Bill Text: NY A03046 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the economic development law and the tax law, in relation to establishing the manufacturing preservation and enhancement act (Part A); to amend the economic development law and the tax law, in relation to establishing the office of the New York state homeshoring initiative (Part B); to amend the general municipal law, in relation to the decertification of business enterprises due to the outsourcing of jobs (Part C); and to amend the tax law, in relation to tax exemptions for manufacturers (Part D)
Spectrum: Partisan Bill (Republican 16-0)
Status: (Introduced - Dead) 2010-04-20 - held for consideration in economic development [A03046 Detail]
Download: New_York-2009-A03046-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3046 2009-2010 Regular Sessions I N A S S E M B L Y January 22, 2009 ___________ Introduced by M. of A. KOLB, OAKS, CALHOUN, O'MARA, SAYWARD, REILICH, FINCH, P. LOPEZ -- Multi-Sponsored by -- M. of A. BACALLES, BUTLER, CONTE, DUPREY, ERRIGO, MOLINARO, QUINN, WALKER -- read once and referred to the Committee on Economic Development, Job Creation, Commerce and Industry AN ACT to amend the economic development law and the tax law, in relation to establishing the manufacturing preservation and enhance- ment act (Part A); to amend the economic development law and the tax law, in relation to establishing the office of the New York state homeshoring initiative (Part B); to amend the general municipal law, in relation to the decertification of business enterprises due to the outsourcing of jobs (Part C); and to amend the tax law, in relation to tax exemptions for manufacturers (Part D) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act enacts into law major components of legislation 2 relating to the manufacturing preservation and enhancement act. Each 3 component is wholly contained within a Part identified as Parts A 4 through D. The effective date for each particular provision contained 5 within such Part is set forth in the last section of such Part. Any 6 provision in any section contained within a Part, including the effec- 7 tive date of the Part, which makes a reference to a section "of this 8 act", when used in connection with that particular component, shall be 9 deemed to mean and refer to the corresponding section of the Part in 10 which it is found. Section three of this act sets forth the general 11 effective date of this act. 12 PART A 13 Section 1. The economic development law is amended by adding a new 14 article 15 to read as follows: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05088-01-9 A. 3046 2 1 ARTICLE 15 2 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT 3 SECTION 270. DEFINITIONS. 4 271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM. 5 272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS. 6 273. REPORTING. 7 S 270. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND 8 TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTENT SHALL INDI- 9 CATE ANOTHER OR DIFFERENT MEANING OR INTENT: 10 1. "PROGRAM" SHALL MEAN THE MANUFACTURING PRESERVATION AND ENHANCEMENT 11 PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE. 12 2. "MANUFACTURING FIRM" SHALL MEAN AN ENTERPRISE, INCLUDING CORPORATE 13 ENTITIES, PARTNERSHIPS AND SOLE PROPRIETORS, ENGAGED IN THE BUSINESS OF 14 PRODUCTION OF GOODS AND PRODUCTS FROM RAW MATERIALS. 15 3. "BENCHMARK" SHALL MEAN A SPECIFIC NUMBER OF ELIGIBLE NEW JOBS 16 CREATED IN THE STATE PURSUANT TO THE PROGRAM. 17 4. "MEI" SHALL MEAN THE MANUFACTURING ENHANCEMENT INCENTIVE PROGRAM. 18 S 271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM. 1. THERE 19 IS HEREBY CREATED A MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM 20 WITHIN THE DEPARTMENT TO PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE IN 21 THE FORM OF TAX INCENTIVES TO MANUFACTURING FIRMS THAT MEET SPECIFIED 22 BENCHMARKS IN JOB CREATION AS ESTABLISHED BY THE COMMISSIONER. 23 2. THE COMMISSIONER SHALL DETERMINE ELIGIBILITY REQUIREMENTS FOR 24 PARTICIPATION IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS 25 SHALL INCLUDE THE FOLLOWING: 26 (A) AN APPLICANT TO THE PROGRAM MAY NOT PARTICIPATE IN THE PROGRAM IF 27 DESIGNATED AS A CERTIFIED BUSINESS LOCATED IN AN EMPIRE ZONE CREATED 28 PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW; AND 29 (B) AN APPLICANT THAT HAS PREVIOUSLY PARTICIPATED IN THE PROGRAM MAY 30 NOT REAPPLY FOR PARTICIPATION IN THE PROGRAM UNLESS IT CAN DOCUMENT THAT 31 AT THE TIME OF ITS REAPPLICATION FOR PARTICIPATION, IT HAS MAINTAINED A 32 LEVEL OF EMPLOYMENT AT LEAST AS GREAT AS THE HIGHEST LEVEL REQUIRED 33 DURING ITS PREVIOUS PARTICIPATION IN THE PROGRAM. 34 3. APPLICATIONS FOR PARTICIPATION IN THE MEI SHALL BE SUBMITTED BY 35 EACH MANUFACTURING FIRM SEEKING TO PARTICIPATE IN THE PROGRAM, AND SHALL 36 BE IN THE FORM AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING 37 DATA AS THE COMMISSIONER MAY PRESCRIBE. NO APPLICATIONS FOR PARTIC- 38 IPATION SHALL BE ACCEPTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND 39 SEVENTEEN. 40 4. MANUFACTURING FIRMS INTERESTED IN PARTICIPATING IN THE MEI SHALL 41 SUBMIT AN APPLICATION TO THE PROGRAM. THE COMMISSIONER SHALL REVIEW ALL 42 APPLICATIONS FOR PARTICIPATION IN THE PROGRAM FOR ELIGIBILITY AND SHALL 43 REGISTER ELIGIBLE APPLICANTS. THE COMMISSIONER SHALL PROVIDE EACH REGIS- 44 TERED APPLICANT WITH BENCHMARKS IN JOB CREATION THAT MUST BE ACHIEVED BY 45 THE REGISTERED APPLICANT OVER THE FOLLOWING FIVE YEARS. SUCH BENCHMARKS 46 SHALL BE CONSISTENT WITH REGULATIONS TO BE PRESCRIBED BY THE COMMISSION- 47 ER. ANNUALLY, EACH REGISTERED APPLICANT SHALL SUBMIT TO THE COMMISSIONER 48 A REGISTRATION STATEMENT, TOGETHER WITH SUCH INFORMATION, EXHIBITS AND 49 SUPPORTING DATA AS THE COMMISSIONER MAY REQUIRE. UPON SUBMISSION OF THE 50 FIFTH ANNUAL REGISTRATION STATEMENT, THE COMMISSIONER SHALL REVIEW THE 51 REGISTERED APPLICANT'S FILE FOR ELIGIBILITY FOR THE TAX INCENTIVES. IF 52 THE REGISTERED APPLICANT HAS MET THE REQUIRED BENCHMARKS IN JOB 53 CREATION, THE COMMISSIONER SHALL PROVIDE A CERTIFICATE, VALID FOR THE 54 SUCCEEDING TWO TAX YEARS, CERTIFYING THAT THE REGISTERED APPLICANT IS 55 ELIGIBLE FOR TAX CREDITS PURSUANT TO THIS ARTICLE. THE MEI CERTIFICATE 56 SHALL INCLUDE A DESCRIPTION OF THE PROPERTY ELIGIBLE FOR THE PROPERTY A. 3046 3 1 TAX BENEFIT AND SHALL SPECIFY THE EMPLOYMENT LEVEL AND TOTAL AMOUNT OF 2 EMPLOYEE GROSS SALARY ELIGIBLE FOR THE WAGE CREDIT. 