Bill Text: NY A09009 | 2021-2022 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year; accelerates middle class tax cuts (Subpart A); provides for an alternative tax table benefit recapture for certain taxpayers (Subpart B)(Part A); provides an enhanced investment tax credit to farmers (Subpart A); extends the farm workforce retention credit (Subpart B); establishes a farm employer overtime credit (Subpart C)(Part B); expands the small business subtraction modification (Part C); excludes certain student loan forgiveness awards from state income tax (Part D); enacts the COVID-19 capital costs tax credit program to provide financial assistance to economically harmed businesses (Part E); extends and expands the New York City musical and theatrical production tax credit and the purposes of the New York state council on the arts cultural programs fund (Part F); extends and modifies the hire a vet credit; adds persons who served in the active uniformed services of the United States as a member of the commissioned corps of the national oceanic and atmospheric administration or the commissioned corps of the United States public health service to the definition of a qualified veteran (Part H); establishes a tax credit of 50% of a taxpayer's costs of conversion for the conversion from grade no. 6 heating oil usage to biodiesel heating oil and geothermal heating systems (Part I); extends the credit against income tax for persons or entities investing in low-income housing (Part J); extends the clean heating fuel credit for three years (Part K); relates to the application of a credit for companies who provide transportation to individuals with disabilities and extends provisions related thereto (Part L); requires the filing of a diversity plan to be granted an empire state film production credit; extends the effectiveness of the empire state film production credit (Part M); extends the New York youth jobs program tax credit (Part N); extends the empire state apprenticeship tax credit program (Part O); extends the alternative fuels and electric vehicle recharging property credit (Part P); extends the workers with disabilities tax credit program (Part Q); provides that commercial tugboats, barges and other commercial towboats are exempt from payment of the petroleum business tax (Part T); requires publication of changes in withholding tables and interest rates (Part W); expands the definition of financial institution under the financial institution data match program (Part X); extends the assessment ceiling for local public utility mass real property; provides for the challenging of assessed value by owners of local public utility mass real property (Part Y); provides for good cause refunds for the STAR program (Subpart A); clarifies the applicable income tax year for the basic STAR credit (Subpart C); allows names of STAR credit recipients to be shared with assessors outside of New York state (Subpart D); allows decedent reports to be given to assessors (Subpart E)(Part Z); relates to the grievance process with respect to the valuation of solar and wind energy systems (Part AA); establishes a homeowner tax rebate credit (Part BB); relates to the utilization of funds in the Catskill and Capital regions off-track betting corporations' capital acquisition funds; makes such provisions permanent (Part DD); provides licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes (Part EE); establishes a tax credit for the purchase and installation of geothermal energy systems (Part FF); relates to exempting certain food and drink items sold in vending machines from certain sales tax provisions (Part GG); provides an abatement of real property taxes for the creation or expansion of childcare centers in certain buildings in a city having a population of one million or more (Part HH); establishes a child care credit against certain business income taxes (Part II); relates to the earned income tax credit (Part JJ); allows for business entities in the restaurant return-to-work tax credit program to claim an additional credit of five thousand dollars per each full-time equivalent net employee increase above ten, not to exceed twenty (Part KK); clarifies that certain work performed remotely due to COVID-19 qualifies for certain tax credit programs (Part LL); relates to pass-through entity tax for electing resident and standard S corporations (Subpart A); establishes a city pass-through entity tax for electing city partnership and city resident S corporations (Subpart B) (Part MM); provides a supplemental empire state child credit; allows for the issuance of payment of a supplemental earned income tax credit and a supplemental enhanced earned income credit to resident taxpayers who have met certain requirements (Part NN); relates to the creation of the empire state digital gaming media production credit (Part OO); provides a tax deduction for the amount of any federal deduction disallowed pursuant to section 280E of the internal revenue code related to the production and distribution of adult-use cannabis products (Part PP); relates to the New York Jockey Injury Compensation Fund, Inc. (Part QQ); suspends certain taxes related to motor fuel and Diesel motor fuel; authorizes localities to impose certain taxes on such fuels (Part RR).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-04-07 - substituted by s8009c [A09009 Detail]
Download: New_York-2021-A09009-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year; accelerates middle class tax cuts (Subpart A); provides for an alternative tax table benefit recapture for certain taxpayers (Subpart B)(Part A); provides an enhanced investment tax credit to farmers (Subpart A); extends the farm workforce retention credit (Subpart B); establishes a farm employer overtime credit (Subpart C)(Part B); expands the small business subtraction modification (Part C); excludes certain student loan forgiveness awards from state income tax (Part D); enacts the COVID-19 capital costs tax credit program to provide financial assistance to economically harmed businesses (Part E); extends and expands the New York City musical and theatrical production tax credit and the purposes of the New York state council on the arts cultural programs fund (Part F); extends and modifies the hire a vet credit; adds persons who served in the active uniformed services of the United States as a member of the commissioned corps of the national oceanic and atmospheric administration or the commissioned corps of the United States public health service to the definition of a qualified veteran (Part H); establishes a tax credit of 50% of a taxpayer's costs of conversion for the conversion from grade no. 6 heating oil usage to biodiesel heating oil and geothermal heating systems (Part I); extends the credit against income tax for persons or entities investing in low-income housing (Part J); extends the clean heating fuel credit for three years (Part K); relates to the application of a credit for companies who provide transportation to individuals with disabilities and extends provisions related thereto (Part L); requires the filing of a diversity plan to be granted an empire state film production credit; extends the effectiveness of the empire state film production credit (Part M); extends the New York youth jobs program tax credit (Part N); extends the empire state apprenticeship tax credit program (Part O); extends the alternative fuels and electric vehicle recharging property credit (Part P); extends the workers with disabilities tax credit program (Part Q); provides that commercial tugboats, barges and other commercial towboats are exempt from payment of the petroleum business tax (Part T); requires publication of changes in withholding tables and interest rates (Part W); expands the definition of financial institution under the financial institution data match program (Part X); extends the assessment ceiling for local public utility mass real property; provides for the challenging of assessed value by owners of local public utility mass real property (Part Y); provides for good cause refunds for the STAR program (Subpart A); clarifies the applicable income tax year for the basic STAR credit (Subpart C); allows names of STAR credit recipients to be shared with assessors outside of New York state (Subpart D); allows decedent reports to be given to assessors (Subpart E)(Part Z); relates to the grievance process with respect to the valuation of solar and wind energy systems (Part AA); establishes a homeowner tax rebate credit (Part BB); relates to the utilization of funds in the Catskill and Capital regions off-track betting corporations' capital acquisition funds; makes such provisions permanent (Part DD); provides licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes (Part EE); establishes a tax credit for the purchase and installation of geothermal energy systems (Part FF); relates to exempting certain food and drink items sold in vending machines from certain sales tax provisions (Part GG); provides an abatement of real property taxes for the creation or expansion of childcare centers in certain buildings in a city having a population of one million or more (Part HH); establishes a child care credit against certain business income taxes (Part II); relates to the earned income tax credit (Part JJ); allows for business entities in the restaurant return-to-work tax credit program to claim an additional credit of five thousand dollars per each full-time equivalent net employee increase above ten, not to exceed twenty (Part KK); clarifies that certain work performed remotely due to COVID-19 qualifies for certain tax credit programs (Part LL); relates to pass-through entity tax for electing resident and standard S corporations (Subpart A); establishes a city pass-through entity tax for electing city partnership and city resident S corporations (Subpart B) (Part MM); provides a supplemental empire state child credit; allows for the issuance of payment of a supplemental earned income tax credit and a supplemental enhanced earned income credit to resident taxpayers who have met certain requirements (Part NN); relates to the creation of the empire state digital gaming media production credit (Part OO); provides a tax deduction for the amount of any federal deduction disallowed pursuant to section 280E of the internal revenue code related to the production and distribution of adult-use cannabis products (Part PP); relates to the New York Jockey Injury Compensation Fund, Inc. (Part QQ); suspends certain taxes related to motor fuel and Diesel motor fuel; authorizes localities to impose certain taxes on such fuels (Part RR).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-04-07 - substituted by s8009c [A09009 Detail]
Download: New_York-2021-A09009-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9009--B IN ASSEMBLY January 19, 2022 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommit- ted to said committee AN ACT to amend the tax law, in relation to accelerating the middle- class tax cut (Part A); to amend the tax law, in relation to providing an enhanced investment tax credit to farmers (Subpart A); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relat- ing to creating a farm workforce retention credit, in relation to the effectiveness of such credit (Subpart B); and to amend the tax law, in relation to establishing a farm employer overtime credit (Subpart C) (Part B); to amend the tax law and the administrative code of the city of New York, in relation to expanding the small business subtraction modification (Part C); to amend the tax law, in relation to excluding certain loan forgiveness awards from state income tax (Part D); to amend the economic development law and the tax law, in relation to creating the COVID-19 capital costs tax credit program (Part E); to amend the tax law and the state finance law, in relation to extending and expanding the New York city musical and theatrical production tax credit and the purposes of the New York state council on the arts cultural programs fund; and to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, in relation to the effectiveness ther- eof (Part F); to amend the tax law, in relation to establishing a permanent rate for the metropolitan transportation business tax surcharge (Part G); to amend the tax law, in relation to extending and modifying the hire a vet credit (Part H); to amend the tax law, in relation to establishing a tax credit for the conversion from grade no. 6 heating oil usage to biodiesel heating oil and geothermal systems (Part I); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part J); to amend the tax law, in relation to extending the clean heating fuel credit for three years EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-03-2A. 9009--B 2 (Part K); to amend chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transportation to people with disabilities, in relation to the effectiveness thereof; and to amend the tax law, in relation to the application of a credit for companies who provide transportation to individuals with disabili- ties (Part L); to amend the tax law, in relation to the empire state film production credit and the empire state film post production cred- it (Part M); to amend the labor law, in relation to extending the New York youth jobs program tax credit (Part N); to amend the labor law, in relation to extending the empire state apprenticeship tax credit program (Part O); to amend the tax law, in relation to extending the alternative fuels and electric vehicle recharging property credit (Part P); to amend the labor law, in relation to the program period for the workers with disabilities tax credit program; and to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to the effectiveness thereof (Part Q); intentionally omitted (Part R); to amend the tax law, in relation to the investment tax credit (Part S); intentionally omitted (Part T); intentionally omitted (Part U); intentionally omitted (Part V); to amend the tax law in relation to requiring publication of changes in withholding tables and interest rates (Part W); to amend the tax law, in relation to expanding the definition of financial institution under the financial institution data match program (Part X); to amend the real property tax law and chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, in relation to extending the assessment ceiling for local public utility mass real property to January 1, 2027 (Part Y); to amend the real property tax law, in relation to good cause refunds for the STAR program (Subpart A); intentionally omitted (Subpart B); to amend the tax law, in relation to clarifying the applicable income tax year for the basic STAR credit (Subpart C); to amend the tax law, in relation to allowing names of STAR credit recipients to be disclosed to asses- sors outside of New York state (Subpart D); and to amend the tax law, in relation to allowing decedent reports to be given to assessors (Subpart E) (Part Z); to amend the real property tax law, in relation to the grievance process with respect to the valuation of solar and wind energy systems (Part AA); to amend the tax law, in relation to establishing a homeowner tax rebate credit (Part BB); intentionally omitted (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisi- tion funds; and to amend part LLL of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law, relating to the utilization of funds in the Catskill and Capital regions off- track betting corporation's capital acquisition funds, in relation to the effectiveness thereof (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisionsA. 9009--B 3 thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part EE); to amend the tax law, in relation to providing for the advance payment of the earned income tax credit (Part FF); to amend the tax law, in relation to pass-through manufacturers zero percent tax rate (Part GG); to amend the tax law and the parks, recreation and historic pres- ervation law, in relation to extending the credit for rehabilitation of historic properties (Part HH); to amend the tax law, in relation to permitting deductions for commercial cannabis activity; and providing for the repeal of such provisions upon expiration thereof (Part II); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part JJ); to amend the tax law, in relation to increasing the aggregate cap on the amount of such credit (Part KK); to amend the tax law, in relation to exempting the sale of the first thirty-five thousand dollars of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes; and providing for the repeal of such provisions upon the expiration thereof (Part LL); to amend the tax law, in relation to establishing small business savings accounts (Part MM); to amend the tax law, in relation to establishing a credit for geothermal energy systems(Part NN); to amend the state finance law, in relation to the liability of a person who presents false claims for money or property to the state or a local government (Part OO); to amend the tax law, in relation to extending sales tax exemption for certain food and drink vending machines (Part PP); to amend the real property tax law, in relation to providing that state lands within the Eastport-South Manor Central School District are subject to taxation for school purposes (Part QQ); to amend the real property tax law and the tax law, in relation to the definition of income in relation to the enhanced STAR exemption (Part RR); to amend the real property tax law, in relation to an abatement of real proper- ty taxes for the creation or expansion of childcare centers in certain buildings in a city having a population of one million or more (Part SS); to amend the tax law and the administrative code of the city of New York, in relation to the earned income tax credit (Part TT); to amend the administrative code of the city of New York, in relation to establishing a tax credit for child care against the unincorporated business tax, general corporation tax, and the business corporation tax of 2015 (Part UU); to amend the tax law and the economic develop- ment law, in relation to the creation of the empire state digital gaming media production credit; and providing for the repeal of certain provisions upon expiration thereof (Part VV); and to amend the racing, pari-mutuel wagering and breeding law, in relation to mobile sports wagering licenses (Part WW) 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 which are necessary to implement the state fiscal plan for the 2022-2023 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through WW. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to aA. 9009--B 4 1 section "of this act", when used in connection with that particular 2 component, shall be deemed to mean and refer to the corresponding 3 section of the Part in which it is found. Section three of this act sets 4 forth the general effective date of this act. 5 PART A 6 Section 1. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of 7 paragraph 1 of subsection (a) of section 601 of the tax law, clauses 8 (vi), (vii) and (viii) as amended and clause (ix) as added by section 1 9 of part A of chapter 59 of the laws of 2021, are amended to read as 10 follows: 11 (vi) For taxable years beginning in two thousand twenty-three and 12 before two thousand twenty-eight the following rates shall apply: 13 [If the New York taxable income is: The tax is:14Not over $17,150 4% of the New York taxable income15Over $17,150 but not over $23,600 $686 plus 4.5% of excess over16$17,15017Over $23,600 but not over $27,900 $976 plus 5.25% of excess over18$23,60019Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over20$27,90021Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over22$161,55023Over $323,200 but not over $18,834 plus 6.85% of24$2,155,350 excess over $323,20025Over $2,155,350 but not over $144,336 plus 9.65% of excess over26$5,000,000 $2,155,35027Over $5,000,000 but not over $418,845 plus 10.30% of excess over28$25,000,000 $5,000,00029Over $25,000,000 $2,478,845 plus 10.90% of excess over30$25,000,00031(vii) For taxable years beginning in two thousand twenty-four the32following rates shall apply:33If the New York taxable income is: The tax is:34Not over $17,150 4% of the New York taxable income35Over $17,150 but not over $23,600 $686 plus 4.5% of excess over36$17,15037Over $23,600 but not over $27,900 $976 plus 5.25% of excess over38$23,60039Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over40$27,90041Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over42$161,55043Over $323,200 but not over $18,544 plus 6.85% of excess over44$2,155,350 $323,20045Over $2,155,350 but not over $144,047 plus 9.65% of excess over46$5,000,000 $2,155,35047Over $5,000,000 but not over $418,555 plus 10.30% of excess over48$25,000,000 $5,000,00049Over $25,000,000 $2,478,555 plus 10.90% of excess over50$25,000,00051(viii) For taxable years beginning after two thousand twenty-four and52before two thousand twenty-eight the following rates shall apply:]A. 9009--B 5 1 If the New York taxable income is: The tax is: 2 Not over $17,150 4% of the New York taxable income 3 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 4 $17,150 5 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 6 $23,600 7 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 8 $27,900 9 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 10 $161,550 11 Over $323,200 but not over $18,252 plus 6.85% of excess over 12 $2,155,350 $323,200 13 Over $2,155,350 but not over $143,754 plus 9.65% of excess over 14 $5,000,000 $2,155,350 15 Over $5,000,000 but not over $418,263 plus 10.30% of excess over 16 $25,000,000 $5,000,000 17 Over $25,000,000 $2,478,263 plus 10.90% of excess over 18 $25,000,000 19 [(ix)](vii) For taxable years beginning after two thousand twenty-sev- 20 en the following rates shall apply: 21 If the New York taxable income is: The tax is: 22 Not over $17,150 4% of the New York taxable income 23 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 24 $17,150 25 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 26 $23,600 27 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 28 $27,900 29 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess 30 over $161,550 31 Over $323,200 but not over $18,252 plus 6.85% of excess 32 $2,155,350 over $323,200 33 Over $2,155,350 $143,754 plus 8.82% of excess 34 over $2,155,350 35 § 2. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- 36 graph 1 of subsection (b) of section 601 of the tax law, clauses (vi), 37 (vii) and (viii) as amended and clause (ix) as added by section 2 of 38 part A of chapter 59 of the laws of 2021, are amended to read as 39 follows: 40 (vi) For taxable years beginning in two thousand twenty-three and 41 before two thousand twenty-eight the following rates shall apply: 42 [If the New York taxable income is: The tax is:43Not over $12,800 4% of the New York taxable income44Over $12,800 but not over $17,650 $512 plus 4.5% of excess over45$12,80046Over $17,650 but not over $20,900 $730 plus 5.25% of excess over47$17,65048Over $20,900 but not over $107,650 $901 plus 5.73% of excess over49$20,90050Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over51$107,65052Over $269,300 but not over $15,845 plus 6.85% of excess53$1,616,450 over $269,30054Over $1,616,450 but not over $108,125 plus 9.65% of excess overA. 9009--B 6 1$5,000,000 $1,616,4502Over $5,000,000 but not over $434,638 plus 10.30% of excess over3$25,000,000 $5,000,0004Over $25,000,000 $2,494,638 plus 10.90% of excess over5$25,000,0006(vii) For taxable years beginning in two thousand twenty-four the7following rates shall apply:8If the New York taxable income is: The tax is:9Not over $12,800 4% of the New York taxable income10Over $12,800 but not over $17,650 $512 plus 4.5% of excess over11$12,80012Over $17,650 but not over $20,900 $730 plus 5.25% of excess over13$17,65014Over $20,900 but not over $107,650 $901 plus 5.61% of excess over15$20,90016Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over17$107,65018Over $269,300 but not over $15,612 plus 6.85% of excess19$1,616,450 over $269,30020Over $1,616,450 but not over $107,892 plus 9.65% of excess over21$5,000,000 $1,616,45022Over $5,000,000 but not over $434,404 plus 10.30% of excess over23$25,000,000 $5,000,00024Over $25,000,000 $2,494,404 plus 10.90% of excess over25$25,000,00026(viii) For taxable years beginning after two thousand twenty-four and27before two thousand twenty-eight the following rates shall apply:] 28 If the New York taxable income is: The tax is: 29 Not over $12,800 4% of the New York taxable income 30 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 31 $12,800 32 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 33 $17,650 34 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 35 $20,900 36 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 37 $107,650 38 Over $269,300 but not over $15,371 plus 6.85% of excess over 39 $1,616,450 $269,300 40 Over $1,616,450 but not over $107,651 plus 9.65% of excess over 41 $5,000,000 $1,616,450 42 Over $5,000,000 but not over $434,163 plus 10.30% of excess over 43 $25,000,000 $5,000,000 44 Over $25,000,000 $2,494,163 plus 10.90% of excess over 45 $25,000,000 46 [(ix)](vii) For taxable years beginning after two thousand twenty-sev- 47 en the following rates shall apply: 48 If the New York taxable income is: The tax is: 49 Not over $12,800 4% of the New York taxable income 50 Over $12,800 but not over $512 plus 4.5% of excess over 51 $17,650 $12,800 52 Over $17,650 but not over $730 plus 5.25% of excess over 53 $20,900 $17,650 54 Over $20,900 but not over $901 plus 5.5% of excess over 55 $107,650 $20,900A. 9009--B 7 1 Over $107,650 but not over $5,672 plus 6.00% of excess 2 $269,300 over $107,650 3 Over $269,300 but not over $15,371 plus 6.85% of excess 4 $1,616,450 over $269,300 5 Over $1,616,450 $107,651 plus 8.82% of excess 6 over $1,616,450 7 § 3. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- 8 graph 1 of subsection (c) of section 601 of the tax law, clauses (vi), 9 (vii) and (viii) as amended, and clause (ix) as added by section 3 of 10 part A of chapter 59 of the laws of 2021, are amended to read as 11 follows: 12 (vi) For taxable years beginning in two thousand twenty-three and 13 before two thousand twenty-eight the following rates shall apply: 14 [If the New York taxable income is: The tax is:15Not over $8,500 4% of the New York taxable income16Over $8,500 but not over $11,700 $340 plus 4.5% of excess over17$8,50018Over $11,700 but not over $13,900 $484 plus 5.25% of excess over19$11,70020Over $13,900 but not over $80,650 $600 plus 5.73% of excess over21$13,90022Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over23$80,65024Over $215,400 but not over $12,738 plus 6.85% of excess25$1,077,550 over $215,40026Over $1,077,550 but not over $71,796 plus 9.65% of excess over27$5,000,000 $1,077,55028Over $5,000,000 but not over $450,312 plus 10.30% of excess over29$25,000,000 $5,000,00030Over $25,000,000 $2,510,312 plus 10.90% of excess over31$25,000,00032(vii) For taxable years beginning in two thousand twenty-four the33following rates shall apply:34If the New York taxable income is: The tax is:35Not over $8,500 4% of the New York taxable income36Over $8,500 but not over $11,700 $340 plus 4.5% of excess over37$8,50038Over $11,700 but not over $13,900 $484 plus 5.25% of excess over39$11,70040Over $13,900 but not over $80,650 $600 plus 5.61% of excess over41$13,90042Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over43$80,65044Over $215,400 but not over $12,550 plus 6.85% of excess45$1,077,550 over $215,40046Over $1,077,550 but not over $71,608 plus 9.65% of excess over47$5,000,000 $1,077,55048Over $5,000,000 but not over $450,124 plus 10.30% of excess over49$25,000,000 $5,000,00050Over $25,000,000 $2,510,124 plus 10.90% of excess over51$25,000,00052(viii) For taxable years beginning after two thousand twenty-four and53before two thousand twenty-eight the following rates shall apply:]A. 9009--B 8 1 If the New York taxable income is: The tax is: 2 Not over $8,500 4% of the New York taxable income 3 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 4 $8,500 5 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 6 $11,700 7 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 8 $13,900 9 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 10 $80,650 11 Over $215,400 but not over $12,356 plus 6.85% of excess over 12 $1,077,550 $215,400 13 Over $1,077,550 but not over $71,413 plus 9.65% of excess over 14 $5,000,000 $1,077,550 15 Over $5,000,000 but not over $449,929 plus 10.30% of excess over 16 $25,000,000 $5,000,000 17 Over $25,000,000 $2,509,929 plus 10.90% of excess over 18 $25,000,000 19 [(ix)](vii) For taxable years beginning after two thousand twenty-sev- 20 en the following rates shall apply: 21 If the New York taxable income is: The tax is: 22 Not over $8,500 4% of the New York taxable income 23 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 24 $8,500 25 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 26 $11,700 27 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 28 $13,900 29 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess 30 over $80,650 31 Over $215,400 but not over $12,356 plus 6.85% of excess 32 $1,077,550 over $215,400 33 Over $1,077,550 $71,413 plus 8.82% of excess 34 over $1,077,550 35 § 4. This act shall take effect immediately. 36 PART B 37 Section 1. This act enacts into law components of legislation relating 38 to certain tax credits. Each component is wholly contained within a 39 Subpart identified as Subparts A through C. The effective date for each 40 particular provision contained within such Subpart is set forth in the 41 last section of such Subpart. Any provision in any section contained 42 within a Subpart, including the effective date of the Subpart, which 43 makes reference to a section "of this act", when used in connection with 44 that particular component, shall be deemed to mean and refer to the 45 corresponding section of the Subpart in which it is found. Section three 46 of this act sets forth the general effective date of this act. 47 SUBPART A 48 Section 1. Subdivision 1 of section 210-B of the tax law is amended by 49 adding a new paragraph (a-1) to read as follows: 50 (a-1) For a taxpayer that is an eligible farmer, as defined in subdi- 51 vision eleven of this section, the percentage to be used to compute theA. 9009--B 9 1 credit allowed under this subdivision shall be twenty percent for prop- 2 erty described in subparagraph (i) of paragraph (b) of this subdivision 3 that is principally used by the taxpayer in the production of goods by 4 farming, agriculture, horticulture, floriculture or viticulture. 