Bill Text: NY A08483 | 2021-2022 | General Assembly | Introduced
Bill Title: Limits the use of fossil fuels in the research or production of energy for purposes of the excelsior jobs program; prohibits businesses engaged in the production, transmission, distribution, transportation or storage of fossil fuels from participation in the START-UP NY program; eliminates property that directly produces, transmits, distributes, transports or stores fossil fuels from qualifying tangible property for purposes of the investment tax credit and the Brownfield redevelopment tax credit; relates to tax on sales of motor fuel and petroleum products and makes conforming changes; relates to the definition of qualified rehabilitation expenditures for purposes of the tax credit for rehabilitation of historic properties; relates to the definition of a qualified emerging technology company; relates to the definition of manufacturer for purposes of the calculation of special tax benefits for qualified New York manufacturers; repeals provisions relating to manufacturing gallonage for purposes of the imposition of certain taxes; repeals provisions relating to reimbursement; repeals provisions relating to a utility credit or reimbursement; repeals provisions relating to an aviation fuel business which services four or more cities; repeals provisions relating to services rendered with respect to certain property; repeals provisions relating to fuel sold to an airline for use in its airplanes.
Spectrum: Partisan Bill (Democrat 38-0)
Status: (Introduced - Dead) 2022-01-05 - referred to economic development [A08483 Detail]
Download: New_York-2021-A08483-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8483 2021-2022 Regular Sessions IN ASSEMBLY November 17, 2021 ___________ Introduced by M. of A. CAHILL -- read once and referred to the Committee on Economic Development AN ACT to amend the economic development law and the public service law, in relation to limiting the use of fossil fuels in the research or production of energy for purposes of the excelsior jobs program; to amend the economic development law, in relation to prohibiting busi- nesses engaged in the production, transmission, distribution, trans- portation or storage of fossil fuels from participation in the START- UP NY program; to amend the tax law, in relation to eliminating property that directly produces, transmits, distributes, transports or stores fossil fuels from qualifying tangible property for purposes of the investment tax credit and the Brownfield redevelopment tax credit; to amend the tax law, in relation to tax on sales of motor fuel and petroleum products and to make conforming changes; to amend the tax law, in relation to the definition of qualified rehabilitation expend- itures for purposes of the tax credit for rehabilitation of historic properties; to amend the public authorities law, in relation to the definition of a qualified emerging technology company; to amend the tax law, in relation to the definition of manufacturer for purposes of the calculation of special tax benefits for qualified New York manufacturers; to repeal paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g) of section 301-a of the tax law relating to manu- facturing gallonage for purposes of the imposition of certain taxes; to repeal subdivisions (i), (j), and (l) of section 301-c of the tax law relating to reimbursement; to repeal section 301-d of the tax law relating to a utility credit or reimbursement; to repeal subdivision (f) of section 301-e of the tax law relating to an aviation fuel business which services four or more cities; to repeal subparagraph (xi) of paragraph 3 of subdivision (c) of section 1105 of the tax law relating to services rendered with respect to certain property; and to repeal paragraph 9 of subdivision (a) of section 1115 of the tax law relating to fuel sold to an airline for use in its airplanes EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13295-03-1A. 8483 2 The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "Fossil Fuel Subsidy Elimination Act". 3 § 2. Subdivisions 17, 18, 21, and 22 of section 352 of the economic 4 development law, as amended by section 1 of part K of chapter 59 of the 5 laws of 2017, subdivision 18 as separately amended by section 1 of part 6 ZZ of chapter 59 of the laws of 2017, are amended to read as follows: 7 17. "Qualified investment" means an investment in tangible property 8 (including a building or a structural component of a building) owned by 9 a business enterprise which: 10 (a) is depreciable pursuant to section one hundred sixty-seven of the 11 internal revenue code; 12 (b) has a useful life of four years or more; 13 (c) is acquired by purchase as defined in section one hundred seven- 14 ty-nine (d) of the internal revenue code; 15 (d) does not directly produce, transmit, distribute, transport, or 16 store fossil fuels or directly utilize fossil fuels for the production 17 of on-site energy, including thermal energy, for any purpose. For the 18 purposes of this article, fossil fuel shall have the same definition as 19 in section 1-103 of the energy law; 20 (e) has a situs in this state; and 21 [(e)] (f) is placed in service in the state on or after the date the 22 certificate of eligibility is issued to the business enterprise. 23 18. "Regionally significant project" means (a) a manufacturer creating 24 at least ten net new jobs in the state and making significant capital 25 investment in the state; (b) a business creating at least ten net new 26 jobs in agriculture in the state and making significant capital invest- 27 ment in the state, (c) a financial services firm, distribution center, 28 or back office operation creating at least one hundred net new jobs in 29 the state and making significant capital investment in the state, (d) a 30 scientific research and development firm creating at least ten net new 31 jobs in the state, and making significant capital investment in the 32 state, (e) a life sciences company creating at least twenty net new jobs 33 in the state and making significant capital investment in the state or 34 (f) an entertainment company creating or obtaining at least two hundred 35 net new jobs in the state and making significant capital investment in 36 the state. Other businesses creating one hundred fifty or more net new 37 jobs in the state and making significant capital investment in the state 38 may be considered eligible as a regionally significant project by the 39 commissioner as well. A regionally significant project shall not be 40 engaged in the production, transmission, distribution, transportation, 41 storage, sale, purchase, or delivery of fossil fuels. The commissioner 42 shall promulgate regulations pursuant to section three hundred fifty-six 43 of this article to determine what additional criteria a business must 44 meet to be eligible as a regionally significant project, including, but 45 not limited to, whether a business exports a substantial portion of its 46 products or services outside of the state or outside of a metropolitan 47 statistical area or county within the state. 48 21. "Research and development expenditures" mean the expenses of the 49 business enterprise that are qualified research expenses under the 50 federal research and development credit under section forty-one of the 51 internal revenue code and are attributable to activities conducted in 52 the state. If the federal research and development credit has expired, 53 then the research and development expenditures shall be calculated as ifA. 8483 3 1 the federal research and development credit structure and definition in 2 effect in federal tax year two thousand nine were still in effect. 3 Research and development expenditures does not include any expenses for 4 tangible personal property that directly produces, transmits, distrib- 5 utes, transports, or stores fossil fuels or directly utilizes fossil 6 fuels for the production of on-site energy, including thermal energy, 7 for any purpose. 