3 S 272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS. DURING 4 THE TWO-YEAR CERTIFICATION PERIOD, CERTIFIED MANUFACTURING FIRMS SHALL 5 BE ELIGIBLE TO RECEIVE THE FOLLOWING TAX CREDITS: 6 1. AN MEI PROPERTY TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO 7 SECTION SEVEN HUNDRED OF THE TAX LAW; 8 2. AN MEI WAGE TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO SECTION 9 SEVEN HUNDRED ONE OF THE TAX LAW; AND 10 3. AN MEI ENERGY TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO 11 SECTION SEVEN HUNDRED TWO OF THE TAX LAW. 12 S 273. REPORTING. THE COMMISSIONER SHALL, ON OR BEFORE SEPTEMBER 13 FIRST, TWO THOUSAND ELEVEN, AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO 14 THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE 15 ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF 16 THE ASSEMBLY ON THE OPERATION AND ACCOMPLISHMENTS OF THE PROGRAM 17 PROVIDED FOR PURSUANT TO THIS ARTICLE. 18 S 2. The tax law is amended by adding a new article 23 to read as 19 follows: 20 ARTICLE 23 21 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT 22 SECTION 700. MEI PROPERTY TAX CREDIT. 23 701. MEI WAGE TAX CREDIT. 24 702. MEI ENERGY TAX CREDIT. 25 S 700. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER 26 RECEIVING AN MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE 27 ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS SUBJECT TO PROPERTY TAXES 28 UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL BE 29 ALLOWED A CREDIT AGAINST THE PROPERTY TAXES ASSESSED UNDER ARTICLE 30 NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT 31 THE CERTIFICATE IS VALID, PROVIDED, AND TO THE EXTENT THAT, THE TAXES 32 ASSESSED CONSTITUTE ELIGIBLE REAL PROPERTY TAXES AS DEFINED IN 33 SUBSECTION (B) OF THIS SECTION. THE CREDIT SHALL BE COMPUTED PURSUANT TO 34 THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION. 35 (B) DEFINITION. THE TERM "ELIGIBLE REAL PROPERTY TAXES" SHALL MEAN TAX 36 IMPOSED ON REAL PROPERTY WHICH HAS BEEN CERTIFIED AS MEI ELIGIBLE PROP- 37 ERTY PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW. IN 38 ADDITION, THE TERM "ELIGIBLE REAL PROPERTY TAXES" INCLUDES PAYMENTS IN 39 LIEU OF TAXES MADE BY THE TAXPAYER TO THE STATE, A MUNICIPAL CORPORATION 40 OR A PUBLIC BENEFIT CORPORATION PURSUANT TO A WRITTEN AGREEMENT ENTERED 41 INTO BY THE TAXPAYER AND THE STATE, MUNICIPAL CORPORATION OR PUBLIC 42 BENEFIT CORPORATION. 43 (C) COMPUTATION OF PROPERTY TAX CREDIT. THE PROPERTY TAX CREDIT 44 DESCRIBED IN THIS SECTION SHALL BE A FLAT TEN PERCENT OF THE PROPERTY 45 TAX ASSESSED. 46 S 701. MEI WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER 47 RECEIVING AN MEI CERTIFICATE THAT HAS BEEN ISSUED PURSUANT TO ARTICLE 48 FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS SUBJECT TO 49 TAXES UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL 50 BE ALLOWED A CREDIT AGAINST THE TAXES ASSESSED UNDER ARTICLE NINE-A OR 51 ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF- 52 ICATE IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS 53 OF SUBSECTION (C) OF THIS SECTION. 54 (B) DEFINITIONS. THE TERM "ELIGIBLE WAGES" SHALL MEAN THE TOTAL AMOUNT 55 OF EMPLOYEE GROSS SALARY ELIGIBLE FOR THE WAGE TAX CREDIT, AS SUCH A. 3046 4 1 AMOUNT IS SPECIFIED IN THE MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE 2 FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW. 3 (C) COMPUTATION OF WAGE TAX CREDIT. (1) DURING THE FIRST TAX YEAR OF 4 THE TWO-YEAR PERIOD FOR WHICH A VALID MEI CERTIFICATE HAS BEEN ISSUED 5 PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED 6 THE TAXPAYER HAS MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE REQUIRE- 7 MENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC 8 DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF ONE AND ONE- 9 HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY 10 THE TAXPAYER. IF THE TAXPAYER INCREASES EMPLOYMENT DURING THIS TAX YEAR, 11 AND EXCEEDS THE LEVEL OF EMPLOYMENT REQUIRED BY THE MEI AS DEFINED IN 12 ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING AND MAINTAINING 13 ADDITIONAL EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE THE 14 ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CRED- 15 IT OF TWO AND ONE-HALF PERCENT OF THE TOTAL AMOUNT BY WHICH THE WAGES 16 ACTUALLY PAID AS A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED 17 THE ELIGIBLE WAGES. 18 (2) DURING THE SECOND TAX YEAR OF THE TWO-YEAR PERIOD FOR WHICH A 19 VALID MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE 20 ECONOMIC DEVELOPMENT LAW, PROVIDED THE TAXPAYER HAS MAINTAINED THE 21 EMPLOYMENT AND ELIGIBLE WAGE REQUIREMENTS SPECIFIED BY THE MEI AS 22 DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, THE TAXPAYER 23 SHALL BE ALLOWED A CREDIT OF ONE AND ONE-HALF PERCENT OF THE TOTAL 24 AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY THE TAXPAYER; HOWEVER, IF 25 THE TAXPAYER INCREASED EMPLOYMENT IN THE PRECEDING TAX YEAR AND CLAIMED 26 THE TWO AND ONE-HALF PERCENT CREDIT FOR EMPLOYMENT AND PAYMENT OF WAGES 27 IN EXCESS OF THE MEI REQUIREMENTS PURSUANT TO ARTICLE FIFTEEN OF THE 28 ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF ONE 29 AND ONE-HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY 30 PAID BY THE TAXPAYER DURING THE PRECEDING TAX YEAR, PROVIDED THE TAXPAY- 31 ER HAS MAINTAINED THE INCREASED EMPLOYMENT AND SALARY LEVELS. IF THE 32 TAXPAYER AGAIN INCREASES EMPLOYMENT, HIRING AND MAINTAINING ADDITIONAL 33 EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE THE PREVIOUS TAX 34 YEAR'S AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CREDIT OF TWO 35 AND ONE-HALF PERCENT OF THE TOTAL AMOUNT BY WHICH THE WAGES ACTUALLY 36 PAID AS A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED THE WAGES 37 SUBJECT TO THE ONE AND ONE-HALF PERCENT CREDIT. 