Bill Text: NY A06497 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes the manufacturing preservation and enhancement act and the office of the New York state homeshoring initiative.
Spectrum: Partisan Bill (Republican 13-0)
Status: (Introduced - Dead) 2012-05-01 - held for consideration in economic development [A06497 Detail]
Download: New_York-2011-A06497-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6497
2011-2012 Regular Sessions
I N A S S E M B L Y
March 21, 2011
___________
Introduced by M. of A. KOLB, OAKS, CALHOUN, SAYWARD, REILICH, FINCH,
P. LOPEZ, BARCLAY -- Multi-Sponsored by -- M. of A. BUTLER, CONTE,
DUPREY, MOLINARO -- read once and referred to the Committee on Econom-
ic Development
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.
LBD05327-01-1
A. 6497 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 NINETEEN.
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. 6497 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 EIGHT HUNDRED FIFTY-ONE OF THE TAX LAW;
8 2. AN MEI WAGE TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO SECTION
9 EIGHT HUNDRED FIFTY-TWO OF THE TAX LAW; AND
10 3. AN MEI ENERGY TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO
11 SECTION EIGHT HUNDRED FIFTY-THREE OF THE TAX LAW.
12 S 273. REPORTING. THE COMMISSIONER SHALL, ON OR BEFORE SEPTEMBER
13 FIRST, TWO THOUSAND THIRTEEN, AND ANNUALLY THEREAFTER, SUBMIT A REPORT
14 TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
15 THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER
16 OF 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 24 to read as
19 follows:
20 ARTICLE 24
21 MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
22 SECTION 851. MEI PROPERTY TAX CREDIT.
23 852. MEI WAGE TAX CREDIT.
24 853. MEI ENERGY TAX CREDIT.
25 S 851. 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 852. 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. 6497 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 853. 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. 6497 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 43, 44 and 45 to read as follows:
32 43. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
33 BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
34 FIFTY-ONE 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 44. 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 EIGHT HUNDRED FIFTY-TWO OF THIS CHAPTER, AGAINST
46 THE 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 45. 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. 6497 6
1 COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED FIFTY-THREE OF THIS CHAP-
2 TER, 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, is amended by adding three new clauses (xxxii), (xxxiii)
13 and (xxxiv) to read as follows:
14 (XXXII) MEI PROPERTY TAX CREDIT AMOUNT OF MEI PROPERTY TAX CREDIT
15 UNDER SUBSECTION (SS) UNDER SUBDIVISION FORTY-THREE OF
16 SECTION TWO HUNDRED TEN
17 (XXXIII) MEI WAGE TAX CREDIT UNDER AMOUNT OF MEI WAGE TAX CREDIT
18 SUBSECTION (TT) UNDER SUBDIVISION FORTY-FOUR OF
19 SECTION TWO HUNDRED TEN
20 (XXXIV) MEI ENERGY TAX CREDIT UNDER AMOUNT OF MEI ENERGY TAX CREDIT
21 SUBSECTION (UU) UNDER SUBDIVISION FORTY-FIVE OF
22 SECTION TWO HUNDRED TEN
23 S 5. Section 606 of the tax law is amended by adding three new
24 subsections (ss), (tt) and (uu) to read as follows:
25 (SS) MEI PROPERTY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
26 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT
27 HUNDRED FIFTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
28 CLE.
29 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
30 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
31 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
32 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
33 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
34 SHALL BE PAID THEREON.
35 (TT) MEI WAGE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
36 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
37 FIFTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
38 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
39 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
40 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
41 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
42 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
43 SHALL BE PAID THEREON.
44 (UU) MEI ENERGY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
45 BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
46 FIFTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS 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. 6497 7
1 S 6. This act shall take effect on the one hundred eightieth day after
2 it shall have become a law and shall apply to taxable years beginning on
3 or after January 1, 2013 and before January 1, 2020; provided, however,
4 that the addition, amendment and/or repeal of any rule or regulation
5 necessary for the implementation of this act on its effective date are
6 authorized and directed to be made on or before such date.
7 PART B
8 Section 1. The economic development law is amended by adding a new
9 article 18 to read as follows:
10 ARTICLE 18
11 OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE
12 SECTION 360. LEGISLATIVE FINDINGS.
13 361. OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE.