8 22. "Scientific research and development" means conducting research 9 and experimental development in the physical, engineering, and life 10 sciences, including but not limited to agriculture, electronics, envi- 11 ronmental, biology, botany, biotechnology, computers, chemistry, food, 12 fisheries, forests, geology, health, mathematics, medicine, oceanogra- 13 phy, pharmacy, physics, veterinary, and other allied subjects. For the 14 purposes of this article, scientific research and development does not 15 include medical or veterinary laboratory testing facilities, or any 16 research that contributes to the production, transmission, distribution, 17 transportation, storage, sale, purchase, or delivery of fossil fuels. 18 § 3. Subdivision 7 of section 355 of the economic development law, as 19 added by section 4 of part G of chapter 61 of the laws of 2011, is 20 amended to read as follows: 21 7. For availability of special excelsior jobs program rates governing 22 the provision of [gas or] electric service, see subdivision twelve-d of 23 section sixty-six of the public service law. Such special excelsior jobs 24 program rates may remain available to participants as defined in this 25 article for a period of up to ten years commencing in the first taxable 26 year that the participant receives a certificate of tax credit, or the 27 first taxable year listed on its preliminary schedule of benefits, 28 whichever is later. Provided however, if a participant is removed from 29 the excelsior jobs program pursuant to this article, the excelsior jobs 30 program rates may be denied. 31 § 4. Subdivision 12-d of section 66 of the public service law, as 32 added by section 8 of part G of chapter 61 of the laws of 2011, is 33 amended to read as follows: 34 12-d. Notwithstanding any other provision of law, upon application of 35 [a gas or] an electric corporation, the commission shall authorize such 36 corporation to charge a special excelsior jobs program rate equal to the 37 incremental cost of providing electric service to participants in the 38 excelsior jobs program as defined in article seventeen of the economic 39 development law. 40 § 5. Subdivision 2 of section 433 of the economic development law, as 41 added by section 1 of part A of chapter 68 of the laws of 2013, is 42 amended to read as follows: 43 2. The following types of businesses are prohibited from participating 44 in the START-UP NY program. 45 (a) retail and wholesale businesses; 46 (b) restaurants; 47 (c) real estate brokers; 48 (d) law firms; 49 (e) medical or dental practices; 50 (f) real estate management companies; 51 (g) hospitality; 52 (h) finance and financial services; 53 (i) businesses providing personal services; 54 (j) businesses providing business administrative or support services, 55 unless such business has received permission from the commissioner to 56 apply to participate in the START-UP NY program upon demonstration thatA. 8483 4 1 the business would create no fewer than one hundred net new jobs in the 2 tax-free NY area; 3 (k) accounting firms; 4 (l) businesses providing utilities; [and] 5 (m) businesses engaged in the generation or distribution of electric- 6 ity, the distribution of natural gas, or the production of steam associ- 7 ated with the generation of electricity; and 8 (n) businesses engaged in the production, transmission, distribution, 9 transportation, or storage of fossil fuels as defined in section 1-103 10 of the energy law. 11 § 6. Subparagraph (i) of paragraph (b) of subdivision 1 of section 12 210-B of the tax law, as amended by section 2 of part P of chapter 59 of 13 the laws of 2017, is amended to read as follows: 14 (i) A credit shall be allowed under this subdivision with respect to 15 tangible personal property and other tangible property, including build- 16 ings and structural components of buildings, which are: depreciable 17 pursuant to section one hundred sixty-seven of the internal revenue 18 code, have a useful life of four years or more, are acquired by purchase 19 as defined in section one hundred seventy-nine (d) of the internal 20 revenue code, have a situs in this state and are (A) principally used by 21 the taxpayer in the production of goods by manufacturing, processing, 22 assembling, refining, mining, extracting, farming, agriculture, horti- 23 culture, floriculture, viticulture or commercial fishing, (B) industrial 24 waste treatment facilities or air pollution control facilities, used in 25 the taxpayer's trade or business, (C) research and development property, 26 or (D) principally used in the ordinary course of the taxpayer's trade 27 or business as a broker or dealer in connection with the purchase or 28 sale (which shall include but not be limited to the issuance, entering 29 into, assumption, offset, assignment, termination, or transfer) of 30 stocks, bonds or other securities as defined in section four hundred 31 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 32 defined in section four hundred seventy-five (e) of the Internal Revenue 33 Code, (E) principally used in the ordinary course of the taxpayer's 34 trade or business of providing investment advisory services for a regu- 35 lated investment company as defined in section eight hundred fifty-one 36 of the Internal Revenue Code, or lending, loan arrangement or loan orig- 37 ination services to customers in connection with the purchase or sale 38 (which shall include but not be limited to the issuance, entering into, 39 assumption, offset, assignment, termination, or transfer) of securities 40 as defined in section four hundred seventy-five (c)(2) of the Internal 41 Revenue Code, (F) principally used in the ordinary course of the taxpay- 42 er's business as an exchange registered as a national securities 43 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- 44 ties Exchange Act of 1934 or a board of trade as defined in subparagraph 45 one of paragraph (a) of section fourteen hundred ten of the not-for-pro- 46 fit corporation law or as an entity that is wholly owned by one or more 47 such national securities exchanges or boards of trade and that provides 48 automation or technical services thereto, or (G) principally used as a 49 qualified film production facility including qualified film production 50 facilities having a situs in an empire zone designated as such pursuant 51 to article eighteen-B of the general municipal law, where the taxpayer 52 is providing three or more services to any qualified film production 53 company using the facility, including such services as a studio lighting 54 grid, lighting and grip equipment, multi-line phone service, broadband 55 information technology access, industrial scale electrical capacity, 56 food services, security services, and heating, ventilation and airA. 8483 5 1 conditioning. For purposes of clauses (D), (E) and (F) of this subpara- 2 graph, property purchased by a taxpayer affiliated with a regulated 3 broker, dealer, registered investment advisor, national securities 4 exchange or board of trade, is allowed a credit under this subdivision 5 if the property is used by its affiliated regulated broker, dealer, 6 registered investment advisor, national securities exchange or board of 7 trade in accordance with this subdivision. For purposes of determining 8 if the property is principally used in qualifying uses, the uses by the 9 taxpayer described in clauses (D) and (E) of this subparagraph may be 10 aggregated. In addition, the uses by the taxpayer, its affiliated regu- 11 lated broker, dealer and registered investment advisor under either or 12 both of those clauses may be aggregated. Provided, however, a taxpayer 13 shall not be allowed the credit provided by clauses (D), (E) and (F) of 14 this subparagraph unless the property is first placed in service before 15 October first, two thousand fifteen and (i) eighty percent or more of 16 the employees performing the administrative and support functions 17 resulting from or related to the qualifying uses of such equipment are 18 located in this state or (ii) the average number of employees that 19 perform the administrative and support functions resulting from or 20 related to the qualifying uses of such equipment and are located in this 21 state during the taxable year for which the credit is claimed is equal 22 to or greater than ninety-five percent of the average number of employ- 23 ees that perform these functions and are located in this state during 24 the thirty-six months immediately preceding the year for which the cred- 25 it is claimed, or (iii) the number of employees located in this state 26 during the taxable year for which the credit is claimed is equal to or 27 greater than ninety percent of the