5 § 2. Subsection (a) of section 606 of the tax law is amended by adding 6 a new paragraph 1-a to read as follows: 7 (1-a) For a taxpayer that is an eligible farmer, as defined in 8 subsection (n) of this section, the percentage to be used to compute the 9 credit allowed under this subsection shall be twenty percent for proper- 10 ty described in subparagraph (A) of paragraph two of this subsection 11 that is principally used by the taxpayer in the production of goods by 12 farming, agriculture, horticulture, floriculture or viticulture. 13 § 3. This act shall take effect immediately and apply to property 14 placed in service on or after April 1, 2022. 15 SUBPART B 16 Section 1. Subsection (e) of section 42 of the tax law, as amended by 17 section 1 of part FF of chapter 59 of the laws of 2021, is amended to 18 read as follows: 19 (e) For taxable years beginning on or after January first, two thou- 20 sand seventeen and before January first, two thousand eighteen, the 21 amount of the credit allowed under this section shall be equal to the 22 product of the total number of eligible farm employees and two hundred 23 fifty dollars. For taxable years beginning on or after January first, 24 two thousand eighteen and before January first, two thousand nineteen, 25 the amount of the credit allowed under this section shall be equal to 26 the product of the total number of eligible farm employees and three 27 hundred dollars. For taxable years beginning on or after January first, 28 two thousand nineteen and before January first, two thousand twenty, the 29 amount of the credit allowed under this section shall be equal to the 30 product of the total number of eligible farm employees and five hundred 31 dollars. For taxable years beginning on or after January first, two 32 thousand twenty and before January first, two thousand twenty-one, the 33 amount of the credit allowed under this section shall be equal to the 34 product of the total number of eligible farm employees and four hundred 35 dollars. For taxable years beginning on or after January first, two 36 thousand twenty-one and before January first, two thousand [twenty-five] 37 twenty-six, the amount of the credit allowed under this section shall be 38 equal to the product of the total number of eligible farm employees and 39 [six] twelve hundred dollars. 40 § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending 41 the tax law relating to creating a farm workforce retention credit, as 42 amended by section 2 of part FF of chapter 59 of the laws of 2021, is 43 amended to read as follows: 44 § 5. This act shall take effect immediately and shall apply only to 45 taxable years beginning on or after January 1, 2017 and before January 46 1, [2025] 2026. 47 § 3. This act shall take effect immediately. 48 SUBPART C 49 Section 1. Subdivision (f) of section 42 of the tax law, as added by 50 section 1 of part RR of chapter 60 of the laws of 2016, is amended to 51 read as follows:A. 9009--B 10 1 (f) A taxpayer claiming the credit allowed under this section shall 2 not be allowed to claim any other tax credit allowed under this chapter, 3 except the credit allowed under section forty-two-a of this article, 4 with respect to any eligible farm employee included in the total number 5 of eligible farm employees used to determine the amount of the credit 6 allowed under this section. 7 § 2. The tax law is amended by adding a new section 42-a to read as 8 follows: 9 § 42-a. Farm employer overtime credit. (a) Notwithstanding subdivision 10 (f) of section forty-two of this article, a taxpayer that is a farm 11 employer or an owner of a farm employer shall be eligible for a credit 12 against the tax imposed under article nine-A or twenty-two of this chap- 13 ter, pursuant to the provisions referenced in subdivision (h) of this 14 section. 15 (b) A farm employer is a corporation (including a New York S corpo- 16 ration), a sole proprietorship, a limited liability company or a part- 17 nership that is an eligible farmer. 18 (c) For purposes of this section, the term "eligible farmer" means a 19 taxpayer whose federal gross income from farming as defined in 20 subsection (n) of section six hundred six of this chapter for the taxa- 21 ble year is at least two-thirds of excess federal gross income. Excess 22 federal gross income means the amount of federal gross income from all 23 sources for the taxable year in excess of thirty thousand dollars. For 24 purposes of this section, payments from the state's farmland protection 25 program, administered by the department of agriculture and markets, 26 shall be included as federal gross income from farming for otherwise 27 eligible farmers. 28 (d) An eligible farm employee is an individual who meets the defi- 29 nition of a "farm laborer" under section two of the labor law who is 30 employed by a farm employer in New York state, but excluding general 31 executive officers of the farm employer. 32 (e) Eligible overtime is the aggregate number of hours of work 33 performed during the taxable year by an eligible farm employee that in 34 any calendar week exceeds the overtime work threshold set by the commis- 35 sioner of labor pursuant to the recommendation of the farm laborers wage 36 board, provided that work performed in such calendar week in excess of 37 sixty hours shall not be included. 38 (f) Special rules. If more than fifty percent of such eligible farm- 39 er's federal gross income from farming is from the sale of wine from a 40 licensed farm winery as provided for in article six of the alcoholic 41 beverage control law, or from the sale of cider from a licensed farm 42 cidery as provided for in section fifty-eight-c of the alcoholic bever- 43 age control law, then an eligible farm employee of such eligible farmer 44 shall be included for purposes of calculating the amount of credit 45 allowed under this section only if such eligible farm employee is 46 employed by such eligible farmer on qualified agricultural property as 47 defined in paragraph four of subsection (n) of section six hundred six 48 of this chapter. 49 (g) The amount of the credit allowed under this section shall be equal 50 to the aggregate amount of such credit allowed per eligible farm employ- 51 ee, as follows. The amount of the credit allowed per eligible farm 52 employee shall be equal to the product of (i) the eligible overtime 53 worked during the taxable year by the eligible farm employee and (ii) 54 the overtime rate paid by the farm employer to the eligible farm employ- 55 ee less such employee's regular rate of pay plus any related fringe 56 benefit costs.A. 9009--B 11 1 (h) Advance payment option. (1) For taxable years beginning on or 2 after January first, two thousand twenty-two and thereafter, a taxpayer 3 may choose to use any one or more of quarterly periods (July thirty- 4 first, October thirty-first, January thirty-first or April thirtieth) as 5 the date to calculate their overtime credit based on the eligible over- 6 time threshold ending such date to the extent the overtime rate was paid 7 to eligible employees, as determined by subdivisions (e) and (g) of this 8 section. 9 (2) A taxpayer shall be required to submit the form prescribed by the 10 commissioner, attesting the eligibility of tax credit to the commission- 11 er. 12 (3) A taxpayer must submit such request no later than twenty days 13 immediately following the end of each quarterly period to receive 14 advance payment. For those taxpayers who have requested an advance 15 payment and for whom the commissioner has determined eligible for this 16 credit, the commissioner shall advance a payment of the tax credit 17 allowed to the taxpayer as soon as practicable. The remainder of the 18 credit, if any, shall be reconciled upon filing tax returns due for the 19 taxable year. 20 (i) Cross references: For application of the credit provided in this 21 section, see the following provisions of this chapter: 22 (1) Article 9-A: Section 210-B, subdivision 58. 23 (2) Article 22: Section 606, subsection (nnn). 24 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 25 sion 58 to read as follows: 26 58. Farm employer overtime credit. (a) Allowance of credit. A taxpay- 27 er shall be allowed a credit, to be computed as provided in section 28 forty-two-a of this chapter, against the tax imposed by this article. 29 (b) Application of credit. The credit allowed under this subdivision 30 for any taxable year shall not reduce the tax due for such year to less 31 than the amount prescribed in paragraph (d) of subdivision one of 32 section two hundred ten of this article. However, if the amount of cred- 33 it allowed under this subdivision for any taxable year reduces the tax 34 to such amount or if the taxpayer otherwise pays tax based on the fixed 35 dollar minimum amount, any amount of credit thus not deductible in such 36 taxable year shall be treated as an overpayment of tax to be credited or 37 refunded in accordance with the provisions of section one thousand 38 eighty-six of this chapter. Provided, however, the provisions of 39 subsection (c) of section one thousand eighty-eight of this chapter 40 notwithstanding, no interest shall be paid thereon. 41 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 42 of the tax law is amended by adding a new clause (xlix) to read as 43 follows: 44 (xlix) Farm employer overtime Amount of credit under 45 credit under subsection (nnn) subdivision fifty-eight of 46 section two hundred ten-B 47 § 5. Section 606 of the tax law is amended by adding a new subsection 48 (nnn) to read as follows: 49 (nnn) Farm employer overtime credit. (1) A taxpayer shall be allowed a 50 credit, to be computed as provided in section forty-two-a of this chap- 51 ter, against the tax imposed by this article. 52 (2) Application of credit. If the amount of credit allowed under this 53 subsection for any taxable year exceeds the taxpayer's tax for such 54 year, the excess shall be treated as an overpayment of tax to be credit- 55 ed or refunded in accordance with the provision of section six hundredA. 9009--B 12 1 eighty-six of this article, provided, however, that no interest shall be 2 paid thereon. 3 § 6. This act shall take effect immediately and shall apply to taxable 4 years beginning on or after January 1, 2022. 5 § 2. This act shall take effect immediately provided, however, that 6 the applicable effective date of Subparts A through C of this act shall 7 be as specifically set forth in the last section of such Subparts. 8 PART C 9 Section 1. Paragraph 39 of subsection (c) of section 612 of the tax 10 law, as added by section 1 of part Y of chapter 59 of the laws of 2013, 11 is amended to read as follows: 12 (39) (A) In the case of a taxpayer who is a small business or a 13 taxpayer who is a member, partner, or shareholder of a limited liability 14 company, partnership, or New York S corporation, respectively, that is a 15 small business, who or which has business income and/or farm income as 16 defined in the laws of the United States, an amount equal to [three] 17 fifteen percent of the net items of income, gain, loss and deduction 18 attributable to such business or farm entering into federal adjusted 19 gross income, but not less than zero[, for taxable years beginning after20two thousand thirteen, an amount equal to three and three-quarters21percent of the net items of income, gain, loss and deduction attribut-22able to such business or farm entering into federal adjusted gross23income, but not less than zero, for taxable years beginning after two24thousand fourteen, and an amount equal to five percent of the net items25of income, gain, loss and deduction attributable to such business or26farm entering into federal adjusted gross income, but not less than27zero, for taxable years beginning after two thousand fifteen]. 28 (B) (i) For the purposes of this paragraph, the term small business 29 shall mean: (I) a sole proprietor [or a farm business] who employs one 30 or more persons during the taxable year and who has net business income 31 or net farm income of greater than zero but less than two hundred fifty 32 thousand dollars; 33 (II) a limited liability company, partnership, or New York S corpo- 34 ration that during the taxable year employs one or more persons and has 35 net farm income attributable to a farm business that is greater than 36 zero but less than two hundred fifty thousand dollars; or 37 (III) a limited liability company, partnership, or New York S corpo- 38 ration that during the taxable year employs one or more persons and has 39 New York gross business income attributable to a non-farm business that 40 is greater than zero but less than one million five hundred thousand 41 dollars. 42 (ii) For purposes of this paragraph, the term New York gross business 43 income shall mean: (I) in the case of a limited liability company or a 44 partnership, New York source gross income as defined in subparagraph (B) 45 of paragraph three of subsection (c) of section six hundred fifty-eight 46 of this article; and (II) in the case of a New York S corporation, New 47 York receipts included in the numerator of the apportionment factor 48 determined under section two hundred ten-A of this chapter for the taxa- 49 ble year. 50 (C) To qualify for this modification in relation to a non-farm small 51 business that is a limited liability company, partnership, or New York S 52 corporation, the taxpayer's income attributable to the net business 53 income from its ownership interests in non-farm limited liability compa-A. 9009--B 13 1 nies, partnerships, or New York S corporations must be less than two 2 hundred fifty thousand dollars. 3 § 2. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 4 istrative code of the city of New York, as added by section 2 of part Y 5 of chapter 59 of the laws of 2013, is amended to read as follows: 6 (35) (A) In the case of a taxpayer who is a small business or a 7 taxpayer who is a member, partner, or shareholder of a limited liability 8 company, partnership, or New York S corporation, respectively, that is a 9 small business, who or which has business income and/or farm income as 10 defined in the laws of the United States, an amount equal to [three] 11 fifteen percent of the net items of income, gain, loss and deduction 12 attributable to such business or farm entering into federal adjusted 13 gross income, but not less than zero[, for taxable years beginning after14two thousand thirteen, an amount equal to three and three-quarters15percent of the net items of income, gain, loss and deduction attribut-16able to such business or farm entering into federal adjusted gross17income, but not less than zero, for taxable years beginning after two18thousand fourteen, and an amount equal to five percent of the net items19of income, gain, loss and deduction attributable to such business or20farm entering into federal adjusted gross income, but not less than21zero, for taxable years beginning after two thousand fifteen]. 22 (B) (i) For the purposes of this paragraph, the term small business 23 shall mean: (I) a sole proprietor [or a farm business] who employs one 24 or more persons during the taxable year and who has net business income 25 or net farm income of greater than zero but less than two hundred fifty 26 thousand dollars; 27 (II) a limited liability company, partnership, or New York S corpo- 28 ration that during the taxable year employs one or more persons and has 29 net farm income that is greater than zero but less than two hundred 30 fifty thousand dollars; or 31 (III) a limited liability company, partnership, or New York S corpo- 32 ration that during the taxable year employs one or more persons and has 33 New York gross business income attributable to a non-farm business that 34 is greater than zero but less than one million five hundred thousand 35 dollars. 36 (ii) For purposes of this paragraph, the term New York gross business 37 income shall mean: (I) in the case of a limited liability company or a 38 partnership, New York source gross income as defined in subparagraph (b) 39 or paragraph three of subsection (c) of section six hundred fifty-eight 40 of the tax law, and, (II) in the case of a New York S corporation, New 41 York receipts included in the numerator of the apportionment factor 42 determined under section two hundred ten-A of the tax law for the taxa- 43 ble year. 44 (C) To qualify for this modification in relation to a non-farm small 45 business that is a limited liability company, partnership, or New York S 46 corporation, the taxpayer's income attributable to the net business 47 income from its ownership interests in non-farm limited liability compa- 48 nies, partnerships, or New York S corporations must be less than two 49 hundred fifty thousand dollars. 50 § 3. This act shall take effect immediately and shall apply to taxable 51 years beginning on or after January 1, 2022. 52 PART D 53 Section 1. Subsection (c) of section 612 of the tax law is amended 54 by adding a new paragraph 46 to read as follows:A. 9009--B 14 1 (46) The amount of any student loan forgiveness award made by the 2 state, including any awards made pursuant to a program established under 3 article fourteen of the education law, to the extent included in federal 4 adjusted gross income. 5 § 2. This act shall take effect immediately and shall apply to tax 6 years beginning on or after January 1, 2022. 7 PART E 8 Section 1. The economic development law is amended by adding a new 9 article 26 to read as follows: 10 ARTICLE 26 11 COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM 12 Section 480. Short title. 13 481. Statement of legislative findings and declaration. 14 482. Definitions. 15 483. Eligibility criteria. 16 484. Application and approval process. 17 485. COVID-19 capital costs tax credit. 18 486. Powers and duties of the commissioner. 19 487. Maintenance of records. 20 488. Reporting. 21 489. Cap on tax credit. 22 § 480. Short title. This article shall be known and may be cited as 23 the "COVID-19 capital costs tax credit program act". 24 § 481. Statement of legislative findings and declaration. It is hereby 25 found and declared that New York state needs, as a matter of public 26 policy, to provide critical assistance to small businesses to comply 27 with public health or other emergency orders or regulations, and to take 28 infectious disease mitigation measures related to the COVID-19 pandemic. 29 The COVID-19 capital costs tax credit program is created to provide 30 financial assistance to economically harmed businesses to offer relief 31 and reduce the duration and severity of the current economic difficul- 32 ties. 33 § 482. Definitions. For the purposes of this article: 34 1. "Certificate of tax credit" means the document issued to a business 35 entity by the department after the department has verified that the 36 business entity has met all applicable eligibility criteria in this 37 article. The certificate shall specify the exact amount of the tax cred- 38 it under this article that a business entity may claim, pursuant to 39 section four hundred eighty-five of this article. 40 2. "Commissioner" shall mean commissioner of the department of econom- 41 ic development. 42 3. "Department" shall mean the department of economic development. 43 4. "Qualified COVID-19 capital costs" shall mean costs incurred from 44 January first, two thousand twenty-one through December thirty-first, 45 two thousand twenty-two at a business location in New York state to 46 comply with public health or other emergency orders or regulations 47 related to the COVID-19 pandemic, or to generally increase safety 48 through infectious disease mitigation, including costs for: (i) supplies 49 to disinfect and/or protect against COVID-19 transmission; (ii) restock- 50 ing of perishable goods to replace those lost during the COVID-19 51 pandemic; (iii) physical barriers and sneeze guards; (iv) hand sanitizer 52 stations; (v) respiratory devices such as air purifier systems installed 53 at the business entity's location; (vi) signage related to the COVID-19 54 pandemic including, but not limited to, signage detailing vaccine andA. 9009--B 15 1 masking requirements, and social distancing; (vii) materials required to 2 define and/or protect space such as barriers; (viii) materials needed to 3 block off certain seats to allow for social distancing; (ix) certain 4 point of sale payment equipment to allow for contactless payment; (x) 5 equipment and/or materials and supplies for new product lines in 6 response to the COVID-19 pandemic; (xi) software for online payment 7 platforms to enable delivery or contactless purchases; (xii) building 8 construction and retrofits to accommodate social distancing and instal- 9 lation of air purifying equipment but not for costs for non-COVID-19 10 pandemic related capital renovations or general "closed for renovations" 11 upgrades; (xiii) machinery and equipment to accommodate contactless 12 sales; (xiv) materials to accommodate increased outdoor activity such as 13 heat lamps, outdoor lighting, and materials related to outdoor space 14 expansions; and (xv) other costs as determined by the department to be 15 eligible under this section; provided, however, that "qualified COVID-19 16 capital costs" do not include any cost paid for with other COVID-19 17 grant funds as determined by the commissioner. 18 § 483. Eligibility criteria. 1. To be eligible for a tax credit under 19 the COVID-19 capital costs tax credit program, a business entity must: 20 (a) be a small business as defined in section one hundred thirty-one 21 of this chapter and have two million five hundred thousand dollars or 22 less of gross receipts in the taxable year that includes December thir- 23 ty-first, two thousand twenty-one; and 24 (b) operate a business location in New York state. 25 2. A business entity must be in substantial compliance with any public 26 health or other emergency orders or regulations related to the entity's 27 business sector or other laws and regulations as determined by the 28 commissioner. In addition, a business entity may not owe past due state 29 taxes or local property taxes unless the business entity is making 30 payments and complying with an approved binding payment agreement 31 entered into with the taxing authority. 32 § 484. Application and approval process. 1. A business entity must 33 submit a complete application as prescribed by the commissioner. 34 2. The commissioner shall establish procedures and a timeframe for 35 business entities to submit applications. As part of the application, 36 each business entity must: 37 (a) provide evidence in a form and manner prescribed by the commis- 38 sioner of their business eligibility; 39 (b) agree to allow the department of taxation and finance to share the 40 business entity's tax information with the department. However, any 41 information shared as a result of this program shall not be available 42 for disclosure or inspection under the state freedom of information law; 43 (c) allow the department and its agents access to any and all books 44 and records the department may require to monitor compliance; 45 (d) certify, under penalty of perjury, that it is in substantial 46 compliance with all emergency orders or public health regulations 47 currently required of such entity, and local, and state tax laws; 48 (e) certify, under penalty of perjury, that it did not include any 49 cost paid for with other COVID-19 grant funds as determined by the 50 commissioner in its application for a tax credit under the COVID-19 51 capital costs tax credit program; and 52 (f) agree to provide any additional information required by the 53 department relevant to this article. 54 3. After reviewing a business entity's completed final application and 55 determining that the business entity meets the eligibility criteria asA. 9009--B 16 1 set forth in this article, the department may issue to that business 2 entity a certificate of tax credit. 3 4. The business entity must submit its application by March thirty- 4 first, two thousand twenty-three. 5 § 485. COVID-19 capital costs tax credit. 1. A business entity in the 6 COVID-19 capital costs tax credit program that meets the eligibility 7 requirements of section four hundred eighty-three of this article may be 8 eligible to claim a credit equal to fifty percent of its qualified 9 COVID-19 capital costs as defined in subdivision four of section four 10 hundred eighty-two of this article. 11 2. A business entity, including a partnership, limited liability 12 company and subchapter S corporation, may not receive in excess of twen- 13 ty-five thousand dollars under this program. 14 3. The credit shall be allowed as provided in section forty-seven, 15 subdivision fifty-eight of section two hundred ten-B and subsection 16 (nnn) of section six hundred six of the tax law. 17 4. A business entity may claim the tax credit in the taxable year that 18 includes the date the certificate of tax credit was issued by the 19 department pursuant to subdivision three of section four hundred eight- 20 y-four of this article. 21 § 486. Powers and duties of the commissioner. 1. The commissioner may 22 promulgate regulations establishing an application process and eligibil- 23 ity criteria, that will be applied consistent with the purposes of this 24 article, so as not to exceed the annual cap on tax credits set forth in 25 section four hundred eighty-nine of this article which, notwithstanding 26 any provisions to the contrary in the state administrative procedure 27 act, may be adopted on an emergency basis. 28 2. The commissioner shall, in consultation with the department of 29 taxation and finance, develop a certificate of tax credit that shall be 30 issued by the commissioner to eligible businesses. Such certificate 31 shall contain such information as required by the department of taxation 32 and finance. 33 3. The commissioner shall solely determine the eligibility of any 34 applicant applying for entry into the program and shall remove any busi- 35 ness entity from the program for failing to meet any of the requirements 36 set forth in section four hundred eighty-three of this article, or for 37 failing to meet the requirements set forth in subdivision one of section 38 four hundred eighty-four of this article. 39 § 487. Maintenance of records. Each business entity participating in 40 the program shall keep all relevant records for their duration of 41 program participation for at least three years. 42 § 488. Reporting. Each business entity participating in this program 43 shall submit a performance report to the department at a time prescribed 44 in regulations by the commissioner. The commissioner shall on or before 45 April first, two thousand twenty-three and every quarter thereafter, 46 until program funds are fully expended, submit a report to the governor, 47 the temporary president of the senate, the speaker of the assembly, the 48 chair of the senate finance committee, and the chair of the assembly 49 ways and means committee, setting forth the activities undertaken by the 50 program. Such report shall include, but not necessarily be limited to, 51 the following in each reporting period: total number of participants 52 approved and the economic development region in which the business is 53 located; total amount of payments disbursed and tax credits claimed, and 54 average amount of payments disbursed and tax credits claimed; names of 55 payment recipients and tax credits claimed; and such other information 56 as the commissioner determines necessary and appropriate to effectuateA. 9009--B 17 1 the purpose of the program. Such reports shall, at the same time, be 2 included on the department's website and any other publicly accessible 3 database that lists economic development programs as determined by the 4 department. 5 § 489. Cap on tax credit. The total amount of tax credits listed on 6 certificates of tax credit issued by the commissioner pursuant to this 7 article may not exceed two hundred fifty million dollars. 8 § 2. The tax law is amended by adding a new section 47 to read as 9 follows: 10 § 47. COVID-19 capital costs tax credit. (a) Allowance of credit. A 11 taxpayer subject to tax under article nine-A or twenty-two of this chap- 12 ter shall be allowed a credit against such tax, pursuant to the 13 provisions referenced in subdivision (f) of this section. The amount of 14 the credit is equal to the amount determined pursuant to section four 15 hundred eighty-five of the economic development law. No cost or expense 16 paid or incurred by the taxpayer which is included as part of the calcu- 17 lation of this credit shall be the basis of any other tax credit allowed 18 under this chapter. 19 (b) Eligibility. To be eligible for the COVID-19 capital costs tax 20 credit, the taxpayer shall have been issued a certificate of tax credit 21 by the department of economic development pursuant to subdivision three 22 of section four hundred eighty-four of the economic development law, 23 which certificate shall set forth the amount of the credit that may be 24 claimed for the taxable year. The taxpayer shall be allowed to claim 25 only the amount listed on the certificate of tax credit for that taxable 26 year. A taxpayer that is a partner in a partnership, member of a limited 27 liability company or shareholder in a subchapter S corporation that has 28 received a certificate of tax credit shall be allowed its pro rata share 29 of the credit earned by the partnership, limited liability company or 30 subchapter S corporation. 31 (c) Tax return requirement. The taxpayer shall be required to attach 32 to its tax return in the form prescribed by the commissioner, proof of 33 receipt of its certificate of tax credit issued by the commissioner of 34 the department of economic development. 