Bill Text: NY A05575 | 2013-2014 | General Assembly | Introduced


Bill Title: Establishes the manufacturing preservation and enhancement act to foster economic growth and job creation; provides manufacturing enhancement incentive income and real property tax credits.

Spectrum: Strong Partisan Bill (Republican 19-1)

Status: (Introduced - Dead) 2014-03-25 - held for consideration in economic development [A05575 Detail]

Download: New_York-2013-A05575-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5575
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 1, 2013
                                      ___________
       Introduced  by M. of A. KOLB, TEDISCO, BUTLER, CORWIN -- Multi-Sponsored
         by -- M. of A.  BARCLAY, CROUCH, DUPREY, FINCH,  FITZPATRICK,  GIGLIO,
         GOODELL,  HAWLEY,  JORDAN,  P. LOPEZ,  McDONOUGH,  McKEVITT, OAKS, RA,
         RABBITT, RAIA, REILICH, SALADINO, TENNEY,  THIELE  --  read  once  and
         referred to the Committee on Economic Development
       AN  ACT to amend the economic development law, in relation to establish-
         ing an incentive program for manufacturers that maintain  or  increase
         employment,  and to amend the tax law, in relation to establishing tax
         credit incentives for manufacturing firms enrolled in the program
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Short  title. This act shall be known and may be cited as
    2  the "manufacturing preservation and enhancement act".
    3    S 2. Legislative findings and intent. The legislature finds and deter-
    4  mines that historically, manufacturing firms have helped  to  build  our
    5  state.  Today,  manufacturing  jobs are an essential part of the state's
    6  economy. Accordingly, the state should offer programs that foster growth
    7  in this important sector of the  state  economy.  The  purpose  of  this
    8  legislation  is  to establish a tax incentive program that would provide
    9  tax credits to manufacturing firms that create new jobs in the  manufac-
   10  turing sector over a specified period of time.
   11    S  3.  The economic development law is amended by adding a new article
   12  15 to read as follows:
   13                                 ARTICLE 15
   14               MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
   15  SECTION 270. DEFINITIONS.
   16          271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM.
   17          272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS.
   18          273. REPORTING.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08255-01-3
       A. 5575                             2
    1    S 270. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING  WORDS  AND
    2  TERMS  SHALL  HAVE THE FOLLOWING MEANINGS UNLESS THE CONTENT SHALL INDI-
    3  CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
    4    1. "PROGRAM" SHALL MEAN THE MANUFACTURING PRESERVATION AND ENHANCEMENT
    5  PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
    6    2.  "MANUFACTURING FIRM" SHALL MEAN AN ENTERPRISE, INCLUDING CORPORATE
    7  ENTITIES, PARTNERSHIPS AND SOLE PROPRIETORS, ENGAGED IN THE BUSINESS  OF
    8  PRODUCTION OF GOODS AND PRODUCTS FROM RAW MATERIALS.
    9    3.  "BENCHMARK"  SHALL  MEAN  A  SPECIFIC  NUMBER OF ELIGIBLE NEW JOBS
   10  CREATED IN THE STATE PURSUANT TO THE PROGRAM.
   11    4. "MEI" SHALL MEAN THE MANUFACTURING ENHANCEMENT INCENTIVE PROGRAM.
