Bill Text: NY A02552 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to providing insurance corporations with a tax credit for investments made in rural business growth funds; establishes the New York agriculture and rural jobs fund.

Spectrum: Bipartisan Bill

Status: (Introduced) 2021-01-19 - referred to ways and means [A02552 Detail]

Download: New_York-2021-A02552-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          2552

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 19, 2021
                                       ___________

        Introduced  by  M.  of  A. WOERNER, LUPARDO, BUTTENSCHON, SIMON, SAYEGH,
          SCHMITT, BLANKENBUSH, J. M. GIGLIO, SMULLEN, THIELE, GUNTHER, DARLING,
          JEAN-PIERRE, CRUZ, FERNANDEZ, ASHBY, HAWLEY, MONTESANO, NORRIS,  WALC-
          ZYK,  MORINELLO,  B. MILLER,  JONES  -- Multi-Sponsored by -- M. of A.
          BARCLAY, COOK, HYNDMAN, NOLAN -- read once and referred to the Commit-
          tee on Ways and Means

        AN ACT to amend the tax law, in relation to providing  insurance  corpo-
          rations  with  a  tax  credit  for  investments made in rural business
          growth funds; and to amend the  state  finance  law,  in  relation  to
          establishing the New York agriculture and rural jobs fund

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The tax law is amended by adding a new section 45  to  read
     2  as follows:
     3    § 45. New York agriculture and rural jobs credit. (a) Definitions. For
     4  the purpose of this section the following terms shall have the following
     5  meanings:
     6    (1)  "Affiliate"  means  a person that directly, or indirectly through
     7  one or more intermediaries, controls, is  controlled  by,  or  is  under
     8  common  control  with  another person. For the purposes of this subdivi-
     9  sion, a person is "controlled by"  another  person  if  the  controlling
    10  person  holds,  directly or indirectly, the majority voting or ownership
    11  interest in the controlled person or has  control  over  the  day-to-day
    12  operations of the controlled person by contract or by law.
    13    (2)  "Closing  date"  means  the date on which a rural business growth
    14  fund has collected all of the amounts specified by subparagraphs (A) and
    15  (B) of paragraph seven of subdivision (b) of this section.
    16    (3) "Credit-eligible capital contribution" means an investment of cash
    17  by a person in a rural business growth fund that equals the amount spec-
    18  ified on a tax credit certificate issued by the department under subpar-
    19  agraph (B) of paragraph six of subdivision (b) of  this  section.    The