38 S 702. MEI ENERGY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER 39 RECEIVING AN MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN 40 OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS SUBJECT TO TAXES 41 UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL BE 42 ALLOWED A CREDIT AGAINST THE TAXES ASSESSED UNDER ARTICLE NINE-A OR 43 ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF- 44 ICATE IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS 45 OF SUBSECTION (C) OF THIS SECTION. 46 (B) DEFINITION. THE TERM "ELIGIBLE ENERGY COSTS" SHALL MEAN THE 47 AMOUNTS PAID BY THE TAXPAYER FOR ELECTRICITY, NATURAL GAS, OR ANY OTHER 48 ENERGY PRODUCT OR SERVICE WHICH THE TAXPAYER HAS USED IN THE OPERATION 49 OF A MEI CERTIFIED MANUFACTURING FIRM FACILITY PURSUANT TO ARTICLE 50 FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW. 51 (C) COMPUTATION OF ENERGY CREDIT. (1) IF THE TAXPAYER HAS PAID ELIGI- 52 BLE ENERGY COSTS DURING THE FIRST TAX YEAR OF THE TWO-YEAR PERIOD FOR 53 WHICH A VALID MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE 54 FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED THE TAXPAYER HAS MAIN- 55 TAINED THE EMPLOYMENT AND ELIGIBLE WAGES REQUIREMENTS SPECIFIED BY THE 56 MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, THE A. 3046 5 1 TAXPAYER SHALL BE ALLOWED AN ENERGY CREDIT OF TWENTY-FIVE DOLLARS PER 2 EMPLOYEE REQUIRED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE 3 ECONOMIC DEVELOPMENT LAW. IF THE TAXPAYER INCREASES EMPLOYMENT DURING 4 THIS TAX YEAR, AND EXCEEDS THE LEVEL OF EMPLOYMENT REQUIRED BY THE MEI 5 AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING 6 AND MAINTAINING ADDITIONAL EMPLOYEES AND PAYING ADDITIONAL WAGES OVER 7 AND ABOVE THE ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN 8 ADDITIONAL ENERGY CREDIT OF FIFTY DOLLARS PER EACH ADDITIONAL EMPLOYEE. 9 THE ENERGY TAX CREDIT SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY 10 COSTS ACTUALLY PAID BY THE TAXPAYER. 11 (2) IF THE TAXPAYER HAS PAID ELIGIBLE ENERGY COSTS DURING THE SECOND 12 TAX YEAR OF THE TWO-YEAR PERIOD FOR WHICH A VALID MEI CERTIFICATE HAS 13 BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, 14 PROVIDED THE TAXPAYER HAS MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE 15 REQUIREMENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE 16 ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED AN ENERGY CREDIT 17 OF TWENTY-FIVE DOLLARS PER EMPLOYEE REQUIRED BY THE MEI AS DEFINED IN 18 ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW; HOWEVER, IF THE TAXPAY- 19 ER INCREASED EMPLOYMENT DURING THE PRECEDING TAX YEAR AND CLAIMED THE 20 ADDITIONAL ENERGY TAX CREDIT OF FIFTY DOLLARS PER ADDITIONAL EMPLOYEE, 21 THE TAXPAYER SHALL BE ALLOWED A CREDIT OF TWENTY-FIVE DOLLARS PER 22 EMPLOYEE UP TO THE NUMBER OF EMPLOYEES CLAIMED IN THE PREVIOUS TAX YEAR, 23 PROVIDED THE TAXPAYER HAS MAINTAINED THE INCREASED EMPLOYMENT AND WAGE 24 LEVELS. IF THE TAXPAYER AGAIN INCREASES EMPLOYMENT, HIRING ADDITIONAL 25 EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE THE PREVIOUS TAX 26 YEAR'S AMOUNTS, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CREDIT OF 27 FIFTY DOLLARS FOR EACH ADDITIONAL EMPLOYEE HIRED DURING THE SECOND YEAR. 28 THE ENERGY TAX CREDIT SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY 29 COSTS ACTUALLY PAID BY THE TAXPAYER. 30 S 3. Section 210 of the tax law is amended by adding three new subdi- 31 visions 41, 42 and 43 to read as follows: 32 41. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL 33 BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED 34 OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. 35 (B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY 36 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE 37 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI- 38 SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED- 39 IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH 40 AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY 41 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM 42 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. 43 42. MEI WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE 44 ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO BE COMPUTED 45 AS PROVIDED IN SECTION SEVEN HUNDRED ONE OF THIS CHAPTER, AGAINST THE 46 TAX IMPOSED BY THIS ARTICLE. 47 (B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY 48 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE 49 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI- 50 SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED- 51 IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH 52 AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY 53 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM 54 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. 55 43. MEI ENERGY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL 56 BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO BE A. 3046 6 1 COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED TWO OF THIS CHAPTER, 2 AGAINST THE TAX IMPOSED BY THIS ARTICLE. 