   12    S 271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM.   1.  THERE
   13  IS  HEREBY  CREATED A MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM
   14  WITHIN THE DEPARTMENT TO PROVIDE TECHNICAL AND FINANCIAL  ASSISTANCE  IN
   15  THE  FORM  OF  TAX INCENTIVES TO MANUFACTURING FIRMS THAT MEET SPECIFIED
   16  BENCHMARKS IN JOB CREATION AS ESTABLISHED BY THE COMMISSIONER.
   17    2. THE  COMMISSIONER  SHALL  DETERMINE  ELIGIBILITY  REQUIREMENTS  FOR
   18  PARTICIPATION  IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS
   19  SHALL INCLUDE THE FOLLOWING:
   20    (A) AN APPLICANT TO THE PROGRAM MAY NOT PARTICIPATE IN THE PROGRAM  IF
   21  DESIGNATED  AS  A  CERTIFIED  BUSINESS LOCATED IN AN EMPIRE ZONE CREATED
   22  PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW; AND
   23    (B) AN APPLICANT THAT HAS PREVIOUSLY PARTICIPATED IN THE  PROGRAM  MAY
   24  NOT REAPPLY FOR PARTICIPATION IN THE PROGRAM UNLESS IT CAN DOCUMENT THAT
   25  AT  THE TIME OF ITS REAPPLICATION FOR PARTICIPATION, IT HAS MAINTAINED A
   26  LEVEL OF EMPLOYMENT AT LEAST AS GREAT  AS  THE  HIGHEST  LEVEL  REQUIRED
   27  DURING ITS PREVIOUS PARTICIPATION IN THE PROGRAM.
   28    3.  APPLICATIONS  FOR  PARTICIPATION  IN THE MEI SHALL BE SUBMITTED BY
   29  EACH MANUFACTURING FIRM SEEKING TO PARTICIPATE IN THE PROGRAM, AND SHALL
   30  BE IN THE FORM AND CONTAIN SUCH  INFORMATION,  EXHIBITS  AND  SUPPORTING
   31  DATA  AS  THE  COMMISSIONER  MAY  PRESCRIBE. NO APPLICATIONS FOR PARTIC-
   32  IPATION SHALL BE ACCEPTED  AFTER  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
   33  TWENTY-ONE.
   34    4.  MANUFACTURING  FIRMS  INTERESTED IN PARTICIPATING IN THE MEI SHALL
   35  SUBMIT AN APPLICATION TO THE PROGRAM. THE COMMISSIONER SHALL REVIEW  ALL
   36  APPLICATIONS  FOR PARTICIPATION IN THE PROGRAM FOR ELIGIBILITY AND SHALL
   37  REGISTER ELIGIBLE APPLICANTS. THE COMMISSIONER SHALL PROVIDE EACH REGIS-
   38  TERED APPLICANT WITH BENCHMARKS IN JOB CREATION THAT MUST BE ACHIEVED BY
   39  THE REGISTERED APPLICANT OVER THE FOLLOWING ONE  YEAR.  SUCH  BENCHMARKS
   40  SHALL BE CONSISTENT WITH REGULATIONS TO BE PRESCRIBED BY THE COMMISSION-
   41  ER. ANNUALLY, EACH REGISTERED APPLICANT SHALL SUBMIT TO THE COMMISSIONER