35 (d) Information sharing. Notwithstanding any provision of this chap- 36 ter, employees of the department of economic development and the depart- 37 ment shall be allowed and are directed to share and exchange: 38 (1) information derived from tax returns or reports that is relevant 39 to a taxpayer's eligibility to participate in the COVID-19 capital costs 40 tax credit program; 41 (2) information regarding the credit applied for, allowed or claimed 42 pursuant to this section and taxpayers that are applying for the credit 43 or that are claiming the credit; and 44 (3) information contained in or derived from credit claim forms 45 submitted to the department and applications for admission into the 46 COVID-19 capital costs tax credit program. Except as provided in para- 47 graph two of this subdivision, all information exchanged between the 48 department of economic development and the department shall not be 49 subject to disclosure or inspection under the state's freedom of infor- 50 mation law. 51 (e) Credit recapture. If a certificate of tax credit issued by the 52 department of economic development under article twenty-six of the 53 economic development law is revoked by such department, the amount of 54 credit described in this section and claimed by the taxpayer prior to 55 that revocation shall be added back to tax in the taxable year in which 56 any such revocation becomes final.A. 9009--B 18 1 (f) Cross references. For application of the credit provided for in 2 this section, see the following provisions of this chapter: 3 (1) article 9-A: section 210-B, subdivision 58; 4 (2) article 22: section 606, subsection (nnn). 5 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 6 sion 58 to read as follows: 7 58. COVID-19 capital costs tax credit. (a) Allowance of credit. A 8 taxpayer shall be allowed a credit, to be computed as provided in 9 section forty-seven of this chapter, against the taxes imposed by this 10 article. 11 (b) Application of credit. The credit allowed under this subdivision 12 for the taxable year shall not reduce the tax due for such year to less 13 than the amount prescribed in paragraph (d) of subdivision one of 14 section two hundred ten of this article. However, if the amount of cred- 15 it allowed under this subdivision for the taxable year reduces the tax 16 to such amount or if the taxpayer otherwise pays tax based on the fixed 17 dollar minimum amount, any amount of credit thus not deductible in such 18 taxable year shall be treated as an overpayment of tax to be credited or 19 refunded in accordance with the provisions of section one thousand 20 eighty-six of this chapter. Provided, however, the provisions of 21 subsection (c) of section one thousand eighty-eight of this chapter 22 notwithstanding, no interest will be paid thereon. 23 § 4. Section 606 of the tax law is amended by adding a new subsection 24 (nnn) to read as follows: 25 (nnn) COVID-19 capital costs tax credit. (1) Allowance of credit. A 26 taxpayer shall be allowed a credit, to be computed as provided in 27 section forty-seven of this chapter, against the tax imposed by this 28 article. 29 (2) Application of credit. If the amount of the credit allowed under 30 this subsection for the taxable year exceeds the taxpayer's tax for such 31 year, the excess shall be treated as an overpayment of tax to be credit- 32 ed or refunded in accordance with the provisions of section six hundred 33 eighty-six of this article, provided, however, that no interest will be 34 paid thereon. 35 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 36 of the tax law is amended by adding a new clause (xlix) to read as 37 follows: 38 (xlix) COVID-19 capital costs Amount of credit under 39 tax credit under subsection (nnn) subdivision 58 of 40 section two hundred ten-B 41 § 6. This act shall take effect immediately. 42 PART F 43 Section 1. Paragraph 2 of subdivision (a) of section 24-c of the tax 44 law, as added by section 1 of subpart B of part PP of chapter 59 of the 45 laws of 2021, is amended to read as follows: 46 (2) The amount of the credit shall be the product (or pro rata share 47 of the product, in the case of a member of a partnership) of twenty-five 48 percent and the sum of the qualified production expenditures paid for 49 during the qualified New York city musical and theatrical production's 50 credit period. Provided however that the amount of the credit cannot 51 exceed three million dollars per qualified New York city musical and 52 theatrical production for productions whose first performance is [during53the first year in which applications are accepted] prior to January 54 first, two thousand twenty-three. For productions whose first perform-A. 9009--B 19 1 ance is [during the second year in which applications are accepted] on 2 or after January first, two thousand twenty-three, such cap shall 3 decrease to one million five hundred thousand dollars per qualified New 4 York city musical and theatrical production unless the New York city 5 tourism economy has not sufficiently recovered, as determined by the 6 department of economic development in consultation with the division of 7 the budget. In determining whether the New York city tourism economy has 8 sufficiently recovered, the department of economic development will 9 perform an analysis of key New York city economic indicators which shall 10 include, but not be limited to, hotel occupancy rates and travel 11 metrics. The department of economic development's analysis shall also be 12 informed by the status of any remaining COVID-19 restrictions affecting 13 New York city musical and theatrical productions. In no event shall a 14 qualified New York city musical and theatrical production be eligible 15 for more than one credit under this program. 16 § 2. Section 24-c of the tax law is amended by adding a new subdivi- 17 sion (h) to read as follows: 18 (h) Recapture. In addition to any other requirements under this 19 section, any qualified New York city musical and theatrical production 20 company that performs in a qualified New York city production facility 21 and applied to receive a credit under this section shall be required: 22 (1) to have extended an offer of re-employment to all employees at 23 substantially similar rates of pay and benefits to such rates and bene- 24 fits that were previously provided during the first week of March, two 25 thousand twenty if such production was performed prior to March twelfth, 26 two thousand twenty; or (2) if such production was not performed in a 27 qualified New York city production facility prior to March twelfth, two 28 thousand twenty, such production company shall provide all employees 29 providing services for such production with no less than the terms and 30 conditions of employment, including rates of pay and benefits, that were 31 provided to employees for similar work during the first week of March, 32 two thousand twenty. If such production company has failed and/or fails 33 to extend substantially similar terms and conditions to all employees 34 providing services, the credit allowed under paragraph two of subdivi- 35 sion (a) of this section shall be reduced by a fraction which shall be 36 computed as follows: the numerator is the number of employees who have 37 not received the similar terms and conditions at any time during the 38 credit period under paragraph four of subdivision (b) and the denomina- 39 tor is the total number of employees providing such services during such 40 period. 41 § 3. Subparagraph (i) of paragraph 5 of subdivision (b) of section 42 24-c of the tax law, as added by section 1 of subpart B of part PP of 43 chapter 59 of the laws of 2021, is amended to read as follows: 44 (i) "The credit period of a qualified New York city musical and theat- 45 rical production company" is the period starting on the production start 46 date and ending on the earlier of the date the qualified musical and 47 theatrical production has expended sufficient qualified production 48 expenditures to reach its credit cap, [March thirty-first] September 49 thirtieth, two thousand twenty-three or the date the qualified musical 50 and theatrical production closes. 51 § 4. Paragraph 1 of subdivision (f) of section 24-c of the tax law, as 52 added by section 1 of subpart B of part PP of chapter 59 of the laws of 53 2021, is amended to read as follows: 54 (1) The aggregate amount of tax credits allowed under this section, 55 subdivision fifty-seven of section two hundred ten-B and subsection 56 (mmm) of section six hundred six of this chapter shall be [one] twoA. 9009--B 20 1 hundred million dollars. Such aggregate amount of credits shall be allo- 2 cated by the department of economic development among taxpayers based on 3 the date of first performance of the qualified musical and theatrical 4 production. 5 § 5. Paragraph 2 of subdivision (f) of section 24-c of the tax law, as 6 added by section 1 of subpart B of part PP of chapter 59 of the laws of 7 2021, is amended to read as follows: 8 (2) The commissioner of economic development, after consulting with 9 the commissioner, shall promulgate regulations to establish procedures 10 for the allocation of tax credits as required by this section. Such 11 rules and regulations shall include provisions describing the applica- 12 tion process, the due dates for such applications, the standards that 13 will be used to evaluate the applications, the documentation that will 14 be provided by applicants to substantiate to the department the amount 15 of qualified production expenditures of such applicants, and such other 16 provisions as deemed necessary and appropriate. Notwithstanding any 17 other provisions to the contrary in the state administrative procedure 18 act, such rules and regulations may be adopted on an emergency basis. In 19 no event shall a qualified New York city musical and theatrical 20 production submit an application for this program after [December thir-21ty-first, two thousand twenty-two] June thirtieth, two thousand twenty- 22 three. 23 § 6. Subdivision (g) of section 24-c of the tax law, as added by 24 section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is 25 amended to read as follows: 26 (g) Any qualified New York city musical and theatrical production 27 company that performs in a qualified New York city production facility 28 and applies to receive a credit under this section shall be required to: 29 (1) participate in a New York state diversity and arts job training 30 program; (2) create and implement a plan to ensure that their production 31 is available and accessible for low-or no-cost to low income New York- 32 ers; and (3) contribute to the New York state council on the arts, 33 cultural program fund an amount up to fifty percent of the total credits 34 received if its production earns ongoing revenue prospectively after the 35 end of the credit period that is at least equal to two hundred percent 36 of its ongoing production costs, with such amount payable from twenty- 37 five percent of net operating profits, such amounts payable on a monthly 38 basis, up until such fifty percent of the total credit amount is 39 reached. Any funds deposited pursuant to this subdivision may be used 40 for arts and cultural educational and workforce development grant 41 programs of the New York state council on the arts. 42 § 7. Subdivision 5 of section 99-ll of the state finance law, as added 43 by section 5 of subpart B of part PP of chapter 59 of the laws of 2021, 44 is amended to read as follows: 45 5. The moneys in such fund shall be expended for the purpose of 46 supplementing art and cultural grant programs of the New York state 47 council on the arts for secondary and elementary children, including 48 programs that increase access to art and cultural programs and events 49 for children in underserved communities. 50 § 8. Section 6 of subpart B of part PP of chapter 59 of the laws of 51 2021 amending the tax law and the state finance law relating to estab- 52 lishing the New York city musical and theatrical production tax credit 53 and establishing the New York state council on the arts cultural program 54 fund, is amended to read as follows: 55 § 6. This act shall take effect immediately and shall apply to taxable 56 years beginning on or after January 1, 2021, and before January 1, 2024A. 9009--B 21 1 and shall expire and be deemed repealed [on] January 1, 2024; provided, 2 however that the obligations under paragraph 3 of subdivision [g] (g) of 3 section 24-c of the tax law, as added by section one of this act, shall 4 remain in effect until December 31, 2025. 5 § 9. This act shall take effect immediately; provided that the amend- 6 ments to section 24-c of the tax law and section 99-11 of the state 7 finance law made by sections one, two, three, four, five, six, and seven 8 of this act shall not affect the repeal of such sections and shall be 9 deemed repealed therewith. 10 PART G 11 Section 1. Paragraph (a) of subdivision 1 of section 209-b of the tax 12 law, as amended by section 7 of part A of chapter 59 of the laws of 13 2014, is amended to read as follows: 14 (a) For the privilege of exercising its corporate franchise, or of 15 doing business, or of employing capital, or of owning or leasing proper- 16 ty in a corporate or organized capacity, or of maintaining an office, or 17 of deriving receipts from activity in the metropolitan commuter trans- 18 portation district, for all or any part of its taxable year, there is 19 hereby imposed on every corporation, other than a New York S corpo- 20 ration, subject to tax under section two hundred nine of this article, 21 or any receiver, referee, trustee, assignee or other fiduciary, or any 22 officer or agent appointed by any court, who conducts the business of 23 any such corporation, a tax surcharge, in addition to the tax imposed 24 under section two hundred nine of this article, to be computed at the 25 rate of seventeen percent of the tax imposed under such section for such 26 taxable years or any part of such taxable years ending on or after 27 December thirty-first, nineteen hundred eighty-three and before January 28 first, two thousand fifteen after the deduction of any credits otherwise 29 allowable under this article, at the rate of twenty-five and six-tenths 30 percent of the tax imposed under such section for taxable years begin- 31 ning on or after January first, two thousand fifteen and before January 32 first, two thousand sixteen before the deduction of any credits other- 33 wise allowable under this article, [and] at the rate determined by the 34 commissioner pursuant to paragraph (f) of this subdivision of the tax 35 imposed under such section, for taxable years beginning on or after 36 January first, two thousand sixteen and before January first, two thou- 37 sand twenty-three before the deduction of any credits otherwise allow- 38 able under this article, and at the rate of no less than thirty percent 39 of the tax imposed under such section for taxable years beginning on or 40 after January first, two thousand twenty-three before the deduction of 41 any credits otherwise allowable under this article. However, such rate 42 of tax surcharge shall be applied only to that portion of the tax 43 imposed under section two hundred nine of this article before the 44 deduction of any credits otherwise allowable under this article which is 45 attributable to the taxpayer's business activity carried on within the 46 metropolitan commuter transportation district; and provided, further, 47 the surcharge computed on a combined report shall include a surcharge on 48 the fixed dollar minimum tax for each member of the combined group 49 subject to the surcharge under this subdivision. 50 § 2. This act shall take effect immediately. 51 PART HA. 9009--B 22 1 Section 1. Paragraphs (a), (b) and (d) of subdivision 29 of section 2 210-B of the tax law, paragraph (a) and subparagraph 2 of paragraph (b) 3 as amended by section 1 of part II of chapter 59 of the laws of 2021, 4 paragraph (b) as amended by section 1 of part Q of chapter 59 of the 5 laws of 2018, subparagraph 1 of paragraph (b) as amended by chapter 490 6 of the laws of 2019 and paragraph (d) as added by section 17 of part A 7 of chapter 59 of the laws of 2014, are amended to read as follows: 8 (a) Allowance of credit. For taxable years beginning on or after Janu- 9 ary first, two thousand fifteen and before January first, two thousand 10 [twenty-three] twenty-six, a taxpayer shall be allowed a credit, to be 11 computed as provided in this subdivision, against the tax imposed by 12 this article, for hiring and employing, for not less than [one year and13for not less than thirty-five hours each week] twelve continuous and 14 uninterrupted months (hereinafter referred to as the twelve-month peri- 15 od) in a full-time or part-time position, a qualified veteran within the 16 state. The taxpayer may claim the credit in the year in which the qual- 17 ified veteran completes [one year] the twelve-month period of employment 18 by the taxpayer. If the taxpayer claims the credit allowed under this 19 subdivision, the taxpayer may not use the hiring of a qualified veteran 20 that is the basis for this credit in the basis of any other credit 21 allowed under this article. 22 (b) Qualified veteran. A qualified veteran is an individual: 23 (1) who served on active duty in the United States army, navy, air 24 force, space force, marine corps, coast guard or the reserves thereof, 25 or who served in active military service of the United States as a 26 member of the army national guard, air national guard, New York guard or 27 New York naval militia, or who served in the active uniformed services 28 of the United States as a member of the commissioned corps of the 29 national oceanic and atmospheric administration or the commissioned 30 corps of the United States public health service; who (i) was released 31 from active duty by general or honorable discharge [after September32eleventh, two thousand one], or (ii) has a qualifying condition, as 33 defined in section three hundred fifty of the executive law, and has 34 received a discharge other than bad conduct or dishonorable from such 35 service [after September eleventh, two thousand one], or (iii) is a 36 discharged LGBT veteran, as defined in section three hundred fifty of 37 the executive law, and has received a discharge other than bad conduct 38 or dishonorable from such service [after September eleventh, two thou-39sand one]; 40 (2) who commences employment by the qualified taxpayer on or after 41 January first, two thousand fourteen, and before January first, two 42 thousand [twenty-two] twenty-five; and 43 (3) who certifies by signed affidavit, under penalty of perjury, that 44 he or she has not been employed for thirty-five or more hours during any 45 week in the one hundred eighty day period immediately prior to his or 46 her employment by the taxpayer. 47 (d) Amount of credit. The amount of the credit shall be [ten] fifteen 48 percent of the total amount of wages paid to the qualified veteran 49 during the veteran's first [full year] twelve-month period of employ- 50 ment. Provided, however, that, if the qualified veteran is a disabled 51 veteran, as defined in paragraph (b) of subdivision one of section 52 eighty-five of the civil service law, the amount of the credit shall be 53 [fifteen] twenty percent of the total amount of wages paid to the quali- 54 fied veteran during the veteran's first [full year] twelve-month period 55 of employment. The credit allowed pursuant to this subdivision shall not 56 exceed in any taxable year, [five] fifteen thousand dollars for anyA. 9009--B 23 1 qualified veteran [and fifteen] employed in a full-time position for one 2 thousand eight hundred twenty or more hours in one twelve-month period, 3 twenty thousand dollars for any qualified veteran who is a disabled 4 veteran employed in a full-time position for one thousand eight hundred 5 twenty or more hours in one twelve-month period, seven thousand five 6 hundred dollars for any qualified veteran employed in a part-time posi- 7 tion for at least one thousand forty hours but not more than one thou- 8 sand eight hundred nineteen hours in one twelve-month period, and ten 9 thousand dollars for any qualified veteran who is a disabled veteran 10 employed in a part-time position for at least one thousand forty hours 11 but not more than one thousand eight hundred nineteen hours in one 12 twelve-month period. 13 § 2. Paragraphs 1, 2 and 4 of subsection (a-2) of section 606 of the 14 tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by 15 section 2 of part II of chapter 59 of the laws of 2021, paragraph 2 as 16 amended by section 2 of part Q of chapter 59 of the laws of 2018, 17 subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 18 2019 and paragraph 4 as added by section 3 of part AA of chapter 59 of 19 the laws of 2013, are amended to read as follows: 20 (1) Allowance of credit. For taxable years beginning on or after Janu- 21 ary first, two thousand fifteen and before January first, two thousand 22 [twenty-three] twenty-six, a taxpayer shall be allowed a credit, to be 23 computed as provided in this subsection, against the tax imposed by this 24 article, for hiring and employing, for not less than [one year and for25not less than thirty-five hours each week] twelve continuous and unin- 26 terrupted months (hereinafter referred to as the twelve-month period) in 27 a full-time or part-time position, a qualified veteran within the state. 28 The taxpayer may claim the credit in the year in which the qualified 29 veteran completes [one year] the twelve-month period of employment by 30 the taxpayer. If the taxpayer claims the credit allowed under this 31 subsection, the taxpayer may not use the hiring of a qualified veteran 32 that is the basis for this credit in the basis of any other credit 33 allowed under this article. 34 (2) Qualified veteran. A qualified veteran is an individual: 35 (A) who served on active duty in the United States army, navy, air 36 force, space force, marine corps, coast guard or the reserves thereof, 37 or who served in active military service of the United States as a 38 member of the army national guard, air national guard, New York guard or 39 New York naval militia, or who served in the active uniformed services 40 of the United States as a member of the commissioned corps of the 41 national oceanic and atmospheric administration or the commissioned 42 corps of the United States public health service; who (i) was released 43 from active duty by general or honorable discharge [after September44eleventh, two thousand one], or (ii) has a qualifying condition, as 45 defined in section three hundred fifty of the executive law, and has 46 received a discharge other than bad conduct or dishonorable from such 47 service [after September eleventh, two thousand one], or (iii) is a 48 discharged LGBT veteran, as defined in section three hundred fifty of 49 the executive law, and has received a discharge other than bad conduct 50 or dishonorable from such service [after September eleventh, two thou-51sand one]; 52 (B) who commences employment by the qualified taxpayer on or after 53 January first, two thousand fourteen, and before January first, two 54 thousand [twenty-two] twenty-five; and 55 (C) who certifies by signed affidavit, under penalty of perjury, that 56 he or she has not been employed for thirty-five or more hours during anyA. 9009--B 24 1 week in the one hundred eighty day period immediately prior to his or 2 her employment by the taxpayer. 3 (4) Amount of credit. The amount of the credit shall be [ten] fifteen 4 percent of the total amount of wages paid to [he] the qualified veteran 5 during the veteran's first [full year] twelve-month period of employ- 6 ment. Provided, however, that, if the qualified veteran is a disabled 7 veteran, as defined in paragraph (b) of subdivision one of section 8 eighty-five of the civil service law, the amount of the credit shall be 9 [fifteen] twenty percent of the total amount of wages paid to the quali- 10 fied veteran during the veteran's first [full year] twelve-month period 11 of employment. The credit allowed pursuant to this subsection shall not 12 exceed in any taxable year, [five] fifteen thousand dollars for any 13 qualified veteran [and fifteen] employed in a full-time position for one 14 thousand eight hundred twenty or more hours in one twelve-month period, 15 twenty thousand dollars for any qualified veteran who is a disabled 16 veteran employed in a full-time position for one thousand eight hundred 17 twenty or more hours in one twelve-month period, seven thousand five 18 hundred dollars for any qualified veteran employed in a part-time posi- 19 tion for at least one thousand forty hours but not more than one thou- 20 sand eight hundred nineteen hours in one twelve-month period, and ten 21 thousand dollars for any qualified veteran who is a disabled veteran 22 employed in a part-time position for at least one thousand forty hours 23 but not more than one thousand eight hundred nineteen hours in one 24 twelve-month period. 25 § 3. Paragraphs 1, 2 and 4 of subdivision (g-1) of section 1511 of the 26 tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by 27 section 3 of part II of chapter 59 of the laws of 2021, paragraph 2 as 28 amended by section 3 of part Q of chapter 59 of the laws of 2018, 29 subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 30 2019 and paragraph 4 as added by section 5 of part AA of chapter 59 of 31 the laws of 2013, are amended to read as follows: 32 (1) Allowance of credit. For taxable years beginning on or after Janu- 33 ary first, two thousand fifteen and before January first, two thousand 34 [twenty-three] twenty-six, a taxpayer shall be allowed a credit, to be 35 computed as provided in this subdivision, against the tax imposed by 36 this article, for hiring and employing, for not less than [one year and37for not less than thirty-five hours each week] twelve continuous and 38 uninterrupted months (hereinafter referred to as the twelve-month peri- 39 od) in a full-time or part-time position, a qualified veteran within the 40 state. The taxpayer may claim the credit in the year in which the qual- 41 ified veteran completes [one year] the twelve-month period of employment 42 by the taxpayer. If the taxpayer claims the credit allowed under this 43 subdivision, the taxpayer may not use the hiring of a qualified veteran 44 that is the basis for this credit in the basis of any other credit 45 allowed under this article. 46 (2) Qualified veteran. A qualified veteran is an individual: 47 (A) who served on active duty in the United States army, navy, air 48 force, space force, marine corps, coast guard or the reserves thereof, 49 or who served in active military service of the United States as a 50 member of the army national guard, air national guard, New York guard or 51 New York naval militia, or who served in the active uniformed services 52 of the United States as a member of the commissioned corps of the 53 national oceanic and atmospheric administration or the commissioned 54 corps of the United States public health service; who (i) was released 55 from active duty by general or honorable discharge [after September56eleventh, two thousand one], or (ii) has a qualifying condition, asA. 9009--B 25 1 defined in section three hundred fifty of the executive law, and has 2 received a discharge other than bad conduct or dishonorable from such 3 service [after September eleventh, two thousand one], or (iii) is a 4 discharged LGBT veteran, as defined in section three hundred fifty of 5 the executive law, and has received a discharge other than bad conduct 6 or dishonorable from such service [after September eleventh, two thou-7sand one]; 8 (B) who commences employment by the qualified taxpayer on or after 9 January first, two thousand fourteen, and before January first, two 10 thousand [twenty-two] twenty-five; and 11 (C) who certifies by signed affidavit, under penalty of perjury, that 12 he or she has not been employed for thirty-five or more hours during any 13 week in the one hundred eighty day period immediately prior to his or 14 her employment by the taxpayer. 15 (4) Amount of credit. The amount of the credit shall be [ten] fifteen 16 percent of the total amount of wages paid to the qualified veteran 17 during the veteran's first [full year] twelve-month period of employ- 18 ment. Provided, however, that, if the qualified veteran is a disabled 19 veteran, as defined in paragraph (b) of subdivision one of section 20 eighty-five of the civil service law, the amount of the credit shall be 21 [fifteen] twenty percent of the total amount of wages paid to the quali- 22 fied veteran during the veteran's first [full year] twelve-month period 23 of employment. The credit allowed pursuant to this subdivision shall not 24 exceed in any taxable year, [five] fifteen thousand dollars for any 25 qualified veteran [and fifteen] employed in a full-time position for one 26 thousand eight hundred twenty or more hours in one twelve-month period, 27 twenty thousand dollars for any qualified veteran who is a disabled 28 veteran employed in a full-time position for one thousand eight hundred 29 twenty or more hours in one twelve-month period, seven thousand five 30 hundred dollars for any qualified veteran employed in a part-time posi- 31 tion for at least one thousand forty hours but not more than one thou- 32 sand eight hundred nineteen hours in one twelve-month period, and ten 33 thousand dollars for any qualified veteran who is a disabled veteran 34 employed in a part-time position for at least one thousand forty hours 35 but not more than one thousand eight hundred nineteen hours in one 36 twelve-month period. 37 § 4. This act shall take effect immediately and shall apply to taxable 38 years beginning on or after January 1, 2022. 39 PART I 40 Section 1. The tax law is amended by adding a new section 47 to read 41 as follows: 42 § 47. Grade no. 6 heating oil conversion tax credit. (a) (1) Allowance 43 of credit. A taxpayer that meets the eligibility requirements of subdi- 44 vision (b) of this section and is subject to tax under article nine-A or 45 twenty-two of this chapter may be eligible to claim a grade no. 6 heat- 46 ing oil conversion tax credit in the taxable year the conversion is 47 complete. The credit shall be equal to fifty percent of the conversion 48 costs for all of the taxpayer's buildings located in a municipality paid 49 by such taxpayer on or after January first, two thousand twenty-two and 50 before July first, two thousand twenty-three. The credit cannot exceed 51 five hundred thousand dollars per municipality. 