Bill Text: NY A05407 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the general municipal law, in relation to the creation of research and development centers; to amend the tax law, in relation to providing tax credits and benefits for research and development enterprises, qualified research production facilities; and to provide a research and development wage, expense and grant tax credit and a certified research and development enterprise credit for real property taxes
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-07-01 - held for consideration in ways and means [A05407 Detail]
Download: New_York-2009-A05407-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5407 2009-2010 Regular Sessions I N A S S E M B L Y February 13, 2009 ___________ Introduced by M. of A. BUTLER -- read once and referred to the Committee on Ways and Means AN ACT to amend the general municipal law, in relation to the creation of research and development centers; to amend the tax law, in relation to providing tax credits and benefits for research and development enterprises, qualified research production facilities; and to provide a research and development wage, expense and grant tax credit and a certified research and development enterprise credit for real property taxes 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 "research and development centers program". 3 S 2. Section 957 of the general municipal law is amended by adding a 4 new subdivision (v) to read as follows: 5 (V) "RESEARCH AND DEVELOPMENT CENTER" SHALL MEAN AN AREA WITHIN THE 6 STATE THAT HAS BEEN DESIGNATED AS A RESEARCH AND DEVELOPMENT CENTER 7 PURSUANT TO THIS ARTICLE. 8 S 3. Section 960 of the general municipal law is amended by adding a 9 new subdivision (f) to read as follows: 10 (F) THE EMPIRE ZONE BOARD SHALL DETERMINE THE ACTUAL GEOGRAPHIC BOUND- 11 ARIES OF RESEARCH AND DEVELOPMENT CENTERS AFTER A REVIEW OF PROPOSED 12 BOUNDARIES MADE BY RESOLUTION OF THE LEGISLATIVE BODY OF THE COUNTY IN 13 WHICH A DESIGNATED RESEARCH AND DEVELOPMENT CENTER IS LOCATED, OR BY THE 14 CITY COUNCIL IN THE CASE OF THE CITY OF NEW YORK. 15 S 4. Article 18-B of the general municipal law is amended by adding a 16 new section 970 to read as follows: 17 S 970. RESEARCH AND DEVELOPMENT CENTERS. (A) CREATION OF RESEARCH AND 18 DEVELOPMENT CENTERS. THE RESEARCH AND DEVELOPMENT CENTER PROGRAM IS 19 HEREBY CREATED TO FOSTER PHYSICAL, ENGINEERING AND BIOLOGICAL RESEARCH. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08167-01-9 A. 5407 2 1 (B) PURPOSE. FOR THE PURPOSE OF THIS PROGRAM, A RESEARCH AND DEVELOP- 2 MENT ESTABLISHMENT SHALL MEAN AN ESTABLISHMENT LOCATED IN NEW YORK STATE 3 PRIMARILY ENGAGED IN CONDUCTING RESEARCH AND EXPERIMENTAL DEVELOPMENT IN 4 THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES, SUCH AS AGRICULTURE, ELEC- 5 TRONICS, ENVIRONMENTAL, BIOLOGY, BOTANY, BIOTECHNOLOGY, COMPUTERS, CHEM- 6 ISTRY, FOOD, FISHERIES, FORESTS, GEOLOGY, HEALTH, MATHEMATICS, MEDICINE, 7 OCEANOGRAPHY, PHARMACY, PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS. 8 (C) RESPONSIBILITIES OF THE COMMISSIONER. THE COMMISSIONER SHALL: 9 (1) AFTER CONSULTATION WITH THE DIRECTOR OF THE BUDGET, THE COMMIS- 10 SIONER OF LABOR, AND THE COMMISSIONER OF TAXATION AND FINANCE, PROMUL- 11 GATE REGULATIONS GOVERNING (I) THE JOINT CERTIFICATION BY THE COMMIS- 12 SIONER AND THE COMMISSIONER OF LABOR, AS TO THE ELIGIBILITY OF A 13 BUSINESS ENTERPRISE FOR BENEFITS SET FORTH IN SUBDIVISION (E) OF THIS 14 SECTION, PROVIDED, HOWEVER, THAT A BUSINESS ENTERPRISE THAT HAS SHIFTED 15 ITS OPERATIONS, OR SOME PORTION THEREOF, FROM AN AREA WITHIN NEW YORK 16 STATE NOT DESIGNATED AS A RESEARCH AND DEVELOPMENT CENTER TO AN AREA SO 17 DESIGNATED SHALL NOT BE CERTIFIED TO RECEIVE SUCH BENEFITS, EXCEPT WHERE 18 SUCH SHIFT IN OPERATIONS IS FROM A BUSINESS INCUBATOR FACILITY OPERATED 19 BY A MUNICIPALITY OR BY A PUBLIC OR PRIVATE NOT-FOR-PROFIT ENTITY WHICH 20 PROVIDES SPACE AND BUSINESS SUPPORT SERVICES TO NEWLY ESTABLISHED FIRMS; 21 AND (II) THE JOINT REVOCATION BY THE COMMISSIONER AND THE COMMISSIONER 22 OF LABOR OF A CERTIFICATE TO RECEIVE BENEFITS SET FORTH IN SUBDIVISION 23 (E) OF THIS SECTION UPON A FINDING THAT (I) SUCH BUSINESS ENTERPRISE 24 MADE MATERIAL MISREPRESENTATION OF THE FACT ON ITS APPLICATION FOR 25 CERTIFICATION, OR SUCH BUSINESS ENTERPRISE FAILED TO DISCLOSE FACTS IN 26 ITS APPLICATION FOR CERTIFICATION CONSTITUTING GROUNDS FOR REFUSING TO 27 ISSUE CERTIFICATION; (II) THE BUSINESS ENTERPRISE HAS FAILED TO 28 CONSTRUCT, EXPAND, REHABILITATE OR OPERATE ITS FACILITY SUBSTANTIALLY IN 29 ACCORDANCE WITH THE REPRESENTATIONS CONTAINED IN ITS APPLICATION FOR 30 CERTIFICATION; (III) THE BUSINESS ENTERPRISE HAS FAILED TO CREATE NEW 31 EMPLOYMENT OR PREVENT A LOSS OF EMPLOYMENT IN THE APPROPRIATE RESEARCH 32 AND DEVELOPMENT CENTER PROVIDED, HOWEVER, THAT SUCH FAILURE WAS NOT DUE 33 TO ECONOMIC CIRCUMSTANCES OR CONDITIONS WHICH SUCH BUSINESS COULD NOT 34 ANTICIPATE OR WHICH WERE BEYOND ITS CONTROL; WHERE APPLICABLE, THE BUSI- 35 NESS HAS FAILED TO SUBMIT AN ANNUAL REPORT AFTER IT HAS APPLIED FOR 36 CENTER INCENTIVES OR PROGRAM ASSISTANCE BASED ON NEW HIRES OR INVEST- 37 MENT. REVOCATION OF SUCH CERTIFICATE SHALL BECOME EFFECTIVE ON THE DATE 38 DETERMINED TO BE THE EARLIEST EVENT CONSTITUTING GROUNDS FOR REVOKING 39 SUCH CERTIFICATE. THE COMMISSIONER SHALL NOTIFY THE COMMISSIONER OF 40 TAXATION AND FINANCE THAT SUCH DECERTIFICATION HAS OCCURRED, AND SUCH 41 NOTIFICATION SHALL INCLUDE THE EFFECTIVE DATE OF SUCH DECERTIFICATION 42 AND THE CENTER TO WHICH DECERTIFICATION APPLIES; 43 (2) ESTABLISH A PRIORITY FOR THE ALLOCATION OF AUTHORITY TO ISSUE 44 PRIVATE ACTIVITY BONDS FOR THE BENEFIT OF MUNICIPALITIES AND BUSINESS 45 ENTERPRISES LOCATED OR TO BE LOCATED WITHIN A RESEARCH AND DEVELOPMENT 46 CENTER; 47 (3) COORDINATE THE RESEARCH AND DEVELOPMENT CENTER PROGRAM WITH STATE 48 AGENCIES AND AUTHORITIES, THE PROVISION OF BUSINESS DEVELOPMENT PROGRAMS 49 AND SERVICES FOR EACH RESEARCH AND DEVELOPMENT CENTER IN ORDER TO STIMU- 50 LATE THE CREATION AND DEVELOPMENT OF NEW BUSINESSES AND MAY REQUEST AND 51 SHALL RECEIVE FROM ANY DEPARTMENT, DIVISION, BOARD, BUREAU, COMMISSION, 52 AGENCY OR PUBLIC AUTHORITY OF THE STATE SUCH ASSISTANCE AS MAY BE NECES- 53 SARY; AND 54 (4) RECOMMEND FOR LOAN AND GRANT PROGRAMS OF THE DEPARTMENT OF ECONOM- 55 IC DEVELOPMENT AND THE URBAN DEVELOPMENT CORPORATION, SPECIAL TERMS AND 56 CONDITIONS FOR VIABLE CENTER PROJECTS AND PROGRAMS. A. 5407 3 1 (D) DESIGNATION OF RESEARCH AND DEVELOPMENT CENTERS. (1) THE FOLLOWING 2 SEVEN RESEARCH AND DEVELOPMENT CENTERS ARE HEREBY DESIGNATED. EACH 3 CENTER SHALL NOT EXCEED A TOTAL OF FOUR SQUARE MILES IN AREA. EACH 4 CENTER MUST BE LOCATED WITHIN THE GEOGRAPHIC BOUNDARIES OF THE FOLLOW- 5 ING: 6 (I) ERIE COUNTY, 7 (II) MONROE COUNTY, 8 (III) ONONDAGA COUNTY, 9 (IV) ALBANY COUNTY, PROVIDED HOWEVER, UP TO TWO SQUARE MILES MAY BE 10 LOCATED IN RENSSELAER COUNTY, 11 (V) BROOME COUNTY, PROVIDED HOWEVER, UP TO ONE SQUARE MILE MAY BE 12 LOCATED IN TIOGA COUNTY, 13 (VI) THE CITY OF NEW YORK, 14 (VII) NASSAU COUNTY AND SUFFOLK COUNTY, PROVIDED THAT NO MORE THAN TWO 15 SQUARE MILES ARE LOCATED IN EITHER COUNTY. 