   42  A  REGISTRATION  STATEMENT, TOGETHER WITH SUCH INFORMATION, EXHIBITS AND
   43  SUPPORTING DATA AS THE COMMISSIONER MAY REQUIRE. UPON SUBMISSION OF  THE
   44  SECOND  ANNUAL REGISTRATION STATEMENT, THE COMMISSIONER SHALL REVIEW THE
   45  REGISTERED APPLICANT'S FILE FOR ELIGIBILITY FOR THE TAX  INCENTIVES.  IF
   46  THE  REGISTERED  APPLICANT  HAS  MET  THE  REQUIRED  BENCHMARKS  IN  JOB
   47  CREATION, THE COMMISSIONER SHALL PROVIDE A CERTIFICATE,  VALID  FOR  THE
   48  SUCCEEDING  FIVE  TAX YEARS, CERTIFYING THAT THE REGISTERED APPLICANT IS
   49  ELIGIBLE FOR TAX CREDITS PURSUANT TO THIS ARTICLE. THE  MEI  CERTIFICATE
   50  SHALL  INCLUDE  A  DESCRIPTION OF THE PROPERTY ELIGIBLE FOR THE PROPERTY
   51  TAX BENEFIT AND SHALL SPECIFY THE EMPLOYMENT LEVEL AND TOTAL  AMOUNT  OF
   52  EMPLOYEE GROSS SALARY ELIGIBLE FOR THE WAGE CREDIT.
   53    S  272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS. DURING
   54  THE FIVE-YEAR CERTIFICATION PERIOD, CERTIFIED MANUFACTURING FIRMS  SHALL
   55  BE ELIGIBLE TO RECEIVE THE FOLLOWING TAX CREDITS:
       A. 5575                             3
    1    1.  AN  MEI  PROPERTY  TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO
    2  SECTION EIGHT HUNDRED FIFTY-ONE OF THE TAX LAW;
    3    2. AN MEI WAGE TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO SECTION
    4  EIGHT HUNDRED FIFTY-TWO OF THE TAX LAW; AND
    5    3.  AN  MEI  ENERGY  TAX  CREDIT,  WHICH SHALL BE COMPUTED PURSUANT TO
    6  SECTION EIGHT HUNDRED FIFTY-THREE OF THE TAX LAW.
    7    S 273. REPORTING. THE  COMMISSIONER  SHALL,  ON  OR  BEFORE  SEPTEMBER
    8  FIRST, TWO THOUSAND FIFTEEN, AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO
    9  THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
   10  ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY  LEADER  OF
   11  THE  ASSEMBLY  ON  THE  OPERATION  AND  ACCOMPLISHMENTS  OF  THE PROGRAM
   12  PROVIDED FOR PURSUANT TO THIS ARTICLE.
   13    S 4. The tax law is amended by adding a new  article  24  to  read  as
   14  follows:
   15                                 ARTICLE 24
   16               MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
   17  SECTION 851. MEI PROPERTY TAX CREDIT.
   18          852. MEI WAGE TAX CREDIT.
   19          853. MEI ENERGY TAX CREDIT.