52 (2) A taxpayer that is a partner in a partnership, member of a limited 53 liability company or shareholder in a subchapter S corporation shall be 54 allowed its pro rata share of the credit earned by the partnership,A. 9009--B 26 1 limited liability company or subchapter S corporation that meets the 2 eligibility criteria described in subdivision (b) of this section to 3 claim a grade no. 6 heating oil conversion tax credit. In no event may 4 the total amount of the credit earned by the partnership, limited 5 liability company or subchapter S corporation exceed five hundred thou- 6 sand dollars for all buildings located in a municipality. 7 (3) No cost or expense paid or incurred by the taxpayer that is 8 included as part of the calculation of this credit shall be the basis of 9 any other tax credit allowed under this chapter. 10 (b) Eligibility criteria. (1) To be eligible to claim a grade no. 6 11 heating oil conversion tax credit, a business entity must: 12 (i) incur expenses for the conversion from grade no. 6 heating oil 13 fuel, as described as "conversion costs" in paragraph (1) of subdivision 14 (c) of this section, to biodiesel heating oil or a geothermal system at 15 any building located in New York state outside the city of New York; 16 (ii) submit an application to and obtain approval of such application 17 by the New York state energy research and development authority describ- 18 ing the conversion and approved costs to complete such conversion; 19 (iii) not be principally engaged in the generation or distribution of 20 electricity, power or energy; 21 (iv) be in compliance with all environmental conservation laws and 22 regulations; and 23 (v) not owe past due state taxes unless the business entity is making 24 payments and complying with an approved binding payment agreement 25 entered into with the taxing authority. 26 (c) Definitions. As used in this section the following terms shall 27 have the following meanings: 28 (1) Conversion costs means the equipment and labor costs associated 29 with the design, installation and use of space heating and other energy 30 conversion systems that are designed to or accommodate the use of biod- 31 iesel fuel or a geothermal system and, at the option of the taxpayer, 32 the costs of completing an ASHRAE level 2 energy audit including assess- 33 ment of electrification options. 34 (2) Biodiesel means a minimum blend of eighty-five (85) percent biod- 35 iesel, defined as fuel manufactured from vegetable oils, animal fats, or 36 other agricultural or other products or by-products, with petrodiesel 37 fuel commonly used for heating systems. 38 (3) Geothermal means a system that uses the ground or ground water as 39 a thermal energy source/sink to heat or cool a building or provide hot 40 water within the building. 41 (4) Municipality, for purposes of this section, means a city or town. 42 (d) The commissioner, in consultation with the New York state energy 43 research and development authority, will develop an application process 44 to certify the expenses necessary for the conversion and a taxpayer will 45 not be eligible to claim the credit unless it has completed that appli- 46 cation process and the application has been approved by the New York 47 state energy research and development authority. 48 (e) Information sharing. The department, the department of environ- 49 mental conservation and the New York state energy research and develop- 50 ment authority shall be allowed and are directed to share and exchange 51 information regarding the information contained on the credit applica- 52 tion for claiming the grade no. 6 heating oil conversion tax credit and 53 such information exchanged between the department, the department of 54 environmental conservation and the New York state energy research and 55 development authority shall not be subject to disclosure or inspection 56 under the state's freedom of information law.A. 9009--B 27 1 (f) Cross references. For application of the credit provided for in 2 this section, see the following provisions of this chapter: 3 (1) article 9-A: section 210-B, subdivision 58; 4 (2) article 22: section 606, subsection (nnn). 5 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 6 sion 58 to read as follows: 7 58. Grade no. 6 heating oil conversion tax credit. (a) Allowance of 8 credit. A taxpayer will be allowed a credit, to be computed as provided 9 in section forty-seven of this chapter, against the taxes imposed by 10 this article. 11 (b) Application of credit. The credit allowed under this subdivision 12 for the taxable year will not reduce the tax due for such year to less 13 than the amount prescribed in paragraph (d) of subdivision one of 14 section two hundred ten of this article. However, if the amount of cred- 15 it allowed under this subdivision for the taxable year reduces the tax 16 to such amount or if the taxpayer otherwise pays tax based on the fixed 17 dollar minimum amount, any amount of credit not deductible in such taxa- 18 ble year will be treated as an overpayment of tax to be credited or 19 refunded in accordance with the provisions of section one thousand 20 eighty-six of this chapter. Provided, however, the provisions of 21 subsection (c) of section one thousand eighty-eight of this chapter 22 notwithstanding, no interest will be paid thereon. 23 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 24 of the tax law is amended by adding a new clause (xlix) to read as 25 follows: 26 (xlix) Grade no. 6 heating oil Amount of credit under subdivision 27 conversion tax credit under fifty-eight of section two hundred 28 subsection (nnn) ten-B 29 § 4. Section 606 of the tax law is amended by adding a new subsection 30 (nnn) to read as follows: 31 (nnn) Grade no. 6 heating oil conversion tax credit. (1) Allowance of 32 credit. A taxpayer shall be allowed a credit, to be computed as provided 33 in section forty-seven of this chapter, against the tax imposed by this 34 article. 35 (2) Application of credit. If the amount of the credit allowed under 36 this subsection for the taxable year exceeds the taxpayer's tax for such 37 year, the excess will be treated as an overpayment of tax to be credited 38 or refunded in accordance with the provisions of section six hundred 39 eighty-six of this article, provided, however, that no interest will be 40 paid thereon. 41 § 5. This act shall take effect immediately and shall apply to taxable 42 years beginning on or after January 1, 2022. 43 PART J 44 Section 1. Subdivision 4 of section 22 of the public housing law, as 45 amended by section 2 of part GG of chapter 59 of the laws of 2021, is 46 amended to read as follows: 47 4. Statewide limitation. The aggregate dollar amount of credit which 48 the commissioner may allocate to eligible low-income buildings under 49 this article shall be one hundred [twenty] twenty-seven million dollars. 50 The limitation provided by this subdivision applies only to allocation 51 of the aggregate dollar amount of credit by the commissioner, and does 52 not apply to allowance to a taxpayer of the credit with respect to an 53 eligible low-income building for each year of the credit period.A. 9009--B 28 1 § 2. Subdivision 4 of section 22 of the public housing law, as 2 amended by section 3 of part GG of chapter 59 of the laws of 2021, is 3 amended to read as follows: 4 4. Statewide limitation. The aggregate dollar amount of credit which 5 the commissioner may allocate to eligible low-income buildings under 6 this article shall be one hundred [twenty-eight] forty-two million 7 dollars. The limitation provided by this subdivision applies only to 8 allocation of the aggregate dollar amount of credit by the commissioner, 9 and does not apply to allowance to a taxpayer of the credit with respect 10 to an eligible low-income building for each year of the credit period. 11 § 3. Subdivision 4 of section 22 of the public housing law, as amended 12 by section 4 of part GG of chapter 59 of the laws of 2021, is amended to 13 read as follows: 14 4. Statewide limitation. The aggregate dollar amount of credit which 15 the commissioner may allocate to eligible low-income buildings under 16 this article shall be one hundred [thirty-six] fifty-seven million 17 dollars. The limitation provided by this subdivision applies only to 18 allocation of the aggregate dollar amount of credit by the commissioner, 19 and does not apply to allowance to a taxpayer of the credit with respect 20 to an eligible low-income building for each year of the credit period. 21 § 4. Subdivision 4 of section 22 of the public housing law, as amended 22 by section 5 of part GG of chapter 59 of the laws of 2021, is amended to 23 read as follows: 24 4. Statewide limitation. The aggregate dollar amount of credit which 25 the commissioner may allocate to eligible low-income buildings under 26 this article shall be one hundred [forty-four] seventy-two million 27 dollars. The limitation provided by this subdivision applies only to 28 allocation of the aggregate dollar amount of credit by the commissioner, 29 and does not apply to allowance to a taxpayer of the credit with respect 30 to an eligible low-income building for each year of the credit period. 31 § 5. This act shall take effect immediately; provided, however, 32 section one of this act shall take effect April 1, 2022; section two of 33 this act shall take effect April 1, 2023; section three of this act 34 shall take effect April 1, 2024; and section four of this act shall take 35 effect April 1, 2025. 36 PART K 37 Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax 38 law, as amended by section 1 of part R of chapter 59 of the laws of 39 2019, is amended to read as follows: 40 (a) General. A taxpayer shall be allowed a credit against the tax 41 imposed by this article. Such credit, to be computed as hereinafter 42 provided, shall be allowed for bioheating fuel, used for space heating 43 or hot water production for residential purposes within this state 44 purchased before January first, two thousand [twenty-three] twenty-six. 45 Such credit shall be $0.01 per percent of biodiesel per gallon of 46 bioheating fuel, not to exceed twenty cents per gallon, purchased by 47 such taxpayer. Provided, however, that on or after January first, two 48 thousand seventeen, this credit shall not apply to bioheating fuel that 49 is less than six percent biodiesel per gallon of bioheating fuel. 50 § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as 51 amended by section 2 of part R of chapter 59 of the laws of 2019, is 52 amended to read as follows: 53 (1) A taxpayer shall be allowed a credit against the tax imposed by 54 this article. Such credit, to be computed as hereinafter provided, shallA. 9009--B 29 1 be allowed for bioheating fuel, used for space heating or hot water 2 production for residential purposes within this state and purchased on 3 or after July first, two thousand six and before July first, two thou- 4 sand seven and on or after January first, two thousand eight and before 5 January first, two thousand [twenty-three] twenty-six. Such credit shall 6 be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to 7 exceed twenty cents per gallon, purchased by such taxpayer. Provided, 8 however, that on or after January first, two thousand seventeen, this 9 credit shall not apply to bioheating fuel that is less than six percent 10 biodiesel per gallon of bioheating fuel. 11 § 3. This act shall take effect immediately. 12 PART L 13 Section 1. Section 5 of chapter 604 of the laws of 2011 amending the 14 tax law relating to the credit for companies who provide transportation 15 to people with disabilities, as amended by section 1 of part K of chap- 16 ter 60 of the laws of 2016, is amended to read as follows: 17 § 5. This act shall take effect immediately and shall remain in effect 18 until December 31, 2016 when upon such date it shall be deemed repealed; 19 provided that this act shall be deemed to have been in full force and 20 effect on December 31, 2010; provided further that this act shall apply 21 to all tax years commencing on or after January 1, 2011; and provided 22 further that sections one and two of this act shall remain in effect 23 until December 31, [2022] 2028 when upon such date such sections shall 24 be deemed repealed. 25 § 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, 26 as amended by section 2 of part K of chapter 60 of the laws of 2016, is 27 amended to read as follows: 28 (c) Application of credit. In no event shall the credit allowed under 29 this subdivision for any taxable year reduce the tax due for such year 30 to less than the amount prescribed in paragraph (d) of subdivision one 31 of section two hundred ten of this article. However, if the amount of 32 credit allowed under this subdivision for any taxable year reduces the 33 tax to such amount or if the taxpayer otherwise pays tax based on the 34 fixed dollar minimum amount, any amount of credit thus not deductible in 35 such taxable year shall be carried over to the following year or years, 36 and may be deducted from the taxpayer's tax for such year or years. The 37 tax credit allowed pursuant to this subdivision shall not apply to taxa- 38 ble years beginning on or after January first, two thousand [twenty-39three] twenty-nine. 40 § 3. This act shall take effect immediately. 41 PART M 42 Section 1. Paragraph 4 of subdivision (a) of section 24 of the tax 43 law, as added by section 5 of part Q of chapter 57 of the laws of 2010, 44 is amended to read as follows: 45 (4) (i) Notwithstanding the foregoing provisions of this subdivision, 46 a qualified film production company or qualified independent film 47 production company, that has applied for credit under the provisions of 48 this section, agrees as a condition for the granting of the credit: 49 [(i)] (A) to include in each qualified film distributed by DVD, or other 50 media for the secondary market, a New York promotional video approved by 51 the governor's office of motion picture and television development or to 52 include in the end credits of each qualified film "Filmed With theA. 9009--B 30 1 Support of the New York State Governor's Office of Motion Picture and 2 Television Development" and a logo provided by the governor's office of 3 motion picture and television development, and [(ii)] (B) to certify 4 that it will purchase taxable tangible property and services, defined as 5 qualified production costs pursuant to paragraph one of subdivision (b) 6 of this section, only from companies registered to collect and remit 7 state and local sales and use taxes pursuant to articles twenty-eight 8 and twenty-nine of this chapter. 9 (ii) On or after January first, two thousand twenty-three, a qualified 10 film production company or qualified independent film production company 11 that has applied for credit under the provisions of this section shall, 12 as a condition for the granting of the credit, file a diversity plan 13 with the governor's office for motion picture and television development 14 outlining specific goals for hiring a diverse workforce. The commission- 15 er of economic development shall promulgate regulations implementing the 16 requirements of this paragraph, which, notwithstanding any provisions to 17 the contrary in the state administrative procedure act, may be adopted 18 on an emergency basis, to ensure compliance with the provisions of this 19 paragraph. The governor's office for motion picture and television 20 development shall review each submitted plan as to whether it meets the 21 requirements established by the commissioner of economic development, 22 and shall verify that the applicant has met or made good-faith efforts 23 in achieving these goals. The diversity plan also shall indicate whether 24 the qualified film production company or qualified independent film 25 production company that has applied for credit under the provisions of 26 this section intends to participate in training, education, and recruit- 27 ment programs that are designed to promote and encourage the training 28 and hiring in the film and television industry of New York residents who 29 represent the diversity of the State's population. 30 § 2. Paragraph 5 of subdivision (a) of section 24 of the tax law, as 31 amended by section 1 of part F of chapter 59 of the laws of 2021, is 32 amended to read as follows: 33 (5) For the period two thousand fifteen through two thousand [twenty-34six] twenty-nine, in addition to the amount of credit established in 35 paragraph two of this subdivision, a taxpayer shall be allowed a credit 36 equal to the product (or pro rata share of the product, in the case of a 37 member of a partnership) of ten percent and the amount of wages or sala- 38 ries paid to individuals directly employed (excluding those employed as 39 writers, directors, music directors, producers and performers, including 40 background actors with no scripted lines) by a qualified film production 41 company or a qualified independent film production company for services 42 performed by those individuals in one of the counties specified in this 43 paragraph in connection with a qualified film with a minimum budget of 44 five hundred thousand dollars. For purposes of this additional credit, 45 the services must be performed in one or more of the following counties: 46 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 47 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 48 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 49 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 50 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 51 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 52 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 53 Yates. The aggregate amount of tax credits allowed pursuant to the 54 authority of this paragraph shall be five million dollars each year 55 during the period two thousand fifteen through two thousand [twenty-six] 56 twenty-nine of the annual allocation made available to the programA. 9009--B 31 1 pursuant to paragraph four of subdivision (e) of this section. Such 2 aggregate amount of credits shall be allocated by the governor's office 3 for motion picture and television development among taxpayers in order 4 of priority based upon the date of filing an application for allocation 5 of film production credit with such office. If the total amount of allo- 6 cated credits applied for under this paragraph in any year exceeds the 7 aggregate amount of tax credits allowed for such year under this para- 8 graph, such excess shall be treated as having been applied for on the 9 first day of the next year. If the total amount of allocated tax credits 10 applied for under this paragraph at the conclusion of any year is less 11 than five million dollars, the remainder shall be treated as part of the 12 annual allocation made available to the program pursuant to paragraph 13 four of subdivision (e) of this section. However, in no event may the 14 total of the credits allocated under this paragraph and the credits 15 allocated under paragraph five of subdivision (a) of section thirty-one 16 of this article exceed five million dollars in any year during the peri- 17 od two thousand fifteen through two thousand [twenty-six] twenty-nine. 18 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 19 amended by section 2 of part F of chapter 59 of the laws of 2021, is 20 amended to read as follows: 21 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 22 subdivision (a) of this section shall be increased by an additional four 23 hundred twenty million dollars in each year starting in two thousand ten 24 through two thousand [twenty-six] twenty-nine provided however, seven 25 million dollars of the annual allocation shall be available for the 26 empire state film post production credit pursuant to section thirty-one 27 of this article in two thousand thirteen and two thousand fourteen, 28 twenty-five million dollars of the annual allocation shall be available 29 for the empire state film post production credit pursuant to section 30 thirty-one of this article in each year starting in two thousand fifteen 31 through two thousand [twenty-six] twenty-nine and five million dollars 32 of the annual allocation shall be made available for the television 33 writers' and directors' fees and salaries credit pursuant to section 34 twenty-four-b of this article in each year starting in two thousand 35 twenty through two thousand [twenty-six] twenty-nine. This amount shall 36 be allocated by the governor's office for motion picture and television 37 development among taxpayers in accordance with subdivision (a) of this 38 section. If the commissioner of economic development determines that the 39 aggregate amount of tax credits available from additional pool 2 for the 40 empire state film production tax credit have been previously allocated, 41 and determines that the pending applications from eligible applicants 42 for the empire state film post production tax credit pursuant to section 43 thirty-one of this article is insufficient to utilize the balance of 44 unallocated empire state film post production tax credits from such 45 pool, the remainder, after such pending applications are considered, 46 shall be made available for allocation in the empire state film tax 47 credit pursuant to this section, subdivision twenty of section two 48 hundred ten-B and subsection (gg) of section six hundred six of this 49 chapter. Also, if the commissioner of economic development determines 50 that the aggregate amount of tax credits available from additional pool 51 2 for the empire state film post production tax credit have been previ- 52 ously allocated, and determines that the pending applications from 53 eligible applicants for the empire state film production tax credit 54 pursuant to this section is insufficient to utilize the balance of unal- 55 located film production tax credits from such pool, then all or part of 56 the remainder, after such pending applications are considered, shall beA. 9009--B 32 1 made available for allocation for the empire state film post production 2 credit pursuant to this section, subdivision thirty-two of section two 3 hundred ten-B and subsection (qq) of section six hundred six of this 4 chapter. The governor's office for motion picture and television devel- 5 opment must notify taxpayers of their allocation year and include the 6 allocation year on the certificate of tax credit. Taxpayers eligible to 7 claim a credit must report the allocation year directly on their empire 8 state film production credit tax form for each year a credit is claimed 9 and include a copy of the certificate with their tax return. In the case 10 of a qualified film that receives funds from additional pool 2, no 11 empire state film production credit shall be claimed before the later of 12 the taxable year the production of the qualified film is complete, or 13 the taxable year immediately following the allocation year for which the 14 film has been allocated credit by the governor's office for motion 15 picture and television development. 16 § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 17 amended by section 3 of part F of chapter 59 of the laws of 2021, is 18 amended to read as follows: 19 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 20 subdivision (a) of this section shall be increased by an additional four 21 hundred twenty million dollars in each year starting in two thousand ten 22 through two thousand [twenty-six] twenty-nine provided however, seven 23 million dollars of the annual allocation shall be available for the 24 empire state film post production credit pursuant to section thirty-one 25 of this article in two thousand thirteen and two thousand fourteen and 26 twenty-five million dollars of the annual allocation shall be available 27 for the empire state film post production credit pursuant to section 28 thirty-one of this article in each year starting in two thousand fifteen 29 through two thousand [twenty-six] twenty-nine. This amount shall be 30 allocated by the governor's office for motion picture and television 31 development among taxpayers in accordance with subdivision (a) of this 32 section. If the commissioner of economic development determines that the 33 aggregate amount of tax credits available from additional pool 2 for the 34 empire state film production tax credit have been previously allocated, 35 and determines that the pending applications from eligible applicants 36 for the empire state film post production tax credit pursuant to section 37 thirty-one of this article is insufficient to utilize the balance of 38 unallocated empire state film post production tax credits from such 39 pool, the remainder, after such pending applications are considered, 40 shall be made available for allocation in the empire state film tax 41 credit pursuant to this section, subdivision twenty of section two 42 hundred ten-B and subsection (gg) of section six hundred six of this 43 chapter. Also, if the commissioner of economic development determines 44 that the aggregate amount of tax credits available from additional pool 45 2 for the empire state film post production tax credit have been previ- 46 ously allocated, and determines that the pending applications from 47 eligible applicants for the empire state film production tax credit 48 pursuant to this section is insufficient to utilize the balance of unal- 49 located film production tax credits from such pool, then all or part of 50 the remainder, after such pending applications are considered, shall be 51 made available for allocation for the empire state film post production 52 credit pursuant to this section, subdivision thirty-two of section two 53 hundred ten-B and subsection (qq) of section six hundred six of this 54 chapter. The governor's office for motion picture and television devel- 55 opment must notify taxpayers of their allocation year and include the 56 allocation year on the certificate of tax credit. Taxpayers eligible toA. 9009--B 33 1 claim a credit must report the allocation year directly on their empire 2 state film production credit tax form for each year a credit is claimed 3 and include a copy of the certificate with their tax return. In the case 4 of a qualified film that receives funds from additional pool 2, no 5 empire state film production credit shall be claimed before the later of 6 the taxable year the production of the qualified film is complete, or 7 the taxable year immediately following the allocation year for which the 8 film has been allocated credit by the governor's office for motion 9 picture and television development. 10 § 5. Paragraph 1 of subdivision (f) of section 24 of the tax law, as 11 added by section 2 of subpart A of part H of chapter 39 of the laws of 12 2019, is amended to read as follows: 13 (1) With regard to certificates of tax credit issued on or after Janu- 14 ary first, two thousand twenty, the commissioner of economic development 15 shall reduce by one-quarter of one percent the amount of credit allowed 16 to a taxpayer and this reduced amount shall be reported on a certificate 17 of tax credit issued pursuant to this section and the regulations 18 promulgated by the commissioner of economic development to implement 19 this credit program. Provided, however, for certificates of tax credit 20 issued on or after January first, two thousand twenty-three, the amount 21 of credit shall be reduced by one-half of one percent allowed to the 22 taxpayer. 23 § 6. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 24 amended by section 4 of part F of chapter 59 of the laws of 2021, is 25 amended to read as follows: 26 (6) For the period two thousand fifteen through two thousand [twenty-27six] twenty-nine, in addition to the amount of credit established in 28 paragraph two of this subdivision, a taxpayer shall be allowed a credit 29 equal to the product (or pro rata share of the product, in the case of a 30 member of a partnership) of ten percent and the amount of wages or sala- 31 ries paid to individuals directly employed (excluding those employed as 32 writers, directors, music directors, producers and performers, including 33 background actors with no scripted lines) for services performed by 34 those individuals in one of the counties specified in this paragraph in 35 connection with the post production work on a qualified film with a 36 minimum budget of five hundred thousand dollars at a qualified post 37 production facility in one of the counties listed in this paragraph. For 38 purposes of this additional credit, the services must be performed in 39 one or more of the following counties: Albany, Allegany, Broome, Catta- 40 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 41 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 42 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 43 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 44 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 45 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 46 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate 47 amount of tax credits allowed pursuant to the authority of this para- 48 graph shall be five million dollars each year during the period two 49 thousand fifteen through two thousand [twenty-six] twenty-nine of the 50 annual allocation made available to the empire state film post 51 production credit pursuant to paragraph four of subdivision (e) of 52 section twenty-four of this article. Such aggregate amount of credits 53 shall be allocated by the governor's office for motion picture and tele- 54 vision development among taxpayers in order of priority based upon the 55 date of filing an application for allocation of post production credit 56 with such office. If the total amount of allocated credits applied forA. 9009--B 34 1 under this paragraph in any year exceeds the aggregate amount of tax 2 credits allowed for such year under this paragraph, such excess shall be 3 treated as having been applied for on the first day of the next year. If 4 the total amount of allocated tax credits applied for under this para- 5 graph at the conclusion of any year is less than five million dollars, 6 the remainder shall be treated as part of the annual allocation for two 7 thousand seventeen made available to the empire state film post 8 production credit pursuant to paragraph four of subdivision (e) of 9 section twenty-four of this article. However, in no event may the total 10 of the credits allocated under this paragraph and the credits allocated 11 under paragraph five of subdivision (a) of section twenty-four of this 12 article exceed five million dollars in any year during the period two 13 thousand fifteen through two thousand [twenty-six] twenty-nine. 14 § 7. This act shall take effect immediately; provided, however that 15 the amendments to paragraph 4 of subdivision (e) of section 24 of the 16 tax law made by section three of this act shall take effect on the same 17 date and in the same manner as section 5 of chapter 683 of the laws of 18 2019, as amended, takes effect. 