NY State Senate Bill 2025-S3009

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

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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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 10, 2025	print number 3009b
Mar 10, 2025	amend (t) and recommit to finance
Feb 21, 2025	print number 3009a
Feb 21, 2025	amend (t) and recommit to finance
Jan 22, 2025	referred to finance

Bill Amendments

Original

B (Active)

2025-S3009 - Details

See Assembly Version of this Bill:: A3009
Current Committee:: Senate Finance
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2025-S3009 - 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 senior inflation reduction credit for the tax years 2025, 2026 and 2027 (Part A); provides for a middle-class tax cut; extends the temporary personal income tax high income surcharge (Part B)

2025-S3009 - 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.

2025-S3009A - Details

See Assembly Version of this Bill:: A3009
Current Committee:: Senate Finance
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2025-S3009A - Summary

2025-S3009A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 3009--A                                            A. 3009--A
 
                       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 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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 --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD12574-02-5
 S. 3009--A                          2                         A. 3009--A
 
   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
   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
 S. 3009--A                          3                         A. 3009--A
 
   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
   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
 S. 3009--A                          4                         A. 3009--A
 
 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,
 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:
 S. 3009--A                          5                         A. 3009--A
 
 [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
 $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
 S. 3009--A                          6                         A. 3009--A
 
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,477,616 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 $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
 S. 3009--A                          7                         A. 3009--A

 $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
 $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
 S. 3009--A                          8                         A. 3009--A

   (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
                                       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
 S. 3009--A                          9                         A. 3009--A

                                       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]
 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
 S. 3009--A                         10                         A. 3009--A
 
                                       $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                       $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
 S. 3009--A                         11                         A. 3009--A
 
   (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
 5.40 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:
 S. 3009--A                         12                         A. 3009--A
 
   (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
 $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
 S. 3009--A                         13                         A. 3009--A
 
   (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
 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
 S. 3009--A                         14                         A. 3009--A
 
   (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
 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
 S. 3009--A                         15                         A. 3009--A
 
 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
 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
 S. 3009--A                         16                         A. 3009--A
 
   (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
 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-
 S. 3009--A                         17                         A. 3009--A
 
 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
 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; (II) SEVENTY-FIVE THOUSAND DOLLARS IN THE CASE
 OF A TAXPAYER FILING AS SINGLE, HEAD OF HOUSEHOLD, OR QUALIFIED  SURVING
 SPOUSE;  AND  (III) FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF A 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.
 S. 3009--A                         18                         A. 3009--A
 
   (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
 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
 S. 3009--A                         19                         A. 3009--A
 
 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
 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
 S. 3009--A                         20                         A. 3009--A
 
 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.
   (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
 S. 3009--A                         21                         A. 3009--A
 
 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:
   (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
 S. 3009--A                         22                         A. 3009--A
 
 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 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
 S. 3009--A                         23                         A. 3009--A

 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.
   (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
 S. 3009--A                         24                         A. 3009--A

 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:
   (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:
 S. 3009--A                         25                         A. 3009--A
 
   (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
 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-
 S. 3009--A                         26                         A. 3009--A

 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:
   (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-
 S. 3009--A                         27                         A. 3009--A

 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 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:
 S. 3009--A                         28                         A. 3009--A
 
   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.
   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.  A LOAN PROVIDED IN EXCHANGE FOR A MORTGAGE OF THE  RESIDENCE
 THAT IS BEING PURCHASED SHALL NOT BE CONSIDERED FUNDING FOR THE PURPOSES
 OF THIS SUBDIVISION, PROVIDED THAT SUCH MORTGAGE MUST BE OF A TYPE WHICH
 MEMBERS OF THE GENERAL PUBLIC CAN APPLY.
   (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-
 S. 3009--A                         29                         A. 3009--A
 
 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.
   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
 S. 3009--A                         30                         A. 3009--A
 
 ____________________________
 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
 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
 S. 3009--A                         31                         A. 3009--A
 
 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.
   §  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
 S. 3009--A                         32                         A. 3009--A

 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.
   § 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
 S. 3009--A                         33                         A. 3009--A
 
 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.
   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-
 S. 3009--A                         34                         A. 3009--A
 
 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
 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
 S. 3009--A                         35                         A. 3009--A
 
 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
 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.
 S. 3009--A                         36                         A. 3009--A

   § 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
 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.
 S. 3009--A                         37                         A. 3009--A
 
   §  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
   (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
 S. 3009--A                         38                         A. 3009--A
 
 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
 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
 S. 3009--A                         39                         A. 3009--A
 
           $ 183 million                              2016
           $ 183 million                              2017
           $ 183 million                              2018
           $ 183 million                              2019
           $ 183 million                              2020
           $ 183 million                              2021
           $ 133 million                              2022
           $ 83 million                               2023
           $ 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.
 S. 3009--A                         40                         A. 3009--A
 
   §  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
 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.
 S. 3009--A                         41                         A. 3009--A

         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
 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
 S. 3009--A                         42                         A. 3009--A
 
 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.
   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
 S. 3009--A                         43                         A. 3009--A
 
 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-
 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
 S. 3009--A                         44                         A. 3009--A
 
 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 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
 S. 3009--A                         45                         A. 3009--A
 
 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,
 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,
 S. 3009--A                         46                         A. 3009--A
 
 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-
 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
 S. 3009--A                         47                         A. 3009--A
 
 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-
 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:
 S. 3009--A                         48                         A. 3009--A
 
   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
 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-
 S. 3009--A                         49                         A. 3009--A
 
 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
 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
 S. 3009--A                         50                         A. 3009--A
 
 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-
 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-
 S. 3009--A                         51                         A. 3009--A
 
 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.
   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;
 S. 3009--A                         52                         A. 3009--A

   (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
 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.
 S. 3009--A                         53                         A. 3009--A

   (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.
   (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
 S. 3009--A                         54                         A. 3009--A

 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
 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
 S. 3009--A                         55                         A. 3009--A
 
 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-
 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
 S. 3009--A                         56                         A. 3009--A
 
 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.
 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.
 S. 3009--A                         57                         A. 3009--A

 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
 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-
 S. 3009--A                         58                         A. 3009--A

 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-
 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
 S. 3009--A                         59                         A. 3009--A
 
 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,
 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
 S. 3009--A                         60                         A. 3009--A
 
 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-
 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
 S. 3009--A                         61                         A. 3009--A
 
 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
 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
 S. 3009--A                         62                         A. 3009--A
 
 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
 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
 S. 3009--A                         63                         A. 3009--A
 
 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.
   § 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
 S. 3009--A                         64                         A. 3009--A
 
 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
 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
 S. 3009--A                         65                         A. 3009--A
 
 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
 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
 S. 3009--A                         66                         A. 3009--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;
 (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.
 S. 3009--A                         67                         A. 3009--A
 
   (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
 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
 S. 3009--A                         68                         A. 3009--A
 
 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
 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
 S. 3009--A                         69                         A. 3009--A
 
 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-
 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,
 S. 3009--A                         70                         A. 3009--A
 
 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
 
   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
 S. 3009--A                         71                         A. 3009--A
 
 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.
   § 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.
 S. 3009--A                         72                         A. 3009--A
 
                                  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
 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
 S. 3009--A                         73                         A. 3009--A
 
 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.
   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:
 S. 3009--A                         74                         A. 3009--A
 
   (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
 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:
 S. 3009--A                         75                         A. 3009--A
 
   (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
 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
 S. 3009--A                         76                         A. 3009--A
 
 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.
   (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
 S. 3009--A                         77                         A. 3009--A
 
 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
 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.
 S. 3009--A                         78                         A. 3009--A
 
   (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
 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.
 S. 3009--A                         79                         A. 3009--A
 
   § 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:
   (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.
 S. 3009--A                         80                         A. 3009--A
 
   (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.
   § 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.
 S. 3009--A                         81                         A. 3009--A
 
   (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
 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,
 S. 3009--A                         82                         A. 3009--A
 
 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
 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.
 S. 3009--A                         83                         A. 3009--A
 
 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
 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
 S. 3009--A                         84                         A. 3009--A
 
   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
 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
 S. 3009--A                         85                         A. 3009--A
 
 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
 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.
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   (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
 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
 S. 3009--A                         87                         A. 3009--A
 
 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
 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.
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   (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-
 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
 S. 3009--A                         89                         A. 3009--A
 
 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
 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.
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   § 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
 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,
 S. 3009--A                         91                         A. 3009--A
 
 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
   (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
 S. 3009--A                         92                         A. 3009--A
 
 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-
 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
 S. 3009--A                         93                         A. 3009--A
 
 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
 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
 S. 3009--A                         94                         A. 3009--A
 
 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
 
   (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.
 S. 3009--A                         95                         A. 3009--A
 
   (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
 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
 S. 3009--A                         96                         A. 3009--A
 
           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
 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-
 S. 3009--A                         97                         A. 3009--A
 
 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;
   (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
 S. 3009--A                         98                         A. 3009--A

 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
 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
 S. 3009--A                         99                         A. 3009--A
 
 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
 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
 S. 3009--A                         100                        A. 3009--A
 
   (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
 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
 S. 3009--A                         101                        A. 3009--A
 
 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.
   (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-
 S. 3009--A                         102                        A. 3009--A
 
 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:
   (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
 S. 3009--A                         103                        A. 3009--A
 
 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
 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,
 S. 3009--A                         104                        A. 3009--A
 
 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
 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
 S. 3009--A                         105                        A. 3009--A
 
 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
 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
 S. 3009--A                         106                        A. 3009--A

 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.
   (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
 S. 3009--A                         107                        A. 3009--A
 
   (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-
 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
 S. 3009--A                         108                        A. 3009--A
 
 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.
   (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
 S. 3009--A                         109                        A. 3009--A
 
 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-
 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.
 S. 3009--A                         110                        A. 3009--A
 
                                  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.
   § 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
 S. 3009--A                         111                        A. 3009--A
 
 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
 [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:
 S. 3009--A                         112                        A. 3009--A
 
   (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.
 
                                  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;
 S. 3009--A                         113                        A. 3009--A
 
   (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.
   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.
 S. 3009--A                         114                        A. 3009--A

   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:
   (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
 S. 3009--A                         115                        A. 3009--A
 
 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
 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:
 S. 3009--A                         116                        A. 3009--A
 
   § 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-
 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
 S. 3009--A                         117                        A. 3009--A
 
 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.
   § 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
 S. 3009--A                         118                        A. 3009--A
 
 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
 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.
 S. 3009--A                         119                        A. 3009--A
 
   (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:
   §  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.
 S. 3009--A                         120                        A. 3009--A
 
   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
 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.
 S. 3009--A                         121                        A. 3009--A
 
 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.
 
                                  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.
 S. 3009--A                         122                        A. 3009--A
 
   § 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;
   (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.
 S. 3009--A                         123                        A. 3009--A

   § 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.

2025-S3009B (ACTIVE) - Details

See Assembly Version of this Bill:: A3009
Current Committee:: Senate Finance
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2025-S3009B (ACTIVE) - Summary

2025-S3009B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3009--B
 
                             I N  S E N A T E
 
                             January 22, 2025
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
   the Constitution -- read twice and ordered printed, and  when  printed
   to  be  committed to the Committee on Finance -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT to amend the tax law, in relation to the senior 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 a
   New  York  state  working  families  tax credit (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  and  the parks, recreation and historic preservation law, in
   relation to authorizing the pass-through or transfer  of  the  credits
   for  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 prop-
   erties owned by  institutional  investors  in  residential  properties
   (Subpart  B)(Part  F);  intentionally  omitted  (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);
   intentionally  omitted  (Part J); to amend the tax law, in relation to
   the eligibility criteria for the empire  state  digital  gaming  media
   production  tax  credit,  and  allowing unused allowable credits to be
   rolled over to the following tax year (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 establishing 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 the tax law, in  relation  to  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD12574-04-5
 S. 3009--B                          2
 
   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); intentionally omitted (Part P); inten-
   tionally omitted (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); intentionally omit-
   ted (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);  intentionally  omitted
   (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  property 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, amend-
   ing the tax law relating to a musical and theatrical production  cred-
   it,  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); intentionally omitted (Subpart A); and to amend the racing, pari-
   mutuel wagering and breeding law, in relation to licenses  for  simul-
   cast  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
   extending  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 extending the effectiveness  thereof
   (Subpart  B)(Part  FF);  to amend the racing, pari-mutuel wagering and
   breeding law, in relation to the tax on  gaming  revenues  in  certain
   regions;  to amend 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, in relation to the effectiveness thereof; and
   providing for the repeal of certain provisions upon expiration thereof
   (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 provid-
   ing  for  the  repeal of such provisions upon expiration thereof (Part
   II); to extend the duration of certain  brownfield  redevelopment  and
 S. 3009--B                          3
 
   remediation  tax credits for certain sites (Part JJ); to amend the tax
   law, in relation to geothermal energy systems tax credits  (Part  KK);
   to  repeal subdivision (jj) of section 1115 of the tax law relating to
   sales  and compensating use taxes imposed with respect to vessels; and
   to repeal subdivision 13 of section 1118 of the tax  law  relating  to
   sales and compensating use taxes imposed with respect to vessels (Part
   LL);  to amend the tax law, in relation to residential solar tax cred-
   its (Part MM); to amend the tax law and the administrative code of the
   city of New York, in relation to treatment  of  gains  from  qualified
   opportunity  zones  in calculating taxable income  (Part NN); to amend
   the tax law, in relation to the taxation of vapor products (Part  OO);
   to amend the tax law, in relation to establishing a tax on noise emis-
   sions  from  non-essential  helicopter  and seaplane flights in cities
   with a population of one million or more (Part PP); to amend  the  tax
   law,  in  relation  to  creating  a  work  opportunity tax credit; and
   providing for the repeal of such provisions  upon  expiration  thereof
   (Part QQ); to amend the tax law, in relation to adding certain proper-
   ties  to  the definition of a qualified historic home for the historic
   homeownership rehabilitation credit (Part RR); to amend the  tax  law,
   in  relation to computation of franchise tax on taxpayers with a busi-
   ness income base exceeding five million dollars (Part  SS);  to  amend
   the  tax  law,  in  relation to impose an excise tax on the failure of
   certain hedge funds owning excess single-family residences to  dispose
   of such residences; and to amend the state finance law, in relation to
   establishing  the  housing  down  payment trust fund and directing the
   commissioner of the state division of housing and community renewal to
   establish a grant program (Part TT); to amend the tax law, in relation
   to eligibility for the farm employer overtime tax credit (Part UU); to
   amend part RR of chapter 60 of the laws of 2016 amending the  tax  law
   relating to creating a farm workforce retention credit, in relation to
   the  effectiveness  of such credit (Part VV); to amend the tax law, in
   relation to establishing the  small  business  unemployment  insurance
   credit (Part WW); to amend the tax law, in relation to tax on sales of
   motor  fuel  and petroleum products and to make conforming changes; to
   amend the tax law, in relation to taxes not authorized and the  dispo-
   sition  of revenue; to repeal paragraph 3 of subdivision (f) and para-
   graph 4 of subdivision (g) of section 301-a of the tax law relating to
   manufacturing gallonage for purposes  of  the  imposition  of  certain
   taxes;  to  repeal  subdivisions (i), (j), and (l) of section 301-c of
   the tax law relating to reimbursement; to repeal section 301-d of  the
   tax  law  relating  to  a  utility  credit or reimbursement; to repeal
   subdivision (f) of section  301-e  of  the  tax  law  relating  to  an
   aviation  fuel  business which services four or more cities; to repeal
   subparagraph (xi) of paragraph 3 of subdivision (c) of section 1105 of
   the tax law relating to services  rendered  with  respect  to  certain
   property; and to repeal paragraph 9 of subdivision (a) of section 1115
   of  the  tax  law  relating  to fuel sold to an airline for use in its
   airplanes (Part XX); to amend the  racing,  pari-mutuel  wagering  and
   breeding  law, in relation to authorizing two percent of mobile sports
   tax revenue be used for problem gambling (Part YY); to amend  the  tax
   law,  in  relation  to  expanding  a certain tax credit for farmers to
   include the cost of construction housing for farm workers  (Part  ZZ);
   to amend the tax law, in relation to requiring the state to keep state
   lottery  winners identities anonymous to the general public unless the
   lottery winner gives their consent (Part AAA); to  amend  the  racing,
   pari-mutuel  wagering  and  breeding  law,  in  relation  to  allowing
 S. 3009--B                          4
 
   season-long proposition bets and future award  winners  as  authorized
   bets  (Part BBB); and to amend the tax law, in relation to providing a
   tax deduction for the purchase of school supplies by  educators  (Part
   CCC)
 
   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 CCC. The effective date for  each  partic-
 ular  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) SENIOR INFLATION REFUND CREDIT. (1) A  TAXPAYER  WHO  MEETS  THE
 ELIGIBILITY  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 YEARS TWO  THOU-
 SAND TWENTY-FIVE, TWENTY-SIX, AND TWENTY-SEVEN.
   (2)  (A) TO BE ELIGIBLE FOR THE CREDIT FOR TAX YEAR TWO THOUSAND TWEN-
 TY-FIVE, 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 THOU-
 SAND  TWENTY-THREE, (B) MUST HAVE BEEN SIXTY-THREE YEARS OLD OR OLDER AT
 THE TIME OF FILING IN TWO THOUSAND TWENTY-THREE, OR  IF  MARRIED  FILING
 JOINTLY,  ONE  OF  THE  SPOUSES  MUST HAVE BEEN SIXTY-THREE YEARS OLD OR
 OLDER AT THE TIME OF FILING, AND (C) (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.
   (B) TO BE ELIGIBLE FOR THE CREDIT FOR TAX YEAR  TWO  THOUSAND  TWENTY-
 SIX, 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-FOUR, (B) MUST HAVE BEEN SIXTY-THREE YEARS OLD OR  OLDER  AT  THE
 TIME  OF FILING IN TWO THOUSAND TWENTY-FOUR, OR IF MARRIED FILING JOINT-
 LY, ONE OF THE SPOUSES MUST HAVE BEEN SIXTY-THREE YEARS OLD OR OLDER  AT
 THE  TIME  OF  FILING, AND (C) (I) MUST HAVE HAD NEW YORK ADJUSTED GROSS
 INCOME OF THREE HUNDRED THOUSAND DOLLARS OR LESS IN TAX YEAR  TWO  THOU-
 SAND  TWENTY-FOUR  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
 S. 3009--B                          5

 HUNDRED FIFTY THOUSAND DOLLARS OR LESS IN TAX YEAR TWO THOUSAND  TWENTY-
 FOUR  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.
   (C) TO BE ELIGIBLE FOR THE CREDIT IN TAX YEAR TWO THOUSAND TWENTY-SEV-
 EN,  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-FIVE,  (B)  MUST  HAVE BEEN SIXTY-THREE YEARS OLD OR OLDER AT THE
 TIME OF FILING IN TWO THOUSAND TWENTY-FIVE, OR IF MARRIED FILING  JOINT-
 LY,  ONE OF THE SPOUSES MUST HAVE BEEN SIXTY-THREE YEARS OLD OR OLDER AT
 THE TIME OF FILING, AND (C) (I) MUST HAVE HAD NEW  YORK  ADJUSTED  GROSS
 INCOME  OF  THREE HUNDRED THOUSAND DOLLARS OR LESS IN TAX YEAR TWO THOU-
 SAND TWENTY-FIVE 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-
 FIVE 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,
 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, TWO THOUSAND TWENTY-FOUR,
 OR TWO THOUSAND TWENTY-FIVE.  FOR THOSE TAXPAYERS WHOM THE  COMMISSIONER
 HAS  DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMISSIONER 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  DEFI-
 CIENCY IN A MANNER PRESCRIBED BY THE COMMISSIONER.
   §  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:
 S. 3009--B                          6
 
 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
                                       $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 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,577,939 PLUS 11.40% OF EXCESS
                                       OVER $25,000,000
 S. 3009--B                          7
 
   § 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 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,577,616 PLUS 11.40% 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 $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
 S. 3009--B                          8
 
                                       $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
 $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 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,593,894 PLUS 11.40% 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:
 S. 3009--B                          9
 
   (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 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,593,626 PLUS 11.40% 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
                                       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
 S. 3009--B                         10
 
                                       $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]
 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 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,609,714 PLUS 11.40% 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
 S. 3009--B                         11
 
                                       $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 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,609,499 PLUS 11.40% 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
 $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:
 S. 3009--B                         12
 
   (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           $57,500
   (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
 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 11.40 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           $57,500
   (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
 S. 3009--B                         13
 
   (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 11.40 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
 $1,077,550     $5,000,000    $2,614            $30,172
 $5,000,000     $25,000,000   $32,786           $57,500
   (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 11.40 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.
 S. 3009--B                         14
 
   (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         $57,500
   (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
 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 11.40 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:
 S. 3009--B                         15
 
   (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               $57,500
   (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
 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 11.40 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               $57,500
   (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
 S. 3009--B                         16

                             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 11.40 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
 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
 S. 3009--B                         17
 
 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
 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-
 S. 3009--B                         18
 
 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 (d) of section  606  of  the  tax
 law,  as  amended  by  section  1 of part Q of chapter 63 of the laws of
 2000, is amended and a new paragraph 9 is added to read as follows:
   (1) General. A taxpayer shall be allowed a credit as  provided  herein
 equal  to  (i)  the  applicable  percentage  of the earned income credit
 allowed under section thirty-two of the internal revenue  code  for  the
 same taxable year, (ii) reduced by the credit permitted under subsection
 (b) of this section.
   The  applicable percentage shall be (i) seven and one-half percent for
 taxable years  beginning  in  nineteen  hundred  ninety-four,  (ii)  ten
 percent  for  taxable  years  beginning in nineteen hundred ninety-five,
 (iii) twenty percent for taxable years beginning after nineteen  hundred
 ninety-five  and  before  two  thousand,  (iv)  twenty-two  and one-half
 percent for taxable years beginning in  two  thousand,  (v)  twenty-five
 percent  for  taxable  years beginning in two thousand one, (vi) twenty-
 seven and one-half percent for taxable years beginning in  two  thousand
 two,  and  (vii) thirty percent for taxable years beginning in two thou-
 sand three and thereafter. FOR TAXABLE YEARS BEGINNING IN  TWO  THOUSAND
 TWENTY-FIVE  AND  THEREAFTER, IN THE CASE OF AN ELIGIBLE INDIVIDUAL WITH
 NO QUALIFYING CHILDREN, THE  CREDIT  PERCENTAGE  SHALL  BE  FIFTEEN  AND
 THREE-TENTHS  TO  DETERMINE  THE  AMOUNT OF THE EARNED INCOME TAX CREDIT
 REFERENCED IN SECTION 32(B)(1) OF THE  INTERNAL  REVENUE  CODE  AND  THE
 EARNED INCOME AMOUNT AND THE PHASEOUT AMOUNT OF SUCH INDIVIDUAL SHALL BE
 DETERMINED AS IF SUCH EARNED INCOME AMOUNT AND PHASEOUT AMOUNT AS REFER-
 ENCED  IN  SECTION 32(B)(2)(A) OF THE INTERNAL REVENUE CODE ARE EQUAL TO
 THE AMOUNT ALLOWED FOR AN ELIGIBLE INDIVIDUAL WITH ONE QUALIFYING  CHILD
 AS  SUCH AMOUNTS ARE REFERENCED IN SUCH PARAGRAPH. PROVIDED FURTHER, FOR
 THE PURPOSE OF THIS SUBSECTION, AN ELIGIBLE INDIVIDUAL SHALL BE AN INDI-
 VIDUAL WHO HAS ATTAINED NINETEEN YEARS OF AGE AS OPPOSED TO  TWENTY-FIVE
 YEARS  OF  AGE,  IRRESPECTIVE  OF  THE ELIGIBILITY REFERENCED IN SECTION
 32(C)(1)(A)(II)(II) OF THE INTERNAL  REVENUE  CODE.  Provided,  however,
 that  if  the reversion event, as defined in this paragraph, occurs, the
 applicable percentage shall be twenty percent for taxable  years  ending
 on  or  after the date on which the reversion event occurred. The rever-
 sion event shall be deemed to have occurred on the date on which federal
 action, including but not limited to, administrative, statutory or regu-
 latory changes, materially reduces or eliminates New York state's  allo-
 cation  of  the  federal  temporary  assistance for needy families block
 grant, or materially reduces the ability of the state to  spend  federal
 temporary assistance for needy families block grant funds for the earned
 income  credit  or  to  apply  state general fund spending on the earned
 income credit toward the temporary assistance for needy  families  block
 grant  maintenance  of  effort  requirement, and the commissioner of the
 S. 3009--B                         19
 
 office of temporary and disability assistance shall certify the date  of
 such  event to the commissioner of taxation and finance, the director of
 the division of the budget, the speaker of the assembly and  the  tempo-
 rary president of the senate.
   (9)  COMMENCING  IN  THE  TAXABLE  YEAR  TWO THOUSAND TWENTY-FIVE, THE
 EARNED INCOME CREDIT FOR TAXPAYERS WITH QUALIFYING CHILDREN THROUGH  AGE
 SEVENTEEN,  AS  DEFINED  IN  PARAGRAPH  ONE  OF SUBSECTION (C-2) OF THIS
 SECTION, SHALL BE REDUCED OVER THE COURSE OF FOUR YEARS AS FOLLOWS:
   (A) IN TAXABLE YEAR TWO THOUSAND TWENTY-FIVE, THE APPLICABLE  PERCENT-
 AGE  OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE
 INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED  IN  PARA-
 GRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO TWENTY-FIVE;
   (B) IN TAXABLE YEAR TWO THOUSAND TWENTY-SIX, THE APPLICABLE PERCENTAGE
 OF  THE  EARNED  INCOME  CREDIT  ALLOWED UNDER SECTION THIRTY-TWO OF THE
 INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED  IN  PARA-
 GRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO TWENTY;
   (C) IN TAXABLE YEAR TWO THOUSAND TWENTY-SEVEN, THE APPLICABLE PERCENT-
 AGE  OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE
 INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED  IN  PARA-
 GRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO FIFTEEN;
   (D) IN TAXABLE YEAR TWO THOUSAND TWENTY-EIGHT, THE APPLICABLE PERCENT-
 AGE  OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE
 INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED  IN  PARA-
 GRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO TEN.
   (E)  IN TAXABLE YEAR TWO THOUSAND TWENTY-NINE, THE APPLICABLE PERCENT-
 AGE OF THE EARNED INCOME TAX CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF
 THE  INTERNAL  REVENUE  CODE  FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN
 PARAGRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO ZERO.
   TAXPAYERS WITH BOTH  QUALIFYING  CHILDREN  THROUGH  AGE  SEVENTEEN  AS
 DEFINED IN PARAGRAPH ONE OF SUBSECTION (C-2) OF THIS SECTION AND ANOTHER
 QUALIFYING  CHILD,  AS  DEFINED  IN  26 USC §152(C), AND/OR A QUALIFYING
 RELATIVE, AS DEFINED IN 26 USC §152(D), SHALL  NOT  BE  SUBJECT  TO  THE
 REDUCTION  OF THE EARNED INCOME TAX CREDIT PROVIDED IN SUBPARAGRAPHS (A)
 THROUGH (D) OF THIS PARAGRAPH AND SHALL CONTINUE  TO  RECEIVE  THE  FULL
 APPLICABLE  PERCENTAGE OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION
 THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME  TAXABLE  YEAR,  AS
 DESCRIBED  IN  PARAGRAPH ONE OF THIS SUBSECTION, UNTIL THE FIFTH TAXABLE
 YEAR SUCCEEDING THE EFFECTIVE DATE OF SUBSECTION (C-2) OF  THIS  SECTION
 AND  EACH  TAXABLE  YEAR  THEREAFTER, AT WHICH POINT SUCH TAXPAYER SHALL
 RECEIVE SUCH FULL APPLICABLE PERCENTAGE ONLY FOR A QUALIFYING CHILD,  AS
 DEFINED  IN 26 USC §152(C), AND/OR QUALIFYING RELATIVE, AS DEFINED IN 26
 USC §152(D), WHO DOES  NOT  MEET  THE  DEFINITION  OF  QUALIFYING  CHILD
 THROUGH  AGE  SEVENTEEN  IN  PARAGRAPH  ONE  OF SUBSECTION (C-2) OF THIS
 SECTION.
   § 2. 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 PRIOR TO THE FIRST OF JANUARY, TWO THOUSAND
 TWENTY-FIVE, 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 percentage 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
 S. 3009--B                         20
 
