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.