ACTING AS AN AGENT FOR SUCH SELLER, A
FORM THAT HAS BEEN SIGNED BY THE COVERED ENTITY PURCHASER, OR AN AUTHOR-
IZED AGENT THEREOF, AND NOTARIZED, STATING THAT THE PURCHASER IS A
COVERED ENTITY. ANY COVERED ENTITY OR COVERED ENTITY'S AGENT THAT
VIOLATES THIS SECTION MAY BE SUBJECT TO CIVIL DAMAGES AND PENALTIES IN
AN AMOUNT NOT TO EXCEED TEN THOUSAND DOLLARS.
5. THE FOLLOWING FORM SHALL BE COMPLETED BY A COVERED ENTITY PURCHAS-
ING A SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE:
"COMPLIANCE WITH REAL PROPERTY LAW ARTICLE 16
PURSUANT TO ARTICLE 16 OF THE NEW YORK STATE REAL PROPERTY LAW,
COVERED ENTITIES ARE REQUIRED TO WAIT AT LEAST 75 DAYS AFTER A SINGLE-
FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE HAS BEEN LISTED FOR SALE TO THE
GENERAL PUBLIC TO PURCHASE, ACQUIRE, OR OFFER TO PURCHASE OR ACQUIRE ANY
INTEREST IN THE SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE. PRIOR
TO FINALIZING THE SALE, THE COVERED ENTITY OR ITS AGENT IS REQUIRED TO
COMPLETE THIS FORM STATING THAT THE PURCHASER IS A COVERED ENTITY.
THE BUYER OF THIS SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE IS A
COVERED ENTITY AS DEFINED IN NEW YORK STATE REAL PROPERTY LAW § 520. THE
BUYER IS SUBJECT TO THE STATUTORY 75-DAY WAITING PERIOD. FAILURE TO
COMPLY WITH THE 75-DAY WAITING PERIOD MAY RESULT IN CIVIL FINES AND
PENALTIES.
ANY COVERED ENTITY OR COVERED ENTITY'S AGENT THAT DOES NOT COMPLETE
AND SUBMIT THIS FORM AS REQUIRED BY STATUTE, OR ABIDE BY THE STATUTORY
WAITING PERIOD, MAY BE LIABLE FOR CIVIL DAMAGES.
IDENTIFYING INFORMATION
BUYER OR BUYERS OF THIS RESIDENCE:
____________________________
PRINTED NAME AND MAILING ADDRESS
____________________________
PRINTED NAME AND MAILING ADDRESS
BY SIGNING THIS FORM, THE BUYER OR ITS AGENT AFFIRMS THAT THE STATEMENTS
HEREIN ARE TRUE UNDER THE PENALTIES OF PERJURY.
SIGNATURE OF BUYER(S) OR ITS AGENT OF THIS SINGLE-FAMILY RESIDENCE OR
TWO-FAMILY RESIDENCE:
____________________________
SIGNATURE DATE
____________________________
SIGNATURE DATE
____________________________
SIGNATURE OF WITNESSES
____________________________
SIGNATURE DATE
____________________________
SIGNATURE DATE
____________________________
NOTARY ACKNOWLEDGEMENT
(INSERT NOTARY ACKNOWLEDGEMENT FOR THIS FORM HERE)"
§ 522. ENFORCEMENT. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
ATTORNEY GENERAL OF THE STATE OF NEW YORK SHALL HAVE THE AUTHORITY TO
ENFORCE THE PROVISIONS OF SECTION FIVE HUNDRED TWENTY-ONE OF THIS ARTI-
CLE BY APPLYING, IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK, TO
S. 3009 30 A. 3009
THE SUPREME COURT OF THE STATE OF NEW YORK, ON NOTICE OF FIVE DAYS, FOR
AN ORDER ENJOINING THE CONTINUANCE OF SUCH VIOLATIVE ACTIVITY, INCLUDING
BUT NOT LIMITED TO BY BRINGING AN ACTION FOR INJUNCTIVE OR DECLARATORY
RELIEF IF A SINGLE-FAMILY RESIDENCE OR TWO-FAMILY RESIDENCE IS IN THE
PROCESS OF BEING OR HAS BEEN SOLD IN A MANNER THAT CONTRAVENES THE
REQUIREMENTS OF SECTION FIVE HUNDRED TWENTY-ONE OF THIS ARTICLE, AND
IMPOSING CIVIL DAMAGES AND PENALTIES PURSUANT TO SUBDIVISIONS THREE AND
FOUR OF SECTION FIVE HUNDRED TWENTY-ONE OF THIS ARTICLE, AS APPLICABLE.
§ 2. Severability. If any provision of this act, or any application of
any provision of this act, is held to be invalid, that shall not affect
the validity or effectiveness of any other provision of this act, or of
any other application of any provision of this act, which can be given
effect without that provision or application; and to that end, the
provisions and applications of this act are severable.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.
SUBPART B
Section 1. Subdivision 9 of section 208 of the tax law is amended by
adding a new paragraph (c-4) to read as follows:
(C-4) DEPRECIATION AND INTEREST DEDUCTION ADJUSTMENTS FOR COVERED
PROPERTIES OWNED BY AN INSTITUTIONAL REAL ESTATE INVESTOR. (1) NOTWITH-
STANDING ANY OTHER PROVISION OF THIS SECTION, IN THE CASE OF A CORPO-
RATION OR COMBINED GROUP THAT IS AN INSTITUTIONAL REAL ESTATE INVESTOR
OR A PARTNER, MEMBER OR SHAREHOLDER OF AN ENTITY THAT IS AN INSTITU-
TIONAL REAL ESTATE INVESTOR, ENTIRE NET INCOME SHALL BE COMPUTED WITH
THE ADJUSTMENTS FOR DEPRECIATION AND INTEREST RELATED TO COVERED PROPER-
TIES AS SET FORTH IN THIS PARAGRAPH.
(2) DEFINITIONS. (A) "INSTITUTIONAL REAL ESTATE INVESTOR" MEANS AN
ENTITY OR COMBINED GROUP THAT (I) OWNS TEN OR MORE COVERED PROPERTIES,
(II) MANAGES FUNDS POOLED FROM INVESTORS AND ACTS AS A FIDUCIARY WITH
RESPECT TO ONE OR MORE INVESTORS, AND (III) HAS FIFTY MILLION DOLLARS OR
MORE IN NET VALUE OR ASSETS UNDER MANAGEMENT ON ANY DAY DURING THE TAXA-
BLE YEAR. AN ENTITY IS CONSIDERED OWNING A COVERED PROPERTY IF IT
DIRECTLY OWNS THE COVERED PROPERTY OR INDIRECTLY OWNS TEN PERCENT OR
MORE OF THE COVERED PROPERTY.
(B) "COVERED PROPERTY" MEANS A RESIDENTIAL PROPERTY CONSISTING OF NO
MORE THAN TWO DWELLING UNITS LOCATED IN NEW YORK STATE.
(3) DEPRECIATION DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, NO
DEDUCTION FOR DEPRECIATION ALLOWED UNDER THE INTERNAL REVENUE CODE OR
THIS SECTION SHALL BE ALLOWED.
(4) INTEREST DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, THE
INTEREST DEDUCTION FOR FEDERAL INCOME TAX PURPOSES ALLOWED UNDER SECTION
ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE SHALL NOT BE
ALLOWED AND MUST BE ADDED BACK IN THE COMPUTATION OF ENTIRE NET INCOME,
EXCEPT WITH RESPECT TO INTEREST PAID OR ACCRUED IN THE TAXABLE YEAR WHEN
SUCH COVERED PROPERTY IS SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPAL
RESIDENCE OF SUCH INDIVIDUAL OR SOLD TO A NONPROFIT ORGANIZATION THAT
HAS AS ITS PRINCIPAL PURPOSE THE CREATION, DEVELOPMENT, OR PRESERVATION
OF AFFORDABLE HOUSING. FOR PURPOSES OF THIS SUBPARAGRAPH, ANY AMOUNT OF
INTEREST THAT WOULD HAVE BEEN ALLOWED UNDER SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE IN CONNECTION WITH A COVERED PROPERTY
BUT FOR AN ELECTION TO TREAT SUCH INTEREST AS CHARGEABLE TO CAPITAL
ACCOUNT SHALL BE TREATED AS AN AMOUNT ALLOWED UNDER SECTION ONE HUNDRED
SIXTY-THREE OF THE INTERNAL REVENUE CODE.
S. 3009 31 A. 3009
§ 2. Section 612 of the tax law is amended by adding a new subsection
(y) to read as follows:
(Y) DEPRECIATION AND INTEREST ADJUSTMENTS FOR COVERED PROPERTIES OWNED
BY AN INSTITUTIONAL REAL ESTATE INVESTOR. (1) NOTWITHSTANDING ANY OTHER
PROVISION OF THIS SECTION, IN THE CASE OF A TAXPAYER THAT IS A PARTNER,
MEMBER OR SHAREHOLDER OF AN ENTITY THAT IS AN INSTITUTIONAL REAL ESTATE
INVESTOR AS DEFINED IN PARAGRAPH (C-4) OF SUBDIVISION NINE OF SECTION
TWO HUNDRED EIGHT OF THIS CHAPTER, NEW YORK ADJUSTED GROSS INCOME SHALL
BE COMPUTED WITH ADJUSTMENTS FOR DEPRECIATION AND INTEREST RELATED TO
COVERED PROPERTIES AS SET FORTH IN THIS SUBSECTION.
(2) DEPRECIATION DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, NO
DEDUCTION FOR DEPRECIATION ALLOWED UNDER THE INTERNAL REVENUE CODE OR
THIS SECTION SHALL BE ALLOWED.
(3) FEDERAL INTEREST DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES,
THE INTEREST DEDUCTION FOR FEDERAL INCOME TAX PURPOSES ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE SHALL NOT
BE ALLOWED AND MUST BE ADDED BACK IN THE COMPUTATION OF NEW YORK
ADJUSTED GROSS INCOME, EXCEPT WITH RESPECT TO INTEREST PAID OR ACCRUED
IN THE TAXABLE YEAR WHEN SUCH COVERED PROPERTY IS SOLD TO AN INDIVIDUAL
FOR USE AS THE PRINCIPAL RESIDENCE OF SUCH INDIVIDUAL OR SOLD TO A
NONPROFIT ORGANIZATION THAT HAS AS ITS PRINCIPAL PURPOSE THE CREATION,
DEVELOPMENT, OR PRESERVATION OF AFFORDABLE HOUSING. FOR PURPOSES OF THIS
PARAGRAPH, ANY AMOUNT OF INTEREST THAT WOULD HAVE BEEN ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE IN
CONNECTION WITH A COVERED PROPERTY BUT FOR AN ELECTION TO TREAT SUCH
INTEREST AS CHARGEABLE TO CAPITAL ACCOUNT SHALL BE TREATED AS AN AMOUNT
ALLOWED UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE
CODE.
§ 3. Subdivision (b) of section 1503 of the tax law is amended by
adding a new paragraph 17 to read as follows:
(17) DEPRECIATION AND INTEREST ADJUSTMENTS FOR COVERED PROPERTIES
OWNED BY AN INSTITUTIONAL REAL ESTATE INVESTOR. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF THIS SECTION, IN THE CASE OF A TAXPAYER THAT IS AN
INSTITUTIONAL REAL ESTATE INVESTOR OR PARTNER, MEMBER OR SHAREHOLDER OF
AN ENTITY THAT IS AN INSTITUTIONAL REAL ESTATE INVESTOR AS DEFINED IN
PARAGRAPH (C-4) OF SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS
CHAPTER, ENTIRE NET INCOME SHALL BE COMPUTED WITH ADJUSTMENTS FOR DEPRE-
CIATION AND INTEREST RELATED TO COVERED PROPERTIES AS SET FORTH IN THIS
PARAGRAPH.
(B) DEPRECIATION DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES, NO
DEDUCTION FOR DEPRECIATION ALLOWED UNDER THE INTERNAL REVENUE CODE OR
THIS SECTION SHALL BE ALLOWED.
(C) FEDERAL INTEREST DEDUCTIONS. WITH RESPECT TO COVERED PROPERTIES,
THE INTEREST DEDUCTION FOR FEDERAL INCOME TAX PURPOSES ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE SHALL NOT
BE ALLOWED AND MUST BE ADDED BACK IN THE COMPUTATION OF ENTIRE NET
INCOME, EXCEPT WITH RESPECT TO INTEREST PAID OR ACCRUED IN THE TAXABLE
YEAR WHEN SUCH COVERED PROPERTY IS SOLD TO AN INDIVIDUAL FOR USE AS THE
PRINCIPAL RESIDENCE OF SUCH INDIVIDUAL OR SOLD TO A NONPROFIT ORGANIZA-
TION THAT HAS AS ITS PRINCIPAL PURPOSE THE CREATION, DEVELOPMENT, OR
PRESERVATION OF AFFORDABLE HOUSING. FOR PURPOSES OF THIS SUBPARAGRAPH,
ANY AMOUNT OF INTEREST THAT WOULD HAVE BEEN ALLOWED UNDER SECTION ONE
HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE IN CONNECTION WITH A
COVERED PROPERTY BUT FOR AN ELECTION TO TREAT SUCH INTEREST AS CHARGEA-
BLE TO CAPITAL ACCOUNT SHALL BE TREATED AS AN AMOUNT ALLOWED UNDER
SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE.
S. 3009 32 A. 3009
§ 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately, provided, however, that
the applicable effective date of Subparts A through B of this act shall
be as specifically set forth in the last section of such Subparts.
PART G
Section 1. The economic development law is amended by adding a new
article 30 to read as follows:
ARTICLE 30
CATALIST NY PROGRAM
SECTION 510. SHORT TITLE.
511. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
512. DEFINITIONS.
513. ELIGIBILITY CRITERIA.
514. APPLICATION AND APPROVAL PROCESS.
515. TAX BENEFITS.
516. POWERS AND DUTIES OF THE COMMISSIONER.
§ 510. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "COMPANIES ATTRACTING TALENT TO ADVANCE LEADING INNOVATIONS AND
SCALE TECHNOLOGIES IN NEW YORK PROGRAM", OR THE "CATALIST NY PROGRAM".
§ 511. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY
FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC
POLICY, TO GROW THE INNOVATION ECONOMY IN NEW YORK STATE AND SUPPORT
EARLY-STAGE INNOVATION BUSINESSES DURING A CRITICAL PHASE OF THEIR
GROWTH.
§ 512. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. "CATALIST NY INCUBATOR" SHALL MEAN A NEW YORK STATE INCUBATOR THAT
HAS BEEN CERTIFIED BY THE DEPARTMENT AS A CATALIST NY INCUBATOR.
2. "CATALIST NY SMALL BUSINESS" SHALL MEAN ANY BUSINESS THAT QUALIFIES
AS A SMALL BUSINESS UNDER SECTION ONE HUNDRED THIRTY-ONE OF THIS CHAPTER
THAT HAS BEEN CERTIFIED BY THE DEPARTMENT AS A CATALIST NY SMALL BUSI-
NESS.
3. "CERTIFICATE OF TAX BENEFITS" SHALL MEAN THE DOCUMENT ISSUED TO A
CATALIST NY SMALL BUSINESS BY THE DEPARTMENT, AFTER THE DEPARTMENT HAS
VERIFIED THAT SUCH BUSINESS ENTITY HAS MET ALL APPLICABLE CRITERIA IN
SECTION FIVE HUNDRED THIRTEEN OF THIS ARTICLE TO BE ELIGIBLE FOR THE
CATALIST NY TAX BENEFITS ALLOWED UNDER SECTION FIVE HUNDRED FIFTEEN OF
THIS ARTICLE. THE CERTIFICATE SHALL BE ISSUED IN EACH YEAR IN WHICH THE
ELIGIBILITY CRITERIA ARE SATISFIED AND SHALL SPECIFY (A) THE NUMBER OF
CATALIST NY SMALL BUSINESS NET NEW JOBS THAT ARE ELIGIBLE FOR THE TAX
BENEFITS PURSUANT TO SECTION FIVE HUNDRED FIFTEEN OF THIS ARTICLE; AND
(B) THE TAXABLE YEAR IN WHICH SUCH TAX BENEFITS ARE APPLICABLE.
4. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
5. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
S. 3009 33 A. 3009
6. "NEW YORK STATE INCUBATOR" SHALL MEAN A BUSINESS INCUBATION PROGRAM
THAT (A) PROVIDES PHYSICAL SPACE TO EARLY-STAGE INNOVATION-FOCUSED BUSI-
NESSES IN NEW YORK STATE; (B) HAS BEEN IN OPERATION FOR AT LEAST THREE
YEARS PRIOR TO THE DATE OF APPLICATION TO BECOME A CATALIST NY INCUBA-
TOR; AND (C) PROVIDES TECHNICAL ASSISTANCE, DIRECT MENTORSHIP, ENTREPRE-
NEURIAL EDUCATION, AND BUSINESS DEVELOPMENT SERVICES TO EARLY-STAGE
INNOVATION-FOCUSED BUSINESSES.
7. "NET NEW JOB" SHALL MEAN A FULL-TIME JOB THAT: (A) IS NEW TO THE
STATE; AND (B) HAS NOT BEEN TRANSFERRED FROM EMPLOYMENT WITH ANOTHER
BUSINESS LOCATED IN THIS STATE THROUGH AN ACQUISITION, MERGER, CONSOL-
IDATION OR OTHER REORGANIZATION OF BUSINESSES, OR THE ACQUISITION OF
ASSETS OF ANOTHER BUSINESS, AND HAS NOT BEEN TRANSFERRED FROM EMPLOYMENT
WITH A RELATED PERSON IN THIS STATE. FOR PURPOSES OF THIS SUBDIVISION,
FULL-TIME MEANS AT LEAST THIRTY-FIVE HOURS OF GAINFUL WORK A WEEK.
§ 513. ELIGIBILITY CRITERIA. 1. TO QUALIFY AS A CATALIST NY INCUBATOR,
A NEW YORK STATE INCUBATOR SHALL BE A NEW YORK STATE CERTIFIED INCUBATOR
OR INNOVATION HOT SPOT UNDER SECTION SIXTEEN-V OF THE NEW YORK STATE
URBAN DEVELOPMENT CORPORATION ACT OR MEET ALL OF THE FOLLOWING REQUIRE-
MENTS: (A) HAS BEEN IN OPERATION IN NEW YORK STATE FOR AT LEAST THREE
YEARS, PRIOR TO SUBMISSION OF AN APPLICATION TO THE DEPARTMENT FOR
CERTIFICATION AS A CATALIST NY INCUBATOR, WITH A DEMONSTRATED TRACK
RECORD OF SUPPORTING HIGH GROWTH START-UP COMPANIES; (B) PROVIDE TECHNI-
CAL ASSISTANCE, DIRECT MENTORSHIP, ENTREPRENEURIAL EDUCATION, AND ACCESS
TO INVESTMENT AND BUSINESS DEVELOPMENT SERVICES, INCLUDING PROVIDING
ASSISTANCE IN THE DEVELOPMENT OF BUSINESS PLANS , TO INCUBATOR CLIENTS;
AND (C) PROVIDE PHYSICAL SPACE UNDER A WRITTEN AGREEMENT FOR ANY INDI-
VIDUAL INCUBATOR CLIENT. PRIORITY SHALL BE GIVEN TO ENTITIES THAT
SUPPORT BUSINESSES WITHIN THE FOLLOWING SECTORS: CLEAN ENERGY AND
CLIMATE TECHNOLOGY; LIFE SCIENCES; COMPUTING AND CYBERSECURITY; AGRICUL-
TURAL TECHNOLOGY; ADVANCED MANUFACTURING; MATERIALS; AND MICROELECTRON-
ICS.
2. A CATALIST NY INCUBATOR SHALL NOMINATE, FOR CERTIFICATION BY THE
DEPARTMENT AS A CATALIST NY SMALL BUSINESS, SMALL BUSINESSES THAT HAVE
COMPLETED A PROGRAM WITH THE CATALIST NY INCUBATOR, OR OTHERWISE HAVE A
DIRECT AND SUSTAINED ENGAGEMENT WITH THE CATALIST NY INCUBATOR, TO
RECEIVE TAX BENEFITS PURSUANT TO SECTION FIVE HUNDRED FIFTEEN OF THIS
ARTICLE, AND PARAGRAPH FORTY-EIGHT OF SUBDIVISION (C) OF SECTION SIX
HUNDRED TWELVE OF THE TAX LAW FOR UP TO A PERIOD OF FIVE TAXABLE YEARS
COMMENCING WITH THE TAXABLE YEAR DURING WHICH THE CATALIST NY SMALL
BUSINESS IS CERTIFIED BY THE DEPARTMENT.
3. TO BE ELIGIBLE TO BE NOMINATED BY A CATALIST NY INCUBATOR AND
SUBSEQUENTLY CERTIFIED BY THE DEPARTMENT TO RECEIVE TAX BENEFITS AS A
CATALIST NY SMALL BUSINESS, SUCH BUSINESS ENTITY SHALL SATISFY EACH OF
THE FOLLOWING CONDITIONS: (A) SUCH BUSINESS SHALL GRADUATE FROM, OR HAVE
OTHERWISE COMPLETED, SUCH CATALIST NY INCUBATOR'S SERVICES WITHIN THE
PREVIOUS TWENTY-FOUR MONTHS AND ENGAGED WITH THE CATALIST NY INCUBATOR
FOR AT LEAST TWELVE MONTHS; (B) SUCH BUSINESS SHALL BE HEADQUARTERED IN
NEW YORK STATE AND ONE OR MORE OF THE PERSONS EMPLOYED AS CHIEF EXECU-
TIVE OFFICER, CHIEF TECHNOLOGY OFFICER, OR CHIEF OPERATING OFFICER SHALL
PERFORM SERVICES IN NEW YORK STATE; (C) AT THE TIME SUCH BUSINESS IS
NOMINATED, IT SHALL HAVE FEWER THAN TWENTY FULL-TIME EMPLOYEES; (D) SUCH
BUSINESS SHALL DEMONSTRATE A SOUND FINANCIAL PLAN AND, IF APPROVED TO
RECEIVE THE TAX BENEFITS ALLOWED UNDER THIS PROGRAM, SUCH BUSINESS SHALL
CREATE AT LEAST TWO ADDITIONAL PERMANENT FULL-TIME, NEW YORK STATE BASED
JOBS; (E) DURING THE TAXABLE YEAR IMMEDIATELY PRECEDING THE TAXABLE YEAR
IN WHICH SUCH BUSINESS WOULD BE ELIGIBLE FOR THE TAX BENEFITS PURSUANT
S. 3009 34 A. 3009
TO THIS PROGRAM, THE SMALL BUSINESS SHALL NOT EXCEED TWO MILLION DOLLARS
IN GROSS RECEIPTS, AS DETERMINED IN ACCORDANCE WITH GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES; AND (F) ANY OTHER CONDITIONS AS DETERMINED BY THE
DEPARTMENT THROUGH REGULATIONS OR GUIDELINES PROMULGATED PURSUANT TO
PARAGRAPH TWO OF SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
4. SUCH NOMINATIONS AND DETERMINATIONS SHALL BE MADE IN CONFORMANCE
WITH PROGRAM GUIDELINES ISSUED BY THE DEPARTMENT.
§ 514. APPLICATION AND APPROVAL PROCESS. 1. NEW YORK STATE INCUBATORS
SHALL SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER TO
BE CERTIFIED AS A CATALIST NY INCUBATOR.
2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR THE
NEW YORK STATE INCUBATORS TO SUBMIT APPLICATIONS TO BE CERTIFIED AS
CATALIST NY INCUBATORS AND FOR NOMINATIONS OF SMALL BUSINESSES FOR
CERTIFICATION AS CATALIST NY SMALL BUSINESSES.
3. TO NOMINATE A SMALL BUSINESS FOR CERTIFICATION AS A CATALIST NY
SMALL BUSINESS, A CATALIST NY INCUBATOR SHALL:
(A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER OF THE ELIGIBILITY OF THE SMALL BUSINESS BEING NOMINATED PURSUANT
TO PARAGRAPHS TWO AND THREE OF SECTION FIVE HUNDRED THIRTEEN OF THIS
ARTICLE FOR THE TAX BENEFITS PURSUANT TO SECTION FIVE HUNDRED FIFTEEN OF
THIS ARTICLE AND PARAGRAPH FORTY-EIGHT OF SUBDIVISION (C) OF SECTION SIX
HUNDRED TWELVE OF THE TAX LAW;
(B) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; AND
(C) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE
DEPARTMENT RELEVANT TO THIS ARTICLE.
4. AFTER REVIEWING A CATALIST NY INCUBATOR'S NOMINATION AND DETERMIN-
ING THAT THE NOMINATED SMALL BUSINESS MEETS THE ELIGIBILITY CRITERIA AS
SET FORTH IN THIS ARTICLE, THE DEPARTMENT MAY ISSUE TO SUCH SMALL BUSI-
NESS A CERTIFICATE OF TAX BENEFIT AS A CATALIST NY SMALL BUSINESS.
§ 515. TAX BENEFITS. 1. A CATALIST NY SMALL BUSINESS CERTIFIED BY THE
DEPARTMENT SHALL BE ELIGIBLE FOR AN ALLOCATION BY THE DEPARTMENT OF
PERSONAL INCOME TAX BENEFITS PURSUANT TO PARAGRAPH FORTY-EIGHT OF
SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THE TAX LAW FOR UP TO
EIGHT NET NEW JOBS. THE TAX BENEFITS SHALL BE AVAILABLE FOR A PERIOD OF
FIVE TAXABLE YEARS COMMENCING WITH THE TAXABLE YEAR DURING WHICH THE
DEPARTMENT ISSUES THE CERTIFICATE OF TAX BENEFITS TO THE CATALIST NY
SMALL BUSINESS.
2. TO BE ELIGIBLE FOR THE TAX BENEFITS ALLOCATED PURSUANT TO THIS
PROGRAM, (A) THE CATALIST NY SMALL BUSINESS EMPLOYEES SHALL BE EMPLOYED
BY AND WORK EXCLUSIVELY FOR THE CATALIST NY SMALL BUSINESS IN A NET NEW
JOB DURING THE TAXABLE YEAR; (B) THE CATALIST NY SMALL BUSINESS EMPLOYEE
SHALL BE ENGAGED IN WORK FOR THE CATALIST NY SMALL BUSINESS FOR AT LEAST
ONE-HALF OF THE TAXABLE YEAR; AND (C) THE CATALIST NY SMALL BUSINESS
SHALL BE IN COMPLIANCE WITH THE REQUIREMENTS SET FORTH IN THIS ARTICLE.
3. IF THE CERTIFIED CATALIST NY SMALL BUSINESS CREATES MORE NET NEW
JOBS THAN FOR WHICH IT HAS BEEN ALLOCATED PERSONAL INCOME TAX BENEFITS,
THE ALLOCATED PERSONAL INCOME TAX BENEFITS SHALL BE PROVIDED TO ELIGIBLE
CATALIST NY SMALL BUSINESS EMPLOYEES BASED ON THE EMPLOYEES' DATES OF
HIRING.
4. THE CATALIST NY SMALL BUSINESS SHALL IDENTIFY TO THE DEPARTMENT,
THROUGH THE SUBMISSION OF A CATALIST JOBS PLAN, THE TITLES THAT SHALL
RECEIVE PERSONAL INCOME TAX BENEFITS PURSUANT TO THIS SECTION FOR INCLU-
SION IN THE CERTIFICATE OF TAX BENEFITS PROVIDED TO SUCH CATALIST NY
SMALL BUSINESS AND SUCH TITLES SHALL BE INCLUDED ON THE CERTIFICATE OF
TAX BENEFITS PROVIDED TO SUCH BUSINESS. CATALIST NY SMALL BUSINESSES
S. 3009 35 A. 3009
SHALL ANNUALLY IDENTIFY TO THE DEPARTMENT OF TAXATION AND FINANCE, IN
THE FORM AND MATTER ESTABLISHED BY SUCH DEPARTMENT, THE CATALIST NY
SMALL BUSINESS EMPLOYEES WHO ARE ELIGIBLE TO RECEIVE THE PERSONAL INCOME
TAX BENEFITS ALLOCATED TO SUCH BUSINESS. THE CATALIST NY SMALL BUSINESS
SHALL PROVIDE A COPY OF THE CERTIFICATE OF TAX BENEFITS ISSUED BY THE
DEPARTMENT TO EACH SUCH EMPLOYEE.
5. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE AND BEFORE JANUARY FIRST, TWO THOUSAND THIRTY, THE AGGREGATE
NUMBER OF CATALIST NY SMALL BUSINESS EMPLOYEES ALLOWED THE TAX BENEFITS
UNDER THIS ARTICLE IN ANY TAXABLE YEAR SHALL BE FOUR THOUSAND FIVE
HUNDRED, THE FUNDS FOR WHICH BENEFITS SHALL BE ALLOTTED FROM THE FUNDS
AVAILABLE FOR TAX CREDITS UNDER ARTICLE SEVENTEEN OF THIS CHAPTER. SUCH
AGGREGATE NUMBER OF ELIGIBLE CATALIST NY SMALL BUSINESS EMPLOYEES SHALL
BE ALLOCATED BY THE DEPARTMENT AMONG CATALIST NY SMALL BUSINESSES IN
ORDER OF PRIORITY BASED UPON THE DATE OF CERTIFICATION UNDER THIS ARTI-
CLE.
6. NO TAX BENEFIT SHALL BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND THIRTY-FIVE.
§ 516. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER IS
AUTHORIZED TO ACCEPT APPLICATIONS FROM NEW YORK STATE INCUBATORS FOR
DESIGNATION AS "CATALIST NY INCUBATORS", TO ACCEPT NOMINATIONS BY CATAL-
IST NY INCUBATORS OF SMALL BUSINESSES FOR DESIGNATION AS CATALIST NY
SMALL BUSINESSES, AND TO ISSUE CERTIFICATES OF TAX BENEFITS UNDER THIS
ARTICLE.
2. THE COMMISSIONER SHALL PROMULGATE GUIDELINES OR REGULATIONS ESTAB-
LISHING A NOMINATION PROCESS FOR SMALL BUSINESSES AND ELIGIBILITY CRITE-
RIA THAT WILL BE APPLIED CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE,
SO AS NOT TO EXCEED THE ANNUAL CAP SET FORTH IN SECTION FIVE HUNDRED
FIFTEEN OF THIS ARTICLE WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE
CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN
EMERGENCY BASIS.
3. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX BENEFITS THAT SHALL
BE ISSUED BY THE COMMISSIONER TO ELIGIBLE CATALIST NY SMALL BUSINESSES.
SUCH CERTIFICATE SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE
DEPARTMENT OF TAXATION AND FINANCE.
4. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING TO BE A CATALIST NY INCUBATOR AND DESIGNATION AS A
CATALIST NY SMALL BUSINESS AND SHALL REMOVE ANY SUCH ENTITIES FROM THE
PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS SET FORTH IN SECTION
FIVE HUNDRED THIRTEEN OF THIS ARTICLE, OR FOR FAILING TO MEET THE
REQUIREMENT SET FORTH IN SUBDIVISION ONE OF SECTION FIVE HUNDRED FOUR-
TEEN OF THIS ARTICLE.
5. THE COMMISSIONER SHALL PROMULGATE REGULATIONS OR GUIDELINES TO
ESTABLISH AN APPLICATION PROCESS TO BECOME CERTIFIED AS A CATALIST NY
INCUBATOR AND SHALL INCLUDE IN SUCH REGULATIONS OR GUIDELINES THE
REQUIREMENTS THAT ALL NOMINATED SMALL BUSINESSES SHALL ADHERE TO IN
ORDER TO BE CONSIDERED FOR THE TAX BENEFITS UNDER THIS ARTICLE.
§ 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 48 to read as follows:
(48) THE AMOUNT OF ANY WAGES RECEIVED DURING THE TAXABLE YEAR BY AN
EMPLOYEE SPECIFIED IN A CERTIFICATE OF TAX BENEFITS ISSUED TO A CATALIST
NY SMALL BUSINESS PURSUANT TO ARTICLE THIRTY OF THE ECONOMIC DEVELOPMENT
LAW, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME. NOTWITH-
STANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER
MAY ASSIST THE COMMISSIONER OF ECONOMIC DEVELOPMENT IN DETERMINING
S. 3009 36 A. 3009
WHETHER A CATALIST NY SMALL BUSINESS, OR AN EMPLOYEE OF SUCH BUSINESS,
IS ENTITLED TO SUCH TAX BENEFITS PURSUANT TO ARTICLE THIRTY OF THE
ECONOMIC DEVELOPMENT LAW, AND MAY UTILIZE AND, IF NECESSARY, DISCLOSE TO
THE COMMISSIONER OF ECONOMIC DEVELOPMENT, INFORMATION DERIVED FROM THE
TAX RETURNS OF SUCH EMPLOYEE, SUCH BUSINESS, OR RELATED PERSONS OF SUCH
BUSINESS AND WAGE REPORTING INFORMATION RELATING TO ANY EMPLOYEES OF
SUCH BUSINESS OR ITS RELATED PERSONS.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
PART H
Section 1. This Part enacts into law major components of legislation
relating to the excelsior jobs program and the empire state jobs
retention program. Each component is wholly contained within a Subpart
identified as Subpart A and Subpart B. The effective date for each
particular provision contained within such Subpart is set forth in the
last section of such Subpart. Any provision in any section contained
within a Subpart, including the effective date of the Subpart, 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 Subpart in which it is found. Section three
of this Part sets forth the general effective date of this Part.
SUBPART A
Section 1. Section 352 of the economic development law is amended by
adding a new subdivision 25 to read as follows:
25. "SEMICONDUCTOR SUPPLY CHAIN PROJECT" MEANS A PROJECT DEEMED BY THE
COMMISSIONER TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE PRIMARILY
AIMED AT SUPPORTING THE GROWTH OF THE SEMICONDUCTOR MANUFACTURING AND
RELATED EQUIPMENT AND MATERIAL SUPPLIER SECTOR. "SEMICONDUCTOR SUPPLY
CHAIN PROJECT" SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, SEMICONDUCTOR
DEVICE MANUFACTURING, PRODUCERS OF COMPONENT PARTS, DIRECT INPUT MATERI-
ALS AND EQUIPMENT NECESSARY FOR THE MANUFACTURE OF SEMICONDUCTOR CHIPS,
MACHINERY, EQUIPMENT, AND MATERIALS NECESSARY FOR THE OPERATIONAL EFFI-
CIENCY OF SEMICONDUCTOR MANUFACTURING FACILITIES, OTHER SUCH INPUTS
DIRECTLY SUPPORTIVE OF THE DOMESTIC PRODUCTION OF SEMICONDUCTOR CHIPS,
AND COMPANIES ENGAGED IN THE ASSEMBLY, TESTING, PACKAGING AND ADVANCED
PACKAGING SEMICONDUCTOR VALUE CHAIN. "SEMICONDUCTOR SUPPLY CHAIN
PROJECT" SHALL NOT INCLUDE A PROJECT PRIMARILY COMPOSED OF: (I) MACHIN-
ERY, EQUIPMENT, OR MATERIALS THAT ARE INPUTS TO MANUFACTURING GENERALLY,
BUT ARE NOT DIRECT INPUTS TO SEMICONDUCTOR MANUFACTURING IN SPECIFIC;
(II) THE PRODUCTION OF PRODUCTS OR DEVELOPMENT OF TECHNOLOGIES THAT
WOULD PRODUCE ONLY MARGINAL AND INCREMENTAL BENEFITS TO THE SEMICONDUC-
TOR MANUFACTURING SECTOR; (III) PROJECTS THAT WOULD OTHERWISE QUALIFY AS
A GREEN CHIPS PROJECT AS DEFINED IN SECTION TWENTY-FOUR OF THIS SECTION.
§ 2. Paragraphs (m) and (n) of subdivision 1 of section 353 of the
economic development law, as amended by chapter 494 of the laws of 2022,
are amended and a new paragraph (o) is added 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
S. 3009 37 A. 3009
(O) AS A COMPANY OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARA-
GRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND ENGAGING IN A SEMICONDUC-
TOR SUPPLY CHAIN PROJECT AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO
OF THIS ARTICLE.
§ 3. Subdivisions 1, 2 and 3 of section 355 of the economic develop-
ment law, as amended by chapter 494 of the laws of 2022, 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, 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, or a Green CHIPS
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. Provided, however, given
the transformational nature of Green CHIPS projects, only the first two
hundred thousand dollars of gross wages per job shall be eligible for
this credit. The maximum amount of gross wages per job for a Green CHIPS
project may be adjusted for inflation at an annual amount determined by
the commissioner in a manner substantially similar to the cost of living
adjustments calculated by the United States Social Security Adminis-
tration based on changes in consumer price indices or a rate of four
percent per year, whichever is higher. IN A SEMICONDUCTOR SUPPLY CHAIN
PROJECT, THE AMOUNT OF SUCH CREDIT PER JOB SHALL BE EQUAL TO THE PRODUCT
OF THE GROSS WAGES PAID AND UP TO SEVEN 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, the credit shall
be equal to two percent of the cost or other basis for federal income
tax purposes of the qualified investment. 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 project for child
care services or a Green CHIPS project, the credit shall be up to five
percent of the cost or other basis for federal income tax purposes of
the qualified investment in child care services or in the Green CHIPS
project as applicable. IN A SEMICONDUCTOR SUPPLY CHAIN PROJECT, THE
CREDIT SHALL BE UP TO THREE 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 development property. In addition, a taxpayer who or
which is qualified to claim the excelsior investment tax credit compo-
nent 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 enter-
prise has received a certificate of tax credit, provided that qualified
investments made on or after the issuance of the certificate of eligi-
bility but before the issuance of 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
S. 3009 38 A. 3009
incurred prior to the date the certificate of eligibility is issued are
not eligible to be included in the calculation 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, the excelsior
research and development tax credit shall not exceed six percent of the
qualified research and development expenditures attributable to activ-
ities conducted in New York state, or, if a green project or a Green
CHIPS 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, OR IF A SEMICON-
DUCTOR SUPPLY CHAIN PROJECT, THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX
CREDIT SHALL NOT EXCEED SEVEN PERCENT OF THE QUALIFIED 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. Section 359 of the economic development law, as amended by chap-
ter 494 of the laws of 2022, is amended to read as follows:
§ 359. Cap on tax credit. 1. Except with respect to tax credits issued
to Green CHIPS projects as articulated in subdivision four of this
section, the total amount of tax credits issued by the commissioner for
any taxable year may not exceed the limitations set forth in this subdi-
vision. Except with respect to tax credits issued to Green CHIPS
projects as articulated in subdivision four of this section, one-half of
any amount of tax credits not awarded for a particular taxable year may
be used by the commissioner to award tax credits in another taxable
year.
Credit components in the aggregate With respect to taxable
shall not exceed: years beginning in:
$ 50 million 2011
$ 100 million 2012
$ 150 million 2013
$ 200 million 2014
$ 250 million 2015
$ 183 million 2016
$ 183 million 2017
$ 183 million 2018
$ 183 million 2019
$ 183 million 2020
$ 183 million 2021
$ 133 million 2022
$ 83 million 2023
S. 3009 39 A. 3009
$ 36 million 2024
$ 200 million 2025
$ 200 million 2026
$ 200 million 2027
$ 200 million 2028
$ 200 million 2029
$ 200 MILLION 2030
$ 200 MILLION 2031
$ 200 MILLION 2032
$ 200 MILLION 2033
$ 200 MILLION 2034
$ 200 MILLION 2035
$ 200 MILLION 2036
$ 200 MILLION 2037
$ 200 MILLION 2038
$ 200 MILLION 2039
2. Twenty-five percent of tax credits shall be allocated to businesses
accepted into the program under subdivision four of section three
hundred fifty-three of this article and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
3. Provided, however, if by September thirtieth of a calendar year,
the department has not allocated the full amount of credits available in
that year to either: (i) businesses accepted into the program under
subdivision four of section three hundred fifty-three of this article or
(ii) businesses accepted into the program under subdivision three of
section three hundred fifty-three of this article, the commissioner may
allocate any remaining tax credits to businesses referenced in this
paragraph as needed; provided, however, that under no circumstances may
the aggregate statutory cap for all program years be exceeded. One
hundred percent of the unawarded amounts remaining at the end of two
thousand twenty-nine may be allocated in subsequent years, notwithstand-
ing the fifty percent limitation on any amounts of tax credits not
awarded in taxable years two thousand eleven through two thousand twen-
ty-nine. Provided, however, no tax credits may be allowed for taxable
years beginning on or after January first, two thousand [forty] FIFTY.
