Bill Text: NY A05457 | 2021-2022 | General Assembly | Introduced


Bill Title: Defines community significant projects as a business creating or retaining current jobs as determined by the commissioner, with particular emphasis on employment and/or training of current public housing residents, currently located or to be located in existing leased space of a building in a public housing development in the state and which makes significant qualified capital investments to start a business, or improve services and working conditions for an existing business, when located in such public housing space and including such projects in the excelsior jobs program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A05457 Detail]

Download: New_York-2021-A05457-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5457

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 16, 2021
                                       ___________

        Introduced by M. of A. JOYNER -- read once and referred to the Committee
          on Economic Development

        AN  ACT  to  amend the economic development law, in relation to defining
          community significant projects and  including  such  projects  in  the
          excelsior jobs program

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

     1    Section 1. Subdivisions 17 and 20-a of section  352  of  the  economic
     2  development  law,  subdivision  17 as amended by section 1 of part K and
     3  subdivision 20-a as added by section 1 of part ZZ of chapter  59 of  the
     4  laws of 2017, are amended and a new subdivision 18-a is added to read as
     5  follows:
     6    17.  "Qualified  investment"  means an investment in tangible property
     7  (including a building or a structural component of a building) owned  by
     8  a business enterprise which:
     9    (a)  is depreciable pursuant to section one hundred sixty-seven of the
    10  internal revenue code;
    11    (b) has a useful life of four years or more;
    12    (c) is acquired by purchase as defined in section one  hundred  seven-
    13  ty-nine (d) of the internal revenue code;
    14    (d) has a situs in this state; [and]
    15    (e) is placed in service in the state on or after the date the certif-
    16  icate of eligibility is issued to the business enterprise; and
    17    (f)  demolition  and  remediation  of  costs  incurred and paid in the
    18  leased building by the business enterprise in a public housing  develop-
    19  ment in the state, as determined by the commissioner.
    20    18-a. "Community significant project" means (a) a business creating or
    21  retaining  current  jobs as determined by the commissioner, with partic-
    22  ular emphasis on employment and/or training of  current  public  housing
    23  residents;  (b)  currently  located  or to be located in existing leased
    24  space of a building in a public housing development in the state that is

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03724-01-1

        A. 5457                             2

     1  owned and operated by a public housing authority created  under  article
     2  thirteen  of  the public housing law; (c) which makes significant quali-
     3  fied capital investments to start a business, or  improve  services  and
     4  working conditions for an existing business, when located in such public
     5  housing  space;  and (d) creates at least five new net jobs or retaining
     6  current jobs or makes qualified capital investments to such space  of  a
     7  building.    The  commissioner  shall promulgate regulations pursuant to
     8  section three hundred fifty-six of this article to determine what  addi-
     9  tional  criteria  a  business  must  meet  to be eligible as a community
    10  significant project, including, but not limited to, incentivizing  child
    11  care  providers and other businesses that support the needs of the work-
    12  force residing in such public housing and the social and health needs of
    13  residents in such  public  housing,  ensuring  that  residents  are  not
    14  displaced and ensuring that services or programs being offered to public
    15  housing  residents  by  either  a  public housing authority or an entity
    16  already onsite, are not displaced in order to locate or expand  a  busi-
    17  ness in a public housing development.
    18    20-a.  "Significant  capital investment" means a project which will be
    19  either a newly constructed facility or a newly constructed addition  to,
    20  expansion  of  or  improvement  of  a  facility,  consisting of tangible
    21  personal property and other tangible property, including  buildings  and
    22  structural  components  of  buildings,  that are depreciable pursuant to
    23  section one hundred sixty-seven of the internal  revenue  code,  have  a
    24  useful  life  of four years or more, are acquired by purchase as defined
    25  in section one hundred seventy-nine (d) of the  internal  revenue  code,
    26  and  that  is equal to or exceeds (a) one million dollars for a manufac-
    27  turer; (b) two hundred fifty thousand dollars for an  agriculture  busi-
    28  ness;  (c)  three  million dollars for a financial services firm or back
    29  office operation; (d) fifteen million dollars for a distribution center;
    30  (e) three million dollars for  a  scientific  research  and  development
    31  firm;  [or]  (f)  three million dollars for other businesses; or (g) one
    32  million dollars for a significant project.
    33    § 2. Subdivisions 1, 3 and 4 of section 353 of the  economic  develop-
    34  ment  law, subdivision 1 as amended by section 2 of part L of chapter 59
    35  of the laws of 2020, subdivision 3 as separately amended by section 2 of
    36  part K and section 2 of part ZZ and subdivision 4 as separately  amended
    37  by  section  3  of  part K and section 2 of part ZZ of chapter 59 of the
    38  laws of 2017, are amended to read as follows:
    39    1. To be a participant in the excelsior jobs program, a business enti-
    40  ty shall operate in New York state predominantly:
    41    (a) as a financial services data center or a financial  services  back
    42  office operation;
    43    (b) in manufacturing;
    44    (c) in software development and new media;
    45    (d) in scientific research and development;
    46    (e) in agriculture;
    47    (f)  in  the  creation  or  expansion of back office operations in the
    48  state;
    49    (g) in a distribution center;
    50    (h) in an  industry  with  significant  potential  for  private-sector
    51  economic  growth  and  development  in  this state as established by the
    52  commissioner in regulations promulgated pursuant  to  this  article.  In
    53  promulgating  such  regulations  the  commissioner shall include job and
    54  investment criteria;
    55    (i) as an entertainment company;
    56    (j) in music production;