number of employees located in this 28 state on December thirty-first, nineteen hundred ninety-eight or, if the 29 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 30 eight, the last day of its first taxable year ending after December 31 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 32 subject to tax in this state after the taxable year beginning in nine- 33 teen hundred ninety-eight, then the taxpayer is not required to satisfy 34 the employment test provided in the preceding sentence of this subpara- 35 graph for its first taxable year. For purposes of clause (iii) of this 36 subparagraph the employment test will be based on the number of employ- 37 ees located in this state on the last day of the first taxable year the 38 taxpayer is subject to tax in this state. If the uses of the property 39 must be aggregated to determine whether the property is principally used 40 in qualifying uses, then either each affiliate using the property must 41 satisfy this employment test or this employment test must be satisfied 42 through the aggregation of the employees of the taxpayer, its affiliated 43 regulated broker, dealer, and registered investment adviser using the 44 property. For purposes of clause (A) of this subparagraph, tangible 45 personal property and other tangible property shall not include property 46 principally used by the taxpayer in the production or distribution of 47 electricity, natural gas after extraction from wells, steam, or water 48 delivered through pipes and mains. For purposes of this subdivision, 49 tangible personal property and other tangible property does not include 50 property that directly produces, transmits, distributes, transports, or 51 stores fossil fuels as defined in section 1-103 of the energy law, or 52 directly utilizes fossil fuels for the production of on-site energy, 53 including thermal energy, for any purpose. 54 § 7. Subdivision (m) of section 301-a of the tax law, as added by 55 section 20 of part K of chapter 61 of the laws of 2011, is amended to 56 read as follows:A. 8483 6 1 (m) Special rate adjustment for certain vessels. Notwithstanding any 2 provision of this section to the contrary, the use of non-highway diesel 3 motor fuel in the engine of a vessel to propel such vessel shall be 4 subject to tax at the motor fuel and highway diesel motor fuel rate 5 provided for in this section, and shall be subject to the provisions of 6 section three hundred one-j of this article, including the adjustment 7 set forth in paragraph [four] three of subdivision (a) of such section 8 three hundred one-j. A credit or refund shall be available to the extent 9 tax paid on gallonage used to propel any such vessel exceeds the amount 10 of tax due based on the tax rate set forth herein. Provided, however, 11 that the commissioner shall require such documentary proof to qualify 12 for any credit or reimbursement provided hereunder as the commissioner 13 deems appropriate. 14 § 8. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g) 15 of section 301-a of the tax law are REPEALED. 16 § 9. Subdivisions (a) and (d) of section 301-b of the tax law, subdi- 17 vision (a) as added by chapter 190 of the laws of 1990, paragraph 5 of 18 subdivision (a) as amended by section 3 of part E of chapter 59 of the 19 laws of 2012, paragraphs 6, 7 and 8 of subdivision (a) as added by 20 section 4 of part W-1 of chapter 109 of the laws of 2006, and subdivi- 21 sion (d) as amended by section 21 of part K of chapter 61 of the laws of 22 2011, are amended to read as follows: 23 (a) Products. (1) [Kerosene sold or used by a petroleum business which24is registered under article twelve-A of this chapter as a distributor of25diesel motor fuel so long as (i) such product has not been blended or26mixed with any other product constituting diesel motor fuel or motor27fuel or a residual petroleum product and (ii) such product is not used28by the petroleum business as fuel to operate a motor vehicle or sold by29such petroleum business to a consumer for use as fuel to operate a motor30vehicle.31(2) Kero-jet fuel (i) sold by a petroleum business which is registered32under article twelve-A of this chapter as a distributor of diesel motor33fuel to a consumer for use exclusively as jet aircraft fuel or to a34petroleum business registered under such article twelve-A as a "distrib-35utor of kero-jet fuel only" where such fixed base operator is engaged36solely in making or offering to make retail sales not in bulk of kero-37jet fuel directly into the fuel tank of an airplane for the purpose of38operating such airplane, (ii) used by a petroleum business, registered39under article twelve-A of this chapter as a distributor of diesel motor40fuel, exclusively as jet aircraft fuel, or (iii) sold at retail not in41bulk by a petroleum business registered under article twelve-A of this42chapter as a "distributor of kero-jet fuel only" where such fuel is43delivered directly into the fuel tank of a jet airplane for use in the44operation of such airplane.45(3)] Aviation gasoline, meeting the specifications set forth in Ameri- 46 can Standard Testing Material Specification D910 or Military Specifica- 47 tion MIL-G-5572, which is imported or caused to be imported into this 48 state by a petroleum business which is registered under article twelve-A 49 of this chapter as a distributor of motor fuel or produced, refined, 50 manufactured or compounded in this state by such a petroleum business. 51 [(4) Residual petroleum product sold by a petroleum business regis-52tered under this article as a residual petroleum product business if53such product is sold by such petroleum business to a consumer for use54exclusively as bunker fuel for vessels or if such product is used by55such petroleum business exclusively as bunker fuel in its own vessels.56(5) Liquefied petroleum gases, such as butane, ethane or propane.A. 8483 7 1(6)] (2) E85 imported or caused to be imported into this state or 2 produced, refined, manufactured or compounded in this state by a petro- 3 leum business registered under article twelve-A of this chapter, as a 4 distributor of motor fuel, and then sold by such petroleum business and 5 delivered to a filling station and placed in a storage tank of such 6 filling station for such E85 to be dispensed directly into a motor vehi- 7 cle for use in the operation of such vehicle. 8 [(7)] (i) Partial B20 exemption. B20 imported or caused to be imported 9 into this state or produced, refined, manufactured or compounded in this 10 state by a petroleum business registered under article twelve-A of this 11 chapter, as a distributor of diesel motor fuel, and then sold by such 12 petroleum business. 13 (ii) Calculation of partial exemption. The amount of the partial 14 exemption under this paragraph shall be determined by multiplying the 15 quantity of B20 times twenty percent of the applicable taxes otherwise 16 imposed by this article on such fuel. 17 [(8)] (3) CNG or hydrogen. 18 (d) Sales to consumers for heating purposes. [(1)] Total residential 19 heating exemption. Non-highway diesel motor fuel sold by a petroleum 20 business registered under article twelve-A of this chapter as a distrib- 21 utor of diesel motor fuel or residual petroleum product sold by a petro- 22 leum business registered under this article as a residual petroleum 23 product business to the consumer exclusively for residential heating 24 purposes only if such non-highway diesel motor fuel is delivered into a 25 storage tank which is not equipped with a hose or other apparatus by 26 which such fuel can be dispensed into the fuel tank of a motor vehicle 27 and such storage tank is attached to the heating unit burning such fuel. 28 [(2) Partial non-residential heating exemption. (A) Non-highway diesel29motor fuel sold by a petroleum business registered under article30twelve-A of this chapter as a distributor of diesel motor fuel or resi-31dual petroleum product sold by a petroleum business registered under32this article as a residual petroleum product business to the consumer33exclusively for heating, other than residential heating purposes only if34such non-highway diesel motor fuel is delivered into a storage tank35which is not equipped with a hose or other apparatus by which such fuel36can be dispensed into the fuel tank of a motor vehicle and such storage37tank is attached to the heating unit