4. The total amount of tax credits issued by the commissioner for the
taxable years two thousand twenty-two to two thousand forty-one for
Green CHIPS projects shall not exceed five hundred million per year. One
hundred percent of any amount of tax credits not awarded for a partic-
ular taxable year may be used by the commissioner to award tax credits
in another taxable year. Notwithstanding the foregoing, Green CHIPS
projects may be allowed to claim credits for taxable years up to January
first, two thousand fifty.
§ 5. Article 22 of the economic development law is REPEALED.
§ 6. Paragraph (a) of subdivision 50 of section 210-B of the tax law,
as added by section 2 of part O of chapter 59 of the laws of 2015, is
amended to read as follows:
(a) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-NINE, A taxpayer that has been approved by the commissioner of
economic development to participate in the employee training incentive
program and has been issued a certificate of tax credit pursuant to
section four hundred forty-three of the economic development law shall
be allowed to claim a credit against the tax imposed by this article.
The credit shall equal fifty percent of a taxpayer's eligible training
S. 3009 40 A. 3009
costs, up to a credit of ten thousand dollars per employee completing
eligible training pursuant to paragraph (a) of subdivision three of
section four hundred forty-one of the economic development law. The
credit shall equal fifty percent of the stipend paid to an intern, up to
a credit of three thousand dollars per intern completing eligible train-
ing pursuant to paragraph (b) of subdivision three of section four
hundred forty-one of the economic development law. In no event shall a
taxpayer be allowed a credit greater than the amount of credit listed on
the certificate of tax credit issued by the commissioner of economic
development. The credit will be allowed in the taxable year in which the
eligible training is completed.
§ 7. Paragraph 1 of subsection (ddd) of section 606 of the tax law, as
added by section 3 of part O of chapter 59 of the laws of 2015, is
amended to read as follows:
(1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-NINE, A taxpayer that has been approved by the commissioner of
economic development to participate in the employee training incentive
program and has been issued a certificate of tax credit pursuant to
section four hundred forty-three of the economic development law shall
be allowed to claim a credit against the tax imposed by this article.
The credit shall equal fifty percent of a taxpayer's eligible training
costs, up to a credit of ten thousand dollars per employee completing
eligible training pursuant to paragraph (a) of subdivision three of
section four hundred forty-one of the economic development law. The
credit shall equal fifty percent of the stipend paid to an intern, up to
a credit of three thousand dollars per intern completing eligible train-
ing pursuant to paragraph (b) of subdivision three of section four
hundred forty-one of the economic development law. In no event shall a
taxpayer be allowed a credit greater than the amount listed on the
certificate of tax credit issued by the commissioner of economic devel-
opment. In the case of a taxpayer who is a partner in a partnership,
member of a limited liability company or shareholder in an S corpo-
ration, the taxpayer shall be allowed its pro rata share of the credit
earned by the partnership, limited liability company or S corporation.
The credit will be allowed in the taxable year in which the eligible
training is completed.
§ 8. The economic development law is amended by adding a new article
17-A to read as follows:
ARTICLE 17-A
SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM
SECTION 359-A. SHORT TITLE.
359-B. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
359-C. DEFINITIONS.
359-D. ELIGIBILITY CRITERIA.
359-E. APPLICATION AND APPROVAL PROCESS.
359-F. POWERS AND DUTIES OF THE COMMISSIONER.
359-G. SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT.
§ 359-A. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT ACT".
§ 359-B. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS
HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF
PUBLIC POLICY, TO CREATE COMPETITIVE FINANCIAL INCENTIVES TO ATTRACT
LARGE SCALE SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECTS TO NEW YORK
S. 3009 41 A. 3009
STATE, AND TO POSITION NEW YORK STATE TO BE AT THE CENTER OF CUTTING
EDGE INNOVATIONS IN THE SEMICONDUCTOR INDUSTRY.
§ 359-C. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. "CERTIFICATE OF ELIGIBILITY" MEANS THE DOCUMENT ISSUED BY THE
DEPARTMENT TO AN APPLICANT THAT HAS COMPLETED AN APPLICATION TO BE
ADMITTED INTO THE SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM
AND HAS BEEN ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF
A CERTIFICATE OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBIL-
ITY TO CLAIM THE TAX CREDIT.
2. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
IPANT BY THE DEPARTMENT, AFTER THE DEPARTMENT HAS VERIFIED THAT THE
PARTICIPANT HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE.
THE CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED
AND SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CREDIT UNDER THIS ARTICLE
THAT A PARTICIPANT MAY CLAIM AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH
SUCH CREDIT MAY BE CLAIMED.
3. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
(A) HAS COMPLETED AN APPLICATION PRESCRIBED BY THE DEPARTMENT TO BE
ADMITTED INTO THE PROGRAM;
(B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
(C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
THREE HUNDRED FIFTY-NINE-D AND SUBDIVISION TWO OF SECTION THREE HUNDRED
FIFTY-NINE-E OF THIS ARTICLE; AND
(D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
4. "PRELIMINARY SCHEDULE OF BENEFITS" MEANS THE AGGREGATE AMOUNT OF
THE TAX CREDIT THAT A PARTICIPANT IN THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT PROJECT PROGRAM MAY BE ELIGIBLE TO RECEIVE PURSUANT TO THIS
ARTICLE. THE SCHEDULE SHALL INDICATE THE ANNUAL AMOUNT OF THE CREDIT A
PARTICIPANT MAY CLAIM IN EACH OF ITS TEN YEARS OF ELIGIBILITY. THE
PRELIMINARY SCHEDULE OF BENEFITS SHALL BE ISSUED BY THE DEPARTMENT WHEN
THE DEPARTMENT APPROVES THE APPLICATION FOR ADMISSION INTO THE PROGRAM.
5. "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.
6. "SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT" MEANS A PROJECT
FOR A PHYSICAL RESEARCH AND DEVELOPMENT FACILITY, DEEMED BY THE COMMIS-
SIONER AS BEING PRIMARILY AIMED AT SUPPORTING RESEARCH AND DEVELOPMENT
WITHIN THE SEMICONDUCTOR MANUFACTURING AND RELATED EQUIPMENT AND MATERI-
AL SUPPLIER SECTOR. SUCH PROJECT SHALL INCUR AT LEAST ONE HUNDRED
MILLION DOLLARS IN QUALIFIED INVESTMENT IN NEW YORK STATE. SUCH PROJECT
MUST LEAD TO THE ESTABLISHMENT AND OPERATION OF A RESEARCH AND DEVELOP-
MENT FACILITY SEPARATE AND APART FROM NEW OR EXISTING SEMICONDUCTOR OR
SEMICONDUCTOR SUPPLY CHAIN MANUFACTURING FACILITIES.
§ 359-D. ELIGIBILITY CRITERIA. 1. TO BE A PARTICIPANT IN THE SEMICON-
DUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM, A BUSINESS ENTITY SHALL
OPERATE IN NEW YORK STATE AND BE UNDERTAKING A SEMICONDUCTOR RESEARCH
AND DEVELOPMENT PROJECT AS DEFINED IN SECTION THREE HUNDRED FIFTY-NINE-C
OF THIS ARTICLE.
S. 3009 42 A. 3009
2. A BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION
AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A BUSINESS ENTITY
MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE
BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BIND-
ING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY.
§ 359-E. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTERPRISE
MUST SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER.
2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE MUST:
(A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
BUSINESS ENTERPRISE'S TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY
INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE
FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(B) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS EMPLOYER
INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A
RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE;
(D) PROVIDE TO THE DEPARTMENT, UPON REQUEST, A PLAN OUTLINING THE
SCHEDULE FOR MEETING THE INVESTMENT REQUIREMENTS AS SET FORTH IN SUBDI-
VISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C OF THIS ARTICLE. SUCH
PLAN MUST INCLUDE THE AMOUNT AND DESCRIPTION OF PROJECTED QUALIFIED
INVESTMENTS FOR WHICH IT PLANS TO CLAIM THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT TAX CREDIT;
(E) AGREE TO ALLOW THE DEPARTMENT AND THE DEPARTMENT OF TAXATION AND
FINANCE TO SHARE AND EXCHANGE INFORMATION CONTAINED IN OR DERIVED FROM
THE APPLICATIONS FOR ADMISSION INTO THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT PROJECT PROGRAM AND THE CREDIT CLAIM FORMS SUBMITTED TO THE
DEPARTMENT OF TAXATION AND FINANCE. HOWEVER, ANY INFORMATION SHARED AS A
RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
(F) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
AND FEDERAL TAX LAWS.
3. AFTER REVIEWING A BUSINESS ENTERPRISE'S COMPLETED APPLICATION AND
DETERMINING THAT THE BUSINESS ENTERPRISE WILL MEET THE CONDITION SET
FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C OF THIS
ARTICLE, THE DEPARTMENT MAY ADMIT THE APPLICANT INTO THE PROGRAM AND
PROVIDE THE APPLICANT WITH A CERTIFICATE OF ELIGIBILITY AND A PRELIMI-
NARY SCHEDULE OF BENEFITS BY YEAR BASED ON THE APPLICANT'S PROJECTIONS
AS SET FORTH IN ITS APPLICATION. THIS PRELIMINARY SCHEDULE OF BENEFITS
DELINEATES THE MAXIMUM POSSIBLE BENEFITS AN APPLICANT MAY RECEIVE.
4. IN ORDER TO BECOME A PARTICIPANT IN THE PROGRAM, AN APPLICANT MUST
SUBMIT EVIDENCE THAT IT SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN
SECTION THREE HUNDRED FIFTY-NINE-D OF THIS ARTICLE AND SUBDIVISION TWO
OF THIS SECTION IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE. AFTER
REVIEWING SUCH EVIDENCE AND FINDING IT SUFFICIENT, THE DEPARTMENT SHALL
CERTIFY THE APPLICANT AS A PARTICIPANT AND ISSUE TO THAT PARTICIPANT A
CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO RECEIVE A CERTIFICATE
OF TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE PARTICIPANT MUST SUBMIT
TO THE DEPARTMENT A PERFORMANCE REPORT DEMONSTRATING THAT THE PARTIC-
IPANT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN THIS
ARTICLE.
5. A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST TAXA-
BLE YEAR THAT THE BUSINESS ENTERPRISE RECEIVES A CERTIFICATE OF TAX
CREDIT. A PARTICIPANT MAY CLAIM SUCH BENEFITS FOR THE NEXT NINE CONSEC-
S. 3009 43 A. 3009
UTIVE TAXABLE YEARS, PROVIDED THAT THE PARTICIPANT DEMONSTRATES TO THE
DEPARTMENT THAT IT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECI-
FIED IN SECTION THREE HUNDRED FIFTY-NINE-D OF THIS ARTICLE AND SUBDIVI-
SION TWO OF THIS SECTION IN EACH OF THOSE TAXABLE YEARS.
§ 359-F. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND
ELIGIBILITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES
OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN SECTION THREE HUNDRED FIFTY-NINE-G OF THIS ARTICLE WHICH,
NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPANTS. PARTICIPANTS MUST INCLUDE
THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE ANY TAX
BENEFITS UNDER THIS ARTICLE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C OF
THIS ARTICLE AND SECTION THREE HUNDRED FIFTY-NINE-D OF THIS ARTICLE.
§ 359-G. SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT. 1. A
PARTICIPANT IN THE SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT
PROGRAM SHALL BE ELIGIBLE TO CLAIM A CREDIT ON QUALIFIED INVESTMENTS IN
SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECTS IN NEW YORK STATE. THE
AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO FIFTEEN PERCENT OF THE COST OR
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT.
2. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CRED-
IT ISSUED BY THE COMMISSIONER SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE
FOR GREEN CHIPS TAX CREDITS AS PROVIDED UNDER SUBDIVISION FOUR OF
SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
§ 9. Section 210-B of the tax law is amended by adding a new subdivi-
sion 61 to read as follows:
61. SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT PROGRAM AND HAS BEEN ISSUED A CERTIFICATE OF TAX CREDIT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC DEVELOP-
MENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE. THE CREDIT SHALL EQUAL UP TO FIFTEEN PERCENT OF THE COST
OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVEST-
MENT AND SHALL BE ALLOWABLE IN EACH TAXABLE YEAR FOR WHICH THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT HAS ISSUED A CERTIFICATE OF TAX CREDIT,
FOR UP TO TEN CONSECUTIVE TAXABLE YEARS. IN NO EVENT SHALL A TAXPAYER BE
ALLOWED A CREDIT GREATER THAN THE AMOUNT OF CREDIT LISTED ON THE CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS THE BASIS
FOR THIS CREDIT SHALL BE THE BASIS FOR ANY OTHER TAX CREDIT PROVIDED BY
THIS CHAPTER.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY 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 CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT
S. 3009 44 A. 3009
TAXABLE YEAR WILL 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 WILL BE PAID THEREON.
(C) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC DEVELOP-
MENT LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER
THAN THE AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT,
OR IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER
OF A LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS
PRO RATA SHARE OF THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX
CREDIT.
(D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE SEVENTEEN-A OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C
OF THE ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBDIVISION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL
BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 10. Section 606 of the tax law is amended by adding a new subsection
(qqq) to read as follows:
(QQQ) SEMICONDUCTOR RESEARCH AND DEVELOPMENT TAX CREDIT. (1) ALLOWANCE
OF CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR RESEARCH AND
DEVELOPMENT TAX CREDIT PROGRAM AND HAS BEEN ISSUED A CERTIFICATE OF TAX
CREDIT PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC
DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL UP TO FIFTEEN PERCENT OF
THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED
INVESTMENT AND SHALL BE ALLOWABLE IN EACH TAXABLE YEAR FOR WHICH THE
COMMISSIONER OF ECONOMIC DEVELOPMENT HAS ISSUED A CERTIFICATE OF TAX
CREDIT, FOR UP TO TEN CONSECUTIVE TAXABLE YEARS. IN NO EVENT SHALL A
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT LISTED ON THE
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT. IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPO-
RATION, THE TAXPAYER SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION.
NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS THE BASIS
FOR THIS CREDIT SHALL BE THE BASIS FOR ANY OTHER TAX CREDIT PROVIDED BY
THIS CHAPTER.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE
TAXABLE 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, NO INTEREST WILL
BE PAID THEREON.
(3) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE-E OF THE ECONOMIC DEVELOP-
MENT LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER
THAN THE AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT,
S. 3009 45 A. 3009
OR IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER
OF A LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS
PRO RATA SHARE OF THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX
CREDIT.
(4) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE SEVENTEEN-A OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-NINE-C
OF ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBDIVISION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL
BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 11. The economic development law is amended by adding a new article
28 to read as follows:
ARTICLE 28
SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM
SECTION 501. DEFINITIONS.
502. ELIGIBILITY CRITERIA.
503. APPLICATION AND APPROVAL PROCESS.
504. POWERS AND DUTIES OF THE COMMISSIONER.
505. RECORDKEEPING REQUIREMENTS.
506. CAP ON TAX CREDIT.
§ 501. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "APPROVED PROVIDER" MEANS AN ENTITY APPROVED BY THE COMMISSIONER
THAT MAY PROVIDE ELIGIBLE TRAINING TO EMPLOYEES OF A BUSINESS ENTITY
PARTICIPATING IN THE SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING
INCENTIVE PROGRAM. SUCH CRITERIA SHALL ENSURE THAT ANY APPROVED PROVIDER
POSSESSES ADEQUATE CREDENTIALS TO PROVIDE THE TRAINING DESCRIBED IN AN
APPLICATION BY A BUSINESS ENTITY TO THE COMMISSIONER TO PARTICIPATE IN
THE SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM.
2. "ELIGIBLE TRAINING" MEANS TRAINING PROVIDED TO AN EMPLOYEE HIRED
WITHIN TWELVE MONTHS OF THE BUSINESS ENTITY APPLYING FOR THIS PROGRAM BY
THE BUSINESS ENTITY OR AN APPROVED PROVIDER THAT IS:
(A) TO UPGRADE, RETRAIN OR IMPROVE THE PRODUCTIVITY OF EMPLOYEES;
(B) DETERMINED BY THE COMMISSIONER TO SATISFY A BUSINESS NEED ON THE
PART OF A PARTICIPATING BUSINESS ENTITY; AND
(C) NOT DESIGNED TO TRAIN OR UPGRADE SKILLS AS REQUIRED BY A FEDERAL
OR STATE ENTITY.
3. "MANUFACTURING BUSINESS" MEANS A BUSINESS THAT IS ENGAGED IN THE
PROCESS OF WORKING RAW MATERIALS INTO PRODUCTS SUITABLE FOR USE OR WHICH
GIVES NEW SHAPES, NEW QUALITY OR NEW COMBINATIONS TO MATTER WHICH HAS
ALREADY GONE THROUGH SOME ARTIFICIAL PROCESS BY THE USE OF MACHINERY,
TOOLS, APPLIANCES, OR OTHER SIMILAR EQUIPMENT. "MANUFACTURING" DOES NOT
INCLUDE AN OPERATION THAT INVOLVES ONLY THE ASSEMBLY OF COMPONENTS,
PROVIDED, HOWEVER, THAT THE ASSEMBLY OF MOTOR VEHICLES OR OTHER HIGH
VALUE-ADDED PRODUCTS SHALL BE CONSIDERED MANUFACTURING.
4. "SEMICONDUCTOR MANUFACTURING BUSINESS" MEANS A BUSINESS DEEMED BY
THE COMMISSIONER TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE
PRIMARILY AIMED AT SUPPORTING THE GROWTH OF THE SEMICONDUCTOR MANUFAC-
TURING AND RELATED EQUIPMENT AND MATERIAL SUPPLIER SECTOR. THIS SHALL
INCLUDE, BUT NEED NOT BE LIMITED TO, SEMICONDUCTOR DEVICE MANUFACTURING,
PRODUCERS OF COMPONENT PARTS, DIRECT INPUT MATERIALS AND EQUIPMENT
NECESSARY FOR THE MANUFACTURE OF SEMICONDUCTOR CHIPS, MACHINERY, EQUIP-
MENT, AND MATERIALS NECESSARY FOR THE OPERATIONAL EFFICIENCY OF SEMICON-
S. 3009 46 A. 3009
DUCTOR MANUFACTURING FACILITIES, OTHER SUCH INPUTS DIRECTLY SUPPORTIVE
OF THE DOMESTIC PRODUCTION OF SEMICONDUCTOR CHIPS, AND COMPANIES ENGAGED
IN THE ASSEMBLY, TESTING, PACKAGING AND ADVANCED PACKAGING SEMICONDUCTOR
VALUE CHAIN. THE "SEMICONDUCTOR AND SUPPLY CHAIN" TIER SHALL NOT
INCLUDE A PROJECT PRIMARILY COMPOSED OF: (A) MACHINERY, EQUIPMENT, OR
MATERIALS THAT ARE INPUTS TO MANUFACTURING GENERALLY, BUT ARE NOT DIRECT
INPUTS TO SEMICONDUCTOR MANUFACTURING IN SPECIFIC; OR (B) THE PRODUCTION
OF PRODUCTS OR DEVELOPMENT OF TECHNOLOGIES THAT WOULD PRODUCE ONLY
MARGINAL AND INCREMENTAL BENEFITS TO THE SEMICONDUCTOR MANUFACTURING
SECTOR.
5. "WRAP AROUND SERVICES" MEANS TRANSPORTATION, CHILDCARE, CASE
MANAGEMENT AND OTHER SERVICES DESIGNED TO MAXIMIZE THE ECONOMIC IMPACT
OF WORKFORCE DEVELOPMENT TRAINING FOR PARTICIPANTS, AND TO PROVIDE THE
SUPPORT SERVICES NECESSARY TO ENSURE TRAINEES CAN ACCESS TRAINING.
§ 502. ELIGIBILITY CRITERIA. IN ORDER TO PARTICIPATE IN THE MANUFAC-
TURING WORKFORCE TRAINING INCENTIVE PROGRAM, A BUSINESS ENTITY MUST
SATISFY THE FOLLOWING CRITERIA:
1. THE BUSINESS ENTITY MUST OPERATE IN THE STATE AS A SEMICONDUCTOR
MANUFACTURING BUSINESS OR A MANUFACTURING BUSINESS AS DEFINED IN THIS
ARTICLE;
2. THE BUSINESS ENTITY MUST DEMONSTRATE THAT IT IS CONDUCTING ELIGIBLE
TRAINING OR OBTAINING ELIGIBLE TRAINING FROM AN APPROVED PROVIDER; AND
3. THE BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER
PROTECTION AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, THE
BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY
TAXES.
§ 503. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
SUBMIT A COMPLETED APPLICATION IN SUCH FORM AND WITH SUCH INFORMATION AS
PRESCRIBED BY THE COMMISSIONER.
2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTITY MUST:
(A) PROVIDE SUCH DOCUMENTATION AS THE COMMISSIONER MAY REQUIRE IN
ORDER FOR THE COMMISSIONER TO DETERMINE THAT THE BUSINESS ENTITY INTENDS
TO CONDUCT ELIGIBLE TRAINING OR PROCURE ELIGIBLE TRAINING FOR ITS
EMPLOYEES FROM AN APPROVED PROVIDER;
(B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(C) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION
SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(D) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; AND
(E) AGREE TO ALLOW THE DEPARTMENT AND THE DEPARTMENT OF TAXATION AND
FINANCE TO SHARE AND EXCHANGE INFORMATION CONTAINED IN OR DERIVED FROM
THE APPLICATIONS FOR ADMISSION INTO THE SEMICONDUCTOR MANUFACTURING
WORKFORCE TRAINING INCENTIVE PROGRAM AND THE CREDIT CLAIM FORMS SUBMIT-
TED TO THE DEPARTMENT OF TAXATION AND FINANCE. HOWEVER, ANY INFORMATION
SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
3. THE COMMISSIONER MAY APPROVE AN APPLICATION FROM A BUSINESS ENTITY
UPON DETERMINING THAT SUCH BUSINESS ENTITY MEETS THE ELIGIBILITY CRITE-
RIA ESTABLISHED IN SECTION FIVE HUNDRED TWO OF THIS ARTICLE. FOLLOWING
APPROVAL BY THE COMMISSIONER OF AN APPLICATION BY A BUSINESS ENTITY TO
PARTICIPATE IN THE SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCEN-
S. 3009 47 A. 3009
TIVE PROGRAM, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT
TO THE BUSINESS ENTITY UPON ITS DEMONSTRATING SUCCESSFUL COMPLETION OF
SUCH ELIGIBLE TRAINING TO THE SATISFACTION OF THE COMMISSIONER. FOR
ELIGIBLE TRAINING AS DEFINED BY SUBDIVISION TWO OF SECTION FIVE HUNDRED
ONE OF THIS ARTICLE THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO SEVENTY-
FIVE PERCENT OF WAGES, SALARIES OR OTHER COMPENSATION, TRAINING COSTS,
AND WRAP AROUND SERVICES, UP TO A CREDIT OF TWENTY-FIVE THOUSAND DOLLARS
PER EMPLOYEE RECEIVING ELIGIBLE TRAINING, UP TO ONE MILLION DOLLARS PER
ELIGIBLE NON-SEMICONDUCTOR MANUFACTURING BUSINESS AND UP TO FIVE MILLION
DOLLARS PER ELIGIBLE SEMICONDUCTOR MANUFACTURING BUSINESS. THE TAX CRED-
ITS SHALL BE CLAIMED BY THE QUALIFIED EMPLOYER AS SPECIFIED IN SUBDIVI-
SION SIXTY-TWO OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (RRR) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW.
§ 504. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
SHALL PROMULGATE REGULATIONS CONSISTENT WITH THE PURPOSES OF THIS ARTI-
CLE THAT, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE
ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. SUCH
REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ELIGIBILITY CRITERIA
FOR BUSINESS ENTITIES DESIRING TO PARTICIPATE IN THE SEMICONDUCTOR MANU-
FACTURING WORKFORCE TRAINING INCENTIVE PROGRAM, PROCEDURES FOR THE
RECEIPT AND EVALUATION OF APPLICATIONS FROM BUSINESS ENTITIES TO PARTIC-
IPATE IN THE PROGRAM, AND SUCH OTHER PROVISIONS AS THE COMMISSIONER
DEEMS TO BE APPROPRIATE IN ORDER TO IMPLEMENT THE PROVISIONS OF THIS
ARTICLE.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPATING BUSINESS ENTITIES. PARTIC-
IPANTS MAY BE REQUIRED BY THE COMMISSIONER OF TAXATION AND FINANCE TO
INCLUDE THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE
ANY TAX BENEFITS UNDER THIS ARTICLE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SECTION FIVE HUNDRED TWO OF THIS ARTICLE OR FOR MAKING A
MATERIAL MISREPRESENTATION WITH RESPECT TO ITS PARTICIPATION IN THE
PROGRAM.
§ 505. RECORDKEEPING REQUIREMENTS. EACH BUSINESS ENTITY PARTICIPATING
IN THE PROGRAM SHALL MAINTAIN ALL RELEVANT RECORDS FOR THE DURATION OF
ITS PROGRAM PARTICIPATION PLUS THREE YEARS.
§ 506. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER FOR ANY TAXABLE
YEAR MAY NOT EXCEED TWENTY MILLION DOLLARS, AND SHALL BE ALLOTTED FROM
THE FUNDS AVAILABLE FOR TAX CREDITS UNDER THE EXCELSIOR JOBS PROGRAM ACT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
§ 12. Section 210-B of the tax law is amended by adding a new subdivi-
sion 62 to read as follows:
62. SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING PROGRAM TAX CREDIT.
(A) ALLOWANCE OF TAX CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE
COMMISSIONER OF ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR
MANUFACTURING WORKFORCE TRAINING PROGRAM AND HAS BEEN ISSUED A CERTIF-
ICATE OF TAX CREDIT PURSUANT TO SECTION FIVE HUNDRED THREE OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL SEVENTY-FIVE PERCENT
OF WAGES, SALARIES OR OTHER COMPENSATION, TRAINING COSTS, AND WRAP
AROUND SERVICES, UP TO A CREDIT OF TWENTY-FIVE THOUSAND DOLLARS PER
EMPLOYEE RECEIVING ELIGIBLE TRAINING, UP TO ONE MILLION DOLLARS PER
S. 3009 48 A. 3009
ELIGIBLE NON-SEMICONDUCTOR MANUFACTURING BUSINESS AND UP TO FIVE MILLION
DOLLARS PER ELIGIBLE SEMICONDUCTOR MANUFACTURING BUSINESS PURSUANT TO
SUBDIVISION THREE OF SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOP-
MENT LAW. IN NO EVENT SHALL A TAXPAYER BE ALLOWED A CREDIT GREATER THAN
THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT ISSUED BY
THE COMMISSIONER OF ECONOMIC DEVELOPMENT. THE CREDIT SHALL BE ALLOWED IN
THE TAXABLE YEAR IN WHICH THE ELIGIBLE TRAINING IS COMPLETED. NO COST OR
OTHER EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS THE BASIS FOR
THIS CREDIT SHALL BE THE BASIS FOR ANY OTHER TAX CREDIT PROVIDED BY THIS
CHAPTER.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY 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 CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT
TAXABLE YEAR WILL 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 WILL BE PAID THEREON.
(C) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW.
IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT, OR IN THE
CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER OF A
LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS PRO
RATA SHARE OF THE AMOUNT OF CREDIT LISTED IN THE CERTIFICATE OF TAX
CREDIT.
(D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF THE ECONOMIC DEVELOPMENT UNDER
ARTICLE TWENTY-EIGHT OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION THREE OF SECTION FIVE HUNDRED THREE OF THE
ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS SUBDI-
VISION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE
ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 13. Section 606 of the tax law is amended by adding a new subsection
(rrr) to read as follows:
(RRR) SEMICONDUCTOR WORKFORCE TRAINING PROGRAM TAX CREDIT. (1) ALLOW-
ANCE OF TAX CREDIT. A TAXPAYER THAT HAS BEEN APPROVED BY THE COMMISSION-
ER OF ECONOMIC DEVELOPMENT TO PARTICIPATE IN THE SEMICONDUCTOR WORKFORCE
TRAINING PROGRAM AND HAS BEEN ISSUED A CERTIFICATE OF TAX CREDIT PURSU-
ANT TO SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW SHALL
BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE.
THE CREDIT SHALL EQUAL SEVENTY-FIVE PERCENT OF WAGES, SALARIES OR OTHER
COMPENSATION, TRAINING COSTS, AND WRAP AROUND SERVICES, UP TO A CREDIT
OF TWENTY-FIVE THOUSAND DOLLARS PER EMPLOYEE RECEIVING ELIGIBLE TRAIN-
ING, UP TO ONE MILLION DOLLARS PER ELIGIBLE NON-SEMICONDUCTOR MANUFAC-
TURING BUSINESS AND UP TO FIVE MILLION DOLLARS PER ELIGIBLE SEMICONDUC-
TOR MANUFACTURING BUSINESS PURSUANT TO SUBDIVISION THREE OF SECTION FIVE
HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW. IN NO EVENT SHALL A
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT LISTED ON THE
S. 3009 49 A. 3009
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT. IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPO-
RATION, THE TAXPAYER SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION.
THE CREDIT SHALL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE
TRAINING IS COMPLETED. NO COST OR EXPENSE PAID OR INCURRED BY THE
TAXPAYER THAT IS THE BASIS FOR THIS CREDIT SHALL BE THE BASIS FOR ANY
OTHER TAX CREDIT PROVIDED BY THIS CHAPTER.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE
TAXABLE 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, NO INTEREST WILL
BE PAID THEREON.
(3) REPORTING. THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS CERTIF-
ICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
PURSUANT TO SECTION FIVE HUNDRED THREE OF THE ECONOMIC DEVELOPMENT LAW.
IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF TAX CREDIT, OR IN THE
CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP, A MEMBER OF A
LIMITED LIABILITY COMPANY, OR SHAREHOLDER IN AN S CORPORATION, ITS PRO
RATA SHARE OF THE AMOUNT OF CREDIT LISTED ON THE CERTIFICATE OF TAX
CREDIT.
(4) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE TWENTY-EIGHT OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH
DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENT SET FORTH IN SUBDIVISION THREE OF SECTION FIVE HUNDRED THREE OF THE
ECONOMIC DEVELOPMENT LAW, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBSECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE
ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 14. This act shall take effect immediately and apply to taxable
years beginning on or after January 1, 2025; provided, however, that
section five of this act shall take effect December 31, 2028.
SUBPART B
Section 1. Section 421 of the economic development law, as added by
section 1 of part E of chapter 56 of the laws of 2011, is amended to
read as follows:
§ 421. Statement of legislative findings and declaration. It is hereby
found and declared that New York state needs, as a matter of public
policy, to create competitive financial incentives to retain [strategic]
businesses, INCLUDING SMALL BUSINESSES and jobs that are at risk of
leaving the state OR CLOSING OPERATIONS due to the impact on its busi-
ness operations of an event leading to an emergency declaration by the
governor. The empire state jobs retention program is created to support
the retention of the state's [most strategic] businesses, INCLUDING
SMALL BUSINESSES in the event of an emergency.
This legislation creates a jobs tax credit for each job of a [strate-
gic] business, INCLUDING A SMALL BUSINESS directly impacted by an emer-
gency and protects state taxpayers' dollars by ensuring that New York
provides tax benefits only to businesses that can demonstrate substan-
S. 3009 50 A. 3009
tial physical damage and economic harm resulting from an event leading
to an emergency declaration by the governor.
§ 2. Section 422 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 422. Definitions. For the purposes of this article:
1. ["Agriculture" means both agricultural production (establishments
performing the complete farm or ranch operation, such as farm owner-op-
erators, tenant farm operators, and sharecroppers) and agricultural
support (establishments that perform one or more activities associated
with farm operation, such as soil preparation, planting, harvesting, and
management, on a contract or fee basis).
2. "Back office operations" means a business function that may include
one or more of the following activities: customer service, information
technology and data processing, human resources, accounting and related
administrative functions.
3.] "Certificate of eligibility" means the document issued by the
department to an applicant that has completed an application to be
admitted into the empire state jobs retention program and has been
accepted into the program by the department. Possession of a certificate
of eligibility does not by itself guarantee the eligibility to claim the
tax credit.
[4.] 2. "Certificate of tax credit" means the document issued to a
participant by the department, after the department has verified that
the participant has met all applicable eligibility criteria in this
article. The certificate shall be issued annually if such criteria are
satisfied and shall specify the exact amount of each tax credit under
this article that a participant may claim, pursuant to section four
hundred twenty-five of this article, and shall specify the taxable year
in which such credit may be claimed.
[5. "Distribution center" means a large scale facility involving proc-
essing, repackaging and/or movement of finished or semi-finished goods
to retail locations across a multi-state area.
6. "Financial services data centers" or "financial services customer
back office operations" means operations that manage the data or
accounts of existing customers or provide product or service information
and support to customers of financial services companies, including
banks, other lenders, securities and commodities brokers and dealers,
investment banks, portfolio managers, trust offices, and insurance
companies.
7.] 3. "Impacted jobs" means jobs [existing] at a business enterprise
[at a location or locations within the county declared an emergency by
the governor on the day immediately preceding the day on which the event
leading to the emergency declaration by the governor occurred] EXISTING
THE DAY BEFORE AN EVENT LEADING TO AN EMERGENCY DECLARATION BY THE
GOVERNOR AT A LOCATION OR LOCATIONS WHICH DEMONSTRATE SUBSTANTIAL PHYS-
ICAL DAMAGE AND ECONOMIC HARM CAUSED BY THE EVENT FOR WHICH THE EMERGEN-
CY DECLARATION WAS MADE.
[8. "Manufacturing" means the process of working raw materials into
products suitable for use or which gives new shapes, new quality or new
combinations to matter which has already gone through some artificial
process by the use of machinery, tools, appliances, or other similar
equipment. "Manufacturing" does not include an operation that involves
only the assembly of components, provided, however, the assembly of
motor vehicles or other high value-added products shall be considered
manufacturing.
S. 3009 51 A. 3009
9.] 4. "Participant" means a business entity that:
(a) has completed an application prescribed by the department to be
admitted into the program;
(b) has been issued a certificate of eligibility by the department;
(c) has demonstrated that it meets the eligibility criteria in section
four hundred twenty-three and subdivision two of section four hundred
twenty-four of this article; and
(d) has been certified as a participant by the commissioner.
[10.] 5. "Preliminary schedule of benefits" means the maximum aggre-
gate amount of the tax credit that a participant in the empire state
jobs retention program is eligible to receive pursuant to this article.
The schedule shall indicate the annual amount of the credit a partic-
ipant may claim in [each of] its [ten years] SIX MONTHS of eligibility.
The preliminary schedule of benefits shall be issued by the department
when the department approves the application for admission into the
program. The commissioner may amend that schedule, provided that the
commissioner complies with the credit caps in section three hundred
fifty-nine of this chapter.
[11.] 6. "Related person" means a related person pursuant to subpara-
graph (c) of paragraph three of subsection (b) of section four hundred
sixty-five of the internal revenue code.
[12. "Scientific research and development" means conducting research
and experimental development in the physical, engineering, and life
sciences, including but not limited to agriculture, electronics, envi-
ronmental, biology, botany, biotechnology, computers, chemistry, food,
fisheries, forests, geology, health, mathematics, medicine, oceanogra-
phy, pharmacy, physics, veterinary, and other allied subjects. For the
purposes of this article, scientific research and development does not
include medical or veterinary laboratory testing facilities.
13. "Software development" means the creation of coded computer
instructions and includes new media as defined by the commissioner in
regulations.]
7. "BUSINESS ENTITY" MEANS A FOR PROFIT BUSINESS DULY AUTHORIZED TO DO
BUSINESS IN AND IN GOOD STANDING IN THE STATE OF NEW YORK.
§ 3. Section 423 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 423. Eligibility criteria. 1. [To be a participant in the empire
state jobs retention program, a business entity 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; or
(g) in a distribution center.
2. When determining whether an applicant is operating predominantly in
one of the industries listed in subdivision one of this section, the
commissioner will examine the nature of the business activity at the
location for the proposed project and will make eligibility determi-
nations based on such activity.
3.] For the purposes of this article, in order to participate in the
empire state jobs retention program[, a business entity operating in one
S. 3009 52 A. 3009
of the strategic industries listed in subdivision one of this section
(a) must be located in a county in which an emergency has been declared
by the governor] on or after [January] JUNE first, two thousand [eleven]
TWENTY-FIVE, [(b)] A BUSINESS ENTITY must demonstrate substantial phys-
ical damage and economic harm AT A LOCATION OR LOCATIONS WITHIN AN AREA
FOR WHICH THE GOVERNOR HAS ISSUED AN EMERGENCY DECLARATION AND resulting
from the event leading to the emergency declaration by the governor[,
and (c) must have had at least one hundred full-time equivalent jobs in
the county in which an emergency has been declared by the governor on
the day immediately preceding the day on which the event leading to the
emergency declaration by the governor occurred, and must retain or
exceed that number of jobs in New York state.
4. A not-for-profit business entity, a business entity whose primary
function is the provision of services including personal services, busi-
ness services, or the provision of utilities, a business entity engaged
predominantly in the retail or entertainment industry, or a company
engaged in the generation or distribution of electricity, the distrib-
ution of natural gas, or the production of steam associated with the
generation of electricity are not eligible to receive the tax credit
described in this article].
[5.] 2. A business entity must be in compliance with all worker
protection and environmental laws and regulations. In addition, a busi-
ness entity may not owe past due state taxes. In addition, a business
entity must not owe local property taxes for any year prior to the year
in which it applies to participate in the empire state jobs retention
program.
§ 4. Section 424 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 424. Application and approval process. 1. A business [enterprise]
ENTITY must submit a completed application as prescribed by the commis-
sioner. Such completed application must be submitted to the commissioner
within [(a)] one hundred eighty days of the declaration of an emergency
by the governor in the county in which the business enterprise is
located [or (b) one hundred eighty days of the enactment of this arti-
cle, if such date is later than the date specified in paragraph (a) of
this subdivision]; PROVIDED, HOWEVER, THAT THE ELIGIBILITY PERIOD FOR
THE CREDIT SHALL BEGIN UPON THE DATE OF DECLARATION OF AN EMERGENCY BY
THE GOVERNOR COVERING THE COUNTY IN WHICH THE BUSINESS ENTITY IS
LOCATED.
2. As part of such application, each business [enterprise] ENTITY
must:
(a) agree to allow the department of taxation and finance to share its
tax information with the department. However, any information shared as
a result of this agreement shall not be available for disclosure or
inspection under the state freedom of information law.
(b) agree to allow the department of labor to share its tax and
employer information with the department. However, any information
shared as a result of this agreement shall not be available for disclo-
sure or inspection under the state freedom of information law.
(c) allow the department and its agents access to any and all books
and records the department may require to monitor compliance.
(d) agree to be permanently disqualified for empire zone tax benefits
at any location or locations that qualify for empire state jobs
retention program benefits if admitted into the empire state jobs
retention program.
S. 3009 53 A. 3009
(e) provide the following information to the department upon request:
(i) a plan outlining the schedule for meeting the jobs retention
requirements as set forth in subdivision [three] ONE of section four
hundred twenty-three of this article. Such plan must include details on
jobs titles and expected salaries;
(ii) the prior three years of federal and state income or franchise
tax returns, unemployment insurance quarterly returns, real property tax
bills and audited financial statements; and
(iii) the employer identification or social security numbers for all
related persons to the applicant, including those of any members of a
limited liability company or partners in a partnership.
(f) provide a clear and detailed presentation of all related persons
to the applicant to assure the department that jobs are not being shift-
ed within the state.
(g) certify, under penalty of perjury, that it is in substantial
compliance with all environmental, worker protection, and local, state,
and federal tax laws.