14 362. OBJECTIVES.
15 363. POWERS AND DUTIES.
16 S 360. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS THAT RECENT
17 ADVANCES IN TELECOMMUNICATIONS AND THE ADVENT OF THE INTERNET ARE REGU-
18 LARLY CREATING NEW AND PREVIOUSLY UNIMAGINED OPPORTUNITIES FOR THE
19 CREATION OF JOBS AND PROSPERITY. THE LEGISLATURE FURTHER FINDS THAT
20 THESE ADVANCES IN COMMUNICATIONS HAVE ALSO PRESENTED THE STATE AND ITS
21 CITIZENS WITH SIGNIFICANT CHALLENGES IN TERMS OF GLOBAL COMPETITION,
22 WHICH CHALLENGES MUST BE ADDRESSED DIRECTLY FOR OUR STATE TO MAINTAIN
23 ITS COMPETITIVE EDGE IN THE EVOLVING WORLD ECONOMY. THE LEGISLATURE
24 FURTHER FINDS THAT THE PROPER PROMOTION OF INTERNET JOB OPPORTUNITIES
25 COULD HELP IMPROVE THE OVERALL ECONOMIC CLIMATE WITHIN THE STATE BY
26 PROVIDING POTENTIAL EMPLOYMENT ANYWHERE WITHIN THE STATE, INCLUDING
27 BLIGHTED, ISOLATED, AND ECONOMICALLY DEPRESSED REGIONS. THE LEGISLATURE
28 FURTHER FINDS THAT SUCH POTENTIAL JOBS ARE PARTICULARLY SUITED TO BEING
29 FILLED BY BOTH NEW YORKERS WITH DISABILITIES AND BY THOSE NEW YORKERS
30 WHOSE FAMILY RESPONSIBILITIES PRECLUDE OR MAKE IMPRACTICAL WORKING
31 OUTSIDE OF THE HOME. THE LEGISLATURE FURTHER FINDS THAT NEW YORK IS HOME
32 TO A HIGHLY PRODUCTIVE AND WELL EDUCATED WORKFORCE, AND THAT THIS WORK-
33 FORCE COULD AND SHOULD BE MADE AVAILABLE FOR EMPLOYMENT AT HOME BY
34 COMPANIES LOCATED ACROSS THE WORLD IN ORDER TO PROMOTE THE PROSPERITY OF
35 THE STATE AND ITS CITIZENS.
36 S 361. OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE. THERE IS
37 HEREBY ESTABLISHED, UNDER THE DIRECTION OF THE COMMISSIONER, THE OFFICE
38 OF THE NEW YORK STATE HOMESHORING INITIATIVE. THE DIRECTOR OF SUCH
39 OFFICE SHALL BE APPOINTED BY THE GOVERNOR, SHALL REPORT DIRECTLY TO THE
40 COMMISSIONER ON THE ACTIVITIES OF THE OFFICE, AND SHALL HOLD OFFICE AT
41 THE PLEASURE OF THE COMMISSIONER. THE DIRECTOR OF THE OFFICE OF THE NEW
42 YORK STATE HOMESHORING INITIATIVE SHALL ALSO REGULARLY ADVISE AND REPORT
43 UPON ITS ACTIVITIES TO THE DEPARTMENT OF LABOR. IT SHALL BE THE DUTY OF
44 THE DIRECTOR OF THE OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE
45 TO ASSIST THE GOVERNOR IN THE FORMULATION AND IMPLEMENTATION OF LAWS AND
46 POLICIES RELATING TO THE PROMOTION, CREATION, AND INTEGRATION OF TELE-
47 COMMUTING JOB OPPORTUNITIES INTO THE ECONOMIC FABRIC OF THE STATE. THE