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01231-01-1

        A. 2552                             2

     1  investment  shall  purchase  an  equity  interest  in the rural business
     2  growth fund or purchase, at par value  or  premium,  a  debt  instrument
     3  issued  by  the rural growth fund that meets all of the following crite-
     4  ria:
     5    (A) The debt instrument has an original maturity date of at least five
     6  years after the date of issuance.
     7    (B)  The  debt  instrument has a repayment schedule that is not faster
     8  than a level principal amortization over five years.
     9    (C) The debt instrument has  no  interest,  distribution,  or  payment
    10  features  dependent on the rural business growth fund's profitability or
    11  the success of the rural growth investments.
    12    (4) "Eligible investment authority" means the  amount  stated  on  the
    13  notice issued under subparagraph (A) of paragraph six of subdivision (b)
    14  of  this  section  certifying  the  rural business growth fund. At least
    15  sixty-five percent of a rural business growth fund's eligible investment
    16  authority shall be comprised of credit-eligible capital contributions.
    17    (5) "Jobs created" means the number of persons  employed  by  a  rural
    18  business  concern having received a growth investment from a rural busi-
    19  ness growth fund during the taxable year which shall  be  determined  by
    20  ascertaining  the  number of such individuals employed full-time by such
    21  rural business concern on the thirty-first day of March,  the  thirtieth
    22  day  of June, the thirtieth day of September and the thirty-first day of
    23  December during each taxable year following its initial  growth  invest-
    24  ment,  by  adding together the number of such individuals ascertained on
    25  each of such dates and dividing the sum so obtained  by  the  number  of
    26  dates  occurring within such taxable year in the amount that such number
    27  exceeds the jobs retained number. An individual employed full-time means
    28  an employee in a job consisting of at least thirty-five hours per  week,
    29  or  two  or  more employees who are in jobs that together constitute the
    30  equivalent of a job of at least thirty-five hours per week.
    31    (6) "Jobs retained" means the number of persons employed  by  a  rural
    32  business  concern having received a growth investment from a rural busi-
    33  ness growth fund during the taxable year which shall  be  determined  by
    34  ascertaining  the  number of such individuals employed full-time by such
    35  rural business concern on the thirty-first day of March,  the  thirtieth
    36  day  of June, the thirtieth day of September and the thirty-first day of
    37  December during the year in which the rural  business  concern  received
    38  its  initial  growth  investment  from  a rural business growth fund, by
    39  adding together the number of such individuals ascertained  on  each  of
    40  such  dates  and  dividing  the  sum  so obtained by the number of dates
    41  occurring within such taxable year.  An  individual  employed  full-time
    42  means  an employee in a job consisting of at least thirty-five hours per
    43  week, or two or more employees who are in jobs that together  constitute
    44  the equivalent of a job of at least thirty-five hours per week.
    45    (7) A business's "principal business operations" are in New York state
    46  if New York state is its principal place of business and at least eighty
    47  percent of the business's employees work in New York state, or the busi-
    48  ness  has  agreed  to  use  the proceeds of a rural growth investment to
    49  relocate at least eighty percent of its  employees  to  New  York  state
    50  within  twelve  months  of  receiving the investment by a rural business
    51  growth fund.
    52    (8) "Rural area" shall have the same meaning as defined in subdivision
    53  seven of section four hundred eighty-one of the executive law.
    54    (9) "Rural business concern" means an operating company that,  at  the
    55  time of the initial investment in the company by a rural business growth
    56  fund employs no more than one hundred fifty full-time equivalent employ-

        A. 2552                             3

     1  ees  or  has  earned not more than ten million dollars in net income for
     2  the preceding taxable year, and meets either of the following criteria:
     3    (A)  The  business's  principal  business  operations are located in a
     4  rural area in New York state and is an  agricultural  enterprise  or  is
     5  related to the use of agricultural products or forest products, or is an
     6  enterprise  in  one of the following industries: manufacturing, computer
     7  hardware or software, tourism, agribusiness development to stimulate the
     8  development and implementation of new and alternative production,  proc-
     9  essing,  storage, distribution and marketing technology and improvements
    10  for New York food, agriculture and forest products or if not engaged  in
    11  any  of  these industries, the department determines that the investment
    12  will be beneficial to the qualified location and the economic growth  of
    13  New York state; or
    14    (B)  The  business  produces or provides any goods principally used by
    15  farmers, ranchers, or producers and harvesters of  aquatic  products  in
    16  their  business operations, or is involved in the processing and market-
    17  ing of agricultural products, farm supply, and input suppliers, provided
    18  that such business is located in a municipality, as defined  in  section
    19  four  hundred  eighty-one of the executive law, in New York state with a
    20  population of less than fifty  thousand.    For  the  purposes  of  this
    21  section, "net income" means federal adjusted gross income as required to
    22  be reported under the Internal Revenue Code less federal and state taxes
    23  imposed on or measured by income.  Any business which is classified as a
    24  rural  business  concern  at  the time of the initial investment in said
    25  business by a rural business growth fund shall remain  classified  as  a
    26  rural  business  concern  and may receive follow-on investments from any
    27  rural business growth fund, and such follow-on investments shall qualify
    28  as a rural growth investment provided it otherwise meets the  definition
    29  of  rural business concern with the exception of the employee limitation
    30  and net income limitation in such definition.
    31    (10) "Rural business growth fund" means an  entity  certified  by  the
    32  department under this section.
    33    (11)  "Rural growth investment" means any capital or equity investment
    34  in a rural business concern or any loan to a rural business concern with
    35  a term of at least one year.
    36    (12) "Tax credit certificate" means the document issued by the depart-
    37  ment to a person who has made a credit-eligible capital contribution  to
    38  a rural business growth fund.
    39    (13)  "Taxable  year"  when  used in reference to an insurance company
    40  means the calendar year ending on the thirty-first day of December  next
    41  preceding  the  day  the  annual report is required to be returned under
    42  subdivision (d) of this section.
    43    (14) "Department", as used in this section, means  the  department  of
    44  economic development.
    45    (b)  Certification.  (1) On and after August first, two thousand twen-
    46  ty-two, an applicant that has developed a business  plan  to  invest  in
    47  rural  business  concerns  in  this state and has successfully solicited
    48  private investors to make capital contributions in support of  the  plan
    49  may apply to the department for certification as a rural business growth
    50  fund. The application shall include all of the following:
    51    (A)  The  total  eligible investment authority sought by the applicant
    52  under the business plan;
    53    (B) Documents and other evidence sufficient to prove that  the  appli-
    54  cant meets all of the following criteria: (i) The applicant or an affil-
    55  iate of the applicant is licensed as a rural business investment company