burning such fuel (B) Calculation38of partial exemption. The partial exemption under this paragraph shall39be determined by multiplying the quantity of non-highway diesel motor40fuel and residual petroleum product eligible for the exemption times the41sum of the then current rate of the supplemental tax imposed by section42three hundred one-j of this article and forty-six percent of the then43current rate of the tax imposed by section three hundred one-a of this44article, with respect to the specific non-highway diesel motor fuel or45residual petroleum product rate, as the case may be.] 46 § 10. The opening paragraph and paragraph 1 of subdivision (c) of 47 section 301-b of the tax law, as added by chapter 190 of the laws of 48 1990, are amended to read as follows: 49 Sales to [New York state and] the federal government. (1) Motor fuel 50 imported or caused to be imported into this state or produced, refined, 51 manufactured or compounded in this state by a petroleum business regis- 52 tered under article twelve-A of this chapter, as a distributor of motor 53 fuel, and then sold by such petroleum business to an organization 54 described in paragraph [one or] two of subdivision (a) of section eleven 55 hundred sixteen of this chapter where such motor fuel is used by such 56 organization for its own use or consumption.A. 8483 8 1 § 11. The opening paragraph and subdivisions (a) and (b) of section 2 301-c of the tax law, the opening paragraph as amended by section 5 of 3 part W-1 of chapter 109 of the laws of 2006, subdivision (a) as amended 4 by section 23 of part K of chapter 61 of the laws of 2011, and subdivi- 5 sion (b) as amended by chapter 330 of the laws of 1991, are amended to 6 read as follows: 7 A subsequent purchaser shall be eligible for reimbursement of tax with 8 respect to the following gallonage, subsequently sold by such purchaser 9 in accordance with subdivision (a), (b), (e), (h), [(j), (k), (n) or10(o)] (i), (k) or (l) of this section or used by such purchaser in 11 accordance with subdivision (c), (d), (f), (g)[, (i), (l)] or [(m)] (j) 12 of this section, which gallonage has been included in the measure of the 13 tax imposed by this article on a petroleum business: 14 (a) [Non-highway Diesel motor fuel used for heating purposes. (1)] 15 Total residential heating reimbursement. Non-highway Diesel motor fuel 16 purchased in this state and sold by such purchaser to a consumer for use 17 exclusively for residential heating purposes but only where (i) such 18 non-highway diesel motor fuel is delivered into a storage tank which is 19 not equipped with a hose or other apparatus by which such non-highway 20 Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle 21 and such storage tank is attached to the heating unit burning such non- 22 highway Diesel motor fuel, (ii) the tax imposed pursuant to this article 23 has been paid with respect to such non-highway diesel motor fuel and the 24 entire amount of such tax has been absorbed by such purchaser, and (iii) 25 such purchaser possesses documentary proof satisfactory to the commis- 26 sioner evidencing the absorption by it of the entire amount of the tax 27 imposed pursuant to this article. Provided, however, that the commis- 28 sioner is authorized, in the event that the commissioner determines that 29 it would not threaten the integrity of the administration and enforce- 30 ment of the tax imposed by this article, to provide a reimbursement with 31 respect to a retail sale to a consumer for residential heating purposes 32 of less than ten gallons of non-highway diesel motor fuel provided such 33 fuel is not dispensed into the tank of a motor vehicle. 34 [(2) Partial non-residential heating reimbursement. (A) Non-highway35Diesel motor fuel purchased in this state and sold by such purchaser to36a consumer for use exclusively for heating, other than for residential37heating purposes, but only where (i) such non-highway diesel motor fuel38is delivered into a storage tank which is not equipped with a hose or39other apparatus by which such non-highway Diesel motor fuel can be40dispensed into the fuel tank of a motor vehicle and such storage tank is41attached to the heating unit burning such non-highway Diesel motor fuel,42(ii) the tax imposed pursuant to this article has been paid with respect43to such non-highway diesel motor fuel and the entire amount of such tax44has been absorbed by such purchaser, and (iii) such purchaser possesses45documentary proof satisfactory to the commissioner evidencing the46absorption by it of the entire amount of the tax imposed pursuant to47this article.48(B) Calculation of partial reimbursement. Notwithstanding any other49provision of this article, the amount of the reimbursement under this50paragraph shall be determined by multiplying the quantity of non-highway51diesel motor fuel eligible for the reimbursement times the sum of the52then current rate of the supplemental tax imposed by section three53hundred one-j of this article and forty-six percent of the then current54rate of the tax imposed by section three hundred one-a of this article,55with respect to the non-highway diesel motor fuel rate, as the case may56be.]A. 8483 9 1 (b) Sales to [New York state and] the federal government. Motor fuel 2 and diesel motor fuel purchased in this state and sold by such purchaser 3 in this state to an organization described in paragraph [one or] two of 4 subdivision (a) of section eleven hundred sixteen of this chapter where 5 (i) such motor fuel or diesel motor fuel is for such organization's own 6 use or consumption, (ii) the tax imposed pursuant to this article has 7 been paid with respect to such motor fuel or diesel motor fuel and the 8 entire amount of such tax has been absorbed by such purchaser and, (iii) 9 such purchaser possesses documentary proof satisfactory to the commis- 10 sioner of taxation and finance evidencing the absorption by it of the 11 entire amount of the tax imposed pursuant to this article. Provided, 12 however, that the commissioner [of taxation and finance] shall require 13 such documentary proof to qualify for any reimbursement of tax provided 14 by this section as the commissioner deems appropriate, including the 15 expansion of any certification required pursuant to section two hundred 16 eighty-five-a or two hundred eighty-five-b of this chapter to cover the 17 taxes imposed pursuant to this article. 18 § 11-a. The opening paragraph of section 301-c of the tax law, as 19 amended by chapter 468 of the laws of 2000, is amended to read as 20 follows: 21 A subsequent purchaser shall be eligible for reimbursement of tax with 22 respect to the following gallonage, subsequently sold by such purchaser 23 in accordance with subdivision (a), (b), (e), (h)[, (j)] or [(k)] (i) of 24 this section or used by such purchaser in accordance with subdivision 25 (c), (d), (f), (g)[, (i), (l)] or [(m)] (j) of this section, which 26 gallonage has been included in the measure of the tax imposed by this 27 article on a petroleum business: 28 § 12. Subdivisions (i), (j) and (l) of section 301-c of the tax law 29 are REPEALED. 30 § 13. Subdivisions (k), (m), (n), (o) and (p) of section 301-c of the 31 tax law are relettered subdivisions (i), (j), (k), (l) and (m). 32 § 14. Section 301-d of the tax law is REPEALED. 33 § 15. Subdivision (f) of section 301-e is REPEALED. 34 § 16. Subdivision (a) of section 301-j of the tax law, as amended by 35 chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by 36 section 29 of part K of chapter 61 of the laws of 2011, is amended to 37 read as follows: 38 (a) Imposition of tax. (1) In addition to the taxes imposed by 39 sections three hundred one-a and three hundred one-e of this article, 40 there is hereby imposed upon every petroleum business subject to tax 41 imposed under section three hundred one-a of this article and every 42 aviation fuel business subject to the aviation gasoline component of the 43 tax imposed under section three hundred one-e of this article, a supple- 44 mental monthly tax for each or any part of a taxable month at a rate of 45 six and eight-tenths cents per gallon with respect to the products 46 included in each component of the taxes imposed by such section three 47 hundred one-a and the aviation gasoline component of the tax imposed by 48 such section three hundred one-e of this article. 