48 DIRECTOR SHALL RECEIVE AN ANNUAL SALARY TO BE FIXED BY THE GOVERNOR
49 WITHIN THE AMOUNT APPROPRIATED THEREFOR. THE DIRECTOR MAY APPOINT SUCH
50 OFFICERS, EMPLOYEES, AGENTS, CONSULTANTS AND SPECIAL COMMITTEES AS HE OR
51 SHE MAY DEEM NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE AND
52 PRESCRIBE THEIR DUTIES SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE
53 LAW AND THE RULES AND REGULATIONS OF THE CIVIL SERVICE COMMISSION.
A. 6497 8
1 S 362. OBJECTIVES. THE OFFICE OF THE NEW YORK STATE HOMESHORING INITI-
2 ATIVE IS DIRECTED TO PROMOTE "HOMESHORING", AN INITIATIVE THAT WILL
3 PROMOTE THE CREATION OF TELECOMMUTING JOB OPPORTUNITIES ON BEHALF OF NEW
4 YORK WORKERS. THIS ASSISTANCE SHOULD CONSIST OF PROMOTION, OUTREACH,
5 COORDINATION, INFORMATION, TECHNICAL ASSISTANCE, AND REFERRAL SERVICES
6 DESIGNATED TO ATTRACT EMPLOYERS WHO MIGHT OTHERWISE NOT CONSIDER AN
7 ACTUAL MOVE TO NEW YORK STATE TO HIRE NEW YORK CITIZENS FOR EMPLOYMENT
8 OPPORTUNITIES WITHIN THE STATE NOW MADE POSSIBLE THROUGH TELECOMMUTING,
9 AS WELL AS ENCOURAGING NEW YORK STATE EMPLOYERS TO PROVIDE JOB OPPORTU-
10 NITIES FOR TELECOMMUTING.
11 S 363. POWERS AND DUTIES. THE OFFICE OF THE NEW YORK STATE HOMESHORING
12 INITIATIVE SHALL:
13 1. COORDINATE ITS EFFORTS WITH ALL OTHER STATE AGENCIES, INCLUDING BUT
14 NOT LIMITED TO THE DEPARTMENT, THE DEPARTMENT OF LABOR, THE OFFICE OF
15 GENERAL SERVICES, THE STATE OFFICE FOR TECHNOLOGY, THE DEPARTMENT OF
16 EDUCATION, AND ALL OTHER AGENCIES AS MAY BE APPROPRIATE IN FORWARDING
17 THIS OBJECTIVE. THE OFFICE MAY ALSO WORK IN COOPERATION WITH ANY
18 NOT-FOR-PROFIT ORGANIZATIONS THAT THE OFFICE BELIEVES WILL HELP FURTHER
19 ITS GOALS AND OBJECTIVES;
20 2. CONDUCT MARKETING AND PROMOTIONAL ACTIVITIES WITH THE INTENTION OF
21 ENCOURAGING EMPLOYERS BOTH WITHIN AND OUTSIDE OF NEW YORK STATE TO
22 EMPLOY NEW YORK CITIZENS IN TELECOMMUTING JOBS;
23 3. SOLICIT RECOMMENDATIONS FROM LOCAL GOVERNMENTS, BUSINESSES, AND
24 NOT-FOR-PROFIT AGENCIES FOR PROMOTING THE OBJECTIVES OF THIS ARTICLE,
25 AND REFER SUCH RECOMMENDATIONS TO THE GOVERNOR, THE LEGISLATURE AND
26 APPROPRIATE STATE AGENCIES OR AUTHORITIES;
27 4. CONDUCT INVESTIGATIONS, RESEARCH, STUDIES AND ANALYSES OF MATTERS
28 CONSISTENT WITH THE GOALS AND OBJECTIVES OF THIS ARTICLE;
29 5. COORDINATE WITH THE OFFICE OF GENERAL SERVICES TO DEVELOP A PROGRAM