 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
 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.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (c-2) to read as follows:
   (C-2)  NEW  YORK  STATE  WORKING FAMILIES TAX CREDIT. (1) DEFINITIONS.
 (A) "ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND  TWENTY-THREE"  SHALL
 MEAN  THE  COMMISSIONER  INCREASES  THE  DOLLAR  AMOUNT  OF  A CREDIT OR
 ADJUSTED GROSS INCOME, AS APPLICABLE, BY AN AMOUNT EQUAL TO THE  SUM  OF
 ALL  COST-OF-LIVING ADJUSTMENTS CALCULATED AND PUBLISHED BY THE INTERNAL
 REVENUE SERVICE PURSUANT TO 26 USC  §1(F)(3)  SINCE  CALENDAR  YEAR  TWO
 THOUSAND TWENTY-THREE.
   (B)  "QUALIFYING CHILD" OR "QUALIFYING CHILDREN" SHALL MEAN AS DEFINED
 IN 26 USC §24(C)(1).
   (C) "QUALIFYING CHILD THROUGH AGE SEVENTEEN" OR  "QUALIFYING  CHILDREN
 THROUGH  AGE  17"  SHALL MEAN AS DEFINED IN 26 USC §24(C)(1) EXCEPT THAT
 SUCH TERM SHALL ALSO INCLUDE QUALIFYING CHILDREN WHO HAVE  NOT  ATTAINED
 THE AGE OF EIGHTEEN.
   (2) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER THE FIRST OF JANUARY,
 TWO  THOUSAND TWENTY-FIVE, A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT
 EQUAL TO:
   (I) IN TAXABLE YEAR TWO THOUSAND TWENTY-FIVE, FIVE HUNDRED  AND  FIFTY
 DOLLARS PER QUALIFYING CHILD;
   (II)  IN  TAXABLE  YEAR TWO THOUSAND TWENTY-SIX, EIGHT HUNDRED DOLLARS
 PER QUALIFYING CHILD, PROVIDED, HOWEVER, THAT THE DOLLAR  AMOUNT  HEREIN
 PRESCRIBED  SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND TWEN-
 TY-THREE;
   (III) IN TAXABLE YEAR TWO THOUSAND TWENTY-SEVEN, ONE THOUSAND  DOLLARS
 PER  QUALIFYING  CHILD, PROVIDED, HOWEVER, THAT THE DOLLAR AMOUNT HEREIN
 PRESCRIBED SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND  TWEN-
 TY-THREE;
   (IV)  IN  TAXABLE  YEAR  TWO  THOUSAND  TWENTY-EIGHT, ONE THOUSAND TWO
 HUNDRED DOLLARS PER QUALIFYING CHILD THROUGH  AGE  SEVENTEEN,  PROVIDED,
 HOWEVER,  THAT THE DOLLAR AMOUNT HEREIN PRESCRIBED SHALL BE ADJUSTED FOR
 ALL INFLATION SINCE TWO THOUSAND TWENTY-THREE;
   (V) IN TAXABLE YEAR TWO THOUSAND TWENTY-NINE  AND  EACH  TAXABLE  YEAR
 THEREAFTER,  ONE  THOUSAND  SIX  HUNDRED  DOLLARS  PER  QUALIFYING CHILD
 THROUGH AGE SEVENTEEN, PROVIDED, HOWEVER, THAT THE DOLLAR AMOUNT  HEREIN
 PRESCRIBED  SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND TWEN-
 TY-THREE IN THE FIFTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION AND EACH TAXABLE YEAR THEREAFTER.
   (B) THE AMOUNT OF THE CREDIT SHALL  BE  REDUCED,  HOWEVER,  BY  TWENTY
 DOLLARS  FOR  EACH ONE THOUSAND DOLLARS BY WHICH THE TAXPAYER'S NEW YORK
 STATE ADJUSTED GROSS INCOME EXCEEDS:
   (I) IN TAXABLE YEAR TWO THOUSAND  TWENTY-FIVE,  SEVENTY-FIVE  THOUSAND
 DOLLARS IN THE CASE OF AN INDIVIDUAL WHO IS NOT MARRIED, ONE HUNDRED TEN
 THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN, OR SEVENTY-FIVE THOUSAND
 DOLLARS IN THE CASE OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN;
   (II)  IN  TAXABLE  YEAR  TWO  THOUSAND TWENTY-SIX, SIXTY-FIVE THOUSAND
 DOLLARS IN THE CASE OF AN INDIVIDUAL WHO IS NOT MARRIED, ONE HUNDRED TEN
 S. 3009--B                         21
 
 THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN, OR  SIXTY-FIVE  THOUSAND
 DOLLARS IN THE CASE OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN;
   (III)  IN  TAXABLE YEAR TWO THOUSAND TWENTY-SEVEN, FIFTY-FIVE THOUSAND
 DOLLARS IN THE CASE OF AN INDIVIDUAL WHO IS NOT MARRIED, ONE HUNDRED TEN
 THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN, OR  FIFTY-FIVE  THOUSAND
 DOLLARS IN THE CASE OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN;
   (IV)  IN  TAXABLE  YEAR TWO THOUSAND TWENTY-EIGHT, FORTY-FIVE THOUSAND
 DOLLARS IN THE CASE OF AN INDIVIDUAL WHO IS NOT MARRIED, NINETY THOUSAND
 DOLLARS IN THE CASE OF A JOINT RETURN, OR FORTY-FIVE THOUSAND DOLLARS IN
 THE CASE OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN; AND
   (V) IN TAXABLE YEAR TWO THOUSAND TWENTY-NINE  AND  EACH  TAXABLE  YEAR
 THEREAFTER,  TWENTY-FIVE  THOUSAND  DOLLARS IN THE CASE OF AN INDIVIDUAL
 WHO IS NOT MARRIED, FIFTY THOUSAND  DOLLARS  IN  THE  CASE  OF  A  JOINT
 RETURN,  OR  TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDI-
 VIDUAL FILING A SEPARATE RETURN,  PROVIDED,  HOWEVER,  THAT  THE  DOLLAR
 AMOUNT  HEREIN  PRESCRIBED SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO
 THOUSAND TWENTY-THREE IN TAXABLE YEAR TWO THOUSAND TWENTY-NINE AND  EACH
 TAXABLE YEAR THEREAFTER.
   (C)  PROVIDED  FURTHER,  THAT  THE AMOUNT OF THE CREDIT SHALL NEVER BE
 REDUCED BELOW ONE HUNDRED DOLLARS PER QUALIFYING CHILD IN TAXABLE  YEARS
 TWO  THOUSAND  TWENTY-SIX AND TWO THOUSAND TWENTY-SEVEN. IN TAXABLE YEAR
 TWO THOUSAND TWENTY-EIGHT AND EACH TAXABLE YEAR THEREAFTER,  THE  CREDIT
 SHALL  NEVER  BE  REDUCED BELOW ONE HUNDRED DOLLARS PER QUALIFYING CHILD
 THROUGH AGE SEVENTEEN.
   (D) SUCH RESIDENT TAXPAYER MUST PROVIDE THE SOCIAL SECURITY NUMBER  OR
 INDIVIDUAL  TAXPAYER  IDENTIFICATION NUMBER FOR EACH QUALIFYING CHILD IN
 ORDER TO RECEIVE THE CREDIT DESCRIBED IN THIS SUBSECTION.
   (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.
   (4)  IN  THE  CASE OF SPOUSES WHO FILE A JOINT FEDERAL RETURN, BUT WHO
 ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES  SEPARATELY,  THE  CREDIT
 ALLOWED  PURSUANT  TO  THIS  SUBSECTION  MAY  BE APPLIED AGAINST THE TAX
 IMPOSED ON EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   (5) COMMENCING IN TAXABLE YEAR TWO THOUSAND TWENTY-EIGHT, THE  COMMIS-
 SIONER  SHALL  PROVIDE FOR THE PREPAYMENT OF THE WORKING FAMILIES CREDIT
 UNDER THIS SUBSECTION TO QUALIFYING TAXPAYERS.   FOUR ADVANCED  PAYMENTS
 SHALL  BE  MADE  TO SUCH QUALIFYING TAXPAYERS.   AN ESTIMATED ANNUAL TAX
 CREDIT SHALL BE DETERMINED BY THE COMMISSIONER IN ADVANCE OF  THE  FIRST
 PAYMENT  AND SHALL BE SUBJECT TO ADJUSTMENT DUE TO CHANGES IN EMPLOYMENT
 OR FAMILY STATUS OVER THE COURSE OF THE YEAR. THE FIRST  THREE  ADVANCED
 PAYMENTS  SHALL  BE  MADE  DURING  THE  TAXABLE YEAR AND SHALL BE TWENTY
 PERCENT OF THE ANTICIPATED CREDIT. THE FOURTH ADVANCED PAYMENT SHALL  BE
 MADE  AFTER  THE  END OF THE TAX YEAR AND SHALL BE ADJUSTED TO MATCH THE
 ACTUAL CREDIT DUE. SUCH PAYMENTS SHALL, TO THE  EXTENT  PRACTICABLE,  BE
 MADE  AVAILABLE  VIA  DIRECT DEPOSIT AND VIA ELECTRONIC BENEFIT TRANSFER
 (EBT) CARD. THE COMMISSIONER SHALL PROVIDE INFORMATION ON THE AVAILABIL-
 ITY OF ADVANCED PAYMENTS OF THE WORKING FAMILIES CREDIT TO  TAX  PREPAR-
 ERS, ACCOUNTANTS, AND ORGANIZATIONS THAT ASSIST INDIVIDUALS IN TAX PREP-
 ARATION.  SUCH INFORMATION SHALL BE DISTRIBUTED TO QUALIFYING TAXPAYERS.
 IF A  TAXPAYER  ESTABLISHES  THAT  THEY  ARE  REQUESTING  AND  RECEIVING
 PAYMENTS  UNDER  THIS  PARAGRAPH IN GOOD FAITH BY ESTABLISHING THAT THEY
 PROPERLY CLAIMED PAYMENTS UNDER THIS SUBSECTION IN THE  PRIOR  YEAR  AND
 THAT  THEY  HAVE  NOT  EXPERIENCED A SUBSTANTIAL CHANGE IN CIRCUMSTANCES
 S. 3009--B                         22
 
 SUCH THAT THEY HAVE A  REASONABLE  EXPECTATION  OF  ELIGIBILITY  IN  THE
 CURRENT  YEAR,  THEN THEY SHALL NOT BE HELD RESPONSIBLE FOR AN INCORRECT
 PREPAYMENT/REFUND AMOUNT.
   (6) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE REFUNDA-
 BLE  CREDIT  AND  ITS  PAYMENT AUTHORIZED UNDER THIS SUBSECTION SHALL BE
 TREATED IN THE SAME MANNER AS THE FEDERAL EARNED INCOME TAX  CREDIT  AND
 SHALL  NOT  BE  CONSIDERED  AS  ASSETS, INCOME, OR RESOURCES TO THE SAME
 EXTENT THE CREDIT AND ITS PAYMENT WOULD BE DISREGARDED  PURSUANT  TO  26
 U.S.C. § 6409 AND THE GENERAL WELFARE DOCTRINE FOR PURPOSES OF DETERMIN-
 ING  ELIGIBILITY  FOR BENEFITS OR ASSISTANCE, OR THE AMOUNT OR EXTENT OF
 THOSE BENEFITS OR ASSISTANCE, UNDER ANY STATE OR LOCAL PROGRAM,  INCLUD-
 ING  BENEFITS  ESTABLISHED  UNDER  SECTION  NINETY-FIVE  OF  THE  SOCIAL
 SERVICES LAW.
   § 4. Section 616 of the tax law, as amended by chapter 28 of the  laws
 of  1987,  subsection (b) as amended by chapter 760 of the laws of 1992,
 is amended to read as follows:
   § 616. New York exemptions of a resident individual. (a) General.  For
 taxable  years beginning after nineteen hundred eighty-seven, a resident
 individual shall be allowed a New York exemption of one thousand dollars
 for each exemption for which [he is] THEY ARE entitled  to  a  deduction
 for  the  taxable  year  under  section  one hundred fifty-one(c) of the
 Internal Revenue Code; and  for  taxable  years  beginning  in  nineteen
 hundred  eighty-seven, a resident individual other than a taxpayer whose
 federal exemption amount is zero shall be allowed a New  York  exemption
 of  nine  hundred  dollars for each exemption for which [he is] THEY ARE
 entitled to a deduction for the taxable  year  for  federal  income  tax
 purposes.
   (b)  [Husband  and wife] SPOUSES.   If the New York income taxes of [a
 husband and wife] SPOUSES are required to be separately  determined  but
 their  federal  income tax is determined on a joint return, each of them
 shall be separately entitled to the New York exemptions under subsection
 (a) of this section to which each would be separately entitled  for  the
 taxable  year if their federal income taxes had been determined on sepa-
 rate returns.
   (C) COMMENCING IN TAXABLE YEAR TWO  THOUSAND  TWENTY-SIX,  A  RESIDENT
 INDIVIDUAL  SHALL NOT BE ALLOWED THE EXEMPTION DESCRIBED IN THIS SECTION
 FOR ANY QUALIFYING CHILD AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE
 OF SUBSECTION  (C-2)  OF  SECTION  SIX  HUNDRED  SIX  OF  THIS  ARTICLE.
 COMMENCING  IN  TAXABLE YEAR TWO THOUSAND TWENTY-EIGHT, A RESIDENT INDI-
 VIDUAL SHALL NOT BE ALLOWED THE EXEMPTION DESCRIBED IN THIS SECTION  FOR
 ANY  QUALIFYING  CHILD  THROUGH AGE SEVENTEEN AS DEFINED IN SUBPARAGRAPH
 (C) OF PARAGRAPH ONE OF SUBSECTION (C-2) OF SECTION SIX HUNDRED  SIX  OF
 THIS  ARTICLE. IN ALL YEARS ON OR AFTER THE EFFECTIVE DATE OF SUBSECTION
 (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE,  HOWEVER,  A  RESIDENT
 INDIVIDUAL  SHALL CONTINUE TO BE ALLOWED THE EXEMPTION DESCRIBED IN THIS
 SECTION FOR OTHER QUALIFYING DEPENDENTS, AS DEFINED IN 26 USC §  152(A),
 WHO  DO  NOT MEET THE DEFINITION OF QUALIFYING CHILD IN SUBPARAGRAPH (B)
 OF PARAGRAPH ONE OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF  THIS
 ARTICLE AND QUALIFYING CHILD THROUGH AGE SEVENTEEN AS DEFINED IN SUBPAR-
 AGRAPH  (C)  OF PARAGRAPH ONE OF SUBSECTION (C-2) OF SECTION SIX HUNDRED
 SIX OF THIS ARTICLE.
   § 5. This act shall take effect immediately.
 
                                  PART D
 S. 3009--B                         23
 
   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
 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
 S. 3009--B                         24
 
 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. Paragraph (e) of subdivision 26 of section 210-B of the tax
 law, as amended by section 1 of part U of chapter 59 of the laws of 2019
 is amended and two new paragraphs (g) and  (h)  are  added  to  read  as
 follows:
   (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:
   (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.
   (G)  (I)  THE ALLOCATION OF THE CREDIT ESTABLISHED BY THIS SUBDIVISION
 MAY BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY  FEDERAL
 REHABILITATION  CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO A CERTIFIED
 HISTORIC STRUCTURE UNDER SECTION FORTY-SEVEN  OF  THE  INTERNAL  REVENUE
 CODE  BY  WRITTEN  AGREEMENT OF THE TAXPAYER OTHERWISE ENTITLED TO CLAIM
 SUCH CREDIT OR BY WRITTEN AGREEMENT OF A PASS-THROUGH  ENTITY  THAT  MAY
 REPORT SUCH CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILITATION
 TAX  CREDIT  THROUGH  TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE
 FEDERAL LAW.
   (II) WITH RESPECT TO CERTIFIED HISTORIC STRUCTURES THAT ARE SUBJECT TO
 A LEASE ARRANGEMENT WHEREBY THE LANDLORD  ELECTS  TO  PASS  THE  FEDERAL
 REHABILITATION  CREDIT  THROUGH TO THE TENANT TAXPAYER, NOT ONLY MAY THE
 NEW YORK STATE REHABILITATION  CREDIT  BE  PASSED  DOWN  TO  THE  TENANT
 TAXPAYER  AND  THEN ALLOCATED WITHOUT REGARD TO AND IN A SEPARATE MANNER
 S. 3009--B                         25
 
 FROM ANY FEDERAL REHABILITATION CREDIT THAT MAY BE  ALLOCATED,  BUT  THE
 LANDLORD  MAY ALSO OPT TO RETAIN THE NEW YORK STATE REHABILITATION CRED-
 IT. FOR PURPOSES OF THIS SECTION, A "LANDLORD" MEANS THE  OWNER  OF  THE
 CERTIFIED HISTORIC STRUCTURE FOR FEDERAL TAX PURPOSES.
   (III)  THE  NEW YORK STATE REHABILITATION CREDIT MAY BE TRANSFERRED AS
 PROVIDED FOR IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (H) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY
 OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED PURSUANT TO THIS
 SUBDIVISION ON RETURNS FILED DURING THE PRECEDING  CALENDAR  YEAR.  SUCH
 REPORT  SHALL  BE  PROVIDED  TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE
 SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS  OF  THE  SENATE  COMMITTEES  ON
 FINANCE  AND  ON  HOUSING,  CONSTRUCTION  AND COMMUNITY DEVELOPMENT, AND
 CHAIRS OF THE ASSEMBLY COMMITTEES ON WAYS AND MEANS AND ON HOUSING   AND
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   §  2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as
 amended by section 2 of part U of chapter 59 of the  laws  of  2019,  is
 amended and two new paragraphs 7 and 8 are added to read as follows:
   (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.
   (7) (A) THE ALLOCATION OF THE CREDIT ESTABLISHED  BY  THIS  SUBSECTION
 MAY  BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY FEDERAL
 REHABILITATION CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO A  CERTIFIED
 HISTORIC  STRUCTURE  UNDER  SECTION  FORTY-SEVEN OF THE INTERNAL REVENUE
 CODE BY WRITTEN AGREEMENT OF THE TAXPAYER OTHERWISE  ENTITLED  TO  CLAIM
 SUCH  CREDIT  OR  BY WRITTEN AGREEMENT OF A PASS-THROUGH ENTITY THAT MAY
 REPORT SUCH CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILITATION
 TAX CREDIT THROUGH TO A TENANT TAXPAYER IN  ACCORDANCE  WITH  APPLICABLE
 FEDERAL LAW.
   (B)  WITH RESPECT TO CERTIFIED HISTORIC STRUCTURES THAT ARE SUBJECT TO
 A LEASE ARRANGEMENT WHEREBY THE LANDLORD  ELECTS  TO  PASS  THE  FEDERAL
 S. 3009--B                         26
 
 REHABILITATION  CREDIT  THROUGH TO THE TENANT TAXPAYER, NOT ONLY MAY THE
 NEW YORK STATE REHABILITATION  CREDIT  BE  PASSED  DOWN  TO  THE  TENANT
 TAXPAYER  AND  THEN ALLOCATED WITHOUT REGARD TO AND IN A SEPARATE MANNER
 FROM  ANY  FEDERAL  REHABILITATION CREDIT THAT MAY BE ALLOCATED, BUT THE
 LANDLORD MAY ALSO OPT TO RETAIN THE NEW YORK STATE REHABILITATION  CRED-
 IT.  FOR  PURPOSES  OF THIS SECTION, A "LANDLORD" MEANS THE OWNER OF THE
 CERTIFIED HISTORIC STRUCTURE FOR FEDERAL TAX PURPOSES.
   (C) THE NEW YORK STATE REHABILITATION CREDIT  MAY  BE  TRANSFERRED  AS
 PROVIDED FOR IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (8) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY
 OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED PURSUANT TO THIS
 SUBSECTION  ON  RETURNS  FILED DURING THE PRECEDING CALENDAR YEAR.  SUCH
 REPORT SHALL BE PROVIDED TO THE GOVERNOR,  TEMPORARY  PRESIDENT  OF  THE
 SENATE,  SPEAKER  OF  THE  ASSEMBLY,  CHAIRS OF THE SENATE COMMITTEES ON
 FINANCE AND ON HOUSING,  CONSTRUCTION  AND  COMMUNITY  DEVELOPMENT,  AND
 CHAIRS  OF  THE ASSEMBLY COMMITTEES ON WAYS AND MEANS AND ON HOUSING AND
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as
 amended by section 3 of part U of chapter 59 of the  laws  of  2019,  is
 amended and two new paragraphs 7 and 8 are added to read as follows:
   (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
 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.
   (7)  (A)  THE ALLOCATION OF THE CREDIT ESTABLISHED BY THIS SUBDIVISION
 MAY BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY  FEDERAL
 REHABILITATION  CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO A CERTIFIED
 HISTORIC STRUCTURE UNDER SECTION FORTY-SEVEN  OF  THE  INTERNAL  REVENUE
 CODE  BY  WRITTEN  AGREEMENT OF THE TAXPAYER OTHERWISE ENTITLED TO CLAIM
 SUCH CREDIT OR BY WRITTEN AGREEMENT OF A PASS-THROUGH  ENTITY  THAT  MAY
 REPORT SUCH CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILITATION
 S. 3009--B                         27
 
 TAX  CREDIT  THROUGH  TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE
 FEDERAL LAW.
   (B)  WITH RESPECT TO CERTIFIED HISTORIC STRUCTURES THAT ARE SUBJECT TO
 A LEASE ARRANGEMENT WHEREBY THE LANDLORD  ELECTS  TO  PASS  THE  FEDERAL
 REHABILITATION  CREDIT  THROUGH TO THE TENANT TAXPAYER, NOT ONLY MAY THE
 NEW YORK STATE REHABILITATION  CREDIT  BE  PASSED  DOWN  TO  THE  TENANT
 TAXPAYER  AND  THEN ALLOCATED WITHOUT REGARD TO AND IN A SEPARATE MANNER
 FROM ANY FEDERAL REHABILITATION CREDIT THAT MAY BE  ALLOCATED,  BUT  THE
 LANDLORD  MAY ALSO OPT TO RETAIN THE NEW YORK STATE REHABILITATION CRED-
 IT. FOR PURPOSES OF THIS SECTION, A "LANDLORD" MEANS THE  OWNER  OF  THE
 CERTIFIED HISTORIC STRUCTURE FOR FEDERAL TAX PURPOSES.
   (C)  THE  NEW  YORK  STATE REHABILITATION CREDIT MAY BE TRANSFERRED AS
 PROVIDED FOR IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (8) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY
 OF  NOVEMBER, ON THE AGGREGATE AMOUNT OF  CREDITS  CLAIMED  PURSUANT  TO
 THIS  SUBDIVISION  ON  RETURNS FILED DURING THE PRECEDING CALENDAR YEAR.
 SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR,  TEMPORARY  PRESIDENT  OF
 THE  SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS OF THE SENATE COMMITTEES ON
 FINANCE AND ON HOUSING,  CONSTRUCTION  AND  COMMUNITY  DEVELOPMENT,  AND
 CHAIRS  OF  THE ASSEMBLY COMMITTEES ON WAYS AND MEANS AND ON HOUSING AND
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   § 4. The parks, recreation and historic preservation law is amended by
 adding a new article 14-A to read as follows:
                                ARTICLE 14-A
            HISTORIC REHABILITATION TAX CREDIT TRANSFER PROGRAM
 SECTION 14.15 DEFINITIONS.
         14.16 TRANSFER OF REHABILITATION CREDIT.
         14.17 REPORTING.
         14.18  REGULATIONS,  COORDINATION  WITH  FEDERAL  REHABILITATION
                 CREDIT PROVISIONS.
   §  14.15  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "FEDERAL REHABILITATION CREDIT" MEANS THE FEDERAL CREDIT  THAT  MAY
 BE  ALLOCATED  WITH  RESPECT  TO  A  CERTIFIED  HISTORIC STRUCTURE UNDER
 SECTION FORTY-SEVEN OF THE INTERNAL REVENUE  CODE.  REFERENCES  IN  THIS
 ARTICLE  TO  SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE SHALL MEAN
 SUCH SECTION AS AMENDED FROM TIME TO TIME.
   2. "PASS-THROUGH ENTITY" MEANS AN ENTITY THAT IS NOT A TAXPAYER  UNDER
 FEDERAL  OR  STATE TAX LAW, SUCH AS A LIMITED LIABILITY COMPANY, A PART-
 NERSHIP, AN S CORPORATION,  OR ANY OTHER ENTITY  AS  DETERMINED  BY  THE
 COMMISSIONER  OF  TAXATION AND FINANCE WHICH IS DEEMED TO BE A REPORTING
 ENTITY FOR INCOME TAX PURPOSES AND FILES  ANNUAL    INFORMATION  RETURNS
 PASSING  THROUGH  ITEMS  OF  INCOME, LOSS, CREDITS AND CERTAIN OTHER TAX
 ATTRIBUTES TO EACH PARTNER, MEMBER OR SHAREHOLDER AS APPLICABLE.
   3. "QUALIFIED REHABILITATION EXPENDITURES" SHALL HAVE THE SAME MEANING
 AS IN SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE.
   4. "REGULATIONS" MEANS REGULATIONS ADOPTED  BY  THE  COMMISSIONER,  IN
 CONSULTATION  WITH  THE  COMMISSIONER  OF THE DEPARTMENT OF TAXATION AND
 FINANCE, PURSUANT TO SECTION 14.18 OF THIS ARTICLE.
   5. "REHABILITATION CREDIT" MEANS THE CREDIT PROVIDED FOR UNDER  SUBDI-
 VISION  TWENTY-SIX  OF  SECTION  TWO  HUNDRED  TEN-B, SUBSECTION (OO) OF
 SECTION SIX HUNDRED SIX OR SUBDIVISION (Y) OF  SECTION  FIFTEEN  HUNDRED
 ELEVEN OF THE TAX LAW.
   6.  "TRANSFEREE"  MEANS  A  TAXPAYER  OR  A  PASS-THROUGH  ENTITY THAT
 RECEIVES A TRANSFER OF THE REHABILITATION CREDIT. A TRANSFEREE NEED  NOT
 S. 3009--B                         28
 
 OWN AN INTEREST IN THE CERTIFIED HISTORIC STRUCTURE OR IN AN ENTITY WITH
 AN  OWNERSHIP  INTEREST IN THE CERTIFIED HISTORIC STRUCTURE TO RECEIVE A
 TRANSFER OF A REHABILITATION CREDIT.
   7.  "NON-PROFIT  TRANSFEREE" MEANS A NON-PROFIT ENTITY THAT RECEIVES A
 TRANSFER OF THE REHABILITATION CREDIT.
   § 14.16 TRANSFER OF REHABILITATION CREDIT. EITHER  A  1.  TAXPAYER  OR
 PASS-THROUGH  ENTITY THAT MAY REPORT THE REHABILITATION CREDIT OR OTHER-
 WISE ELECT TO PASS THE FEDERAL REHABILITATION CREDIT THROUGH TO A TENANT
 TAXPAYER IN ACCORDANCE WITH APPLICABLE FEDERAL LAW  OR  2.    NON-PROFIT
 TRANSFEREE  MAY,  WITH  PRIOR NOTICE IN ACCORDANCE WITH THE REGULATIONS,
 TRANSFER THE REHABILITATION CREDIT, IN WHOLE OR IN PART, TO  ANY  TRANS-
 FEREE OR NON-PROFIT TRANSFEREE WITH THE SAME EFFECT AS IF THE TRANSFEREE
 OR  NON-PROFIT  TRANSFEREE  HAD  INCURRED  THE  QUALIFIED REHABILITATION
 EXPENDITURES ITSELF; PROVIDED THAT NO PARTIAL TRANSFER OF THE  REHABILI-
 TATION CREDIT MAY BE FOR LESS THAN TWENTY-FIVE PERCENT OF THE FULL REHA-
 BILITATION  CREDIT  CLAIMED  BY  THE TAXPAYER. A TRANSFEREE SHALL USE OR
 REPORT THE REHABILITATION CREDIT IN THE YEAR IT IS ALLOWED AND  MAY  NOT
 TRANSFER  THE  REHABILITATION  CREDIT  ON  TO  YET ANOTHER TRANSFEREE. A
 TRANSFER OF REHABILITATION CREDIT TO A NON-PROFIT TRANSFEREE, WHERE  THE
 NON-PROFIT TRANSFEREE IS SOLELY ACTING AS A GO-BETWEEN TO FURTHER TRANS-
 FER  THE  REHABILITATION  CREDIT TO A TRANSFEREE, SHALL NOT CONSTITUTE A
 TRANSFER FOR PURPOSES OF DETERMINING THE SINGLE TRANSFER  LIMITATION  OF
 THIS SECTION.
   §  14.17  REPORTING.  IF  A TAXPAYER OR A PASS-THROUGH ENTITY THAT MAY
 REPORT THE CREDIT OR OTHERWISE ELECT TO PASS THE FEDERAL  REHABILITATION
 CREDIT THROUGH TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE FEDER-
 AL LAW ELECTS TO TRANSFER THE CREDIT AS PROVIDED FOR IN SECTION 14.16 OF
 THIS  ARTICLE,  PRIOR  TO  FILING ANY TAX RETURNS CLAIMING THE REHABILI-
 TATION CREDIT, A TAXPAYER OR A PASS-THROUGH ENTITY THAT MAY  REPORT  THE
 REHABILITATION  CREDIT  OR OTHERWISE ELECT TO PASS THE FEDERAL REHABILI-
 TATION CREDIT THROUGH TO A TENANT TAXPAYER IN ACCORDANCE WITH APPLICABLE
 FEDERAL LAW SHALL PROVIDE AN INFORMATION STATEMENT TO  THE  COMMISSIONER
 IN ACCORDANCE WITH THE DEPARTMENT'S REGULATIONS. SUCH INFORMATION STATE-
 MENT  SHALL  INCLUDE,  BUT  MAY  NOT BE LIMITED TO, THE IDENTITY AND TAX
 IDENTIFICATION INFORMATION OF ANY NON-PROFIT TRANSFEREE AND THE IDENTITY
 AND TAX IDENTIFICATION INFORMATION OF ANY TRANSFEREE THAT WILL CLAIM THE
 CREDIT.
   § 14.18 REGULATIONS, COORDINATION WITH FEDERAL  REHABILITATION  CREDIT
 PROVISIONS.  THE  COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF
 THE DEPARTMENT OF TAXATION AND FINANCE, SHALL PROMULGATE RULES AND REGU-
 LATIONS NECESSARY TO ADMINISTER THE PROVISIONS OF THIS ARTICLE.
   § 5. 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
 S. 3009--B                         29
 
 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.
   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.   A LOAN PROVIDED IN EXCHANGE FOR A MORTGAGE OF THE RESIDENCE
 THAT IS BEING PURCHASED SHALL NOT BE CONSIDERED FUNDING FOR THE PURPOSES
 OF THIS SUBDIVISION, PROVIDED THAT SUCH MORTGAGE MUST BE OF A TYPE WHICH
 MEMBERS OF THE GENERAL PUBLIC CAN APPLY.
   (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;
   (III) A COMMUNITY LAND TRUST; OR
   (IV) A CREDITOR OR ITS LOAN SERVICER ACQUIRING OWNERSHIP OF REAL PROP-
 ERTY IN FULL OR PARTIAL SATISFACTION OF A SECURED DEBT.
   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:
 S. 3009--B                         30
 