   20    S  851.  MEI  PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
   21  RECEIVING AN MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE FIFTEEN  OF  THE
   22  ECONOMIC  DEVELOPMENT  LAW, AND THAT OR WHO IS SUBJECT TO PROPERTY TAXES
   23  UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF  THIS  CHAPTER,  SHALL  BE
   24  ALLOWED  A  CREDIT  AGAINST  THE  PROPERTY  TAXES ASSESSED UNDER ARTICLE
   25  NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX  YEARS  THAT
   26  THE  CERTIFICATE  IS  VALID, PROVIDED, AND TO THE EXTENT THAT, THE TAXES
   27  ASSESSED  CONSTITUTE  ELIGIBLE  REAL  PROPERTY  TAXES  AS   DEFINED   IN
   28  SUBSECTION (B) OF THIS SECTION. THE CREDIT SHALL BE COMPUTED PURSUANT TO
   29  THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
   30    (B) DEFINITION. THE TERM "ELIGIBLE REAL PROPERTY TAXES" SHALL MEAN TAX
   31  IMPOSED  ON REAL PROPERTY WHICH HAS BEEN CERTIFIED AS MEI ELIGIBLE PROP-
   32  ERTY PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT  LAW.    IN
   33  ADDITION,  THE  TERM "ELIGIBLE REAL PROPERTY TAXES" INCLUDES PAYMENTS IN
   34  LIEU OF TAXES MADE BY THE TAXPAYER TO THE STATE, A MUNICIPAL CORPORATION
   35  OR A PUBLIC BENEFIT CORPORATION PURSUANT TO A WRITTEN AGREEMENT  ENTERED
   36  INTO  BY  THE  TAXPAYER  AND  THE STATE, MUNICIPAL CORPORATION OR PUBLIC
   37  BENEFIT CORPORATION.
   38    (C) COMPUTATION OF  PROPERTY  TAX  CREDIT.  THE  PROPERTY  TAX  CREDIT
   39  DESCRIBED  IN  THIS  SECTION SHALL BE A FLAT TEN PERCENT OF THE PROPERTY
   40  TAX ASSESSED.
   41    S 852. MEI WAGE TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER
   42  RECEIVING  AN  MEI  CERTIFICATE THAT HAS BEEN ISSUED PURSUANT TO ARTICLE
   43  FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS  SUBJECT  TO
   44  TAXES  UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL
   45  BE ALLOWED A CREDIT AGAINST THE TAXES ASSESSED UNDER ARTICLE  NINE-A  OR
   46  ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF-
   47  ICATE  IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS
   48  OF SUBSECTION (C) OF THIS SECTION.
   49    (B) DEFINITIONS. THE TERM "ELIGIBLE WAGES" SHALL MEAN THE TOTAL AMOUNT
   50  OF EMPLOYEE GROSS SALARY ELIGIBLE FOR  THE  WAGE  TAX  CREDIT,  AS  SUCH
   51  AMOUNT  IS  SPECIFIED  IN THE MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE
   52  FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW.
   53    (C) COMPUTATION OF WAGE TAX CREDIT. (1) DURING THE FIRST TAX  YEAR  OF
   54  THE  FIVE-YEAR  PERIOD FOR WHICH A VALID MEI CERTIFICATE HAS BEEN ISSUED
   55  PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC  DEVELOPMENT  LAW,  PROVIDED
   56  THE  TAXPAYER  HAS  MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE REQUIRE-
       A. 5575                             4
    1  MENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC
    2  DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF ONE AND  ONE-
    3  HALF  PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY
    4  THE TAXPAYER. IF THE TAXPAYER INCREASES EMPLOYMENT DURING THIS TAX YEAR,
    5  AND  EXCEEDS  THE  LEVEL OF EMPLOYMENT REQUIRED BY THE MEI AS DEFINED IN
    6  ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING AND  MAINTAINING
    7  ADDITIONAL  EMPLOYEES  AND  PAYING  ADDITIONAL  WAGES OVER AND ABOVE THE
    8  ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CRED-
    9  IT OF TWO AND ONE-HALF PERCENT OF THE TOTAL AMOUNT BY  WHICH  THE  WAGES
   10  ACTUALLY  PAID  AS  A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED
   11  THE ELIGIBLE WAGES.
   12    (2) DURING THE SECOND TAX YEAR OF THE FIVE-YEAR  PERIOD  FOR  WHICH  A
   13  VALID MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE
   14  ECONOMIC  DEVELOPMENT  LAW,  PROVIDED  THE  TAXPAYER  HAS MAINTAINED THE
   15  EMPLOYMENT AND ELIGIBLE  WAGE  REQUIREMENTS  SPECIFIED  BY  THE  MEI  AS
   16  DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, THE TAXPAYER