30 WHERE SUCH SURPLUS STATE EQUIPMENT AS MAY BE APPROPRIATE AND USEFUL WILL
31 BE MADE AVAILABLE FOR SALE TO QUALIFIED BUSINESSES THAT HAVE BEEN IDEN-
32 TIFIED AS CREATING TELECOMMUTING JOBS IN NEW YORK STATE, AND SHALL
33 DEVELOP SUCH RULES AND REGULATIONS AS ARE NEEDED TO IMPLEMENT SUCH A
34 PROGRAM INCLUDING THE CRITERIA FOR PARTICIPATION IN SUCH PROGRAM; AND
35 6. COORDINATE WITH THE OFFICE OF GENERAL SERVICES TO DEVELOP A PROGRAM
36 WHERE QUALIFYING BUSINESSES THAT HAVE BEEN IDENTIFIED AS CREATING TELE-
37 COMMUTING JOBS MAY BE MADE ELIGIBLE TO MAKE PURCHASES OF MATERIALS,
38 EQUIPMENT, OR SUPPLIES FROM CENTRALIZED CONTRACTS FOR COMMODITIES IN
39 ACCORDANCE WITH CONDITIONS SET BY THE OFFICE AND THE OFFICE OF GENERAL
40 SERVICES; PROVIDED THAT THE QUALIFIED BUSINESS SHALL ACCEPT SOLE RESPON-
41 SIBILITY FOR ANY PAYMENT DUE THE VENDOR. THE OFFICE SHALL DEVELOP SUCH
42 RULES AND REGULATIONS AS ARE NEEDED TO IMPLEMENT SUCH A PROGRAM AND TO
43 DETERMINE THE ELIGIBILITY FOR PARTICIPATION IN SUCH PROGRAM.
44 S 2. Section 210 of the tax law is amended by adding a new subdivision
45 46 to read as follows:
46 46. TELECOMMUTING JOB CREATION WAGE TAX CREDIT. (A) A TAXPAYER SHALL
47 BE ALLOWED A CREDIT TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
48 TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF SUCH CREDIT SHALL BE AS
49 PRESCRIBED BY PARAGRAPH (D) OF THIS SUBDIVISION.
50 (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
51 HAVE THE FOLLOWING MEANINGS:
52 (I) "TELECOMMUTING JOB CREATION WAGES" MEANS WAGES PAID BY THE TAXPAY-
53 ER FOR EMPLOYMENT, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT IS IN A
54 TELECOMMUTING JOB AND PERFORMED BY TELECOMMUTING EMPLOYEES.
55 (II) "TELECOMMUTING JOB" MEANS A POSITION THAT DID NOT EXIST IN THE
56 TAXPAYER'S BUSINESS IN NEW YORK STATE DURING THE THREE TAXABLE YEARS
A. 6497 9
1 PRIOR TO HIRING THE TELECOMMUTING EMPLOYEES FOR WHOM THE CREDIT IS
2 CLAIMED AND WHICH PROVIDES NOT LESS THAN TWENTY HOURS PER WEEK OF
3 EMPLOYMENT.
4 (III) "TELECOMMUTING EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVED
5 TELECOMMUTING JOB CREATION WAGES AND WHO WAS NOT EMPLOYED BY THE TAXPAY-
6 ER IN THE THREE PRIOR TAXABLE YEARS, AND WHO PERFORMS HIS OR HER JOB
7 DUTY FROM HIS OR HER RESIDENCE.
8 (IV) "TAXPAYER" MEANS A NEW YORK TAXPAYER AS DEFINED IN PARAGRAPH (F)