3. After reviewing a business enterprise's completed application and
determining that the business enterprise will meet the conditions set
forth in subdivision [three] ONE of section four hundred twenty-three of
this article, the department may admit the applicant into the program
and provide the applicant with a certificate of eligibility and a
preliminary schedule of benefits by year based on the applicant's
projections as set forth in its application. This preliminary schedule
of benefits delineates the maximum possible benefits an applicant may
receive.
4. In order to become a participant in the program, an applicant must
submit evidence that it satisfies the eligibility criteria specified in
section four hundred twenty-three of this article and subdivision two of
this section in such form as the commissioner may prescribe. After
reviewing such evidence and finding it sufficient, the department shall
certify the applicant as a participant and issue to that participant a
certificate of tax credit [for one taxable year. To receive a certif-
icate of tax credit for subsequent taxable years, the participant must
submit to the department a performance report demonstrating that the
participant continues to satisfy the eligibility criteria specified in
section four hundred twenty-three of this article and subdivision two of
this section].
5. A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise receives a certificate of tax
credit or the first taxable year listed on its preliminary schedule of
benefits, whichever is later. [A participant may claim such benefits for
the next nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy the eligi-
bility criteria specified in section four hundred twenty-three of this
article and subdivision two of this section in each of those taxable
years.]
§ 5. Section 425 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 425. Empire state jobs retention program credit. 1. A participant in
the empire state jobs retention program shall be eligible to claim a
credit for the impacted jobs. [The] FOR A BUSINESS ENTITY THAT EMPLOYES
THREE TO FORTY-NINE EMPLOYEES, THE amount of such credit shall be equal
to the product of the gross wages paid for the impacted jobs and [6.85]
UP TO 15 percent. FOR A BUSINESS ENTITY THAT EMPLOYS FIFTY TO ONE
S. 3009 54 A. 3009
HUNDRED EMPLOYEES, THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO THE PROD-
UCT OF THE GROSS WAGES PAID FOR THE IMPACTED JOBS AND UP TO 7.5 PERCENT.
FOR A BUSINESS ENTITY THAT EMPLOYS GREATER THAN ONE HUNDRED EMPLOYEES,
THE AMOUNT OF SUCH CREDIT SHALL BE EQUAL TO THE PRODUCT OF THE GROSS
WAGES PAID FOR THE IMPACTED JOBS AND UP TO 3.75 PERCENT. AN ELIGIBLE
BUSINESS ENTITY MAY ONLY RECEIVE UP TO $500,000 IN TAX CREDITS PER EVENT
TRIGGERING AN EMERGENCY DECLARATION BY THE GOVERNOR.
2. The tax credit established in this section shall be refundable as
provided in the tax law. If a participant fails to satisfy the eligibil-
ity criteria [in any one year], it will lose the ability to claim credit
[for that year]. The event of such failure shall not extend the original
[ten-year] SIX-MONTH eligibility period.
3. The business enterprise shall be allowed to claim the credit as
prescribed in section thirty-six of the tax law[; provided, however, a
business enterprise shall not be allowed to claim the credit prior to
tax year two thousand twelve].
4. A participant may be eligible for benefits under this article as
well as article seventeen of this chapter, provided the participant can
only receive benefits pursuant to subdivision two of section three
hundred fifty-five of this chapter for costs in excess of costs recov-
ered by insurance.
§ 6. Section 426 of the economic development law, as added by section
1 of part E of chapter 56 of the laws of 2011, is amended to read as
follows:
§ 426. Powers and duties of the commissioner. 1. The commissioner
shall promulgate regulations establishing [an] THE TYPE OF application
process and THE eligibility criteria, that will be applied consistent
with the purposes of this article, so as not to exceed THIRTY MILLION
DOLLARS FROM the annual cap on tax credits set forth in section three
hundred fifty-nine of this chapter which, notwithstanding any provisions
to the contrary in the state administrative procedure act, may be
adopted on an emergency basis. Such regulations shall include, but not
be limited to, criteria for determining whether a business entity demon-
strates substantial physical damage and economic harm from the event
leading to an emergency declaration by the governor.
2. The commissioner shall, in consultation with the department of
taxation and finance, develop a certificate of tax credit that shall be
issued by the commissioner to participants. Participants may be required
by the commissioner of taxation and finance to include the certificate
of tax credit with their tax return to receive any tax benefits under
this article.
3. The commissioner shall solely determine the eligibility of any
applicant applying for entry into the program and shall remove any
participant from the program for failing to meet any of the requirements
set forth in subdivision two of section four hundred twenty-four of this
article, or for failing to meet the [job retention] requirements set
forth in [subdivision three of] section four hundred twenty-three of
this article[, or for failing to meet the requirements of subdivision
five of section four hundred twenty-three of this article].
§ 7. This act shall take effect immediately.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
S. 3009 55 A. 3009
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately, provided, however, that
the applicable effective date of Subparts A and B of this act shall be
as specifically set forth in the last section of such Subparts.
PART I
Section 1. Paragraphs 2 and 5 of subdivision (a) of section 24 of the
tax law, paragraph 2 as amended by section 1 and paragraph 5 as amended
by section 2 of part D of chapter 59 of the laws of 2023, are amended
and a new paragraph 6 is added to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of thirty
percent and the qualified production costs paid or incurred in the
production of a qualified film, provided that: (i) the qualified
production costs (excluding post production costs) paid or incurred
which are attributable to the use of tangible property or the perform-
ance of services at a qualified film production facility in the
production of such qualified film equal or exceed seventy-five percent
of the production costs (excluding post production costs) paid or
incurred which are attributable to the use of tangible property or the
performance of services at any film production facility within and with-
out the state in the production of such qualified film, and (ii) except
with respect to a qualified independent film production company or
pilot, at least ten percent of the total principal photography shooting
days spent in the production of such qualified film must be spent at a
qualified film production facility. However, if the qualified production
costs (excluding post production costs) which are attributable to the
use of tangible property or the performance of services at a qualified
film production facility in the production of such qualified film is
less than three million dollars, then the portion of the qualified
production costs attributable to the use of tangible property or the
performance of services in the production of such qualified film outside
of a qualified film production facility shall be allowed only if the
shooting days spent in New York outside of a film production facility in
the production of such qualified film equal or exceed seventy-five
percent of the total shooting days spent within and without New York
outside of a film production facility in the production of such quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed. However, in the case of
a qualified film that receives funds from additional pool 2, no credit
shall be claimed before the later of (1) the taxable year the production
of the qualified film is complete, or (2) the taxable year that includes
the last day of the allocation year for which the film has been allo-
cated credit by the department of economic development. If the amount of
the credit is at least one million dollars but less than five million
dollars, the credit shall be claimed over a two year period beginning in
the first taxable year in which the credit may be claimed and in the
next succeeding taxable year, with one-half of the amount of credit
allowed being claimed in each year. If the amount of the credit is at
least five million dollars, the credit shall be claimed over a three
year period beginning in the first taxable year in which the credit may
be claimed and in the next two succeeding taxable years, with one-third
of the amount of the credit allowed being claimed in each year.
S. 3009 56 A. 3009
PROVIDED, HOWEVER, IN THE CASE OF A QUALIFIED FILM FOR WHICH THE CREDIT
APPLICATION WAS RECEIVED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWEN-
TY-FIVE, THE CREDIT SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES
THE LAST DAY OF THE ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLO-
CATED A CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
(5) For the period two thousand fifteen through two thousand [thirty-
four] THIRTY-SIX, in addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a credit
equal to (i) the product (or pro rata share of the product, in the case
of a member of a partnership) of ten percent and the wages, salaries or
other compensation constituting qualified production costs as defined in
paragraph two of subdivision (b) of this section, paid to individuals
directly employed by a qualified film production company or a qualified
independent film production company for services performed by those
individuals in one of the counties specified in this paragraph in
connection with a qualified film with a minimum budget of five hundred
thousand dollars, and (ii) the product (or pro rata share of the prod-
uct, in the case of a member of a partnership) of ten percent and the
qualified production costs (excluding wages, salaries or other compen-
sation) paid or incurred in the production of a qualified film where the
property constituting such qualified production costs was used, and the
services constituting such qualified production costs were performed in
any of the counties specified in this paragraph in connection with a
qualified film with a minimum budget of five hundred thousand dollars
where the majority of principal photography shooting days in the
production of such film were shot in any of the counties specified in
this paragraph. Provided, however, that the aggregate total eligible
qualified production costs constituting wages, salaries or other compen-
sation, for writers, directors, composers, producers, and performers
shall not exceed forty percent of the aggregate sum total of all other
qualified production costs. For purposes of the credit, the services
must be performed and the property must be used in one or more of the
following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chau-
tauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutch-
ess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer,
Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara,
Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam,
Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St.
Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washing-
ton, Wayne, Wyoming, or Yates.
(6) PRODUCTION PLUS PROGRAM. (I) A TAXPAYER WHO IS A QUALIFIED INDE-
PENDENT FILM PRODUCTION COMPANY OR A QUALIFIED FILM PRODUCTION COMPANY
ENGAGING IN THE PRODUCTION OF A QUALIFIED FILM THAT UNDERTAKES MULTIPLE
PRODUCTIONS IN NEW YORK STATE MAY BE ELIGIBLE FOR A TAX CREDIT IN ADDI-
TION TO THE CREDIT PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION.
PRODUCTION COMPANIES THAT SUBMIT AT LEAST TWO INITIAL APPLICATIONS TO
THE EMPIRE STATE FILM PRODUCTION TAX CREDIT PROGRAM AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-FIVE THE SUM OF WHICH TOTAL AT LEAST ONE HUNDRED
MILLION DOLLARS IN QUALIFIED PRODUCTION COSTS IN NEW YORK STATE MAY BE
ELIGIBLE TO RECEIVE AN ADDITIONAL TAX CREDIT EQUAL TO THE PRODUCT OF TEN
PERCENT AND THE QUALIFIED PRODUCTION COSTS INCURRED ON ALL SUBSEQUENT
FILMS OR TELEVISION SERIES APPLIED FOR.
(II) A TAXPAYER WHO IS A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY
ENGAGING IN THE PRODUCTION OF A FEATURE LENGTH FILM, TELEVISION FILM OR
TELEVISION SERIES AS DEFINED IN THE REGULATIONS PROMULGATED FOR THIS
PROGRAM THAT UNDERTAKES MULTIPLE PRODUCTIONS IN NEW YORK STATE MAY BE
S. 3009 57 A. 3009
ELIGIBLE FOR A TAX CREDIT IN ADDITION TO THE CREDIT PURSUANT TO PARA-
GRAPH TWO OF THIS SUBDIVISION. PRODUCTION COMPANIES THAT SUBMIT AT LEAST
TWO APPLICATIONS TO THE EMPIRE STATE FILM PRODUCTION TAX CREDIT PROGRAM
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE THE SUM OF WHICH TOTAL AT
LEAST TWENTY MILLION IN QUALIFIED PRODUCTION COSTS IN NEW YORK STATE MAY
RECEIVE AN ADDITIONAL TAX CREDIT EQUAL TO THE PRODUCT OF FIVE PERCENT
AND THE QUALIFIED PRODUCTION COSTS INCURRED ON ALL SUBSEQUENT FILMS OR
SERIES APPLIED FOR.
(III) INITIAL APPLICATIONS FOR FEATURE LENGTH FILMS AND NEW TELEVISION
SERIES SUBMITTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-EIGHT
SHALL NOT BE ELIGIBLE FOR THE PROGRAM PURSUANT TO THIS PARAGRAPH;
PROVIDED, HOWEVER, A TELEVISION SERIES THAT ENTERS THE PROGRAM PURSUANT
TO THIS PARAGRAPH BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-NINE SHALL
CONTINUE TO BE ELIGIBLE.
§ 2. Paragraphs 1, 2 and 7 of subdivision (b) of section 24 of the
tax law, paragraph 1 as amended by section 2-a and paragraph 2 as
amended by section 3 of part D of chapter 59 of the laws of 2023, para-
graph 7 as added by section 9 of part Q of chapter 57 of the laws of
2010, are amended and a new paragraph 11 is added to read as follows:
(1) "Qualified production costs" means production costs only to the
extent such costs are attributable to the use of tangible property or
the performance of services within the state directly and predominantly
in the production (including pre-production and post production) of a
qualified film. In the case of an eligible relocated television series,
the term "qualified production costs" shall include, in the first season
that the eligible relocated television series is produced in New York
after relocation, qualified relocation costs. Provided, however, that
the aggregate total eligible qualified production costs for producers,
writers, directors, performers (other than background actors with no
scripted lines), and composers shall not exceed forty percent of the
aggregate sum total of all other qualified production costs. PROVIDED,
FURTHER, THAT QUALIFIED PRODUCTION COSTS SHALL NOT INCLUDE ANY PAYMENTS
TO A LOAN-OUT COMPANY FOR THE PROVISION OF SPECIFIC INDIVIDUAL PERSON-
NEL, SUCH AS ARTISTS, CREW, ACTORS, PRODUCERS, OR DIRECTORS, FOR THE
PERFORMANCE OF SERVICES USED DIRECTLY IN A PRODUCTION UNLESS THE TAXPAY-
ER HAS SATISFIED THE WITHHOLDING REQUIREMENT PURSUANT TO SUBDIVISION (G)
OF THIS SECTION.
(2) "Production costs" means any costs for tangible property used and
services performed directly and predominantly in the production (includ-
ing pre-production and post production) of a qualified film.
"Production costs" shall not include [(i)] costs for a story, script or
scenario to be used for a qualified film [and (ii) wages or salaries or
other compensation for writers, directors, composers, and performers
(other than background actors with no scripted lines) to the extent
those wages or salaries or other compensation exceed five hundred thou-
sand dollars per individual]. "Production costs" generally include THE
WAGES OR SALARIES OR OTHER COMPENSATION FOR WRITERS, DIRECTORS, COMPOS-
ERS AND PERFORMERS, technical and crew production costs, such as expend-
itures for film production facilities, or any part thereof, props, make-
up, wardrobe, film processing, camera, sound recording, set
construction, lighting, shooting, editing and meals, and shall include
the wages, salaries or other compensation of no more than two producers
per qualified film[, not to exceed five hundred thousand dollars per
producer, where only one of whom is the principal individual responsible
for overseeing the creative and managerial process of production of the
qualified film and only one of whom is the principal individual respon-
S. 3009 58 A. 3009
sible for the day-to-day operational management of production of the
qualified film; provided, however, that such producers are not compen-
sated for any other position on the qualified film by a qualified film
production company or a qualified independent film production company
for services performed].
(7) "Qualified independent film production company" is a corporation,
partnership, limited partnership, or other entity or individual, that or
who (i) is principally engaged in the production of a qualified film
[with a maximum budget of fifteen million dollars], [and] (ii) [controls
the qualified film during production] IS NOT PUBLICLY TRADED, and (iii)
[either is not a publicly traded entity, or no more than five percent of
the beneficial ownership of which is owned, directly or indirectly, by a
publicly traded entity]IS NOT MAJORITY OWNED, FIFTY-ONE PERCENT OR MORE,
BY A COMPANY PUBLICLY TRADED ON A UNITED STATES STOCK EXCHANGE.
(11) "LOAN-OUT COMPANY" MEANS A PERSONAL SERVICE CORPORATION OR OTHER
ENTITY WITH WHICH A QUALIFIED FILM PRODUCTION COMPANY OR A QUALIFIED
INDEPENDENT FILM PRODUCTION COMPANY CONTRACTS FOR THE PROVISION OF SPEC-
IFIED INDIVIDUAL PERSONNEL, SUCH AS ARTISTS, CREW, ACTORS, PRODUCERS, OR
DIRECTORS FOR THE PERFORMANCE OF SERVICES USED DIRECTLY IN A PRODUCTION.
"LOAN-OUT COMPANY" SHALL NOT INCLUDE ENTITIES THAT CONTRACTED WITH A
QUALIFIED FILM PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT FILM
PRODUCTION COMPANY TO PROVIDE GOODS OR ANCILLARY CONTRACTOR SERVICES
SUCH AS CATERING, CONSTRUCTION, TRAILERS, EQUIPMENT, OR TRANSPORTATION.
§ 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 2 of chapter 606 of the laws of 2023, is amended to
read as follows:
(4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand twenty-three and seven hundred million dollars in
each year starting in two thousand twenty-four through two thousand
[thirty-four] THIRTY-SIX, provided however, seven million dollars of the
annual allocation shall be available for the empire state film post
production credit pursuant to section thirty-one of this article in two
thousand thirteen and two thousand fourteen, twenty-five million dollars
of the annual allocation shall be available for the empire state film
post production credit pursuant to section thirty-one of this article in
each year starting in two thousand fifteen through two thousand twenty-
three, and forty-five million dollars of the annual allocation shall be
available for the empire state film post production credit pursuant to
section thirty-one of this article in each year starting in two thousand
twenty-four through two thousand [thirty-four] THIRTY-SIX. Provided
further, five million dollars of the annual allocation shall be made
available for the television writers' and directors' fees and salaries
credit pursuant to section twenty-four-b of this article in each year
starting in two thousand twenty through two thousand [thirty-four] THIR-
TY-SIX. This amount shall be allocated by the department of economic
development among taxpayers in accordance with subdivision (a) of this
section. If the commissioner of economic development determines that the
aggregate amount of tax credits available from additional pool 2 for the
empire state film production tax credit have been previously allocated,
and determines that the pending applications from eligible applicants
for the empire state film post production tax credit pursuant to section
thirty-one of this article is insufficient to utilize the balance of
unallocated empire state film post production tax credits from such
pool, the remainder, after such pending applications are considered,
S. 3009 59 A. 3009
shall be made available for allocation in the empire state film tax
credit pursuant to this section, subdivision twenty of section two
hundred ten-B and subsection (gg) of section six hundred six of this
chapter. Also, if the commissioner of economic development determines
that the aggregate amount of tax credits available from additional pool
2 for the empire state film post production tax credit have been previ-
ously allocated, and determines that the pending applications from
eligible applicants for the empire state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part of
the remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post production
credit pursuant to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six hundred six of this
chapter. The department of economic development must notify taxpayers of
their allocation year and include the allocation year on the certificate
of tax credit. Taxpayers eligible to claim a credit must report the
allocation year directly on their empire state film production credit
tax form for each year a credit is claimed and include a copy of the
certificate with their tax return. In the case of a qualified film that
receives funds from additional pool 2 where the taxpayer filed an
initial application before April first, two thousand twenty-three AND
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, no empire state film
production credit shall be claimed before the later of (1) the taxable
year the production of the qualified film is complete, or (2) the taxa-
ble year immediately following the allocation year for which the film
has been allocated credit by the department of economic development. In
the case of a qualified film that receives funds from additional pool 2
where the taxpayer filed an initial application on or after April first,
two thousand twenty-three AND BEFORE JANUARY FIRST, TWO THOUSAND TWEN-
TY-FIVE, no empire state film production credit shall be claimed before
the later of (1) the taxable year the production of the qualified film
is complete, or (2) the taxable year that includes the last day of the
allocation year for which the film has been allocated credit by the
department of economic development. IN THE CASE OF A QUALIFIED FILM FOR
WHICH THE TAXPAYER FILED AN INITIAL APPLICATION ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-FIVE, THE CREDIT SHALL BE CLAIMED IN THE
TAXABLE YEAR THAT INCLUDES THE LAST DAY OF THE ALLOCATION YEAR FOR WHICH
THE PRODUCTION OF SUCH QUALIFIED FILM HAS BEEN ALLOCATED A CREDIT BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT.
§ 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 3 of chapter 606 of the laws of 2023, is amended to
read as follows:
(4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand twenty-three and seven hundred million dollars each
year starting in two thousand twenty-four through two thousand [thirty-
four] THIRTY-SIX, provided however, seven million dollars of the annual
allocation shall be available for the empire state film post production
credit pursuant to section thirty-one of this article in two thousand
thirteen and two thousand fourteen, twenty-five million dollars of the
annual allocation shall be available for the empire state film post
production credit pursuant to section thirty-one of this article in each
year starting in two thousand fifteen through two thousand twenty-three,
and forty-five million dollars of the annual allocation shall be avail-
S. 3009 60 A. 3009
able for the empire state film post production credit pursuant to
section thirty-one of this article in each year starting in two thousand
twenty-four through two thousand [thirty-four] THIRTY-SIX. This amount
shall be allocated by the department of economic development among
taxpayers in accordance with subdivision (a) of this section. If the
commissioner of economic development determines that the aggregate
amount of tax credits available from additional pool 2 for the empire
state film production tax credit have been previously allocated, and
determines that the pending applications from eligible applicants for
the empire state film post production tax credit pursuant to section
thirty-one of this article is insufficient to utilize the balance of
unallocated empire state film post production tax credits from such
pool, the remainder, after such pending applications are considered,
shall be made available for allocation in the empire state film tax
credit pursuant to this section, subdivision twenty of section two
hundred ten-B and subsection (gg) of section six hundred six of this
chapter. Also, if the commissioner of economic development determines
that the aggregate amount of tax credits available from additional pool
2 for the empire state film post production tax credit have been previ-
ously allocated, and determines that the pending applications from
eligible applicants for the empire state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part of
the remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post production
credit pursuant to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six hundred six of this
chapter. The department of economic development must notify taxpayers of
their allocation year and include the allocation year on the certificate
of tax credit. Taxpayers eligible to claim a credit must report the
allocation year directly on their empire state film production credit
tax form for each year a credit is claimed and include a copy of the
certificate with their tax return. In the case of a qualified film that
receives funds from additional pool 2 where the taxpayer filed an
initial application before April first, two thousand twenty-three, no
empire state film production credit shall be claimed before the later of
(1) the taxable year the production of the qualified film is complete,
or (2) the taxable year immediately following the allocation year for
which the film has been allocated credit by the department of economic
development. In the case of a qualified film that receives funds from
additional pool 2 where the taxpayer filed an initial application on or
after April first, two thousand twenty-three AND BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-FIVE, no empire state film production credit shall
be claimed before the later of (1) the taxable year the production of
the qualified film is complete, or (2) the taxable year that includes
the last day of the allocation year for which the film has been allo-
cated credit by the department of economic development. PROVIDED, HOWEV-
ER, IN THE CASE OF A QUALIFIED FILM FOR WHICH THE CREDIT APPLICATION WAS
RECEIVED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE CREDIT
SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES THE LAST DAY OF THE
ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLOCATED A CREDIT BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT.
§ 5. Section 24 of the tax law is amended by adding two new subdivi-
sions (g) and (h) to read as follows:
(G) A TAXPAYER SHALL WITHHOLD FROM EACH PAYMENT TO A LOAN-OUT COMPANY
AN AMOUNT EQUAL TO SIX AND EIGHTY-FIVE ONE HUNDREDTHS (6.85) PERCENT OF
S. 3009 61 A. 3009
THE PAYMENT OTHERWISE DUE. THE AMOUNTS WITHHELD SHALL BE DEEMED TO BE
WITHHOLDING PURSUANT TO PART FIVE OF ARTICLE TWENTY-TWO OF THIS CHAPTER,
AND THE TAXPAYER SHALL BE DEEMED TO HAVE THE RIGHTS, DUTIES, AND RESPON-
SIBILITIES PURSUANT TO SUCH PART OF AN EMPLOYER OF THE INDIVIDUALS TO
WHOM THE LOAN-OUT COMPANY MADE PAYMENTS FOR SERVICES PERFORMED IN THE
STATE. THE AMOUNTS SO WITHHELD SHALL BE ALLOCATED TO THE LOAN-OUT COMPA-
NY'S EMPLOYEES IN PROPORTION TO PAYMENTS MADE TO THE LOAN-OUT COMPANY'S
EMPLOYEES FOR SERVICES PERFORMED IN THE STATE. NOTWITHSTANDING ANY
OTHER PROVISIONS OF THIS CHAPTER, LOAN-OUT COMPANY NONRESIDENT EMPLOYEES
PERFORMING SERVICES IN THE STATE SHALL BE CONSIDERED TAXABLE NONRESI-
DENTS AND THE LOAN-OUT COMPANY SHALL BE SUBJECT TO INCOME TAXATION IN
THE TAXABLE YEAR IN WHICH THE LOAN-OUT COMPANY'S EMPLOYEES PERFORM
SERVICES IN THE STATE. SUCH WITHHOLDING LIABILITY SHALL BE SUBJECT TO
PENALTIES AND INTEREST IN THE SAME MANNER AS THE EMPLOYEE WITHHOLDING
TAXES IMPOSED BY PART FIVE OF ARTICLE TWENTY-TWO OF THIS CHAPTER.
(H) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SECTION IS REVOKED
BY SUCH DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY
REQUIREMENTS OF THIS SECTION, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE
ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 6. Paragraphs 3, 5 and 6 of subdivision (a) of section 31 of the
tax law, paragraph 3 as amended by section 5 and paragraph 5 as added by
section 5-a of part B of chapter 59 of the laws of 2013, and paragraph 6
as amended by section 9 of part D of chapter 59 of the laws of 2023, are
amended to read as follows:
(3) (i) A taxpayer shall not be eligible for the credit established by
this section for qualified post production costs, excluding the costs
for visual effects and animation, unless the qualified post production
costs, excluding the costs for visual effects and animation, at a quali-
fied post production facility meet or exceed ONE MILLION DOLLARS seven-
ty-five percent of the total post production costs, excluding the costs
for visual effects and animation, paid or incurred in the post
production of the qualified film at any post production facility. (ii) A
taxpayer shall not be eligible for the credit established by this
section for qualified post production costs which are costs for visual
effects or animation unless the qualified post production costs for
visual effects or animation at a qualified post production facility meet
or exceed [three million] FIVE HUNDRED THOUSAND dollars or [twenty] TEN
percent of the total post production costs for visual effects or
animation paid or incurred in the post production of a qualified film at
any post production facility, whichever is less. (iii) A taxpayer may
claim a credit for qualified post production costs excluding the costs
for visual effects and animation, and for qualified post production
costs of visual effects and animation, provided that the criteria in
subparagraphs (i) and (ii) of this paragraph are both satisfied. The
credit shall be allowed for the taxable year in which the production of
such qualified film is completed.
(5) If the amount of the credit is at least one million dollars but
less than five million dollars, the credit shall be claimed over a two
year period beginning in the first taxable year in which the credit may
be claimed and in the next succeeding taxable year, with one-half of the
amount of credit allowed being claimed in each year. If the amount of
the credit is at least five million dollars, the credit shall be claimed
over a three year period beginning in the first taxable year in which
S. 3009 62 A. 3009
the credit may be claimed and in the next two succeeding taxable years,
with one-third of the amount of the credit allowed being claimed in each
year. PROVIDED, HOWEVER, IN THE CASE OF A QUALIFIED FILM FOR WHICH THE
TAXPAYER FILED AN INITIAL APPLICATION ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-FIVE, THE CREDIT SHALL BE CLAIMED FOR THE TAXABLE YEAR
IN WHICH SUCH QUALIFIED FILM IS COMPLETED.
(6) For the period two thousand fifteen through two thousand [thirty-
four] THIRTY-SIX, in addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries paid to individuals directly employed (excluding those employed as
writers, directors, composers, producers and performers, other than
background actors with no scripted lines) for services performed by
those individuals in one of the counties specified in this paragraph in
connection with the post production work on a qualified film with a
minimum budget of five hundred thousand dollars at a qualified post
production facility in one of the counties listed in this paragraph. For
purposes of this additional credit, the services must be performed in
one or more of the following counties: Albany, Allegany, Broome, Catta-
raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort-
land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee,
Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison,
Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans,
Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie,
Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins,
Ulster, Warren, Washington, Wayne, Wyoming, or Yates.
§ 7. Paragraph 2 of subdivision b of section 31 of the tax law, as
added by section 12 of part Q of chapter 57 of the laws of 2010, is
amended and a new paragraph 5 is added to read as follows:
(2) "[Post] QUALIFIED production costs" means production of original
content for a qualified film employing traditional, emerging and new
workflow techniques used in post-production for picture, sound and music
editorial, rerecording and mixing, visual effects, graphic design,
[original scoring,] animation, and musical composition IN THE STATE; but
shall not include the editing of previously produced content for a qual-
ified film. PROVIDED, HOWEVER, THAT THE AGGREGATE TOTAL ELIGIBLE POST
PRODUCTION COSTS FOR THE WAGES, SALARIES OR OTHER COMPENSATION OF WRIT-
ERS, DIRECTORS, PERFORMERS (OTHER THAN BACKGROUND ACTORS WITH NO SCRIPT-
ED LINES), COMPOSERS, AND NO MORE THAN TWO PRODUCERS, SHALL NOT EXCEED
FORTY PERCENT OF THE AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED POST
PRODUCTION COSTS. PROVIDED, FURTHER, THAT QUALIFIED POST PRODUCTION
COSTS SHALL NOT INCLUDE ANY PAYMENTS TO A LOAN-OUT COMPANY FOR THE
PROVISION OF SPECIFIC INDIVIDUAL PERSONNEL, SUCH AS ARTISTS, CREW,
ACTORS, PRODUCERS, OR DIRECTORS, FOR THE PERFORMANCE OF SERVICES USED
DIRECTLY IN A PRODUCTION UNLESS THE TAXPAYER HAS SATISFIED THE WITHHOLD-
ING REQUIREMENT PURSUANT TO SUBDIVISION (F) OF THIS SECTION.
(5) "LOAN-OUT COMPANY" MEANS A PERSONAL SERVICE CORPORATION OR OTHER
ENTITY WITH WHICH A QUALIFIED FILM PRODUCTION COMPANY OR A QUALIFIED
INDEPENDENT FILM PRODUCTION COMPANY CONTRACTS FOR THE PROVISION OF SPEC-
IFIED INDIVIDUAL PERSONNEL, SUCH AS ARTISTS, CREW, ACTORS, PRODUCERS, OR
DIRECTORS FOR THE PERFORMANCE OF SERVICES USED DIRECTLY IN A PRODUCTION.
"LOAN-OUT COMPANY" SHALL NOT INCLUDE ENTITIES THAT CONTRACTED WITH A
QUALIFIED FILM PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT FILM
PRODUCTION COMPANY TO PROVIDE GOODS OR ANCILLARY CONTRACTOR SERVICES
SUCH AS CATERING, CONSTRUCTION, TRAILERS, EQUIPMENT, OR TRANSPORTATION.
S. 3009 63 A. 3009
§ 8. Section 31 of the tax law is amended by adding two new subdivi-
sions (f) and (g) to read as follows:
(F) A TAXPAYER SHALL WITHHOLD FROM EACH PAYMENT TO A LOAN-OUT COMPANY
AN AMOUNT EQUAL TO 6.85 PERCENT OF THE PAYMENT OTHERWISE DUE. THE
AMOUNTS WITHHELD SHALL BE DEEMED TO BE WITHHOLDING PURSUANT TO PART FIVE
OF ARTICLE TWENTY-TWO OF THIS CHAPTER, AND THE TAXPAYER SHALL BE DEEMED
TO HAVE THE RIGHTS, DUTIES, AND RESPONSIBILITIES PURSUANT TO SUCH PART
OF AN EMPLOYER OF THE INDIVIDUALS TO WHOM THE LOAN-OUT COMPANY MADE
PAYMENTS FOR SERVICES PERFORMED IN THE STATE. THE AMOUNTS SO WITHHELD
SHALL BE ALLOCATED TO THE LOAN-OUT COMPANY'S EMPLOYEES IN PROPORTION TO
PAYMENTS MADE TO THE LOAN-OUT COMPANY'S EMPLOYEES FOR SERVICES PERFORMED
IN THE STATE. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,
LOAN-OUT COMPANY NONRESIDENT EMPLOYEES PERFORMING SERVICES IN THE STATE
SHALL BE CONSIDERED TAXABLE NONRESIDENTS AND THE LOAN-OUT COMPANY SHALL
BE SUBJECT TO INCOME TAXATION IN THE TAXABLE YEAR IN WHICH THE LOAN-OUT
COMPANY'S EMPLOYEES PERFORM SERVICES IN THE STATE. SUCH WITHHOLDING
LIABILITY SHALL BE SUBJECT TO PENALTIES AND INTEREST IN THE SAME MANNER
AS THE EMPLOYEE WITHHOLDING TAXES IMPOSED BY PART FIVE OF ARTICLE TWEN-
TY-TWO OF THIS CHAPTER.
(G) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SECTION IS REVOKED
BY SUCH DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY
REQUIREMENTS OF THIS SECTION, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE
ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 9. The tax law is amended by adding a new section 24-d to read as
follows:
§ 24-D. EMPIRE STATE INDEPENDENT FILM PRODUCTION CREDIT. (A) (1)
ALLOWANCE OF CREDIT. A TAXPAYER WHICH IS A QUALIFIED INDEPENDENT FILM
PRODUCTION COMPANY, OR WHICH IS A SOLE PROPRIETOR OF OR A MEMBER OF A
PARTNERSHIP WHICH IS A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
AND WHICH IS SUBJECT TO TAX UNDER ARTICLES NINE-A OR TWENTY-TWO OF THIS
CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE
PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS SECTION, TO BE COMPUTED
AS HEREINAFTER PROVIDED.
(2) (I) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA
SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNERSHIP) OF THIR-
TY PERCENT AND THE QUALIFIED PRODUCTION COSTS PAID OR INCURRED IN THE
PRODUCTION OF A QUALIFIED FILM, PROVIDED THAT THE QUALIFIED PRODUCTION
COSTS (EXCLUDING POST PRODUCTION COSTS) PAID OR INCURRED WHICH ARE
ATTRIBUTABLE TO THE USE OF TANGIBLE PROPERTY OR THE PERFORMANCE OF
SERVICES AT A QUALIFIED FILM PRODUCTION FACILITY IN THE PRODUCTION OF
SUCH QUALIFIED FILM EQUAL OR EXCEED SEVENTY-FIVE PERCENT OF THE
PRODUCTION COSTS (EXCLUDING POST PRODUCTION COSTS) PAID OR INCURRED
WHICH ARE ATTRIBUTABLE TO THE USE OF TANGIBLE PROPERTY OR THE PERFORM-
ANCE OF SERVICES AT ANY FILM PRODUCTION FACILITY WITHIN AND WITHOUT THE
STATE IN THE PRODUCTION OF SUCH QUALIFIED FILM. HOWEVER, IF THE QUALI-
FIED PRODUCTION COSTS (EXCLUDING POST PRODUCTION COSTS) WHICH ARE
ATTRIBUTABLE TO THE USE OF TANGIBLE PROPERTY OR THE PERFORMANCE OF
SERVICES AT A QUALIFIED FILM PRODUCTION FACILITY IN THE PRODUCTION OF
SUCH QUALIFIED FILM IS LESS THAN THREE MILLION DOLLARS, THEN THE PORTION
OF THE QUALIFIED PRODUCTION COSTS ATTRIBUTABLE TO THE USE OF TANGIBLE
PROPERTY OR THE PERFORMANCE OF SERVICES IN THE PRODUCTION OF SUCH QUALI-
FIED FILM OUTSIDE OF A QUALIFIED FILM PRODUCTION FACILITY SHALL BE
ALLOWED ONLY IF THE SHOOTING DAYS SPENT IN NEW YORK OUTSIDE OF A FILM
S. 3009 64 A. 3009
PRODUCTION FACILITY IN THE PRODUCTION OF SUCH QUALIFIED FILM EQUAL OR
EXCEED SEVENTY-FIVE PERCENT OF THE TOTAL SHOOTING DAYS SPENT WITHIN AND
WITHOUT THE STATE OUTSIDE OF A FILM PRODUCTION FACILITY IN THE
PRODUCTION OF SUCH QUALIFIED FILM. THE CREDIT SHALL BE ALLOWED FOR THE
TAXABLE YEAR IN WHICH THE PRODUCTION OF SUCH QUALIFIED FILM IS
COMPLETED. A TAXPAYER SHALL NOT BE ELIGIBLE FOR A TAX CREDIT ESTABLISHED
BY THIS SECTION FOR THE PRODUCTION OF MORE THAN TWO QUALIFIED FILMS PER
CALENDAR YEAR.
(II) IN ADDITION TO THE AMOUNT OF CREDIT ESTABLISHED IN SUBPARAGRAPH
(I) OF THIS PARAGRAPH, A TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO (A)
THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER
OF A PARTNERSHIP) OF TEN PERCENT AND THE WAGES, SALARIES OR OTHER
COMPENSATION CONSTITUTING QUALIFIED PRODUCTION COSTS AS DEFINED IN PARA-
GRAPH ONE OF SUBDIVISION (B) OF THIS SECTION, PAID TO INDIVIDUALS
DIRECTLY EMPLOYED BY A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY FOR
SERVICES PERFORMED BY THOSE INDIVIDUALS IN ONE OF THE COUNTIES SPECIFIED
IN THIS SUBPARAGRAPH IN CONNECTION WITH A QUALIFIED INDEPENDENT FILM
WITH A MINIMUM BUDGET OF FIVE HUNDRED THOUSAND DOLLARS, AND (B) THE
PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A
PARTNERSHIP) OF TEN PERCENT AND THE QUALIFIED PRODUCTION COSTS (EXCLUD-
ING WAGES, SALARIES OR OTHER COMPENSATION) PAID OR INCURRED IN THE
PRODUCTION OF A QUALIFIED FILM WHERE THE PROPERTY CONSTITUTING SUCH
QUALIFIED PRODUCTION COSTS WAS USED, AND THE SERVICES CONSTITUTING SUCH
QUALIFIED PRODUCTION COSTS WERE PERFORMED IN ANY OF THE COUNTIES SPECI-
FIED IN THIS SUBPARAGRAPH IN CONNECTION WITH A QUALIFIED FILM WITH A
MINIMUM BUDGET OF FIVE HUNDRED THOUSAND DOLLARS WHERE THE MAJORITY OF
PRINCIPAL PHOTOGRAPHY SHOOTING DAYS IN THE PRODUCTION OF SUCH FILM
WERE SHOT IN ANY OF THE COUNTIES SPECIFIED IN THIS PARAGRAPH. PROVIDED,
HOWEVER, THAT THE AGGREGATE TOTAL ELIGIBLE QUALIFIED PRODUCTION COSTS
CONSTITUTING WAGES, SALARIES OR OTHER COMPENSATION, FOR WRITERS,
DIRECTORS, COMPOSERS, PRODUCERS, AND PERFORMERS SHALL NOT EXCEED FORTY
PERCENT OF THE AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED PRODUCTION
COSTS. FOR PURPOSES OF THE CREDIT, THE SERVICES MUST BE PERFORMED AND
THE PROPERTY MUST BE USED IN ONE OR MORE OF THE FOLLOWING COUNTIES:
ALBANY, ALLEGANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG,
CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ERIE, ESSEX,
FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, HERKIMER, JEFFERSON, LEWIS,
LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONEIDA, ONONDAGA,
ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, SARATOGA,
SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, ST. LAWRENCE, STEUBEN, SULLI-
VAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WYOMING, OR
YATES.
(3) NO QUALIFIED PRODUCTION COSTS USED BY A TAXPAYER EITHER AS THE
BASIS FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS SECTION OR
USED IN THE CALCULATION OF THE CREDIT PROVIDED FOR UNDER THIS SECTION
SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSU-
ANT TO THIS CHAPTER.