3 (B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY 4 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE 5 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI- 6 SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED- 7 IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH 8 AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY 9 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM 10 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. 11 S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 12 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of 13 the laws of 2008, is amended to read as follows: 14 (B) shall be treated as the owner of a new business with respect to 15 such share if the corporation qualifies as a new business pursuant to 16 paragraph (j) of subdivision twelve of section two hundred ten of this 17 chapter. 18 The corporation's credit base under 19 section two hundred ten or section 20 With respect to the following fourteen hundred fifty-six of this 21 credit under this section: chapter is: 22 (I) Investment tax credit Investment credit base 23 under subsection (a) or qualified 24 rehabilitation 25 expenditures under 26 subdivision twelve of 27 section two hundred ten 28 (II) Empire zone Cost or other basis 29 investment tax credit under subdivision 30 under subsection (j) twelve-B 31 of section two hundred 32 ten 33 (III) Empire zone Eligible wages under 34 wage tax credit subdivision nineteen of 35 under subsection (k) section two hundred ten 36 or subsection (e) of 37 section fourteen hundred 38 fifty-six 39 (IV) Empire zone Qualified investments 40 capital tax credit and contributions under 41 under subsection (l) subdivision twenty of 42 section two hundred ten 43 or subsection (d) of 44 section fourteen hundred 45 fifty-six 46 (V) Agricultural property tax Allowable school 47 credit under subsection (n) district property taxes under 48 subdivision twenty-two of 49 section two hundred ten A. 3046 7 1 (VI) Credit for employment Qualified first-year wages or 2 of persons with dis- qualified second-year wages 3 abilities under under subdivision 4 subsection (o) twenty-three of section 5 two hundred ten 6 or subsection (f) 7 of section fourteen 8 hundred fifty-six 9 (VII) Employment incentive Applicable investment credit 10 credit under subsec- base under subdivision 11 tion (a-1) twelve-D of section two 12 hundred ten 13 (VIII) Empire zone Applicable investment 14 employment credit under sub- 15 incentive credit under division twelve-C 16 subsection (j-1) of section two hundred ten 17 (IX) Alternative fuels credit Cost under subdivision 18 under subsection (p) twenty-four of section two 19 hundred ten 20 (X) Qualified emerging Applicable credit base 21 technology company under subdivision twelve-E 22 employment credit of section two hundred ten 23 under subsection (q) 24 (XI) Qualified emerging Qualified investments under 25 technology company subdivision twelve-F of 26 capital tax credit section two hundred ten 27 under subsection (r) 28 (XII) Credit for purchase of an Cost of an automated 29 automated external defibrillator external defibrillator under 30 under subsection (s) subdivision twenty-five of 31 section two hundred ten 32 or subsection (j) of section 33 fourteen hundred fifty-six 34 (XIII) Low-income housing Credit amount under 35 credit under subsection (x) subdivision thirty 36 of section two hundred ten or 37 subsection (l) of section 38 fourteen hundred fifty-six 39 (XIV) Credit for transportation Amount of credit under sub- 40 improvement contributions division thirty-two of section 41 under subsection (z) two hundred ten or subsection 42 (n) of section fourteen 43 hundred fifty-six 44 (XV) QEZE credit for real property Amount of credit under 45 taxes under subsection (bb) subdivision twenty-seven of 46 section two hundred ten or 47 subsection (o) of section A. 3046 8 1 fourteen hundred fifty-six 2 (XVI) QEZE tax reduction credit Amount of benefit period 3 under subsection (cc) factor, employment increase factor 4 and zone allocation 5 factor (without regard 6 to pro ration) under 7 subdivision twenty-eight of 8 section two hundred ten or 9 subsection (p) of section 10 fourteen hundred fifty-six 11 and amount of tax factor 12 as determined under 13 subdivision (f) of section sixteen 14 (XVII) Green building credit Amount of green building credit 15 under subsection (y) under subdivision thirty-one 16 of section two hundred ten 17 or subsection (m) of section 18 fourteen hundred fifty-six 19 (XVIII) Credit for long-term Qualified costs under 20 care insurance premiums subdivision twenty-five-a of 21 under subsection (aa) section two hundred ten 22 or subsection (k) of section 23 fourteen hundred fifty-six 24 (XIX) Brownfield redevelopment Amount of credit 25 credit under subsection under subdivision 26 (dd) thirty-three of section 27 two hundred ten 28 or subsection (q) of 29 section fourteen hundred 30 fifty-six 31 (XX) Remediated brownfield Amount of credit under 32 credit for real property subdivision thirty-four 33 taxes for qualified of section two hundred 34 sites under subsection ten or subsection (r) of 35 (ee) section fourteen hundred 36 fifty-six 37 (XXI) Environmental Amount of credit under 38 remediation subdivision thirty-five of 39 insurance credit under section two hundred 40 subsection (ff) ten or subsection 41 (s) of section 42 fourteen hundred 43 fifty-six 44 (XXII) Empire state film Amount of credit for qualified 45 production credit under production costs in production 46 subsection (gg) of a qualified film under 47 subdivision thirty-six of 48 section two hundred ten A. 3046 9 1 (XXIII) Qualified emerging Qualifying expenditures and 2 technology company facilities, development activities under 3 operations and training credit subdivision twelve-G of section 4 under subsection (nn) two hundred ten 5 (XXIV) Security training tax Amount of credit 6 credit under under subdivision thirty-seven 7 subsection (ii) of section two hundred ten or 8 under subsection (t) of 9 section