   (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.
   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.
 S. 3009--B                         31
 
 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
 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.
 S. 3009--B                         32
 
   (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.
   § 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.
 S. 3009--B                         33
 
   § 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.
   § 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
 
                           Intentionally Omitted
 
                                  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
 S. 3009--B                         34
 
 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
   (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
 S. 3009--B                         35
 
 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
 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
 S. 3009--B                         36
 
 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
           $ 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
 
   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
 S. 3009--B                         37
 
 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
 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
 S. 3009--B                         38
 
 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. RECORDKEEPING AND REPORTING REQUIREMENTS.
         359-H. 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
 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.
 S. 3009--B                         39
 
   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.
   7.   "JOBS PLAN" MEANS A COMPONENT  OF  AN  APPLICATION  SUBMITTED  BY
 APPLICANTS  FOR  TAX  CREDITS UNDER THIS ARTICLE,   WHERE APPLICANTS ARE
 REQUIRED TO STATE, AT A MINIMUM, COMMITMENTS TO ALL OF THE FOLLOWING  IF
 AWARDED THE CREDIT:
   (A)  THE  MINIMUM  NUMBER  OF  FULL-TIME  EQUIVALENT JOBS THAT WILL BE
 RETAINED AND CREATED IF AWARDED THE CREDIT;
   (B) THE MINIMUM WAGE AND BENEFIT AMOUNTS  BY  JOB  CLASSIFICATION  FOR
 NONSUPERVISORY WORKERS;
   (C)  THE MINIMUM NUMBER OF JOBS THAT WILL BE SPECIFICALLY RETAINED AND
 CREATED FOR INDIVIDUALS FACING BARRIERS TO  EMPLOYMENT  IF  AWARDED  THE
 CREDIT;
   (D) THE PROPOSED AMOUNTS FOR WORKER TRAINING AND INFORMATION ABOUT ANY
 EXISTING  APPRENTICESHIP  PROGRAM  REGISTERED  WITH  THE DEPARTMENT OR A
 FEDERALLY RECOGNIZED STATE APPRENTICESHIP AGENCY THAT COMPLIES WITH  THE
 REQUIREMENTS  UNDER  PARTS  29 AND 30 OF TITLE 29, CODE OF FEDERAL REGU-
 LATIONS; AND
   (E) THE PROPOSED CHEMICAL SAFETY TRAINING PROGRAM AND NUMBER OF  WORK-
 ERS BY JOB CLASSIFICATION TO RECEIVE THE TRAINING.
   § 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.
   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.
 S. 3009--B                         40
 
   § 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)  INCLUDE  A  COMPLETED  JOBS PLAN IN SUCH FORM AS THE COMMISSIONER
 REQUIRES. THE JOBS PLAN APPLICATION SHALL BE SUBJECT TO DISCLOSURE UNDER
 SECTION EIGHTY-SEVEN OF THE PUBLIC  OFFICERS  LAW  AND  NOT  SUBJECT  TO
 EXEMPTION UNDER PARAGRAPH (D) OF SUBDIVISION TWO OF SUCH SECTION.
   (B) 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;
   (C)  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;
   (D) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY  AND  ALL  BOOKS
 AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE;
   (E)  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;
   (F) 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; AND
   (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  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,  INCLUDING  COMPLIANCE WITH THE JOBS PLAN COMMITMENTS SPECIFIED
 IN 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.  A PARTICIPANT MAY CLAIM SUCH BENEFITS FOR THE NEXT NINE CONSEC-
 S. 3009--B                         41

 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-H  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. RECORDKEEPING AND REPORTING REQUIREMENTS. EACH BUSINESS ENTI-
 TY PARTICIPATING IN THE PROGRAM SHALL MAINTAIN ALL RELEVANT RECORDS  AND
 MUST SUBMIT REGULAR PERFORMANCE REPORTS IN SUCH FORM AS THE COMMISSIONER
 MAY  REQUIRE,  FOR  THE DURATION OF ITS PROGRAM PARTICIPATION PLUS THREE
 YEARS.
   § 359-H. 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
 S. 3009--B                         42
 
 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 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
 (rrr) to read as follows:
   (RRR) 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.
 S. 3009--B                         43
 
   (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,
 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 AND REPORTING 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.
 LABOR ORGANIZATIONS SHALL AUTOMATICALLY BE CONSIDERED APPROVED PROVIDERS
 UNDER THIS ARTICLE.
   2. "ELIGIBLE TRAINING" MEANS TRAINING PROVIDED TO  AN  EMPLOYEE  HIRED
 WITHIN TWELVE MONTHS OF THE BUSINESS ENTITY APPLYING FOR THIS PROGRAM BY
 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;
   (C) NOT DESIGNED TO TRAIN OR UPGRADE SKILLS AS REQUIRED BY  A  FEDERAL
 OR STATE ENTITY; AND
   (D)  A  PROGRAM  WITH A STANDARDIZED CURRICULUM RESULTING IN AN INDUS-
 TRY-RECOGNIZED CREDENTIAL FOR PERMANENT EMPLOYEES THAT INCLUDES  MEASUR-
 ABLE  GOALS,  REGULAR  REPORTING, AND ACCOUNTABILITY STANDARDS TO ASSESS
 PROGRAM EFFECTIVENESS. EXAMPLES OF SUCH PROGRAMS INCLUDE  APPRENTICESHIP
 PROGRAMS REGISTERED IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THE LABOR
 LAW,  IN  THE  TRADES  IN  WHICH  THEY ARE PERFORMING WORK AND WORKFORCE
 TRAINING PROVIDED THROUGH A COMMUNITY-LABOR PARTNERSHIP AGREEMENT.
   3. "MANUFACTURING BUSINESS" MEANS A BUSINESS THAT IS  ENGAGED  IN  THE
 PROCESS OF WORKING RAW MATERIALS INTO PRODUCTS SUITABLE FOR USE OR WHICH
 S. 3009--B                         44
 
 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-
 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.
   6.  "WORKFORCE  TRAINING  PLAN"  MEANS  A DETAILED PLAN OUTLINING AT A
 MINIMUM:
   (A) THE TOTAL DOLLAR COST OF EACH TRAINING  PROGRAM  TO  THE  BUSINESS
 ENTITY;
   (B)  THE  NUMBER OF FULL-TIME NON-TEMPORARY EXISTING EMPLOYEES AND NEW
 HIRES TRAINED OR TO BE TRAINED, BY JOB CLASSIFICATION;
   (C) DETAILED INFORMATION ABOUT EACH TRAINING PROGRAM, INCLUDING A LIST
 OF APPLICABLE TRANSFERRABLE CREDENTIALING  OPPORTUNITIES  THAT  WILL  BE
 PROVIDED  AND  INFORMATION ON WHETHER OR NOT THE PROGRAM IS A REGISTERED
 APPRENTICESHIP PROGRAM;
   (D) DETAILED INFORMATION  ON  ANY  TRAINING  OPPORTUNITIES  GEARED  TO
 FACILITATE  THE  DIRECT  ENTRY  OF LOCAL   AND/OR DISADVANTAGED WORKERS,
 INCLUDING THE NUMBER  OF  PARTICIPANTS  AND  DESCRIPTION  OF  WRAPAROUND
 SERVICES PROVIDED; AND
   (E)  INFORMATION  ON  ANY  FORMALIZED  AGREEMENTS OR PARTNERSHIPS WITH
 COMMUNITY OR LABOR ORGANIZATIONS TO SUPPORT THE TRAINING PROGRAM.
   § 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;
   3. THE BUSINESS ENTITY MUST  DEMONSTRATE  A  COMMITMENT  TO  PROVIDING
 TRAINING  OPPORTUNITIES  FOR DISADVANTAGED AND UNDERREPRESENTED INDIVID-
 UALS IN ORDER TO CREATE HIGH QUALITY JOBS WITHIN THE STATE  FOR  HISTOR-
 ICALLY DISADVANTAGED GROUPS; AND
 S. 3009--B                         45
 
   4.  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 A WORKFORCE TRAINING PLAN AND ANY SUCH ADDITIONAL DOCUMEN-
 TATION 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  PROVID-
 ER.  INFORMATION  SUBMITTED  IN  THE WORKFORCE TRAINING PLAN, OTHER THAN
 SPECIFIC TRAINING CONTENT, SHALL BE SUBJECT TO DISCLOSURE UNDER  SECTION
 EIGHTY-SEVEN  OF  THE  PUBLIC  OFFICERS LAW AND NOT SUBJECT TO EXEMPTION
 UNDER PARAGRAPH (D) OF SUBDIVISION TWO OF SUCH SECTION;
   (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-
 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
 S. 3009--B                         46
 
 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,  REGULAR  REPORTING  AND  EVALUATION OF PROGRAM
 PARTICIPANTS, 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 AND REPORTING REQUIREMENTS. EACH BUSINESS  ENTITY
 PARTICIPATING  IN THE PROGRAM MUST SUBMIT DOCUMENTATION SHOWING PROOF OF
 COMPLIANCE WITH THE WORKFORCE TRAINING  PLAN  WITHIN  TWELVE  MONTHS  OF
 RECEIVING  CREDIT  AND SHALL MAINTAIN ALL RELEVANT RECORDS FOR THE DURA-
 TION 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
 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
 S. 3009--B                         47
 
 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
 (sss) to read as follows:
   (SSS)  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
 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.
 S. 3009--B                         48
 
   (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-
 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.
 S. 3009--B                         49

   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.
   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] NINE 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
 S. 3009--B                         50
 
 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
 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
 S. 3009--B                         51

 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.
   (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.
 S. 3009--B                         52
 
   (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
 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] NINE-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
 S. 3009--B                         53

 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-
 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:
 S. 3009--B                         54
 
   (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, AND (III) EXCEPT WITH RESPECT TO A
 QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY OR PILOT, AT  LEAST  FIFTY
 PERCENT OF EXPENDITURES ON SCORING SPENT IN THE PRODUCTION OF SUCH QUAL-
 IFIED  FILM MUST BE SPENT ON SCORING PERFORMED WITHIN THE STATE.  Howev-
 er, if the qualified production costs (excluding post production  costs)
 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 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 quali-
 fied 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 qualified 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 allocated 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 taxa-
 ble 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.  PROVIDED, HOWEVER, 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) 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
 S. 3009--B                         55
 
 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
 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.
 S. 3009--B                         56

   (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 2 and 7 of subdivision (b) of section 24 of  the  tax
 law,  paragraph 2 as amended by section 3 of part D of chapter 59 of the
 laws of 2023, paragraph 7 as added by section 9 of part Q of chapter  57
 of the laws of 2010, are amended to read as follows:
   (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,  SCORING, 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 responsible for  the  day-to-day  operational  management  of
 production of the qualified film; provided, however, that such producers
 are  not  compensated  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] TWENTY-FIVE million dollars, and (ii)
 controls the qualified film during production, 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 trad-
 ed entity.
   § 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
 S. 3009--B                         57
 
 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,
 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
 S. 3009--B                         58

 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-
 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,
 S. 3009--B                         59
 
 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. Intentionally omitted.
   §  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  OR
 seventy-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
 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.
 S. 3009--B                         60
 
   (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 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.
   § 8. Intentionally omitted.
   §  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
 S. 3009--B                         61
 
 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
 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
 S. 3009--B                         62
 
 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
 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  TWENTY-FIVE
 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
 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.
   (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--B                         63
 
 (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
 WITH  A MAXIMUM BUDGET OF TWENTY-FIVE MILLION DOLLARS, AND (II) CONTROLS
 THE QUALIFIED FILM DURING PRODUCTION, 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.
   (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) 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.
 S. 3009--B                         64

   (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.   THERE SHALL BE AT  LEAST  TWO  APPLICATION
 PERIODS  EACH  YEAR; SUCH AGGREGATE AMOUNT OF CREDITS 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 AGGREGATE AMOUNT OF TAX CREDITS
 AVAILABLE FOR AN APPLICATION PERIOD UNDER PARAGRAPH ONE OF THIS SUBDIVI-
 SION  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 UNALLO-
 CATED TAX CREDITS FOR SUCH PERIOD, THEN SUCH COMMISSIONER  MAY  ALLOCATE
 TO  PRODUCTIONS  ELIGIBLE  UNDER  SUCH PARAGRAPH ANY CREDITS THAT REMAIN
 UNALLOCATED FOR SUCH PERIOD PURSUANT TO PARAGRAPH TWO OF  THIS  SUBDIVI-
 SION.  PROVIDED,  HOWEVER, THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED
 IN ANY CALENDAR YEAR SHALL NOT EXCEED THE AGGREGATE AMOUNT OF TAX  CRED-
 ITS 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
 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)  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
 S. 3009--B                         65
 
 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-
 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
 
                           Intentionally Omitted
 
                                  PART K

   Section 1. Subdivisions (b) and (c) of section 45 of the tax  law,  as
 added  by  section  1  of part OO of chapter 59 of the laws of 2022, are
 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
 S. 3009--B                         66
 
 gaming media production credit with  such  office.  AN  APPLICANT  SHALL
 SUBMIT  AN  ANNUAL APPLICATION WHICH SHALL INCLUDE ALL QUALIFIED DIGITAL
 GAMING MEDIA PRODUCTIONS FOR THE TAXABLE YEAR ALONG WITH AN ESTIMATE  OF
 THE  DIGITAL  GAMING  MEDIA  PRODUCTION  COSTS.  THE  APPLICATION CAN BE
 SUBMITTED NO EARLIER THAN NINETY DAYS PRIOR TO  THE  FIRST  DAY  OF  THE
 APPLICABLE  TAXABLE  YEAR.  If  the  total  amount  of allocated credits
 applied for in any particular year exceeds the aggregate 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  AGGRE-
 GATE  AMOUNT  OF  CREDITS ALLOWED IN THE NEXT SUCCEEDING TAXABLE YEAR OR
 YEARS.
   (c) Definitions. As used in this section:
   (1) "Qualified digital gaming media production" means: (i) a  website,
 the  digital media production costs of which are paid or incurred predo-
 minately in connection  with  (A)  video  simulation,  animation,  text,
 audio,  graphics  or similar gaming related property embodied in digital
 format, and (B) interactive features of  digital  gaming  (e.g.,  links,
 message  boards,  communities  or  content  manipulation); (ii) video or
 interactive games produced primarily for distribution over the internet,
 wireless network or successors thereto; and (iii) animation,  simulation
 or  embedded  graphics  digital  gaming  related  software  intended for
 commercial distribution regardless of medium;  provided,  however,  that
 the  qualified  digital  game development media productions described in
 subparagraphs (i) through (iii) of  this  paragraph  must  have  digital
 media  production  costs  equal  to  or in excess of [one hundred] FIFTY
 thousand dollars  per  production.  A  qualified  digital  gaming  media
 production  does not include a website, video, interactive game or soft-
 ware that is used predominately  for:  electronic  commerce  (retail  or
 wholesale  purposes  other  than  the  sale of video interactive games),
 gambling (including activities regulated by a New York  gaming  agency),
 or political advocacy purposes.
   (2)  "Digital gaming media production costs" means any costs for wages
 [or salaries] paid to  individuals,  [other  than  actors  or  writers,]
 directly  employed  for services performed by those individuals directly
 [and predominantly] in the creation of a digital gaming media production
 or productions. [Up to one hundred thousand dollars in wages  and  sala-
 ries  paid  to  such  employees, other than actors and writers, directly
 employed shall be used in  the  calculation  of  this  credit.]  Digital
 gaming  media  production  costs  include  but  shall  not be limited to
 payments for services performed  directly  [and  predominantly]  in  the
 development  (including concept creation), [design,] production (includ-
 ing concept creation), design, production (including  testing),  editing
 (including  encoding)  and  compositing  (including  the  integration of
 digital files for interaction by end users)  of  digital  gaming  media.
 Digital  gaming  media  production  costs  shall  not  include  expenses
 incurred for the  distribution,  marketing,  promotion,  or  advertising
 content  generated  by end users, other costs not directly [and predomi-
 nantly] related to the creation, production or modification  of  digital
 gaming media or costs used by the taxpayer as a basis of the calculation
 of  any other tax credit allowed under this chapter. In addition, [sala-
 ries or other income distribution] WAGES  related  to  the  creation  of
 S. 3009--B                         67

 digital gaming media for any person who PREDOMINATELY serves in A CORPO-
 RATE  CAPACITY  IN  the role of chief executive officer, chief financial
 officer, president, treasurer or similar CORPORATE position AND  WHO  IS
 NOT  DIRECTLY  ENGAGED  IN SERVICES RELATED TO THE CREATION OF A DIGITAL
 GAMING MEDIA PRODUCTION OR PRODUCTIONS shall not be included as  digital
 gaming  media  production  costs  if the digital gaming media production
 entity has more then ten employees. [Salaries  or  other  income]  WAGES
 PAID  to  a  person  serving in such a role for the digital gaming media
 production entity shall also not be included if the person was  employed
 by a related person of the digital gaming media production entity within
 sixty  months  of  the  date  the digital gaming media production entity
 applied for the tax credit certificate described in subdivision  (d)  of
 this  section.  For purposes of the preceding sentence, a related person
 shall have the same meaning as the term "related person" in section four
 hundred sixty-five of  the  internal  revenue  code.  [Furthermore,  any
 income or other distribution to any individual including, but not limit-
 ed  to,  licensing or royalty fees, who holds an ownership interest in a
 digital gaming media production entity, whether or not  such  individual
 is serving in the role of chief executive officer, chief financial offi-
 cer,  president, treasurer or similar position for such an entity, shall
 not be included as digital gaming media production  costs.  Up  to  four
 million  dollars  in qualified digital gaming media production costs per
 production shall be used in the calculation  of  this  credit.]  Digital
 gaming  media production costs shall not include those costs used by the
 taxpayer or another taxpayer as the basis calculation of any  other  tax
 credit allowed under this chapter.
   (3)  "Qualified  digital  gaming media production costs" means digital
 gaming media production costs only to the extent such costs are  attrib-
 utable  to  the  use  of  property or the performance of services by any
 persons within the state directly [and predominantly] in  the  creation,
 production  or modification of digital gaming related media. [Such total
 production costs incurred and paid in this state shall be  equal  to  or
 exceed  seventy-five  percent  of  total  cost of an eligible production
 incurred and paid within and without this state.]
   (4) "Digital gaming media  production  entity"  means  a  corporation,
 partnership,  limited  partnership or other entity or individual engaged
 in qualified digital game development media production.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2025 and before January 1, 2028.
 
                                  PART L
 
   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.
 S. 3009--B                         68
 
   § 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.
   § 4-a. Paragraph 4 of subdivision (b) of section 24-c of the tax  law,
 as  amended  by  section 2-a of subpart E of part I of chapter 59 of the
 laws of 2023, is amended to read as follows:
   (4) "Qualified New York city musical and theatrical production  compa-
 ny"  is a corporation, partnership, limited partnership, or other entity
 or individual which or who is principally engaged in the production of a
 qualified musical or theatrical production that is to be performed in  a
 level  one  or  level  two  qualified New York city production facility.
 STARTING IN TAXABLE YEAR TWO THOUSAND  TWENTY-FIVE,  A  PUBLICLY  TRADED
 ENTITY,  OR  AN  ENTITY WITH NO MORE THAN FIVE PERCENT OF THE BENEFICIAL
 OWNERSHIP OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRAD-
 ED ENTITY, SHALL NOT BE CONSIDERED A QUALIFIED NEW YORK CITY MUSICAL AND
 THEATRICAL PRODUCTION COMPANY.
 S. 3009--B                         69
 
   § 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, four and four-a 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--B                         70

 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--B                         71
 
   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--B                         72

 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--B                         73
 
 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--B                         74
 
   (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--B                         75
 
 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--B                         76
 
 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
 
                           Intentionally Omitted
 
                                  PART Q
 
                           Intentionally Omitted
 
                                  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
 S. 3009--B                         77
 
 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
 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
 S. 3009--B                         78
 
   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
 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
 S. 3009--B                         79
 
   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.]  THE AMOUNT BY WHICH THE  TOTAL
 TAX  IMPOSED  UNDER  THIS  ARTICLE EXCEEDS THE TOTAL TAX THAT WOULD HAVE
 BEEN IMPOSED UNDER THIS ARTICLE IF THIS PARAGRAPH DID NOT APPLY SHALL BE
 TREATED AS AN OBLIGATION OF THE DECEDENT AS OF THE DECEDENT'S DEATH THAT
 IS SUBJECT TO THE PROVISIONS OF THIS ARTICLE (BUT  WHICH  SHALL  NOT  BE
 DEDUCTIBLE FOR PURPOSES OF THIS ARTICLE).
   § 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
 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.
 S. 3009--B                         80
 
   § 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
 
                           Intentionally Omitted
 
                                  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:
 S. 3009--B                         81
 
           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
 
   (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:
 S. 3009--B                         82
 
   (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
 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-
 S. 3009--B                         83
 
 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
 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

                           Intentionally Omitted
 
                                  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
 S. 3009--B                         84
 
 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.
   § 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
 S. 3009--B                         85
 
   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
 [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
 S. 3009--B                         86
 
 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.
 
                                  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
 
                           Intentionally Omitted
 S. 3009--B                         87
 
                                 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:
   (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]  TWENTY-SIX;  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
 S. 3009--B                         88
 
 the  parties  as will permit continuation of an in-home experiment until
 June thirtieth, two  thousand  [twenty-five]  TWENTY-SIX;  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
 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] TWENTY-SIX, the amount used exclu-
 sively 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  twenty-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] TWENTY-SIX and on any day regard-
 less 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] TWENTY-SIX.  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 simul-
 casting  facility licensed in accordance with section one thousand seven
 (that has entered into a written agreement with such  facility's  repre-
 sentative  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  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  the period July first, nineteen hundred ninety-four through June
 thirtieth, two thousand [twenty-five] TWENTY-SIX.   This  section  shall
 supersede all inconsistent provisions of this chapter.
   §  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
 S. 3009--B                         89
 
 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]  TWENTY-SIX.    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
 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  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
 July  twenty-fifth, two thousand one through September eighth, two thou-
 sand  [twenty-four]  TWENTY-FIVE,  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]  2026;  provided,  however,  that  nothing
 contained  herein  shall be deemed to affect the application, qualifica-
 tion, expiration, 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
 S. 3009--B                         90
 
 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
 ing law, as added by section thirty-eight of this act, shall expire  and
 be  deemed repealed on July 1, [2025] 2026; 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.
   §  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 April first, two thousand one through December thirty-
 first, two thousand [twenty-five] TWENTY-SIX, 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 April first, two thousand one  through  December
 thirty-first,  two thousand [twenty-five] TWENTY-SIX, such payment shall
 be seven-tenths of one percent of regular, multiple and exotic pools.
   § 10. This act shall take effect immediately.
 S. 3009--B                         91
 
   § 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 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 THIRTY-ONE, 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,  THE  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 EMPLOYMENT LEVELS SINCE RECEIVING THE LOWER SLOT MACHINE TAX RATE, AN
 ACCOUNTING 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
 S. 3009--B                         92
 
 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:
   § 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, 2031.
 
                                  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
 S. 3009--B                         93

 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
 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
 S. 3009--B                         94

 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.
 
                                  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
 S. 3009--B                         95
 
 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;
   (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.
 
                                  PART JJ
 
   Section 1. (a) Notwithstanding any provision of  law,  rule  or  regu-
 lation  to  the  contrary,  any  site for which (i) a brownfield cleanup
 agreement with the department of environmental conservation was  entered
 into  prior  to  June 23, 2008 with respect to a site located within the
 Renaissance Commerce Park situate within the city  of  Lackawanna,  Erie
 county,  (ii)  which  received  a certificate of completion on or before
 December 31, 2017, and (iii) that has not otherwise had property  placed
 in  service upon such a site as of the effective date of this act, shall
 be an eligible site for purposes of  the  brownfield  redevelopment  tax
 credits  available  to such a site pursuant to section 21 of the tax law
 as in effect for such a site as  of  the  effective  date  of  this  act
 provided  the site preparation component shall be allowed for all appli-
 cable costs incurred on such a site prior to and within the tax year  in
 S. 3009--B                         96
 
 which improvements on such a site are placed in service, and for a seven
 year  period following the year property is first placed in service upon
 such a site, provided, such a date occurs prior to the  2036  tax  year,
 the  on-site ground water remediation component shall be allowed for all
 applicable costs incurred on such a site prior to  and  within  the  tax
 year in which improvements on such a site are placed in service, and for
 a  seven  year  period  following  the  year property is first placed in
 service upon such a site, provided, such a date occurs prior to the 2036
 tax year, and the tangible property credit component  shall  be  allowed
 for all applicable costs incurred on such a site prior to and within the
 tax year in which improvements on such a site are placed in service, and
 for  a ten year period (120 months) following the year property is first
 placed in service upon such a site, provided such a date occurs prior to
 the 2036 tax year.
   (b) In addition, any site for which (i) a brownfield cleanup agreement
 with the department of environmental conservation was entered into prior
 to June 23, 2008 with respect to a site located within  the  Renaissance
 Commerce  Park  situate within the city of Lackawanna, Erie county, (ii)
 which received a certificate of completion on  or  before  December  31,
 2017,  and  (iii)  that has not otherwise had property placed in service
 upon such a site as of the effective date of this act shall be  eligible
 to  claim  the tax credit for remediated brownfields available to such a
 site pursuant to section 22 of the tax law as in effect for such a  site
 as  of  the  effective  date  of this act provided the benefit period as
 applicable thereto shall be  deemed  to  be  a  ten-consecutive-tax-year
 period  beginning with the tax year in which improvements on such a site
 are placed in service where said benefit period  shall  begin  no  later
 than the 2036 tax year.
   (c)  Further,  any  site  for which (i) a brownfield cleanup agreement
 with the department of environmental conservation was entered into prior
 to June 23, 2008 with respect to a site located within  the  Renaissance
 Commerce  Park  situate within the city of Lackawanna, Erie county, (ii)
 which received a certificate of completion on  or  before  December  31,
 2017,  and  (iii)  that has not otherwise had property placed in service
 upon such a site as of the effective date  of  this  act,  shall  be  an
 eligible  site  for  purposes  of claiming the tax credit for remediated
 brownfields available to such a site pursuant to section 22 of  the  tax
 law, provided that such developer as defined under section 22 of the tax
 law  has  purchased  or  in  any  other way has been conveyed all or any
 portion of such a site from any other party who or which has been issued
 a certificate of completion  with  respect  to  such  site  and  further
 provided  that such purchase or conveyance occurs no later than the 2036
 tax year.
   § 2. This act shall take effect immediately.
 
                                  PART KK
 
   Section 1. Paragraphs 1 and 9 of subsection (g-4) of  section  606  of
 the  tax law, as added by section 1 of part FF of chapter 59 of the laws
 of 2022, are amended to read as follows:
   (1) General. An individual taxpayer shall be allowed a credit  against
 the  tax  imposed by this article equal to twenty-five percent of quali-
 fied geothermal  energy  system  expenditures,  except  as  provided  in
 subparagraph (D) of paragraph two of this subsection, not to exceed five
 thousand  dollars  FOR  QUALIFIED  GEOTHERMAL  ENERGY  SYSTEMS PLACED IN
 SERVICE BEFORE JUNE THIRTIETH, TWO THOUSAND TWENTY-FIVE, AND  TEN  THOU-
 S. 3009--B                         97

 SAND DOLLARS FOR QUALIFIED GEOTHERMAL ENERGY EQUIPMENT PLACED IN SERVICE
 ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE.
   (9)  Carryover of credit AND REFUNDABILITY. If the amount of the cred-
 it, and carryovers of such credit, allowable under this  subsection  for
 any  taxable  year  shall  exceed the taxpayer's tax for such year, such
 excess amount may be carried over to the five taxable years next follow-
 ing the taxable year with respect to which the credit is allowed and may
 be deducted from the taxpayer's tax for such year or years. FOR  TAXABLE
 YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, IF
 THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBSECTION  SHALL  EXCEED
 THE  TAXPAYER'S  TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER MEETS THE
 DEFINITION OF LOW-TO-MODERATE INCOME, AS DEFINED IN SUBDIVISION  (C)  OF
 SECTION  NINE HUNDRED SEVENTY-C OF THE GENERAL MUNICIPAL LAW, OR RESIDES
 IN A DISADVANTAGED COMMUNITY, AS DEFINED IN SUBDIVISION FIVE OF  SECTION
 75-0101  OF  THE  ENVIRONMENTAL  CONSERVATION  LAW,  THE EXCESS SHALL BE
 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED. ANY  REFUND
 PAID  PURSUANT  TO  THIS  PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN
 OVERPAYMENT OF TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.
 