(4) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, A
QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CRED-
IT UNDER THE PROVISIONS OF THIS SECTION, AGREES AS A CONDITION FOR THE
GRANTING OF THE CREDIT: (I) TO INCLUDE IN EACH QUALIFIED FILM DISTRIB-
UTED BY DVD, OR OTHER MEDIA FOR THE SECONDARY MARKET, A NEW YORK PROMO-
TIONAL VIDEO APPROVED BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND
TELEVISION DEVELOPMENT OR TO INCLUDE IN THE END CREDITS OF EACH QUALI-
FIED FILM "FILMED WITH THE SUPPORT OF THE NEW YORK STATE GOVERNOR'S
OFFICE OF MOTION PICTURE AND TELEVISION DEVELOPMENT" AND A LOGO PROVIDED
S. 3009 65 A. 3009
BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION DEVELOPMENT,
AND (II) TO CERTIFY THAT IT WILL PURCHASE TAXABLE TANGIBLE PROPERTY AND
SERVICES, DEFINED AS QUALIFIED PRODUCTION COSTS PURSUANT TO PARAGRAPH
ONE OF SUBDIVISION (B) OF THIS SECTION, ONLY FROM COMPANIES REGISTERED
TO COLLECT AND REMIT STATE AND LOCAL SALES AND USE TAXES PURSUANT TO
ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAPTER.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "QUALIFIED PRODUCTION COSTS" MEANS PRODUCTION COSTS ONLY TO THE
EXTENT SUCH COSTS, EXCLUDING LABOR COSTS, DO NOT EXCEED SIXTY MILLION
DOLLARS AND ARE ATTRIBUTABLE TO THE USE OF TANGIBLE PROPERTY OR THE
PERFORMANCE OF SERVICES WITHIN THE STATE DIRECTLY AND PREDOMINANTLY IN
THE PRODUCTION (INCLUDING PRE-PRODUCTION AND POST PRODUCTION) OF A QUAL-
IFIED FILM. IN THE CASE OF AN ELIGIBLE RELOCATED TELEVISION SERIES, THE
TERM "QUALIFIED PRODUCTION COSTS" SHALL INCLUDE, IN THE FIRST SEASON
THAT THE ELIGIBLE RELOCATED TELEVISION SERIES IS PRODUCED IN NEW YORK
AFTER RELOCATION, QUALIFIED RELOCATION COSTS. PROVIDED, HOWEVER, THAT
THE AGGREGATE TOTAL ELIGIBLE QUALIFIED PRODUCTION COSTS FOR PRODUCERS,
WRITERS, DIRECTORS, PERFORMERS (OTHER THAN BACKGROUND ACTORS WITH NO
SCRIPTED LINES), AND COMPOSERS SHALL NOT EXCEED FORTY PERCENT OF THE
AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED PRODUCTION COSTS. PROVIDED,
FURTHER, THAT QUALIFIED PRODUCTION COSTS SHALL NOT INCLUDE ANY PAYMENTS
TO A LOAN-OUT COMPANY FOR THE PROVISION OF SPECIFIED INDIVIDUAL PERSON-
NEL, SUCH AS ARTISTS, CREW, ACTORS, PRODUCERS, OR DIRECTORS, FOR THE
PERFORMANCE OF SERVICES USED DIRECTLY IN A PRODUCTION UNLESS THE TAXPAY-
ER HAS SATISFIED THE WITHHOLDING REQUIREMENT PURSUANT TO SUBDIVISION (G)
OF THIS SECTION.
(2) "PRODUCTION COSTS" MEANS ANY COSTS FOR TANGIBLE PROPERTY USED AND
SERVICES PERFORMED DIRECTLY AND PREDOMINANTLY IN THE PRODUCTION (INCLUD-
ING PRE-PRODUCTION AND POST PRODUCTION) OF A QUALIFIED FILM.
"PRODUCTION COSTS" SHALL NOT INCLUDE COSTS FOR A STORY, SCRIPT OR
SCENARIO TO BE USED FOR A QUALIFIED FILM. "PRODUCTION COSTS" GENERALLY
INCLUDE WRITERS, DIRECTORS, COMPOSERS AND PERFORMERS, TECHNICAL AND CREW
PRODUCTION COSTS, SUCH AS EXPENDITURES FOR FILM PRODUCTION FACILITIES,
OR ANY PART THEREOF, PROPS, MAKEUP, WARDROBE, FILM PROCESSING, CAMERA,
SOUND RECORDING, SET CONSTRUCTION, LIGHTING, SHOOTING, EDITING AND
MEALS.
(3) "QUALIFIED FILM" MEANS A SCRIPTED NARRATIVE FEATURE-LENGTH FILM,
TELEVISION FILM, RELOCATED TELEVISION SERIES OR TELEVISION SERIES,
REGARDLESS OF THE MEDIUM BY MEANS OF WHICH THE FILM OR SERIES IS CREATED
OR CONVEYED. FOR THE PURPOSES OF THE CREDIT PROVIDED BY THIS SECTION
ONLY, A "QUALIFIED FILM" WHOSE MAJORITY OF PRINCIPAL PHOTOGRAPHY SHOOT-
ING DAYS IN THE PRODUCTION OF THE QUALIFIED FILM ARE SHOT IN WESTCHES-
TER, ROCKLAND, NASSAU, OR SUFFOLK COUNTY OR ANY OF THE FIVE NEW YORK
CITY BOROUGHS SHALL HAVE A MINIMUM BUDGET OF ONE MILLION DOLLARS. A
"QUALIFIED FILM", WHOSE MAJORITY OF PRINCIPAL PHOTOGRAPHY SHOOTING DAYS
IN THE PRODUCTION OF THE QUALIFIED FILM ARE SHOT IN ANY OTHER COUNTY OF
THE STATE THAN THOSE LISTED IN THE PRECEDING SENTENCE SHALL HAVE A MINI-
MUM BUDGET OF TWO HUNDRED FIFTY THOUSAND DOLLARS. "QUALIFIED FILM" SHALL
NOT INCLUDE: (I) A TELEVISION PILOT, DOCUMENTARY FILM, NEWS OR CURRENT
AFFAIRS PROGRAM, INTERVIEW OR TALK PROGRAM, "HOW-TO" (I.E., INSTRUC-
TIONAL) FILM OR PROGRAM, FILM OR PROGRAM CONSISTING PRIMARILY OF STOCK
FOOTAGE, SPORTING EVENT OR SPORTING PROGRAM, GAME SHOW, AWARD CEREMONY,
FILM OR PROGRAM INTENDED PRIMARILY FOR INDUSTRIAL, CORPORATE OR INSTITU-
TIONAL END-USERS, FUNDRAISING FILM OR PROGRAM, DAYTIME DRAMA (I.E.,
DAYTIME "SOAP OPERA"), COMMERCIALS, MUSIC VIDEOS OR "REALITY" PROGRAM;
S. 3009 66 A. 3009
(II) A PRODUCTION FOR WHICH RECORDS ARE REQUIRED UNDER SECTION 2257 OF
TITLE 18, UNITED STATES CODE, TO BE MAINTAINED WITH RESPECT TO ANY
PERFORMER IN SUCH PRODUCTION (REPORTING OF BOOKS, FILMS, ETC. WITH
RESPECT TO SEXUALLY EXPLICIT CONDUCT); OR (III) A TELEVISION SERIES
COMMONLY KNOWN AS VARIETY ENTERTAINMENT, VARIETY SKETCH AND VARIETY
TALK, I.E., A PROGRAM WITH COMPONENTS OF IMPROVISATIONAL OR SCRIPTED
CONTENT (MONOLOGUES, SKETCHES, INTERVIEWS), EITHER EXCLUSIVELY OR IN
COMBINATION WITH OTHER ENTERTAINMENT ELEMENTS SUCH AS MUSICAL PERFORM-
ANCES, DANCING, COOKING, CRAFTS, PRANKS, STUNTS, AND GAMES AND WHICH MAY
BE FURTHER DEFINED IN REGULATIONS OF THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT.
(4) "FILM PRODUCTION FACILITY" SHALL MEAN A BUILDING AND/OR COMPLEX OF
BUILDINGS AND THEIR IMPROVEMENTS AND ASSOCIATED BACK-LOT FACILITIES IN
WHICH FILMS ARE OR ARE INTENDED TO BE REGULARLY PRODUCED AND WHICH
CONTAIN AT LEAST ONE SOUND STAGE, PROVIDED, HOWEVER, THAT AN ARMORY
OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF NEW YORK
SHALL NOT BE CONSIDERED TO BE A "FILM PRODUCTION FACILITY" UNLESS SUCH
FACILITY IS USED BY A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY.
(5) "QUALIFIED FILM PRODUCTION FACILITY" SHALL MEAN A FILM PRODUCTION
FACILITY IN THE STATE, WHICH CONTAINS AT LEAST ONE SOUND STAGE HAVING A
MINIMUM OF SEVEN THOUSAND SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE.
(6) "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM,
(II) IS NOT PUBLICLY TRADED, AND (III) IS NOT MAJORITY OWNED, FIFTY-ONE
PERCENT OR MORE, BY A COMPANY PUBLICLY TRADED ON A UNITED STATES STOCK
EXCHANGE.
(7) "RELOCATED TELEVISION SERIES" SHALL MEAN THE FIRST TWO YEARS OF A
REGULARLY OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL BROADCAST,
REGARDLESS OF THE MEDIUM OR MODE OF ITS DISTRIBUTION, IN A SERIES OF
NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, EACH OF WHICH HAS A
RUNNING TIME OF AT LEAST THIRTY MINUTES IN LENGTH (INCLUSIVE OF COMMER-
CIAL ADVERTISEMENT AND INTERSTITIAL PROGRAMMING, IF ANY), WHICH HAD
FILMED A MINIMUM OF SIX EPISODES OF THE TELEVISION SERIES OUTSIDE THE
STATE IMMEDIATELY PRIOR TO RELOCATING TO THE STATE, WHERE THE TELEVISION
SERIES HAD A TOTAL MINIMUM BUDGET OF AT LEAST ONE MILLION DOLLARS PER
EPISODE. FOR THE PURPOSES OF THIS DEFINITION ONLY, A TELEVISION SERIES
PRODUCED BY AND FOR MEDIA SERVICES PROVIDERS DESCRIBED AS STREAMING
SERVICES AND/OR DIGITAL PLATFORMS (AND EXCLUDING NETWORK/CABLE) SHALL
MEAN A REGULARLY OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL
RELEASE IN A SERIES OF NARRATIVE AND/OR THEMATICALLY RELATED EPISODES,
THE AGGREGATE LENGTH OF WHICH IS AT LEAST SEVENTY-FIVE MINUTES, ALTHOUGH
THE EPISODES THEMSELVES MAY VARY IN DURATION FROM THE THIRTY MINUTES
SPECIFIED FOR NETWORK/CABLE PRODUCTION.
(8) "QUALIFIED RELOCATION COSTS" MEANS THE COSTS INCURRED, EXCLUDING
WAGES, SALARIES AND OTHER COMPENSATION, IN THE FIRST SEASON THAT A RELO-
CATED TELEVISION SERIES RELOCATES TO NEW YORK, INCLUDING SUCH COSTS
INCURRED TO TRANSPORT SETS, PROPS AND WARDROBE TO NEW YORK AND OTHER
COSTS AS DETERMINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO THE
EXTENT SUCH COSTS DO NOT EXCEED SIX MILLION DOLLARS.
(9) "LOAN-OUT COMPANY" MEANS A PERSONAL SERVICE CORPORATION OR OTHER
ENTITY WITH WHICH A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY OR A
QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY CONTRACTS FOR THE
PROVISION OF SPECIFIED INDIVIDUAL PERSONNEL, SUCH AS ARTISTS, CREW,
ACTORS, PRODUCERS, OR DIRECTORS FOR THE PERFORMANCE OF SERVICES USED
DIRECTLY IN A PRODUCTION. "LOAN-OUT COMPANY" SHALL NOT INCLUDE ENTITIES
S. 3009 67 A. 3009
THAT CONTRACTED WITH A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY OR
A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY TO PROVIDE GOODS OR
ANCILLARY CONTRACTOR SERVICES SUCH AS CATERING, CONSTRUCTION, TRAILERS,
EQUIPMENT, OR TRANSPORTATION.
(10) IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY
PARTICULAR YEAR IS LESS THAN THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
FOR SUCH YEAR UNDER THIS SECTION, ANY UNUSED PORTION MAY BE CARRIED OVER
AND ADDED TO THE AGGREGATE AMOUNT OF CREDITS ALLOWED IN THE NEXT
SUCCEEDING TAXABLE YEAR OR YEARS.
(C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 20-A.
(2) ARTICLE 22: SECTION 606: SUBSECTION (GG-1).
(D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION DEVELOP-
MENT AND THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE INFORMATION REGARDING THE CREDITS APPLIED FOR, ALLOWED, OR
CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR
CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED IN
OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND
APPLICATIONS FOR CREDIT SUBMITTED TO THE GOVERNOR'S OFFICE OF MOTION
PICTURE AND TELEVISION DEVELOPMENT.
(E) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION TWENTY-A OF SECTION TWO HUNDRED TEN AND
SUBSECTION (GG-1) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
CALENDAR YEAR SHALL BE (1) TWENTY MILLION DOLLARS FOR QUALIFIED FILMS
WITH A BUDGET OF LESS THAN TEN MILLION DOLLARS OF QUALIFIED PRODUCTION;
AND (2) EIGHTY MILLION DOLLARS FOR QUALIFIED FILMS WITH A BUDGET OF TEN
MILLION DOLLARS OR MORE OF QUALIFIED PRODUCTION COSTS. THERE SHALL BE AT
LEAST TWO APPLICATION PERIODS EACH YEAR; SUCH AGGREGATE AMOUNT OF CRED-
ITS SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND
TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON
THE DATE OF FILING OF AN APPLICATION FOR ALLOCATION OF THE INDEPENDENT
FILM PRODUCTION CREDIT WITH SUCH OFFICE WITHIN EACH APPLICATION PERIOD.
IF THE COMMISSIONER OF ECONOMIC DEVELOPMENT DETERMINES THAT THE AGGRE-
GATE AMOUNT OF TAX CREDITS AVAILABLE FOR AN APPLICATION PERIOD UNDER
PARAGRAPH ONE OF THIS SUBDIVISION HAVE BEEN PREVIOUSLY ALLOCATED, AND
DETERMINES THAT THE PENDING APPLICATIONS FROM ELIGIBLE APPLICANTS FOR
THE OTHER APPLICATION PERIOD IN SUCH CALENDAR YEAR IS INSUFFICIENT TO
UTILIZE THE BALANCE OF UNALLOCATED TAX CREDITS FOR SUCH PERIOD, THEN
SUCH COMMISSIONER MAY ALLOCATE TO PRODUCTIONS ELIGIBLE UNDER SUCH PARA-
GRAPH ANY CREDITS THAT REMAIN UNALLOCATED FOR SUCH PERIOD PURSUANT TO
PARAGRAPH TWO OF THIS SUBDIVISION. PROVIDED, HOWEVER, THE TOTAL AMOUNT
OF ALLOCATED CREDITS APPLIED IN ANY CALENDAR YEAR SHALL NOT EXCEED THE
AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS
SECTION.
(F) (1) THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL REDUCE BY ONE-
HALF OF ONE PERCENT THE AMOUNT OF CREDIT ALLOWED TO A TAXPAYER AND THIS
REDUCED AMOUNT SHALL BE REPORTED ON A CERTIFICATE OF TAX CREDIT ISSUED
PURSUANT TO THIS SECTION AND THE REGULATIONS PROMULGATED BY THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT TO IMPLEMENT THIS CREDIT PROGRAM.
(2) BY JANUARY THIRTY-FIRST OF EACH YEAR, THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL REPORT TO THE COMPTROLLER THE TOTAL AMOUNT OF SUCH
REDUCTIONS OF TAX CREDIT DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR.
ON OR BEFORE MARCH THIRTY-FIRST OF EACH YEAR, THE COMPTROLLER SHALL
TRANSFER WITHOUT APPROPRIATIONS FROM THE GENERAL FUND TO THE EMPIRE
S. 3009 68 A. 3009
STATE ENTERTAINMENT DIVERSITY JOB TRAINING DEVELOPMENT FUND ESTABLISHED
UNDER SECTION NINETY-SEVEN-FF OF THE STATE FINANCE LAW AN AMOUNT EQUAL
TO THE TOTAL AMOUNT OF SUCH REDUCTIONS REPORTED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT FOR THE IMMEDIATELY PRECEDING CALENDAR YEAR.
(G) A TAXPAYER SHALL WITHHOLD FROM EACH PAYMENT TO A LOAN-OUT COMPANY
AN AMOUNT EQUAL TO 6.85 PERCENT OF THE PAYMENT OTHERWISE DUE. THE
AMOUNTS WITHHELD SHALL BE DEEMED TO BE WITHHOLDING PURSUANT TO PART FIVE
OF ARTICLE TWENTY-TWO OF THIS CHAPTER, AND THE TAXPAYER SHALL BE DEEMED
TO HAVE THE RIGHTS, DUTIES, AND RESPONSIBILITIES PURSUANT TO SUCH PART
OF AN EMPLOYER OF THE INDIVIDUALS TO WHOM THE LOAN-OUT COMPANY MADE
PAYMENTS FOR SERVICES PERFORMED IN THE STATE. THE AMOUNTS SO WITHHELD
SHALL BE ALLOCATED TO THE LOAN-OUT COMPANY'S EMPLOYEES IN PROPORTION TO
PAYMENTS MADE TO THE LOAN-OUT COMPANY'S EMPLOYEES FOR SERVICES PERFORMED
IN THE STATE. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,
LOAN-OUT COMPANY NONRESIDENT EMPLOYEES PERFORMING SERVICES IN THE STATE
SHALL BE CONSIDERED TAXABLE NONRESIDENTS AND THE LOAN-OUT COMPANY SHALL
BE SUBJECT TO INCOME TAXATION IN THE TAXABLE YEAR IN WHICH THE LOAN-OUT
COMPANY'S EMPLOYEES PERFORM SERVICES IN THE STATE. SUCH WITHHOLDING
LIABILITY SHALL BE SUBJECT TO PENALTIES AND INTEREST IN THE SAME MANNER
AS THE EMPLOYEE WITHHOLDING TAXES IMPOSED BY PART FIVE OF ARTICLE TWEN-
TY-TWO OF THIS CHAPTER.
(H) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SECTION IS REVOKED
BY SUCH DEPARTMENT BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY
REQUIREMENTS OF THIS SECTION, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE
ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION
BECOMES FINAL.
§ 10. Section 210-B of the tax law is amended by adding a new subdivi-
sion 20-a to read as follows:
20-A. EMPIRE STATE INDEPENDENT FILM PRODUCTION CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-D
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION TWENTY-FOUR-D AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(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 FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED,
HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
THE EXCESS 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.
§ 11. Section 606 of the tax law is amended by adding a new subsection
(gg-1) to read as follows:
(GG-1) EMPIRE STATE INDEPENDENT FILM PRODUCTION CREDIT. (1) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-D
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION TWENTY-FOUR-D AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
S. 3009 69 A. 3009
ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 12. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (lii) to read as
follows:
(LII) EMPIRE STATE FILM AMOUNT OF CREDIT FOR QUALIFIED
PRODUCTION CREDIT UNDER PRODUCTION COSTS IN PRODUCTION OF
SUBSECTION (GG-1) A QUALIFIED FILM UNDER
SUBDIVISION TWENTY-A OF
SECTION TWO HUNDRED TEN-B
§ 13. This act shall take effect immediately and shall apply to
initial applications received on or after January 1, 2025, provided,
however, that the amendments to paragraph 4 of subdivision (e) of
section 24 of the tax law made by section three of this act shall take
effect on the same date and in the same manner as section 6 of chapter
683 of the laws of 2019, takes effect.
PART J
Section 1. Subdivision 13 of section 492 of the economic development
law, as added by section 2 of part AAA of chapter 56 of the laws of
2024, is amended to read as follows:
13. "Independently owned" shall mean a business entity that is not[:
(a)] a publicly traded entity or no more than five percent of the bene-
ficial ownership of which is owned, directly or indirectly by a publicly
traded entity[; (b) a subsidiary; and (c) any other criteria that the
department shall determine via regulations to ensure the business is not
controlled by another business entity].
§ 2. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2025.
PART K
Section 1. Subdivision (b) of section 45 of the tax law, as added by
section 1 of part OO of chapter 59 of the laws of 2022, is amended to
read as follows:
(b) Allocation of credit. The aggregate amount of tax credits allowed
under this section, subdivision fifty-five of section two hundred ten-B
and subsection (nnn) of section six hundred six of this chapter in any
taxable year shall be five million dollars. Such credit shall be allo-
cated by the department of economic development in order of priority
based upon the date of filing an application for allocation of digital
gaming media production credit with such office. If the total amount of
allocated credits applied for in any particular year exceeds the aggre-
gate amount of tax credits allowed for such year under this section,
such excess shall be treated as having been applied for on the first day
of the subsequent taxable year. PROVIDED, HOWEVER, THAT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, IF
THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR
IS LESS THAN THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR
UNDER THIS SECTION, ANY UNUSED PORTION MAY BE CARRIED OVER AND ADDED TO
THE AGGREGATE AMOUNT OF CREDITS ALLOWED IN THE NEXT SUCCEEDING TAXABLE
YEAR OR YEARS.
§ 2. This act shall take effect immediately.
PART L
S. 3009 70 A. 3009
Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws
of 2021 amending the tax law and the state finance law relating to
establishing the New York city musical and theatrical production tax
credit and establishing the New York state council on the arts cultural
program fund, as amended by section 1 of subpart E of part I of chapter
59 of the laws of 2023, is amended to read as follows:
§ 6. This act shall take effect immediately; provided however, that
sections one, two, three and four of this act shall apply to taxable
years beginning on or after January 1, 2021, and before January 1,
[2026] 2028 and shall expire and be deemed repealed January 1, [2026]
2028; provided further, however that the obligations under paragraph 3
of subdivision (g) of section 24-c of the tax law, as added by section
one of this act, shall remain in effect until December 31, [2027] 2029.
§ 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section
24-c of the tax law, as amended by section 3 of subpart E of part I of
chapter 59 of the laws of 2023, is amended to read as follows:
(i) "The credit period of a qualified New York city musical and theat-
rical production company" is the period starting on the production start
date and ending on the earlier of the date the qualified musical and
theatrical production has expended sufficient qualified production
expenditures to reach its credit cap, September thirtieth, two thousand
[twenty-five] TWENTY-SEVEN or the date the qualified musical and theat-
rical production closes.
§ 3. Subdivision (c) of section 24-c of the tax law, as amended by
section 4 of subpart E of part I of chapter 59 of the laws of 2023, is
amended to read as follows:
(c) The credit shall be allowed for the taxable year beginning on or
after January first, two thousand twenty-one but before January first,
two thousand [twenty-six] TWENTY-EIGHT. A qualified New York city
musical and theatrical production company shall claim the credit in the
year in which its credit period ends.
§ 4. Subdivision (f) of section 24-c of the tax law, as added by
section 1 of subpart B of part PP of chapter 59 of the laws of 2021,
paragraphs 1 and 2 as amended by section 5 of subpart E of part I of
chapter 59 of the laws of 2023, is amended to read as follows:
(f) Maximum amount of credits. (1) The aggregate amount of tax cred-
its allowed under this section, subdivision fifty-seven of section two
hundred ten-B and subsection (mmm) of section six hundred six of this
chapter shall be [three] FOUR hundred million dollars. Such aggregate
amount of credits shall be allocated by the department of economic
development among taxpayers based on the date of first performance of
the qualified musical and theatrical production.
(2) The commissioner of economic development, after consulting with
the commissioner, shall promulgate regulations to establish procedures
for the allocation of tax credits as required by this section. Such
rules and regulations shall include provisions describing the applica-
tion process, the due dates for such applications, the standards that
will be used to evaluate the applications, the documentation that will
be provided by applicants to substantiate to the department the amount
of qualified production expenditures of such applicants, and such other
provisions as deemed necessary and appropriate. Notwithstanding any
other provisions to the contrary in the state administrative procedure
act, such rules and regulations may be adopted on an emergency basis. In
no event shall a qualified New York city musical and theatrical
production submit an application for this program after June thirtieth,
two thousand [twenty-five] TWENTY-SEVEN.
S. 3009 71 A. 3009
§ 5. This act shall take effect immediately; provided, however, that
the amendments to section 24-c of the tax law, made by sections two,
three and four of this act, shall not affect the repeal of such section
and shall be deemed to be repealed therewith.
PART M
Section 1. Section 35 of the tax law, as added by section 12 of part U
of chapter 61 of the laws of 2011, is amended to read as follows:
§ 35. Use of electronic means of communication. Notwithstanding any
other provision of New York state law, where the department has obtained
authorization of an online services account holder, in such form as may
be prescribed by the commissioner, the department may use electronic
means of communication to furnish any document it is required to mail
per law or regulation. If the department furnishes such document in
accordance with this section, department records of such transaction
shall constitute appropriate and sufficient proof of delivery thereof
and be admissible in any action or proceeding. PROVIDED, HOWEVER, THAT
IF A TAXPAYER USES A DEPARTMENT SYSTEM TO ACCESS TAXPAYER INFORMATION,
INCLUDING, BUT NOT LIMITED TO, NOTICES, DOCUMENTS AND ACCOUNT BALANCE
INFORMATION, THAT IS NOT AN ELECTRONIC COMMUNICATION FURNISHED IN LIEU
OF MAILING IN ACCORDANCE WITH THIS SECTION, SUCH ACCESSED INFORMATION
SHALL NOT GIVE THE TAXPAYER THE RIGHT TO A HEARING IN THE DIVISION OF
TAX APPEALS, UNLESS THE RIGHT TO PROTEST SUCH INFORMATION IS EXPRESSLY
AUTHORIZED BY THIS CHAPTER OR ANOTHER PROVISION OF LAW.
§ 2. Subdivision 1 of section 2008 of the tax law, as amended by
section 3 of subpart C of part V-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
1. All proceedings in the division of tax appeals shall be commenced
by the filing of a petition with the division of tax appeals protesting
any written notice of the division of taxation, INCLUDING ANY ELECTRONIC
NOTICE PROVIDED IN ACCORDANCE WITH SECTION THIRTY-FIVE OF THIS CHAPTER,
which has advised the petitioner of a tax deficiency, a determination of
tax due, a denial of a refund or credit application, a cancellation,
revocation or suspension of a license, permit or registration, a denial
of an application for a license, permit or registration or any other
notice which EXPRESSLY gives a person the right to a hearing in the
division of tax appeals under this chapter or other law. PROVIDED,
HOWEVER, THAT ANY WRITTEN COMMUNICATIONS OF THE DIVISION OF TAXATION
THAT ADVISE A TAXPAYER OF A PAST-DUE TAX LIABILITY, AS DEFINED IN
SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER, SHALL NOT GIVE A
PERSON THE RIGHT TO A HEARING IN THE DIVISION OF TAX APPEALS.
§ 3. This act shall take effect immediately.
PART N
Section 1. Section 6 of the tax law, as added by chapter 765 of the
laws of 1985, is amended to read as follows:
§ 6. Filing of ELECTRONIC warrants AND WARRANT-RELATED RECORDS in the
department of state. [Wherever under the provisions] 1. NOTWITHSTANDING
ANY PROVISION of this chapter OR a [warrant is required to] RELATED
STATUTE TO THE CONTRARY, ALL WARRANTS AND WARRANT-RELATED RECORDS ISSUED
BY THE DEPARTMENT SHALL be filed ELECTRONICALLY BY THE DEPARTMENT in the
department of state [in order to create a lien on personal property such
requirement shall be satisfied if there is filed a record of the fact of
the issuance of such warrant, including the name of the person on the
S. 3009 72 A. 3009
basis of whose tax liability the warrant is issued, the last known
address of such person, and the amount of such tax liability, including
penalties and interest]. No fee shall be required to be paid for such
[filing of such warrant or such record] FILINGS. [The term "filed" in
such provisions shall mean presentation to the department of state, for
filing, of such warrant or such record.] ON THE DATE OF THE ELECTRONIC
FILING OF A WARRANT, AS CONFIRMED BY THE DEPARTMENT OF STATE PURSUANT TO
SUBDIVISION FIVE OF THIS SECTION:
(A) THE AMOUNT OF THE TAX STATED IN THE WARRANT SHALL BECOME A LIEN
UPON THE TITLE TO AND INTEREST IN ALL REAL, PERSONAL OR OTHER PROPERTY
LOCATED IN NEW YORK STATE, OWNED BY THE PERSON OR PERSONS NAMED IN THE
WARRANT. THE LIEN SO CREATED SHALL:
(I) ATTACH TO ALL REAL PROPERTY AND RIGHTS TO REAL PROPERTY LOCATED IN
NEW YORK STATE THAT IS OWNED BY THE PERSON OR PERSONS NAMED IN THE
WARRANT AT ANY TIME DURING THE PERIOD OF THE LIEN, INCLUDING ANY REAL
PROPERTY OR RIGHTS TO REAL PROPERTY LOCATED IN NEW YORK STATE THAT IS
ACQUIRED BY SUCH PERSON OR PERSONS AFTER THE LIEN ARISES; AND
(II) APPLY TO ALL PERSONAL OR OTHER PROPERTY AND RIGHTS TO PERSONAL OR
OTHER PROPERTY LOCATED IN NEW YORK STATE THAT IS OWNED BY THE PERSON OR
PERSONS NAMED IN THE WARRANT AT ANY TIME DURING THE PERIOD OF THE LIEN,
INCLUDING ANY PERSONAL OR OTHER PROPERTY OR RIGHTS TO PERSONAL OR OTHER
PROPERTY LOCATED IN NEW YORK STATE THAT IS ACQUIRED BY SUCH PERSON OR
PERSONS AFTER THE LIEN ARISES; AND
(B) THE COMMISSIONER SHALL, IN THE RIGHT OF THE PEOPLE OF THE STATE OF
NEW YORK, BE DEEMED TO HAVE OBTAINED A JUDGMENT AGAINST THE PERSON OR
PERSONS NAMED IN THE WARRANT FOR THE AMOUNT OF THE TAX STATED IN THE
WARRANT.
2. ENFORCEMENT OF A JUDGMENT OBTAINED PURSUANT TO SUBDIVISION ONE OF
THIS SECTION SHALL BE AS PRESCRIBED IN ARTICLE FIFTY-TWO OF THE CIVIL
PRACTICE LAW AND RULES.
3. A WRITTEN OR ELECTRONIC COPY OF ANY ELECTRONIC WARRANT OR WARRANT-
RELATED RECORD FILED IN THE DEPARTMENT OF STATE SHALL BE FILED BY THE
DEPARTMENT IN THE OFFICE OF THE CLERK OF THE COUNTY NAMED IN THE WARRANT
OR WARRANT-RELATED RECORD.
4. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER OR A RELATED STATUTE
TO THE CONTRARY, ALL WARRANT-RELATED RECORDS ISSUED BY THE DEPARTMENT
THAT ARE AUTHORIZED BY APPLICABLE LAWS, INCLUDING, BUT NOT LIMITED TO,
WARRANT SATISFACTIONS, VACATURS, AMENDMENTS AND EXPIRATIONS, AND ANY
WARRANT-RELATED RECORD ISSUED BY THE DEPARTMENT ON OR AFTER JULY FIRST,
TWO THOUSAND TWENTY-FIVE THAT PERTAINS TO A WARRANT FILED PRIOR TO JULY
FIRST, TWO THOUSAND TWENTY-FIVE, SHALL BE FILED ELECTRONICALLY BY THE
DEPARTMENT IN THE DEPARTMENT OF STATE. NO FEE SHALL BE REQUIRED TO BE
PAID FOR SUCH FILINGS. A WRITTEN OR ELECTRONIC COPY OF THE ELECTRONIC
WARRANT-RELATED RECORD FILED IN THE DEPARTMENT OF STATE SHALL BE FILED
BY THE DEPARTMENT IN THE OFFICE OF THE CLERK OF THE COUNTY NAMED IN THE
WARRANT-RELATED RECORD.
5. THE DEPARTMENT SHALL FILE WARRANTS AND WARRANT-RELATED RECORDS
ELECTRONICALLY WITH THE DEPARTMENT OF STATE. THE DEPARTMENT OF STATE
SHALL PROVIDE ELECTRONIC NOTICE TO THE DEPARTMENT CONFIRMING THE DATE OF
FILING OF THE WARRANTS AND WARRANT-RELATED RECORDS. THE DEPARTMENT OF
STATE SHALL ALSO MAKE INFORMATION REGARDING THE WARRANTS AND WARRANT-RE-
LATED RECORDS, INCLUDING THE DATE OF FILING, AVAILABLE TO THE PUBLIC AND
SEARCHABLE BY THE NAME OF THE PERSON OR PERSONS LISTED IN THE TAX
WARRANT. UPON REQUEST OF THE COMMISSIONER, THE DEPARTMENT OF STATE SHALL
CERTIFY THAT A WARRANT OR WARRANT-RELATED RECORD HAS BEEN FILED AND THE
DATE OF SUCH FILING.
S. 3009 73 A. 3009
6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER CONCERNING THE
PLACE OF FILING OF A TAX WARRANT AND THE CREATION THEREBY OF A TAX LIEN
AND JUDGMENT, THE PROVISIONS OF THIS SECTION SHALL GOVERN SUCH MATTERS
FOR PURPOSES OF ANY TAXES IMPOSED BY OR PURSUANT TO THIS CHAPTER.
§ 2. Subdivision 1 of section 174-a of the tax law, as added by chap-
ter 176 of the laws of 1997, is amended to read as follows:
1. General rule. Notwithstanding any provision of law to the contrary,
the provisions of the civil practice law and rules relating to the dura-
tion of a lien of a docketed judgment in and upon real property of a
judgment debtor, and the extension of any such lien, shall apply to any
warrant OR OTHER WARRANT-RELATED DOCUMENT ELECTRONICALLY filed on behalf
of the commissioner against a taxpayer with the [clerk of a county wher-
ein such taxpayer owns or has an interest in real property] DEPARTMENT
OF STATE, whether such warrant is being enforced by a sheriff or an
officer or employee of the department.
§ 3. Section 175 of the tax law, as amended by chapter 170 of the laws
of 1994, is amended to read as follows:
§ 175. Manner of execution of instruments by the commissioner.
Notwithstanding any other provision of law, whenever a statute author-
izes or requires the commissioner to execute an instrument, such instru-
ment shall be executed by having the name or title of the commissioner
appear on such instrument and, underneath such name or title, such
instrument shall be signed by the commissioner or by a deputy tax
commissioner or by the secretary to such commissioner[, and the]. AN
ELECTRONIC SIGNATURE MAY BE USED IN LIEU OF A SIGNATURE AFFIXED BY HAND
PURSUANT TO ARTICLE THREE OF THE STATE TECHNOLOGY LAW. THE seal of such
commissioner [shall] MAY be affixed or [shall] appear on such instrument
as a facsimile which is engraved, printed or reproduced in any other
manner. No acknowledgment of the execution of any such instrument shall
be necessary for the purpose of the recordation thereof or for any other
purpose.
§ 4. This act shall take effect July 1, 2025 and shall apply to
warrants and warrant-related records pertaining to such warrants filed,
or deemed to have been filed, on or after such date; provided, however,
that the department of taxation and finance and the department of state
are authorized to take any steps necessary to implement this act on or
before such effective date.
PART O
Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
property tax law, as amended by section 1 of part RR of chapter 59 of
the laws of 2019, is amended to read as follows:
(b-1) Income. For final assessment rolls to be used for the levy of
taxes for the two thousand eleven-two thousand twelve through two thou-
sand eighteen-two thousand nineteen school years, the parcel's affil-
iated income may be no greater than five hundred thousand dollars, as
determined by the commissioner pursuant to subdivision fourteen of this
section or section one hundred seventy-one-u of the tax law, in order to
be eligible for the basic exemption authorized by this section. Begin-
ning with the two thousand nineteen-two thousand twenty school year, for
purposes of the exemption authorized by this section, the parcel's
affiliated income may be no greater than two hundred fifty thousand
dollars, as so determined. As used herein, the term "affiliated income"
shall mean the combined income of all of the owners of the parcel who
resided primarily thereon on the applicable taxable status date, and of
S. 3009 74 A. 3009
any owners' spouses residing primarily thereon. For exemptions on final
assessment rolls to be used for the levy of taxes for the two thousand
eleven-two thousand twelve school year, affiliated income shall be
determined based upon the parties' incomes for the income tax year
ending in two thousand nine. In each subsequent school year, the appli-
cable income tax year shall be advanced by one year. The term "income"
as used herein shall have the same meaning as in subdivision four of
this section, AND THE PROVISIONS OF CLAUSE (B) OF SUBPARAGRAPH (II) OF
PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION SHALL BE EQUALLY
APPLICABLE TO THE BASIC EXEMPTION.
§ 2. Paragraph (a) of subdivision 4 of section 425 of the real proper-
ty tax law, as amended by section 4 of part A of chapter 405 of the laws
of 1999 and subparagraph (i) as amended by section 2 of part E of chap-
ter 83 of the laws of 2002, is amended to read as follows:
(a) Age. (i) [All] AT LEAST ONE of the owners WHO RESIDES PRIMARILY ON
THE PROPERTY must be [at least] sixty-five years of age or older as of
the date specified herein[, or in the case of property owned by husband
and wife or by siblings, one of the owners must be at least sixty-five
years of age as of that date and the property must serve as the primary
residence of that owner]. For the two thousand--two thousand one school
year, eligibility for the exemption shall be based upon age as of Decem-
ber thirty-first, two thousand. For each subsequent school year, the
applicable date shall be advanced by one year.
(ii) [The term "siblings" as used herein shall have the same meaning
as set forth in section four hundred sixty-seven of this article.
(iii)] In the case of property owned by [husband and wife, one of
whom] A MARRIED COUPLE, IF ONLY ONE OF THE SPOUSES is sixty-five years
of age or over, the exemption, once granted, shall not be rescinded
solely because of the death of the older spouse so long as the surviving
spouse is at least sixty-two years of age as of the date specified in
this paragraph.
§ 3. The opening paragraph of subparagraph (i) of paragraph (b) of
subdivision 4 of section 425 of the real property tax law, as amended by
section 3 of part E of chapter 83 of the laws of 2002, is amended to
read as follows:
The combined income of all of the owners WHO PRIMARILY RESIDE ON THE
PROPERTY, and of any owners' spouses PRIMARILY residing on the [prem-
ises] PROPERTY, may not exceed the applicable income standard specified
herein.
§ 4. Subparagraph (ii) of paragraph (b) of subdivision 4 of section
425 of the real property tax law, as amended by section 1 of part B of
chapter 59 of the laws of 2018, is amended to read as follows:
(ii) The term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on the applicant's
federal or state income tax return for the applicable income tax year,
subject to any subsequent amendments or revisions, reduced by distrib-
utions, to the extent included in federal adjusted gross income,
received from an individual retirement account and an individual retire-
ment annuity; provided that if no such return was filed for the applica-
ble income tax year, "income" shall mean the [adjusted gross income]
AMOUNT that would have been so reported if such a return had been filed.
Provided further, that [effective]:
(A) EFFECTIVE with exemption applications for final assessment rolls
to be completed in two thousand nineteen, where an income-eligibility
determination is wholly or partly based upon the income of one or more
individuals who did not file a return for the applicable income tax
S. 3009 75 A. 3009
year, then in order for the application to be considered complete, each
such individual must file a statement with the department showing the
source or sources of [his or her] SUCH INDIVIDUAL'S income for that
income tax year, and the amount or amounts thereof, that would have been
reported on such a return if one had been filed. Such statement shall be
filed at such time, and in such form and manner, as may be prescribed by
the department, and shall be subject to the secrecy provisions of the
tax law to the same extent that a personal income tax return would be.
The department shall make such forms and instructions available for the
filing of such statements. The local assessor shall upon the request of
a taxpayer assist such taxpayer in the filing of the statement with the
department.
(B) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBPARAGRAPH,
WHERE PROPERTY IS OWNED SOLELY BY A PERSON OR PERSONS WHO RECEIVED THE
EXEMPTION FOR THREE CONSECUTIVE YEARS WITHOUT HAVING FILED RETURNS FOR
THE APPLICABLE INCOME TAX YEARS, BUT WHO DEMONSTRATED THEIR ELIGIBILITY
FOR THE EXEMPTION TO THE COMMISSIONER'S SATISFACTION BY FILING STATE-
MENTS PURSUANT TO CLAUSE (A) OF THIS SUBPARAGRAPH, SUCH PERSON OR
PERSONS SHALL BE PRESUMED TO SATISFY THE APPLICABLE INCOME-ELIGIBILITY
REQUIREMENTS EACH YEAR THEREAFTER AND SHALL NOT BE REQUIRED TO CONTINUE
TO FILE SUCH STATEMENTS IN THE ABSENCE OF A SPECIFIC REQUEST THEREFOR
FROM THE COMMISSIONER. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO
PREVENT THE COMMISSIONER FROM DENYING AN EXEMPTION PURSUANT TO THIS
SECTION WHEN THE COMMISSIONER DETERMINES THAT A PROPERTY OWNER HAS A
SOURCE OF INCOME THAT RENDERS THAT OWNER INELIGIBLE FOR THAT EXEMPTION.