16 (2) EACH CENTER MAY CONTAIN NON-CONTIGUOUS AREAS, PROVIDED THAT AT 17 LEAST ONE CONTIGUOUS AREA IS AT LEAST ONE SQUARE MILE AND TWO CONTIGUOUS 18 AREAS ARE AT LEAST ONE HALF OF ONE SQUARE MILE EACH. 19 (E) SPECIAL PROVISIONS RELATING TO RESEARCH AND DEVELOPMENT CENTERS. 20 IN ADDITION TO THE BENEFITS PROVIDED IN THIS SECTION, ADDITIONAL BENE- 21 FITS APPLICABLE TO RESEARCH AND DEVELOPMENT CENTERS SHALL BE PROVIDED AS 22 FOLLOWS: 23 (1) A REFUND OR CREDIT FOR INCREASES IN EMPLOYMENT AGAINST THE TAXES 24 IMPOSED UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THE TAX LAW PURSU- 25 ANT TO SECTION TWENTY-FIVE-A OF THE TAX LAW; 26 (2) A CREDIT FOR RESEARCH AND DEVELOPMENT EXPENSES AGAINST THE TAXES 27 IMPOSED UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THE TAX LAW PURSU- 28 ANT TO SECTION TWENTY-FIVE-B OF THE TAX LAW; 29 (3) A REFUND OR CREDIT FOR RESEARCH AND DEVELOPMENT GRANTS AGAINST THE 30 TAXES IMPOSED UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THE TAX LAW 31 PURSUANT TO SECTION TWENTY-FIVE-C OF THE TAX LAW; 32 (4) A REFUND OR CREDIT FOR REAL PROPERTY TAXES AGAINST THE TAXES 33 IMPOSED UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THE TAX LAW PURSU- 34 ANT TO SECTION TWENTY-FIVE-D OF THE TAX LAW; 35 (5) TAX BENEFITS PROVIDED UNDER THE EMPIRE ZONE PROGRAM; 36 (6) AN INCREASE IN THE RATE OF THE INVESTMENT TAX CREDIT; 37 (7) AN EXCLUSION OF INCOME FOR QUALIFIED RESEARCH SERVICES FOR THE 38 PURPOSE OF THE CALCULATION OF TAXES IMPOSED UNDER ARTICLE NINE-A OR 39 ARTICLE TWENTY-TWO OF THE TAX LAW; 40 (8) AN EXCLUSION OF INCOME FOR QUALIFIED ROYALTY PAYMENTS FOR THE 41 PURPOSE OF THE CALCULATION OF TAXES IMPOSED UNDER ARTICLE NINE-A OR 42 ARTICLE TWENTY-TWO OF THE TAX LAW. 43 (F) TERMINATION OR REVISION OF A RESEARCH AND DEVELOPMENT CENTER. (1) 44 EXCEPT AS PROVIDED IN THIS SECTION, ANY DESIGNATION OF AN AREA AS A 45 RESEARCH AND DEVELOPMENT ZONE SHALL REMAIN IN EFFECT DURING THE PERIOD 46 BEGINNING ON THE DATE OF DESIGNATION AND ENDING DECEMBER THIRTY-FIRST, 47 TWO THOUSAND TWENTY-NINE. 48 (2) THE LEGISLATIVE BODY OF THE COUNTY IN WHICH A DESIGNATED RESEARCH 49 AND DEVELOPMENT CENTER IS LOCATED, OR BY THE CITY COUNCIL IN THE CASE OF 50 THE CITY OF NEW YORK MAY, BY RESOLUTION, SUBMIT TO THE COMMISSIONER A 51 REQUEST TO REVISE THE BOUNDARIES OF AN EXISTING RESEARCH AND DEVELOPMENT 52 CENTER. THE COMMISSIONER MAY, AFTER CONSULTING WITH THE COMMISSIONER OF 53 LABOR, APPROVE SUCH REVISION SUBJECT TO THE FOLLOWING PROVISIONS: 54 (I) THE COMMISSIONER MAY GRANT APPROVAL OF REVISION OF THE BORDERS OF 55 A RESEARCH AND DEVELOPMENT CENTER WITHOUT PRIOR PUBLIC NOTICE AND WITH- 56 OUT PRIOR PUBLIC HEARING IF SUCH REVISION ADDS TERRITORY TO AN EXISTING A. 5407 4 1 RESEARCH AND DEVELOPMENT CENTER, BUT DOES NOT REMOVE TERRITORY FROM SUCH 2 CENTER. 3 (II) THE COMMISSIONER MAY GRANT APPROVAL OF A REVISION OF THE BORDERS 4 OF A RESEARCH AND DEVELOPMENT CENTER AFTER PUBLIC NOTICE OF SUCH 5 REVISION AND A PUBLIC HEARING AT LEAST THIRTY DAYS PRIOR TO THE EFFEC- 6 TIVE DATE OF SUCH REVISION, IF SUCH REVISION REMOVES TERRITORY FROM AN 7 EXISTING RESEARCH AND DEVELOPMENT CENTER. 8 (III) THE REVISION OF THE BORDERS OF A RESEARCH AND DEVELOPMENT CENTER 9 SHALL HAVE NO EFFECT ON THE DURATION OF THE DESIGNATION OF THE RESEARCH 10 AND DEVELOPMENT CENTER AS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION. 11 S 5. The tax law is amended by adding five new sections 25-a, 25-b, 12 25-c, 25-d and 25-e to read as follows: 13 S 25-A. RESEARCH AND DEVELOPMENT WAGE CREDIT. (A) ALLOWANCE OF CREDIT. 14 A TAXPAYER WHICH IS A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 15 (CRDE), AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO 16 OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO 17 THE PROVISIONS REFERENCED IN SUBDIVISION (D) OF THIS SECTION, TO BE 18 COMPUTED AS HEREINAFTER PROVIDED. 19 (B) DEFINITIONS. (1) THE TERM "CERTIFIED RESEARCH AND DEVELOPMENT 20 ENTERPRISE" OR "CRDE" SHALL MEAN A BUSINESS FACILITY WHICH DURING THE 21 TAXABLE YEAR IS PRINCIPALLY ENGAGED IN CONDUCTING RESEARCH AND DEVELOP- 22 MENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES AND WHICH HAS BEEN 23 DESIGNATED UNDER SECTION NINE HUNDRED SEVENTY OF THE GENERAL MUNICIPAL 24 LAW. 25 (2) THE TERM "CERTIFIED RESEARCH PRODUCTION FACILITY" OR "CRPF" SHALL 26 MEAN A BUSINESS FACILITY BUILT IN NEW YORK STATE IN CONJUNCTION WITH A 27 CRDE TO PRODUCE OR MANUFACTURE PRODUCTS WHICH HAVE BEEN OR ARE BEING 28 DEVELOPED AT THE CRDE, PROVIDED THAT THE CRPF IS ESTABLISHED AFTER THE 29 DESIGNATION OF THE CRDE, AND WHICH HAS BEEN DESIGNATED UNDER SECTION 30 NINE HUNDRED SEVENTY OF THE GENERAL MUNICIPAL LAW. 31 (3) THE TERM "RESEARCH AND DEVELOPMENT JOB" SHALL MEAN AN INDIVIDUAL 32 EMPLOYED FULL TIME FOR AT LEAST ONE-HALF OF A TAXABLE YEAR AT A CRDE IN 33 WHICH THE PRIMARY JOB FUNCTION OF THE INDIVIDUAL IS CLASSIFIED AS 34 RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES 35 UNDER THE NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM. 36 (4) THE TERM "RESEARCH PRODUCTION JOB" SHALL MEAN AN INDIVIDUAL 37 EMPLOYED FULL TIME FOR AT LEAST ONE-HALF OF A TAXABLE YEAR AT A CRPF IN 38 WHICH THE PRIMARY JOB FUNCTION OF THE INDIVIDUAL IS CLASSIFIED AS MANU- 39 FACTURING UNDER THE NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM. 40 (5) THE TERM "EMPLOYMENT INCREASE YEAR" SHALL MEAN THE TAXABLE YEAR IN 41 WHICH THE INCREASE IN EMPLOYMENT FOR WHICH THIS CREDIT IS CLAIMED 42 OCCURS. 