Bill Text: NY A06868 | 2011-2012 | General Assembly | Introduced
Bill Title: Creates a sales tax exemption for green technology companies purchasing manufacturing equipment.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2012-06-19 - held for consideration in ways and means [A06868 Detail]
Download: New_York-2011-A06868-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6868 2011-2012 Regular Sessions I N A S S E M B L Y April 5, 2011 ___________ Introduced by M. of A. KATZ -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to creating a sales tax exemption for green technology companies purchasing manufacturing equipment; and providing for the repeal of such provisions upon expi- ration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. The tax law is amended by adding a new section 1124 to read 2 as follows: 3 S 1124. EXEMPTION FROM TAX ON MANUFACTURING EQUIPMENT PURCHASES FOR 4 GREEN TECHNOLOGY COMPANIES. (A) QUALIFYING GREEN TECHNOLOGY COMPANIES 5 SHALL BE EXEMPT FROM THE SALES TAXES IMPOSED UNDER THIS ARTICLE WHEN 6 PURCHASING NECESSARY MANUFACTURING EQUIPMENT TO BE USED IN CARRYING ON A 7 GREEN TECHNOLOGY TRADE OR BUSINESS IN ACCORDANCE WITH THE PROVISIONS OF 8 THIS SECTION. 9 (B) TO QUALIFY FOR TAX EXEMPT STATUS ELIGIBLE COMPANIES SHALL APPLY TO 10 THE COMMISSIONER WHO SHALL EVALUATE THE APPLICATION PURSUANT TO THE 11 GUIDELINES IN THIS SECTION AND RENDER A DECISION APPROVING OR DENYING 12 THE APPLICATION. APPLICATIONS SHALL BE SUBMITTED FOR EACH ELIGIBLE 13 PROJECT ON AN INDIVIDUAL BASIS AND SHALL STATE THE TOTAL DOLLAR AMOUNT 14 THAT WILL BE EXPENDED ON THE PURCHASE. 15 (C) THE COMMISSIONER SHALL PUBLISH NOTICE OF THE AVAILABILITY OF 16 PROJECT APPLICATIONS AND DEADLINES FOR SUBMISSION OF PROJECT APPLICA- 17 TIONS TO THE COMMISSIONER AND SHALL EVALUATE PROJECT APPLICATIONS BASED 18 UPON THE FOLLOWING CRITERIA: 19 1. THE EXTENT TO WHICH THE PROJECT DEVELOPS MANUFACTURING FACILITIES, 20 OR PURCHASES EQUIPMENT FOR MANUFACTURING FACILITIES, LOCATED IN NEW 21 YORK. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09094-01-1 A. 6868 2 1 2. THE EXTENT TO WHICH THE ANTICIPATED BENEFIT TO THE STATE FROM THE 2 PROJECT EQUALS OR EXCEEDS THE PROJECTED BENEFIT TO THE PARTICIPATING 3 PARTY FROM THE SALES AND USE TAX EXCLUSION. 4 3. THE EXTENT TO WHICH THE PROJECT WILL CREATE NEW, PERMANENT JOBS IN 5 NEW YORK. 6 4. TO THE EXTENT FEASIBLE, THE EXTENT TO WHICH THE PROJECT, OR THE 7 PRODUCT PRODUCED BY THE PROJECT, RESULTS IN A REDUCTION OF GREENHOUSE 8 GASES, A REDUCTION IN AIR OR WATER POLLUTION, AN INCREASE IN ENERGY 9 EFFICIENCY, OR A REDUCTION IN ENERGY CONSUMPTION, BEYOND WHAT IS 10 REQUIRED BY ANY FEDERAL OR STATE LAW OR REGULATION. 11 5. THE EXTENT OF UNEMPLOYMENT IN THE AREA IN WHICH THE PROJECT IS 12 PROPOSED TO BE LOCATED. 13 6. ANY OTHER FACTORS THE AUTHORITY DEEMS APPROPRIATE IN ACCORDANCE 14 WITH THIS SECTION. 15 (D) THE COMMISSIONER'S OFFICE SHALL BE PERMITTED TO EXEMPT A TOTAL NOT 16 TO EXCEED ONE HUNDRED MILLION DOLLARS IN SALES TAX THROUGH THIS APPLICA- 17 TION PROCESS TO INDIVIDUAL PROJECTS. APPLICATIONS MEETING THE CRITERIA 18 OUTLINED IN SUBDIVISION (C) OF THIS SECTION SHALL BE GIVEN PRIORITY AND 19 THE CREDIT SHALL BE EXTENDED TO AS MANY ELIGIBLE BUSINESSES AS POSSIBLE 20 UP TO THE ONE HUNDRED MILLION DOLLAR CEILING. 