                                  PART LL
 
   Section 1. Subdivision (jj) of section 1115 of the tax law,  as  added
 by section 1 of part SS of chapter 59 of the laws of 2015, is REPEALED.
   §  2.  Subdivision  13  of  section  1118  of the tax law, as added by
 section 2 of part SS of chapter 59 of the laws of 2015, is REPEALED.
   § 3. This act shall take effect June 1, 2025.
                                  PART MM
 
   Section 1. Subsection (g-1) of section 606 of the tax law,  as amended
 by chapter 378 of the laws of 2005,  paragraphs 1 and 2  as  amended  by
 chapter  375 of the laws of 2012, paragraph 3 as amended, paragraph 5 as
 added, and paragraphs 6, 7 and 8 as renumbered by  chapter  128  of  the
 laws of 2007, is amended to read as follows:
   (g-1) Solar energy system equipment credit. (1) General. An individual
 taxpayer shall be allowed a credit against the tax imposed by this arti-
 cle  equal to twenty-six percent of qualified solar energy system equip-
 ment expenditures, except as provided in subparagraph (D)  of  paragraph
 two  of  this  subsection.  This  credit shall not exceed three thousand
 seven hundred fifty dollars for qualified solar energy equipment  placed
 in service before September first, two thousand six, [and] five thousand
 dollars  for  qualified  solar  energy equipment placed in service on or
 after September first, two thousand six AND BEFORE  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-SIX, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENERGY
 EQUIPMENT  PLACED  IN  SERVICE  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-SIX.
   (2) Qualified solar energy system equipment expenditures. (A) The term
 "qualified solar energy system equipment  expenditures"  means  expendi-
 tures for:
   (i)  the  purchase of solar energy system equipment which is installed
 in connection with residential property which is  (I)  located  in  this
 state and (II) which is used by the taxpayer as [his or her] THEIR prin-
 cipal  residence at the time the solar energy system equipment is placed
 in service;
 S. 3009--B                         98
 
   (ii) the lease of solar energy system equipment under a written agree-
 ment that spans at least ten years  where  such  equipment  owned  by  a
 person  other than the taxpayer is installed in connection with residen-
 tial property which is (I) located in this state and (II) which is  used
 by  the  taxpayer  as [his or her] THEIR principal residence at the time
 the solar energy system equipment is placed in service; or
   (iii) the purchase of power under a written agreement  that  spans  at
 least  ten  years  whereunder  the power purchased is generated by solar
 energy system equipment owned by a person other than the taxpayer  which
 is  installed  in  connection  with  residential  property  which is (I)
 located in this state and (II) which is used by the taxpayer as [his  or
 her]  THEIR  principal  residence  at  the  time the solar energy system
 equipment is placed in service.
   (B) Such qualified expenditures shall include expenditures for materi-
 als, labor costs properly allocable to on-site preparation, assembly and
 original  installation,  architectural  and  engineering  services,  and
 designs  and  plans directly related to the construction or installation
 of the solar energy system equipment.
   (C) Such qualified expenditures  for  the  purchase  of  solar  energy
 system equipment shall not include interest or other finance charges.
   (D)  Such  qualified expenditures for the lease of solar energy system
 equipment or the purchase of  power  under  an  agreement  described  in
 clauses  (ii)  or  (iii)  of  subparagraph  (A)  of this paragraph shall
 include an amount equal to all payments made  during  the  taxable  year
 under  such  agreement.  Provided,  however,  such credits shall only be
 allowed for fourteen years after the first taxable year  in  which  such
 credit  is  allowed.  Provided further, however, the twenty-five percent
 limitation in paragraph one of this subsection shall only apply  to  the
 total  aggregate amount of all payments to be made pursuant to an agree-
 ment referenced in clauses (ii) or (iii) of  subparagraph  (A)  of  this
 paragraph,  and  shall  not  apply  to individual payments made during a
 taxable year under such agreement except to the extent  such  limitation
 on an aggregate basis has been reached.
   (3)  Solar  energy  system  equipment.  The  term "solar energy system
 equipment" shall  mean  an  arrangement  or  combination  of  components
 utilizing solar radiation, which, when installed in a residence, produc-
 es  AND MAY STORE energy designed to provide heating, cooling, hot water
 or electricity for use in such residence. Such arrangement or components
 MAY INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include  ANY
 OTHER  equipment  connected  to  solar energy system equipment that is a
 component of part or parts of a non-solar energy system  or  which  uses
 any  sort  of  recreational  facility  or equipment as a storage medium.
 Solar energy system equipment that generates AND STORES electricity  for
 use  in a residence must conform to applicable requirements set forth in
 section sixty-six-j of the public service law. Provided, however,  where
 solar  energy system equipment is purchased and installed by a condomin-
 ium management association or a  cooperative  housing  corporation,  for
 purposes  of  this  subsection  only,  the  term "ten kilowatts" in such
 section sixty-six-j shall be read as ["fifty] "TEN kilowatts  MULTIPLIED
 BY  THE NUMBER OF OWNER-OCCUPIED UNITS IN THE COOPERATIVE OR CONDOMINIUM
 MANAGEMENT ASSOCIATION."
   (4)  Multiple  taxpayers.  Where  solar  energy  system  equipment  is
 purchased  and  installed in a principal residence shared by two or more
 taxpayers, the amount of the credit allowable under this subsection  for
 each  such taxpayer shall be prorated according to the percentage of the
 S. 3009--B                         99
 
 total expenditure for such solar energy system equipment contributed  by
 each taxpayer.
   (5)  Proportionate  share.  Where  solar  energy  system  equipment is
 purchased and installed by a condominium  management  association  or  a
 cooperative  housing  corporation,  a  taxpayer  who  is a member of the
 condominium management association or who is a tenant-stockholder in the
 cooperative housing corporation may for the purpose of  this  subsection
 claim  a proportionate share of the total expense as the expenditure for
 the purposes of the credit attributable to [his] THEIR  principal  resi-
 dence.
   (6)  Grants. For purposes of determining the amount of the expenditure
 incurred in purchasing and installing solar energy system equipment, the
 amount of any federal, state or local grant received  by  the  taxpayer,
 which  was  used  for the purchase and/or installation of such equipment
 and which was not included in the federal gross income of the  taxpayer,
 shall not be included in the amount of such expenditures.
   (7)    When  credit  allowed.  The credit provided for herein shall be
 allowed with respect to the  taxable  year,  commencing  after  nineteen
 hundred  ninety-seven,  in  which  the  solar energy system equipment is
 placed in service.
   (8) Carryover of credit AND REFUNDABILITY. If the amount of the  cred-
 it,  and  carryovers of such credit, allowable under this subsection for
 any taxable year shall exceed the taxpayer's tax  for  such  year,  such
 excess amount may be carried over to the five taxable years next follow-
 ing the taxable year with respect to which the credit is allowed and may
 be deducted from the taxpayer's tax for such year or years.  FOR TAXABLE
 YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, IF
 THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBSECTION  SHALL  EXCEED
 THE  TAXPAYER'S  TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER MEETS THE
 DEFINITION OF LOW TO MODERATE INCOME, AS DEFINED IN SUBDIVISION  (C)  OF
 SECTION  NINE HUNDRED SEVENTY-C OF THE GENERAL MUNICIPAL LAW, OR RESIDES
 IN A DISADVANTAGED COMMUNITY, AS DEFINED IN SUBDIVISION FIVE OF  SECTION
 75-0101  OF  THE  ENVIRONMENTAL  CONSERVATION  LAW,  THE EXCESS SHALL BE
 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.
 
                                  PART NN
 
   Section  1.   Paragraph (b) of subdivision 9 of section 208 of the tax
 law is amended by adding a new subparagraph 28 to read as follows:
   (28) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 2. Subdivision 9 of section 208 of the tax law is amended by  adding
 a new paragraph (u) to read as follows:
   (U)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO  WHICH
 THE  TAXPAYER  HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
 (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL  REVENUE  CODE,
 THE  BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 3. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 44 to read as follows:
 S. 3009--B                         100
 
   (44) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  4. Section 612 of the tax law is amended by adding a new subsection
 (y) to read as follows:
   (Y) QUALIFIED OPPORTUNITY ZONES.  FOR TAX YEARS BEGINNING ON OR  AFTER
 JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SIX, UPON THE SALE OR EXCHANGE OF
 PROPERTY WITH RESPECT TO WHICH THE TAXPAYER HAS MADE THE ELECTION  UNDER
 SUBPARAGRAPH  (C)  OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2
 OF THE INTERNAL REVENUE CODE, THE BASIS  OF  SUCH  PROPERTY  UNDER  THIS
 ARTICLE  SHALL  BE  DETERMINED  AS  IF  THE  TAXPAYER  HAD NOT MADE SUCH
 ELECTION.
   § 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law  is
 amended by adding a new subparagraph (AA) to read as follows:
   (AA)    THE  AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  6.  Section 1503 of the tax law is amended by adding a new subdivi-
 sion (d) to read as follows:
   (D) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-SIX,  UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C)  OF  PARAGRAPH
 (1)  OF  SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
 THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS  IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  7. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 23 to read as follows:
   (23) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 8. Section 11-602 of the administrative code of the city of New York
 is amended by adding a new subdivision 11 to read as follows:
   11. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-SIX,  UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C)  OF  PARAGRAPH
 (1)  OF  SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
 THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS  IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 24 to read as follows:
   (24) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 10. Subdivision 8 of section 11-652 of the  administrative  code  of
 the city of New York is amended by adding a new paragraph (u) to read as
 follows:
   (U)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO  WHICH
 THE  TAXPAYER  HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
 (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL  REVENUE  CODE,
 THE  BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
 S. 3009--B                         101
 
   § 11. Subdivision (b) of section 11-1712 of the administrative code of
 the city of New York is amended by adding a new paragraph 40 to read  as
 follows:
   (40)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  12.  Section  11-1712 of the administrative code of the city of New
 York is amended by adding a new subdivision (w) to read as follows:
   (W) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-SIX,  UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C)  OF  PARAGRAPH
 (1)  OF  SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
 THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS  IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  13. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2026.
 
                                  PART OO
 
   Section 1. Section 1180 of the tax law is amended by adding  five  new
 subdivisions (c), (d), (e), (f), and (g) to read as follows:
   (C)  "FLAVORED NICOTINE ANALOGUE PRODUCT" MEANS A FLAVORED VAPOR PROD-
 UCT THAT CONTAINS A NICOTINE ANALOGUE.
   (D) "FLAVORED VAPOR PRODUCT" SHALL HAVE THE SAME MEANING AS  DESCRIBED
 IN SECTION THIRTEEN HUNDRED NINETY-NINE-MM-1 OF THE PUBLIC HEALTH LAW.
   (E) "NICOTINE ANALOGUE" MEANS A SUBSTANCE:
   (1)  (A)  THE  CHEMICAL STRUCTURE OF WHICH IS SUBSTANTIALLY SIMILAR TO
 THE CHEMICAL STRUCTURE OF NICOTINE; OR
   (B) WHICH HAS, PURPORTS TO HAVE, OR IS REPRESENTED TO HAVE, AN  EFFECT
 ON  THE CENTRAL NERVOUS SYSTEM THAT IS SIMILAR TO OR GREATER THAN EFFECT
 ON THE CENTRAL NERVOUS SYSTEM OF NICOTINE.
   (2) FACTORS RELEVANT TO DETERMINING WHETHER A SUBSTANCE IS A  NICOTINE
 ANALOGUE INCLUDE, BUT ARE NOT LIMITED TO, THE MARKETING, ADVERTISING AND
 LABELING  OF  THE SUBSTANCE, AND WHETHER THE SUBSTANCE HAS BEEN MANUFAC-
 TURED, FORMULATED, SOLD, DISTRIBUTED, OR MARKETED  WITH  THE  INTENT  TO
 AVOID THE PROVISIONS OF THIS SUBDIVISION AND OTHER APPLICABLE PROVISIONS
 OF LAW.
   (F) "VAPOR PRODUCTS DISTRIBUTOR" MEANS ANY PERSON WHO IMPORTS OR CAUS-
 ES  TO  BE  IMPORTED INTO THIS STATE ANY VAPOR PRODUCTS FOR SALE, OR WHO
 MANUFACTURES ANY VAPOR PRODUCT IN THIS STATE, AND ANY PERSON  WITHIN  OR
 WITHOUT  THE STATE WHO IS AUTHORIZED BY THE COMMISSIONER TO MAKE RETURNS
 AND PAY THE TAX ON VAPOR PRODUCTS SOLD, SHIPPED, OR  DELIVERED  BY  SUCH
 PERSON TO ANY PERSON IN THE STATE.
   (G) "WHOLESALE PRICE" MEANS THE PRICE AT WHICH A VAPOR PRODUCTS DEALER
 PURCHASES VAPOR PRODUCTS FROM A VAPOR PRODUCTS DISTRIBUTOR.
   § 2. Section 1181 of the tax law, as amended by chapter 92 of the laws
 of 2021, is amended to read as follows:
   §  1181.  Imposition of tax.  (A) In addition to any other tax imposed
 by this chapter or other law, there is hereby imposed a  tax  of  twenty
 percent  on  [receipts  from the retail sale of vapor products sold] THE
 WHOLESALE PRICE OF VAPOR PRODUCTS SOLD BY A VAPOR  PRODUCTS  DISTRIBUTOR
 TO  A  VAPOR  PRODUCTS  DEALER  in this state. The tax is imposed on the
 [purchaser] VAPOR PRODUCTS DEALER and collected by  the  vapor  products
 [dealer  as  defined in subdivision (b) of section eleven hundred eighty
 of this article] DISTRIBUTOR, in trust for and on account of the  state.
 S. 3009--B                         102
 
 The taxes imposed under this section shall not apply to adult-use canna-
 bis products subject to tax under article twenty-C of this chapter.
   (B)  THE VAPOR PRODUCTS DISTRIBUTOR SHALL BE LIABLE FOR THE PAYMENT OF
 THE TAX ON VAPOR PRODUCTS WHICH THE VAPOR PRODUCTS  DISTRIBUTOR  IMPORTS
 OR  CAUSES  TO  BE  IMPORTED INTO THE STATE, OR WHICH THE VAPOR PRODUCTS
 DISTRIBUTOR MANUFACTURES IN THE STATE, AND EVERY VAPOR PRODUCTS DISTRIB-
 UTOR AUTHORIZED BY THE COMMISSIONER TO MAKE RETURNS AND PAY THE  TAX  ON
 TOBACCO  PRODUCTS  SOLD,  SHIPPED  OR  DELIVERED  BY  THE VAPOR PRODUCTS
 DISTRIBUTOR TO ANY PERSON IN THE STATE SHALL BE LIABLE FOR  THE  PAYMENT
 OF THE TAX ON ALL VAPOR PRODUCTS SO SOLD, SHIPPED OR DELIVERED.
   (C)  EVERY  VAPOR  PRODUCTS  DEALER SHALL BE LIABLE FOR THE TAX ON ALL
 VAPOR PRODUCTS IN THE VAPOR PRODUCTS  DISTRIBUTOR'S  POSSESSION  AT  ANY
 TIME,  UPON  WHICH  TAX HAS NOT BEEN PAID OR ASSUMED BY A VAPOR PRODUCTS
 DISTRIBUTOR APPOINTED BY THE COMMISSIONER, AND THE FAILURE OF ANY  VAPOR
 PRODUCTS  DEALER  TO  PRODUCE  AND  EXHIBIT  TO  THE COMMISSIONER OR THE
 COMMISSIONER'S AUTHORIZED REPRESENTATIVE UPON DEMAND, AN  INVOICE  BY  A
 VAPOR  PRODUCTS DISTRIBUTOR FOR ANY VAPOR PRODUCTS IN THE VAPOR PRODUCTS
 DISTRIBUTOR'S POSSESSION SHALL BE  PRESUMPTIVE  EVIDENCE  THAT  THE  TAX
 THEREON  HAS  NOT  BEEN PAID, AND THAT SUCH DEALER IS LIABLE FOR THE TAX
 THEREON UNLESS EVIDENCE OF SUCH INVOICE,  PAYMENT  OR  ASSUMPTION  SHALL
 LATER BE PRODUCED.
   §  3.  The  tax  law  is amended by adding two new sections 1183-a and
 1183-b to read as follows:
   § 1183-A. VAPOR PRODUCTS DISTRIBUTOR LICENSE AND  RENEWAL.  (A)  EVERY
 PERSON WHO INTENDS TO BE A VAPOR PRODUCTS DISTRIBUTOR IN THIS STATE MUST
 RECEIVE  FROM  THE COMMISSIONER A LICENSE PRIOR TO ENGAGING IN BUSINESS.
 IN ADDITION TO THE REQUIREMENTS OF SECTION ELEVEN  HUNDRED  EIGHTY-THREE
 OF THIS ARTICLE, A VAPOR PRODUCTS DEALER WHO PURCHASES OR RECEIVES VAPOR
 PRODUCTS  FROM  A  MANUFACTURER  OR  OUT-OF-STATE  DISTRIBUTOR  SHALL BE
 REQUIRED TO OBTAIN A VAPOR PRODUCTS DISTRIBUTOR LICENSE.  THE  APPLICANT
 FOR  A  VAPOR  PRODUCTS DISTRIBUTOR LICENSE MUST ELECTRONICALLY SUBMIT A
 PROPERLY COMPLETED APPLICATION FOR A LICENSE FOR EACH LOCATION AT  WHICH
 THE  BUSINESS  SHALL BE CONDUCTED IN THIS STATE, ON A FORM PRESCRIBED BY
 THE COMMISSIONER, AND SHALL BE ACCOMPANIED BY A NON-REFUNDABLE  APPLICA-
 TION FEE OF THREE HUNDRED DOLLARS.
   (B) A VAPOR PRODUCTS DISTRIBUTOR LICENSE SHALL BE VALID FOR THE CALEN-
 DAR  YEAR  FOR  WHICH  IT IS ISSUED UNLESS EARLIER SUSPENDED OR REVOKED.
 UPON THE EXPIRATION OF THE TERM STATED  ON  THE  LICENSE,  SUCH  LICENSE
 SHALL  BE NULL AND VOID. A LICENSE SHALL NOT BE ASSIGNABLE OR TRANSFERA-
 BLE AND SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DISTRIBU-
 TOR CEASING TO DO BUSINESS AS SPECIFIED IN SUCH LICENSE OR IN THE  EVENT
 THAT SUCH BUSINESS NEVER COMMENCED.
   (C)  EVERY  VAPOR  PRODUCTS  DISTRIBUTOR SHALL PUBLICLY DISPLAY IN THE
 VAPOR PRODUCTS DISTRIBUTOR'S  PLACE  OF  BUSINESS  A  LICENSE  FROM  THE
 DEPARTMENT.
   (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A LICENSE TO ANY APPLI-
 CANT WHO DOES NOT POSSESS A VALID CERTIFICATE OF AUTHORITY UNDER SECTION
 ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. IN ADDITION, THE COMMISSION-
 ER MAY REFUSE TO ISSUE A LICENSE, OR SUSPEND, CANCEL OR REVOKE A LICENSE
 ISSUED TO ANY PERSON WHO:
   (A)  HAS  A  PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE
 HUNDRED SEVENTY-ONE-V OF THIS CHAPTER;
   (B) HAS HAD A LICENSE UNDER THIS ARTICLE OR ANY LICENSE  OR  REGISTRA-
 TION  PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE
 ON WHICH SUCH APPLICATION WAS FILED;
 S. 3009--B                         103
 
   (C) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER  WITHIN
 ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED;
   (D)  WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTI-
 CLE;
   (E) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A
 REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE  WHICH
 IS FALSE;
   (F)  WILLFULLY  FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER
 ANY TAX IMPOSED BY THIS ARTICLE; OR
   (G) WHOSE PLACE OF BUSINESS IS AT THE  SAME  PREMISES  AS  THAT  OF  A
 PERSON  WHOSE  VAPOR  PRODUCTS  DISTRIBUTOR LICENSE HAS BEEN REVOKED AND
 WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR  VAPOR
 PRODUCTS  DISTRIBUTOR PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA-
 TION DEMONSTRATING THAT SUCH APPLICANT  OR  VAPOR  PRODUCTS  DISTRIBUTOR
 ACQUIRED THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS
 DEFINED  IN  PARAGRAPH  (E)  OF  SUBDIVISION ONE OF SECTION FOUR HUNDRED
 EIGHTY-A OF THIS CHAPTER.
   (2) IN ADDITION TO THE GROUNDS  PROVIDED  IN  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION,  THE COMMISSIONER SHALL REFUSE TO ISSUE A LICENSE AND SHALL
 CANCEL OR SUSPEND A LICENSE AS DIRECTED BY AN ENFORCEMENT OFFICER PURSU-
 ANT TO ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW. NOTWITHSTANDING  ANY
 PROVISION  OF  LAW TO THE CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A
 LICENSE IS REFUSED OR A VAPOR  PRODUCTS  DISTRIBUTOR  WHOSE  LICENSE  IS
 CANCELLED  OR  SUSPENDED  UNDER  THIS PARAGRAPH SHALL HAVE NO RIGHT TO A
 HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE  A  COURT
 ACTION  OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS-
 SIONER  WITH  RESPECT  TO  SUCH  REFUSAL,  SUSPENSION  OR  CANCELLATION;
 PROVIDED,  HOWEVER,  THAT  NOTHING  HEREIN  SHALL BE CONSTRUED TO DENY A
 VAPOR PRODUCTS DISTRIBUTOR A HEARING UNDER  ARTICLE  THIRTEEN-F  OF  THE
 PUBLIC  HEALTH  LAW  OR  TO  PROHIBIT  VAPOR  PRODUCTS DISTRIBUTORS FROM
 COMMENCING A COURT ACTION OR PROCEEDING AGAINST AN  ENFORCEMENT  OFFICER
 AS  DEFINED  IN  SECTION  THIRTEEN  HUNDRED NINETY-NINE-AA OF THE PUBLIC
 HEALTH LAW.
   (E) IF A VAPOR PRODUCTS DISTRIBUTOR LICENSE IS SUSPENDED, CANCELLED OR
 REVOKED AND SUCH VAPOR PRODUCTS DISTRIBUTOR DISTRIBUTES OR  SELLS  VAPOR
 PRODUCTS  THROUGH  MORE  THAN  ONE  PLACE OF BUSINESS IN THIS STATE, THE
 VAPOR PRODUCTS DISTRIBUTOR'S LICENSE ISSUED TO THAT  PLACE  OF  BUSINESS
 WHERE SUCH VIOLATION OCCURRED SHALL BE SUSPENDED, REVOKED, OR CANCELLED.
 PROVIDED, HOWEVER, UPON A VAPOR PRODUCTS DISTRIBUTOR'S THIRD SUSPENSION,
 CANCELLATION,  OR  REVOCATION  WITHIN  A FIVE-YEAR PERIOD FOR ANY ONE OR
 MORE BUSINESSES OWNED OR OPERATED BY  THE  VAPOR  PRODUCTS  DISTRIBUTOR,
 SUCH  SUSPENSION,  CANCELLATION,  OR  REVOCATION  OF  THE VAPOR PRODUCTS
 DISTRIBUTOR'S LICENSE SHALL APPLY TO ALL PLACES OF  BUSINESS  WHERE  THE
 VAPOR  PRODUCTS  DISTRIBUTOR DISTRIBUTES OR SELLS VAPOR PRODUCTS IN THIS
 STATE.
   (F) EVERY HOLDER OF A LICENSE MUST NOTIFY THE COMMISSIONER OF  CHANGES
 TO ANY OF THE INFORMATION STATED ON THE LICENSE OR CHANGES TO ANY INFOR-
 MATION  CONTAINED  IN THE APPLICATION FOR THE LICENSE. SUCH NOTIFICATION
 MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN  WHICH  A  CHANGE
 OCCURS  AND  MUST  BE  MADE  ELECTRONICALLY  ON A FORM PRESCRIBED BY THE
 COMMISSIONER.
   (G) EVERY VAPOR PRODUCTS DISTRIBUTOR WHO HOLDS A  LICENSE  UNDER  THIS
 ARTICLE  SHALL  BE  REQUIRED  TO REAPPLY FOR A LICENSE FOR THE FOLLOWING
 CALENDAR YEAR ON OR BEFORE THE TWENTIETH DAY OF SEPTEMBER AND SUCH REAP-
 PLICATION SHALL BE SUBJECT TO  THE  SAME  REQUIREMENTS  AND  CONDITIONS,
 INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL LICENSE UNDER THIS ARTICLE,
 S. 3009--B                         104
 
 INCLUDING  BUT  NOT  LIMITED  TO THE PAYMENT OF THE THREE HUNDRED DOLLAR
 APPLICATION FEE FOR EACH BUSINESS LOCATION.
   (H)  IN  ADDITION  TO  ANY  OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY
 VAPOR PRODUCTS DISTRIBUTOR WHO VIOLATES THE PROVISIONS OF THIS  SECTION,
 (1)  FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE
 THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH
 LICENSE MAY BE SUSPENDED FOR A PERIOD OF NOT MORE THAN SIX  MONTHS;  AND
 (2)  FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A
 PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A  CIVIL  FINE  NOT  LESS
 THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY-FIVE THOUSAND DOLLARS
 AND  SUCH  LICENSE  MAY  BE  SUSPENDED  FOR A PERIOD OF UP TO THIRTY-SIX
 MONTHS; OR (3) FOR A THIRD VIOLATION WITHIN A PERIOD OF FIVE YEARS,  THE
 LICENSE  ISSUED TO EACH PLACE OF BUSINESS OWNED OR OPERATED BY THE VAPOR
 PRODUCTS DISTRIBUTOR IN THIS STATE SHALL BE REVOKED FOR A PERIOD  OF  UP
 TO FIVE YEARS.
   § 1183-B. RESTRICTIONS ON SALE.  NO PERSON, INCLUDING A VAPOR PRODUCTS
 DEALER  OR  ANY AGENT OR EMPLOYEE OF A VAPOR PRODUCTS DEALER, SHALL SELL
 OR OFFER FOR SALE AT RETAIL IN THE STATE OR TO ANY PERSON IN  THE  STATE
 ANY FLAVORED NICOTINE ANALOGUE PRODUCT.
   §  4. Section 1184 of the tax law, as added by section 1 of part UU of
 chapter 59 of the laws of 2019, is amended to read as follows:
   § 1184. Administrative provisions. (a) [Except as  otherwise  provided
 for in this article, the taxes imposed by this article shall be adminis-
 tered  and  collected  in  a  like  manner as and jointly with the taxes
 imposed by sections eleven hundred five and eleven hundred ten  of  this
 chapter.  In addition, except as otherwise provided in this article, all
 of the provisions  of  article  twenty-eight  of  this  chapter  (except
 sections  eleven  hundred  seven,  eleven  hundred eight, eleven hundred
 nine, and eleven hundred forty-eight) relating to or applicable  to  the
 administration,  collection  and  review  of  the  taxes imposed by such
 sections eleven hundred five and eleven hundred ten, including, but  not
 limited to, the provisions relating to definitions, returns, exemptions,
 penalties,  tax  secrecy, personal liability for the tax, and collection
 of tax from the customer, shall apply to the taxes imposed by this arti-
 cle so far as such provisions  can  be  made  applicable  to  the  taxes
 imposed by this article with such limitations as set forth in this arti-
 cle  and  such  modifications as may be necessary in order to adapt such
 language to the taxes so imposed. Such provisions shall apply  with  the
 same  force  and  effect as if the language of those provisions had been
 set forth in full  in  this  article  except  to  the  extent  that  any
 provision  is either inconsistent with a provision of this article or is
 not relevant to the taxes imposed by this article.
   (b) Notwithstanding the provisions of subdivision (a) of this section,
 the exemptions provided in paragraph ten of subdivision (a)  of  section
 eleven  hundred  fifteen  of this chapter, and the provisions of section
 eleven hundred sixteen, except those provided in  paragraphs  one,  two,
 three and six of subdivision (a) of such section, shall not apply to the
 taxes imposed by this article.] EVERY VAPOR PRODUCTS DISTRIBUTOR AUTHOR-
 IZED  BY  THE  COMMISSIONER  TO  MAKE  RETURNS  AND PAY THE TAX ON VAPOR
 PRODUCTS SOLD, SHIPPED, OR DELIVERED BY THE VAPOR  PRODUCTS  DISTRIBUTOR
 TO  A  PERSON  IN THE STATE SHALL FILE A RETURN SHOWING THE QUANTITY AND
 WHOLESALE PRICE OF ALL VAPOR PRODUCTS SO  SOLD,  SHIPPED,  OR  DELIVERED
 DURING THE PRECEDING CALENDAR MONTH. PROVIDED, HOWEVER, THE COMMISSIONER
 MAY,  IF  THE  COMMISSIONER  DEEMS  IT  NECESSARY IN ORDER TO ENSURE THE
 PAYMENT OF THE TAXES IMPOSED BY THIS ARTICLE, REQUIRE RETURNS TO BE MADE
 AT SUCH TIMES AND COVERING SUCH PERIODS AS  THE  COMMISSIONER  MAY  DEEM
 S. 3009--B                         105
 