19 PART N 20 Section 1. Subdivision (a) of section 25-a of the labor law, as 21 amended by section 1 of subpart A of part N of chapter 59 of the laws of 22 2017, is amended to read as follows: 23 (a) The commissioner is authorized to establish and administer the 24 program established under this section to provide tax incentives to 25 employers for employing at risk youth in part-time and full-time posi- 26 tions. There will be ten distinct pools of tax incentives. Program one 27 will cover tax incentives allocated for two thousand twelve and two 28 thousand thirteen. Program two will cover tax incentives allocated in 29 two thousand fourteen. Program three will cover tax incentives allocated 30 in two thousand fifteen. Program four will cover tax incentives allo- 31 cated in two thousand sixteen. Program five will cover tax incentives 32 allocated in two thousand seventeen. Program six will cover tax incen- 33 tives allocated in two thousand eighteen. Program seven will cover tax 34 incentives allocated in two thousand nineteen. Program eight will cover 35 tax incentives allocated in two thousand twenty. Program nine will cover 36 tax incentives allocated in two thousand twenty-one. Program ten will 37 cover tax incentives allocated in two thousand twenty-two. Program elev- 38 en will cover tax incentives allocated in two thousand twenty-three. 39 Program twelve will cover tax incentives allocated in two thousand twen- 40 ty-four. Program thirteen will cover tax incentives allocated in two 41 thousand twenty-five. Program fourteen will cover tax incentives allo- 42 cated in two thousand twenty-six. Program fifteen will cover tax incen- 43 tives allocated in two thousand twenty-seven. The commissioner is 44 authorized to allocate up to twenty-five million dollars of tax credits 45 under program one, ten million dollars of tax credits under program two, 46 twenty million dollars of tax credits under program three, fifty million 47 dollars of tax credits under each of programs four and five, and forty 48 million dollars of tax credits under programs six, seven, eight, nine 49 [and], ten, eleven, twelve, thirteen, fourteen and fifteen. 50 § 2. Paragraph 4 of subdivision (b) of section 25-a of the labor law, 51 as added by section 1-a of subpart A of part N of chapter 59 of the laws 52 of 2017, is amended to read as follows: 53 (4) For programs six, seven, eight, nine [and], ten, eleven, twelve, 54 thirteen, fourteen, and fifteen the tax credit under each program shallA. 9009--B 35 1 be allocated as follows: (i) twenty million dollars of tax credit for 2 qualified employees; and (ii) twenty million dollars of tax credit for 3 individuals who meet all of the requirements for a qualified employee 4 except for the residency requirement of subparagraph (ii) of paragraph 5 two of this subdivision, which individuals shall be deemed to meet the 6 residency requirements of subparagraph (ii) of paragraph two of this 7 subdivision if they reside in New York state. 8 § 3. The opening paragraph of subdivision (d) of section 25-a of the 9 labor law, as amended by section 2 of part R of chapter 59 of the laws 10 of 2018, is amended to read as follows: 11 To participate in the program established under this section, an 12 employer must submit an application (in a form prescribed by the commis- 13 sioner) to the commissioner after January first, two thousand twelve but 14 no later than November thirtieth, two thousand twelve for program one, 15 after January first, two thousand fourteen but no later than November 16 thirtieth, two thousand fourteen for program two, after January first, 17 two thousand fifteen but no later than November thirtieth, two thousand 18 fifteen for program three, after January first, two thousand sixteen but 19 no later than November thirtieth, two thousand sixteen for program four, 20 after January first, two thousand seventeen but no later than November 21 thirtieth, two thousand seventeen for program five, after January first, 22 two thousand eighteen but no later than November thirtieth, two thousand 23 eighteen for program six, after January first, two thousand nineteen but 24 no later than November thirtieth, two thousand nineteen for program 25 seven, after January first, two thousand twenty but no later than Novem- 26 ber thirtieth, two thousand twenty for program eight, after January 27 first, two thousand twenty-one but no later than November thirtieth, two 28 thousand twenty-one for program nine, [and] after January first, two 29 thousand twenty-two but no later than November thirtieth, two thousand 30 twenty-two for program ten, after January first, two thousand twenty- 31 three but no later than November thirtieth, two thousand twenty-three 32 for program eleven, after January first, two thousand twenty-four but no 33 later than November thirtieth, two thousand twenty-four for program 34 twelve, after January first, two thousand twenty-five but no later than 35 November thirtieth, two thousand twenty-five for program thirteen, after 36 January first, two thousand twenty-six but no later than November thir- 37 tieth, two thousand twenty-six for program fourteen, and after January 38 first, two thousand twenty-seven but no later than November thirtieth, 39 two thousand twenty-seven for program fifteen. The qualified employees 40 must start their employment on or after January first, two thousand 41 twelve but no later than December thirty-first, two thousand twelve for 42 program one, on or after January first, two thousand fourteen but no 43 later than December thirty-first, two thousand fourteen for program two, 44 on or after January first, two thousand fifteen but no later than Decem- 45 ber thirty-first, two thousand fifteen for program three, on or after 46 January first, two thousand sixteen but no later than December thirty- 47 first, two thousand sixteen for program four, on or after January first, 48 two thousand seventeen but no later than December thirty-first, two 49 thousand seventeen for program five, on or after January first, two 50 thousand eighteen but no later than December thirty-first, two thousand 51 eighteen for program six, on or after January first, two thousand nine- 52 teen but no later than December thirty-first, two thousand nineteen for 53 program seven, on or after January first, two thousand twenty but no 54 later than December thirty-first, two thousand twenty for program eight, 55 on or after January first, two thousand twenty-one but no later than 56 December thirty-first, two thousand twenty-one for program nine, [and]A. 9009--B 36 1 on or after January first, two thousand twenty-two but no later than 2 December thirty-first, two thousand twenty-two for program ten, on or 3 after January first, two thousand twenty-three but no later than Decem- 4 ber thirty-first, two thousand three for program eleven, on or after 5 January first, two thousand twenty-four but no later than December thir- 6 ty-first, two thousand twenty-four for program twelve, on or after Janu- 7 ary first, two thousand twenty-five but no later than December thirty- 8 first, two thousand twenty-five for program thirteen, on or after 9 January first, two thousand twenty-six but no later than December thir- 10 ty-first, two thousand twenty-six for program fourteen, and on or after 11 January first, two thousand twenty-seven but no later than December 12 thirty-first, two thousand twenty-seven for program fifteen. As part of 13 such application, an employer must: 14 § 4. This act shall take effect immediately. 15 PART O 16 Section 1. Subdivision (a) of section 25-c of the labor law, as added 17 by section 1 of subpart B of part N of chapter 59 of the laws of 2017, 18 is amended to read as follows: 19 (a) The commissioner is authorized to establish and administer the 20 empire state apprenticeship tax credit program to provide tax incentives 21 to certified employers for employing qualified apprentices pursuant to 22 an apprenticeship agreement registered with the department pursuant to 23 paragraph (d) of subdivision one of section eight hundred eleven of this 24 chapter. The commissioner is authorized to allocate up to ten million 25 dollars of tax credits annually, beginning in two thousand eighteen and 26 ending before two thousand [twenty-three] twenty-eight. Any unused annu- 27 al allocation of the credit shall be made available in each of the 28 subsequent years before two thousand [twenty-three] twenty-eight. 29 § 2. This act shall take effect immediately. 30 PART P 31 Section 1. Subdivision 6 of section 187-b of the tax law, as amended 32 by section 1 of part O of chapter 59 of the laws of 2017, is amended to 33 read as follows: 34 6. Termination. The credit allowed by subdivision two of this section 35 shall not apply in taxable years beginning after December thirty-first, 36 two thousand [twenty-two] twenty-seven. 37 § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, 38 as amended by section 2 of part O of chapter 59 of the laws of 2017, is 39 amended to read as follows: 40 (f) Termination. The credit allowed by paragraph (b) of this subdivi- 41 sion shall not apply in taxable years beginning after December thirty- 42 first, two thousand [twenty-two] twenty-seven. 43 § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as 44 amended by section 3 of part O of chapter 59 of the laws of 2017, is 45 amended to read as follows: 46 (6) Termination. The credit allowed by this subsection shall not apply 47 in taxable years beginning after December thirty-first, two thousand 48 [twenty-two] twenty-seven. 49 § 4. This act shall take effect immediately. 50 PART QA. 9009--B 37 1 Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 2 amending the labor law and the tax law relating to the creation of the 3 workers with disabilities tax credit program, as amended by section 1 of 4 part E of chapter 59 of the laws of 2019, is amended to read as follows: 5 § 5. This act shall take effect January 1, 2015, and shall apply to 6 taxable years beginning on and after that date[; provided, however, that7this act shall expire and be deemed repealed January 1, 2023]. 8 § 2. Section 25-b of the labor law is amended by adding a new subdivi- 9 sion (f) to read as follows: 10 (f) The tax credits provided under this program shall be applicable to 11 taxable periods beginning before January first, two thousand twenty- 12 nine. 13 § 3. This act shall take effect immediately. 14 PART R 15 Intentionally Omitted 16 PART S 17 Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of 18 section 210-B of the tax law, as amended by section 2 of part P of chap- 19 ter 59 of the laws of 2017, is amended to read as follows: 20 (i) A credit shall be allowed under this subdivision with respect to 21 tangible personal property and other tangible property, including build- 22 ings and structural components of buildings, which are: depreciable 23 pursuant to section one hundred sixty-seven of the internal revenue 24 code, have a useful life of four years or more, are acquired by purchase 25 as defined in section one hundred seventy-nine (d) of the internal 26 revenue code, have a situs in this state and are (A) principally used by 27 the taxpayer in the production of goods by manufacturing, processing, 28 assembling, refining, mining, extracting, farming, agriculture, horti- 29 culture, floriculture, viticulture or commercial fishing, (B) industrial 30 waste treatment facilities or air pollution control facilities, used in 31 the taxpayer's trade or business, (C) research and development property, 32 or (D) principally used in the ordinary course of the taxpayer's trade 33 or business as a broker or dealer in connection with the purchase or 34 sale (which shall include but not be limited to the issuance, entering 35 into, assumption, offset, assignment, termination, or transfer) of 36 stocks, bonds or other securities as defined in section four hundred 37 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 38 defined in section four hundred seventy-five (e) of the Internal Revenue 39 Code, (E) principally used in the ordinary course of the taxpayer's 40 trade or business of providing investment advisory services for a regu- 41 lated investment company as defined in section eight hundred fifty-one 42 of the Internal Revenue Code, or lending, loan arrangement or loan orig- 43 ination services to customers in connection with the purchase or sale 44 (which shall include but not be limited to the issuance, entering into, 45 assumption, offset, assignment, termination, or transfer) of securities 46 as defined in section four hundred seventy-five (c)(2) of the Internal 47 Revenue Code, (F) principally used in the ordinary course of the taxpay- 48 er's business as an exchange registered as a national securities 49 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- 50 ties Exchange Act of 1934 or a board of trade as defined in subparagraph 51 one of paragraph (a) of section fourteen hundred ten of the not-for-pro-A. 9009--B 38 1 fit corporation law or as an entity that is wholly owned by one or more 2 such national securities exchanges or boards of trade and that provides 3 automation or technical services thereto, or (G) principally used as a 4 qualified film production facility including qualified film production 5 facilities having a situs in an empire zone designated as such pursuant 6 to article eighteen-B of the general municipal law, where the taxpayer 7 is providing three or more services to any qualified film production 8 company using the facility, including such services as a studio lighting 9 grid, lighting and grip equipment, multi-line phone service, broadband 10 information technology access, industrial scale electrical capacity, 11 food services, security services, and heating, ventilation and air 12 conditioning. For purposes of clauses (D), (E) and (F) of this subpara- 13 graph, property purchased by a taxpayer affiliated with a regulated 14 broker, dealer, registered investment advisor, national securities 15 exchange or board of trade, is allowed a credit under this subdivision 16 if the property is used by its affiliated regulated broker, dealer, 17 registered investment advisor, national securities exchange or board of 18 trade in accordance with this subdivision. For purposes of determining 19 if the property is principally used in qualifying uses, the uses by the 20 taxpayer described in clauses (D) and (E) of this subparagraph may be 21 aggregated. In addition, the uses by the taxpayer, its affiliated regu- 22 lated broker, dealer and registered investment advisor under either or 23 both of those clauses may be aggregated. Provided, however, a taxpayer 24 shall not be allowed the credit provided by clauses (D), (E) and (F) of 25 this subparagraph unless the property is first placed in service before 26 October first, two thousand fifteen and (i) eighty percent or more of 27 the employees performing the administrative and support functions 28 resulting from or related to the qualifying uses of such equipment are 29 located in this state or (ii) the average number of employees that 30 perform the administrative and support functions resulting from or 31 related to the qualifying uses of such equipment and are located in this 32 state during the taxable year for which the credit is claimed is equal 33 to or greater than ninety-five percent of the average number of employ- 34 ees that perform these functions and are located in this state during 35 the thirty-six months immediately preceding the year for which the cred- 36 it is claimed, or (iii) the number of employees located in this state 37 during the taxable year for which the credit is claimed is equal to or 38 greater than ninety percent of the number of employees located in this 39 state on December thirty-first, nineteen hundred ninety-eight or, if the 40 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 41 eight, the last day of its first taxable year ending after December 42 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 43 subject to tax in this state after the taxable year beginning in nine- 44 teen hundred ninety-eight, then the taxpayer is not required to satisfy 45 the employment test provided in the preceding sentence of this subpara- 46 graph for its first taxable year. For purposes of clause (iii) of this 47 subparagraph the employment test will be based on the number of employ- 48 ees located in this state on the last day of the first taxable year the 49 taxpayer is subject to tax in this state. If the uses of the property 50 must be aggregated to determine whether the property is principally used 51 in qualifying uses, then either each affiliate using the property must 52 satisfy this employment test or this employment test must be satisfied 53 through the aggregation of the employees of the taxpayer, its affiliated 54 regulated broker, dealer, and registered investment adviser using the 55 property. For purposes of clause (A) of this subparagraph, tangible 56 personal property and other tangible property shall not include propertyA. 9009--B 39 1 principally used by the taxpayer (I) in the production or distribution 2 of electricity, natural gas after extraction from wells, steam, or water 3 delivered through pipes and mains, or (II) in the creation, production 4 or reproduction, in any medium, of any audio or visual recording, 5 including but not limited to films, television shows, commercials, and 6 musical recordings, or in the duplication, for purposes of broadcast in 7 any medium, of a master of any audio or visual recording, including but 8 not limited to films, television shows, commercials, and musical 9 recordings. 10 § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 11 of the tax law, as amended by section 3 of part P of chapter 59 of the 12 laws of 2017, is amended to read as follows: 13 (A) A credit shall be allowed under this subsection with respect to 14 tangible personal property and other tangible property, including build- 15 ings and structural components of buildings, which are: depreciable 16 pursuant to section one hundred sixty-seven of the internal revenue 17 code, have a useful life of four years or more, are acquired by purchase 18 as defined in section one hundred seventy-nine (d) of the internal 19 revenue code, have a situs in this state and are (i) principally used by 20 the taxpayer in the production of goods by manufacturing, processing, 21 assembling, refining, mining, extracting, farming, agriculture, horti- 22 culture, floriculture, viticulture or commercial fishing, (ii) indus- 23 trial waste treatment facilities or air pollution control facilities, 24 used in the taxpayer's trade or business, (iii) research and development 25 property, (iv) principally used in the ordinary course of the taxpayer's 26 trade or business as a broker or dealer in connection with the purchase 27 or sale (which shall include but not be limited to the issuance, enter- 28 ing into, assumption, offset, assignment, termination, or transfer) of 29 stocks, bonds or other securities as defined in section four hundred 30 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 31 defined in section 475(e) of the Internal Revenue Code, (v) principally 32 used in the ordinary course of the taxpayer's trade or business of 33 providing investment advisory services for a regulated investment compa- 34 ny as defined in section eight hundred fifty-one of the Internal Revenue 35 Code, or lending, loan arrangement or loan origination services to 36 customers in connection with the purchase or sale (which shall include 37 but not be limited to the issuance, entering into, assumption, offset, 38 assignment, termination, or transfer) of securities as defined in 39 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 40 or (vi) principally used as a qualified film production facility includ- 41 ing qualified film production facilities having a situs in an empire 42 zone designated as such pursuant to article eighteen-B of the general 43 municipal law, where the taxpayer is providing three or more services to 44 any qualified film production company using the facility, including such 45 services as a studio lighting grid, lighting and grip equipment, multi- 46 line phone service, broadband information technology access, industrial 47 scale electrical capacity, food services, security services, and heat- 48 ing, ventilation and air conditioning. For purposes of clauses (iv) and 49 (v) of this subparagraph, property purchased by a taxpayer affiliated 50 with a regulated broker, dealer, or registered investment adviser is 51 allowed a credit under this subsection if the property is used by its 52 affiliated regulated broker, dealer or registered investment adviser in 53 accordance with this subsection. For purposes of determining if the 54 property is principally used in qualifying uses, the uses by the taxpay- 55 er described in clauses (iv) and (v) of this subparagraph may be aggre- 56 gated. In addition, the uses by the taxpayer, its affiliated regulatedA. 9009--B 40 1 broker, dealer and registered investment adviser under either or both of 2 those clauses may be aggregated. Provided, however, a taxpayer shall not 3 be allowed the credit provided by clauses (iv) and (v) of this subpara- 4 graph unless (I) eighty percent or more of the employees performing the 5 administrative and support functions resulting from or related to the 6 qualifying uses of such equipment are located in this state, or (II) the 7 average number of employees that perform the administrative and support 8 functions resulting from or related to the qualifying uses of such 9 equipment and are located in this state during the taxable year for 10 which the credit is claimed is equal to or greater than ninety-five 11 percent of the average number of employees that perform these functions 12 and are located in this state during the thirty-six months immediately 13 preceding the year for which the credit is claimed, or (III) the number 14 of employees located in this state during the taxable year for which the 15 credit is claimed is equal to or greater than ninety percent of the 16 number of employees located in this state on December thirty-first, 17 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 18 year taxpayer in nineteen hundred ninety-eight, the last day of its 19 first taxable year ending after December thirty-first, nineteen hundred 20 ninety-eight. If the taxpayer becomes subject to tax in this state after 21 the taxable year beginning in nineteen hundred ninety-eight, then the 22 taxpayer is not required to satisfy the employment test provided in the 23 preceding sentence of this subparagraph for its first taxable year. For 24 the purposes of clause (III) of this subparagraph the employment test 25 will be based on the number of employees located in this state on the 26 last day of the first taxable year the taxpayer is subject to tax in 27 this state. If the uses of the property must be aggregated to determine 28 whether the property is principally used in qualifying uses, then either 29 each affiliate using the property must satisfy this employment test or 30 this employment test must be satisfied through the aggregation of the 31 employees of the taxpayer, its affiliated regulated broker, dealer, and 32 registered investment adviser using the property. For purposes of clause 33 (i) of this subparagraph, tangible personal property and other tangible 34 property shall not include property principally used by the taxpayer (a) 35 in the production or distribution of electricity, natural gas after 36 extraction from wells, steam, or water delivered through pipes and 37 mains, or (b) in the creation, production or reproduction, in any medi- 38 um, of any audio or visual recording, including but not limited to 39 films, television shows, commercials, and musical recordings, or in the 40 duplication, for purposes of broadcast in any medium, of a master of any 41 audio or visual recording, including but not limited to films, tele- 42 vision shows, commercials, and musical recordings. 43 § 3. This act shall take effect immediately, and shall apply to prop- 44 erty placed in service on or after January 1, 2023. 45 PART T 46 Intentionally Omitted 47 PART U 48 Intentionally Omitted 49 PART VA. 9009--B 41 1 Intentionally Omitted 2 PART W 3 Section 1. Paragraph 1 of subsection (a) of section 671 of the tax 4 law, as amended by chapter 760 of the laws of 1992, is amended to read 5 as follows: 6 (1) Every employer maintaining an office or transacting business with- 7 in this state and making payment of any wages taxable under this article 8 shall deduct and withhold from such wages for each payroll period a tax 9 computed in such manner as to result, so far as practicable, in with- 10 holding from the employee's wages during each calendar year an amount 11 substantially equivalent to the tax reasonably estimated to be due under 12 this article resulting from the inclusion in the employee's New York 13 adjusted gross income or New York source income of [his] the employee's 14 wages received during such calendar year. The method of determining the 15 amount to be withheld shall be prescribed by [regulations of] the 16 commissioner, with due regard to the New York withholding exemptions of 17 the employee and the sum of any credits allowable against [his] the 18 employee's tax. The commissioner shall publish any changes to such meth- 19 od of determining the amount of tax to be withheld on the website of the 20 department of taxation and finance. The commissioner shall also cause 21 notice of such changes to be published in the section for miscellaneous 22 notices in the state register and shall give other appropriate general 23 notice of such changes. 24 § 2. Paragraph 6 of subsection (j) of section 697 of the tax law, as 25 amended by chapter 61 of the laws of 1989, is amended to read as 26 follows: 27 (6) Publication of interest rates. The commissioner of taxation and 28 finance shall publish the interest rates set under this subsection on 29 the website of the department of taxation and finance. Immediately 30 following such publication, the commissioner shall cause such interest 31 rates to be published in the section for miscellaneous notices in the 32 state register[,] and give other appropriate general notice of[, the] 33 such interest rates [to be set under this subsection no later than twen-34ty days preceding the first day of the calendar quarter during which35such interest rates apply]. The setting and publication of such interest 36 rates shall not be included within paragraph (a) of subdivision two of 37 section one hundred two of the state administrative procedure act relat- 38 ing to the definition of a rule. 39 § 3. Paragraph 5 of subsection (e) of section 1096 of the tax law, as 40 amended by chapter 61 of the laws of 1989, is amended to read as 41 follows: 42 (5) Publication of interest rates. The commissioner of taxation and 43 finance shall publish the interest rates set under this subsection on 44 the website of the department of taxation and finance. Immediately 45 following such publication, the commissioner shall cause such interest 46 rates to be published in the section for miscellaneous notices in the 47 state register[,] and give other appropriate general notice of[, the] 48 such interest rates [to be set under this subsection no later than twen-49ty days preceding the first day of the calendar quarter during which50such interest rates apply]. The setting and publication of such interest 51 rates shall not be included within paragraph (a) of subdivision two of 52 section one hundred two of the state administrative procedure act relat- 53 ing to the definition of a rule.A. 9009--B 42 1 § 4. This act shall take effect immediately. 2 PART X 3 Section 1. Paragraph (c) of subdivision 1 of section 1701 of the tax 4 law, as added by section 1 of part CC-1 of chapter 57 of the laws of 5 2008, is amended to read as follows: 6 (c) "Financial institution" means (i) any financial institution 7 authorized or required to participate in a financial institution data 8 match system or program for child support enforcement purposes under 9 federal or state law, and (ii) any virtual currency business licensed by 10 the superintendent of financial services. 11 § 2. This act shall take effect immediately. 12 PART Y 13 Section 1. Section 4 of chapter 475 of the laws of 2013, relating to 14 assessment ceilings for local public utility mass real property, as 15 amended by section 1 of part G of chapter 59 of the laws of 2018, is 16 amended to read as follows: 17 § 4. This act shall take effect on the first of January of the second 18 calendar year commencing after this act shall have become a law and 19 shall apply to assessment rolls with taxable status dates on or after 20 such date; provided, however, that this act shall expire and be deemed 21 repealed [eight] twelve years after such effective date; and provided, 22 further, that no assessment of local public utility mass real property 23 appearing on the municipal assessment roll with a taxable status date 24 occurring in the first calendar year after this act shall have become a 25 law shall be less than ninety percent or more than one hundred ten 26 percent of the assessment of the same property on the date this act 27 shall have become a law. 28 § 2. Subdivision 4 of section 499-pppp of the real property tax law, 29 as added by chapter 475 of the laws of 2013, is amended to read as 30 follows: 31 4. Any final determination of an assessment ceiling by the commission- 32 er pursuant to subdivision one of this section shall be subject to judi- 33 cial challenge by an owner of local public utility mass real property or 34 a local assessing jurisdiction in a proceeding under article seven of 35 this chapter; provided however, the time to commence such proceeding 36 shall be within sixty days of the issuance of the final assessment ceil- 37 ing certificate and all questions of fact and law shall be determined de 38 novo. Any judicial proceeding shall be commenced in the supreme court in 39 the county of Albany or the county agreed upon by the parties in which 40 the local public utility mass real property is located. Nothing in this 41 section shall preclude a challenge of the assessed value established by 42 a local assessing jurisdiction with respect to local public utility mass 43 real property as otherwise provided in article seven of this chapter, 44 provided however that upon motion of the local assessing jurisdiction, 45 such challenge shall be consolidated with the challenge to the final 46 assessment ceiling commenced pursuant to this subdivision and litigated 47 in the venue specified by this subdivision. In any proceeding challeng- 48 ing an assessed value established by a local assessing jurisdiction for 49 local public utility mass real property, the final certified assessment 50 ceiling established pursuant to subdivision one of this section [shall51not], and the evidence submitted in connection therewith, may be consid- 52 ered by the court when determining the merits of the challenge to theA. 9009--B 43 1 assessed value established by the assessing unit. In such a proceeding, 2 the local assessing jurisdiction, upon request to the local public util- 3 ity mass real property owner, shall be provided with a copy of the annu- 4 al report provided to the commissioner under section four hundred nine- 5 ty-nine-rrrr of this title. Such annual report shall only be used for 6 actual and necessary activities related to such proceeding and shall 7 otherwise be considered confidential and shall not be subject to further 8 disclosure pursuant to the freedom of information law or otherwise. If 9 the local public utility mass real property owner fails to provide the 10 report within thirty days of such a request, the proceeding shall be 11 dismissed. 