        A. 2552                             4

     1  under  7  U.S.C. 2009cc, or as a small business investment company under
     2  15 U.S.C. 681.
     3    (ii)  As  of  the date the application is submitted, the applicant has
     4  invested more than one hundred million dollars in operating companies in
     5  rural areas located inside or outside of New York  state  and  at  least
     6  twenty-five  million  dollars in operating companies located in New York
     7  state.  In computing investments under this subdivision,  the  applicant
     8  may include investments made by affiliates of the applicant.
     9    (C)  An estimate of the number of (i) jobs that will be created in the
    10  rural areas of New York state as  a  result  of  the  applicant's  rural
    11  growth  investments,  (ii) jobs that will be retained in the rural areas
    12  of New York state as a result of the  applicants  rural  growth  invest-
    13  ments, and (iii) the anticipated average wage per job.
    14    (D)  A  revenue  impact  assessment for the applicant's proposed rural
    15  growth investments prepared by a nationally recognized third-party inde-
    16  pendent economic forecasting firm using a dynamic  economic  forecasting
    17  model.    The  revenue  impact  assessment shall analyze the applicant's
    18  business plan over the ten years following the date the  application  is
    19  submitted to the department.
    20    (E)  A  signed  affidavit from each investor successfully solicited by
    21  the applicant to make a credit eligible capital contribution in  support
    22  of  the  business  plan. Each affidavit shall include information suffi-
    23  cient for the department to identify the investor and  shall  state  the
    24  amount of the investor's credit-eligible capital contribution.
    25    (F) A nonrefundable application fee of five thousand dollars.
    26    (G) A strategy, as part of its business plan, to prioritize efforts to
    27  invest  in  businesses  that  are  environmentally sensitive and utilize
    28  resources that promote a clean environment and energy conservation.
    29    (2) The department shall review and make a determination with  respect
    30  to  each  application  submitted under paragraph one of this subdivision
    31  within thirty days of receipt. The department shall make  determinations
    32  on  the applications in the order in which the applications are received
    33  by the department. Applications received by the department on  the  same
    34  day  shall  be  deemed  to  have been received simultaneously. Except as
    35  provided in paragraph four of  subdivision  (c)  of  this  section,  the
    36  department  shall  not  approve more than one hundred million dollars in
    37  eligible investment authority or more than sixty-five million dollars in
    38  credit-eligible capital contributions.
    39    (3) The department shall deny  an  application  submitted  under  this
    40  section  if any of the following are true: (A) The application is incom-
    41  plete.
    42    (B) The application fee is not paid in full.
    43    (C) The applicant does not  satisfy  all  the  criteria  described  in
    44  subparagraph (B) of paragraph one of this subdivision.
    45    (D)  The revenue impact assessment submitted under subparagraph (D) of
    46  paragraph one of this subdivision does not demonstrate that  the  appli-
    47  cant's  business  plan will result in a positive economic impact on this
    48  state over a ten-year period that exceeds the  credit  eligible  capital
    49  contributions sought by the applicant.
    50    (E)  The credit-eligible capital contributions described in affidavits
    51  submitted under subparagraph (E) of paragraph one of this subdivision do
    52  not equal sixty-five percent of the total amount of eligible  investment
    53  authority sought under the applicant's business plan.
    54    (F) The department has already approved the maximum amount of eligible
    55  investment  authority  and credit-eligible capital contributions allowed
    56  under paragraph two of this subdivision.