   17  SHALL  BE  ALLOWED  A  CREDIT  OF  ONE AND ONE-HALF PERCENT OF THE TOTAL
   18  AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY THE TAXPAYER; HOWEVER,  IF
   19  THE  TAXPAYER INCREASED EMPLOYMENT IN THE PRECEDING TAX YEAR AND CLAIMED
   20  THE TWO AND ONE-HALF PERCENT CREDIT FOR EMPLOYMENT AND PAYMENT OF  WAGES
   21  IN  EXCESS  OF  THE  MEI REQUIREMENTS PURSUANT TO ARTICLE FIFTEEN OF THE
   22  ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF  ONE
   23  AND  ONE-HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY
   24  PAID BY THE TAXPAYER DURING THE PRECEDING TAX YEAR, PROVIDED THE TAXPAY-
   25  ER HAS MAINTAINED THE INCREASED EMPLOYMENT AND  SALARY  LEVELS.  IF  THE
   26  TAXPAYER  AGAIN  INCREASES EMPLOYMENT, HIRING AND MAINTAINING ADDITIONAL
   27  EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE  THE  PREVIOUS  TAX
   28  YEAR'S AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CREDIT OF TWO
   29  AND  ONE-HALF  PERCENT  OF  THE TOTAL AMOUNT BY WHICH THE WAGES ACTUALLY
   30  PAID AS A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED  THE  WAGES
   31  SUBJECT TO THE ONE AND ONE-HALF PERCENT CREDIT.
   32    S  853.  MEI  ENERGY  TAX CREDIT. (A) ALLOWANCE OF CREDIT.  A TAXPAYER
   33  RECEIVING AN MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN
   34  OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO  IS  SUBJECT  TO  TAXES
   35  UNDER  ARTICLE  NINE-A  OR  ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL BE
   36  ALLOWED A CREDIT AGAINST THE TAXES  ASSESSED  UNDER  ARTICLE  NINE-A  OR
   37  ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF-
   38  ICATE  IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS
   39  OF SUBSECTION (C) OF THIS SECTION.
   40    (B) DEFINITION. THE  TERM  "ELIGIBLE  ENERGY  COSTS"  SHALL  MEAN  THE
   41  AMOUNTS  PAID BY THE TAXPAYER FOR ELECTRICITY, NATURAL GAS, OR ANY OTHER
   42  ENERGY PRODUCT OR SERVICE WHICH THE TAXPAYER HAS USED IN  THE  OPERATION
   43  OF  A  MEI  CERTIFIED  MANUFACTURING  FIRM  FACILITY PURSUANT TO ARTICLE
   44  FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW.
   45    (C) COMPUTATION OF ENERGY CREDIT. (1) IF THE TAXPAYER HAS PAID  ELIGI-
   46  BLE  ENERGY  COSTS DURING THE FIRST TAX YEAR OF THE FIVE-YEAR PERIOD FOR
   47  WHICH A VALID MEI  CERTIFICATE  HAS  BEEN  ISSUED  PURSUANT  TO  ARTICLE
   48  FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED THE TAXPAYER HAS MAIN-
   49  TAINED  THE  EMPLOYMENT AND ELIGIBLE WAGES REQUIREMENTS SPECIFIED BY THE
   50  MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT  LAW,  THE
   51  TAXPAYER  SHALL  BE  ALLOWED AN ENERGY CREDIT OF TWENTY-FIVE DOLLARS PER
   52  EMPLOYEE REQUIRED BY THE MEI  AS  DEFINED  IN  ARTICLE  FIFTEEN  OF  THE
   53  ECONOMIC  DEVELOPMENT  LAW.  IF THE TAXPAYER INCREASES EMPLOYMENT DURING
   54  THIS TAX YEAR, AND EXCEEDS THE LEVEL OF EMPLOYMENT REQUIRED BY  THE  MEI
   55  AS  DEFINED  IN  ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING
   56  AND MAINTAINING ADDITIONAL EMPLOYEES AND PAYING  ADDITIONAL  WAGES  OVER
       A. 5575                             5
    1  AND  ABOVE  THE  ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN
    2  ADDITIONAL ENERGY CREDIT OF FIFTY DOLLARS PER EACH ADDITIONAL  EMPLOYEE.
    3  THE  ENERGY  TAX  CREDIT  SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY
    4  COSTS ACTUALLY PAID BY THE TAXPAYER.
    5    (2)  IF  THE TAXPAYER HAS PAID ELIGIBLE ENERGY COSTS DURING THE SECOND
    6  TAX YEAR OF THE FIVE-YEAR PERIOD FOR WHICH A VALID MEI  CERTIFICATE  HAS
    7  BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW,
    8  PROVIDED  THE  TAXPAYER  HAS MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE
    9  REQUIREMENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN  OF  THE
   10  ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED AN ENERGY CREDIT
   11  OF  TWENTY-FIVE  DOLLARS  PER EMPLOYEE REQUIRED BY THE MEI AS DEFINED IN
   12  ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW; HOWEVER, IF THE TAXPAY-