§ 5. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of
subdivision 4 of section 425 of the real property tax law are REPEALED
and a new clause (C) is added to read as follows:
(C) WHEN THE COMMISSIONER DETERMINES THAT PROPERTY IS INELIGIBLE FOR A
STAR EXEMPTION, NOTICE OF SUCH DETERMINATION AND AN OPPORTUNITY FOR
REVIEW THEREOF SHALL BE PROVIDED IN THE MANNER SET FORTH IN SUBDIVISION
FOUR-B OF THIS SECTION.
§ 6. Section 425 of the real property tax law is amended by adding a
new subdivision 4-b to read as follows:
4-B. AUTHORITY OF THE COMMISSIONER IN RELATION TO ELIGIBILITY DETERMI-
NATIONS. (A) (I) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
CONTRARY, IT SHALL BE THE RESPONSIBILITY OF THE COMMISSIONER TO DETER-
MINE ELIGIBILITY FOR THE BASIC AND ENHANCED STAR EXEMPTIONS AUTHORIZED
BY THIS SECTION, IN CONSULTATION WITH LOCAL ASSESSORS AS NECESSARY.
(II) THE COMMISSIONER'S ELIGIBILITY DETERMINATIONS SHALL BE BASED UPON
DATA THE COMMISSIONER HAS OBTAINED FROM LOCAL ASSESSMENT ROLLS, PERSONAL
INCOME TAX RETURNS, THE STAR REGISTRATION PROGRAM, THE STAR INCOME
VERIFICATION PROGRAM AND SUCH OTHER DATA SOURCES AS MAY BE AVAILABLE TO
THE COMMISSIONER.
(III) THE PROCESS FOLLOWED BY THE COMMISSIONER TO VERIFY ELIGIBILITY
FOR THE BASIC AND ENHANCED STAR EXEMPTIONS SHALL BE THE SAME, EXCEPT TO
THE EXTENT THAT DIFFERENCES ARE REQUIRED BY LAW.
(B) IF THE COMMISSIONER SHOULD DETERMINE THAT A PARCEL THAT HAS A
BASIC STAR EXEMPTION IS ELIGIBLE FOR AN ENHANCED STAR EXEMPTION, THE
COMMISSIONER SHALL SO NOTIFY THE ASSESSOR. THE ASSESSOR SHALL THEREUPON
GRANT THE PARCEL AN ENHANCED STAR EXEMPTION WITHOUT REQUESTING A NEW
APPLICATION FROM THE OWNER.
(C) IF THE COMMISSIONER DETERMINES THAT PROPERTY IS NOT ELIGIBLE FOR A
STAR EXEMPTION IT HAS BEEN RECEIVING, THE PROVISIONS OF THIS SUBDIVISION
SHALL BE APPLICABLE.
S. 3009 76 A. 3009
(I) THE COMMISSIONER SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND
AN OPPORTUNITY TO SHOW THE COMMISSIONER THAT THE PROPERTY IS ELIGIBLE TO
RECEIVE THE EXEMPTION. IF THE OWNERS FAIL TO RESPOND TO SUCH NOTICE
WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, OR IF THEIR RESPONSE
DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION THAT THE PROPERTY IS
ELIGIBLE FOR THE EXEMPTION, THE COMMISSIONER SHALL DIRECT THE ASSESSOR
OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL TO REMOVE OR DENY THE EXEMPTION, AND TO CORRECT THE ROLL ACCORDING-
LY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON
HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL
BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION
OR APPROVAL.
(II) NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE
AUTHORITY TO CONSIDER AN OBJECTION TO THE REMOVAL OR DENIAL OF AN
EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE
REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE
OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE
CHALLENGED BEFORE THE DEPARTMENT OF TAXATION AND FINANCE. IF A TAXPAYER
IS DISSATISFIED WITH THE DEPARTMENT'S FINAL DETERMINATION, THE TAXPAYER
MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX
SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH
APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE
DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE STATE BOARD
OF REAL PROPERTY TAX SERVICES' DETERMINATION, THE TAXPAYER MAY SEEK
JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO
CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE
PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER,
THE DEPARTMENT OF TAXATION AND FINANCE, THE STATE BOARD OF REAL PROPERTY
TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF
THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION.
§ 7. The section heading of section 171-u of the tax law, as added by
section 2 of part FF of chapter 57 of the laws of 2010, is amended to
read as follows:
Verification of [income] eligibility for [basic] STAR exemption.
§ 8. Subdivisions 1, 2, 3 and 4 of section 171-u of the tax law are
REPEALED, subdivision 5 is renumbered to be subdivision 2, and a new
subdivision 1 is added to read as follows:
(1) THE COMMISSIONER SHALL VERIFY THE ELIGIBILITY OF PROPERTIES FOR
STAR EXEMPTIONS IN THE MANNER PROVIDED BY SECTION FOUR HUNDRED TWENTY-
FIVE OF THE REAL PROPERTY TAX LAW.
§ 9. Subparagraphs (B) and (E) of paragraph 1 of subsection (eee) of
section 606 of the tax law, subparagraph (B) as amended by section 10 of
part B of chapter 59 of the laws of 2018 and subparagraph (E) as amended
by section 2 of part H of chapter 59 of the laws of 2017, are amended to
read as follows:
(B) (I) "Affiliated income" shall mean [for purposes of the basic STAR
credit,] the combined income of all of the owners of the parcel who
resided primarily thereon as of [December thirty-first] JULY FIRST of
the taxable year, and of any owners' spouses residing primarily thereon
as of such date[, and for purposes of the enhanced STAR credit, the
combined income of all of the owners of the parcel as of December thir-
ty-first of the taxable year, and of any owners' spouses residing prima-
rily thereon as of such date; provided that for both purposes]; PROVIDED
THAT the income to be so combined shall be the "adjusted gross income"
for the taxable year as reported for federal income tax purposes, or
S. 3009 77 A. 3009
that would be reported as adjusted gross income if a federal income tax
return were required to be filed, reduced by distributions, to the
extent included in federal adjusted gross income, received from an indi-
vidual retirement account and an individual retirement annuity.
(II) For taxable years beginning on and after January first, two thou-
sand nineteen, where an income-eligibility determination is wholly or
partly based upon the income of one or more individuals who did not file
a return pursuant to section six hundred fifty-one of this article for
the applicable income tax year, then in order to be eligible for the
credit authorized by this subsection, each such individual must file a
statement with the department showing the source or sources of [his or
her] SUCH INDIVIDUAL'S income for that income tax year, and the amount
or amounts thereof, that would have been reported on such a return if
one had been filed. Such statement shall be filed at such time, and in
such form and manner, as may be prescribed by the department, and shall
be subject to the provisions of section six hundred ninety-seven of this
article to the same extent that a return would be. The department shall
make such forms and instructions available for the filing of such state-
ments. The local assessor shall upon the request of a taxpayer assist
such taxpayer in the filing of the statement with the department.
[Provided further, that if the qualified taxpayer was an owner of the
property during the taxable year but did not own it on December thirty-
first of the taxable year, then the determination as to whether the
income of an individual should be included in "affiliated income" shall
be based upon the ownership and/or residency status of that individual
as of the first day of the month during which the qualified taxpayer
ceased to be an owner of the property, rather than as of December thir-
ty-first of the taxable year.]
(III) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBPARAGRAPH,
WHERE PROPERTY IS OWNED SOLELY BY A PERSON OR PERSONS WHO RECEIVED THE
CREDIT FOR THREE CONSECUTIVE YEARS WITHOUT HAVING FILED RETURNS FOR THE
APPLICABLE INCOME TAX YEARS, BUT WHO DEMONSTRATED THEIR ELIGIBILITY FOR
THE CREDIT TO THE COMMISSIONER'S SATISFACTION BY FILING STATEMENTS
PURSUANT TO CLAUSE (II) OF THIS SUBPARAGRAPH, SUCH PERSON OR PERSONS
SHALL BE PRESUMED TO SATISFY THE APPLICABLE INCOME-ELIGIBILITY REQUIRE-
MENTS EACH YEAR THEREAFTER AND SHALL NOT BE REQUIRED TO CONTINUE TO FILE
SUCH STATEMENTS IN THE ABSENCE OF A SPECIFIC REQUEST THEREFOR FROM THE
COMMISSIONER. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO PREVENT THE
COMMISSIONER FROM DENYING A CREDIT PURSUANT TO THIS SUBSECTION WHEN THE
COMMISSIONER DETERMINES THAT A PROPERTY OWNER HAS A SOURCE OF INCOME
THAT RENDERS THAT OWNER TEMPORARILY OR PERMANENTLY INELIGIBLE FOR THAT
CREDIT.
(E) "Qualifying taxes" means the school district taxes that were OR
ARE TO BE levied upon the taxpayer's primary residence for the associ-
ated fiscal year [that were actually paid by the taxpayer during the
taxable year]; or, in the case of a city school district that is subject
to article fifty-two of the education law, the combined city and school
district taxes that were OR ARE TO BE levied upon the taxpayer's primary
residence for the associated fiscal year [that were actually paid by the
taxpayer during the taxable year]. Provided, however, that in the case
of a cooperative apartment, "qualifying taxes" means the school district
taxes that would have been levied upon the tenant-stockholder's primary
residence if it were separately assessed, as determined by the commis-
sioner based on the statement provided by the assessor pursuant to
subparagraph (ii) of paragraph (k) of subdivision two of section four
hundred twenty-five of the real property tax law, or in the case of a
S. 3009 78 A. 3009
cooperative apartment corporation that is described in subparagraph (iv)
of paragraph (k) of subdivision two of section four hundred twenty-five
of the real property tax law, one third of such amount. In no case shall
the term "qualifying taxes" be construed to include penalties or inter-
est.
§ 10. Paragraph 2 of subsection (eee) of section 606 of the tax law is
REPEALED.
§ 11. The opening paragraph of subparagraph (A) of paragraph 4 and
clause (i) of subparagraph (A) of paragraph 4 of subsection (eee) of
section 606 of the tax law, as amended by section 8 of part A of chapter
73 of the laws of 2016, are amended to read as follows:
Beginning with taxable years after two thousand [fifteen] TWENTY-FOUR,
an enhanced STAR credit shall be available to a qualified taxpayer where
both of the following conditions are satisfied:
(i) [All] AT LEAST ONE of the owners of the parcel that serves as the
taxpayer's primary residence [are] IS at least sixty-five years of age
as of December thirty-first of the taxable year [or, in the case of
property owned by a married couple or by siblings, at least one of the
owners is at least sixty-five years of age as of that date. The terms
"siblings" as used herein shall have the same meaning as set forth in
section four hundred sixty-seven of the real property tax law]. In the
case of property owned by a married couple, [one of whom] IF ONLY ONE OF
THE SPOUSES is sixty-five years of age or over, the credit, once
allowed, shall not be disallowed because of the death of the older
spouse so long as the surviving spouse is at least sixty-two years of
age as of December thirty-first of the taxable year.
§ 12. Subsection (eee) of section 606 of the tax law is amended by
adding a new paragraph 14 to read as follows:
(14) THE PROCESS EMPLOYED BY THE COMMISSIONER IN VERIFYING ELIGIBILITY
FOR THE BASIC STAR CREDIT SHALL BE THE SAME AS FOR THE ENHANCED STAR
CREDIT, EXCEPT TO THE EXTENT THAT DIFFERENCES ARE REQUIRED BY LAW.
§ 13. This act shall take effect immediately; provided, however, that
sections 2, 3, 5, 6, 7, 8, 11 and 12 of this act shall take effect Janu-
ary 1, 2026; and the amendments to clause (i) of subparagraph (B) of
paragraph 1 of subsection (eee) of section 606 of the tax law, as added
by section nine of this act, shall take effect on January 1, 2026.
PART P
Section 1. Subdivision 8 of section 874 of the general municipal law
is REPEALED.
§ 2. Subdivision 3 of section 1963 of the public authorities law is
REPEALED.
§ 3. Subdivision 9 of section 1964-a of the public authorities law is
REPEALED.
§ 4. Subdivision 3 of section 2326 of the public authorities law is
REPEALED.
§ 5. Subdivision 9 of section 2327 of the public authorities law is
REPEALED.
§ 6. This act shall take effect immediately.
PART Q
Section 1. Subsection (c) of section 861 of the tax law, as amended by
section 2 of subpart C of part J of chapter 59 of the laws of 2023, is
amended to read as follows:
S. 3009 79 A. 3009
(c) The annual election must be made on or before [the due date of the
first estimated payment under section eight hundred sixty-four of this
article] SEPTEMBER FIFTEENTH and will take effect for the current taxa-
ble year. Only one election may be made during each calendar year. An
election made under this section is irrevocable after [the due date]
SEPTEMBER FIFTEENTH OF THE TAXABLE YEAR.
§ 2. Subsection (b) of section 864 of the tax law, as added by section
1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by
chapter 555 of the laws of 2022, is amended to read as follows:
(b) General. The estimated tax shall be paid as follows for an elect-
ing partnership and an electing S corporation:
(1) [The estimated tax shall be paid] FOR AN ELECTION TO BE TAXED
PURSUANT TO THIS ARTICLE THAT IS MADE ON OR BEFORE MARCH FIFTEENTH OF
THE TAXABLE YEAR TO BE VALID, THE ELECTING PARTNERSHIP OR ELECTING S
CORPORATION IS REQUIRED TO MAKE ESTIMATED TAX PAYMENTS in four equal
installments on March fifteenth, June fifteenth, September fifteenth and
December fifteenth in the calendar year prior to the year in which the
due date of the return required by this article falls. THE AMOUNT OF
EACH INSTALLMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL
PAYMENT.
(2) [The amount of any required installment shall be twenty-five
percent of the required annual payment] FOR AN ELECTION TO BE TAXED
PURSUANT TO THIS ARTICLE THAT IS MADE AFTER MARCH FIFTEENTH BUT BEFORE
JUNE FIFTEENTH IN THE TAXABLE YEAR TO BE VALID, THE ELECTING PARTNERSHIP
OR ELECTING S CORPORATION IS REQUIRED TO MAKE AN ESTIMATED TAX PAYMENT
WITH ITS ELECTION THAT REPRESENTS TWENTY-FIVE PERCENT OF THE REQUIRED
ANNUAL PAYMENT. THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION SHALL
FURTHER MAKE PAYMENTS ON JUNE FIFTEENTH, SEPTEMBER FIFTEENTH, AND DECEM-
BER FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE DUE
DATE OF THE RETURN REQUIRED BY THIS ARTICLE FALLS, WHICH SHALL EACH
REPRESENT TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(3) FOR AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE THAT IS MADE
ON OR AFTER JUNE FIFTEENTH BUT BEFORE SEPTEMBER FIFTEENTH IN THE TAXABLE
YEAR TO BE VALID, THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION IS
REQUIRED TO MAKE AN ESTIMATED TAX PAYMENT WITH ITS ELECTION THAT REPRES-
ENTS FIFTY PERCENT OF THE REQUIRED ANNUAL PAYMENT. THE ELECTING PARTNER-
SHIP OR ELECTING S CORPORATION SHALL FURTHER MAKE PAYMENTS ON SEPTEMBER
FIFTEENTH AND DECEMBER FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR
IN WHICH THE DUE DATE OF THE RETURN REQUIRED BY THIS ARTICLE FALLS,
WHICH SHALL EACH REPRESENT TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL
PAYMENT.
(4) FOR AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE THAT IS MADE
ON SEPTEMBER FIFTEENTH IN THE TAXABLE YEAR TO BE VALID, THE ELECTING
PARTNERSHIP OR ELECTING S CORPORATION IS REQUIRED TO MAKE AN ESTIMATED
TAX PAYMENT WITH ITS ELECTION THAT REPRESENTS SEVENTY-FIVE PERCENT OF
THE REQUIRED ANNUAL PAYMENT. THE ELECTING PARTNERSHIP OR ELECTING S
CORPORATION SHALL FURTHER MAKE A PAYMENT ON DECEMBER FIFTEENTH IN THE
CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE DUE DATE OF THE RETURN
REQUIRED BY THIS ARTICLE FALLS, WHICH SHALL REPRESENT TWENTY-FIVE
PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(5) Notwithstanding paragraph four of subsection (c) of section six
hundred eighty-five of this chapter, the required annual payment is the
lesser of: (A) ninety percent of the tax shown on the return for the
taxable year; or (B) one hundred percent of the tax shown on the return
of the electing partnership or electing S corporation for the preceding
taxable year.
S. 3009 80 A. 3009
§ 3. Subsection (c) of section 868 of the tax law, as amended by
section 7 of subpart C of part J of chapter 59 of the laws of 2023, is
amended to read as follows:
(c) The annual election to be taxed pursuant to this article must be
made on or before [the due date of the first estimated payment under
section eight hundred sixty-four of this chapter] SEPTEMBER FIFTEENTH
and will take effect for the current taxable year. Only one election to
be taxed pursuant to this article may be made during each calendar year.
An election made under this section is irrevocable after [such due date]
SEPTEMBER FIFTEENTH OF THE TAXABLE YEAR. To the extent an election made
under section eight hundred sixty-one of this chapter is revoked or
otherwise invalidated an election made under this section is automat-
ically invalidated.
§ 4. Subsection (b) of section 871 of the tax law, as added by section
1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3
as amended by chapter 555 of the laws of 2022, is amended to read as
follows:
(b) General. Except as provided in subsection (c) of this section, the
estimated tax shall be paid as follows for an electing city partnership
and an electing city resident S corporation:
(1) [The estimated tax shall be paid] FOR AN ELECTION TO BE TAXED
PURSUANT TO THIS ARTICLE THAT IS MADE ON OR BEFORE MARCH FIFTEENTH IN
THE TAXABLE YEAR TO BE VALID, THE ELECTING CITY PARTNERSHIP OR ELECTING
CITY S CORPORATION IS REQUIRED TO MAKE ESTIMATED TAX PAYMENTS in four
equal installments on March fifteenth, June fifteenth, September
fifteenth and December fifteenth in the calendar year prior to the year
in which the due date of the return required by this article falls. THE
AMOUNT OF EACH INSTALLMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED
ANNUAL PAYMENT.
(2) [The amount of any required installment shall be twenty-five
percent of the required annual payment] FOR AN ELECTION TO BE TAXED
PURSUANT TO THIS ARTICLE THAT IS MADE AFTER MARCH FIFTEENTH BUT BEFORE
JUNE FIFTEENTH IN THE TAXABLE YEAR TO BE VALID, THE ELECTING CITY PART-
NERSHIP OR ELECTING CITY S CORPORATION IS REQUIRED TO MAKE AN ESTIMATED
TAX PAYMENT WITH ITS ELECTION THAT REPRESENTS TWENTY-FIVE PERCENT OF THE
REQUIRED ANNUAL PAYMENT. THE ELECTING CITY PARTNERSHIP OR ELECTING CITY
S CORPORATION SHALL FURTHER MAKE PAYMENTS ON JUNE FIFTEENTH, SEPTEMBER
FIFTEENTH, AND DECEMBER FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR
IN WHICH THE DUE DATE OF THE RETURN REQUIRED BY THIS ARTICLE FALLS,
WHICH SHALL EACH REPRESENT TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL
PAYMENT.
(3) FOR AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE THAT IS MADE
AFTER JUNE FIFTEENTH BUT BEFORE SEPTEMBER FIFTEENTH IN THE TAXABLE YEAR
TO BE VALID, THE ELECTING CITY PARTNERSHIP OR ELECTING CITY S CORPO-
RATION IS REQUIRED TO MAKE AN ESTIMATED TAX PAYMENT WITH ITS ELECTION
THAT REPRESENTS FIFTY PERCENT OF THE REQUIRED ANNUAL PAYMENT. THE ELECT-
ING CITY PARTNERSHIP OR ELECTING CITY S CORPORATION SHALL FURTHER MAKE
PAYMENTS ON SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH IN THE CALENDAR
YEAR PRIOR TO THE YEAR IN WHICH THE DUE DATE OF THE RETURN REQUIRED BY
THIS ARTICLE FALLS, WHICH SHALL EACH REPRESENT TWENTY-FIVE PERCENT OF
THE REQUIRED ANNUAL PAYMENT.
(4) FOR AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE THAT IS MADE
ON SEPTEMBER FIFTEENTH IN THE TAXABLE YEAR TO BE VALID, THE ELECTING
CITY PARTNERSHIP OR ELECTING CITY S CORPORATION IS REQUIRED TO MAKE AN
ESTIMATED TAX PAYMENT WITH ITS ELECTION THAT REPRESENTS SEVENTY-FIVE
PERCENT OF THE REQUIRED ANNUAL PAYMENT. THE ELECTING CITY PARTNERSHIP OR
S. 3009 81 A. 3009
ELECTING CITY S CORPORATION SHALL FURTHER MAKE A PAYMENT ON DECEMBER
FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE DUE DATE
OF THE RETURN REQUIRED BY THIS ARTICLE FALLS, WHICH SHALL REPRESENT
TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(5) Without regard to paragraph four of subsection (c) of section six
hundred eighty-five of this chapter, the required annual payment is the
lesser of: (A) ninety percent of the tax shown on the return for the
taxable year; or (B) one hundred percent of the tax shown on the return
of the electing city partnership or electing city resident S corporation
for the preceding taxable year.
§ 5. This act shall take effect immediately and shall apply to all
taxable years beginning on or after January 1, 2026.
PART R
Section 1. Subdivision (a) of section 213-a of the tax law, as amended
by chapter 166 of the laws of 1991, is amended to read as follows:
(a) Requirement of declaration.--Every taxpayer subject to the tax
imposed by section two hundred nine of this chapter shall make a decla-
ration of its estimated tax for the current privilege period, containing
such information as the commissioner of taxation and finance may
prescribe by regulations or instructions, if such estimated tax can
reasonably be expected to exceed one thousand dollars, OR FIVE THOUSAND
DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX. If a taxpayer is subject to the tax surcharge imposed
under section two hundred nine-B of this article and such taxpayer's
estimated tax under section two hundred nine of this article can reason-
ably be expected to exceed one thousand dollars, OR FIVE THOUSAND
DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, such taxpayer shall also make a declaration of its
estimated tax surcharge for the current privilege period.
§ 2. Subdivision (a) of section 213-b of the tax law, as amended by
section 4 of part Z of chapter 59 of the laws of 2019, is amended to
read as follows:
(a) First installments for certain taxpayers.--In privilege periods of
twelve months ending at any time during the calendar year nineteen
hundred seventy and thereafter, every taxpayer subject to the tax
imposed by section two hundred nine of this [chapter] ARTICLE must pay
with the report required to be filed for the preceding privilege period,
or with an application for extension of the time for filing the report,
for taxable years beginning before January first, two thousand sixteen,
and must pay on or before the fifteenth day of the third month of such
privilege periods, for taxable years beginning on or after January
first, two thousand sixteen, an amount equal to (i) twenty-five percent
of the second preceding year's tax if the second preceding year's tax
exceeded one thousand dollars, OR FIVE THOUSAND DOLLARS FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, but
was equal to or less than one hundred thousand dollars, or (ii) forty
percent of the second preceding year's tax if the second preceding
year's tax exceeded one hundred thousand dollars. If the second preced-
ing year's tax under section two hundred nine of this chapter exceeded
one thousand dollars, OR FIVE THOUSAND DOLLARS FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, and the taxpay-
er is subject to the tax surcharge imposed by section two hundred nine-B
of this [chapter] ARTICLE, the taxpayer must also pay with the tax
surcharge report required to be filed for the second preceding privilege
S. 3009 82 A. 3009
period, or with an application for extension of the time for filing the
report, for taxable years beginning before January first, two thousand
sixteen, and must pay on or before the fifteenth day of the third month
of such privilege periods, for taxable years beginning on or after Janu-
ary first, two thousand sixteen, an amount equal to (i) twenty-five
percent of the tax surcharge imposed for the second preceding year if
the second preceding year's tax was equal to or less than one hundred
thousand dollars, or (ii) forty percent of the tax surcharge imposed for
the second preceding year if the second preceding year's tax exceeded
one hundred thousand dollars. Provided, however, that every taxpayer
that is a New York S corporation must pay with the report required to be
filed for the preceding privilege period, or with an application for
extension of the time for filing the report, an amount equal to (i)
twenty-five percent of the preceding year's tax if the preceding year's
tax exceeded one thousand dollars, OR FIVE THOUSAND DOLLARS FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, but
was equal to or less than one hundred thousand dollars, or (ii) forty
percent of the preceding year's tax if the preceding year's tax exceeded
one hundred thousand dollars.
§ 3. This act shall take effect immediately.
PART S
Section 1. Section 606 of the tax law is amended by adding a new
subsection (qqq) to read as follows:
(QQQ) ORGAN DONATION CREDIT. (1) FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, A FULL-YEAR RESIDENT
TAXPAYER WHO, WHILE LIVING, DONATES ONE OR MORE OF THEIR HUMAN ORGANS TO
ANOTHER HUMAN BEING FOR HUMAN ORGAN TRANSPLANTATION WILL BE ALLOWED A
CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE IN THE AMOUNT SPECIFIED
IN PARAGRAPH TWO OF THIS SUBSECTION. FOR PURPOSES OF THIS PARAGRAPH,
"HUMAN ORGAN" MEANS ALL OR PART OF A LIVER, PANCREAS, KIDNEY, INTESTINE,
LUNG, OR BONE MARROW.
(2) A TAXPAYER MAY CLAIM THE CREDIT ALLOWED UNDER THIS SUBSECTION ONLY
ONCE AND IN THE TAXABLE YEAR IN WHICH THE HUMAN ORGAN TRANSPLANTATION
OCCURS. SUCH CREDIT MAY BE CLAIMED, IN AN AMOUNT NOT TO EXCEED TEN THOU-
SAND DOLLARS, FOR ONLY THE FOLLOWING UNREIMBURSED EXPENSES THAT ARE
INCURRED BY THE TAXPAYER AND RELATED TO THE TAXPAYER'S ORGAN DONATION:
(A) TRAVEL EXPENSES;
(B) LODGING EXPENSES; AND
(C) LOST WAGES.
PROVIDED, HOWEVER, THAT THIS CREDIT SHALL NOT APPLY TO ANY ORGAN
DONATION FOR WHICH THE TAXPAYER HAS RECEIVED BENEFITS UNDER SECTION
FORTY-THREE HUNDRED SEVENTY-ONE OF THE PUBLIC HEALTH LAW.
(3) 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.
§ 2. Paragraph 38 of subsection (c) of section 612 of the tax law, as
added by chapter 565 of the laws of 2006, the opening paragraph as
amended by chapter 814 of the laws of 2022, is amended to read as
follows:
(38) [An] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, AN amount of up to ten thousand dollars if a taxpayer,
while living, donates one or more of [his or her] THE TAXPAYER'S human
S. 3009 83 A. 3009
organs to another human being for human organ transplantation. For
purposes of this paragraph, "human organ" means all or part of a liver,
pancreas, kidney, intestine, lung, or bone marrow. A subtract modifica-
tion allowed under this paragraph shall be claimed in the taxable year
in which the human organ transplantation occurs. Provided, however, that
this deduction shall not apply to any donation for which the taxpayer
has received benefits under section forty-three hundred seventy-one of
the public health law.
(A) A taxpayer shall claim the subtract modification allowed under
this paragraph only once and such subtract modification shall be claimed
for only the following unreimbursed expenses which are incurred by the
taxpayer and related to the taxpayer's organ donation:
(i) travel expenses;
(ii) lodging expenses; and
(iii) lost wages.
(B) The subtract modification allowed under this paragraph shall not
be claimed by a part-year resident or a non-resident of this state.
§ 3. This act shall take effect immediately.
PART T
Section 1. Paragraph 3 of subsection (a) of section 954 of the tax
law, as amended by section 1 of part F of chapter 59 of the laws of
2019, is amended to read as follows:
(3) Increased by the amount of any taxable gift under section 2503 of
the internal revenue code not otherwise included in the decedent's
federal gross estate, made during the three year period ending on the
decedent's date of death, but not including any gift made: (A) when the
decedent was not a resident of New York state; or (B) before April
first, two thousand fourteen; or (C) between January first, two thousand
nineteen and January fifteenth, two thousand nineteen; or (D) that is
real or tangible personal property having an actual situs outside New
York state at the time the gift was made. [Provided, however that this
paragraph shall not apply to the estate of a decedent dying on or after
January first, two thousand twenty-six.]
§ 2. This act shall take effect immediately.
PART U
Section 1. Paragraphs (c) and (d) of subdivision 12 of section 210-B
of the tax law, as added by section 17 of part A of chapter 59 of the
laws of 2014, are amended to read as follows:
(c) Amount of credit. Except as provided in paragraph (d) of this
subdivision, the amount of credit FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE shall be thirty-five percent of
the first six thousand dollars in qualified first-year wages earned by
each qualified employee AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST FIVE THOUSAND
DOLLARS IN QUALIFIED FIRST-YEAR WAGES EARNED BY EACH QUALIFIED EMPLOYEE.
"Qualified first-year wages" means wages paid or incurred by the taxpay-
er during the taxable year to qualified employees which are attribut-
able, with respect to any such employee, to services rendered during the
one-year period beginning with the day the employee begins work for the
taxpayer.
(d) Credit where federal work opportunity tax credit applies. With
respect to any qualified employee whose qualified first-year wages under
S. 3009 84 A. 3009
paragraph (c) of this subdivision also constitute qualified first-year
wages for purposes of the work opportunity tax credit for vocational
rehabilitation referrals under section fifty-one of the internal revenue
code, the amount of credit under this subdivision FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE shall be thir-
ty-five percent of the first six thousand dollars in qualified second-
year wages earned by each such employee AND FOR TAXABLE YEARS BEGINNING
ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST
FIVE THOUSAND DOLLARS IN QUALIFIED SECOND-YEAR WAGES EARNED BY EACH
QUALIFIED EMPLOYEE. "Qualified second-year wages" means wages paid or
incurred by the taxpayer during the taxable year to qualified employees
which are attributable, with respect to any such employee, to services
rendered during the one-year period beginning one year after the employ-
ee begins work for the taxpayer.
§ 2. Paragraphs 3 and 4 of subsection (o) of section 606 of the tax
law, as added by chapter 142 of the laws of 1997, are amended to read as
follows:
(3) Amount of credit. Except as provided in paragraph four of this
subsection, the amount of credit FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE shall be thirty-five percent of
the first six thousand dollars in qualified first-year wages earned by
each qualified employee AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST FIVE THOUSAND
DOLLARS IN QUALIFIED FIRST-YEAR WAGES EARNED BY EACH QUALIFIED EMPLOYEE.
"Qualified first-year wages" means wages paid or incurred by the taxpay-
er during the taxable year to qualified employees which are attribut-
able, with respect to any such employee, to services rendered during the
one-year period beginning with the day the employee begins work for the
taxpayer.
(4) Credit where federal work opportunity tax credit applies. With
respect to any qualified employee whose qualified first-year wages under
paragraph three of this subsection also constitute qualified first-year
wages for purposes of the work opportunity tax credit for vocational
rehabilitation referrals under section fifty-one of the internal revenue
code, the amount of credit under this subsection shall be FOR TAXABLE
YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE thirty-
five percent of the first six thousand dollars in qualified second-year
wages earned by each such employee AND FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE SHALL BE THE FIRST FIVE
THOUSAND DOLLARS IN QUALIFIED SECOND-YEAR WAGES EARNED BY EACH QUALIFIED
EMPLOYEE. "Qualified second-year wages" means wages paid or incurred by
the taxpayer during the taxable year to qualified employees which are
attributable, with respect to any such employee, to services rendered
during the one-year period beginning one year after the employee begins
work for the taxpayer.
§ 3. This act shall take effect immediately.
PART V
Section 1. Subdivision 3 of section 211 of the tax law, as amended by
section 19 of part A chapter 59 of the laws of 2014, is amended to read
as follows:
3. If the amount of taxable income for any year of any taxpayer
(including any taxpayer which has elected to be taxed under subchapter s
of chapter one of the internal revenue code), as returned to the United
States treasury department is changed or corrected by the commissioner
S. 3009 85 A. 3009
of internal revenue or other officer of the United States or other
competent authority, or where a renegotiation of a contract or subcon-
tract with the United States results in a change in taxable income, such
taxpayer shall report such changed or corrected taxable income, or the
results of such renegotiation, within ninety days (or one hundred twenty
days, in the case of a taxpayer making a combined report under this
article for such year) after the final determination of such change or
correction or renegotiation, or as required by the commissioner, and
shall concede the accuracy of such determination or state wherein it is
erroneous. PROVIDED HOWEVER, IF THE TAXPAYER IS A DIRECT OR INDIRECT
PARTNER OF A PARTNERSHIP REQUIRED TO REPORT ADJUSTMENTS IN ACCORDANCE
WITH SECTION SIX HUNDRED FIFTY-NINE-A OF THIS CHAPTER, SUCH TAXPAYER
SHALL ALSO REPORT SUCH ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX
HUNDRED FIFTY-NINE-A OF THIS CHAPTER WHEN SUCH ADJUSTMENTS RESULT IN AN
OVERPAYMENT. The allowance of a tentative carryback adjustment based
upon a net operating loss carryback or net capital loss carryback pursu-
ant to section sixty-four hundred eleven of the internal revenue code,
as amended, shall be treated as a final determination for purposes of
this subdivision. Any taxpayer filing an amended return with such
department shall also file within ninety days (or one hundred twenty
days, in the case of a taxpayer making a combined report under this
article for such year) thereafter an amended report with the commission-
er.
§ 2. Subsection (b) of section 653 of the tax law, as added by chapter
563 of the laws of 1960, is amended to read as follows:
(b) Partnerships. Any return, statement or other document required of
a partnership shall be signed by one or more partners. The fact that a
partner's name is signed to a return, statement, or other document,
shall be prima facie evidence for all purposes that such partner is
authorized to sign on behalf of the partnership.
(1) IF A PARTNERSHIP IS REQUIRED TO REPORT FEDERAL ADJUSTMENTS ARISING
FROM A PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST
PURSUANT TO SECTION SIX HUNDRED FIFTY-NINE-A OF THIS PART, THE PARTNER-
SHIP'S FEDERAL PARTNERSHIP REPRESENTATIVE IS THE NEW YORK PARTNERSHIP
REPRESENTATIVE UNLESS THE PARTNERSHIP DESIGNATES, IN A MANNER DETERMINED
BY THE COMMISSIONER, THAT ANOTHER PERSON SHALL ACT ON BEHALF OF THE
PARTNERSHIP.
(2) THE NEW YORK PARTNERSHIP REPRESENTATIVE SHALL HAVE THE SOLE
AUTHORITY TO ACT ON BEHALF OF THE PARTNERSHIP AND ITS DIRECT AND INDI-
RECT PARTNERS SHALL BE BOUND BY THESE ACTIONS.
§ 3. Section 659 of the tax law, as amended by section 8 of part J of
chapter 59 of the laws of 2014, is amended to read as follows:
§ 659. Report of federal changes, corrections or disallowances. If the
amount of a taxpayer's federal taxable income, total taxable amount or
ordinary income portion of a lump sum distribution or includible gain of
a trust reported on [his] THEIR federal income tax return for any taxa-
ble year, or the amount of a taxpayer's earned income credit or credit
for employment-related expenses set forth on such return, or the amount
of any federal foreign tax credit affecting the calculation of the cred-
it for Canadian provincial taxes under section six hundred twenty or six
hundred twenty-A of this article, or the amount of any claim of right
adjustment, is changed or corrected by the United States internal reven-
ue service or other competent authority or as the result of a renegoti-
ation of a contract or subcontract with the United States, or the amount
an employer is required to deduct and withhold from wages for federal
income tax withholding purposes is changed or corrected by such service
S. 3009 86 A. 3009
or authority or if a taxpayer's claim for credit or refund of federal
income tax is disallowed in whole or in part, the taxpayer or employer
shall report such change or correction or disallowance within ninety
days after the final determination of such change, correction, renegoti-
ation or disallowance, or as otherwise required by the commissioner, and
shall concede the accuracy of such determination or state wherein it is
erroneous. PROVIDED, HOWEVER, IF THE TAXPAYER IS A DIRECT OR INDIRECT
PARTNER OF A PARTNERSHIP REQUIRED TO REPORT ADJUSTMENTS IN ACCORDANCE
WITH SECTION SIX HUNDRED FIFTY-NINE-A OF THIS PART, SUCH TAXPAYER SHALL
ALSO REPORT SUCH ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX HUNDRED
FIFTY-NINE-A OF THIS PART WHEN SUCH ADJUSTMENTS RESULT IN AN OVERPAY-
MENT. The allowance of a tentative carryback adjustment based upon a net
operating loss carryback pursuant to section sixty-four hundred eleven
of the internal revenue code shall be treated as a final determination
for purposes of this section. Any taxpayer filing an amended federal
income tax return and any employer filing an amended federal return of
income tax withheld shall also file within ninety days thereafter an
amended return under this article, and shall give such information as
the commissioner may require. The commissioner may by regulation
prescribe such exceptions to the requirements of this section as [he or
she deems] THEY DEEM appropriate. For purposes of this section, (i) the
term "taxpayer" shall include a partnership having a resident partner or
having any income derived from New York sources, and a corporation with
respect to which the taxable year of such change, correction, disallow-
ance or amendment is a year with respect to which the election provided
for in subsection (a) of section six hundred sixty of this article is in
effect, and (ii) the term "federal income tax return" shall include the
returns of income required under sections six thousand thirty-one and
six thousand thirty-seven of the internal revenue code. In the case of
such a corporation, such report shall also include any change or
correction of the taxes described in paragraphs two and three of
subsection (f) of section thirteen hundred sixty-six of the internal
revenue code. Reports made under this section by a partnership or corpo-
ration shall indicate the portion of the change in each item of income,
gain, loss or deduction (and, in the case of a corporation, of each
change in, or disallowance of a claim for credit or refund of, a tax
referred to in the preceding sentence) allocable to each partner or
shareholder and shall set forth such identifying information with
respect to such partner or shareholder as may be prescribed by the
commissioner.
§ 4. The tax law is amended by adding a new section 659-a to read as
follows:
§ 659-A. REPORTING OF FEDERAL PARTNERSHIP ADJUSTMENTS. (A) IF ANY
ITEM REQUIRED TO BE SHOWN ON A FEDERAL PARTNERSHIP RETURN, FOR ANY PART-
NERSHIP THAT HAS A RESIDENT PARTNER OR ANY INCOME DERIVED FROM NEW YORK
SOURCES, INCLUDING ANY GROSS INCOME, GAIN, LOSS, DEDUCTION, PENALTY,
CREDIT, OR TAX FOR ANY YEAR OF SUCH PARTNERSHIP, INCLUDING ANY AMOUNT OF
ANY PARTNER'S DISTRIBUTIVE SHARE, IS CHANGED OR CORRECTED BY THE COMMIS-
SIONER OF INTERNAL REVENUE OR OTHER OFFICER OF THE UNITED STATES OR
OTHER COMPETENT AUTHORITY, AND THE PARTNERSHIP IS ISSUED AN ADJUSTMENT
UNDER SECTION SIXTY-TWO HUNDRED TWENTY-FIVE OF THE INTERNAL REVENUE CODE
OR MAKES A FEDERAL ELECTION FOR ALTERNATIVE PAYMENT WITH THE UNITED
STATES INTERNAL REVENUE SERVICE AS PART OF A PARTNERSHIP LEVEL AUDIT, OR
FILES AN ADMINISTRATIVE ADJUSTMENT REQUEST, THE PARTNERSHIP SHALL
REPORT, IN THE MANNER PRESCRIBED BY THE COMMISSIONER, EACH CHANGE OR
CORRECTION IN SUFFICIENT DETAIL TO ALLOW FOR THE COMPUTATION OF THE NEW
S. 3009 87 A. 3009
YORK TAX CHANGE OR CORRECTION FOR THE REVIEWED YEAR WITHIN NINETY DAYS
AFTER THE DATE OF EACH FINAL FEDERAL DETERMINATION, OR NINETY DAYS AFTER
THE FILING OF AN ADMINISTRATIVE ADJUSTMENT REQUEST.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "ADMINISTRATIVE ADJUSTMENT REQUEST" MEANS AN ADMINISTRATIVE
ADJUSTMENT REQUEST FILED BY A PARTNERSHIP UNDER SECTION SIXTY-TWO
HUNDRED TWENTY-SEVEN OF THE INTERNAL REVENUE CODE.