fourteen hundred fifty-six 10 (XXV) Credit for qualified fuel Amount of credit under 11 cell electric generating equipment subdivision thirty-seven 12 expenditures under subsection (g-2) of section two hundred ten 13 or subsection (t) of 14 section fourteen hundred 15 fifty-six 16 (XXVI) Empire state commercial Amount of credit for qualified 17 production credit under production costs in production 18 subsection (jj) of a qualified commercial under 19 subdivision thirty-eight of sec- 20 tion two hundred ten 21 (XXVII) Biofuel production Amount of credit 22 tax credit under under subdivision 23 subsection (jj) thirty-eight of 24 section two hundred ten 25 (XXVIII) Clean heating fuel credit Amount of credit under 26 under subsection (mm) subdivision thirty-nine of 27 section two hundred ten 28 (XXIX) Credit for rehabilitation Amount of credit under 29 of historic properties subdivision forty of 30 under subsection (oo) [subsection] SECTION 31 two hundred ten 32 (XXX) Credit for companies who Amount of credit under 33 provide transportation subdivision forty of 34 to individuals section two hundred ten 35 with disabilities 36 under subsection (oo) 37 (XXXI) MEI PROPERTY TAX CREDIT AMOUNT OF MEI PROPERTY TAX CREDIT 38 UNDER SUBSECTION (QQ) UNDER SUBDIVISION FORTY-ONE OF 39 SECTION TWO HUNDRED TEN 40 (XXXII) MEI WAGE TAX CREDIT UNDER AMOUNT OF MEI WAGE TAX CREDIT 41 SUBSECTION (RR) UNDER SUBDIVISION FORTY-TWO OF 42 SECTION TWO HUNDRED TEN 43 (XXXIII) MEI ENERGY TAX CREDIT UNDER AMOUNT OF MEI ENERGY TAX CREDIT 44 SUBSECTION (SS) UNDER SUBDIVISION FORTY-THREE OF 45 SECTION TWO HUNDRED TEN A. 3046 10 1 S 5. Section 606 of the tax law is amended by adding three new 2 subsections (qq), (rr) and (ss) to read as follows: 3 (QQ) MEI PROPERTY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER 4 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION SEVEN 5 HUNDRED OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. 6 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 7 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 8 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 9 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 10 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 11 SHALL BE PAID THEREON. 12 (RR) MEI WAGE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE 13 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED 14 ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. 15 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 16 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 17 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 18 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 19 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 20 SHALL BE PAID THEREON. 21 (SS) MEI ENERGY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL 22 BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED 23 TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. 24 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 25 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 26 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 27 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 28 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 29 SHALL BE PAID THEREON. 30 S 6. This act shall take effect on the one hundred eightieth day 31 after it shall have become a law and shall apply to taxable years begin- 32 ning on or after January 1, 2011 and before January 1, 2018; provided, 33 however, that the addition, amendment and/or repeal of any rule or regu- 34 lation necessary for the implementation of this act on its effective 35 date are authorized and directed to be made on or before such date; and 36 provided, however that the empire state film production credit under 37 subsection (gg), the empire state commercial production credit under 38 subsection (jj) and the credit for companies who provide transportation 39 to individuals with disabilities under subsection (oo) of section 606 of 40 the tax law contained in section four of this act shall expire on the 41 same date as provided in section 9 of part P of chapter 60 of the laws 42 of 2004, as amended, section 10 of part V of chapter 62 of the laws of 43 2006, as amended and section 5 of chapter 522 of the laws of 2006, as 44 amended, respectively. 45 PART B 46 Section 1. The economic development law is amended by adding a new 47 article 17 to read as follows: 48 ARTICLE 17 49 OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE 50 SECTION 350. LEGISLATIVE FINDINGS. 51 351. OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE. 52 352. OBJECTIVES. 53 353. POWERS AND DUTIES. A. 3046 11 1 S 350. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS THAT RECENT 2 ADVANCES IN TELECOMMUNICATIONS AND THE ADVENT OF THE INTERNET ARE REGU- 3 LARLY CREATING NEW AND PREVIOUSLY UNIMAGINED OPPORTUNITIES FOR THE 4 CREATION OF JOBS AND PROSPERITY. THE LEGISLATURE FURTHER FINDS THAT 5 THESE ADVANCES IN COMMUNICATIONS HAVE ALSO PRESENTED THE STATE AND ITS 6 CITIZENS WITH SIGNIFICANT CHALLENGES IN TERMS OF GLOBAL COMPETITION, 7 WHICH CHALLENGES MUST BE ADDRESSED DIRECTLY FOR OUR STATE TO MAINTAIN 8 ITS COMPETITIVE EDGE IN THE EVOLVING WORLD ECONOMY. THE LEGISLATURE 9 FURTHER FINDS THAT THE PROPER PROMOTION OF INTERNET JOB OPPORTUNITIES 10 COULD HELP IMPROVE THE OVERALL ECONOMIC CLIMATE WITHIN THE STATE BY 11 PROVIDING POTENTIAL EMPLOYMENT ANYWHERE WITHIN THE STATE, INCLUDING 12 BLIGHTED, ISOLATED, AND ECONOMICALLY DEPRESSED REGIONS. THE LEGISLATURE 13 FURTHER FINDS THAT SUCH POTENTIAL JOBS ARE PARTICULARLY SUITED TO BEING 14 FILLED BY BOTH NEW YORKERS WITH DISABILITIES AND BY THOSE NEW YORKERS 15 WHOSE FAMILY RESPONSIBILITIES PRECLUDE OR MAKE IMPRACTICAL WORKING 16 OUTSIDE OF THE HOME. THE LEGISLATURE FURTHER FINDS THAT NEW YORK IS HOME 17 TO A HIGHLY PRODUCTIVE AND WELL EDUCATED WORKFORCE, AND THAT THIS WORK- 18 FORCE COULD AND SHOULD BE MADE AVAILABLE FOR EMPLOYMENT AT HOME BY 19 COMPANIES LOCATED ACROSS THE WORLD IN ORDER TO PROMOTE THE PROSPERITY OF 20 THE STATE AND ITS CITIZENS. 