 NECESSARY,  AND,  BY  REGULATION,  MAY PERMIT THE FILING OF RETURNS ON A
 QUARTERLY, SEMI-ANNUAL OR ANNUAL BASIS,  OR  MAY  WAIVE  THE  FILING  OF
 RETURNS  BY  A  VAPOR  PRODUCTS  DISTRIBUTOR FOR SUCH TIME AND UPON SUCH
 TERMS  AS  THE  COMMISSIONER  MAY  DEEM  PROPER IF SATISFIED THAT NO TAX
 IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE DURING THE TIME FOR  WHICH
 RETURNS  ARE WAIVED. SUCH RETURNS SHALL CONTAIN SUCH FURTHER INFORMATION
 AS THE COMMISSIONER MAY REQUIRE.
   (B) EVERY VAPOR PRODUCT DISTRIBUTOR SHALL PAY TO THE COMMISSIONER WITH
 THE FILING OF SUCH RETURN THE TAX  ON  VAPOR  PRODUCTS  FOR  SUCH  MONTH
 IMPOSED UNDER THIS ARTICLE, LESS TWO PERCENT, TO COVER THE DISTRIBUTOR'S
 EXPENSE IN THE COLLECTION AND REMITTANCE OF THE SAID TAX.
   (c)  Notwithstanding  the provisions of this section or section eleven
 hundred forty-six of this chapter, the commissioner may, in [his or her]
 THE COMMISSIONER'S discretion, permit the commissioner of health or [his
 or her] SUCH COMMISSIONER'S authorized  representative  to  inspect  any
 return related to the tax imposed by this article and may furnish to the
 commissioner  of  health  any  such  return  or supply [him or her] SUCH
 COMMISSIONER with information concerning an item contained in  any  such
 return,  or  disclosed  by  any  investigation of a liability under this
 article.
   § 5. The tax law is amended by adding  two  new  sections  1184-a  and
 1184-b to read as follows:
   § 1184-A. ENFORCEMENT. (A) THE COMMISSIONER OR THE COMMISSIONER'S DULY
 AUTHORIZED REPRESENTATIVES ARE HEREBY AUTHORIZED:
   (1)  TO  ENFORCE  THE PROVISIONS IN THIS ARTICLE AND THE PROVISIONS IN
 SECTION THIRTEEN HUNDRED  NINETY-NINE-MM-1  OF  THE  PUBLIC  HEALTH  LAW
 CONCERNING FLAVORED VAPOR PRODUCTS.
   (2)  TO CONDUCT REGULATORY INSPECTIONS DURING NORMAL BUSINESS HOURS OF
 ANY PLACE OF BUSINESS, INCLUDING A VEHICLE USED FOR SUCH BUSINESS, WHERE
 VAPOR PRODUCTS ARE DISTRIBUTED, PLACED, STORED,  SOLD,  OR  OFFERED  FOR
 SALE.  FOR  THE  PURPOSES OF THIS SECTION, "PLACE OF BUSINESS" SHALL NOT
 INCLUDE A RESIDENCE OR OTHER REAL PROPERTY, OR ANY PERSONAL  VEHICLE  ON
 OR  ABOUT SUCH PROPERTY, NOT HELD OUT AS OPEN TO THE PUBLIC OR OTHERWISE
 BEING UTILIZED IN A BUSINESS OR COMMERCIAL MANNER, UNLESS PROBABLE CAUSE
 EXISTS TO BELIEVE THAT SUCH RESIDENCE, REAL PROPERTY OR VEHICLE IS BEING
 USED IN SUCH A BUSINESS OR COMMERCIAL MANNER FOR THE BUYING  OR  SELLING
 OF VAPOR PRODUCTS.
   (3) TO EXAMINE ANY VAPOR PRODUCTS AND THE BOOKS, PAPERS, INVOICES, AND
 OTHER  RECORDS  OF ANY PLACE OF BUSINESS OR VEHICLE WHERE VAPOR PRODUCTS
 ARE DISTRIBUTED, PLACED, STORED, SOLD OR OFFERED FOR SALE. ANY PERSON IN
 POSSESSION, CONTROL OR OCCUPANCY OF ANY SUCH  BUSINESS  IS  REQUIRED  TO
 GIVE TO THE COMMISSIONER OR THE COMMISSIONER'S DULY AUTHORIZED REPRESEN-
 TATIVES,  THE  MEANS, FACILITIES, AND OPPORTUNITY FOR SUCH EXAMINATIONS.
 FOR THE PURPOSES OF THIS SECTION, "PLACE OF BUSINESS" SHALL NOT  INCLUDE
 A  RESIDENCE OR OTHER REAL PROPERTY, OR ANY PERSONAL VEHICLE ON OR ABOUT
 SUCH PROPERTY, NOT HELD OUT AS OPEN TO THE  PUBLIC  OR  OTHERWISE  BEING
 UTILIZED  IN  A  BUSINESS  OR  COMMERCIAL  MANNER, UNLESS PROBABLE CAUSE
 EXISTS TO BELIEVE THAT SUCH RESIDENCE, REAL PROPERTY OR VEHICLE IS BEING
 USED IN SUCH A BUSINESS OR COMMERCIAL MANNER FOR THE BUYING  OR  SELLING
 OF VAPOR PRODUCTS.
   (B)  IF ANY PERSON REGISTERED OR WHO HAS OBTAINED A LICENSE UNDER THIS
 ARTICLE, OR THEIR AGENTS, REFUSES  TO  GIVE  THE  COMMISSIONER,  OR  THE
 COMMISSIONER'S  DULY  AUTHORIZED  REPRESENTATIVES, THE MEANS, FACILITIES
 AND OPPORTUNITY FOR THE INSPECTIONS AND EXAMINATIONS  REQUIRED  BY  THIS
 SECTION,  THE  COMMISSIONER, AFTER NOTICE AND AN OPPORTUNITY FOR A HEAR-
 S. 3009--B                         106
 
 ING, MAY REVOKE THEIR LICENSE TO DISTRIBUTE VAPOR PRODUCTS  OR  TO  SELL
 VAPOR PRODUCTS AT RETAIL:
   (1) FOR A PERIOD OF ONE YEAR FOR THE FIRST SUCH FAILURE;
   (2) FOR A PERIOD OF UP TO THREE YEARS FOR A SECOND SUCH FAILURE WITHIN
 A PERIOD OF THREE YEARS; AND
   (3)  FOR A PERIOD OF UP TO SEVEN YEARS FOR A THIRD SUCH FAILURE WITHIN
 FIVE YEARS.
   (C) THE COMMISSIONER OR THE COMMISSIONER'S DULY  AUTHORIZED  REPRESEN-
 TATIVES  SHALL  SEIZE  ANY  NON-TAX-PAID  VAPOR PRODUCTS, FLAVORED VAPOR
 PRODUCTS, OR FLAVORED NICOTINE ANALOGUE PRODUCTS FOUND IN ANY  PLACE  OF
 BUSINESS  OR  VEHICLE  WHERE  VAPOR  PRODUCTS  ARE  DISTRIBUTED, PLACED,
 STORED, SOLD OR OFFERED FOR SALE BY ANY PERSON WHO DOES  NOT  POSSESS  A
 LICENSE  AS  DESCRIBED  IN SECTION ELEVEN HUNDRED EIGHTY-THREE-A OF THIS
 ARTICLE.
   (D) ALL NON-TAX-PAID  VAPOR  PRODUCTS,  FLAVORED  VAPOR  PRODUCTS,  OR
 FLAVORED  NICOTINE ANALOGUE PRODUCTS SEIZED PURSUANT TO THE AUTHORITY OF
 THIS CHAPTER OR ANY OTHER LAW OF THIS STATE SHALL BE TURNED OVER TO  THE
 DEPARTMENT  OR  ITS  AUTHORIZED REPRESENTATIVE. SUCH SEIZED NON-TAX-PAID
 VAPOR PRODUCTS SHALL, AFTER NOTICE AND AN OPPORTUNITY FOR A HEARING,  BE
 FORFEITED  TO  THE  STATE. IF THE DEPARTMENT DETERMINES THE NON-TAX-PAID
 VAPOR PRODUCTS CANNOT BE USED FOR  LAW  ENFORCEMENT  PURPOSES,  IT  MAY,
 WITHIN A REASONABLE TIME AFTER THE FORFEITURE OF SUCH NON-TAX-PAID VAPOR
 PRODUCTS, UPON PUBLICATION IN THE STATE REGISTRY, DESTROY SUCH FORFEITED
 NON-TAX-PAID VAPOR PRODUCTS.
   (E) WHENEVER A POLICE OFFICER DESIGNATED IN SECTION 1.20 OF THE CRIMI-
 NAL  PROCEDURE  LAW OR A PEACE OFFICER DESIGNATED IN SUBDIVISION FOUR OF
 SECTION 2.10 OF SUCH LAW, ACTING  PURSUANT  TO  SUCH  OFFICER'S  SPECIAL
 DUTIES,  SHALL DISCOVER ANY FLAVORED VAPOR PRODUCTS OR FLAVORED NICOTINE
 ANALOGUE PRODUCTS OFFERED FOR RETAIL SALE IN VIOLATION OF THE PROVISIONS
 IN SECTION THIRTEEN HUNDRED NINETY-NINE-MM-1 OF THE PUBLIC HEALTH LAW OR
 SECTION ELEVEN HUNDRED EIGHTY-THREE-B  OF  THIS  ARTICLE,  RESPECTIVELY,
 SUCH  POLICE OFFICER OR PEACE OFFICER IS HEREBY AUTHORIZED AND EMPOWERED
 FORTHWITH TO SEIZE AND TAKE POSSESSION OF SUCH FLAVORED  VAPOR  PRODUCTS
 OR  FLAVORED NICOTINE ANALOGUE PRODUCTS. SUCH FLAVORED VAPOR PRODUCTS OR
 FLAVORED NICOTINE ANALOGUE PRODUCTS SEIZED BY A POLICE OFFICER OR  PEACE
 OFFICER  SHALL  BE TURNED OVER TO THE COMMISSIONER. SUCH SEIZED FLAVORED
 VAPOR PRODUCTS OR FLAVORED NICOTINE ANALOGUE PRODUCTS SHALL BE FORFEITED
 TO THE STATE.  IF  THE  DEPARTMENT  DETERMINES  THE  VAPOR  PRODUCTS  OR
 FLAVORED  NICOTINE  ANALOGUE PRODUCTS CANNOT BE USED FOR LAW ENFORCEMENT
 PURPOSES, IT MAY, WITHIN A REASONABLE TIME AFTER THE FORFEITURE OF  SUCH
 VAPOR  PRODUCTS  OR  FLAVORED  NICOTINE  ANALOGUE PRODUCTS, DESTROY SUCH
 FORFEITED VAPOR PRODUCTS OR FLAVORED NICOTINE ANALOGUE PRODUCTS.
   § 1184-B. GENERAL POWERS OF THE TAX COMMISSION. THE  POWERS  CONFERRED
 UPON  THE  TAX  COMMISSION  BY  SECTIONS ONE HUNDRED SEVENTY-ONE AND ONE
 HUNDRED SEVENTY-ONE-B OF THIS CHAPTER SHALL, SO FAR  AS  APPLICABLE,  BE
 EXERCISABLE WITH RESPECT TO THE PROVISIONS OF THIS ARTICLE. SUCH COMMIS-
 SION  MAY REQUIRE RETURNS TO BE FILED WITH IT AT SUCH TIMES AND CONTAIN-
 ING SUCH INFORMATION AS IT MAY PRESCRIBE AND IN SUCH EVENT THE FACT THAT
 A PERSON'S NAME IS SIGNED TO THE RETURN SHALL BE  PRIMA  FACIE  EVIDENCE
 FOR  ALL  PURPOSES  THAT  THE RETURN WAS ACTUALLY SIGNED BY SUCH PERSON.
 NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THE TAX  COMMISSION
 MAY ENTER INTO AN AGREEMENT WITH ANY CITY OF THIS STATE WHICH IS AUTHOR-
 IZED  TO IMPOSE A TAX SIMILAR TO THAT IMPOSED BY THIS ARTICLE TO PROVIDE
 FOR THE JOINT ADMINISTRATION, IN WHOLE OR IN PART, OF SUCH TAXES.
   § 6. This act shall take effect immediately.
 S. 3009--B                         107
 
                                  PART PP
 
   Section 1. The tax law is amended by adding a new article 12-B to read
 as follows:
                               ARTICLE 12-B
                        NOISE TAX ON NON-ESSENTIAL
                      HELICOPTER AND SEAPLANE FLIGHTS
 SECTION 289-G. DEFINITIONS.
         289-H. IMPOSITION  OF  THE NOISE TAX ON NON-ESSENTIAL HELICOPTER
                  AND SEAPLANE FLIGHTS.
         289-I. LIABILITY FOR THE TAX.
         289-J. EXEMPTIONS FROM THE TAX.
         289-K. PAYMENT AND RETURNS.
         289-L. RECORDS TO BE KEPT.
         289-M. SECRECY OF RETURNS AND REPORTS.
         289-N. PRACTICE AND PROCEDURE.
         289-O. DEPOSIT AND DISPOSITION OF REVENUE.
   § 289-G. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "HELICOPTER" MEANS AN AIRCRAFT, THE SUPPORT OF WHICH IN THE AIR IS
 NORMALLY DERIVED FROM AIRFOILS MECHANICALLY ROTATED  ABOUT  AN  APPROXI-
 MATELY VERTICAL AXIS.
   2.  "HELICOPTER  OR  SEAPLANE OPERATOR" MEANS A PERSON OR ENTITY WHICH
 CONDUCTS NON-ESSENTIAL HELICOPTER OR SEAPLANE FLIGHTS WITHIN A CITY WITH
 A POPULATION OF ONE MILLION OR MORE.
   3. "SEAPLANE" MEANS ANY AIRCRAFT DEFINED  OR  CLASSIFIED  AS  SUCH  BY
 FEDERAL LAW, RULE OR REGULATION.
   4. "NON-ESSENTIAL FLIGHT" MEANS A FLIGHT MADE BY A HELICOPTER OR SEAP-
 LANE OTHER THAN THOSE CONDUCTED:
   (A)  FOR  PURPOSES OF HEAVY-LIFT OPERATIONS IN SUPPORT OF CONSTRUCTION
 AND INFRASTRUCTURE MAINTENANCE;
   (B) FOR PURPOSES OF PUBLIC HEALTH AND SAFETY, INCLUDING  LAW  ENFORCE-
 MENT,  EMERGENCY  RESPONSE,  DISASTER RESPONSE, THE PROVISION OF MEDICAL
 SERVICES, AND PROVIDING OTHER SERVICES; OR
   (C) FOR THE BENEFIT OF THE GENERAL PUBLIC, INCLUDING  FLIGHTS  CARRIED
 OUT FOR RESEARCH OR FOR OFFICIAL PURPOSES BY A NEWS ORGANIZATION.
   5. "QUIET AIRCRAFT" MEANS A HELICOPTER OR SEAPLANE OF A MODEL THAT HAS
 BEEN  CERTIFIED  AS  MEETING  THE  THRESHOLD TO BE CLASSIFIED AS A QUIET
 AIRCRAFT AS PER SECTION TWO HUNDRED EIGHTY-NINE-J OF THIS ARTICLE.
   § 289-H. IMPOSITION OF THE NOISE TAX ON NON-ESSENTIAL  HELICOPTER  AND
 SEAPLANE FLIGHTS.  IN ADDITION TO ANY OTHER TAX OR ASSESSMENT IMPOSED BY
 THIS CHAPTER OR ANY OTHER LAW, THERE IS HEREBY IMPOSED BEGINNING JANUARY
 FIRST,  TWO  THOUSAND  TWENTY-FIVE A NOISE TAX ON NON-ESSENTIAL SEAPLANE
 AND HELICOPTER FLIGHTS AT THE RATE OF FIFTY DOLLARS PER SEAT  TICKET  OR
 TWO HUNDRED DOLLARS PER FLIGHT, WHICHEVER IS GREATER.
   § 289-I. LIABILITY FOR THE TAX.  ANY NON-ESSENTIAL HELICOPTER OR SEAP-
 LANE  FLIGHT  IS  SUBJECT  TO  THE  TAX IMPOSED BY THIS ARTICLE. THE TAX
 IMPOSED BY THIS SECTION SHALL NOT BE IMPOSED ON ANY HELICOPTER OR  SEAP-
 LANE  FLIGHTS  IF  SUCH IMPOSITION IS SUPERSEDED BY FEDERAL LAW OR REGU-
 LATION.
   § 289-J. EXEMPTIONS FROM THE TAX. 1. ANY NON-ESSENTIAL  HELICOPTER  OR
 SEAPLANE  FLIGHT  CONDUCTED  USING A QUIET AIRCRAFT IS EXEMPTED FROM THE
 TAX IMPOSED BY SECTION TWO HUNDRED EIGHTY-NINE-H OF THIS ARTICLE.
   2. THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF  TRANSPORTA-
 TION SHALL CREATE A REGISTRY OF MODELS OF HELICOPTERS AND SEAPLANES THAT
 WILL BE DEFINED AS QUIET AIRCRAFT FOR THE PURPOSES OF THIS ARTICLE. SUCH
 S. 3009--B                         108
 
 REGISTRY SHALL BE ESTABLISHED BY JANUARY FIRST, TWO THOUSAND TWENTY-SEV-
 EN, AND SHALL BE UPDATED NO LESS THAN EVERY TWO YEARS.
   3.  FOR  A HELICOPTER OR SEAPLANE MODEL TO BE CONSIDERED TO BE A QUIET
 AIRCRAFT, THE AIRCRAFT MUST BE ELECTRIC POWERED AND,  (A)  FOR  HELICOP-
 TERS,  CREATE AT LEAST TEN DECIBELS LESS OF NOISE, AS MEASURED UNDER THE
 PROCEDURES OF APPENDIX H OF 14 CFR PART 36, AS A HELICOPTER  THAT  WOULD
 MEET  THE  GCNP  QUIET AIRCRAFT TECHNOLOGY DESIGNATION ESTABLISHED BY 14
 CFR APPENDIX A TO SUBPART U OF PART 93, OR ANY FEDERAL LIMITS  ON  NOISE
 FROM  HELICOPTERS  ENACTED  THAT  ARE  MORE STRICT THAN THE GCNP   QUIET
 AIRCRAFT TECHNOLOGY DESIGNATION AND (B) FOR SEAPLANES, CREATE  AT  LEAST
 TEN DECIBELS LESS OF NOISE, AS MEASURED UNDER THE PROCEDURES OF APPENDIX
 G OF 14 CFR PART 36, THAN A SEAPLANE WOULD MAKE TO COMPLY WITH THE STAGE
 5  NOISE LEVELS ADOPTED UNDER 14 CFR PARTS 36 AND 91, WHICH ARE EQUAL TO
 THE LEVELS ESTABLISHED UNDER INTERNATIONAL CIVIL  AVIATION  ORGANIZATION
 (ICAO)  CHAPTER 14 OF ANNEX 16, VOLUME I, OR ANY FEDERAL LIMITS ON NOISE
 FROM SEAPLANES ENACTED THAT ARE MORE  STRICT  THAN  THE  STAGE  5  NOISE
 LEVELS.
   §  289-K. PAYMENT AND RETURNS. 1. EVERY HELICOPTER AND SEAPLANE OPERA-
 TOR SHALL FILE A RETURN QUARTERLY  WITH  THE  COMMISSIONER.    PROVIDED,
 HOWEVER,  THAT  IF  THE COMMISSIONER IN THE EXERCISE OF THEIR DISCRETION
 DEEMS IT NECESSARY TO PROTECT THE REVENUES TO  BE  OBTAINED  UNDER  THIS
 ARTICLE,  SUCH  COMMISSIONER MAY GIVE NOTICE REQUIRING SUCH OPERATOR, IN
 ADDITION TO FILING A QUARTERLY RETURN,  TO  FILE  EITHER  SHORT-FORM  OR
 LONG-FORM  PART-QUARTERLY  RETURNS,  AS  SPECIFIED  IN  SUCH NOTICE. FOR
 PURPOSES OF THIS ARTICLE THE  TERM  "LONG-FORM,  PART-QUARTERLY  RETURN"
 SHALL  MEAN  A RETURN IN A FORM DETERMINED BY THE COMMISSIONER PROVIDING
 FOR THE CALCULATION OF THE ACTUAL TAXES FOR  THE  PRECEDING  MONTH.  FOR
 PURPOSES  OF  THIS  ARTICLE THE TERM "SHORT-FORM, PART-QUARTERLY RETURN"
 SHALL MEAN A RETURN WHICH SHALL BE AVAILABLE FOR  USE  IN  FILING  AS  A
 RETURN  FOR  THE  FIRST  TWO  MONTHS OF ANY QUARTER AND ONLY BY A PERSON
 REQUIRED TO FILE A RETURN MONTHLY WHO HAS HAD AT LEAST  FOUR  SUCCESSIVE
 QUARTERLY  TAX  PERIODS  IMMEDIATELY  PRECEDING  THE MONTH FOR WHICH THE
 RETURN IS TO BE FILED AND WHO ELECTS SUCH USE, AND IS IN A  FORM  DETER-
 MINED BY THE COMMISSIONER AND PROVIDING FOR THE CALCULATION OF ONE-THIRD
 OF  THE TOTAL TAXES PAID BY THE PERSON TO THE COMMISSIONER IN THE COMPA-
 RABLE QUARTER OF THE IMMEDIATELY PRECEDING YEAR UNDER THIS ARTICLE.
   2. THE RETURNS AND INFORMATION RETURNS REQUIRED BY THIS SECTION TO  BE
 FILED  QUARTERLY SHALL BE FILED FOR QUARTERLY PERIODS ENDING ON THE LAST
 DAY OF FEBRUARY, MAY, AUGUST AND NOVEMBER OF EACH YEAR, AND EACH  RETURN
 AND  EACH INFORMATION RETURN SHALL BE FILED WITHIN TWENTY DAYS AFTER THE
 END OF THE QUARTERLY PERIOD COVERED THEREBY.  THE  RETURNS  REQUIRED  BY
 THIS  SECTION  TO  BE  FILED  MONTHLY SHALL BE FILED FOR MONTHLY PERIODS
 ENDING ON THE LAST DAY OF EACH MONTH AND  EACH  RETURN  SHALL  BE  FILED
 WITHIN  TWENTY  DAYS  AFTER THE END OF EACH PRIOR MONTH. THE INFORMATION
 RETURNS REQUIRED TO BE FILED ANNUALLY SHALL BE  FILED  FOR  TWELVE-MONTH
 PERIODS ENDING ON THE LAST DAY OF MAY OF EACH YEAR, AND EACH SUCH INFOR-
 MATION  RETURN  SHALL  BE  FILED WITHIN TWENTY DAYS AFTER THE END OF THE
 TWELVE-MONTH PERIOD COVERED THEREBY.
   3. THE TAX COMMISSION MAY PERMIT OR REQUIRE RETURNS TO BE MADE  COVER-
 ING  OTHER  PERIODS  AND  UPON  SUCH DATES AS IT MAY SPECIFY. IF THE TAX
 COMMISSION DEEMS IT NECESSARY IN ORDER TO  ENSURE  THE  PAYMENT  OF  THE
 TAXES  IMPOSED  BY  THIS  ARTICLE, IT MAY REQUIRE RETURNS TO BE MADE FOR
 SHORTER PERIODS THAN THOSE PRESCRIBED PURSUANT TO THE FOREGOING SUBDIVI-
 SIONS OF THIS SECTION, AND UPON SUCH DATES AS IT MAY SPECIFY.
   4. THE FORM OF RETURNS SHALL BE PRESCRIBED BY THE TAX  COMMISSION  AND
 SHALL  CONTAIN  SUCH INFORMATION AS IT MAY DEEM NECESSARY FOR THE PROPER
 S. 3009--B                         109
 
 ADMINISTRATION OF THIS  ARTICLE.  THE  COMMISSION  MAY  REQUIRE  AMENDED
 RETURNS  TO  BE FILED WITHIN TWENTY DAYS AFTER NOTICE AND TO CONTAIN THE
 INFORMATION SPECIFIED IN THE NOTICE.
   5.  IN  ADDITION  TO  ANY OTHER PENALTY OR INTEREST PROVIDED FOR UNDER
 THIS ARTICLE OR OTHER LAW, AND UNLESS IT IS SHOWN THAT SUCH  FAILURE  IS
 DUE  TO  REASONABLE  CAUSE  AND  NOT  DUE TO WILLFUL NEGLECT, ANY PERSON
 LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE THAT FAILS TO  PAY  SUCH  TAX
 WHEN  DUE  SHALL  BE  LIABLE  FOR  A  PENALTY IN AN AMOUNT EQUAL TO FOUR
 HUNDRED PERCENT OF THE TOTAL TAX AMOUNT THAT IS DUE.
   § 289-L. RECORDS TO BE KEPT. EVERY OPERATOR LIABLE FOR  THE  SURCHARGE
 IMPOSED  BY THIS ARTICLE SHALL KEEP, AND SHALL MAKE AVAILABLE FOR REVIEW
 UPON DEMAND BY THE COMMISSIONER:
   1. RECORDS OF HELICOPTER AND SEAPLANE FLIGHTS UNDERTAKEN BY SUCH OPER-
 ATOR;
   2. TOTAL AMOUNT OF TAXES COLLECTED UNDER THIS ARTICLE;
   3. ANY INFORMATION REQUIRED BY THE DEPARTMENT BY RULE OR REGULATION;
   4. TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY  ANY
 APPLICABLE REGULATORY DEPARTMENT OR AGENCY; AND
   5.  SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
 TO PERFORM THEIR DUTIES UNDER THIS ARTICLE.
   § 289-M. SECRECY OF RETURNS AND REPORTS. 1. EXCEPT IN ACCORDANCE  WITH
 PROPER  JUDICIAL  ORDER  OR  AS  OTHERWISE  PROVIDED BY LAW, IT SHALL BE
 UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE  OF  THE  DEPART-
 MENT, ANY PERSON ENGAGED OR RETAINED BY THE DEPARTMENT ON AN INDEPENDENT
 CONTRACT BASIS, OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF
 THE  CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER PURSUANT
 TO THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY  PARTICULARS
 SET  FORTH  OR  DISCLOSED  IN  ANY  SUCH  RETURN OR REPORT. THE OFFICERS
 CHARGED WITH THE CUSTODY OF  SUCH  RETURNS  AND  REPORTS  SHALL  NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COMMISSIONER  IN  AN  ACTION  OR PROCEEDING UNDER THE PROVISIONS OF THIS
 CHAPTER, OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING  THE  COLLECTION
 OF  A  SURCHARGE  DUE UNDER THIS CHAPTER TO WHICH THE STATE, THE COMMIS-
 SIONER OR AN AGENCY  THAT  IS  AUTHORIZED  TO  PERMIT  OR  REGULATE  THE
 PROVISION OF ANY RELEVANT TRANSPORTATION IS A PARTY OR A CLAIMANT, OR ON
 BEHALF  OF  ANY  PARTY  TO  ANY  ACTION, PROCEEDING OR HEARING UNDER THE
 PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS
 SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION, PROCEEDING OR  HEAR-
 ING,  IN ANY OF WHICH EVENTS THE COURT, OR IN THE CASE OF A HEARING, THE
 DIVISION OF TAX APPEALS, MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN
 EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
 BY AS ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO  MORE.    NOTHING
 HEREIN  SHALL  BE  CONSTRUED,  HOWEVER, TO PROHIBIT THE COMMISSIONER, IN
 THEIR DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF  A  CERTI-
 FIED  COPY  OF  ANY  RETURN  OR REPORT FILED UNDER THIS ARTICLE, OR FROM
 PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY  OR
 TO  A  DULY  AUTHORIZED  OFFICER  OR EMPLOYEE OF THE COMPTROLLER; NOR TO
 PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR
 REPORT FILED UNDER THIS ARTICLE, OR THE  PROVISION  OF  ANY  INFORMATION
 CONTAINED  THEREIN,  BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE-
 SENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE  BEEN  RECOMMENDED  OR
 COMMENCED  PURSUANT  TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR
 THE FACTS SHOWN THEREBY ARE  DIRECTLY  INVOLVED;  NOR  TO  PROHIBIT  THE
 COMMISSIONER  FROM  PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR
 THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER  THIS
 S. 3009--B                         110
 
 ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER-
 EFROM;  NOR  TO  PROHIBIT  THE  DELIVERY  TO A PERSON LIABLE FOR THE TAX
 IMPOSED BY THIS ARTICLE, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH,  A
 CERTIFIED  COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO
 THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS  SO  CLASSI-
 FIED  AS  TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS
 AND THE ITEMS THEREOF; NOR TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS
 THE COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND  OTHER  APPROPRIATE
 IDENTIFYING INFORMATION OF THOSE PERSONS REQUIRED TO PAY THE TAX IMPOSED
 BY THIS ARTICLE.
   2.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
 THE COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE  UNITED
 STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF
 EITHER  SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR
 MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED  REPRESENTATIVE
 AN  ABSTRACT  OF  ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION
 CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN,  OR  DISCLOSED  BY  ANY
 INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL
 BE  GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE UNITED
 STATES GRANT SUBSTANTIALLY SIMILAR PRIVILEGES  TO  THE  COMMISSIONER  OR
 OFFICER OF THIS STATE CHARGED WITH THE ADMINISTRATION OF THE TAX IMPOSED
 BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED FOR PURPOSES
 OF  TAX  ADMINISTRATION  ONLY; AND PROVIDED FURTHER THE COMMISSIONER MAY
 FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE OR  SUCH  COMMISSIONER'S
 AUTHORIZED  REPRESENTATIVE  SUCH  RETURNS  FILED  UNDER THIS ARTICLE AND
 OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSIDER PROPER, FOR USE
 IN COURT ACTIONS OR PROCEEDINGS UNDER THE INTERNAL REVENUE CODE, WHETHER
 CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST THEREFOR HAS BEEN MADE TO THE
 COMMISSIONER BY THE SECRETARY OF THE TREASURY OF THE  UNITED  STATES  OR
 SUCH  SECRETARY'S DELEGATE, PROVIDED THE LAWS OF THE UNITED STATES GRANT
 SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF  THE  TREASURY  OF  THE
 UNITED  STATES  OR THEIR DELEGATE. WHERE THE COMMISSIONER HAS SO AUTHOR-
 IZED  USE  OF  RETURNS  AND  OTHER  INFORMATION  IN  SUCH   ACTIONS   OR
 PROCEEDINGS,  OFFICERS  AND  EMPLOYEES  OF THE DEPARTMENT MAY TESTIFY IN
 SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR OTHER INFORMA-
 TION.
   3. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL  BE  DISMISSED  FROM
 OFFICE  AND  BE  INCAPABLE  OF HOLDING ANY PUBLIC OFFICE FOR A PERIOD OF
 FIVE YEARS THEREAFTER.
   (B) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE  THIRTY-SEVEN
 OF THIS CHAPTER.
   4.  (A)  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION ONE OF THIS
 SECTION, UPON WRITTEN REQUEST FROM THE CHAIRPERSON OF THE  COMMITTEE  ON
 WAYS AND MEANS OF THE UNITED STATES HOUSE OF REPRESENTATIVES, THE CHAIR-
 PERSON  OF  THE COMMITTEE ON FINANCE OF THE UNITED STATES SENATE, OR THE
 CHAIRPERSON OF THE JOINT COMMITTEE ON  TAXATION  OF  THE  UNITED  STATES
 CONGRESS, THE COMMISSIONER SHALL FURNISH SUCH COMMITTEE WITH ANY CURRENT
 OR  PRIOR  YEAR  RETURNS SPECIFIED IN SUCH REQUEST THAT WERE FILED UNDER
 THIS ARTICLE BY THE PRESIDENT OF THE UNITED  STATES,  VICE-PRESIDENT  OF
 THE UNITED STATES, MEMBER OF THE UNITED STATES CONGRESS REPRESENTING NEW
 YORK STATE, OR ANY PERSON WHO SERVED IN OR WAS EMPLOYED BY THE EXECUTIVE
 BRANCH  OF THE GOVERNMENT OF THE UNITED STATES ON THE EXECUTIVE STAFF OF
 THE PRESIDENT, IN THE EXECUTIVE OFFICE OF THE PRESIDENT, OR IN AN ACTING
 OR CONFIRMED CAPACITY IN A  POSITION  SUBJECT  TO  CONFIRMATION  BY  THE
 UNITED  STATES  SENATE; OR, IN NEW YORK STATE: A STATEWIDE ELECTED OFFI-
 S. 3009--B                         111
 