43 (6) THE TERM "BASE YEAR" SHALL MEAN THE TAXABLE YEAR IMMEDIATELY 44 PRECEDING THE EMPLOYMENT INCREASE YEAR. 45 (7) THE TERM "EMPLOYMENT INCREASE LEVEL" SHALL MEAN THE DIFFERENCE 46 BETWEEN THE EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR AND THE 47 EMPLOYMENT NUMBER IN THE BASE YEAR. IF EMPLOYMENT INCREASE LEVEL IS LESS 48 THAN ZERO IN ANY TAXABLE YEAR, IT SHALL BE ASSUMED TO BE ZERO. 49 (8) THE TERM "EMPLOYMENT NUMBER" SHALL MEAN THE AVERAGE NUMBER OF 50 RESEARCH AND DEVELOPMENT JOBS AT A CRDE AND RESEARCH PRODUCTION JOBS AT 51 A CRPF. SUCH NUMBER SHALL BE COMPUTED BY DETERMINING THE NUMBER OF SUCH 52 QUALIFIED INDIVIDUALS EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST DAY 53 OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND 54 THE THIRTY-FIRST DAY OF DECEMBER DURING THE APPLICABLE TAXABLE YEAR, 55 ADDING TOGETHER THE NUMBER OF SUCH INDIVIDUALS DETERMINED TO BE SO 56 EMPLOYED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE A. 5407 5 1 NUMBER OF SUCH DATES OCCURRING WITHIN SUCH APPLICABLE TAXABLE YEAR. SUCH 2 NUMBER SHALL NOT INCLUDE INDIVIDUALS EMPLOYED WITHIN THE IMMEDIATELY 3 PRECEDING SIXTY MONTHS BY A RELATED PERSON TO THE TAXPAYER, AS SUCH TERM 4 "RELATED PERSON" IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF 5 SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN- 6 UE CODE. 7 (9) THE TERM "TOTAL WAGES" SHALL MEAN THE TOTAL SALARIES AND WAGES 8 PAID TO EMPLOYEES INCLUDED IN THE CALCULATION OF THE EMPLOYMENT NUMBER 9 IN THE EMPLOYMENT INCREASE YEAR. 10 (10) THE TERM "AVERAGE WAGES" SHALL MEAN TOTAL WAGES DIVIDED BY THE 11 EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR. 12 (C) APPLICATION OF THE CREDIT. (1) THE AMOUNT OF CREDIT SHALL EQUAL 13 THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER 14 OF A PARTNERSHIP) OF FIVE PERCENT OF THE AVERAGE WAGES AND THE EMPLOY- 15 MENT INCREASE LEVEL. 16 (2) THE CREDIT MAY BE ALLOWED IN THE EMPLOYMENT INCREASE YEAR AND THE 17 FOUR TAXABLE YEARS IMMEDIATELY FOLLOWING THE EMPLOYMENT INCREASE YEAR, 18 PROVIDED THAT IF THE EMPLOYMENT NUMBER IN ANY TAXABLE YEAR IN WHICH THE 19 CREDIT IS CLAIMED IS LESS THAN THE EMPLOYMENT NUMBER IN THE EMPLOYMENT 20 INCREASE YEAR, THE AMOUNT OF CREDIT MUST BE RECALCULATED BY SUBSTITUTING 21 THE LOWER EMPLOYMENT NUMBER IN THE CURRENT TAXABLE YEAR FOR THE EMPLOY- 22 MENT NUMBER IN THE EMPLOYMENT INCREASE YEAR FOR THE PURPOSE OF CALCULAT- 23 ING THE EMPLOYMENT INCREASE LEVEL AND THIS LOWER EMPLOYMENT NUMBER SHALL 24 BE DEEMED TO BE THE EMPLOYMENT NUMBER FOR THE EMPLOYMENT INCREASE YEAR 25 FOR ANY FUTURE APPLICATION OF THIS CREDIT. 26 (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN 27 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 28 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 41, 29 (2) ARTICLE 22: SECTION 606: SUBSECTION (QQ). 30 S 25-B. RESEARCH AND DEVELOPMENT EXPENSE CREDIT. (A) ALLOWANCE OF 31 CREDIT. A TAXPAYER WHICH IS A CERTIFIED RESEARCH AND DEVELOPMENT ENTER- 32 PRISE (CRDE), AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWEN- 33 TY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, 34 PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (D) OF THIS 35 SECTION, TO BE COMPUTED AS HEREINAFTER PROVIDED. 36 (B) DEFINITIONS. (1) THE TERM "CERTIFIED RESEARCH AND DEVELOPMENT 37 ENTERPRISE" OR "CRDE" SHALL HAVE THE SAME MEANING AS DEFINED BY SECTION 38 TWENTY-FIVE-A OF THIS ARTICLE. 39 (2) THE TERM "QUALIFIED RESEARCH AND DEVELOPMENT EXPENSE" SHALL MEAN 40 ANY EXPENSE INCURRED AT A CRDE TO CONDUCT RESEARCH AND DEVELOPMENT IN 41 THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES, SUCH AS AGRICULTURE, ELEC- 42 TRONICS, ENVIRONMENTAL, BIOLOGY, BOTANY, BIOTECHNOLOGY, COMPUTERS, CHEM- 43 ISTRY, FOOD, FISHERIES, FORESTS, GEOLOGY, HEALTH, MATHEMATICS, MEDICINE, 44 OCEANOGRAPHY, PHARMACY, PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS. 45 QUALIFIED RESEARCH AND DEVELOPMENT EXPENSES SHALL NOT INCLUDE THE COST 46 OF LABOR OR ANY EQUIPMENT FOR WHICH ANY INVESTMENT TAX CREDITS ARE 47 CLAIMED FOR. 48 (C) APPLICATION OF THE CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE 49 PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A 50 PARTNERSHIP) OF FIVE PERCENT OF QUALIFIED RESEARCH AND DEVELOPMENT 51 EXPENSES. 52 (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN 53 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 54 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 42, 55 (2) ARTICLE 22: SECTION 606: SUBSECTION (RR). A. 5407 6 1 S 25-C. RESEARCH AND DEVELOPMENT GRANT CREDIT. (A) ALLOWANCE OF CRED- 2 IT. A TAXPAYER WHICH IS A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 3 (CRDE), AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO 4 OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO 5 THE PROVISIONS REFERENCED IN SUBDIVISION (D) OF THIS SECTION, TO BE 6 COMPUTED AS HEREINAFTER PROVIDED. 7 (B) DEFINITIONS. (1) THE TERM "CERTIFIED RESEARCH AND DEVELOPMENT 8 ENTERPRISE" OR "CRDE" SHALL HAVE THE SAME MEANING AS DEFINED BY SECTION 9 TWENTY-FIVE-A OF THIS ARTICLE. 10 (2) THE TERM "UNIVERSITY RESEARCH CENTER" SHALL MEAN ANY DEPARTMENT, 11 FOUNDATION, OR BUSINESS VENTURE OPERATED SOLELY BY ANY INSTITUTION OF 12 HIGHER EDUCATION LOCATED IN NEW YORK STATE, RECOGNIZED AND APPROVED BY 13 THE REGENTS, OR ANY SUCCESSOR ORGANIZATION, OF THE UNIVERSITY OF THE 14 STATE OF NEW YORK WHICH PROVIDES A COURSE OF STUDY LEADING TO THE GRANT- 15 ING OF A POST-SECONDARY DEGREE, CERTIFICATE OR DIPLOMA. 16 (3) THE TERM "QUALIFIED RESEARCH AND DEVELOPMENT GRANT" SHALL MEAN 17 DONATION OF MONEY OR EQUIPMENT BY A CRDE TO A UNIVERSITY RESEARCH CENTER 18 WHICH WILL FACILITATE OR ASSIST THE UNIVERSITY RESEARCH CENTER TO 19 CONDUCT RESEARCH AND DEVELOPMENT WHICH IS SUBSTANTIALLY RELATED TO THE 20 RESEARCH AND DEVELOPMENT ACTIVITIES OF THE CRDE. 21 (C) APPLICATION OF THE CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE 22 PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A 23 PARTNERSHIP) OF TEN PERCENT OF QUALIFIED RESEARCH AND DEVELOPMENT 24 GRANTS. 25 (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN 26 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 27 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43, 28 (2) ARTICLE 22: SECTION 606: SUBSECTION (SS). 29 S 25-D. CREDIT FOR REAL PROPERTY TAXES. (A) ALLOWANCE OF CREDIT. A 30 TAXPAYER WHICH IS A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 31 (CRDE), AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO 32 OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO 33 THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF THIS SECTION, FOR ELIGI- 34 BLE REAL PROPERTY TAXES. 