21 S 351. OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE. THERE IS 22 HEREBY ESTABLISHED, UNDER THE DIRECTION OF THE COMMISSIONER, THE OFFICE 23 OF THE NEW YORK STATE HOMESHORING INITIATIVE. THE DIRECTOR OF SUCH 24 OFFICE SHALL BE APPOINTED BY THE GOVERNOR, SHALL REPORT DIRECTLY TO THE 25 COMMISSIONER ON THE ACTIVITIES OF THE OFFICE, AND SHALL HOLD OFFICE AT 26 THE PLEASURE OF THE COMMISSIONER. THE DIRECTOR OF THE OFFICE OF THE NEW 27 YORK STATE HOMESHORING INITIATIVE SHALL ALSO REGULARLY ADVISE AND REPORT 28 UPON ITS ACTIVITIES TO THE DEPARTMENT OF LABOR. IT SHALL BE THE DUTY OF 29 THE DIRECTOR OF THE OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE 30 TO ASSIST THE GOVERNOR IN THE FORMULATION AND IMPLEMENTATION OF LAWS AND 31 POLICIES RELATING TO THE PROMOTION, CREATION, AND INTEGRATION OF TELE- 32 COMMUTING JOB OPPORTUNITIES INTO THE ECONOMIC FABRIC OF THE STATE. THE 33 DIRECTOR SHALL RECEIVE AN ANNUAL SALARY TO BE FIXED BY THE GOVERNOR 34 WITHIN THE AMOUNT APPROPRIATED THEREFOR. THE DIRECTOR MAY APPOINT SUCH 35 OFFICERS, EMPLOYEES, AGENTS, CONSULTANTS AND SPECIAL COMMITTEES AS HE OR 36 SHE MAY DEEM NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE AND 37 PRESCRIBE THEIR DUTIES SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE 38 LAW AND THE RULES AND REGULATIONS OF THE CIVIL SERVICE COMMISSION. 39 S 352. OBJECTIVES. THE OFFICE OF THE NEW YORK STATE HOMESHORING INITI- 40 ATIVE IS DIRECTED TO PROMOTE "HOMESHORING", AN INITIATIVE THAT WILL 41 PROMOTE THE CREATION OF TELECOMMUTING JOB OPPORTUNITIES ON BEHALF OF NEW 42 YORK WORKERS. THIS ASSISTANCE SHOULD CONSIST OF PROMOTION, OUTREACH, 43 COORDINATION, INFORMATION, TECHNICAL ASSISTANCE, AND REFERRAL SERVICES 44 DESIGNATED TO ATTRACT EMPLOYERS WHO MIGHT OTHERWISE NOT CONSIDER AN 45 ACTUAL MOVE TO NEW YORK STATE TO HIRE NEW YORK CITIZENS FOR EMPLOYMENT 46 OPPORTUNITIES WITHIN THE STATE NOW MADE POSSIBLE THROUGH TELECOMMUTING, 47 AS WELL AS ENCOURAGING NEW YORK STATE EMPLOYERS TO PROVIDE JOB OPPORTU- 48 NITIES FOR TELECOMMUTING. 49 S 353. POWERS AND DUTIES. THE OFFICE OF THE NEW YORK STATE HOMESHORING 50 INITIATIVE SHALL: 51 1. COORDINATE ITS EFFORTS WITH ALL OTHER STATE AGENCIES, INCLUDING BUT 52 NOT LIMITED TO THE DEPARTMENT, THE DEPARTMENT OF LABOR, THE OFFICE OF 53 GENERAL SERVICES, THE STATE OFFICE FOR TECHNOLOGY, THE DEPARTMENT OF 54 EDUCATION, AND ALL OTHER AGENCIES AS MAY BE APPROPRIATE IN FORWARDING 55 THIS OBJECTIVE. THE OFFICE MAY ALSO WORK IN COOPERATION WITH ANY A. 3046 12 1 NOT-FOR-PROFIT ORGANIZATIONS THAT THE OFFICE BELIEVES WILL HELP FURTHER 2 ITS GOALS AND OBJECTIVES; 3 2. CONDUCT MARKETING AND PROMOTIONAL ACTIVITIES WITH THE INTENTION OF 4 ENCOURAGING EMPLOYERS BOTH WITHIN AND OUTSIDE OF NEW YORK STATE TO 5 EMPLOY NEW YORK CITIZENS IN TELECOMMUTING JOBS; 6 3. SOLICIT RECOMMENDATIONS FROM LOCAL GOVERNMENTS, BUSINESSES, AND 7 NOT-FOR-PROFIT AGENCIES FOR PROMOTING THE OBJECTIVES OF THIS ARTICLE, 8 AND REFER SUCH RECOMMENDATIONS TO THE GOVERNOR, THE LEGISLATURE AND 9 APPROPRIATE STATE AGENCIES OR AUTHORITIES; 10 4. CONDUCT INVESTIGATIONS, RESEARCH, STUDIES AND ANALYSES OF MATTERS 11 CONSISTENT WITH THE GOALS AND OBJECTIVES OF THIS ARTICLE; 12 5. COORDINATE WITH THE OFFICE OF GENERAL SERVICES TO DEVELOP A PROGRAM 13 WHERE SUCH SURPLUS STATE EQUIPMENT AS MAY BE APPROPRIATE AND USEFUL WILL 14 BE MADE AVAILABLE FOR SALE TO QUALIFIED BUSINESSES THAT HAVE BEEN IDEN- 15 TIFIED AS CREATING TELECOMMUTING JOBS IN NEW YORK STATE, AND SHALL 16 DEVELOP SUCH RULES AND REGULATIONS AS ARE NEEDED TO IMPLEMENT SUCH A 17 PROGRAM INCLUDING THE CRITERIA FOR PARTICIPATION IN SUCH PROGRAM; AND 18 6. COORDINATE WITH THE OFFICE OF GENERAL SERVICES TO DEVELOP A PROGRAM 19 WHERE QUALIFYING BUSINESSES THAT HAVE BEEN IDENTIFIED AS CREATING TELE- 20 COMMUTING JOBS MAY BE MADE ELIGIBLE TO MAKE PURCHASES OF MATERIALS, 21 EQUIPMENT, OR SUPPLIES FROM CENTRALIZED CONTRACTS FOR COMMODITIES IN 22 ACCORDANCE WITH CONDITIONS SET BY THE OFFICE AND THE OFFICE OF GENERAL 23 SERVICES; PROVIDED THAT THE QUALIFIED BUSINESS SHALL ACCEPT SOLE RESPON- 24 SIBILITY FOR ANY PAYMENT DUE THE VENDOR. THE OFFICE SHALL DEVELOP SUCH 25 RULES AND REGULATIONS AS ARE NEEDED TO IMPLEMENT SUCH A PROGRAM AND TO 26 DETERMINE THE ELIGIBILITY FOR PARTICIPATION IN SUCH PROGRAM. 27 S 2. Section 210 of the tax law is amended by adding a new subdivision 28 44 to read as follows: 29 44. TELECOMMUTING JOB CREATION WAGE TAX CREDIT. (A) A TAXPAYER SHALL 30 BE ALLOWED A CREDIT TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE 31 TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF SUCH CREDIT SHALL BE AS 32 PRESCRIBED BY PARAGRAPH (D) OF THIS SUBDIVISION. 33 (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL 34 HAVE THE FOLLOWING MEANINGS: 35 (I) "TELECOMMUTING JOB CREATION WAGES" MEANS WAGES PAID BY THE TAXPAY- 36 ER FOR EMPLOYMENT, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT IS IN A 37 TELECOMMUTING JOB AND PERFORMED BY TELECOMMUTING EMPLOYEES. 38 (II) "TELECOMMUTING JOB" MEANS A POSITION THAT DID NOT EXIST IN THE 39 TAXPAYER'S BUSINESS IN NEW YORK STATE DURING THE THREE TAXABLE YEARS 40 PRIOR TO HIRING THE TELECOMMUTING EMPLOYEES FOR WHOM THE CREDIT IS 41 CLAIMED AND WHICH PROVIDES NOT LESS THAN TWENTY HOURS PER WEEK OF 42 EMPLOYMENT. 43 (III) "TELECOMMUTING EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVED 44 TELECOMMUTING JOB CREATION WAGES AND WHO WAS NOT EMPLOYED BY THE TAXPAY- 45 ER IN THE THREE PRIOR TAXABLE YEARS, AND WHO PERFORMS HIS OR HER JOB 46 DUTY FROM HIS OR HER RESIDENCE. 47 (IV) "TAXPAYER" MEANS A NEW YORK TAXPAYER AS DEFINED IN PARAGRAPH (F) 48 OF SUBDIVISION ONE OF THIS SECTION. 