49 (2) [Provided, however, "commercial gallonage," as such term is50defined in subdivision (k) of section three hundred of this article,51shall be exempt from the measure of the tax imposed under this section.52(3)] Provided, further, "railroad diesel," as such term is defined in 53 subdivision (l) of section three hundred of this article, shall be 54 exempt from the measure of the tax imposed under this section. 55 [(4)] (3) Provided, further, a separate per gallon rate shall apply 56 with respect to highway diesel motor fuel. Such rate shall be determinedA. 8483 10 1 by taking the adjusted rate per gallon of tax imposed under paragraph 2 one of this subdivision as adjusted in accordance with paragraph [five] 3 four of this subdivision and subtracting therefrom one and three-quar- 4 ters cents. Commencing January first, two thousand twelve, and each 5 January thereafter, the per gallon rate applicable to highway diesel 6 motor fuel shall be the adjusted rate under paragraph one of this subdi- 7 vision as adjusted in accordance with paragraph [five] four of this 8 subdivision which commences on such date minus one and three-quarters 9 cents. The resulting rate under this paragraph shall be expressed in 10 hundredths of a cent. 11 [(5)] (4) Except as herein provided, the tax imposed under this 12 section shall be calculated in the same respective manner as the taxes 13 imposed by section three hundred one-a and section three hundred one-e 14 of this article. Except [for section three hundred one-d and except] as 15 otherwise provided in this section, all the provisions of this article 16 applicable to the taxes imposed by sections three hundred one-a and 17 three hundred one-e of this article, shall apply with respect to the 18 supplemental tax imposed by this section to the same extent as if it 19 were respectively imposed by such sections. 20 § 17. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 21 of the tax law, as amended by section 3 of part P of chapter 59 of the 22 laws of 2017, is amended to read as follows: 23 (A) A credit shall be allowed under this subsection with respect to 24 tangible personal property and other tangible property, including build- 25 ings and structural components of buildings, which are: depreciable 26 pursuant to section one hundred sixty-seven of the internal revenue 27 code, have a useful life of four years or more, are acquired by purchase 28 as defined in section one hundred seventy-nine (d) of the internal 29 revenue code, have a situs in this state and are (i) principally used by 30 the taxpayer in the production of goods by manufacturing, processing, 31 assembling, refining, mining, extracting, farming, agriculture, horti- 32 culture, floriculture, viticulture or commercial fishing, (ii) indus- 33 trial waste treatment facilities or air pollution control facilities, 34 used in the taxpayer's trade or business, (iii) research and development 35 property, (iv) principally used in the ordinary course of the taxpayer's 36 trade or business as a broker or dealer in connection with the purchase 37 or sale (which shall include but not be limited to the issuance, enter- 38 ing into, assumption, offset, assignment, termination, or transfer) of 39 stocks, bonds or other securities as defined in section four hundred 40 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 41 defined in section 475(e) of the Internal Revenue Code, (v) principally 42 used in the ordinary course of the taxpayer's trade or business of 43 providing investment advisory services for a regulated investment compa- 44 ny as defined in section eight hundred fifty-one of the Internal Revenue 45 Code, or lending, loan arrangement or loan origination services to 46 customers in connection with the purchase or sale (which shall include 47 but not be limited to the issuance, entering into, assumption, offset, 48 assignment, termination, or transfer) of securities as defined in 49 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 50 or (vi) principally used as a qualified film production facility includ- 51 ing qualified film production facilities having a situs in an empire 52 zone designated as such pursuant to article eighteen-B of the general 53 municipal law, where the taxpayer is providing three or more services to 54 any qualified film production company using the facility, including such 55 services as a studio lighting grid, lighting and grip equipment, multi- 56 line phone service, broadband information technology access, industrialA. 8483 11 1 scale electrical capacity, food services, security services, and heat- 2 ing, ventilation and air conditioning. For purposes of clauses (iv) and 3 (v) of this subparagraph, property purchased by a taxpayer affiliated 4 with a regulated broker, dealer, or registered investment adviser is 5 allowed a credit under this subsection if the property is used by its 6 affiliated regulated broker, dealer or registered investment adviser in 7 accordance with this subsection. For purposes of determining if the 8 property is principally used in qualifying uses, the uses by the taxpay- 9 er described in clauses (iv) and (v) of this subparagraph may be aggre- 10 gated. In addition, the uses by the taxpayer, its affiliated regulated 11 broker, dealer and registered investment adviser under either or both of 12 those clauses may be aggregated. Provided, however, a taxpayer shall not 13 be allowed the credit provided by clauses (iv) and (v) of this subpara- 14 graph unless (I) eighty percent or more of the employees performing the 15 administrative and support functions resulting from or related to the 16 qualifying uses of such equipment are located in this state, or (II) the 17 average number of employees that perform the administrative and support 18 functions resulting from or related to the qualifying uses of such 19 equipment and are located in this state during the taxable year for 20 which the credit is claimed is equal to or greater than ninety-five 21 percent of the average number of employees that perform these functions 22 and are located in this state during the thirty-six months immediately 23 preceding the year for which the credit is claimed, or (III) the number 24 of employees located in this state during the taxable year for which the 25 credit is claimed is equal to or greater than ninety percent of the 26 number of employees located in this state on December thirty-first, 27 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 28 year taxpayer in nineteen hundred ninety-eight, the last day of its 29 first taxable year ending after December thirty-first, nineteen hundred 30 ninety-eight. If the taxpayer becomes subject to tax in this state after 31 the taxable year beginning in nineteen hundred ninety-eight, then the 32 taxpayer is not required to satisfy the employment test provided in the 33 preceding sentence of this subparagraph for its first taxable year. For 34 the purposes of clause (III) of this subparagraph the employment test 35 will be based on the number of employees located in this state on the 36 last day of the first taxable year the taxpayer is subject to tax in 37 this state. If the uses of the property must be aggregated to determine 38 whether the property is principally used in qualifying uses, then either 39 each affiliate using the property must satisfy this employment test or 40 this employment test must be satisfied through the aggregation of the 41 employees of the taxpayer, its affiliated regulated broker, dealer, and 42 registered investment adviser using the property. For purposes of clause 43 (i) of this subparagraph, tangible personal property and other tangible 44 property shall not include property principally used by the taxpayer in 45 the production or distribution of electricity, natural gas after 46 extraction from wells, steam, or water delivered through pipes and 47 mains. For purposes of this subsection, tangible personal property and 48 other tangible property does not include property that directly produc- 49 es, transmits, distributes, transports, or stores fossil fuels as 50 defined in section 1-103 of the energy law, or directly utilizes fossil 51 fuels for the production of on-site energy, including thermal energy, 52 for any purpose. 