        A. 2552                             5

     1    (4) If the department denies an application under paragraph  three  of
     2  this  subdivision, the department shall send notice of its determination
     3  of the applicant. The notice shall include the reasons that the applica-
     4  tion was denied. If the application was denied for any reason other than
     5  the  reason  specified  in  subparagraph  (F) of paragraph three of this
     6  subdivision, the applicant may provide  additional  information  to  the
     7  department  to  complete,  clarify,  or cure defects in the application.
     8  The additional information must be submitted within  thirty  days  after
     9  the  date the notice of denial was sent by the department. If the person
    10  or entity submits additional information within thirty days, the depart-
    11  ment shall reconsider the application within thirty days after receiving
    12  such additional information. If after submission of additional  informa-
    13  tion, the application is approved, then the submission date shall be the
    14  date  of  the  original  submission of the application. If the person or
    15  entity does not submit additional information within thirty  days  after
    16  the  notice  of denial was sent, the applicant may submit a new applica-
    17  tion with a new submission date at any time.
    18    (5) If approving multiple simultaneously submitted applications  would
    19  result  in exceeding the overall eligible investment limit prescribed by
    20  paragraph two of this subdivision, the department  shall  proportionally
    21  reduce the eligible investment authority and the credit-eligible capital
    22  contributions  for  each  approved  application  as  necessary  to avoid
    23  exceeding the limit.
    24    (6) If the department approves such application, the department shall:
    25  (A) issue a written notice certifying that the applicant qualifies as  a
    26  rural  business growth fund and specifying the amount of the applicant's
    27  eligible investment authority and the number of jobs  created  and  jobs
    28  retained required of the rural business growth fund determined by multi-
    29  plying  the estimated number of jobs created and jobs retained set forth
    30  in the rural business growth  fund's  application  by  a  fraction,  the
    31  numerator  of  which  is  the  investment authority awarded to the rural
    32  business growth fund and the denominator  of  which  is  the  investment
    33  authority  for which the rural business growth fund applied; (B) to each
    34  investor whose affidavit was included in the application,  issue  a  tax
    35  credit certificate specifying the amount of the investor's credit-eligi-
    36  ble  capital  contribution;  and (C) to the commissioner, a copy of each
    37  tax credit certificate issued under subparagraph (B) of this paragraph.
    38    (7) A rural business growth fund shall complete all of  the  following
    39  within sixty days of receiving the written notice issued under paragraph
    40  six of this subdivision:
    41    (A) Collect the credit-eligible capital contributions from each inves-
    42  tor whose credit-eligible capital contributions are described in affida-
    43  vits  submitted  pursuant  to  subparagraph (E) of paragraph one of this
    44  subdivision.
    45    (B) Collect one or more investments of cash, which shall  purchase  an
    46  equity  interest in the rural growth fund or a debt instrument issued by
    47  the rural growth fund at par value or premium, with a maturity  date  of
    48  at  least  five  years  from  the  closing  date that, when added to the
    49  contributions collected under subparagraph (A) of this paragraph,  equal
    50  the  fund's  eligible  investment authority. At least ten percent of the
    51  fund's eligible  investment  authority  shall  be  comprised  of  equity
    52  investments contributed by affiliates of the rural business growth fund,
    53  including employees, officers, and directors of such affiliates.
    54    (C)  Send to the department documentation sufficient to prove that the
    55  amounts described in subparagraphs (A) and (B) of  this  paragraph  have