 CIAL, AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF  SECTION  SEVEN-
 TY-THREE-A  OF  THE PUBLIC OFFICERS LAW; A STATE OFFICER OR EMPLOYEE, AS
 DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH (C) OF SUBDIVISION ONE OF  SUCH
 SECTION  SEVENTY-THREE-A;  A  POLITICAL PARTY CHAIRPERSON, AS DEFINED IN
 PARAGRAPH (H) OF SUBDIVISION ONE  OF  SUCH  SECTION  SEVENTY-THREE-A;  A
 LOCAL  ELECTED  OFFICIAL,  AS  DEFINED  IN  SUBDIVISIONS  ONE AND TWO OF
 SECTION EIGHT HUNDRED  TEN  OF  THE  GENERAL  MUNICIPAL  LAW;  A  PERSON
 APPOINTED,  PURSUANT TO LAW, TO SERVE DUE TO VACANCY OR OTHERWISE IN THE
 POSITION OF A LOCAL ELECTED OFFICIAL, AS DEFINED IN SUBDIVISIONS ONE AND
 TWO OF SECTION EIGHT HUNDRED TEN OF THE GENERAL MUNICIPAL LAW; A  MEMBER
 OF  THE  STATE  LEGISLATURE;  OR A JUDGE OR JUSTICE OF THE UNIFIED COURT
 SYSTEM; OR FILED  BY  A  PARTNERSHIP,  FIRM,  ASSOCIATION,  CORPORATION,
 JOINT-STOCK  COMPANY,  TRUST  OR  SIMILAR  ENTITY DIRECTLY OR INDIRECTLY
 CONTROLLED BY ANY  INDIVIDUAL  LISTED  IN  THIS  PARAGRAPH,  WHETHER  BY
 CONTRACT,  THROUGH  OWNERSHIP  OR CONTROL OF A MAJORITY INTEREST IN SUCH
 ENTITY, OR OTHERWISE, OR FILED  BY  A  PARTNERSHIP,  FIRM,  ASSOCIATION,
 CORPORATION,  JOINT-STOCK  COMPANY, TRUST OR SIMILAR ENTITY OF WHICH ANY
 INDIVIDUAL LISTED IN THIS PARAGRAPH HOLDS TEN PERCENT  OR  MORE  OF  THE
 VOTING  SECURITIES  OF  SUCH  ENTITY;  PROVIDED  HOWEVER  THAT, PRIOR TO
 FURNISHING ANY RETURN, THE COMMISSIONER  SHALL  REDACT  ANY  COPY  OF  A
 FEDERAL RETURN (OR PORTION THEREOF) ATTACHED TO, OR ANY INFORMATION ON A
 FEDERAL RETURN THAT IS REFLECTED ON, SUCH RETURN, AND ANY SOCIAL SECURI-
 TY NUMBERS, ACCOUNT NUMBERS AND RESIDENTIAL ADDRESS INFORMATION.
   (B)  NO RETURNS SHALL BE FURNISHED PURSUANT TO THIS SUBDIVISION UNLESS
 THE CHAIRPERSON OF THE REQUESTING COMMITTEE CERTIFIES  IN  WRITING  THAT
 SUCH  RETURNS  HAVE  BEEN REQUESTED RELATED TO, AND IN FURTHERANCE OF, A
 LEGITIMATE TASK OF THE CONGRESS, THAT THE REQUESTING COMMITTEE HAS  MADE
 A  WRITTEN  REQUEST  TO  THE UNITED STATES SECRETARY OF THE TREASURY FOR
 RELATED FEDERAL RETURNS OR REPORTS  OR  RETURN  OR  REPORT  INFORMATION,
 PURSUANT  TO  26  U.S.C.  SECTION  6103(F),  AND  THAT IF SUCH REQUESTED
 RETURNS ARE INSPECTED BY AND/OR SUBMITTED TO ANOTHER COMMITTEE,  TO  THE
 UNITED  STATES HOUSE OF REPRESENTATIVES, OR TO THE UNITED STATES SENATE,
 THEN SUCH INSPECTION AND/OR SUBMISSION SHALL OCCUR IN A MANNER  CONSIST-
 ENT  WITH  FEDERAL  LAW  AS  INFORMED BY THE REQUIREMENTS AND PROCEDURES
 ESTABLISHED IN 26 U.S.C. SECTION 6103(F).
   § 289-N. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEV-
 EN OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE ADMINISTRATION OF AND
 PROCEDURE WITH RESPECT TO THE TAX IMPOSED BY THIS ARTICLE  IN  THE  SAME
 MANNER  AND  WITH  THE  SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH
 ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND
 HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE,  EXCEPT
 TO  THE  EXTENT  THAT  ANY  SUCH PROVISION IS EITHER INCONSISTENT WITH A
 PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   § 289-O. DEPOSIT AND DISPOSITION OF REVENUE. ALL FUNDS COLLECTED UNDER
 THIS ARTICLE SHALL BE DEPOSITED INTO THE ENVIRONMENTAL  PROTECTION  FUND
 ESTABLISHED BY SECTION NINETY-TWO-S OF THE STATE FINANCE LAW.
   § 2. This act shall take effect immediately.
 
                                  PART QQ
 
   Section  1.  The tax law is amended by adding a new section 50 to read
 as follows:
   § 50. WORK OPPORTUNITY TAX CREDIT. (A) GENERAL. A TAXPAYER SUBJECT  TO
 TAX  UNDER  ARTICLE  NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER
 SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN  AMOUNT  EQUAL  TO  ONE
 HUNDRED  PERCENT  OF  THE  CREDIT  THAT IS ALLOWED TO THE TAXPAYER UNDER
 S. 3009--B                         112
 
 SECTION 51 OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE  TO  QUALI-
 FIED  WAGES  PAID  TO  A NEW YORK RESIDENT WHO IS A MEMBER OF A TARGETED
 GROUP AND FOR WHOM A CERTIFICATE TO THAT EFFECT HAS BEEN ISSUED  BY  THE
 DEPARTMENT OF LABOR.
   (B)  DEFINITIONS.  THE  TERMS  "QUALIFIED  WAGES" AND "TARGETED GROUP"
 SHALL HAVE THE SAME MEANINGS AS IN SECTION 51 OF  THE  INTERNAL  REVENUE
 CODE.
   (C)  EFFECT  ON  OTHER TAX CREDITS.   WAGES WHICH ARE THE BASIS OF THE
 CREDIT UNDER THIS SECTION SHALL NOT BE USED AS THE BASIS FOR  ANY  OTHER
 CREDIT ALLOWED UNDER THIS CHAPTER.
   (D)  LIMIT ON TAX CREDITS ISSUED. OVER THE LIFETIME OF THE TAX CREDIT,
 THE TOTAL AMOUNT OF TAX CREDITS PROVIDED FOR UNDER  THIS  SECTION  SHALL
 NOT EXCEED FIFTEEN MILLION DOLLARS IN TOTAL, OR FIVE MILLION DOLLARS FOR
 EACH TAXABLE YEAR.
   (E)  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 61;
   (2) ARTICLE 22: SECTION 606, SUBSECTION (BBB);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (FF).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 61 to read as follows:
   61.  WORK  OPPORTUNITY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  FIFTY
 OF  THIS  CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.  SUCH CREDIT
 SHALL NOT EXCEED FIVE HUNDRED DOLLARS PER ELIGIBLE EMPLOYEE PER YEAR  IN
 ANY GIVEN TAX YEAR.
   (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  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 WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED  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.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (bbb) to read as follows:
   (BBB) WORK OPPORTUNITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FIFTY
 OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.   SUCH  CREDIT
 SHALL  NOT EXCEED FIVE HUNDRED DOLLARS PER ELIGIBLE EMPLOYEE PER YEAR IN
 ANY GIVEN TAX YEAR.
   (2) APPLICATION OF CREDIT. 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.
   § 4. Section 1511 of the tax law is amended by adding a  new  subdivi-
 sion (ff) to read as follows:
   (FF) WORK OPPORTUNITY TAX CREDIT. (1) ALLOWANCE OF CREDIT.  A TAXPAYER
 SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FIFTY
 OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.   SUCH  CREDIT
 S. 3009--B                         113
 
 SHALL  NOT EXCEED FIVE HUNDRED DOLLARS PER ELIGIBLE EMPLOYEE PER YEAR IN
 ANY GIVEN TAX YEAR.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE 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 THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAXPAYER'S  TAX  TO  SUCH
 AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE CREDITED 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.
   § 5. This act shall take effect April 1, 2026 and shall apply to taxa-
 ble  years  beginning  on  and  after January 1, 2026 and shall apply to
 wages paid to individuals hired on and after  such  effective  date  and
 shall expire and be deemed repealed December 31, 2028.
 
                                  PART RR

   Section  1.  Clause  (iv)  of  subparagraph  (A)  of  paragraph  5  of
 subsection (pp) of section 606 of the tax law, as amended by section 3-a
 of part U of chapter 59 of the laws of  2019,  is  amended  to  read  as
 follows:
   (iv) (1) which is in whole or in part a targeted area residence within
 the  meaning  of  section 143(j) of the internal revenue code; or (2) is
 located within a census tract which is identified as being at  or  below
 one hundred percent of the state median family income in the most recent
 federal  census;  or (3) which is located in a city with a population of
 less than one million with a poverty rate greater than fifteen  percent,
 rounded  to the nearest whole number, in the most recent five year esti-
 mate from the American community survey published by the  United  States
 census  bureau;  OR  (4)  IS LOCATED IN A CITY WITH A POPULATION GREATER
 THAN ONE MILLION, IN A QUALIFYING CENSUS TRACT AS OF JANUARY FIRST,  TWO
 THOUSAND SEVENTEEN, AND WAS OWNED BY THE APPLICANT ON JANUARY FIRST, TWO
 THOUSAND TEN.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2026.
 
                                  PART SS
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 1 of subpart A of part
 I of chapter 59 of the laws of 2023, is amended to read as follows:
   For  taxable  years  beginning  before  January  first,  two  thousand
 sixteen,  the  amount  prescribed by this paragraph shall be computed at
 the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
 income  base. For taxable years beginning on or after January first, two
 thousand sixteen, the amount prescribed by this paragraph shall  be  six
 and one-half percent of the taxpayer's business income base. For taxable
 years  beginning  on or after January first, two thousand twenty-one and
 before January first, two thousand [twenty-seven]  TWENTY-FIVE  for  any
 taxpayer  with  a business income base for the taxable year of more than
 five million dollars, the amount prescribed by this paragraph  shall  be
 seven  and  one-quarter  percent of the taxpayer's business income base.
 FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
 S. 3009--B                         114
 
 TWENTY-FIVE  AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND THIRTY, FOR ANY
 TAXPAYER WITH A BUSINESS INCOME BASE FOR THE TAXABLE YEAR OF  MORE  THAN
 FIVE  MILLION  DOLLARS, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE
 NINE  PERCENT  OF  THE  TAXPAYER'S  BUSINESS INCOME BASE. The taxpayer's
 business income base shall mean the portion of the  taxpayer's  business
 income  apportioned  within the state as hereinafter provided.  However,
 in the case of a small business taxpayer, as defined in paragraph (f) of
 this subdivision, the amount  prescribed  by  this  paragraph  shall  be
 computed pursuant to subparagraph (iv) of this paragraph and in the case
 of  a  manufacturer,  as defined in subparagraph (vi) of this paragraph,
 the amount prescribed by this paragraph shall be  computed  pursuant  to
 subparagraph  (vi)  of  this  paragraph, and, in the case of a qualified
 emerging technology company, as defined in subparagraph  (vii)  of  this
 paragraph,  the  amount  prescribed  by this paragraph shall be computed
 pursuant to subparagraph (vii) of this paragraph.
   § 2. This act shall take effect immediately.
 
                                  PART TT
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "End Hedge Fund Control of New York Homes Act".
   §  2.  The  tax law is amended by adding a new article 20-E to read as
 follows:
                               ARTICLE 20-E
                  EXCISE TAX ON CERTAIN TAXPAYERS FAILING
                  TO SELL EXCESS SINGLE-FAMILY RESIDENCES
 SECTION 500. DEFINITIONS.
         500-A. IMPOSITION OF TAX.
         500-B. MAXIMUM PERMISSIBLE UNITS.
         500-C. CONSTRUCTION.
         500-D. REPORTING.
         500-E. TAX FORM.
         500-F. CERTIFICATION.
         500-G. USE OF TAX REVENUES.
   § 500. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING  DEFI-
 NITIONS SHALL APPLY:
   1. "APPLICABLE DATE" MEANS:
   (A) THE LAST DAY OF THE FIRST FULL TAXABLE YEAR ENDING ON OR AFTER THE
 EFFECTIVE DATE OF THIS ARTICLE; OR
   (B) IN THE CASE OF ANY TAXPAYER THAT CHANGES ITS STATUS DURING A TAXA-
 BLE  YEAR,  THE  LAST  DAY OF THE TAXABLE YEAR IMMEDIATELY PRECEDING THE
 TAXABLE YEAR IN WHICH THE TAXPAYER CHANGED ITS STATUS.
   2."APPLICABLE SINGLE-FAMILY RESIDENCE" MEANS ANY  SINGLE-FAMILY  RESI-
 DENCE WHICH WAS ACQUIRED ON OR BEFORE THE APPLICABLE DATE.
   3.  (A)  "APPLICABLE  TAXPAYER" MEANS A TAXPAYER, INCLUDING A PARTNER-
 SHIP, CORPORATION, TRUST OR OTHER LEGAL ENTITY, THAT:
   (I) MANAGES FUNDS POOLED  FROM  INVESTORS  AND  IS  A  FIDUCIARY  WITH
 RESPECT TO SUCH INVESTORS; AND
   (II) IS AN ASSET MANAGER IN ANY OF THE FOLLOWING ASSET CLASSES:
   (A) PUBLIC EQUITY OR FIXED INCOME SECURITIES;
   (B) A HEDGE FUND;
   (C) A FUND OF HEDGE FUNDS;
   (D) PRIVATE EQUITY (INCLUDING VENTURE CAPITAL);
   (E) A FUND OF PRIVATE EQUITY FUNDS;
   (F) A REAL ESTATE INVESTMENT FUND;
   (G) A FUND OF REAL ESTATE FUNDS; OR
 S. 3009--B                         115

   (H) ANY OTHER ASSET CLASS FOR WHICH AN APPLICABLE FIDUCIARY-CONTROLLED
 ENTITY ENGAGES EXTERNAL ASSET MANAGERS; AND
   (III)  THAT  HAS  FIFTY MILLION DOLLARS OR MORE IN NET VALUE OR ASSETS
 UNDER MANAGEMENT ON ANY DAY DURING THE TAXABLE YEAR.
   (B) "APPLICABLE TAXPAYER" SHALL NOT INCLUDE:
   (I) AN ORGANIZATION WHICH IS DESCRIBED IN SECTION 501(C)(3) AND EXEMPT
 FROM TAX UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE; OR
   (II) AN ORGANIZATION PRIMARILY ENGAGED IN THE CONSTRUCTION OR REHABIL-
 ITATION OF SINGLE-FAMILY RESIDENCES.
   4. "DISQUALIFIED SALE" MEANS ANY SALE OR TRANSFER OF  A  SINGLE-FAMILY
 RESIDENCE TO:
   (A) A CORPORATION OR OTHER ENTITY ENGAGED IN A TRADE OR BUSINESS; OR
   (B)  AN  INDIVIDUAL  WHO OWNS ANY OTHER SINGLE-FAMILY RESIDENCE AT THE
 TIME OF SUCH SALE OR TRANSFER.
   5. "NEWLY ACQUIRED SINGLE-FAMILY RESIDENCE"  MEANS  ANY  SINGLE-FAMILY
 RESIDENCE  WHICH  WAS ACQUIRED BY THE TAXPAYER IN ANY TAXABLE YEAR WHICH
 BEGINS AFTER THE EFFECTIVE DATE OF THIS ARTICLE.
   6. "SINGLE-FAMILY RESIDENCE" MEANS A RESIDENTIAL  PROPERTY  CONSISTING
 OF  ONE  TO  FOUR  DWELLING  UNITS;  PROVIDED  THAT  SUCH TERM SHALL NOT
 INCLUDE:
   (A) ANY UNOCCUPIED SINGLE-FAMILY RESIDENCE ACQUIRED  THROUGH  FORECLO-
 SURE;
   (B) ANY SINGLE-FAMILY RESIDENCE THAT IS:
   (I) NOT RENTED OR LEASED, AND
   (II)  USED  AS THE PRINCIPAL RESIDENCE OF ANY PERSON WHO HAS AN OWNER-
 SHIP INTEREST IN THE APPLICABLE TAXPAYER; OR
   (C) ANY SINGLE-FAMILY RESIDENCE  CONSTRUCTED,  ACQUIRED,  OR  OPERATED
 WITH FEDERAL APPROPRIATED FUNDING SOURCES.
   7.  "TRADE  OR BUSINESS" SHALL INCLUDE ANY ACTIVITY TREATED AS A TRADE
 OR BUSINESS UNDER PARAGRAPH (5) OR (6) OF SECTION 469(C) OF THE INTERNAL
 REVENUE CODE (DETERMINED WITHOUT REGARD TO THE  PHRASE  'TO  THE  EXTENT
 PROVIDED IN REGULATIONS' IN SUCH PARAGRAPH (6)).
   §  500-A. IMPOSITION OF TAX. 1. IN THE CASE OF AN APPLICABLE TAXPAYER,
 THERE IS HEREBY IMPOSED A TAX ON THE ACQUISITION OF ANY  NEWLY  ACQUIRED
 SINGLE-FAMILY  RESIDENCE EQUAL TO FIFTY PERCENT OF THE FAIR MARKET VALUE
 OF SUCH RESIDENCE.
   2. (A) IN THE CASE OF AN APPLICABLE TAXPAYER WHO  FAILS  TO  MEET  THE
 REQUIREMENTS  OF SUBDIVISION (B) OF THIS SECTION THERE IS HEREBY IMPOSED
 A TAX EQUAL TO THE PRODUCT OF:
   (I) FIFTY THOUSAND DOLLARS, AND
   (II) THE EXCESS OF:
   (A) THE NUMBER OF APPLICABLE SINGLE-FAMILY  RESIDENCES  OWNED  BY  THE
 TAXPAYER AS OF THE LAST DAY OF THE TAXABLE YEAR, OVER
   (B) THE MAXIMUM PERMISSIBLE UNITS FOR THE TAXABLE YEAR.
   (B)  AN  APPLICABLE TAXPAYER MEETS THE REQUIREMENT OF THIS SUBDIVISION
 FOR ANY TAXABLE YEAR IF THE NUMBER  OF  APPLICABLE  SINGLE-FAMILY  RESI-
 DENCES  OWNED  BY THE TAXPAYER AS OF THE LAST DAY OF THE TAXABLE YEAR IS
 EQUAL TO OR LESS THAN THE  MAXIMUM  PERMISSIBLE  UNITS  DETERMINED  WITH
 RESPECT  TO  SUCH  TAXPAYER  FOR SUCH TAXABLE YEAR. FOR PURPOSES OF THIS
 PARAGRAPH, A SINGLE-FAMILY RESIDENCE WHICH IS SOLD OR TRANSFERRED  IN  A
 DISQUALIFIED  SALE DURING THE TAXABLE YEAR SHALL BE TREATED AS A SINGLE-
 FAMILY RESIDENCE WHICH IS OWNED BY THE APPLICABLE  TAXPAYER  AS  OF  THE
 LAST DAY OF SUCH TAXABLE YEAR.
   § 500-B. MAXIMUM PERMISSIBLE UNITS. THE MAXIMUM PERMISSIBLE UNITS WITH
 RESPECT  TO ANY APPLICABLE TAXPAYER FOR ANY TAXABLE YEAR SHALL BE DETER-
 MINED AS FOLLOWS:
 S. 3009--B                         116
 
 IN THE CASE OF:               THE MAXIMUM PERMISSIBLE UNITS
                               FOR AN APPLICABLE TAXPAYER IS:

 THE FIRST FULL TAXABLE        NINETY PERCENT OF THE NUMBER OF APPLICABLE
 YEAR BEGINNING AFTER THE      SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE
 
 THE SECOND TAXABLE YEAR       EIGHTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE
 
 THE THIRD TAXABLE YEAR        SEVENTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE

 THE FOURTH TAXABLE YEAR       SIXTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE
 
 THE FIFTH TAXABLE YEAR        FIFTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE
 
 THE SIXTH TAXABLE YEAR        FORTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE

 THE SEVENTH TAXABLE YEAR      THIRTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE
 
 THE EIGHTH TAXABLE YEAR       TWENTY PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE
 
 THE NINTH TAXABLE YEAR        TEN PERCENT OF THE NUMBER OF APPLICABLE
 BEGINNING AFTER THE           SINGLE-FAMILY RESIDENCES OWNED BY
 APPLICABLE DATE               THE TAXPAYER ON THE APPLICABLE DATE

 ANY TAXABLE YEAR BEGINNING    0
 MORE THAN NINE YEARS AFTER
 THE APPLICABLE DATE
 
   §  500-C. CONSTRUCTION. 1. FOR PURPOSES OF THIS ARTICLE, AN APPLICABLE
 TAXPAYER SHALL BE TREATED:
   (A) AS ACQUIRING A SINGLE-FAMILY RESIDENCE IF THE APPLICABLE  TAXPAYER
 ACQUIRES  A  MAJORITY OWNERSHIP INTEREST IN THE SINGLE-FAMILY RESIDENCE,
 REGARDLESS OF THE PERCENTAGE OF THAT OWNERSHIP INTEREST; AND
   (B) AS OWNING A SINGLE-FAMILY RESIDENCE  IF  THE  APPLICABLE  TAXPAYER
 OWNS  A  MAJORITY  OWNERSHIP  INTEREST  IN  THE SINGLE-FAMILY RESIDENCE,
 REGARDLESS OF THE PERCENTAGE OF THAT OWNERSHIP INTEREST.
   2. FOR PURPOSES OF THIS ARTICLE, ALL  PERSONS  OR  ENTITIES  THAT  ARE
 TREATED AS A SINGLE EMPLOYER UNDER SUBSECTIONS (A) AND (B) OF SECTION 52
 OF  THE  INTERNAL  REVENUE  CODE  SHALL BE TREATED AS A SINGLE PERSON OR
 ENTITY.
 S. 3009--B                         117
 
   § 500-D. REPORTING. 1. THE COMMISSIONER SHALL REQUIRE  SUCH  REPORTING
 AS THE COMMISSIONER DETERMINES NECESSARY OR APPROPRIATE TO CARRY OUT THE
 PURPOSES OF THIS SECTION, INCLUDING REPORTING WITH RESPECT TO:
   (A) THE DATES ON WHICH SINGLE-FAMILY RESIDENCES OWNED BY AN APPLICABLE
 TAXPAYER WERE ACQUIRED BY SUCH TAXPAYER; AND
   (B)  WHETHER  ANY  PERSON  ACQUIRING A SINGLE-FAMILY RESIDENCE FROM AN
 APPLICABLE TAXPAYER OWNS ANY OTHER SINGLE-FAMILY RESIDENCES AT THE  TIME
 OF THE ACQUISITION.
   2.  ANY PERSON WHO FAILS TO REPORT INFORMATION REQUIRED UNDER SUBDIVI-
 SION ONE OF THIS SECTION OR WHO FAILS TO INCLUDE CORRECT INFORMATION  IN
 SUCH  REPORT  SHALL  PAY A PENALTY OF TWENTY THOUSAND DOLLARS; PROVIDED,
 HOWEVER, THAT NO SUCH PENALTY SHALL BE IMPOSED WITH RESPECT TO ANY FAIL-
 URE IF IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND  NOT
 TO  WILLFUL  NEGLECT.  THE  PENALTY UNDER THIS SUBDIVISION SHALL BE PAID
 UPON NOTICE AND DEMAND BY THE COMMISSIONER.
   § 500-E. TAX FORM. NOT LATER THAN ONE HUNDRED EIGHTY  DAYS  AFTER  THE
 EFFECTIVE  DATE OF THIS ARTICLE, THE COMMISSIONER, OR THE COMMISSIONER'S
 DELEGATE, SHALL PUBLISH A FORM TO BE USED FOR CALCULATING THE AMOUNT  OF
 TAX OWED UNDER THIS ARTICLE.
   §  500-F. CERTIFICATION. 1. THE REPORTING REQUIRED UNDER PARAGRAPH (B)
 OF SUBDIVISION ONE OF SECTION FIVE  HUNDRED-D  OF  THIS  ARTICLE,  SHALL
 INCLUDE  A  CERTIFICATION  FROM  EACH INDIVIDUAL TO WHOM A SINGLE-FAMILY
 RESIDENCE IS SOLD OR TRANSFERRED FROM AN APPLICABLE TAXPAYER.
   2. THE CERTIFICATION REQUIRED UNDER THIS SECTION SHALL  BE  SIGNED  BY
 THE PURCHASER OR TRANSFEREE AND STATE THE FOLLOWING:
   (A) THE NAME AND ADDRESS OF THE PURCHASER OR TRANSFEREE;
   (B) THAT THE SALE IS NOT A DISQUALIFIED SALE; AND
   (C)  THAT  THE  PURCHASER OR TRANSFEREE WILL BE SUBJECT TO THE PENALTY
 IMPOSED UNDER SUBDIVISION TWO OF SECTION FIVE HUNDRED-D OF THIS  ARTICLE
 FOR ANY FALSE CERTIFICATION.
   §  500-G. USE OF TAX REVENUES. ALL REVENUES FROM TAXES COLLECTED UNDER
 THIS ARTICLE SHALL BE DEPOSITED INTO THE HOUSING DOWN PAYMENT TRUST FUND
 ESTABLISHED BY SECTION EIGHTY-B OF THE STATE FINANCE LAW  AND  SHALL  BE
 USED ONLY FOR THE PURPOSES SPECIFIED IN SUCH SECTION.
   §  3. The state finance law is amended by adding a new section 80-b to
 read as follows:
   § 80-B. HOUSING DOWN PAYMENT TRUST FUND.  1. THERE IS  ESTABLISHED  IN
 CUSTODY  OF  THE  STATE  COMPTROLLER  A SPECIAL FUND TO BE KNOWN AS "THE
 HOUSING DOWN PAYMENT TRUST FUND" (HEREINAFTER IN THIS  SECTION  REFERRED
 TO AS THE 'TRUST FUND').
   2. THE TRUST FUND SHALL CONSIST OF MONEYS APPROPRIATED THERETO, MONEYS
 TRANSFERRED  FROM  ANY OTHER FUND OR SOURCES, AND ALL EXCISE TAX, PENAL-
 TIES AND FORFEITURES COLLECTED PURSUANT TO ARTICLE TWENTY-E OF  THE  TAX
 LAW.    NOTHING  CONTAINED  IN THIS SECTION SHALL PREVENT THE STATE FROM
 RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF THE  TRUST  FUND
 AS  DEFINED  IN  THIS  SECTION  AND  DEPOSITING THEM INTO THE TRUST FUND
 ACCORDING TO LAW.
   3. THE MONEYS IN THE TRUST FUND SHALL BE KEPT SEPARATE FROM AND  SHALL
 NOT  BE  COMMINGLED  WITH  ANY  OTHER MONEYS IN THE CUSTODY OF THE STATE
 COMPTROLLER. SUCH MONEYS SHALL BE MADE AVAILABLE TO THE COMMISSIONER  OF
 THE  STATE  DIVISION  OF  HOUSING  AND  COMMUNITY RENEWAL FOR THE GRANTS
 PROGRAM FOR DOWN PAYMENT ASSISTANCE PROGRAMS AS PROVIDED IN  SUBDIVISION
 FOUR OF THIS SECTION.
   4.  THE  COMMISSIONER  OF  THE STATE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL SHALL ESTABLISH A PROGRAM UNDER WHICH  SAID  COMMISSIONER  MAKES
 GRANTS  TO STATE HOUSING FINANCE AGENCIES TO ESTABLISH NEW OR SUPPLEMENT
 S. 3009--B                         118
 
 EXISTING PROGRAMS THAT  PROVIDE  DOWN  PAYMENT  ASSISTANCE  TO  FAMILIES
 PURCHASING  HOMES  WITHIN THE STATE. A STATE HOUSING FINANCE AGENCY THAT
 RECEIVES A GRANT UNDER THIS SECTION  SHALL  GIVE  PRIORITY  TO  FAMILIES
 SEEKING  ASSISTANCE TO PURCHASE ANY SINGLE-FAMILY RESIDENCE THAT IS SOLD
 OR TRANSFERRED BY AN APPLICABLE TAXPAYER AS DEFINED IN ARTICLE  TWENTY-E
 OF  THE  TAX LAW.  THE COMMISSIONER OF THE STATE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL SHALL ESTABLISH THE APPLICATION  CRITERIA  AND  QUALI-
 FICATIONS FOR THE STATE HOUSING FINANCE AGENCIES FOR THE PURPOSES OF THE
 TRUST  FUND  AS  DEFINED  IN THIS SECTION. THE COMMISSIONER OF THE STATE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL MAY ENTER INTO CONTRACTS  WITH
 SUCH  QUALIFIED  STATE  HOUSING FINANCE AGENCIES WHICH MAY THEREAFTER BE
 RENEWED, EXTENDED OR SUCCEEDED BY NEW CONTRACTS FROM YEAR TO YEAR IN THE
 DISCRETION OF THE COMMISSIONER OF THE  STATE  DIVISION  OF  HOUSING  AND
 COMMUNITY RENEWAL.
   5.  THE  MONIES  SHALL BE PAYABLE FROM THE TRUST FUND ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER ON VOUCHERS APPROVED  AND  CERTIFIED  BY  THE
 COMMISSIONER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL.
   6. NO LATER THAN THE FIFTEENTH DAY OF JANUARY OF EACH YEAR THE COMMIS-
 SIONER  OF  THE  STATE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL
 REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE  AND  THE
 SPEAKER  OF THE ASSEMBLY ON ACTIVITIES UNDERTAKEN BY THE COMMISSIONER OF
 THE STATE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL  AND  ANY  GRANTEE
 PURSUANT  TO  THIS  SECTION  IN  THE  PRECEDING  YEAR.  THE REPORT SHALL
 INCLUDE, BUT NOT BE LIMITED TO, THE CURRENT AMOUNT OF FUNDS AVAILABLE AS
 WELL AS THE AMOUNT OF MONEY GRANTED TO ANY STATE HOUSING  FINANCE  AGEN-
 CIES FOR THE PURPOSES IDENTIFIED IN THIS SECTION.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after the effective date of this act.