53 § 18. Paragraph 3 of subdivision (b) of section 21 of the tax law, as 54 amended by chapter 420 of the laws of 2006, clause (i) of subparagraph 55 (B) as amended by section 22 of part BB of chapter 56 of the laws of 56 2015, is amended to read as follows:A. 8483 12 1 (3) Qualified tangible property. "Qualified tangible property" is 2 property described in either subparagraph (A) or (B) and subparagraph 3 (C) of this paragraph which: 4 (A) (i) is depreciable pursuant to section one hundred sixty-seven of 5 the internal revenue code, 6 (ii) has a useful life of four years or more, 7 (iii) has been acquired by purchase as defined in section one hundred 8 seventy-nine (d) of the internal revenue code, 9 (iv) has a situs on a qualified site in this state, and 10 (v) is principally used by the taxpayer for industrial, commercial, 11 recreational or environmental conservation purposes (including the 12 commercial development of residential housing); or 13 (B) (i) is, or when occupied becomes, part of a dwelling whose primary 14 ownership structure is covered under either article nine-B of the real 15 property law or meets the requirements of section 216 (b)(1) of the 16 Internal Revenue Code or is part of an affordable housing project as 17 defined in subdivision twenty-nine of section 27-1405 of the environ- 18 mental conservation law, where units are sold as single family homes or 19 multiple family dwellings; 20 (ii) has been acquired by purchase (as defined in section one hundred 21 seventy-nine (d) of the Internal Revenue Code); 22 (iii) has a situs on a qualified site in this state; and 23 (iv) for purposes of this subparagraph only, and notwithstanding any 24 other section of law to the contrary, property qualifying under this 25 subparagraph shall be deemed to be qualified tangible property for the 26 purposes of paragraph one of subdivision (d) of this section; and in 27 addition, for the purposes of this subdivision only, property qualifying 28 under this subparagraph shall be deemed to have been placed in service 29 for the purposes of paragraph three of subdivision (a) of this section 30 when a certificate of occupancy is issued for such property; and 31 (C) does not directly produce, transmit, distribute, transport, or 32 store fossil fuels as defined in section 1-103 of the energy law, or 33 directly utilize fossil fuels for the production of on-site energy, 34 including thermal energy, for any purpose. 35 § 19. Subdivision 26 of section 210-B of the tax law is amended by 36 adding a new paragraph (g) to read as follows: 37 (g) For purposes of this subdivision, "qualified rehabilitation 38 expenditures" does not include expenditures for property that directly 39 produces, transmits, distributes, transports, or stores fossil fuels as 40 defined in section 1-103 of the energy law, or directly utilizes fossil 41 fuels for the production of on-site energy, including thermal energy, 42 for any purpose. 43 § 20. Subparagraphs (ix) and (x) of paragraph 3 and paragraph 5 of 44 subdivision (c) of section 1105 of the tax law, subparagraph (ix) of 45 paragraph 3 as added by chapter 395 of the laws of 1998, subparagraph 46 (x) of paragraph 3 as added by section 1 of part FF of chapter 407 of 47 the laws of 1999, and paragraph 5 as amended by chapter 321 of the laws 48 of 2005, are amended to read as follows: 49 (ix) [such services rendered with respect to tangible property used or50consumed directly and predominantly in the production for sale of gas or51oil by manufacturing, processing, generating, assembling, refining,52mining, or extracting.53(x)] such services rendered with respect to property described in 54 paragraph twelve-a of subdivision (a) of section eleven hundred fifteen 55 of this article.A. 8483 13 1 (5) Maintaining, servicing or repairing real property, property or 2 land, as such terms are defined in the real property tax law, whether 3 the services are performed in or outside of a building, as distinguished 4 from adding to or improving such real property, property or land, by a 5 capital improvement as such term capital improvement is defined in para- 6 graph nine of subdivision (b) of section eleven hundred one of this 7 article, but excluding (i) services rendered by an individual who is not 8 in a regular trade or business offering his services to the public, (ii) 9 [services rendered directly with respect to real property, property or10land used or consumed directly and predominantly in the production for11sale of gas or oil by manufacturing, processing, generating, assembling,12refining, mining, or extracting, (iii)] services rendered with respect 13 to real property, property or land used or consumed predominantly either 14 in the production of tangible personal property, for sale, by farming or 15 in a commercial horse boarding operation, or in both and [(iv)] (iii) 16 services of removal of waste material from a facility regulated as a 17 transfer station or construction and demolition debris processing facil- 18 ity by the department of environmental conservation, provided that the 19 waste material to be removed was not generated by the facility. 20 § 21. Subparagraph (xi) of paragraph 3 of subdivision (c) of section 21 1105 of the tax law is REPEALED. 22 § 22. Paragraph 9 of subdivision (a) of section 1115 of the tax law is 23 REPEALED. 24 § 23. Paragraph (ii) of subdivision (b) of section 1115 of the tax 25 law, as amended by section 30 of part Y of chapter 63 of the laws of 26 2000, is amended to read as follows: 27 (ii) [Gas, electricity] Electricity, refrigeration and steam, and 28 [gas,] electric, refrigeration and steam service of whatever nature for 29 use or consumption directly and exclusively in research and development 30 in the experimental or laboratory sense shall be exempt from the tax 31 imposed under subdivision (b) of section eleven hundred five and the 32 compensating use tax imposed under section eleven hundred ten of this 33 article. Such research and development shall not be deemed to include 34 the ordinary testing or inspection of materials or products for quality 35 control, efficiency surveys, management studies, consumer surveys, 36 advertising, promotions or research in connection with literary, histor- 37 ical or similar projects. 38 § 24. Paragraph 1 of subdivision (c) of section 1115 of the tax law, 39 as amended by section 7 of part B of chapter 63 of the laws of 2000, is 40 amended to read as follows: 41 (1) [Fuel, gas, electricity] Electricity, refrigeration and steam, and 42 [gas,] electric, refrigeration and steam service of whatever nature for 43 use or consumption directly and exclusively in the production of tangi- 44 ble personal property, [gas,] electricity, refrigeration or steam, for 45 sale, by manufacturing, processing, assembling, generating, refining, 46 mining or extracting shall be exempt from the taxes imposed under subdi- 47 visions (a) and (b) of section eleven hundred five and the compensating 48 use tax imposed under section eleven hundred ten of this article. 49 § 25. Subdivision (j) of section 1115 of the tax law, as amended by 50 section 41 of part K of chapter 61 of the laws of 2011, is amended to 51 read as follows: 52 (j) The exemptions provided in this section shall not apply to the tax 53 required to be prepaid pursuant to the provisions of section eleven 54 hundred two of this article nor to the taxes imposed by sections eleven 55 hundred five and eleven hundred ten of this article with respect to 56 receipts from sales and uses of motor fuel or diesel motor fuel,[exceptA. 8483 14 1that the exemptions provided in paragraphs nine and forty-two of subdi-2vision (a) of this section shall apply to the tax required to be prepaid3pursuant to the provisions of section eleven hundred two of this article4and to the taxes imposed by sections eleven hundred five and eleven5hundred ten of this article with respect to sales and uses of kero-jet6fuel,] CNG, hydrogen and E85, provided, however, the exemption allowed 7 for E85 shall be subject to the additional requirements provided in 8 section eleven hundred two of this article with respect to E85. The 9 exemption provided in subdivision (c) of this section shall apply to 10 sales and uses of non-highway diesel motor fuel but only if all of such 11 fuel is consumed other than on the public highways of this state. The 12 exemption provided in subdivision (c) of this section shall apply to 13 sales and uses of non-highway diesel motor fuel for use or consumption 14 either in the production for sale of tangible personal property by farm- 15 ing or in a commercial horse boarding operation, or in both but only if 16 all of such fuel is consumed other than on the public highways of this 17 state (except for the use of the public highways to reach adjacent farm- 18 lands or adjacent lands used in a commercial horse boarding operation, 19 or both). 