(2) "DIRECT PARTNER" MEANS A PARTNER THAT HOLDS AN INTEREST DIRECTLY
IN AN IMPACTED PARTNERSHIP DURING THE REVIEWED YEAR.
(3) "FEDERAL ELECTION FOR ALTERNATIVE PAYMENT" MEANS THE ELECTION
DESCRIBED IN SECTION SIXTY-TWO HUNDRED TWENTY-SIX OF THE INTERNAL REVEN-
UE CODE, RELATING TO ALTERNATIVE PAYMENT OF IMPUTED UNDERPAYMENT BY
PARTNERSHIP.
(4) "FINAL FEDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OF GROSS
INCOME, GAIN, LOSS, DEDUCTION, PENALTY, CREDIT, OR A PARTNER'S DISTRIBU-
TIVE SHARE, OF AN IMPACTED PARTNERSHIP DETERMINED UNDER SECTION SIXTY-
TWO HUNDRED TWENTY-FIVE OF THE INTERNAL REVENUE CODE THAT IS CONSIDERED
FIXED AND FINAL UNDER THE INTERNAL REVENUE CODE.
(5) "FINAL FEDERAL DETERMINATION DATE" MEANS THE DATE ON WHICH EACH
ADJUSTMENT OR RESOLUTION RESULTING FROM A UNITED STATES INTERNAL REVENUE
SERVICE EXAMINATION IS ASSESSED PURSUANT TO SECTION SIXTY-TWO HUNDRED
THREE OF THE INTERNAL REVENUE CODE.
(6) "IMPACTED PARTNERSHIP" MEANS A PARTNERSHIP THAT (I) WAS ISSUED A
FINAL FEDERAL ADJUSTMENT; OR (II) MADE A FEDERAL ELECTION FOR ALTERNA-
TIVE PAYMENT WITH THE UNITED STATES INTERNAL REVENUE SERVICE AS PART OF
A FEDERAL PARTNERSHIP LEVEL AUDIT; OR (III) FILED AN ADMINISTRATIVE
ADJUSTMENT REQUEST WITH THE INTERNAL REVENUE SERVICE.
(7) "INDIRECT PARTNER" MEANS A PARTNER, MEMBER, OR SHAREHOLDER IN A
PARTNERSHIP OR OTHER PASS-THROUGH ENTITY THAT ITSELF HELD AN INTEREST
INDIRECTLY, OR THROUGH ANOTHER INDIRECT PARTNER, IN AN IMPACTED PARTNER-
SHIP DURING THE REVIEWED YEAR.
(8) "REVIEWED YEAR" HAS THE MEANING PROVIDED IN PARAGRAPH ONE OF
SUBSECTION (D) OF SECTION SIXTY-TWO HUNDRED TWENTY-FIVE OF THE INTERNAL
REVENUE CODE.
(9) "TIERED PARTNER" MEANS ANY PARTNER IN AN IMPACTED PARTNERSHIP THAT
IS A PARTNERSHIP, S CORPORATION, OR OTHER PASS-THROUGH ENTITY FOR NEW
YORK TAX PURPOSES.
(C)(1) IMPACTED PARTNERSHIPS MUST FILE ANY REQUIRED REPORTS AND PAY
ANY NEW YORK TAX DUE, IF APPLICABLE, WITH RESPECT TO A FINAL FEDERAL
ADJUSTMENT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST NO LATER THAN NINETY
DAYS AFTER THE FINAL FEDERAL DETERMINATION DATE, OR THE DATE AN ADMINIS-
TRATIVE ADJUSTMENT REQUEST WAS FILED, IN ACCORDANCE WITH SUBSECTION (D)
OF THIS SECTION.
(2) NOTWITHSTANDING ANY ELECTION MADE FOR FEDERAL PURPOSES UNDER THE
PROVISIONS OF SUBCHAPTER C OF CHAPTER SIXTY-THREE OF THE INTERNAL REVEN-
UE CODE, ANY CHANGES OR CORRECTIONS MADE BY THE UNITED STATES INTERNAL
REVENUE SERVICE PURSUANT TO SUCH A FINAL FEDERAL ADJUSTMENT OR AS A
RESULT OF AN ADMINISTRATIVE ADJUSTMENT REQUEST THAT INCREASES NEW YORK
TAXABLE INCOME MUST BE CALCULATED WITH RESPECT TO THE IMPACTED PARTNER-
SHIP IN THE REVIEWED YEAR, AND ANY ADDITIONAL NEW YORK TAX OWED AS A
RESULT OF SUCH A FINAL FEDERAL ADJUSTMENT OR ADMINISTRATIVE ADJUSTMENT
REQUEST MUST BE PAID BY THE IMPACTED PARTNERSHIP AS COMPUTED IN ACCORD-
ANCE WITH SUBSECTION (D) OF THIS SECTION.
(3) NOTWITHSTANDING ANY ELECTION MADE FOR FEDERAL PURPOSES UNDER THE
PROVISIONS OF SUBCHAPTER C OF CHAPTER SIXTY-THREE OF THE INTERNAL REVEN-
S. 3009 88 A. 3009
UE CODE, WHERE CHANGES OR CORRECTIONS MADE BY THE UNITED STATES INTERNAL
REVENUE SERVICE PURSUANT TO SUCH A FINAL FEDERAL ADJUSTMENT OR AS A
RESULT OF AN ADMINISTRATIVE ADJUSTMENT REQUEST DECREASE NEW YORK TAXABLE
INCOME, THE PARTNERS MAY REQUEST ANY RESULTING OVERPAYMENT AS PERMITTED
UNDER THIS ARTICLE AND ARTICLES NINE-A AND THIRTY-THREE OF THIS CHAPTER.
(D) REPORTING AND PAYMENT REQUIREMENTS FOR IMPACTED PARTNERSHIPS AND
PARTNERS SUBJECT TO A FINAL FEDERAL ADJUSTMENT OR ADMINISTRATIVE ADJUST-
MENT REQUEST.
(1) IMPACTED PARTNERSHIPS MUST REPORT ANY FINAL FEDERAL ADJUSTMENTS
AND ADMINISTRATIVE ADJUSTMENT REQUESTS REGARDLESS OF TAX IMPACT. SUCH
REPORT MUST INCLUDE THE IMPACTED PARTNERSHIP'S DIRECT AND INDIRECT PART-
NER IDENTIFYING INFORMATION AND ANY OTHER INFORMATION THE COMMISSIONER
MAY REQUIRE.
(2) FOR THE PARTNERSHIP ADJUSTMENTS DESCRIBED IN PARAGRAPH TWO OF
SUBSECTION (C) OF THIS SECTION, THE IMPACTED PARTNERSHIP MUST:
(A) REPORT THE SUM OF THE FOLLOWING AMOUNTS ATTRIBUTABLE TO EACH OF
ITS DIRECT PARTNERS AND INDIRECT PARTNERS AS FOLLOWS:
(I) FOR PARTNERS SUBJECT TO TAX PURSUANT TO ARTICLES NINE-A OR THIR-
TY-THREE OF THIS CHAPTER IN THE REVIEWED YEAR, OTHER THAN TIERED PART-
NERS, THE PARTNER'S DISTRIBUTIVE SHARE OF GROSS INCOME OR GAIN, APPOR-
TIONED TO NEW YORK USING A PERCENTAGE USING THE APPORTIONMENT RULES
DESCRIBED IN ARTICLE NINE-A OF THIS CHAPTER;
(II) FOR A PARTNER SUBJECT TO TAX PURSUANT TO THIS ARTICLE THAT IS
TREATED AS A NONRESIDENT PURSUANT TO PARAGRAPH TWO OF SUBSECTION (B) OF
SECTION SIX HUNDRED FIVE OF THIS ARTICLE IN THE REVIEWED YEAR, OTHER
THAN A TIERED PARTNER, THE PARTNER'S DISTRIBUTIVE SHARE OF GROSS INCOME
OR GAIN ALLOCATED TO NEW YORK USING THE ALLOCATION RULES DESCRIBED IN
THIS ARTICLE;
(III) FOR A PARTNER SUBJECT TO TAX PURSUANT TO THIS ARTICLE THAT IS
TREATED AS A RESIDENT PURSUANT TO PARAGRAPH ONE OF SUBSECTION (B) OF
SECTION SIX HUNDRED FIVE OF THIS ARTICLE IN THE REVIEWED YEAR, OTHER
THAN A TIERED PARTNER, THE PARTNER'S FEDERAL DISTRIBUTIVE SHARE OF GROSS
INCOME OR GAIN; AND
(IV) FOR A PARTNER SUBJECT TO TAX PURSUANT TO ARTICLE THIRTY OF THIS
CHAPTER THAT IS TREATED AS A RESIDENT PURSUANT TO SUBSECTION (A) OF
SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER IN THE REVIEWED YEAR,
OTHER THAN TIERED PARTNERS, THE PARTNER'S FEDERAL DISTRIBUTIVE SHARE OF
GROSS INCOME OR GAIN.
(B) FOR PURPOSES OF COMPUTING THE DISTRIBUTIVE SHARE OF GROSS INCOME
OR GAIN ATTRIBUTABLE TO TIERED PARTNERS, THE PARTNERSHIP SHALL COMPUTE
THE DISTRIBUTIVE SHARE OF EACH INDIRECT PARTNER THAT ITSELF IS NOT A
TIERED PARTNER, BASED ON THE RULES IN SUBPARAGRAPH (A) OF PARAGRAPH TWO
OF THIS SUBSECTION. PROVIDED, HOWEVER, IF THE IMPACTED PARTNERSHIP LACKS
THE NECESSARY INFORMATION TO COMPUTE THE DISTRIBUTIVE SHARE OF:
(I) ONE OR MORE INDIRECT PARTNERS TAXABLE UNDER ARTICLES NINE-A AND
THIRTY-THREE OF THIS CHAPTER, SUCH INDIRECT PARTNER OR PARTNERS MUST
ALLOCATE ONE HUNDRED PERCENT OF SUCH TAXPAYER'S DISTRIBUTIVE SHARE OF
THE ADJUSTMENT TO THE STATE.
(II) ONE OR MORE INDIRECT PARTNERS TAXABLE UNDER THIS ARTICLE, SUCH
INDIRECT PARTNER OR PARTNERS MUST BE TREATED AS A RESIDENT PURSUANT TO
SUBSECTION (A) OF SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER.
(C) THE IMPACTED PARTNERSHIP SHALL COMPUTE TAX DUE BY COMPUTING THE
SUM OF:
(I) THE CUMULATIVE DISTRIBUTIVE SHARE OF ALL DIRECT AND INDIRECT PART-
NERS AS COMPUTED UNDER CLAUSES (I), (II), (III), AND (IV) OF SUBPARA-
GRAPH (A) OF PARAGRAPH (2) OF SUBSECTION (D) OF THIS SECTION, MULTIPLIED
S. 3009 89 A. 3009
BY THE HIGHEST TAX RATE IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS
ARTICLE FOR THE REVIEWED YEAR, AND
(II) THE CUMULATIVE DISTRIBUTIVE SHARE OF ALL DIRECT AND INDIRECT
PARTNERS AS COMPUTED UNDER CLAUSE (IV) OF SUBPARAGRAPH (A) OF PARAGRAPH
TWO OF THIS SUBSECTION, MULTIPLIED BY THE HIGHEST RATE IMPOSED UNDER
SECTION THIRTEEN HUNDRED FOUR OF THIS CHAPTER FOR THE REVIEWED YEAR.
(D) THE PARTNERSHIP SHALL BE REQUIRED TO REMIT ANY ADDITIONAL AMOUNT
OF TAX DUE, PLUS ANY PENALTY AND INTEREST COMPUTED UNDER THIS ARTICLE
BASED ON THE DUE DATE OF THE ORIGINALLY FILED RETURN OF THE REVIEWED
YEAR.
(3) THE IMPACTED PARTNERSHIP MUST INFORM EACH DIRECT AND INDIRECT
PARTNER OF PARTNERSHIP ADJUSTMENTS DESCRIBED IN PARAGRAPH THREE OF
SUBSECTION (C) OF THIS SECTION IN THE MANNER REQUIRED BY THE COMMISSION-
ER.
(E) STATUTE OF LIMITATIONS FOR ASSESSMENTS OF ADDITIONAL NEW YORK
STATE TAX, INTEREST, AND PENALTIES ARISING FROM ADJUSTMENTS TO FEDERAL
TAXABLE INCOME.
(1) IF THE IMPACTED PARTNERSHIP FILES A REPORT WITHIN THE PERIOD SPEC-
IFIED IN SUBSECTION (C) OF THIS SECTION, THE COMMISSIONER MAY ASSESS AN
IMPACTED PARTNERSHIP ADDITIONAL TAX, INTEREST, AND PENALTIES ARISING
FROM FINAL FEDERAL ADJUSTMENTS OR ADMINISTRATIVE ADJUSTMENT REQUESTS
PURSUANT TO THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-THREE OF THIS
ARTICLE.
(2) IF AN IMPACTED PARTNERSHIP FAILS TO FILE A REPORT AS REQUIRED IN
SUBSECTION (C) OF THIS SECTION, THE COMMISSIONER MAY ASSESS THE IMPACTED
PARTNERSHIP ADDITIONAL TAX, INTEREST, AND PENALTIES ARISING FROM FINAL
FEDERAL ADJUSTMENTS OR ADMINISTRATIVE ADJUSTMENT REQUESTS PURSUANT TO
THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-ONE OF THIS ARTICLE.
(F) NOTHING IN THIS SECTION SHALL PREVENT THE COMMISSIONER FROM
ASSESSING DIRECT OR INDIRECT PARTNERS FOR ANY TAXES DUE, USING THE BEST
INFORMATION AVAILABLE, IN THE EVENT THAT AN IMPACTED PARTNERSHIP FAILS
TO TIMELY REPORT OR REMIT ANY REPORT OR ADDITIONAL TAXES DUE REQUIRED BY
THIS SECTION FOR ANY REASON.
§ 5. Subsection (e) of section 681 of the tax law, as amended by chap-
ter 381 of the laws of 1975, paragraph 1 as amended by chapter 28 of the
laws of 1987, is amended as follows:
(e) Exceptions where federal changes, corrections or disallowances are
not reported.---
(1) If the taxpayer or employer fails to comply with section six
hundred fifty-nine OR SECTION SIX HUNDRED FIFTY-NINE-A, instead of the
mode and time of assessment provided for in subsection (b) of this
section, the [tax commission] COMMISSIONER may assess a deficiency based
upon such federal change, correction or disallowance by mailing to the
taxpayer a notice of additional tax due specifying the amount of the
deficiency, and such deficiency, together with the interest, additions
to tax and penalties stated in such notice, shall be deemed assessed on
the date such notice is mailed unless within thirty days after the mail-
ing of such notice a report of the federal change, correction or disal-
lowance or an amended return, where such return was required by section
six hundred fifty-nine OR SECTION SIX HUNDRED FIFTY-NINE-A, is filed
accompanied by a statement showing wherein such federal determination
and such notice of additional tax due are erroneous.
(2) Such notice shall not be considered as a notice of deficiency for
the purposes of this section, subsection (f) of section six hundred
eighty-seven (limiting credits or refunds after petition to the [tax
commission] DIVISION OF TAX APPEALS), or subsection (b) of section six
S. 3009 90 A. 3009
hundred eighty-nine (authorizing the filing of a petition with the [tax
commission] DIVISION OF TAX APPEALS based on a notice of deficiency),
nor shall such assessment or the collection thereof be prohibited by the
provisions of subsection (c).
(3) If [a husband and wife] SPOUSES are jointly liable for tax, a
notice of additional tax due may be a single joint notice, except that
if the [tax commission] COMMISSIONER has been notified by either spouse
that separate residences have been established, then, in lieu of the
joint notice, a duplicate original of the joint notice shall be mailed
to each spouse at [his or her] THEIR last known address in or out of
this state. If the taxpayer is deceased or under a legal disability, a
notice of additional tax due may be mailed to [his] THEIR last known
address in or out of this state, unless the [tax commission] COMMISSION-
ER has received notice of the existence of a fiduciary relationship with
respect to the taxpayer.
§ 6. Subsection (a) of section 682 of the tax law, as amended by
section 3 of part F of chapter 60 of the laws of 2004, is amended to
read as follows:
(a) Assessment date.--The amount of tax which a return shows to be
due, or the amount of tax which a return would have shown to be due but
for a mathematical or clerical error, shall be deemed to be assessed on
the date of filing of the return (including any amended return showing
an increase of tax). In the case of a return properly filed without
computation of tax, the tax computed by the commissioner shall be deemed
to be assessed on the date on which payment is due. If a notice of defi-
ciency has been mailed, the amount of the deficiency shall be deemed to
be assessed on the date specified in subsection (b) of section six
hundred eighty-one if no petition to the division of tax appeals is
filed, or if a petition is filed, then upon the date when a determi-
nation or decision rendered in the division of tax appeals establishing
the amount of the deficiency becomes final. If an amended return or
report filed pursuant to section six hundred fifty-nine OR SIX HUNDRED
FIFTY-NINE-A concedes the accuracy of a federal change or correction,
any deficiency in tax under this article resulting therefrom shall be
deemed to be assessed on the date of filing such report or amended
return, and such assessment shall be timely notwithstanding section six
hundred eighty-three. If a notice of additional tax due, as prescribed
in subsection (e) of section six hundred eighty-one, has been mailed,
the amount of the deficiency shall be deemed to be assessed on the date
specified in such subsection unless within thirty days after the mailing
of such notice a report of the federal change or correction or an
amended return, where such return was required by section six hundred
fifty-nine OR SIX HUNDRED FIFTY-NINE-A, is filed accompanied by a state-
ment showing wherein such federal determination and such notice of addi-
tional tax due are erroneous. Any amount paid as a tax or in respect of
a tax, other than amounts withheld at the source or paid as estimated
income tax, shall be deemed to be assessed upon the date of receipt of
payment, notwithstanding any other provisions.
§ 7. Paragraphs 1, 2 and 3 of subsection (c) of section 683 of the tax
law, as added by chapter 1011 of 1962, paragraph 1 as amended by chapter
526 of the laws of 1973, subparagraph (C) of paragraph 1 and paragraph 3
as amended by chapter 28 of the laws of 1987, are amended as follows:
(1) Assessment at any time.--The tax may be assessed at any time if--
(A) no return is filed,
(B) a false or fraudulent return is filed with intent to evade tax, or
S. 3009 91 A. 3009
(C) the taxpayer or employer fails to comply with section six hundred
fifty-nine OR SIX HUNDRED FIFTY-NINE-A.
(2) Extension by agreement.--Where, before the expiration of the time
prescribed in this section for the assessment of tax, both the [tax
commission] COMMISSIONER and the taxpayer have consented in writing to
its assessment after such time, the tax may be assessed at any time
prior to the expiration of the period agreed upon. The period so agreed
upon may be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
(3) Report of federal changes, corrections or disallowances.--If the
taxpayer or employer complies with section six hundred fifty-nine OR SIX
HUNDRED FIFTY-NINE-A, the assessment (if not deemed to have been made
upon the filing of the report or amended return) may be made at any time
within two years after such report or amended return was filed. The
amount of such assessment of tax shall not exceed the amount of the
increase in New York tax attributable to such federal change or
correction. The provisions of this paragraph shall not affect the time
within which or the amount for which an assessment may otherwise be
made.
§ 8. Paragraph 2 of subsection (h) of section 685 of the tax law, as
amended by section 5 of part I of chapter 59 of the laws of 2014, is
amended as follows:
(2) If any partnership, S corporation, or trust required to file a
return or report under subsection (c) or subsection (f) of section six
hundred fifty-eight or under section six hundred fifty-nine OR SIX
HUNDRED FIFTY-NINE-A of this article for any taxable year fails to file
such return or report at the time prescribed therefor (determined with
regard to any extension of time for filing), or files a return or report
which fails to show the information required under such subsection (c)
[or] OF section six hundred fifty-nine of this article, OR FILES A
RETURN OR REPORT WHICH FAILS TO SHOW THE INFORMATION REQUIRED UNDER
SUBSECTION (D) OF SECTION SIX HUNDRED FIFTY-NINE-A OF THIS ARTICLE,
unless it is shown that such failure is due to reasonable cause and not
due to willful neglect, there shall, upon notice and demand by the
commissioner and in the same manner as tax, be paid by the partnership
or S corporation a penalty for each month (or fraction thereof) during
which such failure continues (but not to exceed five months). The amount
of such penalty for any month is the product of fifty dollars, multi-
plied by the number of partners in the partnership or shareholders in
the S corporation during any part of the taxable year who were subject
to tax under this article during any part of such taxable year, except
that, in the case of a trust, the penalty shall be equal to one hundred
fifty dollars a month up to a maximum of fifteen hundred dollars per
taxable year.
§ 9. Subsection (c) of section 687 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
(c) Notice of federal change or correction.--A claim for credit or
refund of any overpayment of tax attributable to a federal change or
correction required to be reported pursuant to section six hundred
fifty-nine OR BY A PARTNER OF A PARTNERSHIP REQUIRED TO REPORT A FEDERAL
CHANGE OR CORRECTION PURSUANT TO SECTION SIX HUNDRED FIFTY-NINE-A shall
be filed by the taxpayer within two years from the time the notice of
such change or correction or such amended return was required to be
filed with the commissioner of taxation and finance. If the report or
amended return required by section six hundred fifty-nine OR SIX HUNDRED
FIFTY-NINE-A is not filed within the ninety day period therein speci-
S. 3009 92 A. 3009
fied, no interest shall be payable on any claim for credit or refund of
the overpayment attributable to the federal change or correction. The
amount of such credit or refund shall not exceed the amount of the
reduction in tax attributable to such federal change, correction or
items amended on the taxpayer's amended federal income tax return. This
subsection shall not affect the time within which or the amount for
which a claim for credit or refund may be filed apart from this
subsection.
§ 10. Subsection (g) of section 688 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
(g) Cross-reference.--For provision with respect to interest after
failure to file notice of federal change under section six hundred
fifty-nine OR SIX HUNDRED FIFTY-NINE-A, see subsection (c) of section
six hundred eighty-seven.
§ 11. Subsection (a) of section 1312 of the tax law, as amended by
section 9 of part Q of chapter 407 of the laws of 1999, is amended to
read as follows:
(a) Except as otherwise provided in this article, any tax imposed
pursuant to the authority of this article shall be administered and
collected by the commissioner in the same manner as the tax imposed by
article twenty-two of this chapter is administered and collected by the
commissioner. All of the provisions of article twenty-two of this chap-
ter relating to or applicable to payment of estimated tax, returns,
payment of tax, claim of right adjustment, withholding of tax from
wages, employer's statements and returns, employer's liability for taxes
required to be withheld and all other provisions of article twenty-two
of this chapter relating to or applicable to the administration,
collection, liability for and review of the tax imposed by article twen-
ty-two of this chapter, including sections six hundred fifty-two through
six hundred fifty-four, sections six hundred fifty-seven through [six
hundred fifty-nine] SIX HUNDRED FIFTY-NINE-A, sections six hundred
sixty-one and six hundred sixty-two, sections six hundred seventy-one
and six hundred seventy-two, sections six hundred seventy-four through
six hundred seventy-eight and sections six hundred eighty-one through
six hundred ninety-seven of this chapter, inclusive, shall apply to a
tax imposed pursuant to the authority of this article with the same
force and effect as if those provisions had been incorporated in full
into this article, and had expressly referred to the tax imposed pursu-
ant to the authority of this article, except where inconsistent with a
provision of this article. Whenever there is joint collection of state
and city personal income taxes, it shall be deemed that such collections
shall represent proportionately the applicable state and city personal
income taxes in determining the amount to be remitted to the city.
§ 12. Paragraph 1 of subdivision (e) of section 1515 of the tax law,
as amended by chapter 770 of the laws of 1992, is amended to read as
follows:
(1) If the amount of the life insurance company taxable income (which
shall include, in the case of a stock life insurance company which has
an existing policyholders surplus account, the amount of direct and
indirect distributions during the taxable year to shareholders from such
account), taxable income of a partnership or taxable income, as the case
may be, or alternative minimum taxable income for any year of any
taxpayer as returned to the United States treasury department is changed
or corrected by the commissioner of internal revenue or other officer of
the United States or other competent authority, such taxpayer shall
report such change or corrected taxable income or alternative minimum
S. 3009 93 A. 3009
taxable income within ninety days (or one hundred twenty days, in the
case of a taxpayer making a combined return under this article for such
year) after the final determination of such change or correction or as
required by the commissioner, and shall concede the accuracy of such
determination or state wherein it is erroneous. PROVIDED, HOWEVER, IF
THE TAXPAYER IS A DIRECT OR INDIRECT PARTNER OF A PARTNERSHIP REQUIRED
TO REPORT ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX HUNDRED
FIFTY-NINE-A OF THIS CHAPTER, SUCH TAXPAYER SHALL ALSO REPORT SUCH
ADJUSTMENTS IN ACCORDANCE WITH SECTION SIX HUNDRED FIFTY-NINE-A OF THIS
CHAPTER WHEN SUCH ADJUSTMENTS RESULT IN AN OVERPAYMENT. Any taxpayer
filing an amended return with such department shall also file within
ninety days (or one hundred twenty days, in the case of a taxpayer
making a combined return under this article for such year) thereafter an
amended return with the commissioner which shall contain such informa-
tion as the commissioner shall require. The allowance of a tentative
carryback adjustment based upon a net operating loss carryback or net
capital loss carryback pursuant to section sixty-four hundred eleven of
the internal revenue code or upon an operations loss carryback pursuant
to section eight hundred ten of the internal revenue code, shall be
treated as a final determination for purposes of this subdivision.
§ 13. This act shall take effect immediately; provided, however, that
adjustments to a taxpayer's federal taxable income or tax liability with
a final determination date or administrative adjustment request occur-
ring prior to the effective date of this act must be reported within one
year of such effective date; provided further that no interest shall
accrue on adjustments accruing prior to the effective date of this act.
PART W
Section 1. Section 1310 of the tax law is amended by adding a new
subsection (h) to read as follows:
(H) CREDIT FOR CERTAIN TAXPAYERS WITH INCOMES BELOW CERTAIN THRESH-
OLDS. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE, A CREDIT SHALL BE ALLOWED TO A TAXPAYER AGAINST THE TAX
IMPOSED PURSUANT TO THE AUTHORITY OF THIS ARTICLE IN AN AMOUNT EQUAL TO
THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE YEAR, REDUCED
BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXABLE YEAR, IF:
(A) SUCH TAXPAYER IS ENTITLED TO A DEDUCTION FOR SUCH TAXABLE YEAR
UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL
REVENUE CODE;
(B) SUCH TAXPAYER MEETS THE FOLLOWING INCOME THRESHOLDS FOR SUCH TAXA-
BLE YEAR:
(I) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS
MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING SPOUSE:
IF THE NUMBER OF INCOME NO GREATER THAN:
DEPENDENTS IS:
1 $36,789
2 $46,350
3 $54,545
4 $61,071
5 $68,403
6 $75,204
7 OR MORE $91,902
S. 3009 94 A. 3009
(II) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS A
SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF
HOUSEHOLD:
IF THE NUMBER OF INCOME NO GREATER THAN:
DEPENDENTS IS:
1 $31,503
2 $36,824
3 $46,512
4 $53,711
5 $59,928
6 $65,712
7 $74,565
8 OR MORE $88,361
(III) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, THE COMMISSIONER SHALL MULTIPLY THE AMOUNTS IN THIS
SUBPARAGRAPH BY ONE PLUS THE COST-OF-LIVING ADJUSTMENT, WHICH SHALL BE
THE PERCENTAGE BY WHICH THE CONSUMER PRICE INDEX FOR THE PRECEDING
CALENDAR YEAR EXCEEDS THE CONSUMER PRICE INDEX FOR CALENDAR YEAR TWO
THOUSAND TWENTY-FOUR;
(C) SUCH TAXPAYER IS NOT ALLOWED A CREDIT PURSUANT TO:
(I) SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THIS CHAP-
TER AGAINST THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAP-
TER; OR
(II) SUBSECTION (A) OF SECTION EIGHT HUNDRED SEVENTY OF THIS CHAPTER
AGAINST THE TAX IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY OF
THIS CHAPTER; AND
(D) SUCH TAXPAYER DOES NOT REPORT DISQUALIFIED INCOME IN EXCESS OF TEN
THOUSAND DOLLARS IN THE TAXABLE YEAR, AS DEFINED IN SUBSECTION (I) OF
SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.
(2) WHERE THE INCOME OF A TAXPAYER EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION FOR SUCH TAXPAYER
BY FIVE THOUSAND DOLLARS OR LESS, AND SUCH TAXPAYER SATISFIES SUBPARA-
GRAPH (A) AND SUBPARAGRAPHS (C) AND (D) OF PARAGRAPH ONE OF THIS
SUBSECTION, A CREDIT SHALL BE ALLOWED IN THE AMOUNT DETERMINED BY MULTI-
PLYING: (A) THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE
YEAR REDUCED BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXA-
BLE YEAR BY (B) A FRACTION THE NUMERATOR OF WHICH IS FIVE THOUSAND
DOLLARS MINUS THE AMOUNT BY WHICH SUCH INCOME EXCEEDS THE AMOUNT INDI-
CATED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION AND THE
DENOMINATOR OF WHICH IS FIVE THOUSAND DOLLARS.
(3) FOR PURPOSES OF THIS SUBSECTION:
(A) "CONSUMER PRICE INDEX" MEANS THE MOST RECENT CONSUMER PRICE INDEX
FOR ALL-URBAN CONSUMERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF
LABOR. THE CONSUMER PRICE INDEX FOR ANY CALENDAR YEAR SHALL BE THE
AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE TWELVE-MONTH
PERIOD ENDING ON AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
(B) "INCOME" MEANS FEDERAL ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR.
§ 2. Section 11-1706 of the administrative code of the city of New
York is amended by adding a new subdivision (h) to read as follows:
(H) CREDIT FOR CERTAIN TAXPAYERS WITH INCOMES BELOW CERTAIN THRESH-
OLDS. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE, A CREDIT SHALL BE ALLOWED TO A TAXPAYER AGAINST THE TAXES
S. 3009 95 A. 3009
IMPOSED PURSUANT TO THE AUTHORITY OF THIS CHAPTER IN AN AMOUNT EQUAL TO
THE TAX OTHERWISE DUE UNDER THIS CHAPTER FOR SUCH TAXABLE YEAR REDUCED
BY ALL THE CREDITS PERMITTED BY THIS CHAPTER FOR SUCH TAXABLE YEAR IF:
(A) SUCH TAXPAYER IS ENTITLED TO A DEDUCTION FOR SUCH TAXABLE YEAR
UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL
REVENUE CODE;
(B) SUCH TAXPAYER MEETS THE FOLLOWING INCOME THRESHOLDS FOR SUCH TAXA-
BLE YEAR:
(I) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS
MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING SPOUSE:
IF THE NUMBER OF DEPENDENTS IS: INCOME NO GREATER THAN:
1 $36,789
2 $46,350
3 $54,545
4 $61,071
5 $68,403
6 $75,204
7 OR MORE $91,902
(II) FOR CITY TAXPAYERS WHO FILED A RESIDENT INCOME TAX RETURN AS A
SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF
HOUSEHOLD:
IF THE NUMBER OF DEPENDENTS IS: INCOME NO GREATER THAN:
1 $31,503
2 $36,824
3 $46,512
4 $53,711
5 $59,928
6 $65,712
7 $74,565
8 OR MORE $88,361
(III) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, THE COMMISSIONER OF THE STATE DEPARTMENT OF TAXA-
TION AND FINANCE SHALL MULTIPLY THE AMOUNTS IN THIS SUBPARAGRAPH BY ONE
PLUS THE COST-OF-LIVING ADJUSTMENT, WHICH SHALL BE THE PERCENTAGE BY
WHICH THE CONSUMER PRICE INDEX FOR THE PRECEDING CALENDAR YEAR EXCEEDS
THE CONSUMER PRICE INDEX FOR CALENDAR YEAR TWO THOUSAND TWENTY-FOUR;
(C) SUCH TAXPAYER IS NOT ALLOWED A CREDIT PURSUANT TO: (I) SUBSECTION
(A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THE TAX LAW AGAINST THE
TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF SUCH LAW; OR (II) SUBDIVI-
SION (G) OF THIS SECTION AGAINST THE TAX IMPOSED PURSUANT TO THIS CHAP-
TER;
(D) SUCH TAXPAYER DOES NOT REPORT DISQUALIFIED INCOME IN EXCESS OF TEN
THOUSAND DOLLARS IN THE TAXABLE YEAR, AS SUCH TERM IS DEFINED IN
SUBSECTION (I) OF SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.
(2) WHERE THE INCOME OF A TAXPAYER EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION FOR SUCH TAXPAYER
BY FIVE THOUSAND DOLLARS OR LESS, AND SUCH TAXPAYER SATISFIES SUBPARA-
GRAPH (A) AND SUBPARAGRAPHS (C) AND (D) OF PARAGRAPH ONE OF THIS SUBDI-
VISION, A CREDIT SHALL BE ALLOWED IN THE AMOUNT DETERMINED BY MULTIPLY-
ING: (A) THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE YEAR
REDUCED BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXABLE
YEAR BY (B) A FRACTION THE NUMERATOR OF WHICH IS FIVE THOUSAND DOLLARS
S. 3009 96 A. 3009
MINUS THE AMOUNT BY WHICH SUCH INCOME EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION AND THE DENOMINA-
TOR OF WHICH IS FIVE THOUSAND DOLLARS.
(3) FOR PURPOSES OF THIS SUBDIVISION:
(A) "CONSUMER PRICE INDEX" MEANS THE MOST RECENT CONSUMER PRICE INDEX
FOR ALL-URBAN CONSUMERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF
LABOR. THE CONSUMER PRICE INDEX FOR ANY CALENDAR YEAR SHALL BE THE
AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE TWELVE-MONTH
PERIOD ENDING ON AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
(B) "INCOME" MEANS FEDERAL ADJUSTED GROSS INCOME FOR A TAXABLE YEAR.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
PART X
Section 1. The opening paragraph of subdivision (b) of section 25-z of
the general city law, as amended by section 1 of part RR of chapter 56
of the laws of 2020, is amended to read as follows:
No eligible business shall be authorized to receive a credit under any
local law enacted pursuant to this article until the premises with
respect to which it is claiming the credit meet the requirements in the
definition of eligible premises and until it has obtained a certif-
ication of eligibility from the mayor of such city or an agency desig-
nated by such mayor, and an annual certification from such mayor or an
agency designated by such mayor as to the number of eligible aggregate
employment shares maintained by such eligible business that may qualify
for obtaining a tax credit for the eligible [business'] BUSINESS'S taxa-
ble year. Any written documentation submitted to such mayor or such
agency or agencies in order to obtain any such certification shall be
deemed a written instrument for purposes of section 175.00 of the penal
law. Such local law may provide for application fees to be determined by
such mayor or such agency or agencies. No such certification of eligi-
bility shall be issued under any local law enacted pursuant to this
article to an eligible business on or after July first, two thousand
[twenty-five] THIRTY unless:
§ 2. The general city law is amended by adding a new article 2-K to
read as follows:
ARTICLE 2-K
RELOCATION ASSISTANCE CREDIT PER EMPLOYEE
SECTION 25-FF. DEFINITIONS.
25-GG. RELOCATION ASSISTANCE CREDIT PER EMPLOYEE.
§ 25-FF. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "AGGREGATE EMPLOYMENT SHARES" MEANS THE SUM OF ALL EMPLOYMENT
SHARES MAINTAINED BY AN ELIGIBLE BUSINESS IN A TAXABLE YEAR.
(B) "ELIGIBLE AGGREGATE EMPLOYMENT SHARES" MEANS, IN THE CASE OF AN
ELIGIBLE BUSINESS, THE AMOUNT, IF ANY, OF AGGREGATE EMPLOYMENT SHARES
MAINTAINED BY AN ELIGIBLE BUSINESS IN ELIGIBLE PREMISES IN THE TAXABLE
YEAR IN WHICH SUCH ELIGIBLE BUSINESS CLAIMS A CREDIT PURSUANT TO A LOCAL
LAW ENACTED IN ACCORDANCE WITH SECTION TWENTY-FIVE-GG OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT:
(1) SUCH AMOUNT SHALL NOT EXCEED THE LESSER OF:
(I) THE NUMBER OF AGGREGATE EMPLOYMENT SHARES MAINTAINED BY SUCH
ELIGIBLE BUSINESS IN ELIGIBLE PREMISES IN THE TAXABLE YEAR DURING WHICH
SUCH ELIGIBLE BUSINESS RELOCATES;
S. 3009 97 A. 3009
(II) THE MAXIMUM APPROVED EMPLOYMENT SHARES FOR SUCH ELIGIBLE BUSI-
NESS; OR
(III) AN AMOUNT EQUAL TO THE PRODUCT OF MULTIPLYING THE AGGREGATE
EMPLOYMENT SHARES AND THE LINEAR SCALAR FOR SUCH ELIGIBLE BUSINESS IN
SUCH TAX YEAR; AND
(2) A FULL-TIME WORK WEEK OR PART-TIME WORK WEEK AT ELIGIBLE PREMISES
PRIOR TO THE DATE OF RELOCATION SHALL NOT BE TAKEN INTO ACCOUNT IN
DETERMINING ELIGIBLE AGGREGATE EMPLOYMENT SHARES.
(C) "ELIGIBLE BUSINESS" MEANS ANY PERSON SUBJECT TO A TAX IMPOSED
UNDER A LOCAL LAW ENACTED PURSUANT TO PART TWO OR THREE OF SECTION ONE,
OR SECTION TWO OF CHAPTER SEVEN HUNDRED SEVENTY-TWO OF THE LAWS OF NINE-
TEEN HUNDRED SIXTY-SIX THAT:
(1) HAS BEEN CONDUCTING SUBSTANTIAL BUSINESS OPERATIONS AT ONE OR MORE
BUSINESS LOCATIONS OUTSIDE OF NEW YORK STATE FOR THE TWENTY-FOUR CONSEC-
UTIVE MONTHS IMMEDIATELY PRECEDING THE TAXABLE YEAR DURING WHICH SUCH
ELIGIBLE BUSINESS RELOCATES BUT HAS NOT MAINTAINED EMPLOYMENT SHARES AT
PREMISES IN NEW YORK STATE AT ANY TIME DURING THE PERIOD BEGINNING JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE AND ENDING ON THE DATE SUCH BUSINESS
ENTERS INTO A LEASE OR A CONTRACT TO PURCHASE THE PREMISES THAT WILL
QUALIFY AS ELIGIBLE PREMISES PURSUANT TO THIS ARTICLE; AND
(2) ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE RELOCATES ALL OR
PART OF SUCH BUSINESS OPERATIONS.
(D) "ELIGIBLE PREMISES" MEANS ONE OR MORE NON-RESIDENTIAL PREMISES
THAT CONSIST OF AT LEAST TWENTY THOUSAND SQUARE FEET THAT ARE:
(1) WHOLLY CONTAINED IN REAL PROPERTY LOCATED IN A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE; AND
(2) FOR WHICH FINAL CERTIFICATES OF OCCUPANCY WERE ISSUED PRIOR TO
JANUARY FIRST, TWO THOUSAND.