9 OF SUBDIVISION ONE OF THIS SECTION.
10 (C) THE CREDIT MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE
11 TELECOMMUTING EMPLOYEE IS EMPLOYED BY THE TAXPAYER, PROVIDED, HOWEVER,
12 WHERE A TELECOMMUTING EMPLOYEE IS HIRED IN THE LAST QUARTER OF A TAXABLE
13 YEAR AND IS EMPLOYED BY THE TAXPAYER FOR THE ENTIRE FOLLOWING TAXABLE
14 YEAR, THE TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR THE TAXABLE YEAR
15 OF THE HIRING AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH
16 REFLECTS WAGES PAID IN SUCH YEAR.
17 (D) THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE PERSONAL
18 INCOME TAX GENERATED BY THE TELECOMMUTING EMPLOYEE BY THE TAXPAYER,
19 PROVIDED, HOWEVER, THAT THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION
20 WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT TO THE
21 TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY NOT, IN THE
22 AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION TWO
23 HUNDRED NINE OF THIS ARTICLE COMPUTED WITHOUT REGARD TO ANY CREDIT
24 PROVIDED FOR BY THIS ARTICLE.
25 (E) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI-
26 VISION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX
27 DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN
28 PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION, HOWEVER, IF
29 THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED
30 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
31 AMOUNT, OR IF ANY PART OF THE CREDIT OR CARRYOVERS OF SUCH CREDIT MAY
32 NOT BE DEDUCTED FROM THE TAX OTHERWISE DUE BY REASON OF THE FINAL
33 SENTENCE OF PARAGRAPH (D) OF THIS SUBDIVISION, ANY AMOUNT OF CREDIT OR
34 CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
35 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
36 THE TAX FOR SUCH YEAR OR YEARS.
37 S 3. Section 606 of the tax law is amended by adding a new subsection
38 (u) to read as follows:
39 (U) TELECOMMUTING JOB CREATION WAGE TAX CREDIT. (1) A TAXPAYER SHALL
40 BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
41 TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF SUCH CREDIT SHALL BE AS
42 PRESCRIBED BY PARAGRAPH THREE OF THIS SUBSECTION.
43 (2) FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL
44 HAVE THE FOLLOWING MEANINGS:
45 (I) "TELECOMMUTING JOB" MEANS A POSITION THAT DID NOT EXIST IN THE
46 TAXPAYER'S BUSINESS IN THE THREE TAXABLE YEARS PRIOR TO HIRING THE TELE-
47 COMMUTING EMPLOYEES FOR WHOM THE CREDIT IS CLAIMED AND WHICH PROVIDES
48 NOT LESS THAN TWENTY HOURS PER WEEK OF EMPLOYMENT.
49 (II) "TELECOMMUTING JOB CREATION WAGES" MEANS WAGES PAID BY THE
50 TAXPAYER FOR EMPLOYMENT, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT
51 IS IN A TELECOMMUTING JOB CREATED FOR AND PERFORMED BY TELECOMMUTING
52 EMPLOYEES.
53 (III) "TELECOMMUTING EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES
54 TELECOMMUTING JOB CREATION WAGES, WHO WAS NOT EMPLOYED BY THE TAXPAYER
55 IN THE THREE PRIOR TAXABLE YEARS, AND WHO PERFORMS THEIR JOB DUTIES FROM
56 HIS OR HER RESIDENCE.
A. 6497 10
1 (IV) "TAXPAYER" MEANS A NEW YORK TAXPAYER, AS DEFINED IN PARAGRAPH (F)
2 OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
3 (V) THE CREDIT MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE
4 TELECOMMUTING EMPLOYEE IS EMPLOYED BY THE TAXPAYER, PROVIDED, HOWEVER,
5 WHERE A TELECOMMUTING EMPLOYEE IS HIRED IN THE LAST QUARTER OF A TAXABLE
6 YEAR AND IS EMPLOYED BY THE TAXPAYER FOR THE ENTIRE FOLLOWING TAXABLE
7 YEAR, THE TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR THE TAXABLE YEAR
8 OF THE HIRING AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH
9 REFLECTS WAGES PAID IN SUCH YEAR.
10 (3) THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE PERSONAL
11 INCOME TAX GENERATED BY THE TELECOMMUTING EMPLOYEES EMPLOYED BY THE
12 TAXPAYER, PROVIDED, HOWEVER, THAT THE CREDIT PROVIDED FOR UNDER THIS
13 SUBSECTION WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH
14 CREDIT TO THE TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY
15 NOT, IN THE AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER
16 SECTION TWO HUNDRED NINE OF THIS CHAPTER COMPUTED WITHOUT REGARD TO ANY
17 CREDIT PROVIDED FOR BY THIS ARTICLE.
18 (4) IF THE AMOUNT OF THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
19 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
20 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
21 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
22 TAX OTHERWISE DUE BY REASON OF THE FINAL SENTENCE IN PARAGRAPH THREE OF
23 THIS SUBSECTION, MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND
24 MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
25 S 4. This act shall take effect on the one hundred eightieth day after
26 it shall have become a law.