20 § 25-a. Subdivision (j) of section 1115 of the tax law, as amended by 21 section 41-a of part K of chapter 61 of the laws of 2011, is amended to 22 read as follows: 23 (j) The exemptions provided in this section shall not apply to the tax 24 required to be prepaid pursuant to the provisions of section eleven 25 hundred two of this article nor to the taxes imposed by sections eleven 26 hundred five and eleven hundred ten of this article with respect to 27 receipts from sales and uses of motor fuel or diesel motor fuel[, except28that the exemption provided in paragraph nine of subdivision (a) of this29section shall apply to the tax required to be prepaid pursuant to the30provisions of section eleven hundred two of this article and to the31taxes imposed by sections eleven hundred five and eleven hundred ten of32this article with respect to sales and uses of kero-jet fuel]. The 33 exemption provided in subdivision (c) of this section shall apply to 34 sales and uses of non-highway diesel motor fuel but only if all of such 35 fuel is consumed other than on the public highways of this state. The 36 exemption provided in subdivision (c) of this section shall apply to 37 sales and uses of non-highway diesel motor fuel for use or consumption 38 either in the production for sale of tangible personal property by farm- 39 ing or in a commercial horse boarding operation, or in both but only if 40 all of such fuel is consumed other than on the public highways of this 41 state (except for the use of the public highways to reach adjacent farm- 42 lands or adjacent lands used in a commercial horse boarding operation, 43 or both). 44 § 26. Subdivision (s) of section 1115 of the tax law, as added by 45 chapter 201 of the laws of 1995, is relettered subdivision (p). 46 § 27. Subdivision (w) of section 1115 of the tax law, as added by 47 section 32 of part Y of chapter 63 of the laws of 2000, is amended to 48 read as follows: 49 (w) Receipts from the sale of [gas or] electricity or [gas or] elec- 50 tric service of whatever nature and consideration given or contracted to 51 be given for, or for the use of, [gas or] electricity or [gas or] elec- 52 tric service of whatever nature purchased for use or consumption direct- 53 ly and exclusively to provide [gas or] electric service of whatever 54 nature consisting of operating [a gas pipeline or gas distribution line55or] an electric transmission or distribution line [and ensuring the56necessary working pressure in an underground gas storage facility] shallA. 8483 15 1 be exempt from sales and compensating use taxes imposed by this article. 2 Such exempt [gas or] electricity or [gas or] electric service of whatev- 3 er nature shall include, but shall not be limited to, such [gas or] 4 electricity or [gas or] electric service of whatever nature used or 5 consumed directly and exclusively to (1) [ensure necessary working pres-6sure in a gas pipeline used to transport, transmit or distribute gas,7(2) operate compressors used to transport, transmit or distribute gas8through such a gas pipeline or distribution line or used to ensure9necessary working pressure in such a storage facility, (3) operate heat-10ers to prevent gas in such a pipeline or distribution line from freez-11ing, (4) operate equipment which removes impurities and moisture from12gas in such a pipeline or distribution line, (5)] operate substations 13 and equipment related to electric transmission and distribution lines 14 such as transformers, capacitors, meters, switches, communication 15 devices and heating and cooling equipment, and [(6)] (2) ensure the 16 reliability of electricity or electric service transmitted or distrib- 17 uted through such lines, for example, by operating reserve capacity 18 machinery and equipment. 19 § 28. Subdivision (k) of section 300 of the tax law, as amended by 20 section 17 of part K of chapter 61 of the laws of 2011, is amended to 21 read as follows: 22 (k) "Commercial gallonage" means gallonage (1) which is non-highway 23 diesel motor fuel or residual petroleum product, (2) [which is included24in the full measure of the non-highway diesel motor fuel component or25the residual petroleum product component of the tax imposed under26section three hundred one-a of this article, (3)] which does not (and 27 will not) qualify (A) [for the utility credit or reimbursement provided28for in section three hundred one-d of this article, (B)] as "manufactur- 29 ing gallonage", as such term is defined in subdivision (m) of this 30 section, [(C)] or (B) for the not-for-profit organization exemption 31 provided for in subdivision (h) of section three hundred one-b of this 32 article, [or (D) for the heating exemption provided for in paragraph two33of subdivision (d) of section three hundred one-b of this article or the34heating reimbursement provided for in paragraph two of subdivision (a)35of section three hundred one-c of this article,] and [(4)] (3) which 36 will not be used nor has been used in the fuel tank connecting with the 37 engine of a vessel. No gallonage shall qualify as "commercial gallonage" 38 where such gallonage is eligible for the [(i) utility credit or39reimbursement under such section three hundred one-d of this article,40(ii) "manufacturing exemption" under paragraph three of subdivision (f)41of section three hundred one-a of this article, (iii)] not-for-profit 42 organization exemption under subdivision (h) of section three hundred 43 one-b of this article[, or (iv) heating exemption provided for in para-44graph two of subdivision (d) of section three hundred one-b of this45article or the heating reimbursement provided for in paragraph two of46subdivision (a) of section three hundred one-c of this article]. The 47 commissioner shall require such documentary proof to substantiate the 48 classification of product as "commercial gallonage" as the commissioner 49 deems appropriate. 50 § 29. Paragraph 1 of subdivision (f) of section 301-b of the tax law, 51 as amended by section 21 of part K of chapter 61 of the laws of 2011, is 52 amended to read as follows: 53 (1) Residual petroleum product and non-highway diesel motor fuel sold 54 to an electric corporation, [as described in subdivision (a) of section55three hundred one-d of this article,] as defined in subdivision thirteen 56 of section two of the public service law, subject to the supervision ofA. 8483 16 1 the department of public service, which is registered with the depart- 2 ment as a petroleum business tax direct pay permittee, and used by such 3 electric corporation to fuel generators for the purpose of manufacturing 4 or producing electricity where such electric corporation provides a copy 5 of a direct pay permit authorized and issued by the commissioner, to the 6 petroleum business making such sale. If so registered, such corporation 7 shall be a taxpayer under this article and (i) such electric corporation 8 shall file a return monthly and pay the applicable tax under this arti- 9 cle, after the application of allowable credits, on all such purchases 10 directly to the commissioner, (ii) such electric corporation shall be 11 subject to all of the provisions of this article relating to the respon- 12 sibilities and liabilities of taxpayers under this article with respect 13 to such residual petroleum product and non-highway diesel motor fuel. 14 § 30. Subdivision (y) of section 1511 of the tax law, as added by 15 chapter 472 of the laws of 2010, is amended by adding a new paragraph 7 16 to read as follows: 17 (7) For purposes of this subsection, "qualified rehabilitation expend- 18 itures" does not include expenditures for property that directly produc- 19 es, transmits, distributes, transports, or stores fossil fuels as 20 defined in section 1-103 of the energy law, or directly utilizes fossil 21 fuels for the production of on-site energy, including thermal energy, 22 for any purpose. 