        A. 2552                             6

     1  been  collected. If the rural business growth fund fails to fully comply
     2  with this paragraph, the fund's certification shall lapse.
     3    (8)  Eligible  investment  authority and corresponding credit-eligible
     4  capital contributions that lapse under paragraph seven of this  subdivi-
     5  sion  do  not count toward limits on total eligible investment authority
     6  and credit-eligible capital contributions prescribed in paragraph two of
     7  this subdivision. Once eligible investment  authority  has  lapsed,  the
     8  department  shall  first  award  lapsed authority pro rata to each rural
     9  business growth fund that was awarded less than the  requested  eligible
    10  investment  authority  under  paragraph  five  of  this subdivision. Any
    11  remaining eligible investment authority may be awarded by the department
    12  to new applicants.
    13    (9) Application fees submitted to the department pursuant to  subpara-
    14  graph  (F) of paragraph one of this subdivision shall be credited to the
    15  New York agriculture and rural jobs fund,  created  in  section  ninety-
    16  nine-ff of the state finance law.
    17    (c)  Revocation  of  certification and penalties.   (1) The department
    18  shall revoke a tax credit certificate issued under  subdivision  (b)  of
    19  this section if any of the following occur with respect to a rural busi-
    20  ness  growth fund before the fund exits the program under paragraph five
    21  of this subdivision.
    22    (A) The rural business growth fund in which the credit-eligible  capi-
    23  tal  contribution was made does not invest sixty percent of its eligible
    24  investment authority in rural growth investments in  this  state  within
    25  two  years  of  the closing date and one hundred percent of its eligible
    26  investment authority in rural growth investments in  this  state  within
    27  three years of the closing date.
    28    (B)  After  investing  one  hundred percent of its eligible investment
    29  authority in rural growth investments in this state, the rural  business
    30  growth fund fails to maintain that investment until the seventh anniver-
    31  sary  of the closing date.  For the purposes of this section, an invest-
    32  ment is "maintained" even if the investment is sold or repaid so long as
    33  the rural business growth fund reinvests an amount equal to the  capital
    34  returned  or  recovered by the fund from the original investment, exclu-
    35  sive of any profits realized, in other rural growth investments in  this
    36  state  within  twelve  months  of  the receipt of such capital.  Amounts
    37  received periodically by a rural business growth fund shall  be  treated
    38  as  continually  invested in rural growth investments if the amounts are
    39  reinvested in one or more rural growth investments by  the  end  of  the
    40  following calendar year. A rural business growth fund is not required to
    41  reinvest  capital  returned  from  rural  growth  investments in the six
    42  months immediately preceding the  seventh  anniversary  of  the  closing
    43  date, and such rural growth investments shall be considered held contin-
    44  uously  by  the rural growth fund through the seventh anniversary of the
    45  closing date.
    46    (C) The rural business growth fund invests more than  the  greater  of
    47  five  million  dollars  or  twenty  percent  of  its eligible investment
    48  authority in the same rural business concern, including amounts invested
    49  in affiliates of the rural business concern but excluding amounts  rein-
    50  vested  in  the rural business growth fund with repaid or redeemed rural
    51  business growth investments, provided such reinvestments shall not count
    52  towards the requirement of subparagraph (A) of this paragraph.
    53    (D) The rural business growth fund makes a rural growth investment  in
    54  a  rural  business concern that directly or indirectly through an affil-
    55  iate owns, has the right to acquire an ownership interest, make  a  loan
    56  to,  or  make an investment in the rural business growth fund, an affil-

