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.