35 (B) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT 36 (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNER- 37 SHIP) OF (I) THE BENEFIT PERIOD FACTOR, (II) THE EMPLOYMENT INCREASE 38 FACTOR AND (III) THE ELIGIBLE REAL PROPERTY TAXES PAID OR INCURRED BY 39 THE CRDE DURING THE TAXABLE YEAR. HOWEVER, THE AMOUNT OF THE CREDIT MAY 40 NOT EXCEED THE CREDIT LIMITATION SET FORTH IN SUBDIVISION (J) OF THIS 41 SECTION. 42 (C) BENEFIT PERIOD FACTOR. THE BENEFIT PERIOD FACTORS ARE SET FORTH IN 43 THE FOLLOWING TABLE: 44 TAXABLE YEAR OF THE BENEFIT PERIOD FACTOR: 45 BENEFIT PERIOD: 46 1--10 1.0 47 11 .8 48 12 .6 49 13 .4 50 14 .2 51 15 0 52 (D) RESEARCH AND DEVELOPMENT JOB. THE TERM "RESEARCH AND DEVELOPMENT 53 JOB" SHALL HAVE THE SAME MEANING AS DEFINED BY SECTION TWENTY-FIVE-A OF 54 THIS ARTICLE. 55 (E) CENTER EMPLOYMENT INCREASE NUMBER. THE CENTER EMPLOYMENT INCREASE 56 NUMBER IS THE AVERAGE NUMBER OF RESEARCH AND DEVELOPMENT JOBS AT A CRDE. A. 5407 7 1 SUCH NUMBER SHALL BE COMPUTED BY DETERMINING THE NUMBER OF SUCH QUALI- 2 FIED INDIVIDUALS EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST DAY OF 3 MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE 4 THIRTY-FIRST DAY OF DECEMBER DURING THE APPLICABLE TAXABLE YEAR, ADDING 5 TOGETHER THE NUMBER OF SUCH INDIVIDUALS DETERMINED TO BE SO EMPLOYED ON 6 EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF 7 SUCH DATES OCCURRING WITHIN SUCH APPLICABLE TAXABLE YEAR. SUCH NUMBER 8 SHALL NOT INCLUDE INDIVIDUALS EMPLOYED WITHIN THE IMMEDIATELY PRECEDING 9 SIXTY MONTHS BY A RELATED PERSON TO THE TAXPAYER, AS SUCH TERM "RELATED 10 PERSON" IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF SUBSECTION 11 (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE. 12 (F) BASE YEAR. THE BASE YEAR IS THE TAXABLE YEAR IN WHICH A CRDE IS 13 FIRST CERTIFIED PURSUANT TO SECTION NINE HUNDRED SEVENTY OF THE GENERAL 14 MUNICIPAL LAW. 15 (G) CENTER EMPLOYMENT INCREASE NUMBER. THE CENTER EMPLOYMENT INCREASE 16 NUMBER SHALL EQUAL THE CENTER EMPLOYMENT NUMBER IN THE TAXABLE YEAR 17 MINUS THE CENTER EMPLOYMENT NUMBER IN THE BASE YEAR. THE CENTER EMPLOY- 18 MENT INCREASE NUMBER SHALL BE DEEMED TO BE ZERO IF THE CALCULATION OF 19 THE CENTER EMPLOYMENT INCREASE NUMBER RESULTS IN A NEGATIVE NUMBER. 20 (H) EMPLOYMENT INCREASE FACTOR. THE EMPLOYMENT INCREASE FACTORS ARE 21 SET FORTH IN THE FOLLOWING TABLE: 22 CENTER EMPLOYMENT INCREASE NUMBER: EMPLOYMENT INCREASE FAC 23 AT LEAST 150 1.0 24 AT LEAST 100 BUT LESS THAN 150: .8 25 AT LEAST 75 BUT LESS THAN 100: .6 26 AT LEAST 50 BUT LESS THAN 75: .4 27 AT LEAST 25 BUT LESS THAN 50: .2 28 AT LEAST 10 BUT LESS THAN 25: .1 29 ZERO 0 30 (I) ELIGIBLE REAL PROPERTY TAXES. THE TERM "ELIGIBLE REAL PROPERTY 31 TAXES" MEANS TAXES IMPOSED ON REAL PROPERTY WHICH IS OWNED BY THE CRDE 32 AND LOCATED IN A RESEARCH AND DEVELOPMENT CENTER WITH RESPECT TO WHICH 33 THE CRDE IS CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL 34 MUNICIPAL LAW, PROVIDED SUCH TAXES BECOME A LIEN ON THE REAL PROPERTY 35 DURING A TAXABLE YEAR IN WHICH THE OWNER OF THE REAL PROPERTY IS BOTH 36 CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW 37 AND A QUALIFIED EMPIRE ZONE ENTERPRISE. IN ADDITION, THE TERM "ELIGIBLE 38 REAL PROPERTY TAXES" INCLUDES PAYMENTS IN LIEU OF TAXES MADE BY THE CRDE 39 TO THE STATE, A MUNICIPAL CORPORATION OR A PUBLIC BENEFIT CORPORATION 40 PURSUANT TO A WRITTEN AGREEMENT ENTERED INTO BETWEEN THE CRDE AND THE 41 STATE, MUNICIPAL CORPORATION, OR PUBLIC BENEFIT CORPORATION. PROVIDED, 42 HOWEVER, A PAYMENT IN LIEU OF TAXES MADE BY THE CRDE PURSUANT TO A WRIT- 43 TEN AGREEMENT EXECUTED OR AMENDED ON OR AFTER JANUARY FIRST, TWO THOU- 44 SAND SIX, SHALL NOT CONSTITUTE ELIGIBLE REAL PROPERTY TAXES UNLESS SUCH 45 WRITTEN AGREEMENT IS APPROVED BY BOTH THE DEPARTMENT OF ECONOMIC DEVEL- 46 OPMENT AND THE OFFICE OF REAL PROPERTY SERVICES AS SATISFYING GENERALLY 47 ACCEPTED AND RECOGNIZED NORMS AND STANDARDS OF REAL PROPERTY TAX 48 APPRAISALS. 49 (J) THE CREDIT LIMITATION SHALL BE THE GREATER OF THE EMPLOYMENT 50 INCREASE LIMITATION. THE EMPLOYMENT INCREASE LIMITATION SHALL BE THE 51 PRODUCT OF (I) FIVE THOUSAND DOLLARS AND (II) THE EMPLOYMENT INCREASE 52 NUMBER. 53 (K) CREDIT RECAPTURE. WHERE A CRDE'S ELIGIBLE REAL PROPERTY TAXES 54 WHICH WERE THE BASIS FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER 55 THIS SECTION ARE SUBSEQUENTLY REDUCED AS A RESULT OF A FINAL ORDER IN 56 ANY PROCEEDING UNDER ARTICLE SEVEN OF THE REAL PROPERTY TAX LAW OR OTHER A. 5407 8 1 PROVISION OF LAW, THE TAXPAYER SHALL ADD BACK, IN THE TAXABLE YEAR IN 2 WHICH SUCH FINAL ORDER IS ISSUED, THE EXCESS OF (I) THE AMOUNT OF CREDIT 3 ORIGINALLY ALLOWED FOR A TAXABLE YEAR OVER (II) THE AMOUNT OF CREDIT 4 DETERMINED BASED UPON THE REDUCED ELIGIBLE REAL PROPERTY TAXES. IF SUCH 5 FINAL ORDER REDUCES REAL PROPERTY TAXES FOR MORE THAN ONE YEAR, THE 6 TAXPAYER MUST DETERMINE HOW MUCH OF SUCH REDUCTION IS ATTRIBUTABLE TO 7 EACH YEAR COVERED BY SUCH FINAL ORDER AND CALCULATE THE AMOUNT OF CREDIT 8 WHICH IS REQUIRED BY THIS SUBDIVISION TO BE RECAPTURED FOR EACH YEAR 9 BASED ON SUCH REDUCTION. 10 (L) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN 11 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 12 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 44, 13 (2) ARTICLE 22: SECTION 606: SUBSECTION (TT). 14 S 25-E. RESEARCH PRODUCTION FACILITY PROGRAM. (A) QUALIFIED RESEARCH 15 PRODUCTION FACILITY (QRPF). A BUSINESS ENTERPRISE WHICH HAS BEEN DESIG- 16 NATED AS A CERTIFIED RESEARCH PRODUCTION FACILITY PURSUANT TO SECTION 17 NINE HUNDRED SEVENTY OF THE GENERAL MUNICIPAL LAW, AS DEFINED BY SECTION 18 TWENTY-FIVE-A OF THIS ARTICLE, SHALL BE A QUALIFIED RESEARCH PRODUCTION 19 FACILITY FOR THE TAXABLE YEARS AND THE FOURTEEN TAXABLE YEARS NEXT 20 FOLLOWING THE TAXABLE YEAR IN WHICH SUCH DESIGNATION WAS MADE. THE SITE 21 OF THE QUALIFIED RESEARCH PRODUCTION FACILITY SHALL BE A QUALIFIED 22 RESEARCH PRODUCTION SITE. 23 (B) TAX BENEFITS. A QUALIFIED RESEARCH PRODUCTION FACILITY SHALL BE 24 ELIGIBLE FOR ALL TAX BENEFITS AVAILABLE UNDER THIS CHAPTER IN REGARD TO 25 AN EMPIRE ZONE, INCLUDING, BUT NOT LIMITED TO, ALL TAX BENEFITS FOR 26 WHICH A QUALIFIED EMPIRE ZONE ENTERPRISE IS ELIGIBLE, EXCEPT EMPIRE ZONE 27 CAPITAL TAX CREDITS PROVIDED PURSUANT TO SUBDIVISION TWENTY OF SECTION 28 TWO HUNDRED TEN, SUBSECTION (D) OF SECTION FOURTEEN HUNDRED FIFTY-SIX, 29 OR SUBSECTION (1) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. 