12 § 3. This act shall take effect immediately, provided, however, that 13 the amendments to subdivision 4 of section 499-pppp of the real property 14 tax law made by section two of this act shall not affect the repeal of 15 such subdivision and shall be deemed to be repealed therewith. 16 PART Z 17 Section 1. This Part enacts into law major components of legislation 18 relating to the administration of the STAR program authorized by section 19 425 of the real property tax law and subsection (eee) of section 606 of 20 the tax law. Each component is wholly contained within a Subpart identi- 21 fied as Subparts A through E. The effective date for each particular 22 provision contained within such Subpart is set forth in the last section 23 of such Subpart. Any provision in any section contained within a 24 Subpart, including the effective date of the Subpart, which makes refer- 25 ence to a section of "this act", when used in connection with that 26 particular component, shall be deemed to mean and refer to the corre- 27 sponding section of the Subpart in which it is found. Section two 28 contains a severability clause for all provisions contained in each 29 Subpart of this Part. Section three of this act sets forth the general 30 effective date of this Part. 31 SUBPART A 32 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real 33 property tax law, as amended by section 1 of part TT of chapter 59 of 34 the laws of 2019, is amended to read as follows: 35 (a-2) Notwithstanding any provision of law to the contrary, where an 36 application for the "enhanced" STAR exemption authorized by subdivision 37 four of this section has not been filed on or before the taxable status 38 date, and the owner believes that good cause existed for the failure to 39 file the application by that date, the owner may, no later than the last 40 day for paying school taxes without incurring interest or penalty, 41 submit a written request to the commissioner asking him or her to extend 42 the filing deadline and grant the exemption. Such request shall contain 43 an explanation of why the deadline was missed, and shall be accompanied 44 by an application, reflecting the facts and circumstances as they 45 existed on the taxable status date. After consulting with the assessor, 46 the commissioner may extend the filing deadline and grant the exemption 47 if the commissioner is satisfied that (i) good cause existed for the 48 failure to file the application by the taxable status date, and that 49 (ii) the applicant is otherwise entitled to the exemption. The commis- 50 sioner shall mail notice of his or her determination to such owner and 51 the assessor. If the determination states that the commissioner has 52 granted the exemption, the assessor shall thereupon be authorized andA. 9009--B 44 1 directed to correct the assessment roll accordingly, or, if another 2 person has custody or control of the assessment roll, to direct that 3 person to make the appropriate corrections. [If the correction is not4made before school taxes are levied, the school district authorities5shall be authorized and directed to take account of the fact that the6commissioner has granted the exemption by correcting the applicant's tax7bill and/or issuing a refund accordingly] Provided, however, that if the 8 assessment roll cannot be corrected in time for the exemption to appear 9 on the applicant's school tax bill, the commissioner shall be authorized 10 to remit directly to the applicant the tax savings that the STAR 11 exemption would have yielded if it had appeared on the applicant's tax 12 bill. The amounts so payable shall be paid from the account established 13 for the payment of STAR benefits to late registrants pursuant to subpar- 14 agraph (iii) of paragraph (a) of subdivision fourteen of this section. 15 § 2. This act shall take effect immediately. 16 SUBPART B 17 Intentionally Omitted. 18 SUBPART C 19 Section 1. Subparagraph (A) of paragraph 3 of subsection (eee) of 20 section 606 of the tax law, as amended by section 2 of part RR of chap- 21 ter 59 of the laws of 2019, is amended to read as follows: 22 (A) Beginning with taxable years after two thousand fifteen, a basic 23 STAR credit shall be available to a qualified taxpayer if the affiliated 24 income of the parcel that serves as the taxpayer's primary residence is 25 less than or equal to five hundred thousand dollars for the applicable 26 income tax year specified by paragraph (b-1) of subdivision three of 27 section four hundred twenty-five of the real property tax law. The 28 income limit established for the basic STAR exemption by paragraph (b-1) 29 of subdivision three of section four hundred twenty-five of the real 30 property tax law shall not be taken into account when determining eligi- 31 bility for the basic STAR credit. 32 § 2. This act shall take effect immediately. 33 SUBPART D 34 Section 1. Subparagraph (B) of paragraph 7 of subsection (eee) of 35 section 606 of the tax law, as amended by section 7 of part E of chapter 36 59 of the laws of 2018, is amended to read as follows: 37 (B) Notwithstanding any provision of law to the contrary, the names 38 and addresses of individuals who have applied for or are receiving the 39 credit authorized by this subsection may be disclosed to assessors, 40 county directors of real property tax services, and municipal tax 41 collecting officers within New York state. In addition, where an agree- 42 ment is in place between the commissioner and the head of the tax 43 department of another state, such information may be disclosed to such 44 official or his or her designees, or assessors and tax officials from 45 jurisdictions outside New York state if the laws of the other jurisdic- 46 tion allow it to provide similar information to this state. Such infor- 47 mation shall be considered confidential and shall not be subject to 48 further disclosure pursuant to the freedom of information law or other- 49 wise.A. 9009--B 45 1 § 2. This act shall take effect immediately. 2 SUBPART E 3 Section 1. Subsection (c) of section 651 of the tax law, as amended by 4 section 3 of part QQ of chapter 59 of the laws of 2019, is amended to 5 read as follows: 6 (c) Decedents. The return for any deceased individual shall be made 7 and filed by [his] the decedent's executor, administrator, or other 8 person charged with [his] the decedent's property. If a final return of 9 a decedent is for a fractional part of a year, the due date of such 10 return shall be the fifteenth day of the fourth month following the 11 close of the twelve-month period which began with the first day of such 12 fractional part of the year. Notwithstanding any provision of law to the 13 contrary, when a return has been filed for a decedent, the commissioner 14 may disclose the decedent's name, address, and the date of death to the 15 director of real property tax services of the county and the assessor of 16 the assessing unit in which the address reported on such return is 17 located. 18 § 2. This act shall take effect immediately. 19 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 20 sion, section or subpart contained in any part of this act shall be 21 adjudged by any court of competent jurisdiction to be invalid, such 22 judgment shall not affect, impair, or invalidate the remainder thereof, 23 but shall be confined in its operation to the clause, sentence, para- 24 graph, subdivision, section or subpart contained in any part thereof 25 directly involved in the controversy in which such judgment shall have 26 been rendered. It is hereby declared to be the intent of the legislature 27 that this act would have been enacted even if such invalid provisions 28 had not been included herein. 29 § 3. This act shall take effect immediately, provided, however, that 30 the applicable effective date of Subparts A through E of this act shall 31 be as specifically set forth in the last section of such Subparts. 32 PART AA 33 Section 1. Section 575-b of the real property tax law is amended by 34 adding a new subdivision 4 to read as follows: 35 4. Complaints with respect to assessments determined under this 36 section shall be governed by sections five hundred twelve and five 37 hundred twenty-four of this article and the following provisions: 38 (a) The assessor shall, upon request, provide the owner with the 39 inputs that he or she entered into the commissioner's appraisal model 40 when valuing the property pursuant to this section. 41 (b) The property owner may advise the assessor of any alleged errors 42 to the appraisal model inputs believed to have been made by the asses- 43 sor, and may provide information to the assessor in support of any 44 proposed change to those inputs. 45 (c) If the property owner provides such information to the assessor 46 prior to the filing of the tentative assessment roll, the assessor may 47 make such adjustments to the appraisal model inputs as he or she deems 48 warranted based upon the information provided by the property owner, and 49 may recalculate the property value by entering the adjusted inputs into 50 the appraisal model. 51 (d) If dissatisfied with the assessed value appearing on the tentative 52 assessment roll, the property owner may file a complaint with the boardA. 9009--B 46 1 of assessment review; provided, however, that the grounds for review of 2 an assessment determined under this section with respect to both article 3 five and article seven of this chapter shall be limited to the accuracy 4 of the appraisal model inputs made by the assessor. 5 (e) Actions or proceedings that challenge the validity and accuracy of 6 the appraisal model or discount rates established under this section may 7 not be commenced against assessing units. Such challenges may only be 8 brought by commencing an action against the commissioner in the third 9 department of the appellate division of the supreme court in the manner 10 provided by article seventy-eight of the civil practice law and rules. 11 § 2. This act shall take effect immediately. 12 PART BB 13 Section 1. The subsection heading and paragraphs 1, 2, 3, and 4 of 14 subsection (n-1) of section 606 of the tax law, as added by subpart B of 15 part C of chapter 20 of the laws of 2015, the opening paragraph of 16 subparagraph (a) of paragraph 2 as amended by section 7 of part A of 17 chapter 60 of the laws of 2016, are amended to read as follows: 18 [Property tax relief] Homeowner tax rebate credit. (1) An individual 19 taxpayer who meets the eligibility standards in paragraph two of this 20 subsection shall be allowed a credit against the taxes imposed by this 21 article in the amount specified in paragraph three of this subsection 22 for tax [years two thousand sixteen, two thousand seventeen, two thou-23sand eighteen, and two thousand nineteen] year two thousand twenty-two. 24 (2) (a) To be eligible for the credit, the taxpayer (or taxpayers 25 filing joint returns) on the personal income tax return filed for the 26 taxable year two years prior, must have (i) been a resident, (ii) owned 27 and primarily resided in real property receiving either the STAR 28 exemption authorized by section four hundred twenty-five of the real 29 property tax law or the school tax relief credit authorized by 30 subsection (eee) of this section, and (iii) had qualified gross income 31 no greater than two hundred [seventy-five] fifty thousand dollars. 32 [Provided, however, that no credit shall be allowed if any of the33following apply:34(i) Such property is located in an independent school district that is35subject to the provisions of section two thousand twenty-three-a of the36education law and that has adopted a budget in excess of the tax levy37limit prescribed by that section. To render its taxpayers eligible for38the credit authorized by this subsection, the school district must39certify its compliance with such tax levy limit in the manner prescribed40by subdivision two of section two thousand twenty-three-b of the educa-41tion law.42(ii) Such property is located in a city with a dependent school43district that is subject to the provisions of section three-c of the44general municipal law and that has adopted a budget in excess of the tax45levy limit prescribed by that section. To render its taxpayers eligible46for the credit authorized by this subsection, the city must certify its47compliance with such tax levy limit in the manner prescribed by subdivi-48sion two of section three-d of the general municipal law.49(iii) Such property is located in the city of New York.] 50 (3) Amount of credit. (a) [For the two thousand sixteen taxable year51(i) for a taxpayer residing in real property located within the metro-52politan commuter transportation district (MCTD) and outside the city of53New York, the amount of the credit shall be $130; (ii) for a taxpayerA. 9009--B 47 1residing in real property located outside the MCTD, the amount of the2credit shall be $185.3(b) For the two thousand seventeen, two thousand eighteen and two4thousand nineteen taxable years (i)] For a taxpayer who owned and prima- 5 rily resided in real property receiving the basic STAR exemption or who 6 received the basic STAR credit, the amount of the credit shall equal the 7 STAR tax savings associated with such basic STAR exemption in the two 8 thousand twenty-one--two thousand twenty-two school year, multiplied by 9 the following percentage: 10 [(A) for the two thousand seventeen taxable year:11Qualified Gross Income Percentage12Not over $75,000 28%13Over $75,000 but not over $150,000 20.5%14Over $150,000 but not over $200,000 13%15Over $200,000 but not over $275,000 5.5%16Over $275,000 No credit17(B) for the two thousand eighteen taxable year:18Qualified Gross Income Percentage19Not over $75,000 60%20Over $75,000 but not over $150,000 42.5%21Over $150,000 but not over $200,000 25%22Over $200,000 but not over $275,000 7.5%23Over $275,000 No credit24(C) for the two thousand nineteen taxable year:] 25 (i) For a taxpayer whose primary residence is located outside the city 26 of New York: 27 Qualified Gross Income Percentage 28 Not over $75,000 [85%] 163% 29 Over $75,000 but not over $150,000 [60%] 115% 30 Over $150,000 but not over $200,000 [35%] 66% 31 Over $200,000 but not over [10%] 18% 32 [$275,000] $250,000 33 Over [$275,000] $250,000 No credit 34 (ii) For a taxpayer whose primary residence is located within the city 35 of New York: 36 Qualified Gross Income Percentage 37 Not over $75,000 125% 38 Over $75,000 but not over $150,000 115% 39 Over $150,000 but not over $200,000 105% 40 Over $200,000 but not over $250,000 100% 41 Over $250,000 No credit 42 [(c)] (b) For a taxpayer who owned and primarily resided in real prop- 43 erty receiving the enhanced STAR exemption or who received the enhanced 44 STAR credit, the amount of the credit shall equal the STAR tax savings 45 associated with such enhanced STAR exemption in the two thousand twen- 46 ty-one--two thousand twenty-two school year, multiplied by [the follow-47ing percentage:48Taxable Year Percentage49two thousand seventeen 12%50two thousand eighteen 26%51two thousand nineteen 34%] 52 sixty-six percent if the taxpayer's primary residence is located outside 53 the city of New York, or one hundred ten percent if the taxpayer's 54 primary residence is located within the city of New York. 55 [(d)] (c) In no case may the amount of the credit allowed under this 56 subsection exceed the school district taxes due with respect to theA. 9009--B 48 1 residence for that school year, nor shall any credit be allowed under 2 this subsection if the amount determined pursuant to this paragraph is 3 less than one hundred dollars. 4 (4) For purposes of this subsection: 5 (a) "Qualified gross income" means the adjusted gross income of the 6 qualified taxpayer for the taxable year as reported for federal income 7 tax purposes, or which would be reported as adjusted gross income if a 8 federal income tax return were required to be filed. In computing quali- 9 fied gross income, the net amount of loss reported on Federal Schedule 10 C, D, E, or F shall not exceed three thousand dollars per schedule. In 11 addition, the net amount of any other separate category of loss shall 12 not exceed three thousand dollars. The aggregate amount of all losses 13 included in computing qualified gross income shall not exceed fifteen 14 thousand dollars. 15 (b) "STAR tax savings" means the tax savings attributable to the basic 16 or enhanced STAR exemption, whichever is applicable, within a portion of 17 a school district, as determined by the commissioner pursuant to subdi- 18 vision two of section thirteen hundred six-a of the real property tax 19 law. 20 [(c) "Metropolitan commuter transportation district" or "MCTD" means21the metropolitan commuter transportation district as defined in section22twelve hundred sixty-two of the public authorities law.] 23 § 2. This act shall take effect immediately. 24 PART CC 25 Intentionally Omitted 26 PART DD 27 Section 1. Section 509-a of the racing, pari-mutuel wagering and 28 breeding law, as amended by section 1 of part LLL of chapter 59 of the 29 laws of 2021, is amended to read as follows: 30 § 509-a. Capital acquisition fund. 1. The corporation may create and 31 establish a capital acquisition fund for the purpose of financing the 32 acquisition, construction or equipping of offices, facilities or prem- 33 ises of the corporation. Such capital acquisition fund shall consist of 34 (i) the amounts specified pursuant to subdivision three-a of section 35 five hundred thirty-two of this chapter; and (ii) contributions from the 36 corporation's pari-mutuel wagering pools, subject to the following limi- 37 tations: 38 a. no contribution shall exceed the amount of one percent of the total 39 pari-mutuel wagering pools for the quarter in which the contribution is 40 made; 41 b. no contribution shall reduce the amount of quarterly net revenues, 42 exclusive of surcharge revenues, to an amount less than fifty percent of 43 such net revenues; and 44 c. the balance of the fund shall not exceed the lesser of one percent 45 of total pari-mutuel wagering pools for the previous twelve months or 46 the undepreciated value of the corporation's offices, facilities and 47 premises. 48 2. Notwithstanding any other provision of law or regulation to the 49 contrary, from April nineteenth, two thousand twenty-one to March thir- 50 ty-first, two thousand twenty-two, and for each state fiscal year there- 51 after, twenty-three percent of the funds, not to exceed two and one-halfA. 9009--B 49 1 million dollars, in the Catskill off-track betting corporation's capital 2 acquisition fund and twenty-three percent of the funds, not to exceed 3 four hundred forty thousand dollars, in the Capital off-track betting 4 corporation's capital acquisition fund established pursuant to this 5 section shall also be available to such off-track betting corporation 6 for the purposes of statutory obligations, payroll, and expenditures 7 necessary to accept authorized wagers. 8 3. The Catskill off-track betting corporation and the Capital off- 9 track betting corporation shall make a report to the governor, speaker 10 of the assembly, temporary president of the senate and the commission 11 detailing the actual use of the funds made available in the capital 12 acquisition fund. Such report shall include, but not be limited to, any 13 impact on employment levels since utilizing the funds, the status of any 14 statutory obligations, an accounting of the use of such funds, and any 15 other information as deemed necessary by the commission. Such report 16 shall be due no later than the [first day of April two thousand twenty-17two] last day of the fiscal year in which the monies were spent. 18 § 2. Section 2 of part LLL of chapter 59 of the laws of 2021 amending 19 the racing, pari-mutuel wagering and breeding law, relating to the 20 utilization of funds in the Catskill and Capital regions off-track 21 betting corporation's capital acquisition funds, is amended to read 22 as follows: 23 § 2. This act shall take effect immediately and shall expire and be 24 deemed repealed [one year] two years after such date. 25 § 3. This act shall take effect immediately. 26 PART EE 27 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 28 racing, pari-mutuel wagering and breeding law, as amended by section 1 29 of part DD of chapter 59 of the laws of 2021, is amended to read as 30 follows: 31 (a) Any racing association or corporation or regional off-track 32 betting corporation, authorized to conduct pari-mutuel wagering under 33 this chapter, desiring to display the simulcast of horse races on which 34 pari-mutuel betting shall be permitted in the manner and subject to the 35 conditions provided for in this article may apply to the commission for 36 a license so to do. Applications for licenses shall be in such form as 37 may be prescribed by the commission and shall contain such information 38 or other material or evidence as the commission may require. No license 39 shall be issued by the commission authorizing the simulcast transmission 40 of thoroughbred races from a track located in Suffolk county. The fee 41 for such licenses shall be five hundred dollars per simulcast facility 42 and for account wagering licensees that do not operate either a simul- 43 cast facility that is open to the public within the state of New York or 44 a licensed racetrack within the state, twenty thousand dollars per year 45 payable by the licensee to the commission for deposit into the general 46 fund. Except as provided in this section, the commission shall not 47 approve any application to conduct simulcasting into individual or group 48 residences, homes or other areas for the purposes of or in connection 49 with pari-mutuel wagering. The commission may approve simulcasting into 50 residences, homes or other areas to be conducted jointly by one or more 51 regional off-track betting corporations and one or more of the follow- 52 ing: a franchised corporation, thoroughbred racing corporation or a 53 harness racing corporation or association; provided (i) the simulcasting 54 consists only of those races on which pari-mutuel betting is authorizedA. 9009--B 50 1 by this chapter at one or more simulcast facilities for each of the 2 contracting off-track betting corporations which shall include wagers 3 made in accordance with section one thousand fifteen, one thousand 4 sixteen and one thousand seventeen of this article; provided further 5 that the contract provisions or other simulcast arrangements for such 6 simulcast facility shall be no less favorable than those in effect on 7 January first, two thousand five; (ii) that each off-track betting 8 corporation having within its geographic boundaries such residences, 9 homes or other areas technically capable of receiving the simulcast 10 signal shall be a contracting party; (iii) the distribution of revenues 11 shall be subject to contractual agreement of the parties except that 12 statutory payments to non-contracting parties, if any, may not be 13 reduced; provided, however, that nothing herein to the contrary shall 14 prevent a track from televising its races on an irregular basis primari- 15 ly for promotional or marketing purposes as found by the commission. For 16 purposes of this paragraph, the provisions of section one thousand thir- 17 teen of this article shall not apply. Any agreement authorizing an 18 in-home simulcasting experiment commencing prior to May fifteenth, nine- 19 teen hundred ninety-five, may, and all its terms, be extended until June 20 thirtieth, two thousand [twenty-two] twenty-three; provided, however, 21 that any party to such agreement may elect to terminate such agreement 22 upon conveying written notice to all other parties of such agreement at 23 least forty-five days prior to the effective date of the termination, 24 via registered mail. Any party to an agreement receiving such notice of 25 an intent to terminate, may request the commission to mediate between 26 the parties new terms and conditions in a replacement agreement between 27 the parties as will permit continuation of an in-home experiment until 28 June thirtieth, two thousand [twenty-two] twenty-three; and (iv) no 29 in-home simulcasting in the thoroughbred special betting district shall 30 occur without the approval of the regional thoroughbred track. 31 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 32 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 33 section 2 of part DD of chapter 59 of the laws of 2021, is amended to 34 read as follows: 35 (iii) Of the sums retained by a receiving track located in Westchester 36 county on races received from a franchised corporation, for the period 37 commencing January first, two thousand eight and continuing through June 38 thirtieth, two thousand [twenty-two] twenty-three, the amount used 39 exclusively for purses to be awarded at races conducted by such receiv- 40 ing track shall be computed as follows: of the sums so retained, two and 41 one-half percent of the total pools. Such amount shall be increased or 42 decreased in the amount of fifty percent of the difference in total 43 commissions determined by comparing the total commissions available 44 after July twenty-first, nineteen hundred ninety-five to the total 45 commissions that would have been available to such track prior to July 46 twenty-first, nineteen hundred ninety-five. 47 § 3. The opening paragraph of subdivision 1 of section 1014 of the 48 racing, pari-mutuel wagering and breeding law, as amended by section 3 49 of part DD of chapter 59 of the laws of 2021, is amended to read as 50 follows: 51 The provisions of this section shall govern the simulcasting of races 52 conducted at thoroughbred tracks located in another state or country on 53 any day during which a franchised corporation is conducting a race meet- 54 ing in Saratoga county at Saratoga thoroughbred racetrack until June 55 thirtieth, two thousand [twenty-two] twenty-three and on any day regard- 56 less of whether or not a franchised corporation is conducting a raceA. 9009--B 51 1 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 2 thirtieth, two thousand [twenty-two] twenty-three. On any day on which a 3 franchised corporation has not scheduled a racing program but a 4 thoroughbred racing corporation located within the state is conducting 5 racing, each off-track betting corporation branch office and each simul- 6 casting facility licensed in accordance with section one thousand seven 7 (that has entered into a written agreement with such facility's repre- 8 sentative horsemen's organization, as approved by the commission), one 9 thousand eight, or one thousand nine of this article shall be authorized 10 to accept wagers and display the live simulcast signal from thoroughbred 11 tracks located in another state or foreign country subject to the 12 following provisions: 13 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 14 and breeding law, as amended by section 4 of part DD of chapter 59 of 15 the laws of 2021, is amended to read as follows: 16 1. The provisions of this section shall govern the simulcasting of 17 races conducted at harness tracks located in another state or country 18 during the period July first, nineteen hundred ninety-four through June 19 thirtieth, two thousand [twenty-two] twenty-three. This section shall 20 supersede all inconsistent provisions of this chapter. 21 § 5. The opening paragraph of subdivision 1 of section 1016 of the 22 racing, pari-mutuel wagering and breeding law, as amended by section 5 23 of part DD of chapter 59 of the laws of 2021, is amended to read as 24 follows: 25 The provisions of this section shall govern the simulcasting of races 26 conducted at thoroughbred tracks located in another state or country on 27 any day during which a franchised corporation is not conducting a race 28 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 29 thirtieth, two thousand [twenty-two] twenty-three. Every off-track 30 betting corporation branch office and every simulcasting facility 31 licensed in accordance with section one thousand seven that have entered 32 into a written agreement with such facility's representative horsemen's 33 organization as approved by the commission, one thousand eight or one 34 thousand nine of this article shall be authorized to accept wagers and 35 display the live full-card simulcast signal of thoroughbred tracks 36 (which may include quarter horse or mixed meetings provided that all 37 such wagering on such races shall be construed to be thoroughbred races) 38 located in another state or foreign country, subject to the following 39 provisions; provided, however, no such written agreement shall be 40 required of a franchised corporation licensed in accordance with section 41 one thousand seven of this article: 42 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 43 wagering and breeding law, as amended by section 6 of part DD of chapter 44 59 of the laws of 2021, is amended to read as follows: 45 Notwithstanding any other provision of this chapter, for the period 46 July twenty-fifth, two thousand one through September eighth, two thou- 47 sand [twenty-one] twenty-two, when a franchised corporation is conduct- 48 ing a race meeting within the state at Saratoga Race Course, every off- 49 track betting corporation branch office and every simulcasting facility 50 licensed in accordance with section one thousand seven (that has entered 51 into a written agreement with such facility's representative horsemen's 52 organization as approved by the commission), one thousand eight or one 53 thousand nine of this article shall be authorized to accept wagers and 54 display the live simulcast signal from thoroughbred tracks located in 55 another state, provided that such facility shall accept wagers on races 56 run at all in-state thoroughbred tracks which are conducting racingA. 