                                  PART UU
 
   Section 1. Subdivision (a) of section 42-a of the tax law, as added by
 section  2 of subpart C of part B of chapter 59 of the laws of 2022,  is
 amended to read as follows:
   (a) Notwithstanding subdivision (f) of section forty-two of this arti-
 cle, a taxpayer that is a farm employer [or], an owner of a farm employ-
 er, OR A PROFESSIONAL EMPLOYER ORGANIZATION AS DEFINED IN  SECTION  NINE
 HUNDRED  SIXTEEN  OF THE LABOR LAW THAT IS IN A CONTRACTUAL RELATIONSHIP
 WITH AN ELIGIBLE FARM EMPLOYER shall be eligible for  a  credit  against
 the  tax  imposed  under  article  nine-A or twenty-two of this chapter,
 pursuant to  the  provisions  referenced  in  subdivision  (i)  of  this
 section.
   §  2.  Subdivision  (d)  of  section  42-a of the tax law, as added by
 section 2 of subpart C of part B of chapter 59 of the laws of  2022,  is
 amended to read as follows:
   (d)  An  eligible  farm  employee is an individual who meets the defi-
 nition of a "farm laborer" under section two of the  labor  law  who  is
 employed  by  a farm employer OR A PROFESSIONAL EMPLOYER ORGANIZATION AS
 DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW THAT  IS  IN  A
 CONTRACTUAL  RELATIONSHIP  WITH  AN  ELIGIBLE  FARM EMPLOYER in New York
 state, but excluding general executive officers of the farm employer.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
 
                                  PART VV
 S. 3009--B                         119
 
   Section  1.  Section  5  of  part RR of chapter 60 of the laws of 2016
 amending the tax law relating to creating  a  farm  workforce  retention
 credit,  as amended by section 2 of subpart B of part B of chapter 59 of
 the laws of 2022, is amended to read as follows:
   §  5.  This  act shall take effect immediately and shall apply only to
 taxable years beginning on or after January 1, 2017 and  before  January
 1, [2026] 2031.
   § 2. This act shall take effect immediately.
 
                                  PART WW
 
   Section  1.  The tax law is amended by adding a new section 50 to read
 as follows:
   § 50.  SMALL BUSINESS UNEMPLOYMENT INSURANCE CREDIT.  (A)  A  TAXPAYER
 THAT  IS  A  SMALL  BUSINESS  OR  THE OWNER OF A SMALL BUSINESS SHALL BE
 ELIGIBLE FOR A CREDIT AGAINST THE  TAX  IMPOSED  UNDER  ARTICLE  NINE-A,
 TWENTY-TWO  OR  THIRTY-THREE OF THIS CHAPTER, PURSUANT TO THE PROVISIONS
 REFERENCED IN SUBDIVISION (D) OF THIS SECTION.
   (B) FOR PURPOSES OF THIS SECTION, A SMALL BUSINESS  IS  A  CORPORATION
 (INCLUDING  A  NEW YORK S CORPORATION), A SOLE PROPRIETORSHIP, A LIMITED
 LIABILITY COMPANY OR A PARTNERSHIP WITH FIFTY OR FEWER EMPLOYEES.
   (C) AN ELIGIBLE EMPLOYEE IS AN INDIVIDUAL PURSUANT TO ARTICLE EIGHTEEN
 OF THE LABOR LAW WHO HAS BEEN PAID WAGES OF  AT  LEAST  TWELVE  THOUSAND
 EIGHT  HUNDRED  DOLLARS IN TAX YEAR TWO THOUSAND TWENTY-FIVE OR THIRTEEN
 THOUSAND DOLLARS IN TAX YEAR TWO THOUSAND TWENTY-SIX.
   (D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  TWENTY-FIVE  AND  BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN,
 THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL  BE  EQUAL  TO
 TWO HUNDRED FIFTEEN DOLLARS PER ELIGIBLE EMPLOYEE.
   (E)  CROSS  REFERENCES: FOR APPLICATION OF THE CREDIT PROVIDED IN THIS
 SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 61.
   (2) ARTICLE 22: SECTION 606, SUBSECTION (QQQ).
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (FF).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 61 to read as follows:
   61.    SMALL  BUSINESS UNEMPLOYMENT INSURANCE CREDIT. (A) ALLOWANCE OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS  ARTI-
 CLE.
   (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  SUCH
 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.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (qqq) to read as follows:
 S. 3009--B                         120
 
   (QQQ) SMALL BUSINESS UNEMPLOYMENT INSURANCE CREDIT.   (1)  A  TAXPAYER
 SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FIFTY
 OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS
 SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS  THE  TAXPAYER'S  TAX  FOR  SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR  REFUNDED  IN  ACCORDANCE  WITH  THE PROVISION OF SECTION SIX HUNDRED
 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
 PAID THEREON.
   §  4. 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) SMALL BUSINESS UNEMPLOYMENT       AMOUNT OF CREDIT FOR QUALIFIED
 INSURANCE CREDIT UNDER                  BUSINESSES UNDER SUBDIVISION
 SUBSECTION (QQQ)                        SIXTY-ONE OF SECTION TWO
                                         HUNDRED TEN-B
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ff) to read as follows:
   (FF) SMALL BUSINESS UNEMPLOYMENT INSURANCE CREDIT.  (1)  ALLOWANCE  OF
 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN  SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE 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  THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE 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 THOU-
 SAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE
 PAID THEREON.
   § 6. This act shall take effect immediately and shall  apply  only  to
 taxable  years  beginning on or after January 1, 2025 and before January
 1, 2027.
 
                                  PART XX
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "Stop Climate Polluter Handouts Act".
   §  2.  Subdivision  (m)  of  section 301-a of the tax law, as added by
 section 20 of part K of chapter 61 of the laws of 2011,  is  amended  to
 read as follows:
   (m)  Special  rate adjustment for certain vessels. Notwithstanding any
 provision of this section to the contrary, the use of non-highway diesel
 motor fuel in the engine of a vessel to  propel  such  vessel  shall  be
 subject  to  tax  at  the  motor fuel and highway diesel motor fuel rate
 provided for in this section, and shall be subject to the provisions  of
 section  three  hundred  one-j of this article, including the adjustment
 set forth in paragraph [four] THREE of subdivision (a) of  such  section
 three hundred one-j. A credit or refund shall be available to the extent
 tax  paid on gallonage used to propel any such vessel exceeds the amount
 of tax due based on the tax rate set forth  herein.  Provided,  however,
 S. 3009--B                         121

 that  the  commissioner  shall require such documentary proof to qualify
 for any credit or reimbursement provided hereunder as  the  commissioner
 deems appropriate.
   § 3. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g)
 of section 301-a of the tax law are REPEALED.
   §  4. Subdivisions (a) and (d) of section 301-b of the tax law, subdi-
 vision (a) as added by chapter 190 of the laws of 1990, paragraph  5  of
 subdivision  (a)  as amended by section 3 of part E of chapter 59 of the
 laws of 2012, paragraphs 6, 7 and 8  of  subdivision  (a)  as  added  by
 section  4  of part W-1 of chapter 109 of the laws of 2006, and subdivi-
 sion (d) as amended by section 21 of part K of chapter 61 of the laws of
 2011, are amended to read as follows:
   (a) Products. (1) [Kerosene sold or used by a petroleum business which
 is registered under article twelve-A of this chapter as a distributor of
 diesel motor fuel so long as (i) such product has not  been  blended  or
 mixed  with  any  other  product constituting diesel motor fuel or motor
 fuel or a residual petroleum product and (ii) such product is  not  used
 by  the petroleum business as fuel to operate a motor vehicle or sold by
 such petroleum business to a consumer for use as fuel to operate a motor
 vehicle.
   (2) Kero-jet fuel (i) sold by a petroleum business which is registered
 under article twelve-A of this chapter as a distributor of diesel  motor
 fuel  to  a  consumer  for  use exclusively as jet aircraft fuel or to a
 petroleum business registered under such article twelve-A as a "distrib-
 utor of kero-jet fuel only" where such fixed base  operator  is  engaged
 solely  in  making or offering to make retail sales not in bulk of kero-
 jet fuel directly into the fuel tank of an airplane for the  purpose  of
 operating  such  airplane, (ii) used by a petroleum business, registered
 under article twelve-A of this chapter as a distributor of diesel  motor
 fuel,  exclusively  as jet aircraft fuel, or (iii) sold at retail not in
 bulk by a petroleum business registered under article twelve-A  of  this
 chapter  as  a  "distributor  of  kero-jet fuel only" where such fuel is
 delivered directly into the fuel tank of a jet airplane for use  in  the
 operation of such airplane.
   (3)] Aviation gasoline, meeting the specifications set forth in Ameri-
 can  Standard Testing Material Specification D910 or Military Specifica-
 tion MIL-G-5572, which is imported or caused to be  imported  into  this
 state by a petroleum business which is registered under article twelve-A
 of  this  chapter  as  a distributor of motor fuel or produced, refined,
 manufactured or compounded in this state by such a petroleum business.
   [(4) Residual petroleum product sold by a  petroleum  business  regis-
 tered  under  this  article  as a residual petroleum product business if
 such product is sold by such petroleum business to a  consumer  for  use
 exclusively  as  bunker  fuel  for vessels or if such product is used by
 such petroleum business exclusively as bunker fuel in its own vessels.
   (5)] (2) Liquefied petroleum gases, such as butane, ethane or propane,
 USED FOR PURPOSES OTHER THAN AS MOTOR FUEL IN THE OPERATION OF  A  MOTOR
 VEHICLE  OR FOR USE IN THE OPERATION OF A PLEASURE OR RECREATIONAL MOTOR
 BOAT OR USING OR CONSUMING LIQUEFIED PETROLEUM GAS FOR SUCH PURPOSE.
   [(6)] (3) E85 imported or caused to be imported  into  this  state  or
 produced,  refined, manufactured or compounded in this state by a petro-
 leum business registered under article twelve-A of this  chapter,  as  a
 distributor  of motor fuel, and then sold by such petroleum business and
 delivered to a filling station and placed in  a  storage  tank  of  such
 filling station for such E85 to be dispensed directly into a motor vehi-
 cle for use in the operation of such vehicle.
 S. 3009--B                         122

   [(7)]  (4)  (i)  Partial  B20  exemption. B20 imported or caused to be
 imported  into  this  state  or  produced,  refined,   manufactured   or
 compounded  in this state by a petroleum business registered under arti-
 cle twelve-A of this chapter, as a distributor of diesel motor fuel, and
 then sold by such petroleum business.
   (ii)  Calculation  of  partial  exemption.  The  amount of the partial
 exemption under this paragraph shall be determined  by  multiplying  the
 quantity  of  B20 times twenty percent of the applicable taxes otherwise
 imposed by this article on such fuel.
   [(8)] (5) CNG or hydrogen.
   (d) Sales to consumers for heating purposes. [(1)]  Total  residential
 heating  exemption.  Non-highway  diesel  motor fuel sold by a petroleum
 business registered under article twelve-A of this chapter as a distrib-
 utor of diesel motor fuel or residual petroleum product sold by a petro-
 leum business registered under this  article  as  a  residual  petroleum
 product  business  to  the  consumer exclusively for residential heating
 purposes only if such non-highway diesel motor fuel is delivered into  a
 storage  tank  which  is  not equipped with a hose or other apparatus by
 which such fuel can be dispensed into the fuel tank of a  motor  vehicle
 and such storage tank is attached to the heating unit burning such fuel.
   [(2) Partial non-residential heating exemption. (A) Non-highway diesel
 motor  fuel  sold  by  a  petroleum  business  registered  under article
 twelve-A of this chapter as a distributor of diesel motor fuel or  resi-
 dual  petroleum  product  sold  by a petroleum business registered under
 this article as a residual petroleum product business  to  the  consumer
 exclusively for heating, other than residential heating purposes only if
 such  non-highway  diesel  motor  fuel  is delivered into a storage tank
 which is not equipped with a hose or other apparatus by which such  fuel
 can  be dispensed into the fuel tank of a motor vehicle and such storage
 tank is attached to the heating unit burning such fuel  (B)  Calculation
 of  partial  exemption. The partial exemption under this paragraph shall
 be determined by multiplying the quantity of  non-highway  diesel  motor
 fuel and residual petroleum product eligible for the exemption times the
 sum  of the then current rate of the supplemental tax imposed by section
 three hundred one-j of this article and forty-six percent  of  the  then
 current  rate  of the tax imposed by section three hundred one-a of this
 article, with respect to the specific non-highway diesel motor  fuel  or
 residual petroleum product rate, as the case may be.]
   §  5.  The  subdivision  heading and paragraph 1 of subdivision (c) of
 section 301-b of the tax law, as added by chapter 190  of  the  laws  of
 1990, are amended to read as follows:
   Sales  to  [New York state and] the federal government. (1) Motor fuel
 imported or caused to be imported into this state or produced,  refined,
 manufactured  or compounded in this state by a petroleum business regis-
 tered under article twelve-A of this chapter, as a distributor of  motor
 fuel,  and  then  sold  by  such  petroleum  business to an organization
 described in paragraph [one or] two of subdivision (a) of section eleven
 hundred sixteen of this chapter where such motor fuel is  used  by  such
 organization for its own use or consumption.
   §  6.  The  opening  paragraph and subdivisions (a) and (b) of section
 301-c of the tax law, the opening paragraph as amended by section  2  of
 part  T of chapter 59 of the laws of 2022, subdivision (a) as amended by
 section 23 of part K of chapter 61 of the laws of 2011, and  subdivision
 (b)  as  amended by chapter 330 of the laws of 1991, are amended to read
 as follows:
 S. 3009--B                         123
 
   A subsequent purchaser shall be eligible for reimbursement of tax with
 respect to the following gallonage, subsequently sold by such  purchaser
 in  accordance  with  subdivision  (a), (b), (e), (h), [(j), (k), (n) or
 (o)] (I), (K) OR (L) of this  section  or  used  by  such  purchaser  in
 accordance  with  subdivision (c), (d), (f), (g), [(i), (l), (m)] (J) or
 [(q)] (N) of this section, which gallonage  has  been  included  in  the
 measure of the tax imposed by this article on a petroleum business:
   (a)  [Non-highway  Diesel  motor  fuel used for heating purposes. (1)]
 Total residential heating reimbursement. Non-highway Diesel  motor  fuel
 purchased in this state and sold by such purchaser to a consumer for use
 exclusively  for  residential  heating  purposes but only where (i) such
 non-highway diesel motor fuel is delivered into a storage tank which  is
 not  equipped  with  a hose or other apparatus by which such non-highway
 Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle
 and such storage tank is attached to the heating unit burning such  non-
 highway Diesel motor fuel, (ii) the tax imposed pursuant to this article
 has been paid with respect to such non-highway diesel motor fuel and the
 entire amount of such tax has been absorbed by such purchaser, and (iii)
 such  purchaser  possesses documentary proof satisfactory to the commis-
 sioner evidencing the absorption by it of the entire amount of  the  tax
 imposed  pursuant  to  this article. Provided, however, that the commis-
 sioner is authorized, in the event that the commissioner determines that
 it would not threaten the integrity of the administration  and  enforce-
 ment of the tax imposed by this article, to provide a reimbursement with
 respect  to a retail sale to a consumer for residential heating purposes
 of less than ten gallons of non-highway diesel motor fuel provided  such
 fuel is not dispensed into the tank of a motor vehicle.
   [(2)  Partial  non-residential  heating reimbursement. (A) Non-highway
 Diesel motor fuel purchased in this state and sold by such purchaser  to
 a  consumer  for use exclusively for heating, other than for residential
 heating purposes, but only where (i) such non-highway diesel motor  fuel
 is  delivered  into  a storage tank which is not equipped with a hose or
 other apparatus by which such  non-highway  Diesel  motor  fuel  can  be
 dispensed into the fuel tank of a motor vehicle and such storage tank is
 attached to the heating unit burning such non-highway Diesel motor fuel,
 (ii) the tax imposed pursuant to this article has been paid with respect
 to  such non-highway diesel motor fuel and the entire amount of such tax
 has been absorbed by such purchaser, and (iii) such purchaser  possesses
 documentary  proof  satisfactory  to  the  commissioner  evidencing  the
 absorption by it of the entire amount of the  tax  imposed  pursuant  to
 this article.
   (B)  Calculation  of  partial reimbursement. Notwithstanding any other
 provision of this article, the amount of the  reimbursement  under  this
 paragraph shall be determined by multiplying the quantity of non-highway
 diesel  motor  fuel  eligible for the reimbursement times the sum of the
 then current rate of the  supplemental  tax  imposed  by  section  three
 hundred  one-j of this article and forty-six percent of the then current
 rate of the tax imposed by section three hundred one-a of this  article,
 with  respect to the non-highway diesel motor fuel rate, as the case may
 be.]
   (b) Sales to [New York state and] the federal government.  Motor  fuel
 and diesel motor fuel purchased in this state and sold by such purchaser
 in  this state to an organization described in paragraph [one or] two of
 subdivision (a) of section eleven hundred sixteen of this chapter  where
 (i)  such motor fuel or diesel motor fuel is for such organization's own
 use or consumption, (ii) the tax imposed pursuant to  this  article  has
 S. 3009--B                         124
 
 been  paid  with respect to such motor fuel or diesel motor fuel and the
 entire amount of such tax has been absorbed by such purchaser and, (iii)
 such purchaser possesses documentary proof satisfactory to  the  commis-
 sioner  of  taxation  and finance evidencing the absorption by it of the
 entire amount of the tax imposed pursuant  to  this  article.  Provided,
 however,  that  the commissioner [of taxation and finance] shall require
 such documentary proof to qualify for any reimbursement of tax  provided
 by  this  section  as  the commissioner deems appropriate, including the
 expansion of any certification required pursuant to section two  hundred
 eighty-five-a  or two hundred eighty-five-b of this chapter to cover the
 taxes imposed pursuant to this article.
   § 6-a. The opening paragraph of section  301-c  of  the  tax  law,  as
 amended  by  section  3  of part T of chapter 59 of the laws of 2022, is
 amended to read as follows:
   A subsequent purchaser shall be eligible for reimbursement of tax with
 respect to the following gallonage, subsequently sold by such  purchaser
 in accordance with subdivision (a), (b), (e), (h), [(j)] or [(k)] (I) of
 this  section  or  used by such purchaser in accordance with subdivision
 (c), (d), (f), (g), [(i), (l), (m)] (J) or [(q)] (N)  of  this  section,
 which  gallonage  has been included in the measure of the tax imposed by
 this article on a petroleum business:
   § 7. Subdivisions (i), (j) and (l) of section 301-c of the tax law are
 REPEALED.
   § 8. Subdivisions (k), (m), (n), (o), (p) and (q) of section 301-c  of
 the tax law are relettered subdivisions (i), (j), (k), (l), (m) and (n).
   § 9. Section 301-d of the tax law is REPEALED.
   § 10. Subdivision (f) of section 301-e of the tax law is REPEALED.
   §  11.  Subdivision (a) of section 301-j of the tax law, as amended by
 chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended  by
 section  29  of  part K of chapter 61 of the laws of 2011, is amended to
 read as follows:
   (a) Imposition of tax.  (1)  In  addition  to  the  taxes  imposed  by
 sections  three  hundred  one-a and three hundred one-e of this article,
 there is hereby imposed upon every petroleum  business  subject  to  tax
 imposed  under  section  three  hundred  one-a of this article and every
 aviation fuel business subject to the aviation gasoline component of the
 tax imposed under section three hundred one-e of this article, a supple-
 mental monthly tax for each or any part of a taxable month at a rate  of
 six  and  eight-tenths  cents  per  gallon  with respect to the products
 included in each component of the taxes imposed by  such  section  three
 hundred  one-a and the aviation gasoline component of the tax imposed by
 such section three hundred one-e of this article.
   (2) [Provided,  however,  "commercial  gallonage,"  as  such  term  is
 defined  in  subdivision  (k)  of section three hundred of this article,
 shall be exempt from the measure of the tax imposed under this section.
   (3)] Provided, further, "railroad diesel," as such term is defined  in
 subdivision  (l)  of  section  three  hundred  of this article, shall be
 exempt from the measure of the tax imposed under this section.
   [(4)] (3) Provided, further, a separate per gallon  rate  shall  apply
 with respect to highway diesel motor fuel. Such rate shall be determined
 by  taking  the  adjusted rate per gallon of tax imposed under paragraph
 one of this subdivision as adjusted in accordance with paragraph  [five]
 FOUR  of  this subdivision and subtracting therefrom one and three-quar-
 ters cents.  Commencing January first, two  thousand  twelve,  and  each
 January  thereafter,  the  per  gallon rate applicable to highway diesel
 motor fuel shall be the adjusted rate under paragraph one of this subdi-
 S. 3009--B                         125
 
 vision as adjusted in accordance with  paragraph  [five]  FOUR  of  this
 subdivision  which  commences  on such date minus one and three-quarters
 cents. The resulting rate under this paragraph  shall  be  expressed  in
 hundredths of a cent.
   [(5)]  (4)  Except  as  herein  provided,  the  tax imposed under this
 section shall be calculated in the same respective manner as  the  taxes
 imposed  by  section three hundred one-a and section three hundred one-e
 of this article. Except [for section three hundred one-d and except]  as
 otherwise  provided  in this section, all the provisions of this article
 applicable to the taxes imposed by  sections  three  hundred  one-a  and
 three  hundred  one-e  of  this article, shall apply with respect to the
 supplemental tax imposed by this section to the same  extent  as  if  it
 were respectively imposed by such sections.
   §  12.  Subparagraphs  (ix)  and (x) of paragraph 3 and paragraph 5 of
 subdivision (c) of section 1105 of the tax  law,  subparagraph  (ix)  of
 paragraph  3  as  added by chapter 395 of the laws of 1998, subparagraph
 (x) of paragraph 3 as added by section 1 of part FF of  chapter  407  of
 the  laws of 1999, and paragraph 5 as amended by chapter 321 of the laws
 of 2005, are amended to read as follows:
   (ix) [such services rendered with respect to tangible property used or
 consumed directly and predominantly in the production for sale of gas or
 oil by  manufacturing,  processing,  generating,  assembling,  refining,
 mining, or extracting.
   (x)]  such  services  rendered  with  respect to property described in
 paragraph twelve-a of subdivision (a) of section eleven hundred  fifteen
 of this article.
   (5)  Maintaining,  servicing  or  repairing real property, property or
 land, as such terms are defined in the real property  tax  law,  whether
 the services are performed in or outside of a building, as distinguished
 from  adding  to or improving such real property, property or land, by a
 capital improvement as such term capital improvement is defined in para-
 graph nine of subdivision (b) of section  eleven  hundred  one  of  this
 article, but excluding (i) services rendered by an individual who is not
 in a regular trade or business offering [his] SUCH INDIVIDUAL'S services
 to  the  public,  (ii)  [services rendered directly with respect to real
 property, property or land used or consumed directly  and  predominantly
 in  the  production for sale of gas or oil by manufacturing, processing,
 generating, assembling, refining, mining, or extracting, (iii)] services
 rendered with respect  to  real  property,  property  or  land  used  or
 consumed  predominantly  either  in  the production of tangible personal
 property, for sale, by farming or in a commercial horse boarding  opera-
 tion,  or in both and [(iv)] (III) services of removal of waste material
 from a facility regulated as a  transfer  station  or  construction  and
 demolition debris processing facility by the department of environmental
 conservation,  provided  that  the  waste material to be removed was not
 generated by the facility.
   § 13. Subparagraph (xi) of paragraph 3 of subdivision (c)  of  section
 1105 of the tax law is REPEALED.
   § 14. Paragraph 9 of subdivision (a) of section 1115 of the tax law is
 REPEALED.
   § 15. Paragraphs 3 and 4 of subdivision (a) of section 1221 of the tax
 law,  paragraph  3 as amended by chapter 2 of the laws of 1995 and para-
 graph 4 as added by chapter 93 of the laws of 1965, are  amended  and  a
 new paragraph 5 is added to read as follows:
   (3)  except  in  accordance with the provisions of section twenty-b of
 the general city law, a tax upon gross incomes, gross operating  incomes
 S. 3009--B                         126
 
 or gross receipts of persons subject to taxation under the provisions of
 section  one  hundred  eighty-six-a  or one hundred eighty-six-e of this
 chapter, but this clause shall not be deemed to restrict  the  power  to
 tax  persons  not subject to taxation under such section of this chapter
 who are otherwise subject to taxation under subdivision (a)  of  section
 twelve hundred one OF THIS ARTICLE, nor the power to provide for credits
 against  any  tax imposed pursuant to such subdivision, nor to limit the
 rates of taxes authorized to be imposed by such subdivision [(a) of such
 section twelve hundred one], [or]
   (4) a tax upon interest or dividends received from a corporation by  a
 person referred to in this section[.], OR
   (5) A TAX ON FUEL SOLD TO AN AIRLINE FOR USE IN ITS AIRPLANES.
   §  16. Section 1148 of the tax law is amended by adding a new subdivi-
 sion (d) to read as follows:
   (D) PROVIDED, HOWEVER, BEFORE SUCH FUNDS ARE DISTRIBUTED  PURSUANT  TO
 SUBDIVISION  (A)  OF  THIS  SECTION, ANY REVENUE COLLECTED BY THE STATE,
 FROM FUEL SOLD TO AN AIRLINE FOR USE IN ITS AIRPLANES, UNDER THE AUTHOR-
 ITY GRANTED TO THE STATE BY THIS  ARTICLE  SHALL  BE  DEDICATED  TO  THE
 AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND,
 PROVIDED  THAT  THE  PORTION  FOR  THE AIRPORT OR AVIATION STATE PROGRAM
 SHALL BE NO LESS THAN FORTY MILLION DOLLARS ANNUALLY, WITH THE REMAINING
 REVENUE COLLECTED  FROM  SUCH  TAXES  BEING  DEDICATED  TO  THE  CAPITAL
 PROJECTS  FUND FOR AVIATION PURPOSES REQUIRED IN CONNECTION THEREWITH OF
 AIRPORTS AND AVIATION FACILITIES, EQUIPMENT AND RELATED PROJECTS.
   § 17. Paragraph (ii) of subdivision (b) of section  1115  of  the  tax
 law,  as  amended  by  section 30 of part Y of chapter 63 of the laws of
 2000, is amended to read as follows:
   (ii) [Gas, electricity]  ELECTRICITY,  refrigeration  and  steam,  and
 [gas,]  electric, refrigeration and steam service of whatever nature for
 use or consumption directly and exclusively in research and  development
 in  the  experimental  or  laboratory sense shall be exempt from the tax
 imposed under subdivision (b) of section eleven  hundred  five  and  the
 compensating  use  tax  imposed under section eleven hundred ten of this
 article. Such research and development shall not be  deemed  to  include
 the  ordinary testing or inspection of materials or products for quality
 control,  efficiency  surveys,  management  studies,  consumer  surveys,
 advertising, promotions or research in connection with literary, histor-
 ical or similar projects.
   §  18.  Paragraph 1 of subdivision (c) of section 1115 of the tax law,
 as amended by section 7 of part B of chapter 63 of the laws of 2000,  is
 amended to read as follows:
   (1) [Fuel, gas, electricity] ELECTRICITY, refrigeration and steam, and
 [gas,]  electric, refrigeration and steam service of whatever nature for
 use or consumption directly and exclusively in the production of  tangi-
 ble  personal  property, [gas,] electricity, refrigeration or steam, for
 sale, by manufacturing, processing,  assembling,  generating,  refining,
 mining or extracting shall be exempt from the taxes imposed under subdi-
 visions  (a) and (b) of section eleven hundred five and the compensating
 use tax imposed under section eleven hundred ten of this article.
   § 19. Subdivision (j) of section 1115 of the tax law,  as  amended  by
 section  41  of  part K of chapter 61 of the laws of 2011, is amended to
 read as follows:
   (j) The exemptions provided in this section shall not apply to the tax
 required to be prepaid pursuant to  the  provisions  of  section  eleven
 hundred  two of this article nor to the taxes imposed by sections eleven
 hundred five and eleven hundred ten of  this  article  with  respect  to
 S. 3009--B                         127
 