21 (E) UPON APPROVAL OF AN ELIGIBLE PROJECT THE COMMISSIONER SHALL 22 PROVIDE ELIGIBLE GREEN TECHNOLOGY COMPANIES WITH AN APPROVAL FORM TO BE 23 SUPPLIED TO THE SELLER AT THE POINT OF PURCHASE. 24 1. SAID FORM MUST BE GIVEN TO THE SELLER FROM THE PURCHASER WITH ALL 25 ENTRIES COMPLETED NO LATER THAN NINETY DAYS AFTER DELIVERY OF THE 26 PURCHASED PROPERTY, OR THE SALE WILL BE DEEMED TO HAVE BEEN TAXABLE AT 27 THE TIME OF THE TRANSACTION. 28 2. IF THE SELLER RECEIVES THE CERTIFICATE AFTER THE NINETY DAY PERIOD, 29 BOTH THE SELLER AND THE PURCHASER ASSUME THE BURDEN OF PROVING THE SALE 30 WAS EXEMPT, AND ADDITIONAL SUBSTANTIATION MAY BE REQUIRED. 31 (F) THE COMMISSIONER IN CONJUNCTION WITH THE DEPARTMENT OF ECONOMIC 32 DEVELOPMENT AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL 33 REPORT TO THE LEGISLATURE AND THE GOVERNOR ON THE EFFECTIVENESS OF THIS 34 PROGRAM, WITHIN ONE YEAR OF THE PROGRAM'S TERMINATION DATE, BY EVALUAT- 35 ING FACTORS, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: 36 1. THE NUMBER OF JOBS CREATED BY THE PROGRAM IN NEW YORK. 37 2. THE NUMBER OF BUSINESSES THAT HAVE REMAINED IN NEW YORK OR RELO- 38 CATED TO NEW YORK AS A RESULT OF THIS PROGRAM. 39 3. THE AMOUNT OF STATE AND LOCAL REVENUE AND ECONOMIC ACTIVITY GENER- 40 ATED BY THE PROGRAM. 41 4. THE AMOUNT OF REDUCTION IN GREENHOUSE GASES, AIR POLLUTION, WATER 42 POLLUTION, OR ENERGY CONSUMPTION. 43 (G) THE COMMISSIONER SHALL ADOPT ANY REGULATIONS NECESSARY FOR 44 PURPOSES OF IMPLEMENTING THIS SECTION. 45 (H) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE 46 THE FOLLOWING MEANINGS: 47 1. "ELIGIBLE COMPANY" SHALL MEAN A COMPANY THAT IS A RESIDENT OF NEW 48 YORK STATE AND ENGAGES IN A BUSINESS OR TRADE IN THE GREEN TECHNOLOGY 49 INDUSTRY; 50 2. "ELIGIBLE PROJECT" SHALL MEAN NECESSARY MANUFACTURING EQUIPMENT 51 PURCHASED TO BE USED IN CARRYING ON A GREEN TECHNOLOGY TRADE OR BUSI- 52 NESS; 53 3. "GREEN TECHNOLOGY" INCLUDES BUT SHALL NOT BE LIMITED TO TECHNOLOGY 54 THAT PROMOTES SUSTAINABILITY BY MEETING THE NEEDS OF SOCIETY IN WAYS 55 THAT CAN CONTINUE INDEFINITELY INTO THE FUTURE WITHOUT DAMAGING OR A. 6868 3 1 DEPLETING NATURAL RESOURCES AND HAS THE SMALLEST IMPACT ON THE ENVIRON- 2 MENT. SUCH TECHNOLOGY: 3 (I) CREATES PRODUCTS THAT CAN BE FULLY RECLAIMED OR RE-USED. 4 (II) REDUCES WASTE AND POLLUTION BY CHANGING PATTERNS OF PRODUCTION 5 AND CONSUMPTION. 6 (III) DEVELOPS ALTERNATIVES TO TECHNOLOGIES, WHETHER FOSSIL FUEL OR 7 CHEMICAL INTENSIVE AGRICULTURE, THAT HAVE BEEN DEMONSTRATED TO DAMAGE 8 HEALTH AND THE ENVIRONMENT. 9 (IV) REDUCES GREENHOUSE GAS EMISSIONS. 10 (V) REDUCES ENERGY CONSUMPTION. 11 (VI) ADVANCES TRANSPORTATION TECHNOLOGIES THAT PROMOTE EFFICIENCY 12 WHILE REDUCING ENERGY CONSUMPTION. 13 S 2. This act shall take effect immediately and shall expire one year 14 after such effective date when upon such date the provisions of this act 15 shall be deemed repealed.