9009--B 52 1 programs subject to the following provisions; provided, however, no such 2 written agreement shall be required of a franchised corporation licensed 3 in accordance with section one thousand seven of this article. 4 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 5 racing, pari-mutuel wagering and breeding law and other laws relating to 6 simulcasting, as amended by section 7 of part DD of chapter 59 of the 7 laws of 2021, is amended to read as follows: 8 § 32. This act shall take effect immediately and the pari-mutuel tax 9 reductions in section six of this act shall expire and be deemed 10 repealed on July 1, [2022] 2023; provided, however, that nothing 11 contained herein shall be deemed to affect the application, qualifica- 12 tion, expiration, or repeal of any provision of law amended by any 13 section of this act, and such provisions shall be applied or qualified 14 or shall expire or be deemed repealed in the same manner, to the same 15 extent and on the same date as the case may be as otherwise provided by 16 law; provided further, however, that sections twenty-three and twenty- 17 five of this act shall remain in full force and effect only until May 1, 18 1997 and at such time shall be deemed to be repealed. 19 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 20 racing, pari-mutuel wagering and breeding law and other laws relating to 21 simulcasting and the imposition of certain taxes, as amended by section 22 8 of part DD of chapter 59 of the laws of 2021, is amended to read as 23 follows: 24 § 54. This act shall take effect immediately; provided, however, 25 sections three through twelve of this act shall take effect on January 26 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 27 ing law, as added by section thirty-eight of this act, shall expire and 28 be deemed repealed on July 1, [2022] 2023; and section eighteen of this 29 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 30 two of this act shall take effect as of the same date as chapter 772 of 31 the laws of 1989 took effect. 32 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 33 pari-mutuel wagering and breeding law, as amended by section 9 of part 34 DD of chapter 59 of the laws of 2021, is amended to read as follows: 35 (a) The franchised corporation authorized under this chapter to 36 conduct pari-mutuel betting at a race meeting or races run thereat shall 37 distribute all sums deposited in any pari-mutuel pool to the holders of 38 winning tickets therein, provided such tickets are presented for payment 39 before April first of the year following the year of their purchase, 40 less an amount that shall be established and retained by such franchised 41 corporation of between twelve to seventeen percent of the total deposits 42 in pools resulting from on-track regular bets, and fourteen to twenty- 43 one percent of the total deposits in pools resulting from on-track 44 multiple bets and fifteen to twenty-five percent of the total deposits 45 in pools resulting from on-track exotic bets and fifteen to thirty-six 46 percent of the total deposits in pools resulting from on-track super 47 exotic bets, plus the breaks. The retention rate to be established is 48 subject to the prior approval of the commission. 49 Such rate may not be changed more than once per calendar quarter to be 50 effective on the first day of the calendar quarter. "Exotic bets" and 51 "multiple bets" shall have the meanings set forth in section five 52 hundred nineteen of this chapter. "Super exotic bets" shall have the 53 meaning set forth in section three hundred one of this chapter. For 54 purposes of this section, a "pick six bet" shall mean a single bet or 55 wager on the outcomes of six races. The breaks are hereby defined as the 56 odd cents over any multiple of five for payoffs greater than one dollarA. 9009--B 53 1 five cents but less than five dollars, over any multiple of ten for 2 payoffs greater than five dollars but less than twenty-five dollars, 3 over any multiple of twenty-five for payoffs greater than twenty-five 4 dollars but less than two hundred fifty dollars, or over any multiple of 5 fifty for payoffs over two hundred fifty dollars. Out of the amount so 6 retained there shall be paid by such franchised corporation to the 7 commissioner of taxation and finance, as a reasonable tax by the state 8 for the privilege of conducting pari-mutuel betting on the races run at 9 the race meetings held by such franchised corporation, the following 10 percentages of the total pool for regular and multiple bets five percent 11 of regular bets and four percent of multiple bets plus twenty percent of 12 the breaks; for exotic wagers seven and one-half percent plus twenty 13 percent of the breaks, and for super exotic bets seven and one-half 14 percent plus fifty percent of the breaks. 15 For the period April first, two thousand one through December thirty- 16 first, two thousand [twenty-two] twenty-three, such tax on all wagers 17 shall be one and six-tenths percent, plus, in each such period, twenty 18 percent of the breaks. Payment to the New York state thoroughbred breed- 19 ing and development fund by such franchised corporation shall be one- 20 half of one percent of total daily on-track pari-mutuel pools resulting 21 from regular, multiple and exotic bets and three percent of super exotic 22 bets and for the period April first, two thousand one through December 23 thirty-first, two thousand [twenty-two] twenty-three, such payment shall 24 be seven-tenths of one percent of regular, multiple and exotic pools. 25 § 10. This act shall take effect immediately. 26 PART FF 27 Section 1. Paragraph 1 of subsection (d) of section 606 of the tax 28 law, as amended by section 1 of part Q of chapter 63 of the laws of 29 2000, is amended to read as follows: 30 (1) General. A taxpayer shall be allowed a credit as provided herein 31 equal to (i) the applicable percentage of the earned income credit 32 allowed under section thirty-two of the internal revenue code for the 33 same taxable year, (ii) reduced by the credit permitted under subsection 34 (b) of this section. 35 The applicable percentage shall be (i) seven and one-half percent for 36 taxable years beginning in nineteen hundred ninety-four, (ii) ten 37 percent for taxable years beginning in nineteen hundred ninety-five, 38 (iii) twenty percent for taxable years beginning after nineteen hundred 39 ninety-five and before two thousand, (iv) twenty-two and one-half 40 percent for taxable years beginning in two thousand, (v) twenty-five 41 percent for taxable years beginning in two thousand one, (vi) twenty- 42 seven and one-half percent for taxable years beginning in two thousand 43 two, [and] (vii) thirty percent for taxable years beginning in two thou- 44 sand three, and (viii) thirty-seven and one-half percent for taxable 45 years beginning in two thousand twenty-two and thereafter. [Provided,46however, that if the reversion event, as defined in this paragraph,47occurs, the applicable percentage shall be twenty percent for taxable48years ending on or after the date on which the reversion event occurred.49The reversion event shall be deemed to have occurred on the date on50which federal action, including but not limited to, administrative,51statutory or regulatory changes, materially reduces or eliminates New52York state's allocation of the federal temporary assistance for needy53families block grant, or materially reduces the ability of the state to54spend federal temporary assistance for needy families block grant fundsA. 9009--B 54 1for the earned income credit or to apply state general fund spending on2the earned income credit toward the temporary assistance for needy fami-3lies block grant maintenance of effort requirement, and the commissioner4of the office of temporary and disability assistance shall certify the5date of such event to the commissioner of taxation and finance, the6director of the division of the budget, the speaker of the assembly and7the temporary president of the senate.] Provided, however, for taxable 8 years beginning in two thousand twenty-two and thereafter, in the case 9 of an eligible individual with no qualifying children, as such term is 10 defined in section 32 of the internal revenue code, notwithstanding 11 section 32(c)(3)(D), the applicable percentage shall be sixty percent. 12 Furthermore, an individual otherwise eligible but for the requirement 13 under section 32(m) of the internal revenue code shall be eligible for 14 this credit. 15 § 2. The tax law is amended by adding a new section 679 to read as 16 follows: 17 § 679. Advance payment of earned income credit. (a) General rule. 18 Except as otherwise provided in this chapter, the commissioner shall 19 provide for the prepayment of the earned income credit to qualifying 20 taxpayers, if such taxpayer elects to receive such advanced payments. 21 (b) Earned income eligibility application. For purposes of this arti- 22 cle, an earned income eligibility application is a statement furnished 23 by a taxpayer to the commissioner which: 24 (1) certifies that the taxpayer received an earned income credit or an 25 enhanced earned income credit provided pursuant to subsection (d) or 26 (d-1) of section six hundred six of this article for the most recently 27 available taxable year; 28 (2) includes information on any substantial change in income or change 29 in filing status that would materially change a taxpayer's eligibility 30 for the earned income credit; and 31 (3) states whether the employee's spouse has filed an earned income 32 eligibility application for the taxable year. 33 (c) Earned income advance amount. Three advanced payments shall be 34 made to such qualifying taxpayer that files an earned income eligibility 35 application with the department by the first of June in any taxable 36 year. An estimated annual tax credit shall be determined by the commis- 37 sioner in advance of the first payment which shall be equal to the cred- 38 it provided for the most recently available taxable year as adjusted 39 based on changes in income or filing status as reported in the taxpay- 40 er's earned income eligibility application. Prior to disbursement, the 41 commissioner is authorized to verify that the qualifying taxpayer's 42 status has not changed. The three advanced payments for a taxable year 43 shall be equal to twenty-five percent of the estimated annual tax cred- 44 it, and shall be disbursed on the thirtieth of June, the thirtieth of 45 September, and the thirty-first of December, of the taxable year. The 46 remainder of the earned income credit amount shall be reconciled upon 47 the filing of the taxpayer's final return for the taxable year. Such 48 advanced payments shall, to the extent practicable, be made available 49 via direct deposit and via electronic benefit transfer (EBT) card. 50 (d) Form and contents of application. Earned income eligibility 51 application shall be in such form and contain such information as the 52 commissioner may determine and prescribe. 53 (e) Notification. (1) The commissioner shall notify all taxpayers who 54 have received a refund of the credit pursuant to subsection (d) or (d-1) 55 of section six hundred six of this article based on the most recent tax 56 return or record in writing of the availability of earned income advanceA. 9009--B 55 1 amounts under this section, no later than May first of the taxable year. 2 Such written or electronic notification shall include a clearly labeled 3 section or withholding forms and a separate handout with information 4 about the advanced payment of the earned income credit in the six most 5 common languages spoken by individuals in this state. 6 (2) The commissioner shall provide information of the availability of 7 earned income advance amounts under this section to tax preparers, 8 accountants and organizations that assist individuals in tax prepara- 9 tion. Such information shall be distributed to qualifying individuals. 10 (3) Any increase in tax under this subsection shall not be treated as 11 tax imposed by this chapter for purposes of determining the amount of 12 any credit, other than the credit allowed by subsection (d) or (d-1) of 13 section six hundred six of this article, allowable under this article. 14 § 3. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as 15 amended by section 1 of part P of chapter 59 of the laws of 2018, is 16 amended to read as follows: 17 (1) A resident taxpayer shall be allowed a credit as provided herein 18 equal to the greater of one hundred dollars times the number of qualify- 19 ing children of the taxpayer or the applicable percentage of the child 20 tax credit allowed the taxpayer under section twenty-four of the inter- 21 nal revenue code for the same taxable year for each qualifying child. 22 Provided, however, in the case of a taxpayer whose federal adjusted 23 gross income exceeds the applicable threshold amount set forth by 24 section 24(b)(2) of the Internal Revenue Code, the credit shall only be 25 equal to the applicable percentage of the child tax credit allowed the 26 taxpayer under section 24 of the Internal Revenue Code for each qualify- 27 ing child. For the purposes of this subsection, a qualifying child shall 28 be a child who meets the definition of qualified child under section 29 24(c) of the internal revenue code [and is at least four years of age]. 30 The applicable percentage shall be thirty-three percent. For purposes of 31 this subsection, any reference to section 24 of the Internal Revenue 32 Code shall be a reference to such section as it existed immediately 33 prior to the enactment of Public Law 115-97. Provided, however, for 34 taxable years beginning in two thousand twenty-two and thereafter, for a 35 resident taxpayer with federal adjusted gross income of less than one 36 hundred thousand dollars, the applicable percentage shall be the appli- 37 cable percentage otherwise computed under this paragraph multiplied by a 38 factor as follows: 39 If federal adjusted gross 40 income is: The factor is: 41 Less than $10,000 2.00 42 At least $10,000 and less 43 than $25,000 1.75 44 At least $25,000 and less 45 than $50,000 1.50 46 At least $50,000 and less 47 than $100,000 1.25 48 § 4. This act shall take effect immediately and shall apply to taxable 49 years beginning on or after January 1, 2022. 50 PART GG 51 Section 1. Subsection (b) of section 612 of the tax law is amended by 52 adding a new paragraph 44 to read as follows: 53 (44) Any income, gain, loss and deduction, to the extent it is 54 included in federal adjusted gross income and is, when combined andA. 9009--B 56 1 combined with additions for federal depreciation required by paragraph 2 eight of this subsection and subtractions for New York allowed by 3 subsection (k) of this section, less than zero, of an individual or 4 trust from a qualified pass-through manufacturer, as defined in para- 5 graph forty-six of subsection (c) of this section. 6 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 7 added by section 1 of part Y of chapter 59 of the laws of 2013, is 8 amended and a new paragraph 46 is added to read as follows: 9 (39) In the case of a taxpayer who is a small business who has busi- 10 ness income and/or farm income as defined in the laws of the United 11 States, an amount equal to three percent of the net items of income, 12 gain, loss and deduction attributable to such business or farm entering 13 into federal adjusted gross income, but not less than zero, for taxable 14 years beginning after two thousand thirteen, an amount equal to three 15 and three-quarters percent of the net items of income, gain, loss and 16 deduction attributable to such business or farm entering into federal 17 adjusted gross income, but not less than zero, for taxable years begin- 18 ning after two thousand fourteen, and an amount equal to five percent of 19 the net items of income, gain, loss and deduction attributable to such 20 business or farm entering into federal adjusted gross income, but not 21 less than zero, for taxable years beginning after two thousand fifteen. 22 For the purposes of this paragraph, the term small business shall mean a 23 sole proprietor or a farm business who employs one or more persons 24 during the taxable year and who has net business income or net farm 25 income of less than two hundred fifty thousand dollars. For the 26 purposes of this paragraph, the term small business shall exclude any 27 business that is a qualified pass-through manufacturer, as defined in 28 paragraph forty-six of this subsection for the current tax year. 29 (46) (A) Any income, gain, loss and deduction, to the extent included 30 in federal adjusted gross income and is, when combined and combined with 31 additions for federal depreciation required by paragraph eight of this 32 subsection and subtractions for New York allowed by subsection (k) of 33 this section, greater than zero, of an individual or trust from a quali- 34 fied pass-through manufacturer. Income from a qualified pass-through 35 manufacturer shall include wages of an individual controlling ten 36 percent or more of the qualified business or entity. Income or loss from 37 a qualified pass-through manufacturer shall not include an amount 38 representing reasonable compensation for personal services, as defined 39 in the internal revenue code section one hundred sixty-two regulations, 40 for an individual controlling ten percent or more of the qualified busi- 41 ness or entity. 42 (B) The qualified pass-through manufacturer may be organized as a sole 43 proprietorship, a partnership, a limited liability company electing to 44 be treated as a partnership or sole proprietorship, or an S corporation. 45 (C) For the purposes of this subsection, the term qualified pass- 46 through manufacturer shall mean a business that is a qualified New York 47 manufacturer, as defined by subparagraph (vi) of paragraph (a) of subdi- 48 vision one of section two hundred ten of this chapter, except that the 49 term "gross receipts" shall be replaced by "business receipts" in deter- 50 mining whether the business is "principally engaged" in manufacturing. A 51 qualified pass-through manufacturer shall not include a business that is 52 currently participating in the START-UP NY program. 53 § 3. Paragraph 2 of subsection (a) of section 606 of the tax law is 54 amended by adding a new subparagraph (B-1) to read as follows: 55 (B-1) Property placed in service during the tax year that is otherwise 56 eligible for the investment tax credit described in subparagraph (A) ofA. 9009--B 57 1 this paragraph, will not be eligible for the investment tax credit if 2 the use of the property is by a qualified pass-through manufacturer, as 3 defined in paragraph forty-six of subsection (c) of section six hundred 4 twelve of this article for the current tax year. 5 § 4. Subdivision 1 of section 210-B of the tax law is amended by 6 adding a new paragraph (g) to read as follows: 7 (g) Property placed in service during the tax year that is otherwise 8 eligible for the investment tax credit described in this subdivision, 9 will not be eligible for the investment tax credit if the use of the 10 property is by a qualified New York manufacturer, as defined in subpara- 11 graph (vi) of paragraph (a) of subsection one of section two hundred ten 12 of this article for the current tax year. 13 § 5. For purposes of determining the modifications of paragraphs 39 14 and 46 of subsection (c) of section 612 of the tax law and the invest- 15 ment tax credit disallowance of subparagraph (B-1) of paragraph 2 of 16 subsection (a) of section 606 of the tax law, the amounts shall be 17 multiplied by the following percentages: (a) for tax years beginning on 18 or after January 1, 2022: thirty-three percent; (b) for tax years begin- 19 ning on or after January 1, 2023: sixty-six percent; and (c) for tax 20 years beginning on or after January 1, 2024: one hundred percent. 21 § 6. This act shall take effect immediately and shall apply to tax 22 years beginning on or after January 1, 2022. 23 PART HH 24 Section 1. Paragraph (a) of subdivision 26 of section 210-B of the tax 25 law, as amended by section 2 of part RR of chapter 59 of the laws of 26 2018, subparagraph (i) as amended by section 2 of part CCC of chapter 59 27 of the laws of 2021, and clause (B) of subparagraph (ii) as added by 28 section 17 of part A of chapter 59 of the laws of 2014, is amended and a 29 new paragraph (g) is added to read as follows: 30 (a) Application of credit. (i) For taxable years beginning on or 31 after January first, two thousand ten, and before January first, two 32 thousand [twenty-five] thirty-two, a taxpayer shall be allowed a credit 33 as hereinafter provided, against the tax imposed by this article, in an 34 amount equal to one hundred percent of the amount of credit allowed the 35 taxpayer for the same taxable year with respect to a certified historic 36 structure, and one hundred fifty percent of the amount of credit allowed 37 the taxpayer with respect to a certified historic structure that is a 38 small project, under internal revenue code section 47(c)(3), determined 39 without regard to ratably allocating the credit over a five year period 40 as required by subsection (a) of such section 47, with respect to a 41 certified historic structure located within the state. Provided, howev- 42 er, the credit shall not exceed five million dollars. 43 (ii) (A) For taxable years beginning on or after January first, two 44 thousand [twenty-five] thirty-two, a taxpayer shall be allowed a credit 45 as hereinafter provided, against the tax imposed by this article, in an 46 amount equal to thirty percent of the amount of credit allowed the 47 taxpayer for the same taxable year determined without regard to ratably 48 allocating the credit over a five year period as required by subsection 49 (a) of section 47 of the internal revenue code, with respect to a certi- 50 fied historic structure under subsection (c)(3) of section 47 of the 51 internal revenue code with respect to a certified historic structure 52 located within the state. Provided, however, the credit shall not exceed 53 one hundred thousand dollars.A. 9009--B 58 1 (B) If the taxpayer is a partner in a partnership or a shareholder in 2 a New York S corporation, then the credit caps imposed in [subparagraph] 3 clause (A) of this [paragraph] subparagraph shall be applied at the 4 entity level, so that the aggregate credit allowed to all the partners 5 or shareholders of each such entity in the taxable year does not exceed 6 the credit cap that is applicable in that taxable year. 7 (g) The commissioner shall report annually, on or before the first day 8 of November, on the aggregate amount of credits claimed and awarded 9 pursuant to this subdivision on returns filed during the preceding 10 calendar year. Such report shall be provided to the governor, temporary 11 president of the senate, speaker of the assembly, chair of the senate 12 finance committee and chair of the assembly ways and means committee and 13 shall be made publicly available on the department's website. 14 § 2. Section 14.05 of the parks, recreation and historic preservation 15 law is amended by adding a new subdivision 5 to read as follows: 16 5. (a) The commissioner shall report annually, on or before the 17 first day of November, on the tax credit projects applied for in 18 accordance with subdivision twenty-six of section two hundred ten-B, 19 subsection (oo) of section six hundred six, and subdivision (y) of 20 section one thousand five hundred eleven of the tax law on returns 21 filed during the preceding calendar year. Such report shall be 22 provided to the governor, temporary president of the senate, speaker 23 of the assembly, chair of the senate finance committee and chair of 24 the assembly ways and means committee, shall be made publicly available 25 on the office's website, and shall include the following information: 26 (i) the number and value of tax credit projects applied for during the 27 state fiscal year, organized by municipality and county, and project 28 size; 29 (ii) the number and value of tax credit projects certified by the 30 national park service during the state fiscal year, organized by munici- 31 pality and county, and project size; 32 (iii) the total value of credits certified annually for each of the 33 taxable years beginning on or after January first, two thousand seven to 34 the present, by municipality and county; 35 (iv) the number of housing units before and after rehabilitation; 36 (v) the number of low-moderate housing units before and after rehabil- 37 itation; and 38 (vi) the number of projects certified for both federal and state cred- 39 its, and the number of projects certified for federal credits only. 40 (b) The commissioner shall report annually, on or before the first 41 day of November, on the tax credit projects applied for pursuant to 42 subsection (pp) of section six hundred six of the tax law on returns 43 filed during the preceding calendar year. Such report shall be 44 provided to the governor, temporary president of the senate, speaker 45 of the assembly, chair of the senate finance committee and chair of 46 the assembly ways and means committee, shall be made publicly available 47 on the office's website, and shall include the following information: 48 (i) the number and value of tax credit projects applied for during the 49 state fiscal year, organized by municipality and county, and project 50 size; 51 (ii) the number and value of tax credit projects certified by 52 the office during the state fiscal year, organized by municipality and 53 county, and project size; 54 (iii) the total value of credits certified annually for each of the 55 taxable years beginning on or after January first, two thousand seven 56 to the present, by municipality and county;A. 9009--B 59 1 (iv) the number of housing units before and after rehabilitation; and 2 (v) the number of projects certified for state credits by the office. 3 § 3. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 4 of the tax law, as amended by section 1 of part CCC of chapter 59 of the 5 laws of 2021, is amended and a new paragraph 7 is added to read as 6 follows: 7 (A) For taxable years beginning on or after January first, two thou- 8 sand ten and before January first, two thousand [twenty-five] 9 thirty-two, a taxpayer shall be allowed a credit as hereinafter 10 provided, against the tax imposed by this article, in an amount equal to 11 one hundred percent of the amount of credit allowed the taxpayer with 12 respect to a certified historic structure, and one hundred fifty percent 13 of the amount of credit allowed the taxpayer with respect to a certified 14 historic structure that is a small project, under internal revenue code 15 section 47(c)(3), determined without regard to ratably allocating the 16 credit over a five year period as required by subsection (a) of such 17 section 47, with respect to a certified historic structure located with- 18 in the state. Provided, however, the credit shall not exceed five 19 million dollars. For taxable years beginning on or after January first, 20 two thousand [twenty-five] thirty-two, a taxpayer shall be allowed a 21 credit as hereinafter provided, against the tax imposed by this article, 22 in an amount equal to thirty percent of the amount of credit allowed the 23 taxpayer with respect to a certified historic structure under internal 24 revenue code section 47(c)(3), determined without regard to ratably 25 allocating the credit over a five year period as required by subsection 26 (a) of such section 47, with respect to a certified historic structure 27 located within the state; provided, however, the credit shall not exceed 28 one hundred thousand dollars. 29 (7) The commissioner shall report annually, on or before the first day 30 of November, on the aggregate amount of credits claimed and awarded 31 pursuant to this subsection on returns filed during the preceding calen- 32 dar year. Such report shall be provided to the governor, temporary pres- 33 ident of the senate, speaker of the assembly, chair of the senate 34 finance committee and chair of the assembly ways and means committee and 35 shall be made publicly available on the department's website. 