30 (C) APPLICATION. FOR PURPOSES OF APPLYING THIS SECTION, WHEREVER THE 31 TERMS "EMPIRE ZONE" AND "QUALIFIED EMPIRE ZONE ENTERPRISE" APPEAR IN 32 THIS CHAPTER, SUCH TERMS SHALL BE READ AS "QUALIFIED PRODUCTION FACILI- 33 TY" AND AS "QUALIFIED RESEARCH PRODUCTION FACILITY" RESPECTIVELY AND 34 SUCH OTHER MODIFICATIONS MAY BE MADE BY THE COMMISSIONER AS ARE NECES- 35 SARY TO ADAPT PROVISIONS RELATING TO EMPIRE ZONES AND QUALIFIED EMPIRE 36 ZONE ENTERPRISES TO QUALIFIED RESEARCH PRODUCTION FACILITIES. FURTHER, 37 THE EMPLOYMENT TEST SET FORTH IN SUBDIVISION (B) OF SECTION FOURTEEN OF 38 THIS ARTICLE SHALL BE DISREGARDED AND THE EMPLOYMENT INCREASE FACTORS 39 SET FORTH IN SUBDIVISION (D) OF SECTION SIXTEEN OF THIS ARTICLE SHALL BE 40 REPLACED BY THE EMPLOYMENT FACTOR SET FORTH IN SUBDIVISION (D) OF THIS 41 SECTION. 42 (D) QRPF EMPLOYMENT FACTOR. THE EMPLOYMENT INCREASE FACTORS ARE SET 43 FORTH IN THE FOLLOWING TABLE: 44 NUMBER OF FULL-TIME EMPLOYEES AT THE EMPLOYMENT INCREASE FAC 45 QUALIFIED RESEARCH PRODUCTION FACILITY: 46 AT LEAST 150 1.0 47 AT LEAST 100 BUT LESS THAN 150: .8 48 AT LEAST 75 BUT LESS THAN 100: .6 49 AT LEAST 50 BUT LESS THAN 75: .4 50 AT LEAST 25 BUT LESS THAN 50: .2 51 LESS THAN 25: 0 52 (E) QEZE OPTION. IF THE QUALIFIED PRODUCTION FACILITY IS LOCATED IN 53 WHOLE OR IN PART IN AN AREA DESIGNATED AS AN EMPIRE ZONE PURSUANT TO 54 ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW AND THE TAXPAYER MEETS 55 THE QUALIFICATION TO BE BOTH A QUALIFIED EMPIRE ZONE ENTERPRISE AND A 56 QUALIFIED RESEARCH PRODUCTION FACILITY, THE TAXPAYER SHALL BE REQUIRED A. 5407 9 1 IN THE FIRST TAXABLE YEAR IN WHICH BENEFITS UNDER EITHER STATUS ARE 2 AVAILABLE TO MAKE AN IRREVOCABLE ELECTION TO BE EITHER A QUALIFIED 3 EMPIRE ZONE ENTERPRISE OR TO BE A QUALIFIED RESEARCH PRODUCTION FACILI- 4 TY. SUCH ELECTION SHALL BE MADE WITH THE FILING OF THE RETURN OR REPORT 5 REQUIRED OF THE TAXPAYER UNDER THIS CHAPTER. 6 S 6. Section 210 of the tax law is amended by adding four new subdivi- 7 sions 41, 42, 43 and 44 to read as follows: 8 41. RESEARCH AND DEVELOPMENT WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A 9 TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 10 SECTION TWENTY-FIVE-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 11 ARTICLE. 12 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 13 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 14 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF 15 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT 16 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO 17 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE 18 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR 19 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT- 20 Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION 21 (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, 22 NO INTEREST SHALL BE PAID THEREON. 23 42. RESEARCH AND DEVELOPMENT EXPENSE CREDIT. (A) ALLOWANCE OF CREDIT. 24 A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 25 SECTION TWENTY-FIVE-B OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 26 ARTICLE. 27 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 28 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 29 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF 30 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT OR 31 CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED UNDER THIS SUBDIVISION FOR 32 ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF THE CRED- 33 IT OR CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTED IN SUCH TAXABLE YEARS 34 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED 35 FROM TAX FOR SUCH YEAR OR YEARS. 36 43. RESEARCH AND DEVELOPMENT GRANT CREDIT. (A) ALLOWANCE OF CREDIT. A 37 TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 38 SECTION TWENTY-FIVE-C OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 39 ARTICLE. 40 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 41 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 42 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF 43 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT 44 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO 45 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE 46 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR 47 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT- 48 Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION 49 (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, 50 NO INTEREST SHALL BE PAID THEREON. 51 44. CRDE CREDIT FOR REAL PROPERTY TAXES. (A) ALLOWANCE OF CREDIT. A 52 TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 53 SECTION TWENTY-FIVE-D OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 54 ARTICLE. 55 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 56 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS A. 5407 10 1 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF 2 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT 3 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO 4 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE 5 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR 6 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT- 7 Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION 8 (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, 9 NO INTEREST SHALL BE PAID THEREON. 10 S 7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 11 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of 12 the laws of 2008, is amended to read as follows: 13 (B) shall be treated as the owner of a new business with respect to 14 such share if the corporation qualifies as a new business pursuant to 15 paragraph (j) of subdivision twelve of section two hundred ten of this 16 chapter. 