   13  ER INCREASED EMPLOYMENT DURING THE PRECEDING TAX YEAR  AND  CLAIMED  THE
   14  ADDITIONAL  ENERGY  TAX CREDIT OF FIFTY DOLLARS PER ADDITIONAL EMPLOYEE,
   15  THE TAXPAYER SHALL BE  ALLOWED  A  CREDIT  OF  TWENTY-FIVE  DOLLARS  PER
   16  EMPLOYEE UP TO THE NUMBER OF EMPLOYEES CLAIMED IN THE PREVIOUS TAX YEAR,
   17  PROVIDED  THE  TAXPAYER HAS MAINTAINED THE INCREASED EMPLOYMENT AND WAGE
   18  LEVELS. IF THE TAXPAYER AGAIN INCREASES  EMPLOYMENT,  HIRING  ADDITIONAL
   19  EMPLOYEES  AND  PAYING  ADDITIONAL WAGES OVER AND ABOVE THE PREVIOUS TAX
   20  YEAR'S AMOUNTS, THE TAXPAYER SHALL BE ALLOWED AN  ADDITIONAL  CREDIT  OF
   21  FIFTY DOLLARS FOR EACH ADDITIONAL EMPLOYEE HIRED DURING THE SECOND YEAR.
   22  THE  ENERGY  TAX  CREDIT  SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY
   23  COSTS ACTUALLY PAID BY THE TAXPAYER.
   24    S 5. Section 210 of the tax law is amended by adding three new  subdi-
   25  visions 46, 47 and 48 to read as follows:
   26    46. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
   27  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
   28  FIFTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   29    (B)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY
   30  TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
   31  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)  OF  SUBDIVI-
   32  SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
   33  IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
   34  AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
   35  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
   36  THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   37    47. MEI WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL  BE
   38  ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO BE COMPUTED
   39  AS  PROVIDED IN SECTION EIGHT HUNDRED FIFTY-TWO OF THIS CHAPTER, AGAINST
   40  THE TAX IMPOSED BY THIS ARTICLE.
   41    (B) CARRYOVERS. THE CREDIT ALLOWED  UNDER  THIS  SUBDIVISION  FOR  ANY
   42  TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
   43  HIGHER  OF  THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
   44  SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
   45  IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
   46  AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
   47  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED  FROM
   48  THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   49    48.  MEI  ENERGY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
   50  BE ALLOWED A CREDIT AGAINST THE TAX  IMPOSED  BY  THIS  ARTICLE,  TO  BE
   51  COMPUTED  AS PROVIDED IN SECTION EIGHT HUNDRED FIFTY-THREE OF THIS CHAP-
   52  TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   53    (B) CARRYOVERS. THE CREDIT ALLOWED  UNDER  THIS  SUBDIVISION  FOR  ANY
   54  TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
   55  HIGHER  OF  THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
   56  SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
       A. 5575                             6
    1  IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
    2  AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
    3  BE CARRIED OVER TO THE FOLLOWING YEAR  OR YEARS AND MAY BE DEDUCTED FROM
    4  THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
    5    S  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    6  of the tax law, is amended by adding three new clauses  (xxxv),  (xxxvi)
    7  and (xxxvii) to read as follows:
    8  (XXXV) MEI PROPERTY TAX CREDIT       AMOUNT OF MEI PROPERTY TAX CREDIT
    9  UNDER SUBSECTION (VV)                UNDER SUBDIVISION FORTY-SIX OF
   10                                       SECTION TWO HUNDRED TEN
   11  (XXXVI) MEI WAGE TAX CREDIT UNDER    AMOUNT OF MEI WAGE TAX CREDIT
   12  SUBSECTION (WW)                      UNDER SUBDIVISION FORTY-SEVEN OF
   13                                       SECTION TWO HUNDRED TEN
   14  (XXXVII) MEI ENERGY TAX CREDIT UNDER AMOUNT OF MEI ENERGY TAX CREDIT
   15  SUBSECTION (XX)                      UNDER SUBDIVISION FORTY-EIGHT OF
   16                                       SECTION TWO HUNDRED TEN
   17    S  7.  Section  606  of  the  tax  law  is amended by adding three new
   18  subsections (vv), (ww) and (xx) to read as follows:
   19    (VV) MEI PROPERTY TAX CREDIT. (1)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER
   20  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT
   21  HUNDRED FIFTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
   22  CLE.
   23    (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
   24  THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
   25  SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
   26  CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
   27  HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
   28  SHALL BE PAID THEREON.
   29    (WW) MEI WAGE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
   30  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  EIGHT  HUNDRED
   31  FIFTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   32    (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
   33  THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
   34  SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
   35  CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
   36  HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
   37  SHALL BE PAID THEREON.
   38    (XX)  MEI ENERGY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
   39  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
   40  FIFTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   41    (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
   42  THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
   43  SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
   44  CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
   45  HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
   46  SHALL BE PAID THEREON.
   47    S 8. Subparagraph (vi) of paragraph (a) of subdivision  1  of  section
   48  210  of  the tax law, as amended by section 1 of part C of chapter 56 of
   49  the laws of 2011, is amended to read as follows:
   50    (vi) for taxable years beginning on or after January thirty-first, two
   51  thousand seven, the amount prescribed by this paragraph for  a  taxpayer
   52  which  is  a  qualified  New York manufacturer, shall be computed at the
   53  rate of six and one-half (6.5) percent  of  the  taxpayer's  entire  net
       A. 5575                             7
    1  income  base. For taxable years beginning on or after January first, two
    2  thousand twelve [and before January first, two  thousand  fifteen],  the
    3  amount  prescribed  by this paragraph for a taxpayer which is [an eligi-
    4  ble]  A qualified New York manufacturer shall be computed at the rate of
    5  three and one-quarter (3.25) percent of the taxpayer's entire net income
    6  base. The term "manufacturer" shall mean a  taxpayer  which  during  the
    7  taxable  year is principally engaged in the production of goods by manu-
    8  facturing, processing, assembling, refining, mining,  extracting,  farm-
    9  ing,  agriculture, horticulture, floriculture, viticulture or commercial
   10  fishing. However, the generation and distribution  of  electricity,  the
   11  distribution of natural gas, and the production of steam associated with
   12  the  generation  of electricity shall not be qualifying activities for a
   13  manufacturer under this subparagraph. Moreover, the combined group shall
   14  be considered a "manufacturer" for purposes of this subparagraph only if
   15  the combined group during the taxable year is principally engaged in the
   16  activities set forth in this paragraph, or any  combination  thereof.  A
   17  taxpayer  or  a  combined group shall be "principally engaged" in activ-
   18  ities described above if, during  the  taxable  year,  more  than  fifty
   19  percent of the gross receipts of the taxpayer or combined group, respec-
   20  tively,  are  derived  from  receipts from the sale of goods produced by
   21  such activities. In computing a combined group's gross receipts,  inter-
   22  corporate  receipts  shall be eliminated. A "qualified New York manufac-
   23  turer" is a manufacturer  which  has  property  in  New  York  which  is
   24  described in clause (A) of subparagraph (i) of paragraph (b) of subdivi-
   25  sion  twelve  of  this section and either (I) the adjusted basis of such
   26  property for federal income tax purposes at the  close  of  the  taxable
   27  year  is  at  least  one  million  dollars  or  (II) all of its real and
   28  personal property is located in New York. In addition, a "qualified  New
   29  York  manufacturer"  means  a  taxpayer  which is defined as a qualified
   30  emerging technology company under paragraph (c) of  subdivision  one  of
   31  section  thirty-one  hundred two-e of the public authorities law regard-
   32  less of the ten million dollar limitation expressed in subparagraph  one
   33  of  such paragraph (c). [The commissioner shall establish guidelines and
   34  criteria that specify requirements by which a manufacturer may be  clas-
   35  sified  as  an  eligible  qualified New York manufacturer.  Criteria may
   36  include but not be limited to factors such as regional unemployment, the
   37  economic impact that manufacturing has  on  the  surrounding  community,
   38  population decline within the region and median income within the region
   39  in  which  the manufacturer is located. In establishing these guidelines
   40  and criteria, the commissioner shall endeavor that the total annual cost
   41  of the lower rates shall not exceed twenty-five million dollars.]