        A. 5457                             3

     1    (k) as a life sciences company; [or]
     2    (l)  as  a  company operating in one of the industries listed in para-
     3  graphs (b) through (e) of this  subdivision  and  engaging  in  a  green
     4  project  as  defined in section three hundred fifty-two of this article;
     5  or
     6    (m) as a community significant project.
     7    3. For the purposes of this article, in order to  participate  in  the
     8  excelsior  jobs  program,  a  business entity operating predominantly in
     9  manufacturing must create at least five net new jobs; a business  entity
    10  operating predominately in agriculture must create at least five net new
    11  jobs;  a  business entity operating predominantly as a financial service
    12  data center or financial services customer back  office  operation  must
    13  create  at  least  twenty-five net new jobs; a business entity operating
    14  predominantly in scientific research  and  development  must  create  at
    15  least  five  net  new jobs; a business entity operating predominantly in
    16  software development must create at least five net new jobs; a  business
    17  entity creating or expanding back office operations must create at least
    18  twenty-five  net  new jobs; a business entity operating predominately in
    19  music production must create at least five  net  new  jobs;  a  business
    20  entity  operating  predominantly as an entertainment company must create
    21  or obtain at least one hundred net new  jobs;  [or]  a  business  entity
    22  operating  predominantly  as  a  distribution  center  in the state must
    23  create at least fifty net new jobs, notwithstanding subdivision five  of
    24  this  section;  [or] a business entity operating predominately as a life
    25  sciences company must create at least five net new jobs; [or] a business
    26  entity must be a regionally significant project as defined in this arti-
    27  cle; or a community significant project as defined in this article; or
    28    4. A business entity operating predominantly in one of the  industries
    29  referenced  in  paragraphs (a) through (h) or in paragraph (k) or (m) of
    30  subdivision one of this section but which does not meet the job require-
    31  ments of subdivision three of this section must have  at  least  twenty-
    32  five full-time job equivalents unless such business is a business entity
    33  operating predominantly in manufacturing then it must have at least five
    34  full-time  job  equivalents  and  must demonstrate that its benefit-cost
    35  ratio is at least ten to one.
    36    § 3. Paragraph (a) of subdivision 4 of section  355  of  the  economic
    37  development  law, as amended by section 4 of part G of chapter 61 of the
    38  laws of 2011, is amended to read as follows:
    39    (a) A participant in the excelsior jobs program who  either  qualified
    40  as  a regionally significant project, a community significant project or
    41  is located in an investment zone shall be eligible to claim a credit for
    42  a period of ten years.  For the purposes of this subdivision, the  lease
    43  payment  paid  by  the  business enterprise pursuant to a public housing
    44  development in this state  shall  be  eligible  real  property  tax  for
    45  purposes of this subdivision.
    46    § 4. This act shall take effect immediately and shall apply to taxable
    47  years beginning on and after January 1, 2022.
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