 receipts  from sales and uses of motor fuel or diesel motor fuel, except
 that the exemptions provided in [paragraphs nine and]  PARAGRAPH  forty-
 two  of  subdivision (a) of this section shall apply to the tax required
 to  be  prepaid pursuant to the provisions of section eleven hundred two
 of this article and to the taxes imposed by sections eleven hundred five
 and eleven hundred ten of this article with respect to sales and uses of
 [kero-jet fuel,] CNG, hydrogen and E85, provided, however, the exemption
 allowed for E85 shall be subject to the additional requirements provided
 in section eleven hundred two of this article with respect to  E85.  The
 exemption  provided  in  subdivision  (c) of this section shall apply to
 sales and uses of non-highway diesel motor fuel but only if all of  such
 fuel  is  consumed  other than on the public highways of this state. The
 exemption provided in subdivision (c) of this  section  shall  apply  to
 sales  and  uses of non-highway diesel motor fuel for use or consumption
 either in the production for sale of tangible personal property by farm-
 ing or in a commercial horse boarding operation, or in both but only  if
 all  of  such fuel is consumed other than on the public highways of this
 state (except for the use of the public highways to reach adjacent farm-
 lands or adjacent lands used in a commercial horse  boarding  operation,
 or both).
   §  19-a. Subdivision (j) of section 1115 of the tax law, as amended by
 section 41-a of part K of chapter 61 of the laws of 2011, is amended  to
 read as follows:
   (j) The exemptions provided in this section shall not apply to the tax
 required  to  be  prepaid  pursuant  to the provisions of section eleven
 hundred two of this article nor to the taxes imposed by sections  eleven
 hundred  five  and  eleven  hundred  ten of this article with respect to
 receipts from sales and uses of motor fuel or diesel motor fuel[, except
 that the exemption provided in paragraph nine of subdivision (a) of this
 section shall apply to the tax required to be prepaid  pursuant  to  the
 provisions  of  section  eleven  hundred  two of this article and to the
 taxes imposed by sections eleven hundred five and eleven hundred ten  of
 this  article  with  respect  to  sales  and uses of kero-jet fuel]. The
 exemption provided in subdivision (c) of this  section  shall  apply  to
 sales  and uses of non-highway diesel motor fuel but only if all of such
 fuel is consumed other than on the public highways of  this  state.  The
 exemption  provided  in  subdivision  (c) of this section shall apply to
 sales and uses of non-highway diesel motor fuel for use  or  consumption
 either in the production for sale of tangible personal property by farm-
 ing  or in a commercial horse boarding operation, or in both but only if
 all of such fuel is consumed other than on the public highways  of  this
 state (except for the use of the public highways to reach adjacent farm-
 lands  or  adjacent lands used in a commercial horse boarding operation,
 or both).
   § 20. Subdivision (s) of section 1115 of the  tax  law,  as  added  by
 chapter 201 of the laws of 1995, is relettered subdivision (p).
   §  21.  Subdivision  (w)  of  section 1115 of the tax law, as added by
 section 32 of part Y of chapter 63 of the laws of 2000,  is  amended  to
 read as follows:
   (w)  Receipts  from the sale of [gas or] electricity or [gas or] elec-
 tric service of whatever nature and consideration given or contracted to
 be given for, or for the use of, [gas or] electricity or [gas or]  elec-
 tric service of whatever nature purchased for use or consumption direct-
 ly  and  exclusively  to  provide  [gas or] electric service of whatever
 nature consisting of operating [a gas pipeline or gas distribution  line
 or]  an  electric  transmission  or  distribution line [and ensuring the
 S. 3009--B                         128

 necessary working pressure in an underground gas storage facility] shall
 be exempt from sales and compensating use taxes imposed by this article.
 Such exempt [gas or] electricity or [gas or] electric service of whatev-
 er  nature  shall  include,  but  shall not be limited to, such [gas or]
 electricity or [gas or] electric service  of  whatever  nature  used  or
 consumed directly and exclusively to (1) [ensure necessary working pres-
 sure  in  a  gas pipeline used to transport, transmit or distribute gas,
 (2) operate compressors used to transport, transmit  or  distribute  gas
 through  such  a  gas  pipeline  or  distribution line or used to ensure
 necessary working pressure in such a storage facility, (3) operate heat-
 ers to prevent gas in such a pipeline or distribution line  from  freez-
 ing,  (4)  operate  equipment which removes impurities and moisture from
 gas in such a pipeline or distribution line,  (5)]  operate  substations
 and  equipment  related  to electric transmission and distribution lines
 such  as  transformers,  capacitors,  meters,  switches,   communication
 devices  and  heating  and  cooling  equipment, and [(6)] (2) ensure the
 reliability of electricity or electric service transmitted  or  distrib-
 uted  through  such  lines,  for  example, by operating reserve capacity
 machinery and equipment.
   § 22. Subdivision (k) of section 300 of the tax  law,  as  amended  by
 section  17  of  part K of chapter 61 of the laws of 2011, is amended to
 read as follows:
   (k) "Commercial gallonage" means gallonage (1)  which  is  non-highway
 diesel  motor fuel or residual petroleum product, (2) [which is included
 in the full measure of the non-highway diesel motor  fuel  component  or
 the  residual  petroleum  product  component  of  the  tax imposed under
 section three hundred one-a of this article, (3)] which  does  not  (and
 will  not) qualify (A) [for the utility credit or reimbursement provided
 for in section three hundred one-d of this article, (B)] as "manufactur-
 ing gallonage", as such term is  defined  in  subdivision  (m)  of  this
 section,  [(C)]  OR  (B)  for  the not-for-profit organization exemption
 provided for in subdivision (h) of section three hundred one-b  of  this
 article, [or (D) for the heating exemption provided for in paragraph two
 of subdivision (d) of section three hundred one-b of this article or the
 heating  reimbursement  provided for in paragraph two of subdivision (a)
 of section three hundred one-c of this article,]  and  [(4)]  (3)  which
 will  not be used nor has been used in the fuel tank connecting with the
 engine of a vessel. No gallonage shall qualify as "commercial gallonage"
 where such  gallonage  is  eligible  for  the  [(i)  utility  credit  or
 reimbursement  under  such  section three hundred one-d of this article,
 (ii) "manufacturing exemption" under paragraph three of subdivision  (f)
 of  section  three  hundred one-a of this article, (iii)] not-for-profit
 organization exemption under subdivision (h) of  section  three  hundred
 one-b  of this article[, or (iv) heating exemption provided for in para-
 graph two of subdivision (d) of section  three  hundred  one-b  of  this
 article  or  the  heating reimbursement provided for in paragraph two of
 subdivision (a) of section three hundred one-c  of  this  article].  The
 commissioner  shall  require  such documentary proof to substantiate the
 classification of product as "commercial gallonage" as the  commissioner
 deems appropriate.
   §  23. Paragraph 1 of subdivision (f) of section 301-b of the tax law,
 as amended by section 21 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (1) Residual petroleum product and non-highway diesel motor fuel  sold
 to  an electric corporation, [as described in subdivision (a) of section
 three hundred one-d of this article,] AS DEFINED IN SUBDIVISION THIRTEEN
 S. 3009--B                         129
 
 OF SECTION TWO OF THE PUBLIC SERVICE LAW, SUBJECT TO THE SUPERVISION  OF
 THE  DEPARTMENT  OF PUBLIC SERVICE, which is registered with the depart-
 ment as a petroleum business tax direct pay permittee, and used by  such
 electric corporation to fuel generators for the purpose of manufacturing
 or producing electricity where such electric corporation provides a copy
 of a direct pay permit authorized and issued by the commissioner, to the
 petroleum  business making such sale. If so registered, such corporation
 shall be a taxpayer under this article and (i) such electric corporation
 shall file a return monthly and pay the applicable tax under this  arti-
 cle,  after  the application of allowable credits, on all such purchases
 directly to the commissioner, (ii) such electric  corporation  shall  be
 subject to all of the provisions of this article relating to the respon-
 sibilities  and liabilities of taxpayers under this article with respect
 to such residual petroleum product and non-highway diesel motor fuel.
   § 24. This act shall take effect immediately and shall apply to  taxa-
 ble  years  commencing  on or after the first of January next succeeding
 the date on which it shall have become a law; provided, however, that:
   (a) the amendments to paragraphs 6, 7 and  8  of  subdivision  (a)  of
 section  301-b of the tax law made by section four of this act shall not
 affect the repeal of such paragraphs and shall be deemed repealed there-
 with;
   (b) the amendments to the opening paragraph of section  301-c  of  the
 tax  law made by section six of this act shall be subject to the expira-
 tion and reversion of such paragraph pursuant to section 19 of part  W-1
 of  chapter 109 of the laws of 2006, as amended, when upon such date the
 provisions of section six-a of this act shall take effect;
   (c) the amendments to subdivisions (k) and (l) of section 301-c of the
 tax law made by section eight of this act shall not affect the repeal of
 such subdivisions and shall be deemed repealed therewith; and
   (d) the amendments to subdivision (j) of section 1115 of the  tax  law
 made  by section nineteen of this act shall be subject to the expiration
 and reversion of such subdivision pursuant to section 19 of part W-1  of
 chapter  109  of  the  laws of 2006, as amended, when upon such date the
 provisions of section nineteen-a of this act shall take effect.
 
                                  PART YY

   Section 1. Subdivision 8 of section 1367 of  the  racing,  pari-mutuel
 wagering and breeding law, as added by section 3 of part Y of chapter 59
 of the laws of 2021, is amended to read as follows:
   8. Notwithstanding section thirteen hundred fifty-one of this article,
 mobile  sports  wagering  gross  gaming revenue and tax revenue shall be
 excluded from sports wagering gross  gaming  revenue  and  tax  revenue.
 Mobile  sports  wagering  tax revenue shall be separately maintained and
 returned to the state for deposit into the state lottery fund for educa-
 tion aid except as otherwise provided in this subdivision. Any  interest
 and  penalties  imposed  by  the commission relating to those taxes, all
 penalties levied and collected by the commission,  and  the  appropriate
 funds,  cash or prizes forfeited from sports wagering shall be deposited
 into the state lottery fund for education. In the first fiscal  year  in
 which  mobile  sports  wagering licensees commence operations and accept
 mobile sports wagers pursuant to this section, the commission shall  pay
 into  the commercial gaming fund one percent of the state tax imposed on
 mobile sports wagering by this section to  be  distributed  for  problem
 gambling  education  and  treatment  purposes pursuant to paragraph a of
 subdivision four of section ninety-seven-nnnn of the state finance  law;
 S. 3009--B                         130
 
 provided  however,  that  such  amount  shall be equal to TWO PERCENT OF
 MOBILE SPORTS TAX REVENUE AND NO LESS THAN six million dollars for  each
 fiscal  year thereafter. In the first fiscal year in which mobile sports
 wagering  licensees  commence operations and accept mobile sports wagers
 pursuant to this section, the commission shall pay one  percent  of  the
 state  tax  imposed  on  mobile  sports  wagering by this section to the
 general fund, a program to be administered by the office of children and
 family services for a statewide youth sports  activities  and  education
 grant  program  for  the  purpose  of  providing annual awards to sports
 programs for underserved youth under the age of eighteen years; provided
 however, that such amount shall be equal to  five  million  dollars  for
 each  fiscal  year  thereafter.  The  commission  shall require at least
 monthly deposits by a platform provider  of  any  payments  pursuant  to
 subdivision seven of this section, at such times, under such conditions,
 and  in  such  depositories  as  shall  be prescribed by the state comp-
 troller. The deposits shall be deposited to  the  credit  of  the  state
 commercial  gaming  revenue fund. The commission shall require a monthly
 report and reconciliation statement to be filed with it on or before the
 tenth day of each month, with respect to  gross  revenues  and  deposits
 received and made, respectively, during the preceding month.
   §  2. This act shall take effect on the first of April next succeeding
 the date on which it shall have become a law.
 
                                  PART ZZ
 
   Section 1. Subparagraph (i) of  paragraph  (b)  of  subdivision  1  of
 section 210-B of the tax law, as amended by section 2 of part P of chap-
 ter 59 of the laws of 2017, is amended to read as follows:
   (i)  A  credit shall be allowed under this subdivision with respect to
 tangible personal property and other tangible property, including build-
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the internal revenue
 code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  internal
 revenue code, have a situs in this state and are (A) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,
 assembling, refining, mining, extracting, farming,  agriculture,  horti-
 culture, floriculture, viticulture or commercial fishing, (B) industrial
 waste  treatment facilities or air pollution control facilities, used in
 the taxpayer's trade or business, (C) research and development property,
 or (D) principally used in the ordinary course of the  taxpayer's  trade
 or  business  as  a  broker or dealer in connection with the purchase or
 sale (which shall include but not be limited to the  issuance,  entering
 into,  assumption,  offset,  assignment,  termination,  or  transfer) of
 stocks, bonds or other securities as defined  in  section  four  hundred
 seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
 defined in section four hundred seventy-five (e) of the Internal Revenue
 Code, (E) principally used in the  ordinary  course  of  the  taxpayer's
 trade  or business of providing investment advisory services for a regu-
 lated investment company as defined in section eight  hundred  fifty-one
 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
 ination  services  to  customers in connection with the purchase or sale
 (which shall include but not be limited to the issuance, entering  into,
 assumption,  offset, assignment, termination, or transfer) of securities
 as defined in section four hundred seventy-five (c)(2) of  the  Internal
 Revenue Code, (F) principally used in the ordinary course of the taxpay-
 S. 3009--B                         131
 
 er's  business  as  an  exchange  registered  as  a  national securities
 exchange within the meaning of sections 3(a)(1) and 6(a) of the  Securi-
 ties Exchange Act of 1934 or a board of trade as defined in subparagraph
 one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
 fit  corporation law or as an entity that is wholly owned by one or more
 such national securities exchanges or boards of trade and that  provides
 automation  or  technical services thereto, or (G) principally used as a
 qualified film production facility including qualified  film  production
 facilities  having a situs in an empire zone designated as such pursuant
 to article eighteen-B of the general municipal law, where  the  taxpayer
 is  providing  three  or  more services to any qualified film production
 company using the facility, including such services as a studio lighting
 grid, lighting and grip equipment, multi-line phone  service,  broadband
 information  technology  access,  industrial  scale electrical capacity,
 food services, security  services,  and  heating,  ventilation  and  air
 conditioning.  For purposes of clauses (D), (E) and (F) of this subpara-
 graph, property purchased by a  taxpayer  affiliated  with  a  regulated
 broker,  dealer,  registered  investment  advisor,  national  securities
 exchange or board of trade, is allowed a credit under  this  subdivision
 if  the  property  is  used  by its affiliated regulated broker, dealer,
 registered investment advisor, national securities exchange or board  of
 trade  in  accordance with this subdivision. For purposes of determining
 if the property is principally used in qualifying uses, the uses by  the
 taxpayer  described  in  clauses (D) and (E) of this subparagraph may be
 aggregated. In addition, the uses by the taxpayer, its affiliated  regu-
 lated  broker,  dealer and registered investment advisor under either or
 both of those clauses may be aggregated. Provided, however,  a  taxpayer
 shall  not be allowed the credit provided by clauses (D), (E) and (F) of
 this subparagraph unless the property is first placed in service  before
 October  first,  two  thousand fifteen and (i) eighty percent or more of
 the  employees  performing  the  administrative  and  support  functions
 resulting  from  or related to the qualifying uses of such equipment are
 located in this state or (ii)  the  average  number  of  employees  that
 perform  the  administrative  and  support  functions  resulting from or
 related to the qualifying uses of such equipment and are located in this
 state during the taxable year for which the credit is claimed  is  equal
 to  or greater than ninety-five percent of the average number of employ-
 ees that perform these functions and are located in  this  state  during
 the thirty-six months immediately preceding the year for which the cred-
 it  is  claimed,  or (iii) the number of employees located in this state
 during the taxable year for which the credit is claimed is equal  to  or
 greater  than  ninety percent of the number of employees located in this
 state on December thirty-first, nineteen hundred ninety-eight or, if the
 taxpayer was not a calendar year taxpayer in  nineteen  hundred  ninety-
 eight,  the  last  day  of  its first taxable year ending after December
 thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
 subject  to  tax in this state after the taxable year beginning in nine-
 teen hundred ninety-eight, then the taxpayer is not required to  satisfy
 the  employment test provided in the preceding sentence of this subpara-
 graph for its first taxable year. For purposes of clause (iii)  of  this
 subparagraph  the employment test will be based on the number of employ-
 ees located in this state on the last day of the first taxable year  the
 taxpayer  is  subject  to tax in this state. If the uses of the property
 must be aggregated to determine whether the property is principally used
 in qualifying uses, then either each affiliate using the  property  must
 satisfy  this  employment test or this employment test must be satisfied
 S. 3009--B                         132

 through the aggregation of the employees of the taxpayer, its affiliated
 regulated broker, dealer, and registered investment  adviser  using  the
 property.  For  purposes  of  clause  (A) of this subparagraph, tangible
 personal property and other tangible property shall not include property
 principally  used  by  the taxpayer in the production or distribution of
 electricity, natural gas after extraction from wells,  steam,  or  water
 delivered through pipes and mains. FOR PURPOSES OF THE CREDIT ALLOWED BY
 CLAUSE  (A)  OF  THIS  SUBPARAGRAPH,  FOR A TAXPAYER THAT IS AN ELIGIBLE
 FARMER AS PROVIDED IN PARAGRAPH (A-1) OF THIS SUBDIVISION, THE  ELIGIBLE
 COST  OF GOODS SHALL INCLUDE THE COST OF STANDARD CONSTRUCTION MATERIALS
 AND LABOR USED IN THE CONSTRUCTION OF RESIDENTIAL  HOUSING  OCCUPIED  BY
 FARM WORKERS EMPLOYED BY THE TAXPAYER TO PROVIDE LABOR IN THE PRODUCTION
 OF  THE QUALIFYING PRODUCT PRODUCED BY THE TAXPAYER, PROVIDED SUCH COSTS
 SATISFY THE OTHER REQUIREMENTS OF THIS SUBPARAGRAPH.
   § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section  606
 of  the  tax law, as amended by section 3 of part P of chapter 59 of the
 laws of 2017, is amended to read as follows:
   (A) A credit shall be allowed under this subsection  with  respect  to
 tangible personal property and other tangible property, including build-
 ings  and  structural  components  of  buildings, which are: depreciable
 pursuant to section one hundred  sixty-seven  of  the  internal  revenue
 code, have a useful life of four years or more, are acquired by purchase
 as  defined  in  section  one  hundred  seventy-nine (d) of the internal
 revenue code, have a situs in this state and are (i) principally used by
 the taxpayer in the production of goods  by  manufacturing,  processing,
 assembling,  refining,  mining, extracting, farming, agriculture, horti-
 culture, floriculture, viticulture or commercial  fishing,  (ii)  indus-
 trial  waste  treatment  facilities or air pollution control facilities,
 used in the taxpayer's trade or business, (iii) research and development
 property, (iv) principally used in the ordinary course of the taxpayer's
 trade or business as a broker or dealer in connection with the  purchase
 or  sale (which shall include but not be limited to the issuance, enter-
 ing into, assumption, offset, assignment, termination, or  transfer)  of
 stocks,  bonds  or  other  securities as defined in section four hundred
 seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
 defined  in section 475(e) of the Internal Revenue Code, (v) principally
 used in the ordinary course of  the  taxpayer's  trade  or  business  of
 providing investment advisory services for a regulated investment compa-
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code,  or  lending,  loan  arrangement  or  loan origination services to
 customers in connection with the purchase or sale (which  shall  include
 but  not  be limited to the issuance, entering into, assumption, offset,
 assignment, termination,  or  transfer)  of  securities  as  defined  in
 section  four  hundred seventy-five (c)(2) of the Internal Revenue Code,
 or (vi) principally used as a qualified film production facility includ-
 ing qualified film production facilities having a  situs  in  an  empire
 zone  designated  as  such pursuant to article eighteen-B of the general
 municipal law, where the taxpayer is providing three or more services to
 any qualified film production company using the facility, including such
 services as a studio lighting grid, lighting and grip equipment,  multi-
 line  phone service, broadband information technology access, industrial
 scale electrical capacity, food services, security services,  and  heat-
 ing,  ventilation and air conditioning. For purposes of clauses (iv) and
 (v) of this subparagraph, property purchased by  a  taxpayer  affiliated
 with  a  regulated  broker,  dealer, or registered investment adviser is
 allowed a credit under this subsection if the property is  used  by  its
 S. 3009--B                         133
 
 affiliated  regulated broker, dealer or registered investment adviser in
 accordance with this subsection. For  purposes  of  determining  if  the
 property is principally used in qualifying uses, the uses by the taxpay-
 er  described in clauses (iv) and (v) of this subparagraph may be aggre-
 gated. In addition, the uses by the taxpayer, its  affiliated  regulated
 broker, dealer and registered investment adviser under either or both of
 those clauses may be aggregated. Provided, however, a taxpayer shall not
 be  allowed the credit provided by clauses (iv) and (v) of this subpara-
 graph unless (I) eighty percent or more of the employees performing  the
 administrative  and  support  functions resulting from or related to the
 qualifying uses of such equipment are located in this state, or (II) the
 average number of employees that perform the administrative and  support
 functions  resulting  from  or  related  to  the qualifying uses of such
 equipment and are located in this state  during  the  taxable  year  for
 which  the  credit  is  claimed  is equal to or greater than ninety-five
 percent of the average number of employees that perform these  functions
 and  are  located in this state during the thirty-six months immediately
 preceding the year for which the credit is claimed, or (III) the  number
 of employees located in this state during the taxable year for which the
 credit  is  claimed  is  equal  to or greater than ninety percent of the
 number of employees located in  this  state  on  December  thirty-first,
 nineteen  hundred  ninety-eight  or,  if the taxpayer was not a calendar
 year taxpayer in nineteen hundred ninety-eight,  the  last  day  of  its
 first  taxable year ending after December thirty-first, nineteen hundred
 ninety-eight. If the taxpayer becomes subject to tax in this state after
 the taxable year beginning in nineteen hundred  ninety-eight,  then  the
 taxpayer  is not required to satisfy the employment test provided in the
 preceding sentence of this subparagraph for its first taxable year.  For
 the  purposes  of  clause (III) of this subparagraph the employment test
 will be based on the number of employees located in this  state  on  the
 last  day  of  the  first taxable year the taxpayer is subject to tax in
 this state. If the uses of the property must be aggregated to  determine
 whether the property is principally used in qualifying uses, then either
 each  affiliate  using the property must satisfy this employment test or
 this employment test must be satisfied through the  aggregation  of  the
 employees  of the taxpayer, its affiliated regulated broker, dealer, and
 registered investment adviser using the property. For purposes of clause
 (i) of this subparagraph, tangible personal property and other  tangible
 property  shall not include property principally used by the taxpayer in
 the  production  or  distribution  of  electricity,  natural  gas  after
 extraction  from  wells,  steam,  or  water  delivered through pipes and
 mains. FOR PURPOSES OF THE CREDIT ALLOWED BY CLAUSE (I) OF THIS SUBPARA-
 GRAPH, FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER AS  PROVIDED  IN  PARA-
 GRAPH ONE-A OF THIS SUBSECTION, THE ELIGIBLE COST OF GOODS SHALL INCLUDE
 THE  COST  OF  STANDARD  CONSTRUCTION  MATERIALS  AND  LABOR USED IN THE
 CONSTRUCTION OF RESIDENTIAL HOUSING OCCUPIED BY FARM WORKERS EMPLOYED BY
 THE TAXPAYER TO PROVIDE LABOR IN THE PRODUCTION OF THE QUALIFYING  PROD-
 UCT  PRODUCED  BY  THE  TAXPAYER,  PROVIDED SUCH COSTS SATISFY THE OTHER
 REQUIREMENTS OF THIS SUBPARAGRAPH.
   § 3. This act shall take effect on the first of January next  succeed-
 ing  the  date  upon which it shall have become a law and shall apply to
 tax years commencing on and after such effective date.  Effective  imme-
 diately, the addition, amendment and/or repeal of any rule or regulation
 necessary  for  the implementation of this act on its effective date are
 authorized to be made and completed on or before such effective date.
 S. 3009--B                         134
 
                                 PART AAA
 
   Section 1. Subdivision a of section 1613 of the tax law, as amended by
 chapter 426 of the laws of 2006, is amended to read as follows:
   a.  It  shall  be  the duty of the director to require that all prizes
 over five thousand dollars in any game be awarded to holders of  winning
 tickets  for  that  game as provided in this section and section sixteen
 hundred fourteen of this article. Within one week after any  drawing  or
 selection  of  prize winning lottery tickets, the division shall deliver
 to the comptroller a certified list of the tickets to which  prizes  are
 awarded  and  the amount of each such prize. Upon receipt of such certi-
 fied list and voucher of the division, moneys sufficient for the payment
 of such prizes shall be paid to the  division  from  the  lottery  prize
 account,  upon  audit  and  warrant  of  the comptroller. Moneys for the
 payment of lottery prizes shall be deposited by the director as provided
 in section sixteen hundred eleven of this article and the withdrawal  of
 such moneys for the payment of prize winners shall be subject to a check
 signed  by the director or such officers or employees of the division as
 the director may designate. The division shall each  month  provide  the
 comptroller  with  a  record of all such withdrawals from the director's
 accounts. Payment of prizes shall be made by the division to holders  of
 the  tickets  to  which  prizes  are awarded, except that payment of any
 prize drawn may be paid to the estate of a deceased prize winner, may be
 paid pursuant to a court order granted as a result of  a  proceeding  as
 provided  in  subdivision  d of this section, and except that any person
 pursuant to an appropriate judicial order may be paid the prize to which
 the winner is entitled.  THE DIVISION SHALL NOT  PUBLICLY  DISCLOSE  THE
 NAME,  ADDRESS  OR  OTHER  IDENTIFYING  INFORMATION  OF  ANY HOLDER OF A
 WINNING TICKET OR REQUIRE ANY  WINNING  TICKET  HOLDER  TO  PERFORM  ANY
 PUBLIC ACTIONS IN CONNECTION WITH THE AWARDING, PAYMENT OR COLLECTION OF
 PRIZE  MONEYS  UNLESS  A HOLDER OF A WINNING TICKET GIVES CONSENT TO THE
 DIVISION TO DO SO. The division  shall  be  discharged  of  all  further
 liability upon payment of a prize pursuant to this subdivision.
   § 2. This act shall take effect immediately.
 
                                 PART BBB
 
   Section  1.  Paragraph  (x)  of  subdivision  1 of section 1367 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  3
 of  part  Y  of  chapter  59  of the laws of 2021, is amended to read as
 follows:
   (x) "Sports wagering" means wagering on sporting events or any portion
 thereof, or on the individual performance statistics of athletes partic-
 ipating in a sporting event, [or] combination  of  sporting  events,  OR
 ANNUAL  AWARDS  OR  HONORS FOR AN INDIVIDUAL ATHLETE OR TEAM PERFORMANCE
 DURING OR THROUGHOUT A SEASON, by any  system  or  method  of  wagering,
 including,  but  not  limited to, in-person communication and electronic
 communication through internet websites accessed via a mobile device  or
 computer,  and  mobile device applications; provided however that sports
 wagers shall include, but are not limited to, single-game  bets,  teaser
 bets,  parlays,  over-under  bets,  money line, pools, in-game wagering,
 in-play bets, IN-GAME AND SEASON-LONG  proposition  bets,  and  straight
 bets;  PROVIDED  HOWEVER,  THAT SUCH IN-GAME AND SEASON-LONG PROPOSITION
 BETS SHALL BE LIMITED TO THOSE WAGERS THAT THE COMMISSION DETERMINES NOT
 TO BE AT RISK OF UNDUE INTERFERENCE, INSIDER TRADING OF INFORMATION,  OR
 OTHER  ISSUES  THAT  COULD  COMPROMISE THE INTEGRITY AND FAIRNESS OF THE
 S. 3009--B                         135
 
 SPORTS WAGERING PROGRAM; AND PROVIDED FURTHER, THAT COIN TOSS BETS  THAT
 AFFECT  THE  GAMEPLAY  OF  AN  EVENT  SHALL BE PERMITTED AT ALL SPORTING
 EVENTS UNLESS PROHIBITED BY THE COMMISSION FOR REASONS  RELATED  TO  THE
 INTEGRITY AND FAIRNESS OF THE SPORTS WAGERING PROGRAM;
   § 2. This act shall take effect immediately.
 
                                 PART CCC
 
   Section  1. 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 EXPENSES NOT IN  EXCESS  OF  ONE  THOUSAND  DOLLARS
 ACTUALLY  INCURRED AND PAID BY AN ELIGIBLE EDUCATOR FOR SCHOOL SUPPLIES.
 FOR THE PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS HAVE THE FOLLOW-
 ING MEANINGS:
   (I) "ELIGIBLE EDUCATOR" MEANS  A  KINDERGARTEN  THROUGH  GRADE  TWELVE
 TEACHER, INSTRUCTOR, COUNSELOR, PRINCIPAL OR AIDE WHO WORKED IN A SCHOOL
 FOR AT LEAST NINE HUNDRED HOURS DURING THE SCHOOL YEAR, THAT IS EMPLOYED
 BY A SCHOOL DISTRICT;
   (II)  "SCHOOL  DISTRICT" MEANS A SCHOOL DISTRICT, PUBLIC SCHOOL, BOARD
 OF COOPERATIVE EDUCATIONAL SERVICES,  SPECIAL  ACT  SCHOOL  DISTRICT  AS
 DEFINED  IN  SECTION  FOUR  THOUSAND  ONE OF THE EDUCATION LAW, APPROVED
 PRIVATE RESIDENTIAL OR  NON-RESIDENTIAL  SCHOOL  FOR  THE  EDUCATION  OF
 STUDENTS  WITH  DISABILITIES INCLUDING PRIVATE SCHOOLS ESTABLISHED UNDER
 CHAPTER EIGHT HUNDRED FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED SEVEN-
 TY-SIX, AND A STATE-SUPPORTED SCHOOL IN ACCORDANCE WITH ARTICLE  EIGHTY-
 FIVE OF THE EDUCATION LAW; AND
   (III)  "SCHOOL  SUPPLIES"  SHALL  INCLUDE  BUT NOT BE LIMITED TO PENS,
 PENCILS, MARKERS, PAPER,  CLEANING  SUPPLIES,  EDUCATIONAL  DECORATIONS,
 SENSORY  PLAY  ITEMS,  FIDGET  ITEMS, STEM EXPLORATION, FOOD AND SNACKS,
 CLOTHING, TOILETRIES, AND OTHER ESSENTIAL  ITEMS  USED  TO  PREPARE  AND
 ASSIST STUDENTS TO LEARN AT SCHOOL.
   § 2. 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 Parts A through CCC of this act shall
 be as specifically set forth in the last section of such Parts.

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