49 (C) THE CREDIT MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE 50 TELECOMMUTING EMPLOYEE IS EMPLOYED BY THE TAXPAYER, PROVIDED, HOWEVER, 51 WHERE A TELECOMMUTING EMPLOYEE IS HIRED IN THE LAST QUARTER OF A TAXABLE 52 YEAR AND IS EMPLOYED BY THE TAXPAYER FOR THE ENTIRE FOLLOWING TAXABLE 53 YEAR, THE TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR THE TAXABLE YEAR 54 OF THE HIRING AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH 55 REFLECTS WAGES PAID IN SUCH YEAR. A. 3046 13 1 (D) THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE PERSONAL 2 INCOME TAX GENERATED BY THE TELECOMMUTING EMPLOYEE BY THE TAXPAYER, 3 PROVIDED, HOWEVER, THAT THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION 4 WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT TO THE 5 TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY NOT, IN THE 6 AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION TWO 7 HUNDRED NINE OF THIS ARTICLE COMPUTED WITHOUT REGARD TO ANY CREDIT 8 PROVIDED FOR BY THIS ARTICLE. 9 (E) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI- 10 VISION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX 11 DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN 12 PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION, HOWEVER, IF 13 THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED 14 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH 15 AMOUNT, OR IF ANY PART OF THE CREDIT OR CARRYOVERS OF SUCH CREDIT MAY 16 NOT BE DEDUCTED FROM THE TAX OTHERWISE DUE BY REASON OF THE FINAL 17 SENTENCE OF PARAGRAPH (D) OF THIS SUBDIVISION, ANY AMOUNT OF CREDIT OR 18 CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY 19 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM 20 THE TAX FOR SUCH YEAR OR YEARS. 21 S 3. Section 606 of the tax law is amended by adding a new subsection 22 (u) to read as follows: 23 (U) TELECOMMUTING JOB CREATION WAGE TAX CREDIT. (1) A TAXPAYER SHALL 24 BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE 25 TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF SUCH CREDIT SHALL BE AS 26 PRESCRIBED BY PARAGRAPH THREE OF THIS SUBSECTION. 27 (2) FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL 28 HAVE THE FOLLOWING MEANINGS: 29 (I) "TELECOMMUTING JOB" MEANS A POSITION THAT DID NOT EXIST IN THE 30 TAXPAYER'S BUSINESS IN THE THREE TAXABLE YEARS PRIOR TO HIRING THE TELE- 31 COMMUTING EMPLOYEES FOR WHOM THE CREDIT IS CLAIMED AND WHICH PROVIDES 32 NOT LESS THAN TWENTY HOURS PER WEEK OF EMPLOYMENT. 33 (II) "TELECOMMUTING JOB CREATION WAGES" MEANS WAGES PAID BY THE 34 TAXPAYER FOR EMPLOYMENT, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT 35 IS IN A TELECOMMUTING JOB CREATED FOR AND PERFORMED BY TELECOMMUTING 36 EMPLOYEES. 37 (III) "TELECOMMUTING EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES 38 TELECOMMUTING JOB CREATION WAGES, WHO WAS NOT EMPLOYED BY THE TAXPAYER 39 IN THE THREE PRIOR TAXABLE YEARS, AND WHO PERFORMS THEIR JOB DUTIES FROM 40 HIS OR HER RESIDENCE. 41 (IV) "TAXPAYER" MEANS A NEW YORK TAXPAYER, AS DEFINED IN PARAGRAPH (F) 42 OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. 43 (V) THE CREDIT MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE 44 TELECOMMUTING EMPLOYEE IS EMPLOYED BY THE TAXPAYER, PROVIDED, HOWEVER, 45 WHERE A TELECOMMUTING EMPLOYEE IS HIRED IN THE LAST QUARTER OF A TAXABLE 46 YEAR AND IS EMPLOYED BY THE TAXPAYER FOR THE ENTIRE FOLLOWING TAXABLE 47 YEAR, THE TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR THE TAXABLE YEAR 48 OF THE HIRING AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH 49 REFLECTS WAGES PAID IN SUCH YEAR. 50 (3) THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE PERSONAL 51 INCOME TAX GENERATED BY THE TELECOMMUTING EMPLOYEES EMPLOYED BY THE 52 TAXPAYER, PROVIDED, HOWEVER, THAT THE CREDIT PROVIDED FOR UNDER THIS 53 SUBSECTION WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH 54 CREDIT TO THE TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY 55 NOT, IN THE AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER A. 3046 14 1 SECTION TWO HUNDRED NINE OF THIS CHAPTER COMPUTED WITHOUT REGARD TO ANY 2 CREDIT PROVIDED FOR BY THIS ARTICLE. 3 (4) IF THE AMOUNT OF THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED 4 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S 5 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART OF THE CREDIT OR 6 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE 7 TAX OTHERWISE DUE BY REASON OF THE FINAL SENTENCE IN PARAGRAPH THREE OF 8 THIS SUBSECTION, MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND 9 MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. 10 S 4. This act shall take effect on the one hundred eightieth day after 11 it shall have become a law. 12 PART C 13 Section 1. The general municipal law is amended by adding a new 14 section 959-c to read as follows: 15 S 959-C. DECERTIFICATION DUE TO THE OUTSOURCING OF JOBS. A CERTIFIED 16 BUSINESS ENTERPRISE IN AN EMPIRE ZONE SHALL BE DECERTIFIED BY THE 17 COMMISSIONER, THE LOCAL EMPIRE ZONE CERTIFICATION OFFICER AND THE 18 COMMISSIONER OF LABOR IF IT IS DETERMINED THAT SUCH CERTIFIED BUSINESS 19 ENTERPRISE HAS FAILED TO MEET JOB CREATION PROJECTIONS AS SET FORTH IN 20 THE CERTIFICATION PROCESS, AND IT IS FOUND THAT SUCH CERTIFIED BUSINESS 21 HAS OUTSOURCED JOBS. PRIOR TO THE COMMISSIONER, THE LOCAL EMPIRE ZONE 22 CERTIFICATION OFFICER AND THE COMMISSIONER OF LABOR DECERTIFYING SUCH 23 CERTIFIED BUSINESS ENTERPRISE, THEY SHALL PROVIDE NOTICE TO THE CERTI- 24 FIED BUSINESS ENTERPRISE OF THEIR INTENT TO DECERTIFY SUCH CERTIFIED 25 BUSINESS ENTERPRISE AND OF ITS RIGHT TO REQUEST A HEARING. A CERTIFIED 26 BUSINESS ENTERPRISE SHALL HAVE THIRTY DAYS WITHIN WHICH TO REQUEST A 27 HEARING FROM ITS RECEIPT OF THE NOTICE OF INTENT TO REVOKE CERTIFICATION 28 AND OPPORTUNITY FOR A HEARING. FAILURE TO REQUEST A HEARING WITHIN THIR- 29 TY DAYS SHALL BE DEEMED A WAIVER OF THE CERTIFIED BUSINESS ENTERPRISE'S 30 RIGHT TO A HEARING. FOR THE PURPOSES OF THIS SECTION, "OUTSOURCE" MEANS 31 TO RELOCATE OR MOVE JOBS OUTSIDE OF THE STATE OF NEW YORK TO ANOTHER 32 STATE OR COUNTRY. 