17 The corporation's credit base under 18 section two hundred ten or section 19 With respect to the following fourteen hundred fifty-six of this 20 credit under this section: chapter is: 21 (I) Investment tax credit under Investment credit base or qualified 22 subsection (a) rehabilitation expenditures under 23 subdivision twelve of section two 24 hundred ten 25 (II) Empire zone investment Cost or other basis under 26 tax credit under subsection (j) subdivision twelve-B of section 27 two hundred ten 28 (III) Empire zone wage tax credit Eligible wages under subdivision 29 under subsection (k) nineteen of section two hundred 30 ten or subsection (e) of section 31 fourteen hundred fifty-six 32 (IV) Empire zone capital tax Qualified investments and 33 credit under subsection (l) contributions under subdivision 34 twenty of section two hundred ten 35 or subsection (d) of section 36 fourteen hundred fifty-six 37 (V) Agricultural property tax Allowable school district property 38 credit under subsection (n) taxes under subdivision twenty-two 39 of section two hundred ten 40 (VI) Credit for employment of Qualified first-year wages or 41 persons with disabilities qualified second-year wages under 42 under subsection (o) subdivision twenty-three of 43 section two hundred ten or 44 subsection (f) of section 45 fourteen hundred fifty-six 46 (VII) Employment incentive credit Applicable investment credit base 47 under subsection (a-1) under subdivision twelve-D of 48 section two hundred ten A. 5407 11 1 (VIII) Empire zone employment Applicable investment credit 2 incentive credit under subsection under subdivision twelve-C of 3 (j-1) section two hundred ten 4 (IX) Alternative fuels credit Cost under subdivision twenty-four 5 under subsection (p) of section two hundred ten 6 (X) Qualified emerging technology Applicable credit base under 7 company employment credit under subdivision twelve-E of section 8 subsection (q) two hundred ten 9 (XI) Qualified emerging technology Qualified investments under 10 company capital tax credit under subdivision twelve-F of section 11 subsection (r) two hundred ten 12 (XII) Credit for purchase of an Cost of an automated external 13 automated external defibrillator defibrillator under subdivision 14 under subsection (s) twenty-five of section two hundred 15 ten or subsection (j) of section 16 fourteen hundred fifty-six 17 (XIII) Low-income housing credit Credit amount under subdivision 18 under subsection (x) thirty of section two hundred ten 19 or subsection (l) of section 20 fourteen hundred fifty-six 21 (XIV) Credit for transportation Amount of credit under subdivision 22 improvement contributions under thirty-two of section two hundred 23 subsection (z) ten or subsection (n) of section 24 fourteen hundred fifty-six 25 (XV) QEZE credit for real property Amount of credit under subdivision 26 taxes under subsection (bb) twenty-seven of section two hundred 27 ten or subsection (o) of section 28 fourteen hundred fifty-six 29 (XVI) QEZE tax reduction credit Amount of benefit period factor, 30 under subsection (cc) employment increase factor and zone 31 allocation factor (without regard 32 to pro ration) under subdivision 33 twenty-eight of section two hundred 34 ten or subsection (p) of section 35 fourteen hundred fifty-six and 36 amount of tax factor as determined 37 under subdivision (f) of section 38 sixteen 39 (XVII) Green building credit under Amount of green building credit 40 subsection (y) under subdivision thirty-one of 41 section two hundred ten or 42 subsection (m) of section fourteen 43 hundred fifty-six 44 (XVIII) Credit for long-term care Qualified costs under subdivision 45 insurance premiums under subsection twenty-five-a of section two 46 (aa) hundred ten or subsection (k) of A. 5407 12 1 section fourteen hundred fifty-six 2 (XIX) Brownfield redevelopment Amount of credit under subdivision 3 credit under subsection (dd) thirty-three of section two hundred 4 ten or subsection (q) of section 5 fourteen hundred fifty-six 6 (XX) Remediated brownfield credit Amount of credit under subdivision 7 for real property taxes for thirty-four of section two hundred 8 qualified sites under subsection ten or subsection (r) of section 9 (ee) fourteen hundred fifty-six 10 (XXI) Environmental remediation Amount of credit under subdivision 11 insurance credit under subsection thirty-five of section two hundred 12 (ff) ten or subsection (s) of section 13 fourteen hundred fifty-six 14 (XXII) Empire state film production Amount of credit for qualified 15 credit under subsection (gg) production costs in production of a 16 qualified film under subdivision 17 thirty-six of section two hundred 18 ten 19 (XXIII) Qualified emerging Qualifying expenditures and 20 technology company facilities, development activities under 21 operations and training credit subdivision twelve-G of section two 22 under subsection (nn) hundred ten 23 (XXIV) Security training tax credit Amount of credit under subdivision 24 under subsection (ii) thirty-seven of section two hundred 25 ten or under subsection (t) of 26 section fourteen hundred fifty-six 27 (XXV) Credit for qualified fuel Amount of credit under subdivision 28 cell electric generating equipment thirty-seven of section two hundred 29 expenditures under subsection (g-2) ten or subsection (t) of section 30 fourteen hundred fifty-six 31 (XXVI) Empire state commercial Amount of credit for qualified 32 production credit under subsection production costs in production of 33 (jj) a qualified commercial under 34 subdivision thirty-eight of 35 section two hundred ten 36 (XXVII) Biofuel production tax Amount of credit under subdivision 37 credit under subsection (jj) thirty-eight of section two hundred 38 ten 39 (XXVIII) Clean heating fuel credit Amount of credit under subdivision 40 under subsection (mm) thirty-nine of section two hundred 41 ten 42 (XXIX) Credit for rehabilitation Amount of credit under subdivision 43 of historic properties under forty of [subsection] SECTION 44 subsection (oo) two hundred ten A. 5407 13 1 (XXX) Credit for companies who Amount of credit under subdivision 2 provide transportation to forty of section two hundred ten 3 individuals with disabilities under 4 subsection (oo) 5 (XXXI) RESEARCH AND AMOUNT OF CREDIT UNDER 6 DEVELOPMENT WAGE SUBDIVISION FORTY-ONE 7 CREDIT UNDER SUBSECTION OF SECTION TWO HUNDRED 8 (QQ) TEN 9 (XXXII) RESEARCH AND AMOUNT OF CREDIT UNDER 10 DEVELOPMENT EXPENSE SUBDIVISION FORTY-TWO 11 CREDIT UNDER SUBSECTION OF SECTION TWO HUNDRED 12 (RR) TEN 13 (XXXIII) RESEARCH AND AMOUNT OF CREDIT UNDER 14 DEVELOPMENT GRANT SUBDIVISION FORTY-THREE 15 CREDIT UNDER SUBSECTION OF SECTION TWO HUNDRED 16 (SS) TEN 17 (XXXIV) CRDE CREDIT FOR REAL AMOUNT OF CREDIT UNDER 18 PROPERTY TAXES UNDER SUBDIVISION FORTY-FOUR 19 SUBSECTION (TT) OF SECTION TWO HUNDRED 20 TEN 21 S 8. Section 606 of the tax law is amended by adding four new 22 subsections (qq), (rr), (ss) and (tt) to read as follows: 23 (QQ) RESEARCH AND DEVELOPMENT WAGE CREDIT. (1) ALLOWANCE OF CREDIT. A 24 TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 25 SECTION TWENTY-FIVE-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 26 ARTICLE. 27 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 28 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 29 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 30 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 31 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 32 SHALL BE PAID THEREON. 