(E) "EMPLOYMENT SHARE" MEANS, FOR EACH EMPLOYEE, PARTNER OR SOLE
PROPRIETOR OF AN ELIGIBLE BUSINESS, THE SUM OF: (1) THE NUMBER OF FULL-
TIME WORK WEEKS WORKED BY SUCH EMPLOYEE, PARTNER OR SOLE PROPRIETOR
DURING THE ELIGIBLE BUSINESS'S TAXABLE YEAR DIVIDED BY THE NUMBER OF
WEEKS IN THE TAXABLE YEAR; AND (2) THE NUMBER OF PART-TIME WORK WEEKS
WORKED BY SUCH EMPLOYEE, PARTNER OR SOLE PROPRIETOR DURING THE ELIGIBLE
BUSINESS'S TAXABLE YEAR DIVIDED BY AN AMOUNT EQUAL TO TWICE THE NUMBER
OF WEEKS IN THE TAXABLE YEAR. EMPLOYMENT SHARE SHALL NOT INCLUDE FULL-
TIME OR PART-TIME WORK WEEKS ATTRIBUTABLE TO EMPLOYEES, PARTNERS OR SOLE
PROPRIETORS ACQUIRED BY AN ELIGIBLE BUSINESS AS A RESULT OF A MERGER
WITH, ACQUISITION OF ANOTHER PERSON, OR A TRANSACTION HAVING A COMPARA-
BLE EFFECT, THAT OCCURS AFTER JUNE THIRTIETH, TWO THOUSAND TWENTY-FIVE,
AND BEFORE THE END OF THE TAXABLE YEAR IN WHICH A CREDIT IS CLAIMED BY
SUCH ELIGIBLE BUSINESS PURSUANT TO A LOCAL LAW ENACTED IN ACCORDANCE
WITH SECTION TWENTY-FIVE-GG OF THIS ARTICLE, OR TO SUCCESSORS, IF ANY,
TO THOSE EMPLOYEES, PARTNERS OR SOLE PROPRIETORS.
(F) "FULL-TIME WORK WEEK" MEANS A WEEK DURING WHICH AT LEAST THIRTY-
FIVE HOURS OF GAINFUL WORK HAS BEEN PERFORMED BY AN EMPLOYEE, PARTNER OR
SOLE PROPRIETOR.
(G) "HOTEL SERVICES" MEANS ANY SERVICES THAT CONSIST PREDOMINATELY OF
THE LODGING OF GUESTS AT A BUILDING OR A PORTION THEREOF THAT IS REGU-
LARLY USED AND KEPT OPEN FOR SUCH SERVICES. HOTEL SERVICES SHALL INCLUDE
THE LODGING OF GUESTS AT AN APARTMENT HOTEL, A MOTEL, BOARDING HOUSE OR
CLUB, WHETHER OR NOT MEALS ARE SERVED.
(H) "LINEAR SCALAR" MEANS, FOR AN ELIGIBLE BUSINESS IN A TAXABLE YEAR
IN WHICH A CREDIT IS CLAIMED PURSUANT TO A LOCAL LAW ENACTED IN ACCORD-
ANCE WITH SECTION TWENTY-FIVE-GG OF THIS ARTICLE, THE QUOTIENT OF DIVID-
ING THE TOTAL SQUARE FOOTAGE OF AN ELIGIBLE PREMISES BY THE PRODUCT OF
S. 3009 98 A. 3009
MULTIPLYING TWO HUNDRED FIFTY BY SUCH BUSINESS'S AGGREGATE EMPLOYMENT
SHARES.
(I) "MAXIMUM APPROVED EMPLOYMENT SHARES" MEANS A LIMITATION ON THE
AGGREGATE EMPLOYMENT SHARES THAT AN ELIGIBLE BUSINESS MAY RECEIVE IN ANY
TAXABLE YEAR DETERMINED BY THE MAYOR PURSUANT TO A LOCAL LAW ENACTED IN
ACCORDANCE WITH SECTION TWENTY-FIVE-GG OF THIS ARTICLE BASED ON DOCUMEN-
TATION SUBMITTED BY SUCH BUSINESS DEMONSTRATING SUCH BUSINESS'S INTEN-
TION TO RELOCATE. THE MAXIMUM APPROVED EMPLOYMENT SHARES IS THE NUMBER
OF AGGREGATE EMPLOYMENT SHARES SUCH BUSINESS INTENDS TO RELOCATE AS
INDICATED BY THE MAYOR ON THE APPLICABLE INITIAL CERTIFICATION OF ELIGI-
BILITY.
(J) "MAYOR" MEANS THE MAYOR OF A CITY HAVING A POPULATION OF ONE
MILLION OR MORE, OR AN AGENCY OF SUCH CITY AS DESIGNATED BY SUCH MAYOR.
(K) "PART-TIME WORK WEEK" MEANS A WEEK DURING WHICH AT LEAST FIFTEEN
BUT LESS THAN THIRTY-FIVE HOURS OF GAINFUL WORK HAS BEEN PERFORMED BY AN
EMPLOYEE, PARTNER OR SOLE PROPRIETOR.
(L) "PERSON" INCLUDES ANY INDIVIDUAL, PARTNERSHIP, ASSOCIATION, JOINT-
STOCK COMPANY, CORPORATION, ESTATE OR TRUST, LIMITED LIABILITY COMPANY,
AND ANY COMBINATION OF THE FOREGOING.
(M) "PROGRAM TOTAL" MEANS THE SUM OF MAXIMUM APPROVED AGGREGATE
EMPLOYMENT SHARES INCLUDED IN ALL INITIAL CERTIFICATION OF ELIGIBILITY
ISSUED BY THE MAYOR.
(N) "RELOCATE" MEANS, WITH RESPECT TO AN ELIGIBLE BUSINESS, TO TRANS-
FER A PRE-EXISTING BUSINESS OPERATION TO AN ELIGIBLE PREMISES, OR TO
ESTABLISH A NEW BUSINESS OPERATION AT SUCH PREMISES, PROVIDED THAT AN
ELIGIBLE BUSINESS SHALL NOT BE DEEMED TO HAVE RELOCATED UNLESS AT LEAST
ONE EMPLOYEE, PARTNER OR SOLE PROPRIETOR OF THE ELIGIBLE BUSINESS IS
TRANSFERRED TO SUCH PREMISES FROM A PRE-EXISTING BUSINESS OPERATION
CONDUCTED OUTSIDE THE STATE OF NEW YORK. THE DATE OF RELOCATION SHALL BE
THE FIRST DAY ON WHICH THE INDIVIDUAL SO TRANSFERRED COMMENCES WORK AT
SUCH ELIGIBLE PREMISES. THE TAXABLE YEAR OF RELOCATION SHALL BE THE
TAXABLE YEAR IN WHICH THE DATE OF RELOCATION OCCURS. FOR PURPOSES OF
THIS ARTICLE, AN ELIGIBLE BUSINESS MAY RELOCATE ONLY ONCE BUT MAY ADD OR
SUBSTITUTE OTHER ELIGIBLE PREMISES THROUGHOUT SUCH PERIOD.
(O) "RETAIL ACTIVITY" MEANS ANY ACTIVITY WHICH CONSISTS PREDOMINATELY
OF:
(1) THE SALE, OTHER THAN THROUGH THE MAIL OR BY THE TELEPHONE OR BY
MEANS OF THE INTERNET, OF TANGIBLE PERSONAL PROPERTY TO A PERSON, FOR
ANY PURPOSE UNRELATED TO THE TRADE OR BUSINESS OF SUCH PERSON;
(2) THE SELLING OF A SERVICE TO AN INDIVIDUAL WHICH GENERALLY INVOLVES
THE PHYSICAL, MENTAL OR SPIRITUAL CARE OF SUCH INDIVIDUAL;
(3) THE PHYSICAL CARE OF THE PERSONAL PROPERTY OF ANY PERSON UNRELATED
TO THE TRADE OR BUSINESS OF SUCH PERSON; OR
(4) THE PROVISION OF A RETAIL BANKING SERVICE.
§ 25-GG. RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (A) ANY CITY
HAVING A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND
EMPOWERED TO ADOPT AND AMEND A LOCAL LAW ALLOWING AN ELIGIBLE BUSINESS
THAT RELOCATES TO RECEIVE A CREDIT AGAINST A TAX IMPOSED UNDER A LOCAL
LAW ENACTED PURSUANT TO PART TWO OR THREE OF SECTION ONE OR SECTION TWO
OF CHAPTER SEVEN HUNDRED SEVENTY-TWO OF THE LAWS OF NINETEEN HUNDRED
SIXTY-SIX. THE AMOUNT OF SUCH CREDIT SHALL BE DETERMINED BY MULTIPLYING
FIVE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT
SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR WITH RESPECT
TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED, AND MAY BE
TAKEN, PURSUANT TO THE PROVISIONS OF SECTION FOUR-J OF PART TWO OF
SECTION ONE, OR SUBDIVISION (L) OF SECTION ONE HUNDRED ONE OF SECTION
S. 3009 99 A. 3009
TWO OF CHAPTER SEVEN HUNDRED SEVENTY-TWO OF THE LAWS OF NINETEEN HUNDRED
SIXTY-SIX, FOR UP TO ELEVEN CONSECUTIVE TAXABLE YEARS BEGINNING WITH THE
TAXABLE YEAR IN WHICH THE ELIGIBLE BUSINESS RELOCATES, PROVIDED THAT NO
SUCH CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF ANY RETAIL ACTIVITY
OR HOTEL SERVICES.
(B) NO ELIGIBLE BUSINESS SHALL BE AUTHORIZED TO RECEIVE A CREDIT
AGAINST TAX UNDER ANY LOCAL LAW ENACTED PURSUANT TO THIS ARTICLE UNLESS
THE PREMISES WITH RESPECT TO WHICH IT IS CLAIMING THE CREDIT ARE ELIGI-
BLE PREMISES AND UNTIL IT HAS OBTAINED AN INITIAL CERTIFICATION OF
ELIGIBILITY FROM THE MAYOR OF SUCH CITY AND AN ANNUAL CERTIFICATION FROM
SUCH MAYOR AS TO THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES
MAINTAINED BY SUCH ELIGIBLE BUSINESS THAT MAY QUALIFY FOR OBTAINING A
TAX CREDIT FOR THE ELIGIBLE BUSINESS'S TAXABLE YEAR. EACH INITIAL
CERTIFICATION OF ELIGIBILITY SHALL INCLUDE THE MAXIMUM APPROVED EMPLOY-
MENT SHARES FOR THE ELIGIBLE BUSINESS, WHICH SHALL NOT EXCEED FIVE
HUNDRED EMPLOYMENT SHARES. ANY WRITTEN DOCUMENTATION SUBMITTED TO SUCH
MAYOR IN ORDER TO OBTAIN ANY SUCH CERTIFICATION SHALL BE DEEMED A WRIT-
TEN INSTRUMENT FOR PURPOSES OF SECTION 175.00 OF THE PENAL LAW. SUCH
LOCAL LAW MAY PROVIDE FOR AN APPLICATION FEE FOR SUCH CERTIFICATION TO
BE DETERMINED BY SUCH MAYOR. NO INITIAL CERTIFICATION OF ELIGIBILITY
SHALL BE ISSUED UNDER ANY LOCAL LAW ENACTED PURSUANT TO THIS ARTICLE TO
AN ELIGIBLE BUSINESS ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-EIGHT
UNLESS:
(1) PRIOR TO SUCH DATE, SUCH BUSINESS HAS PURCHASED, LEASED OR ENTERED
INTO A CONTRACT TO PURCHASE OR LEASE ELIGIBLE PREMISES;
(2) PRIOR TO SUCH DATE, SUCH BUSINESS SUBMITS A PRELIMINARY APPLICA-
TION FOR AN INITIAL CERTIFICATION OF ELIGIBILITY TO SUCH MAYOR WITH
RESPECT TO A PROPOSED RELOCATION TO SUCH PREMISES;
(3) SUCH BUSINESS ENTERS INTO A LEASE OR CONTRACT TO PURCHASE AN
ELIGIBLE PREMISES BETWEEN THE DATE THAT SUCH BUSINESS SUBMITS SUCH
PRELIMINARY APPLICATION AND THREE MONTHS THEREAFTER; AND
(4) SUCH BUSINESS RELOCATES TO SUCH PREMISES NOT LATER THAN THIRTY-SIX
MONTHS FROM THE DATE OF SUBMISSION OF SUCH PRELIMINARY APPLICATION.
(C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, SUCH MAYOR
SHALL NOT ISSUE AN INITIAL CERTIFICATION OF ELIGIBILITY THAT WOULD CAUSE
THE PROGRAM TOTAL TO EXCEED THREE THOUSAND MAXIMUM APPROVED EMPLOYMENT
SHARES. SUCH MAYOR SHALL APPROVE APPLICATIONS ON A FIRST-COME, FIRST-
SERVE BASIS AMONG ELIGIBLE BUSINESSES IN ACCORDANCE WITH RULES PROMUL-
GATED PURSUANT TO A LOCAL LAW AUTHORIZED BY SUBDIVISION (D) OF THIS
SECTION. SUCH MAYOR SHALL INCLUDE ON SUCH MAYOR'S WEBSITE AN INDICATION
REGARDING WHETHER THE PROGRAM TOTAL HAS REACHED THREE THOUSAND MAXIMUM
APPROVED EMPLOYMENT SHARES.
(D) SUCH MAYOR SHALL BE AUTHORIZED TO PROMULGATE RULES AND REGULATIONS
TO ADMINISTER AND ENSURE COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE,
INCLUDING BUT NOT LIMITED TO RULES AND REGULATIONS TO PROVIDE FOR ALTER-
NATIVE METHODS TO MEASURE EMPLOYMENT SHARES IN INSTANCES WHERE AN ELIGI-
BLE BUSINESS IS NOT REQUIRED BY LAW TO MAINTAIN WEEKLY RECORDS OF FULL-
TIME WORK WEEKS AND PART-TIME WORK WEEKS OF EMPLOYEES, PARTNERS OR SOLE
PROPRIETORS.
(E) FOR THE DURATION OF THE BENEFIT PERIOD, THE RECIPIENT OF A CREDIT
PURSUANT TO A LOCAL LAW ENACTED IN ACCORDANCE WITH THIS ARTICLE SHALL
FILE AN APPLICATION FOR AN ANNUAL CERTIFICATION EACH YEAR DEMONSTRATING
SUCH RECIPIENT'S ELIGIBILITY FOR SUCH CREDIT AND THE AVERAGE WAGE AND
BENEFITS OFFERED TO THE APPLICABLE RELOCATED EMPLOYEES USED IN DETERMIN-
ING ELIGIBLE AGGREGATE EMPLOYMENT SHARES. SUCH MAYOR SHALL HAVE THE
S. 3009 100 A. 3009
AUTHORITY TO REQUIRE THAT STATEMENTS FILED UNDER THIS SUBDIVISION BE
FILED ELECTRONICALLY AND THAT SUCH STATEMENTS BE CERTIFIED.
(F) THE BUSINESS SERVICES AGENCY OF A CITY THAT ADOPTS A LOCAL LAW
PURSUANT TO THIS ARTICLE MAY REQUIRE IN A CONTRACT WITH A NOT-FOR-PROFIT
CORPORATION THAT PROVIDES ECONOMIC DEVELOPMENT SERVICES FOR SUCH CITY
THAT SUCH CORPORATION WILL PROVIDE ADMINISTRATIVE SUPPORT TO SUCH MAYOR
AND ASSIST SUCH MAYOR'S REVIEW OF ANY INITIAL CERTIFICATION OF ELIGIBIL-
ITY OR ANNUAL CERTIFICATION, AND PROVIDE RECOMMENDATIONS REGARDING THE
APPROVAL OF ANY CREDIT PURSUANT TO A LOCAL LAW ENACTED IN ACCORDANCE
WITH THIS ARTICLE.
§ 3. Part II of section 1 of chapter 772 of the laws of 1966, relating
to enabling any city having a population of one million or more to raise
tax revenue, is amended by adding a new section 4-j to read as follows:
§ 4-J. RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (1) IN ADDITION TO
ANY OTHER CREDIT ALLOWED BY THIS PART OTHER THAN A CREDIT ALLOWED BY
SECTION FOUR-H OF THIS PART, A TAXPAYER THAT HAS OBTAINED THE CERTIF-
ICATIONS IN ACCORDANCE WITH SUBDIVISION (B) OF SECTION TWENTY-FIVE-GG OF
THE GENERAL CITY LAW SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS PART. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED
BY MULTIPLYING FIVE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE
EMPLOYMENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR
WITH RESPECT TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED;
PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF
ANY RETAIL ACTIVITY OR HOTEL SERVICES. FOR PURPOSES OF THIS SECTION, THE
TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES", "ELIGIBLE PREMISES",
"RELOCATE", "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEAN-
INGS ASCRIBED BY SECTION TWENTY-FIVE-FF OF THE GENERAL CITY LAW.
(2) THE CREDIT ALLOWED UNDER THIS SECTION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TEN SUCCEEDING TAXABLE YEARS
DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR THE
TENTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT
TO ELIGIBLE PREMISES IN THE TENTH SUCCEEDING TAXABLE YEAR BY THE LESSER
OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER OF DAYS IN
THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE ELIGIBLE
BUSINESS MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXA-
BLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF
DAYS IN SUCH TENTH TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE
EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
(3) EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR
EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER,
IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO THE
EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEARS.
(4) THE CREDITS ALLOWED UNDER THIS SECTION, AGAINST THE TAX IMPOSED BY
THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR THE FOUR
TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH RELO-
CATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO BE
CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SEVENTY-SEVEN OF THIS TITLE. FOR SUCH TAXABLE
YEARS, SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY
SUCCEEDING TAXABLE YEAR.
S. 3009 101 A. 3009
(5) THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE DEDUCTED PRIOR TO
THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS PART.
§ 4. Section 101 of section 2 of chapter 772 of the laws of 1966,
relating to enabling any city having a population of one million or more
to raise tax revenue, is amended by adding a new subdivision (l) to read
as follows:
(L) RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (1) IN ADDITION TO ANY
OTHER CREDIT ALLOWED BY THIS PART OTHER THAN A CREDIT ALLOWED BY SUBDI-
VISION (J) OF THIS SECTION, A TAXPAYER THAT HAS OBTAINED THE CERTIF-
ICATIONS IN ACCORDANCE WITH SUBDIVISION (B) OF SECTION TWENTY-FIVE-GG OF
THE GENERAL CITY LAW SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS PART. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED BY
MULTIPLYING FIVE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE
EMPLOYMENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR
WITH RESPECT TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED;
PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF
ANY RETAIL ACTIVITY OR HOTEL SERVICES. FOR PURPOSES OF THIS SUBDIVISION,
THE TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES", "ELIGIBLE PREMISES",
"RELOCATE", "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEAN-
INGS ASCRIBED BY SECTION TWENTY-FIVE-FF OF THE GENERAL CITY LAW.
(2) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TEN SUCCEEDING TAXABLE YEARS
DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR THE
TENTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT
TO ELIGIBLE PREMISES IN THE TENTH SUCCEEDING TAXABLE YEAR BY THE LESSER
OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER OF DAYS IN
THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE ELIGIBLE
BUSINESS MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXA-
BLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF
DAYS IN SUCH TENTH SUCCEEDING TAXABLE YEAR DURING WHICH SUCH ELIGIBLE
AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREM-
ISES.
(3) EXCEPT AS PROVIDED IN PARAGRAPH FOUR OF THIS SUBDIVISION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED
OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO
THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAY-
ER'S TAX FOR SUCH YEARS.
(4) THE CREDITS ALLOWED UNDER THIS SUBDIVISION, AGAINST THE TAX
IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR
THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH
RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO
BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SEVENTY-SEVEN OF THIS TITLE. FOR SUCH TAXABLE
YEARS, SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY
SUCCEEDING TAXABLE YEAR.
(5) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED
AFTER THE CREDITS ALLOWED BY SUBDIVISION (B) OF THIS SECTION, BUT PRIOR
TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
§ 5. Section 11-503 of the administrative code of the city of New York
is amended by adding a new subdivision (r) to read as follows:
S. 3009 102 A. 3009
(R) RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (1) IN ADDITION TO ANY
OTHER CREDIT ALLOWED BY THIS SECTION OTHER THAN A CREDIT ALLOWED BY
SUBDIVISION (I) OF THIS SECTION, A TAXPAYER THAT HAS OBTAINED THE
CERTIFICATIONS REQUIRED BY CHAPTER SIX-E OF TITLE TWENTY-TWO OF THIS
CODE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS CHAPTER.
THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED BY MULTIPLYING
FIVE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT
SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR WITH RESPECT
TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED; PROVIDED,
HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF ANY
RETAIL ACTIVITY OR HOTEL SERVICES. FOR PURPOSES OF THIS SUBDIVISION, THE
TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES", "ELIGIBLE PREMISES",
"RELOCATE", "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEAN-
INGS ASCRIBED BY SECTION 22-627 OF THIS CODE.
(2) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TEN SUCCEEDING TAXABLE YEARS
DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR THE
TENTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT
TO ELIGIBLE PREMISES IN THE TENTH SUCCEEDING TAXABLE YEAR BY THE LESSER
OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER OF DAYS IN
THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE TAXPAYER
MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXABLE YEAR OF
RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF DAYS IN SUCH
TENTH SUCCEEDING TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE
EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
(3) EXCEPT AS PROVIDED IN PARAGRAPH FOUR OF THIS SUBDIVISION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED
OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO
THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAY-
ER'S TAX FOR SUCH YEARS.
(4) THE CREDITS ALLOWED UNDER THIS SUBDIVISION, AGAINST THE TAX
IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR
THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH
RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO
BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 11-526 OF THIS TITLE. FOR SUCH TAXABLE YEARS, SUCH
CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEEDING
TAXABLE YEAR.
(5) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED
AFTER THE CREDITS ALLOWED BY SUBDIVISIONS (B) AND (J) OF THIS SECTION,
BUT PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
§ 6. Section 11-604 of the administrative code of the city of New York
is amended by adding a new subdivision 24 to read as follows:
24. RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (A) IN ADDITION TO ANY
OTHER CREDIT ALLOWED BY THIS SECTION OTHER THAN A CREDIT ALLOWED BY
SUBDIVISION SEVENTEEN OF THIS SECTION, A TAXPAYER THAT HAS OBTAINED THE
CERTIFICATIONS REQUIRED BY CHAPTER SIX-E OF TITLE TWENTY-TWO OF THIS
CODE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS CHAPTER.
THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED BY MULTIPLYING
FIVE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT
SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR WITH RESPECT
S. 3009 103 A. 3009
TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED; PROVIDED,
HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF ANY
RETAIL ACTIVITY OR HOTEL SERVICES. FOR PURPOSES OF THIS SUBDIVISION, THE
TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES", "ELIGIBLE PREMISES",
"RELOCATE", "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEAN-
INGS ASCRIBED BY SECTION 22-627 OF THIS CODE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TEN SUCCEEDING TAXABLE YEARS
DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR THE
TENTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT
TO ELIGIBLE PREMISES IN THE TENTH SUCCEEDING TAXABLE YEAR BY THE LESSER
OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER OF DAYS IN
THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE TAXPAYER
MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXABLE YEAR OF
RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF DAYS IN SUCH
TENTH TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT
SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
(C) EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED
OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO
THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAY-
ER'S TAX FOR SUCH YEARS.
(D) THE CREDITS ALLOWED UNDER THIS SUBDIVISION, AGAINST THE TAX
IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR
THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH
RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO
BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE YEARS,
SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEED-
ING TAXABLE YEAR.
(E) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED
AFTER THE CREDIT ALLOWED BY SUBDIVISION EIGHTEEN OF THIS SECTION, BUT
PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
§ 7. The administrative code of the city of New York is amended by
adding a new section 11-643.10 to read as follows:
§ 11-643.10 RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (A) IN ADDITION
TO ANY OTHER CREDIT ALLOWED BY THIS PART OTHER THAN A CREDIT ALLOWED BY
SECTION 11-643.7 OF THIS PART, A TAXPAYER THAT HAS OBTAINED THE CERTIF-
ICATIONS REQUIRED BY CHAPTER SIX-E OF TITLE TWENTY-TWO OF THIS CODE
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS PART. THE
AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED BY MULTIPLYING FIVE
THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES
MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR WITH RESPECT TO
ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED; PROVIDED, HOWEV-
ER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF ANY RETAIL
ACTIVITY OR HOTEL SERVICES. FOR PURPOSES OF THIS SECTION, THE TERMS
"ELIGIBLE AGGREGATE EMPLOYMENT SHARES", "ELIGIBLE PREMISES", "RELOCATE",
"RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS ASCRIBED
BY SECTION 22-627 OF THIS CODE.
(B) THE CREDIT ALLOWED UNDER THIS SECTION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
S. 3009 104 A. 3009
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TEN SUCCEEDING TAXABLE YEARS
DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR THE
TENTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT
TO ELIGIBLE PREMISES IN THE TENTH SUCCEEDING TAXABLE YEAR BY THE LESSER
OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER OF DAYS IN
THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE TAXPAYER
MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXABLE YEAR OF
RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF DAYS IN SUCH
TENTH SUCCEEDING TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE
EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
(C) EXCEPT AS PROVIDED IN SUBDIVISION (D) OF THIS SECTION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR
EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER,
IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO THE
EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEARS.
(D) THE CREDITS ALLOWED UNDER THIS SECTION, AGAINST THE TAX IMPOSED BY
THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR THE FOUR
TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH RELO-
CATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO BE
CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE YEARS,
SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEED-
ING TAXABLE YEAR.
(E) THE CREDIT ALLOWABLE UNDER THIS SECTION SHALL BE DEDUCTED PRIOR TO
THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS PART.
§ 8. Section 11-654 of the administrative code of the city of New York
is amended by adding a new subdivision 24 to read as follows:
24. RELOCATION ASSISTANCE CREDIT PER EMPLOYEE. (A) IN ADDITION TO ANY
OTHER CREDIT ALLOWED BY THIS SECTION OTHER THAN A CREDIT ALLOWED BY
SUBDIVISION SEVENTEEN OF THIS SECTION, A TAXPAYER THAT HAS OBTAINED THE
CERTIFICATIONS REQUIRED BY CHAPTER SIX-E OF TITLE TWENTY-TWO OF THIS
CODE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS SUBCHAP-
TER. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED BY MULTI-
PLYING FIVE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOY-
MENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR WITH
RESPECT TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELOCATED;
PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELOCATION OF
ANY RETAIL ACTIVITY OR HOTEL SERVICES. FOR PURPOSES OF THIS SUBDIVISION,
THE TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES", "ELIGIBLE PREMISES",
"RELOCATE", "RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEAN-
INGS ASCRIBED BY SECTION 22-627 OF THIS CODE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TEN SUCCEEDING TAXABLE YEARS
DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR THE
TENTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT
TO ELIGIBLE PREMISES IN THE TENTH SUCCEEDING TAXABLE YEAR BY THE LESSER
OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER OF DAYS IN
THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE TAXPAYER
S. 3009 105 A. 3009
MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXABLE YEAR OF
RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF DAYS IN SUCH
TENTH TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT
SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
(C) EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED
OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO
THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAY-
ER'S TAX FOR SUCH YEARS.
(D) THE CREDITS ALLOWED UNDER THIS SUBDIVISION, AGAINST THE TAX
IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR
THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH
RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO
BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE YEARS,
SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEED-
ING TAXABLE YEAR.
(E) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED
AFTER THE CREDIT ALLOWED BY SUBDIVISION EIGHTEEN OF THIS SECTION, BUT
PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
§ 9. The opening paragraph of subdivision (b) of section 22-622 of the
administrative code of the city of New York, as amended by section 3 of
part RR of chapter 56 of the laws of 2020, is amended to read as
follows:
No eligible business shall be authorized to receive a credit against
tax or a reduction in base rent subject to tax under the provisions of
this chapter, and of title eleven of the code as described in subdivi-
sion (a) of this section, until the premises with respect to which it is
claiming the credit meet the requirements in the definition of eligible
premises and until it has obtained a certification of eligibility from
the mayor or an agency designated by the mayor, and an annual certif-
ication from the mayor or an agency designated by the mayor as to the
number of eligible aggregate employment shares maintained by such eligi-
ble business that may qualify for obtaining a tax credit for the eligi-
ble [business'] BUSINESS'S taxable year. Any written documentation
submitted to the mayor or such agency or agencies in order to obtain any
such certification shall be deemed a written instrument for purposes of
section 175.00 of the penal law. Application fees for such certif-
ications shall be determined by the mayor or such agency or agencies. No
certification of eligibility shall be issued to an eligible business on
or after July first, two thousand [twenty-five] THIRTY unless:
§ 10. Title 22 of the administrative code of the city of New York is
amended by adding a new chapter 6-E to read as follows:
CHAPTER 6-E
RELOCATION ASSISTANCE CREDIT PER EMPLOYEE
SECTION 22-627 DEFINITIONS.
22-628 AUTHORIZATION TO PROVIDE RELOCATION ASSISTANCE CREDIT PER
EMPLOYEE.
§ 22-627 DEFINITIONS. WHEN USED IN THIS CHAPTER, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "AGGREGATE EMPLOYMENT SHARES" MEANS THE SUM OF ALL EMPLOYMENT
SHARES MAINTAINED BY AN ELIGIBLE BUSINESS IN A TAXABLE YEAR.
S. 3009 106 A. 3009
(B) "ELIGIBLE AGGREGATE EMPLOYMENT SHARES" MEANS, IN THE CASE OF AN
ELIGIBLE BUSINESS, THE AMOUNT, IF ANY, OF AGGREGATE EMPLOYMENT SHARES
MAINTAINED BY AN ELIGIBLE BUSINESS IN ELIGIBLE PREMISES IN THE TAXABLE
YEAR IN WHICH SUCH ELIGIBLE BUSINESS CLAIMS A CREDIT PURSUANT TO SECTION
22-628 OF THIS CHAPTER; PROVIDED, HOWEVER, THAT:
(1) SUCH AMOUNT SHALL NOT EXCEED THE LESSER OF:
(I) THE NUMBER OF AGGREGATE EMPLOYMENT SHARES MAINTAINED BY SUCH
ELIGIBLE BUSINESS IN ELIGIBLE PREMISES IN THE TAXABLE YEAR DURING WHICH
SUCH ELIGIBLE BUSINESS RELOCATES;
(II) THE MAXIMUM APPROVED EMPLOYMENT SHARES FOR SUCH ELIGIBLE BUSI-
NESS; OR
(III) AN AMOUNT EQUAL TO THE PRODUCT OF MULTIPLYING THE AGGREGATE
EMPLOYMENT SHARES AND THE LINEAR SCALAR FOR SUCH ELIGIBLE BUSINESS IN
SUCH TAX YEAR; AND
(2) A FULL-TIME WORK WEEK OR PART-TIME WORK WEEK AT ELIGIBLE PREMISES
PRIOR TO THE DATE OF RELOCATION SHALL NOT BE TAKEN INTO ACCOUNT IN
DETERMINING ELIGIBLE AGGREGATE EMPLOYMENT SHARES.
(C) "ELIGIBLE BUSINESS" MEANS ANY PERSON SUBJECT TO A TAX IMPOSED
UNDER CHAPTER FIVE, SUBCHAPTER TWO, THREE OR THREE-A OF CHAPTER SIX OF
TITLE ELEVEN OF THIS CODE, THAT:
(1) HAS BEEN CONDUCTING SUBSTANTIAL BUSINESS OPERATIONS AT ONE OR MORE
BUSINESS LOCATIONS OUTSIDE OF NEW YORK STATE FOR THE TWENTY-FOUR CONSEC-
UTIVE MONTHS IMMEDIATELY PRECEDING THE TAXABLE YEAR DURING WHICH SUCH
ELIGIBLE BUSINESS RELOCATES BUT HAS NOT MAINTAINED EMPLOYMENT SHARES AT
PREMISES IN NEW YORK STATE AT ANY TIME DURING THE PERIOD BEGINNING JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE AND ENDING ON THE DATE SUCH BUSINESS
ENTERS INTO A LEASE OR A CONTRACT TO PURCHASE THE PREMISES THAT WILL
QUALIFY AS ELIGIBLE PREMISES PURSUANT TO THIS CHAPTER; AND
(2) ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE RELOCATES ALL OR
PART OF SUCH BUSINESS OPERATIONS.
(D) "ELIGIBLE PREMISES" MEANS ONE OR MORE NON-RESIDENTIAL PREMISES
THAT CONSIST OF AT LEAST TWENTY THOUSAND SQUARE FEET THAT ARE:
(1) WHOLLY CONTAINED IN REAL PROPERTY LOCATED IN THE CITY OF NEW YORK;
AND
(2) FOR WHICH FINAL CERTIFICATES OF OCCUPANCY WERE ISSUED PRIOR TO
JANUARY FIRST, TWO THOUSAND.
(E) "EMPLOYMENT SHARE" MEANS, FOR EACH EMPLOYEE, PARTNER OR SOLE
PROPRIETOR OF AN ELIGIBLE BUSINESS, THE SUM OF: (1) THE NUMBER OF FULL-
TIME WORK WEEKS WORKED BY SUCH EMPLOYEE, PARTNER OR SOLE PROPRIETOR
DURING THE ELIGIBLE BUSINESS'S TAXABLE YEAR DIVIDED BY THE NUMBER OF
WEEKS IN THE TAXABLE YEAR; AND (2) THE NUMBER OF PART-TIME WORK WEEKS
WORKED BY SUCH EMPLOYEE, PARTNER OR SOLE PROPRIETOR DURING THE ELIGIBLE
BUSINESS'S TAXABLE YEAR DIVIDED BY AN AMOUNT EQUAL TO TWICE THE NUMBER
OF WEEKS IN THE TAXABLE YEAR. EMPLOYMENT SHARE SHALL NOT INCLUDE FULL-
TIME OR PART-TIME WORK WEEKS ATTRIBUTABLE TO EMPLOYEES, PARTNERS OR SOLE
PROPRIETORS ACQUIRED BY AN ELIGIBLE BUSINESS AS A RESULT OF A MERGER
WITH, ACQUISITION OF ANOTHER PERSON, OR A TRANSACTION HAVING A COMPARA-
BLE EFFECT, THAT OCCURS AFTER JUNE THIRTIETH, TWO THOUSAND TWENTY-FIVE,
AND BEFORE THE END OF THE TAXABLE YEAR IN WHICH A CREDIT IS CLAIMED BY
SUCH ELIGIBLE BUSINESS PURSUANT TO THIS SECTION, OR TO SUCCESSORS, IF
ANY, TO THOSE EMPLOYEES, PARTNERS OR SOLE PROPRIETORS.
(F) "FULL-TIME WORK WEEK" MEANS A WEEK DURING WHICH AT LEAST THIRTY-
FIVE HOURS OF GAINFUL WORK HAS BEEN PERFORMED BY AN EMPLOYEE, PARTNER OR
SOLE PROPRIETOR.
(G) "HOTEL SERVICES" MEANS ANY SERVICES THAT CONSIST PREDOMINATELY OF
THE LODGING OF GUESTS AT A BUILDING OR A PORTION THEREOF THAT IS REGU-
S. 3009 107 A. 3009
LARLY USED AND KEPT OPEN FOR SUCH SERVICES. HOTEL SERVICES SHALL INCLUDE
THE LODGING OF GUESTS AT AN APARTMENT HOTEL, A MOTEL, BOARDING HOUSE OR
CLUB, WHETHER OR NOT MEALS ARE SERVED.
(H) "LINEAR SCALAR" MEANS, FOR AN ELIGIBLE BUSINESS IN A TAXABLE YEAR,
THE QUOTIENT OF DIVIDING:
(1) THE TOTAL SQUARE FOOTAGE OF AN ELIGIBLE PREMISES; BY
(2) THE PRODUCT OF MULTIPLYING TWO HUNDRED FIFTY BY SUCH BUSINESS'S
AGGREGATE EMPLOYMENT SHARES.
(I) "MAXIMUM APPROVED EMPLOYMENT SHARES" MEANS A LIMITATION ON THE
AGGREGATE EMPLOYMENT SHARES THAT AN ELIGIBLE BUSINESS MAY RECEIVE IN ANY
TAXABLE YEAR DETERMINED BY THE MAYOR PURSUANT TO SECTION 22-628 OF THIS
CHAPTER BASED ON DOCUMENTATION SUBMITTED BY SUCH BUSINESS DEMONSTRATING
SUCH BUSINESS'S INTENTION TO RELOCATE. THE MAXIMUM APPROVED EMPLOYMENT
SHARES IS THE NUMBER OF AGGREGATE EMPLOYMENT SHARES SUCH BUSINESS
INTENDS TO RELOCATE AS INDICATED BY THE MAYOR ON THE APPLICABLE INITIAL
CERTIFICATION OF ELIGIBILITY.
(J) "MAYOR" MEANS THE MAYOR, OR AN AGENCY AS DESIGNATED BY THE MAYOR.
(K) "PART-TIME WORK WEEK" MEANS A WEEK DURING WHICH AT LEAST FIFTEEN
BUT LESS THAN THIRTY-FIVE HOURS OF GAINFUL WORK HAS BEEN PERFORMED BY AN
EMPLOYEE, PARTNER OR SOLE PROPRIETOR.
(L) "PERSON" INCLUDES ANY INDIVIDUAL, PARTNERSHIP, ASSOCIATION, JOINT-
STOCK COMPANY, CORPORATION, ESTATE OR TRUST, LIMITED LIABILITY COMPANY,
AND ANY COMBINATION OF THE FOREGOING.
(M) "PROGRAM TOTAL" MEANS THE SUM OF MAXIMUM APPROVED AGGREGATE
EMPLOYMENT SHARES INCLUDED IN ALL INITIAL CERTIFICATION OF ELIGIBILITY
ISSUED BY THE MAYOR.
(N) "RELOCATE" MEANS, WITH RESPECT TO AN ELIGIBLE BUSINESS, TO TRANS-
FER A PRE-EXISTING BUSINESS OPERATION TO AN ELIGIBLE PREMISES, OR TO
ESTABLISH A NEW BUSINESS OPERATION AT SUCH PREMISES, PROVIDED THAT AN
ELIGIBLE BUSINESS SHALL NOT BE DEEMED TO HAVE RELOCATED UNLESS AT LEAST
ONE EMPLOYEE, PARTNER OR SOLE PROPRIETOR OF THE ELIGIBLE BUSINESS IS
TRANSFERRED TO SUCH PREMISES FROM A PRE-EXISTING BUSINESS OPERATION
CONDUCTED OUTSIDE THE STATE OF NEW YORK. THE DATE OF RELOCATION SHALL BE
THE FIRST DAY ON WHICH THE INDIVIDUAL SO TRANSFERRED COMMENCES WORK AT
SUCH ELIGIBLE PREMISES. THE TAXABLE YEAR OF RELOCATION SHALL BE THE
TAXABLE YEAR IN WHICH THE DATE OF RELOCATION OCCURS. FOR PURPOSES OF
THIS CHAPTER, AN ELIGIBLE BUSINESS MAY RELOCATE ONLY ONCE BUT MAY ADD OR
SUBSTITUTE OTHER ELIGIBLE PREMISES THROUGHOUT SUCH PERIOD.
(O) "RETAIL ACTIVITY" MEANS ANY ACTIVITY WHICH CONSISTS PREDOMINATELY
OF:
(1) THE SALE, OTHER THAN THROUGH THE MAIL OR BY THE TELEPHONE OR BY
MEANS OF THE INTERNET, OF TANGIBLE PERSONAL PROPERTY TO A PERSON, FOR
ANY PURPOSE UNRELATED TO THE TRADE OR BUSINESS OF SUCH PERSON;
(2) THE SELLING OF A SERVICE TO AN INDIVIDUAL WHICH GENERALLY INVOLVES
THE PHYSICAL, MENTAL OR SPIRITUAL CARE OF SUCH INDIVIDUAL;
(3) THE PHYSICAL CARE OF THE PERSONAL PROPERTY OF ANY PERSON UNRELATED
TO THE TRADE OR BUSINESS OF SUCH PERSON; OR
(4) THE PROVISION OF A RETAIL BANKING SERVICE.
§ 22-628 AUTHORIZATION TO PROVIDE RELOCATION ASSISTANCE CREDIT PER
EMPLOYEE. (A) AN ELIGIBLE BUSINESS THAT RELOCATES SHALL BE ALLOWED TO
RECEIVE A CREDIT AGAINST A TAX IMPOSED BY CHAPTER FIVE, SUBCHAPTER TWO,
THREE OR THREE-A OF CHAPTER SIX OF TITLE ELEVEN OF THIS CODE, AS
DESCRIBED IN SUBDIVISION (R) OF SECTION 11-503, SUBDIVISION TWENTY-FOUR
OF SECTION 11-604, SECTION 11-643.10, OR SUBDIVISION TWENTY-FOUR OF
SECTION 11-654 OF THIS CODE.