23 § 31. Paragraph (c) of subdivision 1 of section 3102-e of the public 24 authorities law, as added by section 31 of part A of chapter 56 of the 25 laws of 1998, is amended to read as follows: 26 (c) "Qualified emerging technology company" shall mean a company 27 located in New York state: (1) whose primary products or services are 28 classified as emerging technologies and whose total annual product sales 29 are ten million dollars or less; or (2) a company which has research and 30 development activities in New York state and whose ratio of research and 31 development funds to net sales equals or exceeds the average ratio for 32 all surveyed companies classified as determined by the National Science 33 Foundation in the most recent published results from its Survey of 34 Industry Research and Development, or any comparable successor survey as 35 determined by the department, and whose total annual product sales are 36 ten million dollars or less. Qualified emerging technology company shall 37 not include a company engaged in the production, transmission, distrib- 38 ution, transportation, or storage of fossil fuels as defined in section 39 1-103 of the energy law. 40 The definition of "research and development funds" shall be the same 41 as that used by the National Science Foundation in the aforementioned 42 survey. 43 § 32. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 44 210 of the tax law, as amended by section 1 of part D of chapter 59 of 45 the laws of 2019, is amended to read as follows: 46 (vi) for taxable years beginning on or after January first, two thou- 47 sand fourteen, the amount prescribed by this paragraph for a taxpayer 48 that is a qualified New York manufacturer, shall be computed at the rate 49 of zero percent of the taxpayer's business income base. The term 50 "manufacturer" shall mean a taxpayer that during the taxable year is 51 principally engaged in the production of goods by manufacturing, proc- 52 essing, assembling, refining, mining, extracting, farming, agriculture, 53 horticulture, floriculture, viticulture or commercial fishing. However, 54 the generation and distribution of electricity, the distribution of 55 natural gas, [and] the production of steam associated with the gener- 56 ation of electricity, and the production, transmission, distribution,A. 8483 17 1 transportation, or storage of fossil fuels as defined in section 1-103 2 of the energy law shall not be qualifying activities for a manufacturer 3 under this subparagraph. Moreover, in the case of a combined report, the 4 combined group shall be considered a "manufacturer" for purposes of this 5 subparagraph only if the combined group during the taxable year is prin- 6 cipally engaged in the activities set forth in this paragraph, or any 7 combination thereof. A taxpayer or, in the case of a combined report, a 8 combined group shall be "principally engaged" in activities described 9 above if, during the taxable year, more than fifty percent of the gross 10 receipts of the taxpayer or combined group, respectively, are derived 11 from receipts from the sale of goods produced by such activities. In 12 computing a combined group's gross receipts, intercorporate receipts 13 shall be eliminated. A "qualified New York manufacturer" is a manufac- 14 turer that has property in New York that is described in clause (A) of 15 subparagraph (i) of paragraph (b) of subdivision one of section two 16 hundred ten-B of this article and either (I) the adjusted basis of such 17 property for New York state tax purposes at the close of the taxable 18 year is at least one million dollars or (II) all of its real and 19 personal property is located in New York. A taxpayer or, in the case of 20 a combined report, a combined group, that does not satisfy the princi- 21 pally engaged test may be a qualified New York manufacturer if the 22 taxpayer or the combined group employs during the taxable year at least 23 two thousand five hundred employees in manufacturing in New York and the 24 taxpayer or the combined group has property in the state used in manu- 25 facturing, the adjusted basis of which for New York state tax purposes 26 at the close of the taxable year is at least one hundred million 27 dollars. 28 § 33. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 29 of the tax law, as amended by section 2 of part D of chapter 59 of the 30 laws of 2019, is amended to read as follows: 31 (2) For purposes of subparagraph one of this paragraph, the term 32 "manufacturer" shall mean a taxpayer that during the taxable year is 33 principally engaged in the production of goods by manufacturing, proc- 34 essing, assembling, refining, mining, extracting, farming, agriculture, 35 horticulture, floriculture, viticulture or commercial fishing; provided, 36 however, the production, transmission, distribution, transportation, or 37 storage of fossil fuels as defined in section 1-103 of the energy law 38 shall not be qualifying activities for a manufacturer under this subpar- 39 agraph. Moreover, for purposes of computing the capital base in a 40 combined report, the combined group shall be considered a "manufacturer" 41 for purposes of this subparagraph only if the combined group during the 42 taxable year is principally engaged in the activities set forth in this 43 subparagraph, or any combination thereof. A taxpayer or, in the case of 44 a combined report, a combined group shall be "principally engaged" in 45 activities described above if, during the taxable year, more than fifty 46 percent of the gross receipts of the taxpayer or combined group, respec- 47 tively, are derived from receipts from the sale of goods produced by 48 such activities. In computing a combined group's gross receipts, inter- 49 corporate receipts shall be eliminated. A "qualified New York manufac- 50 turer" is a manufacturer that has property in New York that is described 51 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of 52 section two hundred ten-B of this article and either (i) the adjusted 53 basis of that property for New York state tax purposes at the close of 54 the taxable year is at least one million dollars or (ii) all of its real 55 and personal property is located in New York. In addition, a "qualified 56 New York manufacturer" means a taxpayer that is defined as a qualifiedA. 8483 18 1 emerging technology company under paragraph (c) of subdivision one of 2 section thirty-one hundred two-e of the public authorities law regard- 3 less of the ten million dollar limitation expressed in subparagraph one 4 of such paragraph. A taxpayer or, in the case of a combined report, a 5 combined group, that does not satisfy the principally engaged test may 6 be a qualified New York manufacturer if the taxpayer or the combined 7 group employs during the taxable year at least two thousand five hundred 8 employees in manufacturing in New York and the taxpayer or the combined 9 group has property in the state used in manufacturing, the adjusted 10 basis of which for New York state tax purposes at the close of the taxa- 11 ble year is at least one hundred million dollars. 12 § 34. This act shall take effect immediately and shall apply to taxa- 13 ble years commencing on or after the first of January next succeeding 14 the date on which it shall have become a law; provided, however, that: 15 (a) the amendments to paragraphs 6, 7 and 8 of subdivision (a) of 16 section 301-b made by section nine of this act shall not affect the 17 repeal of such paragraphs and shall be deemed repealed therewith; 18 (b) the amendments to the opening paragraph of section 301-c of the 19 tax law made by section eleven of this act shall be subject to the expi- 20 ration and reversion of such paragraph pursuant to section 19 of part 21 W-1 of chapter 109 of the laws of 2006, as amended, when upon such date 22 the provisions of section eleven-a of this act shall take effect; 23 (c) the amendments to subdivisions (k) and (l) of section 301-c made 24 by section thirteen of this act shall not affect the repeal of such 25 subdivisions and shall be deemed repealed therewith; and 26 (d) the amendments to subdivision (j) of section 1115 of the tax law 27 made by section twenty-five of this act shall be subject to the expira- 28 tion and reversion of such subdivision pursuant to section 19 of part 29 W-1 of chapter 109 of the laws of 2006, as amended, when upon such date 30 the provisions of section twenty-five-a of this act shall take effect.