33 (RR) RESEARCH AND DEVELOPMENT EXPENSE CREDIT. (1) ALLOWANCE OF CREDIT. 34 A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 35 SECTION TWENTY-FIVE-B OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 36 ARTICLE. 37 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT AND CARRYOVERS 38 OF SUCH CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL 39 EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART 40 OF THE CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, MAY BE CARRIED OVER 41 TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S 42 TAX FOR SUCH YEAR OR YEARS. 43 (SS) RESEARCH AND DEVELOPMENT GRANT CREDIT. (1) ALLOWANCE OF CREDIT. 44 A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 45 SECTION TWENTY-FIVE-C OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 46 ARTICLE. 47 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 48 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 49 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 50 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 51 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 52 SHALL BE PAID THEREON. A. 5407 14 1 (TT) CRDE CREDIT FOR REAL PROPERTY TAXES. (1) ALLOWANCE OF CREDIT. A 2 TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN 3 SECTION TWENTY-FIVE-D OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 4 ARTICLE. 5 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 6 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 7 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 8 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 9 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 10 SHALL BE PAID THEREON. 11 S 9. Paragraph (a) of subdivision 12 of section 210 of the tax law, as 12 amended by chapter 817 of the laws of 1987, is amended to read as 13 follows: 14 (a) A taxpayer shall be allowed a credit, to be computed as hereinaft- 15 er provided, against the tax imposed by this article. The amount of the 16 credit shall be the per cent provided for hereinbelow of the investment 17 credit base. The investment credit base is the cost or other basis for 18 federal income tax purposes of tangible personal property and other 19 tangible property, including buildings and structural components of 20 buildings, described in paragraph (b) of this subdivision, less the 21 amount of the nonqualified nonrecourse financing with respect to such 22 property to the extent such financing would be excludible from the cred- 23 it base pursuant to section 46(c)(8) of the internal revenue code 24 (treating such property as section thirty-eight property irrespective of 25 whether or not it in fact constitutes section thirty-eight property). 26 If, at the close of a taxable year following the taxable year in which 27 such property was placed in service, there is a net decrease in the 28 amount of nonqualified nonrecourse financing with respect to such prop- 29 erty, such net decrease shall be treated as if it were the cost or other 30 basis of property described in paragraph (b) of this subdivision 31 acquired, constructed, reconstructed or erected during the year of the 32 decrease in the amount of nonqualified nonrecourse financing. In the 33 case of a combined report the term investment credit base shall mean the 34 sum of the investment credit base of each corporation included on such 35 report. The percentage to be used to compute the credit allowed pursuant 36 to this subdivision shall be that percentage appearing in column two 37 which is opposite the appropriate period in column one in which the 38 tangible personal property was acquired, constructed, reconstructed or 39 erected, as the case may be: 40 Column 1 Column 2 41 After December 31, 1968 and 42 prior to January 1, 1974 one per cent 43 After December 31, 1973 and 44 prior to January 1, 1978 two per cent 45 After December 31, 1977 and 46 prior to January 1, 1979 three per cent 47 After December 31, 1978 and 48 prior to June 1, 1981 four per cent 49 After May 31, 1981 and 50 prior to July 1, 1982 five per cent 51 After June 30, 1982 and 52 prior to January 1, 1987 six per cent 53 For taxable years five per cent with respect 54 beginning in 1987, to the first five hundred 55 1988 and 1989 million dollars of the A. 5407 15 1 investment credit base, and 2 four percent with respect to 3 the investment credit base in 4 excess of five hundred million 5 dollars, except that in the case 6 of research and development 7 property at the option of the 8 taxpayer the applicable per- 9 centage shall be nine 10 For taxable years beginning 11 in 1990 five percent with respect to the 12 first four hundred twenty-five 13 million dollars of the investment 14 credit base, and four percent 15 with respect to the investment 16 credit base in excess of four 17 hundred twenty-five million 18 dollars, except that in the 19 case of research and 20 development property at the 21 option of the taxpayer the 22 applicable percentage shall 23 be nine 24 For taxable years beginning 25 after 1990 BUT BEFORE 2010 five percent with respect to 26 the first three hundred fifty 27 million dollars of the invest- 28 ment credit base, and four percent 29 with respect to the investment 30 credit base in excess of three 31 hundred fifty million dollars, 32 except that in the case of 33 research and development 34 property at the option of the 35 taxpayer the applicable 36 percentage shall be nine 37 FOR TAXABLE YEARS BEGINNING FIVE PERCENT WITH RESPECT TO THE 38 AFTER 2009 FIRST THREE HUNDRED FIFTY MILLION 39 DOLLARS OF THE INVESTMENT CREDIT 40 BASE, AND FOUR PERCENT WITH RESPECT 41 TO THE INVESTMENT CREDIT BASE IN 42 EXCESS OF THREE HUNDRED FIFTY 43 MILLION DOLLARS, EXCEPT THAT IN THE 44 CASE OF RESEARCH AND DEVELOPMENT 45 PROPERTY AT THE OPTION OF THE 46 TAXPAYER THE APPLICABLE PERCENTAGE 47 SHALL BE NINE, AND THAT IN THE CASE 48 OF RESEARCH AND DEVELOPMENT PROPERT 49 LOCATED WITHIN A RESEARCH AND 50 DEVELOPMENT ZONE AT THE OPTION 51 OF THE TAXPAYER THE APPLICABLE 52 PERCENTAGE SHALL BE EIGHTEEN 53 Provided, however, that in the case of an acquisition, construction, 54 reconstruction or erection which was commenced in any one period and 55 continued or completed in any subsequent period the credit shall be the 56 sum of the portions of the investment credit base attributable to each A. 5407 16 1 such period, which portion with respect to each such period shall be 2 ascertained by multiplying such investment credit base by a fraction the 3 numerator of which shall be the expenditures paid or incurred during 4 such period for such purposes and the denominator of which shall be the 5 total of all expenditures paid or incurred for such acquisition, 6 construction, reconstruction or erection, multiplied by the allowable 7 percentage for each such period. 