   42    S 9. Subparagraph 1 of paragraph (b) of subdivision 1 of  section  210
   43  of  the  tax  law, as amended by section 1 of part GG-1 of chapter 57 of
   44  the laws of 2008, is amended to read as follows:
   45    (1) The amount prescribed by this paragraph for taxable  years  begin-
   46  ning  before January first, two thousand eight shall be computed at .178
   47  percent for each dollar of the taxpayer's total business and  investment
   48  capital, or the portion thereof allocated within the state as hereinaft-
   49  er  provided. For taxable years beginning on or after January first, two
   50  thousand eight,  the  amount  prescribed  by  this  paragraph  shall  be
   51  computed at .15 percent for each dollar of the taxpayer's total business
   52  and  investment  capital,  or  the  portion thereof allocated within the
   53  state as hereinafter provided. However, in the  case  of  a  cooperative
   54  housing  corporation as defined in the internal revenue code, the appli-
   55  cable rate shall be .04 percent.   FOR TAXABLE  YEARS  BEGINNING  ON  OR
   56  AFTER  JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, THE AMOUNT PRESCRIBED BY
       A. 5575                             8
    1  THIS PARAGRAPH FOR A TAXPAYER WHICH IS A QUALIFIED NEW YORK MANUFACTURER
    2  SHALL BE COMPUTED AT THE RATE OF .075 PERCENT OF  THE  TAXPAYER'S  TOTAL
    3  BUSINESS AND INVESTMENT CAPITAL, OR THE PORTION THEREOF ALLOCATED WITHIN
    4  THE  STATE  AS  HEREINAFTER  PROVIDED.  In  no  event  shall  the amount
    5  prescribed by this paragraph exceed three hundred fifty thousand dollars
    6  for qualified New York manufacturers and for  all  other  taxpayers  ten
    7  million  dollars  for taxable years beginning on or after January first,
    8  two thousand eight but before January first, two thousand eleven and one
    9  million dollars for taxable years beginning on or after  January  first,
   10  two thousand eleven.
   11    S  10. Clause (B) of subparagraph (ii) of paragraph (c) of subdivision
   12  1 of section 210 of the tax law, as amended by section 2 of  part  C  of
   13  chapter 56 of the laws of 2011, is amended to read as follows:
   14    (B)  For  taxable years beginning on or after January first, two thou-
   15  sand twelve [and before January first, two thousand fifteen], the amount
   16  prescribed by this paragraph for [an  eligible]  A  qualified  New  York
   17  manufacturer  shall  be  computed at the rate of seventy-five hundredths
   18  (.75) percent  of  the  taxpayer's  minimum  taxable  income  base.  For
   19  purposes  of  this  clause,  the  term  "[eligible]  qualified  New York
   20  manufacturer" shall have the same meaning as  in  subparagraph  (vi)  of
   21  paragraph (a) of this subdivision.
   22    S  11. Subparagraph 5 of paragraph (d) of subdivision 1 of section 210
   23  of the tax law, as added by section 3 of part C of  chapter  56  of  the
   24  laws of 2011, is amended to read as follows:
   25    (5)  For  taxable years beginning on or after January first, two thou-
   26  sand twelve [and  before  January  first,  two  thousand  fifteen],  the
   27  amounts  prescribed  in  subparagraphs one and four of this paragraph as
   28  the fixed dollar minimum tax for [an  eligible]  A  qualified  New  York
   29  manufacturer  shall  be one-half of the amounts stated in those subpara-
   30  graphs.  For purposes of this subparagraph, the term "[eligible]  quali-
   31  fied  New  York manufacturer" shall have the same meaning as in subpara-
   32  graph (vi) of paragraph (a) of this subdivision.
   33    S 12. This act shall take effect on  the  one  hundred  eightieth  day
   34  after it shall have become a law and shall apply to taxable years begin-
   35  ning  on  or after January 1, 2014 and before January 1, 2021; provided,
   36  however, that the addition, amendment and/or repeal of any rule or regu-
   37  lation necessary for the implementation of this  act  on  its  effective
   38  date are authorized and directed to be made on or before such date.
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