33 S 2. This act shall take effect immediately. 34 PART D 35 Section 1. Section 208 of the tax law is amended by adding two new 36 subdivisions 20 and 21 to read as follows: 37 20. "MANUFACTURER" SHALL MEAN A TAXPAYER WHICH DURING THE TAXABLE YEAR 38 IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF GOODS BY MANUFACTURING, 39 PROCESSING, ASSEMBLING, REFINING, MINING, EXTRACTING, FARMING, AGRICUL- 40 TURE, HORTICULTURE, FLORICULTURE, VITICULTURE OR COMMERCIAL FISHING. 41 MOREOVER, FOR PURPOSES OF COMPUTING THE CAPITAL BASE IN A COMBINED 42 REPORT, THE GROUP SHALL BE CONSIDERED A "MANUFACTURER" FOR PURPOSES OF 43 THIS ARTICLE ONLY IF THE COMBINED GROUP DURING THE TAXABLE YEAR IS PRIN- 44 CIPALLY ENGAGED IN THE ACTIVITIES SET FORTH IN THIS SUBDIVISION, OR ANY 45 COMBINATION THEREOF. 46 21. "PRINCIPALLY ENGAGED" SHALL INCLUDE A TAXPAYER OR A COMBINED GROUP 47 IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE GROSS 48 RECEIPTS OF THE TAXPAYER OR COMBINED GROUP, RESPECTIVELY, ARE DERIVED 49 FROM RECEIPTS FROM THE SALE OF GOODS PRODUCED BY MANUFACTURING. IN 50 COMPUTING A COMBINED GROUP'S GROSS RECEIPTS, INTERCORPORATE RECEIPTS 51 SHALL BE ELIMINATED. A. 3046 15 1 S 2. Section 209 of the tax law is amended by adding a new subdivision 2 11 to read as follows: 3 11. FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO 4 THOUSAND NINE, A TAXPAYER WHO IS A MANUFACTURER SHALL BE FULLY EXEMPT 5 FROM ALL TAXES IMPOSED BY THIS ARTICLE. 6 S 3. Subsection (f) of section 601 of the tax law, as amended by chap- 7 ter 248 of the laws of 1997, is amended to read as follows: 8 (f) Partners and partnerships. A partnership as such shall not be 9 subject to tax under this article. Persons carrying on business as part- 10 ners shall be liable for tax under this article only in their separate 11 or individual capacities. NOTWITHSTANDING THIS OR ANY OTHER SECTION OF 12 THIS ARTICLE, A PERSON'S LIABILITY FOR TAX UNDER THIS SUBSECTION, IF 13 SUCH PERSON'S PRIMARY ACTIVITY IS IN HIS OR HER ROLE AS A MANUFACTURER, 14 SHALL BE ZERO FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO 15 THOUSAND NINE. FOR PURPOSES OF THIS SECTION A PERSON SHALL BE CLASSI- 16 FIED AS A MANUFACTURER IF, HE OR SHE IS PRINCIPALLY ENGAGED IN THE 17 PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING, REFINING, 18 MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE, 19 VITICULTURE OR COMMERCIAL FISHING. IN ADDITION, FOR PURPOSES OF COMPUT- 20 ING THE CAPITAL BASE IN A COMBINED REPORT, THE GROUP SHALL BE CONSIDERED 21 A MANUFACTURER FOR PURPOSES OF THIS ARTICLE, ONLY IF THE COMBINED GROUP 22 DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET 23 FORTH IN THIS SUBSECTION, OR ANY COMBINATION THEREOF. FOR PURPOSES OF 24 THIS SUBSECTION, A TAXPAYER IS "PRINCIPALLY ENGAGED" IN THE DESCRIBED 25 ACTIVITY IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE 26 GROSS RECEIPTS OF THE TAXPAYER ARE DERIVED FROM RECEIPTS FROM ACTIVITIES 27 COVERED BY THIS SUBSECTION. As used in this article, the term "partner- 28 ship" shall include, unless a different meaning is clearly required, a 29 subchapter K limited liability company. The term "subchapter K limited 30 liability company" shall mean a limited liability company classified as 31 a partnership for federal income tax purposes. The term "limited liabil- 32 ity company" means a domestic limited liability company or a foreign 33 limited liability company, as defined in section one hundred two of the 34 limited liability company law, a limited liability investment company 35 formed pursuant to section five hundred seven of the banking law, or a 36 limited liability trust company formed pursuant to section one hundred 37 two-a of the banking law. 38 S 4. Subsection (b) of section 602 of the tax law, as amended by chap- 39 ter 333 of the laws of 1987, is amended to read as follows: 40 (b) The tax imposed by this section on New York minimum taxable 41 income, as defined in section six hundred twenty-two or section six 42 hundred thirty-six, as the case may be, shall be at the rate of six 43 percent, EXCEPT FOR, IN THE CASE OF INCOME DERIVED FROM ACTIVITY OF A 44 PERSON CLASSIFIED AS A MANUFACTURER UNDER SUBSECTION (F) OF SECTION SIX 45 HUNDRED ONE OF THIS PART, THE TAX IMPOSED BY THIS SECTION ON NEW YORK 46 MINIMUM TAXABLE INCOME FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 47 FIRST, TWO THOUSAND NINE, SHALL BE ZERO. 48 S 5. This act shall take effect immediately and shall apply to taxable 49 years commencing on or after January 1, 2009; provided, however, that 50 the commissioner of taxation and finance is authorized to promulgate any 51 and all rules and regulations and take any other measures necessary for 52 the timely implementation of this act on its effective date on or before 53 such date. 54 S 2. Severability clause. If any clause, sentence, paragraph, subdivi- 55 sion, section or part of this act shall be adjudged by any court of 56 competent jurisdiction to be invalid, such judgment shall not affect, A. 3046 16 1 impair, or invalidate the remainder thereof, but shall be confined in 2 its operation to the clause, sentence, paragraph, subdivision, section 3 or part thereof directly involved in the controversy in which such judg- 4 ment shall have been rendered. It is hereby declared to be the intent of 5 the legislature that this act would have been enacted even if such 6 invalid provisions had not been included herein. 7 S 3. This act shall take effect immediately provided, however, that 8 the applicable effective date of Parts A through D of this act shall be 9 as specifically set forth in the last section of such Parts.