        A. 2552                             7

     1  iate of the rural business growth fund, or  an  investor  in  the  rural
     2  business  growth  fund.  This paragraph does not apply to investments in
     3  publicly traded securities by a rural business concern or  an  owner  or
     4  affiliate of such concern.
     5    (2)  Before taking action under paragraph one of this subdivision, the
     6  department shall notify the rural business growth fund  of  the  reasons
     7  for  the  pending action. If the rural business growth fund corrects the
     8  violations, other than violations of subparagraph (D) of  paragraph  one
     9  of  this  subdivision, outlined in the notice to the satisfaction of the
    10  department within one hundred eighty days of the date of the notice  was
    11  sent,  the  department  shall  not revoke the tax credit certificates or
    12  levy a fine.
    13    (3) If the department revokes a tax credit certificate under paragraph
    14  one of this subdivision, it shall notify  the  commissioner,  who  shall
    15  make  an  assessment for the amount of the credit claimed by the certif-
    16  icate holder before the certificate was revoked. The commissioner  shall
    17  make  the  assessment  within  one  year  after the certificate has been
    18  revoked.
    19    (4) If tax credit certificates are revoked under paragraph one of this
    20  subdivision, the associated eligible investment authority and credit-el-
    21  igible capital contributions do not count  toward  the  limit  on  total
    22  eligible  investment authority and credit-eligible capital contributions
    23  described by paragraph two of  subdivision  (b)  of  this  section.  The
    24  department  shall  first award reverted authority pro rata to each rural
    25  business growth fund that was awarded less than the  requested  eligible
    26  investment  authority  under  paragraph  five of subdivision (b) of this
    27  section. Any remaining eligible investment authority may be  awarded  by
    28  the department to new applicants.
    29    (5)  (A)  On  or  after the seventh anniversary of the closing date, a
    30  rural business growth fund that  has  not  committed  any  of  the  acts
    31  described  in paragraph one of this subdivision may apply to the depart-
    32  ment to exit the program as a rural business growth fund and  no  longer
    33  be  subject  to  regulation  under  this  section.  The department shall
    34  respond to the application  within  thirty  days  after  receiving  such
    35  application.    In  evaluating  such request the fact that no tax credit
    36  certificates have been revoked with respect to the rural business growth
    37  fund shall be sufficient evidence to prove that the fund is eligible  to
    38  exit the program. The department shall not unreasonably deny an applica-
    39  tion submitted under this subdivision.
    40    (B) The department shall send notice of its determination with respect
    41  to  an application submitted under subparagraph (A) of this paragraph to
    42  the rural business growth fund. If the application is denied, the notice
    43  shall include the reasons for the determination.
    44    (C) The department shall not revoke a tax credit  certificate  due  to
    45  any  actions  of  a rural business growth fund that occur after the date
    46  the fund's application for exiting the program is approved under subpar-
    47  agraph (A) of this paragraph.
    48    (6) A rural business growth fund is subject to a penalty in the amount
    49  provided by paragraph seven of this subdivision if:
    50    (A) the rural business growth fund authorizes a  distribution  to  the
    51  rural  business  growth fund's equity or debt holders in an amount that,
    52  when added to all previous distributions to the  rural  business  growth
    53  fund's  equity  and  debt  holders and any previous penalties under this
    54  section, exceeds the rural business growth fund's investment  authority;
    55  and

        A. 2552                             8

     1    (B)  the  number of jobs created and jobs retained as reported in each
     2  of the annual reports submitted under paragraph one of  subdivision  (d)
     3  of  this  section  is  less  than  the  number  of jobs created and jobs
     4  retained as set forth in the rural  business  growth  fund's  notice  of
     5  approval  pursuant  to  subparagraph (A) of paragraph six of subdivision
     6  (b) of this section.
     7    (7) The amount of the penalty pursuant to paragraph six of this subdi-
     8  vision shall be equal to the amount of the tax credit certificate issued
     9  under subparagraph (B) of paragraph  six  of  subdivision  (b)  of  this
    10  section multiplied by a fraction:
    11    (A)  the  numerator  of  which  is the number of jobs created and jobs
    12  retained set forth  in  the  rural  business  growth  fund's  notice  of
    13  approval  under  subparagraph (A) of paragraph six of subdivision (b) of
    14  this section less the sum of jobs created and jobs retained reported  to
    15  the  department annually pursuant to paragraph one of subdivision (d) of
    16  this section; and
    17    (B) the denominator of which is the number of jobs  created  and  jobs
    18  retained  set  forth  in  the  rural  business  growth  fund's notice of
    19  approval under subparagraph (A) of paragraph six of subdivision  (b)  of
    20  this section.
    21    (8)  Before  making a distribution to the rural business growth fund's
    22  equity holders, the rural business growth fund shall deduct  the  amount
    23  of  the penalty as calculated pursuant to paragraph seven of this subdi-
    24  vision from the amount otherwise authorized to  be  distributed  to  the
    25  equity holders and pay the penalty to the department.
    26    (9) A rural business growth fund shall, prior to making a rural growth
    27  investment,  request  from  the department a written determination as to
    28  whether the business entity in which it proposes to invest qualifies  as
    29  a rural business concern.  Such request shall be in a form prescribed by
    30  the  department.  Rural business concern determination requests shall be
    31  accepted, reviewed, and approved on a rolling basis.    The  department,
    32  not  later  than the twentieth business day after the date of receipt of
    33  such request, provided the request includes all of the required informa-
    34  tion to perform such review, shall notify the rural business growth fund
    35  of its determination. If the department fails to notify such fund of its
    36  determination within such twenty business days, the  business  in  which
    37  the  rural  business  growth  fund proposes to invest shall be deemed to
    38  qualify as a rural business concern.
    39    (d) Reports. (1) A rural business growth fund shall submit a report to
    40  the department on or before the fifth business day after  each  anniver-
    41  sary of the closing date until the rural business growth fund has exited
    42  the program in accordance with paragraph five of subdivision (c) of this
    43  section.  The  report  shall  document  the rural business growth fund's
    44  growth investments and shall include, but shall not be limited to:
    45    (A) A bank statement showing each rural growth investment;
    46    (B) The name, location, and industry of each  rural  business  concern
    47  receiving  a rural growth investment, including either the determination
    48  notice described by paragraph nine of subdivision (c) of this section or
    49  evidence that  such  determination  was  requested  and  no  notice  was
    50  provided;
    51    (C)  The  number  of  jobs  created and jobs retained in the preceding
    52  twelve month reporting period as a result of the rural  business  growth
    53  fund's rural growth investments as of the last day of that period;
    54    (D)  The  average  annual salary of the jobs described by subparagraph
    55  (C) of this paragraph; and