S. 3009 108 A. 3009
(B) NO ELIGIBLE BUSINESS SHALL BE AUTHORIZED TO RECEIVE A CREDIT
AGAINST TAX UNDER THE PROVISIONS OF THIS CHAPTER AND OF TITLE ELEVEN OF
THIS CODE AS DESCRIBED IN SUBDIVISION (A) OF THIS SECTION, UNLESS THE
PREMISES WITH RESPECT TO WHICH IT IS CLAIMING THE CREDIT ARE ELIGIBLE
PREMISES AND UNTIL IT HAS OBTAINED AN INITIAL CERTIFICATION OF ELIGIBIL-
ITY FROM THE MAYOR AND AN ANNUAL CERTIFICATION FROM THE MAYOR AS TO THE
NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED BY SUCH ELIGI-
BLE BUSINESS THAT MAY QUALIFY FOR OBTAINING A TAX CREDIT FOR THE ELIGI-
BLE BUSINESS'S TAXABLE YEAR. EACH INITIAL CERTIFICATION OF ELIGIBILITY
SHALL INCLUDE THE MAXIMUM APPROVED EMPLOYMENT SHARES FOR THE ELIGIBLE
BUSINESS, WHICH SHALL NOT EXCEED FIVE HUNDRED EMPLOYMENT SHARES. ANY
WRITTEN DOCUMENTATION SUBMITTED TO THE MAYOR IN ORDER TO OBTAIN ANY SUCH
CERTIFICATION SHALL BE DEEMED A WRITTEN INSTRUMENT FOR PURPOSES OF
SECTION 175.00 OF THE PENAL LAW. AN APPLICATION FEE FOR SUCH CERTIF-
ICATION SHALL BE DETERMINED BY THE MAYOR. NO INITIAL CERTIFICATION OF
ELIGIBILITY SHALL BE ISSUED TO AN ELIGIBLE BUSINESS ON OR AFTER JULY
FIRST, TWO THOUSAND TWENTY-EIGHT UNLESS:
(1) PRIOR TO SUCH DATE SUCH BUSINESS HAS PURCHASED, LEASED OR ENTERED
INTO A CONTRACT TO PURCHASE OR LEASE ELIGIBLE PREMISES;
(2) PRIOR TO SUCH DATE SUCH BUSINESS SUBMITS A PRELIMINARY APPLICATION
FOR AN INITIAL CERTIFICATION OF ELIGIBILITY TO SUCH MAYOR WITH RESPECT
TO A PROPOSED RELOCATION TO SUCH PREMISES;
(3) SUCH BUSINESS ENTERS INTO A LEASE OR CONTRACT TO PURCHASE AN
ELIGIBLE PREMISES BETWEEN THE DATE THAT SUCH BUSINESS SUBMITS SUCH
PRELIMINARY APPLICATION AND THREE MONTHS THEREAFTER; AND
(4) SUCH BUSINESS RELOCATES TO SUCH PREMISES NOT LATER THAN THIRTY-SIX
MONTHS FROM THE DATE OF SUBMISSION OF SUCH PRELIMINARY APPLICATION.
(C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE MAYOR
SHALL NOT ISSUE AN INITIAL CERTIFICATION OF ELIGIBILITY THAT WOULD CAUSE
THE PROGRAM TOTAL TO EXCEED THREE THOUSAND MAXIMUM APPROVED EMPLOYMENT
SHARES. THE MAYOR SHALL APPROVE SUCH APPLICATIONS ON A FIRST-COME,
FIRST-SERVE BASIS AMONG ELIGIBLE BUSINESSES IN ACCORDANCE WITH RULES
PROMULGATED PURSUANT TO SUBDIVISION (D) OF THIS SECTION. THE MAYOR SHALL
INCLUDE ON THE MAYOR'S WEBSITE AN INDICATION REGARDING WHETHER THE
PROGRAM TOTAL HAS REACHED THREE THOUSAND MAXIMUM APPROVED EMPLOYMENT
SHARES.
(D) THE MAYOR SHALL BE AUTHORIZED TO PROMULGATE RULES AND REGULATIONS
TO ADMINISTER AND ENSURE COMPLIANCE WITH THE PROVISIONS OF THIS CHAPTER,
INCLUDING BUT NOT LIMITED TO RULES AND REGULATIONS TO PROVIDE FOR ALTER-
NATIVE METHODS TO MEASURE EMPLOYMENT SHARES IN INSTANCES WHERE AN ELIGI-
BLE BUSINESS IS NOT REQUIRED BY LAW TO MAINTAIN WEEKLY RECORDS OF FULL-
TIME WORK WEEKS AND PART-TIME WORK WEEKS OF EMPLOYEES, PARTNERS OR SOLE
PROPRIETORS.
(E) FOR THE DURATION OF THE BENEFIT PERIOD, THE RECIPIENT OF A CREDIT
SHALL FILE AN APPLICATION FOR AN ANNUAL CERTIFICATION EACH YEAR DEMON-
STRATING SUCH RECIPIENT'S ELIGIBILITY FOR SUCH CREDIT AND THE AVERAGE
WAGE AND BENEFITS OFFERED TO THE APPLICABLE RELOCATED EMPLOYEES USED IN
DETERMINING ELIGIBLE AGGREGATE EMPLOYMENT SHARES. SUCH MAYOR SHALL HAVE
THE AUTHORITY TO REQUIRE THAT STATEMENTS FILED UNDER THIS SUBDIVISION BE
FILED ELECTRONICALLY AND THAT SUCH STATEMENTS BE CERTIFIED.
(F) THE DEPARTMENT OF SMALL BUSINESS SERVICES MAY REQUIRE IN A
CONTRACT WITH A NOT-FOR-PROFIT CORPORATION THAT PROVIDES ECONOMIC DEVEL-
OPMENT SERVICES FOR THE CITY OF NEW YORK THAT SUCH CORPORATION WILL
PROVIDE ADMINISTRATIVE SUPPORT TO THE MAYOR AND ASSIST THE MAYOR'S
REVIEW OF ANY INITIAL CERTIFICATION OF ELIGIBILITY OR ANNUAL CERTIF-
S. 3009 109 A. 3009
ICATION, AND PROVIDE RECOMMENDATIONS REGARDING THE APPROVAL OF ANY CRED-
IT PURSUANT TO THIS CHAPTER.
§ 11. This act shall take effect July 1, 2025.
PART Y
Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax
law, as amended by section 1 of part K of chapter 59 of the laws of
2022, is amended to read as follows:
(a) General. A taxpayer shall be allowed a credit against the tax
imposed by this article. Such credit, to be computed as hereinafter
provided, shall be allowed for bioheating fuel, used for space heating
or hot water production for residential purposes within this state
purchased before January first, two thousand [twenty-six] TWENTY-NINE.
Such credit shall be $0.01 per percent of biodiesel per gallon of
bioheating fuel, not to exceed twenty cents per gallon, purchased by
such taxpayer. Provided, however, that on or after January first, two
thousand seventeen, this credit shall not apply to bioheating fuel that
is less than six percent biodiesel per gallon of bioheating fuel.
§ 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as
amended by section 2 of part K of chapter 59 of the laws of 2022, is
amended to read as follows:
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
be allowed for bioheating fuel, used for space heating or hot water
production for residential purposes within this state and purchased on
or after July first, two thousand six and before July first, two thou-
sand seven and on or after January first, two thousand eight and before
January first, two thousand [twenty-six] TWENTY-NINE. Such credit shall
be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to
exceed twenty cents per gallon, purchased by such taxpayer. Provided,
however, that on or after January first, two thousand seventeen, this
credit shall not apply to bioheating fuel that is less than six percent
biodiesel per gallon of bioheating fuel.
§ 3. This act shall take effect immediately.
PART Z
Section 1. Subdivision 6 of section 187-b of the tax law, as amended
by section 1 of part P of chapter 59 of the laws of 2022, is amended to
read as follows:
6. Termination. The credit allowed by subdivision two of this section
shall not apply in taxable years beginning after December thirty-first,
two thousand [twenty-five] TWENTY-EIGHT.
§ 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law,
as amended by section 2 of part P of chapter 59 of the laws of 2022, is
amended to read as follows:
(f) Termination. The credit allowed by paragraph (b) of this subdivi-
sion shall not apply in taxable years beginning after December thirty-
first, two thousand [twenty-five] TWENTY-EIGHT.
§ 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as
amended by section 3 of part P of chapter 59 of the laws of 2022, is
amended to read as follows:
(6) Termination. The credit allowed by this subsection shall not apply
in taxable years beginning after December thirty-first, two thousand
[twenty-five] TWENTY-EIGHT.
S. 3009 110 A. 3009
§ 4. This act shall take effect immediately.
PART AA
Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of
section 1115 of the tax law, as amended by section 1 of part J of chap-
ter 59 of the laws of 2024, is amended to read as follows:
(B) Until May thirty-first, two thousand [twenty-five] TWENTY-SIX, the
food and drink excluded from the exemption provided by clauses (i), (ii)
and (iii) of subparagraph (A) of this paragraph, and bottled water,
shall be exempt under this subparagraph: (i) when sold for one dollar
and fifty cents or less through any vending machine that accepts coin or
currency only; or (ii) when sold for two dollars or less through any
vending machine that accepts any form of payment other than coin or
currency, whether or not it also accepts coin or currency.
§ 2. This act shall take effect immediately.
PART BB
Section 1. Subdivision (f) of section 25-b of the labor law, as added
by section 2 of part Q of chapter 59 of the laws of 2022, is amended to
read as follows:
(f) The tax credits provided under this program shall be applicable to
taxable periods beginning before January first, two thousand [twenty-
six] TWENTY-NINE.
§ 2. This act shall take effect immediately.
PART CC
Section 1. Paragraph (a) of subdivision 29 of section 210-B of the
tax law, as amended by section 1 of part H of chapter 59 of the laws of
2022, is amended to read as follows:
(a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-six] TWENTY-NINE, a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than twelve contin-
uous and uninterrupted months (hereinafter referred to as the twelve-
month period) in a full-time or part-time position, a qualified veteran
within the state. The taxpayer may claim the credit in the year in which
the qualified veteran completes the twelve-month period of employment by
the taxpayer. If the taxpayer claims the credit allowed under this
subdivision, the taxpayer may not use the hiring of a qualified veteran
that is the basis for this credit in the basis of any other credit
allowed under this article.
§ 2. Subparagraph 2 of paragraph (b) of subdivision 29 of section
210-B of the tax law, as amended by section 1 of part H of chapter 59 of
the laws of 2022, is amended to read as follows:
(2) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-five] TWENTY-EIGHT; and
§ 3. Paragraph 1 of subsection (a-2) of section 606 of the tax law, as
amended by section 2 of part H of chapter 59 of the laws of 2022, is
amended to read as follows:
(1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
S. 3009 111 A. 3009
[twenty-six] TWENTY-NINE, a taxpayer shall be allowed a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than twelve continuous
and uninterrupted months (hereinafter referred to as the twelve-month
period) in a full-time or part-time position, a qualified veteran within
the state. The taxpayer may claim the credit in the year in which the
qualified veteran completes the twelve-month period of employment by the
taxpayer. If the taxpayer claims the credit allowed under this
subsection, the taxpayer may not use the hiring of a qualified veteran
that is the basis for this credit in the basis of any other credit
allowed under this article.
§ 4. Subparagraph (B) of paragraph 2 of subsection (a-2) of section
606 of the tax law, as amended by section 2 of part H of chapter 59 of
the laws of 2022, is amended to read as follows:
(B) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-five] TWENTY-EIGHT; and
§ 5. Paragraph 1 of subdivision (g-1) of section 1511 of the tax law,
as amended by section 3 of part H of chapter 59 of the laws of 2022, is
amended to read as follows:
(1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-six] TWENTY-NINE, a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than twelve contin-
uous and uninterrupted months (hereinafter referred to as the twelve-
month period) in a full-time or part-time position, a qualified veteran
within the state. The taxpayer may claim the credit in the year in which
the qualified veteran completes the twelve-month period of employment by
the taxpayer. If the taxpayer claims the credit allowed under this
subdivision, the taxpayer may not use the hiring of a qualified veteran
that is the basis for this credit in the basis of any other credit
allowed under this article.
§ 6. Subparagraph (B) of paragraph 2 of subdivision (g-1) of section
1511 of the tax law, as amended by section 3 of part H of chapter 59 of
the laws of 2022, is amended to read as follows:
(B) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-five] TWENTY-EIGHT; and
§ 7. This act shall take effect immediately.
PART DD
Section 1. Section 5 of part HH of chapter 59 of the laws of 2014,
amending the tax law relating to a musical and theatrical production
credit, as amended by section 1 of part HH of chapter 59 of the laws of
2021, is amended to read as follows:
§ 5. This act shall take effect immediately, provided that section two
of this act shall take effect on January 1, 2015, and shall apply to
taxable years beginning on or after January 1, 2015, with respect to
"qualified production expenditures" and "transportation expenditures"
paid or incurred on or after such effective date, regardless of whether
the production of the qualified musical or theatrical production
commenced before such date, provided further that this act shall expire
and be deemed repealed January 1, [2026] 2030.
§ 2. This act shall take effect immediately.
S. 3009 112 A. 3009
PART EE
Section 1. Section 2 of part U of chapter 59 of the laws of 2017, amend-
ing the tax law, relating to the financial institution data match system
for state tax collection purposes, as amended by section 1 of part A of
chapter 59 of the laws of 2020, is amended to read as follows:
§ 2. This act shall take effect immediately and shall expire April 1,
[2025] 2030 when upon such date the provisions of this act shall be
deemed repealed.
§ 2. This act shall take effect immediately.
PART FF
Section 1. This act enacts into law major components of legislation
necessary to implement certain provisions regarding simplifying the
pari-mutuel tax rate system. Each component is wholly contained within a
Subpart identified as Subparts A through B. The effective date for each
particular provision contained within such Subpart is set forth in the
last section of such Subpart. Any provision in any section contained
within a Subpart, including the effective date of the Subpart, 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 Subpart in which it is found. Section three
of this act sets forth the general effective date of this act.
SUBPART A
Section 1. The racing, pari-mutuel wagering and breeding law is
amended by adding a new section 136 to read as follows:
§ 136. PARI-MUTUEL WAGERING TAX. 1. NOTWITHSTANDING ANY LAW TO THE
CONTRARY:
(A) THE EXCISE TAX IMPOSED ON EACH THOROUGHBRED RACETRACK CONDUCTING
PARI-MUTUEL WAGERING ON LIVE RACING SHALL BE ONE AND ONE-TENTH OF ONE
PERCENT (1.1%) OF ALL MONEY WAGERED ON LIVE RACES AT SUCH TRACK;
(B) THE EXCISE TAX IMPOSED ON EACH HARNESS RACETRACK CONDUCTING PARI-
MUTUEL WAGERING ON LIVE RACING SHALL BE ONE PERCENT (1%) OF ALL MONEY
WAGERED ON LIVE RACES AT SUCH TRACK; AND
(C) THE EXCISE TAX IMPOSED ON EACH OFF-TRACK BETTING CORPORATION FOR
THE PRIVILEGE OF CONDUCTING PARI-MUTUEL WAGERING ON LIVE RACING SHALL BE
SIX-TENTHS OF ONE PERCENT (0.6%) OF ALL MONEY WAGERED ON LIVE RACES
THROUGH SUCH CORPORATION.
2. BEGINNING WITH STATE FISCAL YEAR TWO THOUSAND TWENTY-SIX, THE
AGGREGATE AMOUNT OF THE PARI-MUTUEL WAGERING TAX PAID BY A HARNESS TRACK
PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION IN A STATE
FISCAL YEAR SHALL NOT EXCEED THE PARI-MUTUEL WAGERING TAX ATTRIBUTABLE
TO LIVE RACING HANDLE PAID BY SUCH HARNESS TRACK IN STATE FISCAL YEAR
TWO THOUSAND TWENTY-FOUR.
3. ALL PARI-MUTUEL WAGERING TAXES SHALL BE COLLECTED AND REMITTED IN
THE SAME MANNER AS SUCH TAXES WERE COLLECTED AND REMITTED PRIOR TO THE
ENACTMENT OF THIS SECTION.
4. BREAKS, AS DEFINED IN SECTIONS TWO HUNDRED THIRTY-SIX, TWO HUNDRED
THIRTY-EIGHT, THREE HUNDRED EIGHTEEN, AND FOUR HUNDRED EIGHTEEN OF THIS
CHAPTER ARE NOT PERMITTED, UNLESS REQUIRED BY ANOTHER JURISDICTION
PURSUANT TO SECTION NINE HUNDRED FIVE OF THIS CHAPTER. ALL DISTRIBUTIONS
TO THE HOLDERS OF WINNING TICKETS SHALL BE CALCULATED TO THE NEAREST
PENNY.
S. 3009 113 A. 3009
5. (A) THOROUGHBRED RACETRACKS AND THE CORPORATION ESTABLISHED BY
SECTION TWO HUNDRED FIFTY-TWO OF THIS CHAPTER, HARNESS RACETRACKS AND
THE CORPORATION ESTABLISHED BY SECTION THREE HUNDRED THIRTY OF THIS
CHAPTER, AND REGIONAL OFF-TRACK BETTING CORPORATIONS MAY AGREE TO IMPLE-
MENT A REVENUE DISTRIBUTION SCHEME THAT DIFFERS FROM THE DISTRIBUTION
SCHEME OTHERWISE ESTABLISHED BY LAW. A COPY OF ANY SUCH AGREEMENT SHALL
BE PROVIDED TO THE COMMISSION AND SHALL SUPERSEDE THE OTHERWISE APPLICA-
BLE STATUTORY DISTRIBUTION SCHEME.
(B) ANY AGREEMENT ESTABLISHED PURSUANT TO PARAGRAPH (A) OF THIS SUBDI-
VISION SHALL INCLUDE SIGNATURES FROM ALL INVOLVED PARTIES, SET FORTH THE
CURRENT STATUTE BEING SUPERSEDED BY THE AGREEMENT, AND THE NEW TERMS AND
CONDITIONS OF THE DISTRIBUTION OF MONIES. THE COMMISSION SHALL POST ON
THE COMMISSION'S WEBSITE THE APPLICABLE SUPERSEDING DISTRIBUTION SCHEME
WITHIN THIRTY DAYS OF RECEIPT BY THE COMMISSION.
(C) THIS SUBDIVISION SHALL SUPERSEDE ALL INCONSISTENT PROVISIONS OF
LAW.
§ 2. Section 908 of the racing, pari-mutuel wagering and breeding law
is REPEALED.
§ 3. Section 1011 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 243 of the laws of 2020, is amended to read
as follows:
§ 1011. Certain credit to off-track betting corporations. a. [During
the period that a franchised corporation is simulcasting from a facility
operated by such franchised corporation in the second zone as defined in
section two hundred forty-seven of this chapter to a facility operated
by such franchised corporation pursuant to section one thousand seven of
this article, any off-track betting corporation operating in a county in
which such association maintains a racetrack shall receive a credit of
twenty-five percent of the state taxes due pursuant to section five
hundred twenty-seven of this chapter on wagers placed on races conducted
by such association, provided that such corporation has entered into an
agreement with the employee organization representing the employees of
such corporation in which it has agreed not to reduce its workforce as a
result of such simulcasting.
b.] During the days that a franchised corporation is simulcasting from
a racetrack facility operated by such franchised corporation and located
in the first zone to a racetrack facility operated by such franchised
corporation located wholly within a city of one million or more, one
percent of the total wagers placed at such receiving facility shall be
paid to such city.
[c.] B. During the days that a franchised corporation is simulcasting
from a facility located wholly within a city in the first zone to a
racetrack facility operated by such franchised corporation located
partially within a city with a population in excess of one million and
partially within a county, one-half percent of the total wagers placed
at such receiving facility shall be paid to such city and one-half
percent of such wagers shall be paid to such county.
§ 4. This act shall take effect September 1, 2025.
SUBPART B
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of part P of chapter 59 of the laws of 2024, is amended to read as
follows:
S. 3009 114 A. 3009
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended [until
June thirtieth, two thousand twenty-five]; provided, however, that any
party to such agreement may elect to terminate such agreement upon
conveying written notice to all other parties of such agreement at least
forty-five days prior to the effective date of the termination, via
registered mail. Any party to an agreement receiving such notice of an
intent to terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between the
parties as will permit continuation of an in-home experiment [until June
thirtieth, two thousand twenty-five]; and (iv) no in-home simulcasting
in the thoroughbred special betting district shall occur without the
approval of the regional thoroughbred track.
§ 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
S. 3009 115 A. 3009
section 2 of part P of chapter 59 of the laws of 2024, is amended to
read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight [and continuing through
June thirtieth, two thousand twenty-five], the amount used exclusively
for purses to be awarded at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to the total commissions that
would have been available to such track prior to July twenty-first,
nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of part P of chapter 59 of the laws of 2024, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack [until June
thirtieth, two thousand twenty-five and on any day regardless of whether
or not a franchised corporation is conducting a race meeting in Saratoga
county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand twenty-five]. On any day on which a franchised corporation has
not scheduled a racing program but a thoroughbred racing corporation
located within the state is conducting racing, each off-track betting
corporation branch office and each simulcasting facility licensed in
accordance with section one thousand seven (that has entered into a
written agreement with such facility's representative horsemen's organ-
ization, as approved by the commission), one thousand eight, or one
thousand nine of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred tracks located in
another state or foreign country subject to the following provisions:
§ 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part P of chapter 59 of the
laws of 2024, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
[during] BEGINNING WITH the period COMMENCING July first, nineteen
hundred ninety-four [through June thirtieth, two thousand twenty-five].
This section shall supersede all inconsistent provisions of this chap-
ter.
§ 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of part P of chapter 59 of the laws of 2024, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack [until
June thirtieth, two thousand twenty-five]. Every off-track betting
corporation branch office and every simulcasting facility licensed in
accordance with section one thousand seven that have entered into a
written agreement with such facility's representative horsemen's organ-
S. 3009 116 A. 3009
ization as approved by the commission, one thousand eight or one thou-
sand nine of this article shall be authorized to accept wagers and
display the live full-card simulcast signal of thoroughbred tracks
(which may include quarter horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject to the following
provisions; provided, however, no such written agreement shall be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
§ 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part P of chapter
59 of the laws of 2024, is amended to read as follows:
Notwithstanding any other provision of this chapter, for the period
COMMENCING July twenty-fifth, two thousand one [through September
eighth, two thousand twenty-four], when a franchised corporation is
conducting a race meeting within the state at Saratoga Race Course,
every off-track betting corporation branch office and every simulcasting
facility licensed in accordance with section one thousand seven (that
has entered into a written agreement with such facility's representative
horsemen's organization as approved by the commission), one thousand
eight or one thousand nine of this article shall be authorized to accept
wagers and display the live simulcast signal from thoroughbred tracks
located in another state, provided that such facility shall accept
wagers on races run at all in-state thoroughbred tracks which are
conducting racing programs subject to the following provisions;
provided, however, no such written agreement shall be required of a
franchised corporation licensed in accordance with section one thousand
seven of this article.
§ 7. Section 32 of chapter 281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part P of chapter 59 of the
laws of 2024, is amended to read as follows:
§ 32. This act shall take effect immediately [and the pari-mutuel tax
reductions in section six of this act shall expire and be deemed
repealed on July 1, 2025]; provided, however, that nothing contained
herein shall be deemed to affect the application, qualification, expira-
tion, or repeal of any provision of law amended by any section of this
act, and such provisions shall be applied or qualified or shall expire
or be deemed repealed in the same manner, to the same extent and on the
same date as the case may be as otherwise provided by law; provided
further, however, that sections twenty-three and twenty-five of this act
shall remain in full force and effect only until May 1, 1997 and at such
time shall be deemed to be repealed.
§ 8. Section 54 of chapter 346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by section
8 of part P of chapter 59 of the laws of 2024, is amended to read as
follows:
§ 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect on January
1, 1991[, and section 1013 of the racing, pari-mutuel wagering and
breeding law, as added by section thirty-eight of this act, shall expire
and be deemed repealed on July 1, 2025]; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
S. 3009 117 A. 3009
§ 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part P
of chapter 59 of the laws of 2024, is amended to read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
before April first of the year following the year of their purchase,
less an amount that shall be established and retained by such franchised
corporation of between twelve to seventeen percent of the total deposits
in pools resulting from on-track regular bets, and fourteen to twenty-
one percent of the total deposits in pools resulting from on-track
multiple bets and fifteen to twenty-five percent of the total deposits
in pools resulting from on-track exotic bets and fifteen to thirty-six
percent of the total deposits in pools resulting from on-track super
exotic bets, plus the breaks. The retention rate to be established is
subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five percent
of regular bets and four percent of multiple bets plus twenty percent of
the breaks; for exotic wagers seven and one-half percent plus twenty
percent of the breaks, and for super exotic bets seven and one-half
percent plus fifty percent of the breaks.
For the period COMMENCING April first, two thousand one [through
December thirty-first, two thousand twenty-five], such tax on all wagers
shall be one and six-tenths percent, plus, in each such period, twenty
percent of the breaks. Payment to the New York state thoroughbred breed-
ing and development fund by such franchised corporation shall be one-
half of one percent of total daily on-track pari-mutuel pools resulting
from regular, multiple and exotic bets and three percent of super exotic
bets and for the period COMMENCING April first, two thousand one
[through December thirty-first, two thousand twenty-five], such payment
shall be seven-tenths of one percent of regular, multiple and exotic
pools.
§ 10. This act shall take effect immediately.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
S. 3009 118 A. 3009
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through B of this act shall
be as specifically set forth in the last section of such Subparts.
PART GG
Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 174 of the laws of
2013, is amended to read as follows:
1. (A) For a gaming facility in zone two, there is hereby imposed a
tax on gross gaming revenues. The amount of such tax imposed shall be as
follows; provided, however, should a licensee have agreed within its
application to supplement the tax with a binding supplemental fee
payment exceeding the aforementioned tax rate, such tax and supplemental
fee shall apply for a gaming facility:
[(a)] (1) in region two, forty-five percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
[(b)] (2) in region one, thirty-nine percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
[(c)] (3) in region five, thirty-seven percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
(B) (1) NOTWITHSTANDING THE TAX RATES ON GROSS GAMING REVENUE FROM
SLOT MACHINES PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION, FOR THE
PERIOD OF APRIL FIRST, TWO THOUSAND TWENTY-SIX THROUGH JUNE THIRTIETH,
TWO THOUSAND TWENTY-EIGHT, EACH GAMING FACILITY IN ZONE TWO SHALL
CONTINUE TO BE SUBJECT TO THE SAME TAX RATE ON GROSS GAMING REVENUE FROM
SLOT MACHINES AS WAS IMPOSED IN THE PRECEDING FISCAL YEAR.
(2) AS A CONDITION OF THE LOWER SLOT MACHINE TAX RATE, THE LICENSED
GAMING FACILITY MUST BE CURRENT ON ALL STATUTORY OBLIGATIONS TO THE
STATE OR HAVE ENTERED INTO AND BE IN COMPLIANCE WITH A REPAYMENT AGREE-
MENT WITH THE STATE. IF THE COMMISSION, IN ITS SOLE DISCRETION, DETER-
MINES THAT A GAMING FACILITY HAS NOT ADHERED TO THIS CONDITION FOR ANY
SUCH TIME PERIOD, THE GAMING FACILITY SHALL FORFEIT THIS LOWER SLOT
MACHINE TAX RATE FOR SUCH TIME PERIOD.
(3) EACH GAMING FACILITY SHALL PROVIDE AN ANNUAL FISCAL REPORT TO THE
GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE
SENATE, DIRECTOR OF THE DIVISION OF BUDGET AND THE COMMISSION DETAILING
ACTUAL USE OF THE FUNDS RESULTING FROM THE LOWER SLOT MACHINE TAX RATE.
SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY IMPACT ON EMPLOY-
MENT LEVELS SINCE RECEIVING THE LOWER SLOT MACHINE TAX RATE, AN ACCOUNT-
ING OF THE USE OF SUCH FUNDS, ANY OTHER MEASURES IMPLEMENTED TO IMPROVE
THE FINANCIAL STABILITY OF THE GAMING FACILITY AND ANY OTHER INFORMATION
AS DEEMED NECESSARY BY THE COMMISSION. SUCH REPORT SHALL BE DUE NO LATER
THAN JANUARY FIRST OF EACH YEAR AND SHALL BE POSTED ON THE COMMISSION
WEBSITE.
§ 2. Section 2 of part OOO of chapter 59 of the laws of 2021 amending
the racing, pari-mutuel wagering and breeding law relating to the tax
on gaming revenues, is amended to read as follows:
S. 3009 119 A. 3009
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed [five years after such date] APRIL 1, 2026.
§ 3. This act shall take effect immediately; provided however, that
section one of this act shall take effect on the same date as the rever-
sion of subdivision 1 of section 1351 of the racing, pari-mutuel wager-
ing and breeding law as provided in section 2 of part OOO of chapter 59
of the laws of 2021, as amended; provided further, that section one of
this act shall expire and be deemed repealed July 1, 2028.
PART HH
Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel
wagering and breeding law, as amended by section 1 of part O of chapter
59 of the laws of 2024, is amended to read as follows:
2. a. Notwithstanding any other provision of law or regulation to the
contrary, from April nineteenth, two thousand twenty-one to March thir-
ty-first, two thousand twenty-two, twenty-three percent of the funds,
not to exceed two and one-half million dollars, in the Catskill off-
track betting corporation's capital acquisition fund and twenty-three
percent of the funds, not to exceed four hundred forty thousand dollars,
in the Capital off-track betting corporation's capital acquisition fund
established pursuant to this section shall also be available to such
off-track betting corporation for the purposes of statutory obligations,
payroll, and expenditures necessary to accept authorized wagers.
b. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-two to March thirty-
first, two thousand twenty-three, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and twenty-three percent of the funds, not to exceed four
hundred forty thousand dollars, in the Capital off-track betting corpo-
ration's capital acquisition fund established pursuant to this section,
shall be available to such off-track betting corporations for the
purposes of statutory obligations, payroll, and expenditures necessary
to accept authorized wagers.
c. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-three to March thirty-
first, two thousand twenty-four, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
d. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-four to March thirty-
first, two thousand twenty-five, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
S. 3009 120 A. 3009
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
e. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-FIVE TO MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-SIX, ONE MILLION DOLLARS IN THE CAPITAL OFF-
TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED PURSU-
ANT TO THIS SECTION SHALL BE AVAILABLE TO SUCH OFF-TRACK BETTING
CORPORATION FOR THE PURPOSES OF EXPENDITURES NECESSARY TO ACCEPT AUTHOR-
IZED WAGERS; PAST DUE STATUTORY OBLIGATIONS TO NEW YORK LICENSED OR
FRANCHISED RACING CORPORATIONS OR ASSOCIATIONS; PAST DUE CONTRACTUAL
OBLIGATIONS DUE TO OTHER RACING ASSOCIATIONS OR ORGANIZATIONS FOR THE
COST OF ACQUIRING A SIMULCAST SIGNAL; PAST DUE STATUTORY PAYMENT OBLI-
GATIONS DUE TO THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT
FUND CORPORATION, AGRICULTURE AND NEW YORK STATE HORSE BREEDING DEVELOP-
MENT FUND, AND THE HARRY M. ZWEIG MEMORIAL FUND FOR EQUINE RESEARCH; AND
PAST DUE OBLIGATIONS DUE THE STATE.
F. Prior to a corporation being able to utilize the funds authorized
by paragraph c [or], d OR E of this subdivision, the corporation must
attest that the surcharge monies from section five hundred thirty-two of
this chapter are being held separate and apart from any amounts other-
wise authorized to be retained from pari-mutuel pools and all surcharge
monies have been and will continue to be paid to the localities as
prescribed in law. Once this condition is satisfied, the corporation
must submit an expenditure plan to the gaming commission for review.
Such plan shall include the corporation's outstanding liabilities,
projected revenue for the upcoming year, a detailed explanation of how
the funds will be used, and any other information necessary to detail
such plan as determined by the commission. Upon review, the commission
shall make a determination as to whether the requirements of this para-
graph have been satisfied and notify the corporation of expenditure plan
approval. In the event the commission determines the requirements of
this paragraph have not been satisfied, the commission shall notify the
corporation of all deficiencies necessary for approval. As a condition
of such expenditure plan approval, the corporation shall provide a
report to the commission no later than the last day of the calendar year
for which the funds are requested, which shall include an accounting of
the use of such funds. At such time, the commission may cause an inde-
pendent audit to be conducted of the corporation's books to ensure that
all moneys were spent as indicated in such approved plan. The audit
shall be paid for from money in the fund established by this section. If
the audit determines that a corporation used the money authorized under
this section for a purpose other than one listed in their expenditure
plan, then the corporation shall reimburse the capital acquisition fund
for the unauthorized amount.
§ 2. This act shall take effect immediately.
S. 3009 121 A. 3009
PART II
Section 1. Subdivision 6 of section 1012-a of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 243 of the laws of
2020, is amended and a new subdivision 7 is added to read as follows:
6. multi-jurisdictional account wagering providers shall pay a market
origin fee equal to five percent on each wager accepted from New York
residents. Multi-jurisdictional account wagering providers shall make
the required payments to the market origin account on or before the
fifth business day of each month and such required payments shall cover
payments due for the period of the preceding calendar month; provided,
however, that such payments required to be made on April fifteenth shall
be accompanied by a report under oath, showing the total of all such
payments, together with such other information as the commission may
require. A penalty of five percent and interest at the rate of one
percent per month from the date the report is required to be filed to
the date the payment shall be payable in case any payments required by
this subdivision are not paid when due. If the commission determines
that any moneys received under this subdivision were paid in error, the
commission may cause the same to be refunded without interest out of any
moneys collected thereunder, provided an application therefor is filed
with the commission within one year from the time the erroneous payment
was made. The commission shall pay into the racing regulation account,
under the joint custody of the comptroller and the commission, the total
amount of the fee collected pursuant to this section[.]; AND
7. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL, AT THE
SAME TIME AND IN ADDITION TO THE FEE ESTABLISHED IN SUBDIVISION SIX OF
THIS SECTION, PAY AN ADDITIONAL FEE EQUAL TO ONE PERCENT ON EACH WAGER
ACCEPTED FROM NEW YORK RESIDENTS. SUCH PAYMENTS SHALL BE SUBJECT TO THE
SAME PENALTIES AND INTEREST PAYMENTS AS THE MARKET ORIGIN FEE. MONEYS
COLLECTED PURSUANT TO THIS SUBDIVISION SHALL BE PAID BY THE MULTI-JURIS-
DICTIONAL ACCOUNT WAGERING PROVIDER TO THE COMMISSION FOR DEPOSIT INTO
THE GENERAL FUND OF THE STATE TREASURY.
§ 2. Section 703 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 1-a to read as follows:
1-A. IN ADDITION TO THE MONEYS SPECIFIED IN SUBDIVISION ONE OF THIS
SECTION, UP TO AN AMOUNT EQUIVALENT TO ALL MONEYS COLLECTED PURSUANT TO
SUBDIVISION SEVEN OF SECTION ONE THOUSAND TWELVE-A OF THIS CHAPTER SHALL
BE APPROPRIATED OR TRANSFERRED TO THE FUND FROM THE GENERAL FUND OF THE
STATE TREASURY TO BE USED FOR THE PURPOSES CONTAINED IN THE AGREEMENT
ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF SECTION SEVEN HUNDRED FOUR
OF THIS ARTICLE, PROVIDED THAT SUCH AMOUNT SHALL NOT EXCEED WHAT IS
NECESSARY TO COVER ALL EXPENSES AS CONTAINED IN SUCH AGREEMENT.
§ 3. Section 704 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 7 to read as follows:
7. (A) THE MONEYS APPROPRIATED OR TRANSFERRED TO THE FUND FROM THE
GENERAL FUND OF THE STATE TREASURY PURSUANT TO SUBDIVISION ONE-A OF
SECTION SEVEN HUNDRED THREE OF THIS ARTICLE SHALL BE EXPENDED FOR A
THREE-YEAR RESEARCH PROPOSAL CONDUCTED PURSUANT TO AN AGREEMENT BETWEEN
THE DEAN OF THE CORNELL UNIVERSITY COLLEGE OF VETERINARY MEDICINE AND
THE EXECUTIVE DIRECTOR OF THE COMMISSION. SUCH AGREEMENT SHALL, AT A
MINIMUM, REQUIRE THE FOLLOWING:
(I) PROPOSED RESEARCH TO IDENTIFY THE INCIDENT OF FETLOCK FRACTURES
AND PRE-FRACTURE PATHOLOGY IN THOROUGHBRED RACEHORSES, WITH AND WITHOUT
LAMENESS;
S. 3009 122 A. 3009
(II) PROPOSED RESEARCH TO DETERMINE THE SENSITIVITY AND SPECIFICITY OF
STANDING COMPUTED TOMOGRAPHY, POSITRON EMISSION TOMOGRAPHY, AND MAGNETIC
RESONANCE IMAGING OF THOROUGHBRED RACEHORSES COMPARED TO THAT OF DIGITAL
RADIOGRAPHS;
(III) USE OF PHOTO-COUNTING COMPUTED TOMOGRAPHY AND HIGH FIELD MAGNET-
IC RESONANCE IMAGING TO FURTHER DEFINE EARLY BONE PATHOLOGY IN THOROUGH-
BRED RACEHORSES THAT SUFFER FATAL FRACTURES OF THE FETLOCK JOINT, TO
FURTHER CHARACTERIZE BLOOD BIOMARKER FINDINGS IN HEALTHY AND CLINICALLY
LAME HORSES IN A LARGE POPULATION OF THOROUGHBRED RACEHORSES; AND
(IV) ATTEMPTED REFINEMENT OF A RISK FACTOR INDEX FOR FATAL MUSCULOSK-
ELETAL INJURY FOR THOROUGHBRED RACING BASED ON EPIDEMIOLOGICAL FINDINGS,
PRELIMINARY SCANNING TECHNOLOGY, CLINICAL EXAMINATION, AND ADVANCE IMAG-
ING.
(B) THE MONEYS APPROPRIATED OR TRANSFERRED TO THE FUND FROM THE GENER-
AL FUND OF THE STATE TREASURY PURSUANT TO SUBDIVISION ONE-A OF SECTION
SEVEN HUNDRED THREE OF THIS ARTICLE MAY BE USED TO PURCHASE EQUIPMENT
AND FUND STAFFING NEEDS NECESSARY TO CARRY OUT THE RESEARCH TASKS SPECI-
FIED IN PARAGRAPH (A) OF THIS SUBDIVISION.
(C) ANY RESIDUAL UNEXPENDED FUNDS COLLECTED PURSUANT TO SUBDIVISION
SEVEN OF SECTION ONE THOUSAND TWELVE-A OF THIS CHAPTER SHALL REMAIN IN
THE GENERAL FUND OF THE STATE TREASURY.
§ 4. Section 208 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 10 to read as follows:
10. IT IS INCUMBENT UPON THE FRANCHISED CORPORATION TO ENSURE THE
HEALTH AND SAFETY OF ITS EQUINE PARTICIPANTS. TO ACCOMPLISH THAT GOAL,
THE FRANCHISED CORPORATION SHALL, BY SEPTEMBER FIRST, TWO THOUSAND TWEN-
TY-FIVE, REMIT A ONE-TIME PAYMENT OF TWO MILLION DOLLARS TO THE HARRY M.
ZWEIG MEMORIAL FUND, ESTABLISHED UNDER SECTION SEVEN HUNDRED ONE OF THIS
CHAPTER, TO BE USED FOR THE CONDUCT OF RESEARCH AS SPECIFIED IN SUBDIVI-
SION SEVEN OF SECTION SEVEN HUNDRED FOUR OF THIS CHAPTER.
§ 5. This act shall take effect immediately, and shall apply to wagers
from New York residents accepted on and after September 1, 2025 through
August 31, 2028; provided, however that the provisions of this act shall
expire and be deemed repealed on September 1, 2028.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through II of this act shall be
as specifically set forth in the last section of such Parts.
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