27 PART C
28 Section 1. The general municipal law is amended by adding a new
29 section 959-c to read as follows:
30 S 959-C. DECERTIFICATION DUE TO THE OUTSOURCING OF JOBS. A CERTIFIED
31 BUSINESS ENTERPRISE IN AN EMPIRE ZONE SHALL BE DECERTIFIED BY THE
32 COMMISSIONER, THE LOCAL EMPIRE ZONE CERTIFICATION OFFICER AND THE
33 COMMISSIONER OF LABOR IF IT IS DETERMINED THAT SUCH CERTIFIED BUSINESS
34 ENTERPRISE HAS FAILED TO MEET JOB CREATION PROJECTIONS AS SET FORTH IN
35 THE CERTIFICATION PROCESS, AND IT IS FOUND THAT SUCH CERTIFIED BUSINESS
36 HAS OUTSOURCED JOBS. PRIOR TO THE COMMISSIONER, THE LOCAL EMPIRE ZONE
37 CERTIFICATION OFFICER AND THE COMMISSIONER OF LABOR DECERTIFYING SUCH
38 CERTIFIED BUSINESS ENTERPRISE, THEY SHALL PROVIDE NOTICE TO THE CERTI-
39 FIED BUSINESS ENTERPRISE OF THEIR INTENT TO DECERTIFY SUCH CERTIFIED
40 BUSINESS ENTERPRISE AND OF ITS RIGHT TO REQUEST A HEARING. A CERTIFIED
41 BUSINESS ENTERPRISE SHALL HAVE THIRTY DAYS WITHIN WHICH TO REQUEST A
42 HEARING FROM ITS RECEIPT OF THE NOTICE OF INTENT TO REVOKE CERTIFICATION
43 AND OPPORTUNITY FOR A HEARING. FAILURE TO REQUEST A HEARING WITHIN THIR-
44 TY DAYS SHALL BE DEEMED A WAIVER OF THE CERTIFIED BUSINESS ENTERPRISE'S
45 RIGHT TO A HEARING. FOR THE PURPOSES OF THIS SECTION, "OUTSOURCE" MEANS
46 TO RELOCATE OR MOVE JOBS OUTSIDE OF THE STATE OF NEW YORK TO ANOTHER
47 STATE OR COUNTRY.
48 S 2. This act shall take effect immediately.
49 PART D
50 Section 1. Section 208 of the tax law is amended by adding two new
51 subdivisions 20 and 21 to read as follows:
A. 6497 11
1 20. "MANUFACTURER" SHALL MEAN A TAXPAYER WHICH DURING THE TAXABLE YEAR
2 IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF GOODS BY MANUFACTURING,
3 PROCESSING, ASSEMBLING, REFINING, MINING, EXTRACTING, FARMING, AGRICUL-
4 TURE, HORTICULTURE, FLORICULTURE, VITICULTURE OR COMMERCIAL FISHING.
5 MOREOVER, FOR PURPOSES OF COMPUTING THE CAPITAL BASE IN A COMBINED
6 REPORT, THE GROUP SHALL BE CONSIDERED A "MANUFACTURER" FOR PURPOSES OF
7 THIS ARTICLE ONLY IF THE COMBINED GROUP DURING THE TAXABLE YEAR IS PRIN-
8 CIPALLY ENGAGED IN THE ACTIVITIES SET FORTH IN THIS SUBDIVISION, OR ANY
9 COMBINATION THEREOF.
10 21. "PRINCIPALLY ENGAGED" SHALL INCLUDE A TAXPAYER OR A COMBINED GROUP
11 IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE GROSS
12 RECEIPTS OF THE TAXPAYER OR COMBINED GROUP, RESPECTIVELY, ARE DERIVED
13 FROM RECEIPTS FROM THE SALE OF GOODS PRODUCED BY MANUFACTURING. IN
14 COMPUTING A COMBINED GROUP'S GROSS RECEIPTS, INTERCORPORATE RECEIPTS
15 SHALL BE ELIMINATED.
16 S 2. Section 209 of the tax law is amended by adding a new subdivision
17 11 to read as follows:
18 11. FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
19 THOUSAND ELEVEN, A TAXPAYER WHO IS A MANUFACTURER SHALL BE FULLY EXEMPT
20 FROM ALL TAXES IMPOSED BY THIS ARTICLE.
21 S 3. Subsection (f) of section 601 of the tax law, as amended by chap-
22 ter 248 of the laws of 1997, is amended to read as follows:
23 (f) Partners and partnerships. A partnership as such shall not be
24 subject to tax under this article. Persons carrying on business as part-
25 ners shall be liable for tax under this article only in their separate
26 or individual capacities. NOTWITHSTANDING THIS OR ANY OTHER SECTION OF
27 THIS ARTICLE, A PERSON'S LIABILITY FOR TAX UNDER THIS SUBSECTION, IF
28 SUCH PERSON'S PRIMARY ACTIVITY IS IN HIS OR HER ROLE AS A MANUFACTURER,
29 SHALL BE ZERO FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
30 THOUSAND ELEVEN. FOR PURPOSES OF THIS SECTION A PERSON SHALL BE CLASSI-
31 FIED AS A MANUFACTURER IF, HE OR SHE IS PRINCIPALLY ENGAGED IN THE
32 PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING, REFINING,
33 MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE,
34 VITICULTURE OR COMMERCIAL FISHING. IN ADDITION, FOR PURPOSES OF COMPUT-
35 ING THE CAPITAL BASE IN A COMBINED REPORT, THE GROUP SHALL BE CONSIDERED
36 A MANUFACTURER FOR PURPOSES OF THIS ARTICLE, ONLY IF THE COMBINED GROUP
37 DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET
38 FORTH IN THIS SUBSECTION, OR ANY COMBINATION THEREOF. FOR PURPOSES OF
39 THIS SUBSECTION, A TAXPAYER IS "PRINCIPALLY ENGAGED" IN THE DESCRIBED
40 ACTIVITY IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE
41 GROSS RECEIPTS OF THE TAXPAYER ARE DERIVED FROM RECEIPTS FROM ACTIVITIES
42 COVERED BY THIS SUBSECTION. As used in this article, the term "partner-
43 ship" shall include, unless a different meaning is clearly required, a
44 subchapter K limited liability company. The term "subchapter K limited
45 liability company" shall mean a limited liability company classified as
46 a partnership for federal income tax purposes. The term "limited liabil-
47 ity company" means a domestic limited liability company or a foreign
48 limited liability company, as defined in section one hundred two of the
49 limited liability company law, a limited liability investment company
50 formed pursuant to section five hundred seven of the banking law, or a
51 limited liability trust company formed pursuant to section one hundred
52 two-a of the banking law.
53 S 4. Subsection (b) of section 602 of the tax law, as amended by chap-
54 ter 333 of the laws of 1987, is amended to read as follows:
55 (b) The tax imposed by this section on New York minimum taxable
56 income, as defined in section six hundred twenty-two or section six
A. 6497 12
1 hundred thirty-six, as the case may be, shall be at the rate of six
2 percent, EXCEPT FOR, IN THE CASE OF INCOME DERIVED FROM ACTIVITY OF A
3 PERSON CLASSIFIED AS A MANUFACTURER UNDER SUBSECTION (F) OF SECTION SIX
4 HUNDRED ONE OF THIS PART, THE TAX IMPOSED BY THIS SECTION ON NEW YORK
5 MINIMUM TAXABLE INCOME FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
6 FIRST, TWO THOUSAND ELEVEN, SHALL BE ZERO.
7 S 5. This act shall take effect immediately and shall apply to taxable
8 years commencing on or after January 1, 2011; provided, however, that
9 the commissioner of taxation and finance is authorized to promulgate any
10 and all rules and regulations and take any other measures necessary for
11 the timely implementation of this act on its effective date on or before
12 such date.
13 S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
14 sion, section or part of this act shall be adjudged by any court of
15 competent jurisdiction to be invalid, such judgment shall not affect,
16 impair, or invalidate the remainder thereof, but shall be confined in
17 its operation to the clause, sentence, paragraph, subdivision, section
18 or part thereof directly involved in the controversy in which such judg-
19 ment shall have been rendered. It is hereby declared to be the intent of
20 the legislature that this act would have been enacted even if such
21 invalid provisions had not been included herein.
22 S 3. This act shall take effect immediately provided, however, that
23 the applicable effective date of Parts A through D of this act shall be
24 as specifically set forth in the last section of such Parts.