        A. 2552                             9

     1    (E) Any other information  deemed  pertinent  by  the  rural  business
     2  growth fund or required by the department.
     3    (2)  The  department  shall  adopt  rules  necessary to implement this
     4  subdivision.
     5    § 2. Section 1511 of the tax law is amended by adding a  new  subdivi-
     6  sion (ee) to read as follows:
     7    (ee)  Credit  for certain investments to a rural business growth fund.
     8  (1) There is hereby allowed a nonrefundable  tax  credit  for  taxpayers
     9  that  made  a  credit-eligible  capital contribution to a rural business
    10  growth fund and were issued a tax credit certificate under  subparagraph
    11  (B)  of  paragraph  six of subdivision (b) of section forty-five of this
    12  chapter. The credit may be claimed against the tax imposed by this arti-
    13  cle and section one thousand one hundred twelve of  the  insurance  law.
    14  The  credit  may  not  be  sold, transferred, or allocated to any entity
    15  other than an affiliate of the taxpayer.
    16    (2) The taxpayer may  claim  credits  authorized  by  the  tax  credit
    17  certificate  in  the  taxable  year in which the third, fourth and fifth
    18  anniversaries of the closing date in connection with which  the  certif-
    19  icate  issued  occurs,  provided that the maximum amount of credit for a
    20  tax year that may be claimed is up to one-third of the amount stated  on
    21  the  tax credit certificate, exclusive of amounts carried forward pursu-
    22  ant to paragraph three of this subdivision.
    23    (3) If the amount of the credit for a taxable  year  exceeds  the  tax
    24  otherwise  due  for  that  year,  the excess shall be carried forward to
    25  ensuing taxable years until fully used. A  taxpayer  claiming  a  credit
    26  under  this  section  shall  submit a copy of the tax credit certificate
    27  with the taxpayer's return for each taxable year for which the credit is
    28  claimed.
    29    § 3. The tax law is amended by adding a new section 187-q to  read  as
    30  follows:
    31    §  187-q.  Credit  for  certain investments to a rural business growth
    32  fund. 1. There is hereby allowed a nonrefundable tax credit for  taxpay-
    33  ers that made a credit-eligible capital contribution to a rural business
    34  growth  fund and were issued a tax credit certificate under subparagraph
    35  (B) of paragraph six of subdivision (b) of section  forty-five  of  this
    36  chapter. The credit may be claimed against the tax imposed by this arti-
    37  cle. The credit may not be sold, transferred, or allocated to any entity
    38  other than an affiliate of the taxpayer.
    39    2. The taxpayer may claim credits authorized by the tax credit certif-
    40  icate in the taxable year in which the third, fourth, and fifth anniver-
    41  saries  of  the  closing  date  in connection with which the certificate
    42  issued occurs, provided that the maximum amount of credit for a tax year
    43  that may be claimed is up to one-third of the amount stated on  the  tax
    44  credit  certificate,  exclusive  of  amounts carried forward pursuant to
    45  subdivision three of this section. In no event shall  the  credit  under
    46  this  section  be allowed in an amount which will reduce the tax payable
    47  to less than the applicable minimum tax fixed  by  section  one  hundred
    48  eighty-three of this article.
    49    3.  If  the  amount  of  the credit for a taxable year exceeds the tax
    50  otherwise due for that year, the excess  shall  be  carried  forward  to
    51  ensuing  taxable  years  until  fully used. A taxpayer claiming a credit
    52  under this section shall submit a copy of  the  tax  credit  certificate
    53  with the taxpayer's return for each taxable year for which the credit is
    54  claimed.
    55    §  4. Section 210-B of the tax law is amended by adding a new subdivi-
    56  sion 55 to read as follows:

        A. 2552                            10

     1    55. Credit for certain investments to a rural  business  growth  fund.
     2  (1)  Allowance  of  credit.  There is hereby allowed a nonrefundable tax
     3  credit for taxpayers that made a credit-eligible capital contribution to
     4  a rural business growth fund and were issued a  tax  credit  certificate
     5  under  subparagraph  (B)  of paragraph six of subdivision (b) of section
     6  forty-five of this chapter. The credit may be claimed  against  the  tax
     7  imposed  by  this  article.  The credit may not be sold, transferred, or
     8  allocated to any entity other than an affiliate of the taxpayer.
     9    (2) Amount of credit claimed. The taxpayer may claim  credits  author-
    10  ized  by  the  tax  credit  certificate in the taxable year in which the
    11  third, fourth, and fifth anniversaries of the closing date in connection
    12  with which the certificate issued  occurs,  provided  that  the  maximum
    13  amount  of  credit for a tax year that may be claimed is up to one-third
    14  of the amount stated on the tax credit certificate, exclusive of amounts
    15  carried forward pursuant to paragraph three of this subdivision.
    16    (3) Application of credit. The credit allowed under  this  subdivision
    17  for  any taxable year shall not reduce the tax due for such year to less
    18  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    19  section two hundred ten of this article.  Provided, however, that if the
    20  amount  of  the  credit allowable under this subdivision for any taxable
    21  year reduces the tax to such amount or if the  taxpayer  otherwise  pays
    22  tax based on the fixed dollar minimum amount, the excess shall be treat-
    23  ed  as  an  overpayment  of  tax  to  be credited in accordance with the
    24  provisions of section one thousand eighty-six of this chapter. Provided,
    25  further, notwithstanding the provisions of subsection (c) of section one
    26  thousand eighty-eight of this chapter, no interest shall be paid  there-
    27  on.
    28    § 5. The state finance law is amended by adding a new section 99-ii to
    29  read as follows:
    30    §  99-ii. New York agriculture and rural jobs fund. 1. There is hereby
    31  established in the joint  custody  of  the  state  comptroller  and  the
    32  commissioner  of  taxation and finance a special fund to be known as the
    33  "New York agriculture and rural jobs fund".
    34    2. Such fund shall consist of all application fees submitted  pursuant
    35  to  subparagraph  (F)  of  paragraph  one  of subdivision (b) of section
    36  forty-five of the tax law, and all other moneys appropriated,  credited,
    37  or transferred thereto from any other fund or source pursuant to law.
    38    3.  Moneys  of  the  fund,  following appropriation by the legislature
    39  shall be expended only for the purposes of providing funding for the New
    40  York agriculture and rural jobs credit set forth in  section  forty-five
    41  of  the  tax  law. Moneys shall be paid out of the fund on the audit and
    42  warrant of the state comptroller on vouchers approved and  certified  by
    43  the  commissioner  of taxation and finance. Any interest received by the
    44  comptroller on moneys on deposit in the New York agriculture  and  rural
    45  jobs fund shall be retained in and become part of such fund.
    46    § 6. This act shall take effect July 1, 2021.
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