8 S 10. Paragraph 1 of subsection (a) of section 606 of the tax law, as 9 amended by chapter 170 of the laws of 1994, is amended to read as 10 follows: 11 (1) A taxpayer shall be allowed a credit, to be computed as hereinaft- 12 er provided, against the tax imposed by this article. The amount of the 13 credit shall be the per cent provided for hereinbelow of the investment 14 credit base. The investment credit base is the cost or other basis, for 15 federal income tax purposes, of tangible personal property and other 16 tangible property, including buildings and structural components of 17 buildings, described in paragraph two of this subsection, less the 18 amount of the nonqualified nonrecourse financing with respect to such 19 property to the extent such financing would be excludible from the cred- 20 it base pursuant to section 46(c)(8) of the internal revenue code 21 (treating such property as section thirty-eight property irrespective of 22 whether or not it in fact constitutes section thirty-eight property). 23 If, at the close of a taxable year following the taxable year in which 24 such property was placed in service, there is a net decrease in the 25 amount of nonqualified nonrecourse financing with respect to such prop- 26 erty, such net decrease shall be treated as if it were the cost or other 27 basis of property described in paragraph two of this subsection 28 acquired, constructed, reconstructed or erected during the year of the 29 decrease in the amount of nonqualified nonrecourse financing. The 30 percentage to be used to compute the credit allowed pursuant to this 31 subsection shall be that percentage appearing in column two which is 32 opposite the appropriate period in column one in which the tangible 33 personal property was acquired, constructed, reconstructed or erected, 34 as the case may be: 35 Column 1 Column 2 36 After December 31, 1968 and 37 prior to January 1, 1974 one per cent 38 After December 31, 1973 and 39 prior to January 1, 1978 two per cent 40 After December 31, 1977 and 41 prior to January 1, 1979 three per cent 42 After December 31, 1978 and 43 prior to June 1, 1981 four per cent 44 After May 31, 1981 and 45 prior to July 1, 1982 five per cent 46 After June 30, 1982 and 47 before January 1, 1987 six per cent 48 After December 31, 1986 four per cent, except that in the 49 AND BEFORE JANUARY case of research and 50 1, 2010 development property the applicabl 51 percentage shall be seven 52 AFTER DECEMBER 31, 2010 FOUR PER CENT, EXCEPT THAT IN THE 53 CASE OF RESEARCH AND 54 DEVELOPMENT PROPERTY THE APPLICABL A. 5407 17 1 PERCENTAGE SHALL BE SEVEN, AND THA 2 IN THE CASE OF RESEARCH AND 3 DEVELOPMENT PROPERTY LOCATED WITHI 4 A RESEARCH AND DEVELOPMENT ZONE TH 5 APPLICABLE PERCENTAGE SHALL BE FOU 6 Provided, however, that in the case of an acquisition, construction, 7 reconstruction or erection which was commenced in any one period and 8 continued or completed in any subsequent period the credit shall be the 9 sum of the portions of the investment credit base attributable to each 10 such period, which portion with respect to each such period shall be 11 ascertained by multiplying such investment credit base by a fraction the 12 numerator of which shall be the expenditures paid or incurred during 13 such period for such purposes and the denominator of which shall be the 14 total of all expenditures paid or incurred for such acquisition, 15 construction, reconstruction or erection, multiplied by the allowable 16 percentage for each such period. 17 S 11. Paragraph (a) of subdivision 9 of section 208 of the tax law is 18 amended by adding two new subparagraphs 18 and 19 to read as follows: 19 (18) IN THE CASE OF A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 20 WHICH HAS BEEN DESIGNATED UNDER SECTION NINE HUNDRED SEVENTY OF THE 21 GENERAL MUNICIPAL LAW, AN AMOUNT EQUAL TO FIFTY PERCENT OF ANY PAYMENTS 22 RECEIVED TO CONDUCT RESEARCH AND DEVELOPMENT ACTIVITIES WHICH ARE 23 CONDUCTED WITHIN A RESEARCH AND DEVELOPMENT ZONE, LESS ANY DEDUCTIBLE 24 EXPENSES INCURRED TO CONDUCT THE RESEARCH AND DEVELOPMENT ACTIVITY. 25 (19) IN THE CASE OF A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 26 WHICH HAS BEEN DESIGNATED UNDER SECTION NINE HUNDRED SEVENTY OF THE 27 GENERAL MUNICIPAL LAW, AN AMOUNT EQUAL TO TWENTY PERCENT OF ANY ROYALTY 28 PAYMENTS RECEIVED ON PATENTS DERIVED FROM RESEARCH AND DEVELOPMENT 29 ACTIVITIES CONDUCTED WITHIN A RESEARCH AND DEVELOPMENT ZONE. 30 S 12. Subsection (c) of section 612 of the tax law is amended by 31 adding two new paragraphs 39 and 40 to read as follows: 32 (39) IN THE CASE OF A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 33 WHICH HAS BEEN DESIGNATED UNDER SECTION NINE HUNDRED SEVENTY OF THE 34 GENERAL MUNICIPAL LAW, AN AMOUNT EQUAL TO FIFTY PERCENT OF ANY PAYMENTS 35 RECEIVED TO CONDUCT RESEARCH AND DEVELOPMENT ACTIVITIES WHICH ARE 36 CONDUCTED WITHIN A RESEARCH AND DEVELOPMENT ZONE, LESS ANY DEDUCTIBLE 37 EXPENSES INCURRED TO CONDUCT THE RESEARCH AND DEVELOPMENT ACTIVITY. 38 (40) IN THE CASE OF A CERTIFIED RESEARCH AND DEVELOPMENT ENTERPRISE 39 WHICH HAS BEEN DESIGNATED UNDER SECTION NINE HUNDRED SEVENTY OF THE 40 GENERAL MUNICIPAL LAW, AN AMOUNT EQUAL TO TWENTY PERCENT OF ANY ROYALTY 41 PAYMENTS RECEIVED ON PATENTS DERIVED FROM RESEARCH AND DEVELOPMENT 42 ACTIVITIES CONDUCTED WITHIN A RESEARCH AND DEVELOPMENT ZONE. 43 S 13. This act shall take effect immediately and shall apply to taxa- 44 ble years beginning on and after January 1, 2010; provided, however that 45 the empire state film production credit under subsection (gg), the 46 empire state commercial production credit under subsection (jj) and the 47 credit for companies who provide transportation to individuals with 48 disabilities under subsection (oo) of section 606 of the tax law 49 contained in section seven of this act shall expire on the same date as 50 provided in section 9 of part P of chapter 60 of the laws of 2004, as 51 amended, section 10 of part V of chapter 62 of the laws of 2006, as 52 amended, and section 5 of chapter 522 of the laws of 2006, as amended, 53 respectively.