36 § 4. Paragraph 2 of subsection (pp) of section 606 of the tax law, as 37 amended by section 4 of part RR of chapter 59 of the laws of 2018, is 38 amended and a new paragraph 13 is added to read as follows: 39 (2) (A) With respect to any particular residence of a taxpayer, the 40 credit allowed under paragraph one of this subsection shall not exceed 41 fifty thousand dollars for taxable years beginning on or after January 42 first, two thousand ten and before January first, two thousand [twenty-43five] thirty-two and twenty-five thousand dollars for taxable years 44 beginning on or after January first, two thousand [twenty-five] thirty- 45 two. In the case of a husband and wife, the amount of the credit shall 46 be divided between them equally or in such other manner as they may both 47 elect. If a taxpayer incurs qualified rehabilitation expenditures in 48 relation to more than one residence in the same year, the total amount 49 of credit allowed under paragraph one of this subsection for all such 50 expenditures shall not exceed fifty thousand dollars for taxable years 51 beginning on or after January first, two thousand ten and before January 52 first, two thousand [twenty-five] thirty-two and twenty-five thousand 53 dollars for taxable years beginning on or after January first, two thou- 54 sand [twenty-five] thirty-two. 55 (B) For taxable years beginning on or after January first, two thou- 56 sand ten and before January first, two thousand [twenty-five]A. 9009--B 60 1 thirty-two, if the amount of credit allowable under this subsection 2 shall exceed the taxpayer's tax for such year, and the taxpayer's New 3 York adjusted gross income for such year does not exceed sixty thousand 4 dollars, the excess shall be treated as an overpayment of tax to be 5 credited or refunded in accordance with the provisions of section six 6 hundred eighty-six of this article, provided, however, that no interest 7 shall be paid thereon. If the taxpayer's New York adjusted gross income 8 for such year exceeds sixty thousand dollars, the excess credit that 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. For taxable years beginning 11 on or after January first, two thousand [twenty-five] thirty-two, if the 12 amount of credit allowable under this subsection shall exceed the 13 taxpayer's tax for such year, the excess may be carried over to the 14 following year or years and may be deducted from the taxpayer's tax for 15 such year or years. 16 (13) The commissioner shall report annually, on or before the first 17 day of November, on the aggregate amount of credits claimed and awarded 18 pursuant to this subsection on returns filed during the preceding calen- 19 dar year. Such report shall be provided to the governor, temporary pres- 20 ident of the senate, speaker of the assembly, chair of the senate 21 finance committee and chair of the assembly ways and means committee and 22 shall be made publicly available on the department's website. 23 § 5. Subparagraph (A) of paragraph 1 of subdivision (y) of section 24 1511 of the tax law, as amended by section 3 of part CCC of chapter 59 25 of the laws of 2021, is amended and a new paragraph 7 is added to read 26 as follows: 27 (A) For taxable years beginning on or after January first, two thou- 28 sand ten and before January first, two thousand [twenty-five] 29 thirty-two, a taxpayer shall be allowed a credit as hereinafter 30 provided, against the tax imposed by this article, in an amount equal to 31 one hundred percent of the amount of credit allowed the taxpayer with 32 respect to a certified historic structure, and one hundred fifty percent 33 of the amount of credit allowed the taxpayer with respect to a certified 34 historic structure that is a small project, under internal revenue code 35 section 47(c)(3), determined without regard to ratably allocating the 36 credit over a five year period as required by subsection (a) of such 37 section 47, with respect to a certified historic structure located with- 38 in the state. Provided, however, the credit shall not exceed five 39 million dollars. For taxable years beginning on or after January first, 40 two thousand [twenty-five] thirty-two, a taxpayer shall be allowed a 41 credit as hereinafter provided, against the tax imposed by this article, 42 in an amount equal to thirty percent of the amount of credit allowed the 43 taxpayer with respect to a certified historic structure under internal 44 revenue code section 47(c)(3), determined without regard to ratably 45 allocating the credit over a five year period as required by subsection 46 (a) of such section 47 with respect to a certified historic structure 47 located within the state. Provided, however, the credit shall not 48 exceed one hundred thousand dollars. 49 (7) The commissioner shall report annually, on or before the first day 50 of November, on the aggregate amount of credits claimed and awarded 51 pursuant to this subdivision on returns filed during the preceding 52 calendar year. Such report shall be provided to the governor, temporary 53 president of the senate, speaker of the assembly, chair of the senate 54 finance committee and chair of the assembly ways and means committee and 55 shall be made publicly available on the department's website. 56 § 6. This act shall take effect immediately.A. 9009--B 61 1 PART II 2 Section 1. The tax law is amended by adding a new section 493-a to 3 read as follows: 4 § 493-a. Deductions. (a) For each taxable year beginning on or after 5 January first, two thousand twenty-two, and before January first, two 6 thousand twenty-five, the provisions of section 280E of the internal 7 revenue code, relating to expenditures in connection with the illegal 8 sale of drugs, shall not apply for the purposes of this chapter to the 9 carrying on of any trade or business that is commercial cannabis activ- 10 ity by a licensee. 11 (b) For the purposes of this section, the following definitions shall 12 apply: 13 (1)"Commercial cannabis activity" includes the cultivation, 14 possession, manufacture, distribution, processing, storing, laboratory 15 testing, packaging, labeling, transportation, delivery, or sale of 16 cannabis and cannabis products, or acting as the holder of an adult-use 17 on-site consumption license pursuant to article four of the cannabis 18 law. 19 (2) "Licensee" shall have the same meaning as defined in section three 20 of the cannabis law. 21 § 2. This act shall take effect on the same date and in the same 22 manner as section 39 of chapter 92 of the laws of 2021, takes effect, 23 and shall expire January 1, 2025 when upon such date the provisions of 24 this act shall be deemed repealed. 25 PART JJ 26 Section 1. The opening paragraph of subdivision 7 of section 221 of 27 the racing, pari-mutuel wagering and breeding law, as separately amended 28 by chapter 243 and section 1 of part CC of chapter 59 of the laws of 29 2020, is amended to read as follows: 30 In order to pay the costs of the insurance required by this section 31 and by the workers' compensation law and to carry out its other powers 32 and duties and to pay for any of its liabilities under section four- 33 teen-a of the workers' compensation law, the New York Jockey Injury 34 Compensation Fund, Inc. shall ascertain the total funding necessary and 35 establish the sums that are to be paid by all owners and trainers 36 licensed or required to be licensed under section two hundred twenty of 37 this article, to obtain the total funding amount required annually. In 38 order to provide that any sum required to be paid by an owner or trainer 39 is equitable, the fund shall establish payment schedules that reflect 40 such factors as are appropriate, including where applicable, the 41 geographic location of the racing corporation at which the owner or 42 trainer participates, the duration of such participation, the amount of 43 any purse earnings, the number of horses involved, or such other factors 44 as the fund shall determine to be fair, equitable and in the best inter- 45 ests of racing. In no event shall the amount deducted from an owner's 46 share of purses exceed two percent; provided, however, [for two thousand47twenty and two thousand twenty-one] through calendar year two thousand 48 twenty-five, the New York Jockey Injury Compensation Fund, Inc. may use 49 up to two million dollars from the account established pursuant to 50 subdivision nine of section two hundred eight of this article to pay the 51 annual costs required by this section and the funds from such account 52 shall not count against the two percent of purses deducted from an 53 owner's share of purses. The amount deducted from an owner's share ofA. 9009--B 62 1 purses shall not exceed one percent after April first, two thousand 2 twenty-four. In the cases of multiple ownerships and limited racing 3 appearances, the fund shall equitably adjust the sum required. 4 § 2. Paragraph (a) of subdivision 9 of section 208 of the racing, 5 pari-mutuel wagering and breeding law, as amended by section 2 of part 6 CC of chapter 59 of the laws of 2020, is amended to read as follows: 7 (a) The franchised corporation shall maintain a separate account for 8 all funds held on deposit in trust by the corporation for individual 9 horsemen's accounts. Purse funds shall be paid by the corporation as 10 required to meet its purse payment obligations. Funds held in horsemen's 11 accounts shall only be released or applied as requested and directed by 12 the individual horseman. [For two thousand twenty and two thousand twen-13ty-one] Through calendar year two thousand twenty-five the New York 14 Jockey Injury Compensation Fund, Inc. may use up to two million dollars 15 from the account established pursuant to this subdivision to pay the 16 annual costs required by section two hundred twenty-one of this article. 17 § 3. This act shall take effect immediately. 18 PART KK 19 Section 1. Paragraph 1 of subdivision (e) of section 24-a of the tax 20 law, as amended by section 2 of part HH of chapter 59 of the laws of 21 2021, is amended to read as follows: 22 (1) The aggregate amount of tax credits allowed under this section, 23 subdivision forty-seven of section two hundred ten-B and subsection (u) 24 of section six hundred six of this chapter in any calendar year shall be 25 [eight] thirteen million dollars. Such aggregate amount of credits shall 26 be allocated by the department of economic development among taxpayers 27 in order of priority based upon the date of filing an application for 28 allocation of musical and theatrical production credit with such depart- 29 ment. If the total amount of allocated credits applied for in any 30 particular year exceeds the aggregate amount of tax credits allowed for 31 such year under this section, such excess shall be treated as having 32 been applied for on the first day of the subsequent year. 33 § 2. This act shall take effect immediately, provided, however, that 34 the amendments to section 24-a of the tax law made by section one of 35 this act shall not affect the expiration and repeal of such section and 36 shall be deemed to expire and repeal therewith. 37 PART LL 38 Section 1. Subdivision (a) of section 1115 of the tax law is amended 39 by adding a new paragraph 47 to read as follows: 40 (47) The receipts from the first thirty-five thousand dollars of the 41 retail sale or lease of a new or used battery, electric, or plug-in 42 hybrid electric vehicle. For purposes of this paragraph the term 43 "battery, electric, or plug-in hybrid electric vehicle" means a motor 44 vehicle, as defined in section one hundred twenty-five of the vehicle 45 and traffic law, that: 46 (i) has four wheels; 47 (ii) was manufactured for use primarily on public streets, roads and 48 highways; 49 (iii) the powertrain of which has not been modified from the original 50 manufacturer's specifications; 51 (iv) is rated at not more than eight thousand five hundred pounds 52 gross vehicle weight;A. 9009--B 63 1 (v) has a maximum speed capability of at least fifty-five miles per 2 hour; and 3 (vi) is propelled at least in part by an electronic motor and associ- 4 ated power electronics which provide acceleration torque to the drive 5 wheels sometime during normal vehicle operation, and that draws elec- 6 tricity from a battery that: 7 (A) has a capacity of not less than four kilowatt hours; and 8 (B) is capable of being recharged from an external source of electric- 9 ity. 10 § 2. Section 1160 of the tax law is amended by adding a new subdivi- 11 sion (d) to read as follows: 12 (d) The new or used battery, electric, or plug-in hybrid electric 13 vehicles exemption provided for in paragraph forty-seven of subdivision 14 (a) of section eleven hundred fifteen of this chapter shall not apply to 15 or limit the imposition of the tax imposed pursuant to this article. 16 § 3. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 17 1210 of the tax law, as amended by section 5 of part J of chapter 59 of 18 the laws of 2021, is amended to read as follows: 19 (ii) Any local law, ordinance or resolution enacted by any city, coun- 20 ty or school district, imposing the taxes authorized by this subdivi- 21 sion, shall omit the residential solar energy systems equipment and 22 electricity exemption provided for in subdivision (ee), the commercial 23 solar energy systems equipment and electricity exemption provided for in 24 subdivision (ii), the commercial fuel cell electricity generating 25 systems equipment and electricity generated by such equipment exemption 26 provided for in subdivision (kk) and the clothing and footwear exemption 27 provided for in paragraph thirty of subdivision (a) of section eleven 28 hundred fifteen of this chapter, and the battery, electric, or plug-in 29 hybrid electric vehicle exemption provided for in paragraph forty-seven 30 of subdivision (a) of section eleven hundred fifteen of this chapter 31 unless such city, county or school district elects otherwise as to such 32 residential solar energy systems equipment and electricity exemption, 33 such commercial solar energy systems equipment and electricity 34 exemption, commercial fuel cell electricity generating systems equipment 35 and electricity generated by such equipment exemption or such clothing 36 and footwear exemption or such battery, electric, or plug-in hybrid 37 electric vehicle exemption provided for in paragraph forty-seven of 38 subdivision (a) of section eleven hundred fifteen of this chapter. 39 § 4. This act shall take effect on the first day of a sales tax quar- 40 terly period, as described in subdivision (b) of section 1136 of the tax 41 law, next succeeding the date on which it shall have become a law and 42 shall apply to sales made on or after such date; provided, however, this 43 act shall expire and be deemed repealed April 1, 2027. 44 PART MM 45 Section 1. Short title. This act shall be known and may be cited as 46 the "savings accounts for a variable economy (SAVE) for small businesses 47 act". 48 § 2. The tax law is amended by adding a new section 45 to read as 49 follows: 50 § 45. Small business savings accounts. (a) General. (1) The commis- 51 sioner shall establish a program to administer small business savings 52 accounts under this section. 53 (2) The commissioner shall establish minimum standards for small busi- 54 ness savings accounts and shall establish accounts, or enter into agree-A. 9009--B 64 1 ments that meet these standards to administer such accounts. In estab- 2 lishing such standards and making such agreements the commissioner 3 shall, to the extent practicable, seek to minimize fees, minimize risk 4 of loss of principal, and ensure a range of investment risk options 5 available to account beneficiaries. Any eligible small business may 6 establish a small business savings account with respect to such business 7 under terms which meet the requirements of this section. 8 (b) Definition. For the purposes of this section, the term "small 9 business savings account" means a tax preferred savings account which is 10 designated at the time of establishment of the plan as a small business 11 savings account. Such designation shall be made in such manner as the 12 commissioner may by regulation prescribe. 13 (c) Contributions. (1) There shall be allowed as a deduction an amount 14 equal to the contributions to a small business savings account for the 15 taxable year. 16 (2) The aggregate amount of contributions for any taxable year to all 17 small business savings accounts maintained for the benefit of an eligi- 18 ble small business shall not exceed an amount equal to ten percent of 19 the entire net income of greater than zero but less than two hundred 20 fifty thousand dollars for article nine-A taxpayers and ten percent of 21 the New York source gross income of greater than zero but less than two 22 hundred fifty thousand dollars for a limited liability company, partner- 23 ship, or New York S corporation. 24 (d) Distributions. (1) Any qualified distribution from a small busi- 25 ness savings account shall not be includible in gross income. 26 (2) Any amounts distributed out of a small business savings account 27 that are not qualified distributions shall be included in gross income 28 for the taxable year of the distribution. 29 (3) For purposes of this section: 30 (A) The term "qualified distribution" means any amount: 31 (i) distributed from a small business savings account during a speci- 32 fied period of economic hardship; and 33 (ii) the distribution of which is certified by the taxpayer as part of 34 a plan which provides for the reinvestment of such distribution for the 35 funding of worker hiring or financial stabilization for the purposes of 36 job retention or creation. 37 (B) The term "specified period of economic hardship" means: 38 (i) any one-year period beginning immediately after the end of any two 39 consecutive quarters during which the annual rate of real gross domestic 40 product (as determined by the Bureau of Economic Analysis of the Depart- 41 ment of Commerce) decreases, or 42 (ii) any period, in no event shorter than one year, specified by the 43 commissioner for purposes of this section. 44 (C) The commissioner may specify a period under clause (ii) of subpar- 45 agraph (B) of this paragraph with respect to a specified area in the 46 case of an area determined by the governor to warrant assistance from 47 the Federal Government under the Robert T. Stafford Disaster Relief and 48 Emergency Assistance Act. 49 (D) The commissioner shall, for each specified period of economic 50 hardship establish a distribution limitation for qualified distributions 51 from eligible small business accounts with respect to such period. The 52 aggregate qualified distributions for any such period from all accounts 53 with respect to an eligible small business shall not exceed such limita- 54 tion.A. 9009--B 65 1 (E) Any distribution not used in the manner certified under subpara- 2 graph (A) of this paragraph shall be treated as a distribution other 3 than a qualified distribution in the taxable year of such distribution. 4 (F) Any amount contributed to a small business savings account (and 5 any earnings attributable thereto), once distributed, shall not be 6 treated as a qualified distribution unless such distribution is made not 7 later than eight years after the date of such contribution. For purposes 8 of this subparagraph, amounts (and the earnings attributable thereto) 9 shall be treated as distributed on a first-in first-out basis. 10 (e) Eligible small business. For purposes of this section: 11 (1) The term "eligible small business" means, with respect to any 12 calendar year, any person if the annual average number of full-time 13 employees employed by such person during the preceding calendar year was 14 twenty-five or fewer and such person has an annual net income of less 15 than two hundred fifty thousand dollars. For purposes of this paragraph, 16 a preceding calendar year may be taken into account only if the person 17 was in existence throughout the year. 18 (2)(A) The term "full-time employee" means, with respect to any year, 19 an employee who is employed on average at least forty hours of service 20 per week. 21 (B) The commissioner shall prescribe such regulations, rules, and 22 guidance as may be necessary to determine the hours of service of an 23 employee, including rules for the application of this subdivision to 24 employees who are not compensated on an hourly basis. 25 (f) Effect of pledging account as security. If, during any taxable 26 year of the eligible small business for whose benefit an account is 27 established, the account or any portion thereof is pledged as security 28 for a loan, the portion so pledged shall be treated as distributed in a 29 distribution other than a qualified distribution. 30 (g) Annual report. The commissioner shall prepare and deliver an annu- 31 al report on the efficacy of small business savings accounts to the 32 temporary president of the senate and the speaker of the assembly. Such 33 report shall include, but not be limited to, an evaluation as to whether 34 small business savings accounts contribute to financial stabilization of 35 the small business during times of economic hardship, job retention or 36 creation. 37 § 3. Section 209 of the tax law is amended by adding a new subdivision 38 13 to read as follows: 39 13. For any taxable year beginning on or after January first, two 40 thousand twenty-one, any eligible small business, as such term is 41 defined pursuant to section forty-five of this chapter, shall be exempt 42 from all taxes imposed pursuant to this article for any contribution to 43 and qualified distribution from a small business savings account estab- 44 lished pursuant to section forty-five of this chapter, subject to the 45 limits set forth in such section. If a taxpayer files for and receives 46 an exemption from the tax imposed under this section pursuant to the 47 provisions of this subdivision and the funds withdrawn, or any portion 48 thereof, are not expended for a qualifying purpose as set forth in 49 section forty-five of this chapter, then the amount of such exemption 50 claimed by the taxpayer shall be added back to tax in the next succeed- 51 ing taxable year or in the year in which the exemption is disallowed. 52 § 4. Subsection (c) of section 612 of the tax law is amended by adding 53 a new paragraph 46 to read as follows: 54 (46) Any qualified contribution to and any qualified distribution from 55 a small business savings account established pursuant to section forty- 56 five of this chapter. If a taxpayer files for and receives an exemptionA. 9009--B 66 1 from the tax imposed under this section pursuant to the provisions of 2 this paragraph and are not a qualifying contribution or distribution as 3 set forth in section forty-five of this chapter, then the amount of any 4 such exemption claimed by the taxpayer shall be added back to tax in the 5 next succeeding taxable year. 6 § 5. This act shall take effect immediately and shall apply to taxable 7 years beginning on or after January 1, 2022. 8 PART NN 9 Section 1. Section 606 of the tax law is amended by adding a new 10 subsection (g-3) to read as follows: 11 (g-3) Geothermal energy systems credit. (1) General. An individual 12 taxpayer shall be allowed a credit against the tax imposed by this arti- 13 cle equal to twenty-five percent of qualified geothermal energy system 14 expenditures, except as provided in subparagraph (D) of paragraph two of 15 this subsection. This credit shall not exceed five thousand dollars for 16 a qualified geothermal energy system placed in service on or after 17 September first, two thousand twenty-one. 18 (2) Qualified geothermal energy systems expenditures. (A) The term 19 "qualified geothermal energy system expenditures" means expenditures 20 for: 21 (i) the purchase of geothermal energy system equipment which is 22 installed in connection with residential property which is (I) located 23 in this state and (II) which is used by the taxpayer as his or her prin- 24 cipal residence at the time the geothermal energy system equipment is 25 placed in service; 26 (ii) the lease of geothermal energy system equipment under a written 27 agreement that spans at least ten years where such equipment owned by a 28 person other than the taxpayer is installed in connection with residen- 29 tial property which is (I) located in this state and (II) which is used 30 by the taxpayer as his or her principal residence at the time the geoth- 31 ermal energy system equipment is placed in service; or 32 (iii) the purchase of power under a written agreement that spans at 33 least ten years whereunder the power purchased is generated by geother- 34 mal energy system equipment owned by a person other than the taxpayer 35 which is installed in connection with residential property which is (I) 36 located in this state and (II) used by the taxpayer as his or her prin- 37 cipal residence at the time the geothermal energy system equipment is 38 placed in service. 39 (B) Such qualified expenditures shall include expenditures for materi- 40 als, labor costs properly allocable to on-site preparation, assembly and 41 original installation, architectural and engineering services, and 42 designs and plans directly related to the construction or installation 43 of the geothermal energy system equipment. 44 (C) Such qualified expenditures for the purchase of geothermal energy 45 system equipment shall not include interest or other finance charges. 46 (D) Such qualified expenditures for the lease of geothermal energy 47 system equipment or the purchase of power under an agreement described 48 in clause (ii) or (iii) of subparagraph (A) of this paragraph shall 49 include an amount equal to all payments made during the taxable year 50 under such agreement. Provided, however, such credits shall only be 51 allowed for fourteen years after the first taxable year in which such 52 credit is allowed. Provided further, however, the twenty-five percent 53 limitation in paragraph one of this subsection shall only apply to the 54 total aggregate amount of all payments to be made pursuant to an agree-A. 9009--B 67 1 ment referenced in clause (ii) or (iii) of subparagraph (A) of this 2 paragraph, and shall not apply to individual payments made during a 3 taxable year under such agreement except to the extent such limitation 4 on an aggregate basis has been reached. 5 (3) Geothermal energy system equipment. The term "geothermal energy 6 system equipment" shall mean a system whose original use begins with the 7 taxpayer; which meets the eligibility criteria, if any, prescribed by 8 the department; and which is a ground coupled solar thermal system that 9 utilizes the solar thermal energy stored in the ground or in bodies of 10 water to produce heat, and which is commonly known as or referred to as 11 a ground source heat pump system. 12 (4) Multiple taxpayers. Where geothermal energy system equipment is 13 purchased and installed in a principal residence shared by two or more 14 taxpayers, the amount of the credit allowable under this subsection for 15 each such taxpayer shall be prorated according to the percentage of the 16 total expenditure for such geothermal energy system equipment contrib- 17 uted by each taxpayer. 18 (5) Proportionate share. Where geothermal energy system equipment is 19 purchased and installed by a condominium management association or a 20 cooperative housing corporation, a taxpayer who is a member of the 21 condominium management association or who is a tenant-stockholder in the 22 cooperative housing corporation may for the purpose of this subsection 23 claim a proportionate share of the total expense as the expenditure for 24 the purposes of the credit attributable to his principal residence. 25 (6) Grants. For purposes of determining the amount of the expenditure 26 incurred in purchasing and installing geothermal energy system equip- 27 ment, the amount of any federal, state or local grant received by the 28 taxpayer, which was used for the purchase and/or installation of such 29 equipment and which was not included in the federal gross income of the 30 taxpayer, shall not be included in the amount of such expenditures. 31 (7) When credit allowed. The credit provided for herein shall be 32 allowed with respect to the taxable year, commencing after two thousand 33 twenty-two, in which the geothermal energy system equipment is placed in 34 service. 35 (8) Carryover of credit. If the amount of the credit, and carryovers 36 of such credit, allowable under this subsection for any taxable year 37 shall exceed the taxpayer's tax for such year, such excess amount may be 38 carried over to the five taxable years next following the taxable year 39 with respect to which the credit is allowed and may be deducted from the 40 taxpayer's tax for such year or years. 41 § 2. This act shall take effect immediately and shall apply to taxable 42 years commencing on and after January 1, 2022. 43 PART OO 44 Section 1. Paragraph (a) of subdivision 4 of section 189 of the state 45 finance law, as amended by section 8 of part A of chapter 56 of the laws 46 of 2013, is amended to read as follows: 47 (a) This section shall apply to claims, records, [or] statements, and 48 obligations made under the tax law only if (i) the net income or sales 49 of the person against whom the action is brought equals or exceeds one 50 million dollars for any taxable year subject to any action brought 51 pursuant to this article; and (ii) the damages pleaded in such action 52 exceed three hundred [and] fifty thousand dollars[; and (iii) the person53is alleged to have violated paragraph (a), (b), (c), (d), (e), (f) or54(g) of subdivision one of this section; provided, however, that nothingA. 9009--B 68 1in this subparagraph shall be deemed to modify or restrict the applica-2tion of such paragraphs to any act alleged that relates to a violation3of the tax law]. 4 § 2. This act shall take effect immediately and shall apply to all 5 false claims, records, statements and obligations concealed, avoided or 6 decreased on, prior to, or after such effective date. 7 PART PP 8 Section 1. Subparagraph (B) of paragraph 1 of subsection (a) of 9 section 1115 of the tax law, as amended by section 1 of part SS of chap- 10 ter 59 of the laws of 2021, is amended to read as follows: 11 (B) Until May thirty first, two thousand [twenty-two] twenty-five, the 12 food and drink excluded from the exemption provided by clauses (i), (ii) 13 and (iii) of subparagraph (A) of this paragraph, and bottled water, 14 shall be exempt under this subparagraph when sold for [one dollar] two 15 dollars and fifty cents or less through any vending machine that accepts 16 coin or currency only or when sold for two dollars and fifty cents or 17 less through any vending machine that accepts any form of payment other 18 than coin or currency, whether or not it also accepts coin or currency. 19 § 2. This act shall take effect immediately. 20 PART QQ 21 Section 1. Paragraph (e) of subdivision 1 of section 536 of the real 22 property tax law, as amended by section 4 of part CC of chapter 58 of 23 the laws of 2018, is amended to read as follows: 24 (e) Lands owned by the state, within the core preservation area of the 25 Central Pine Barrens area as described and bounded by subdivision eleven 26 of section 57-0107 of the environmental conservation law, situate in the 27 following school districts: 28 County School District Town 29 Suffolk Rocky Point Union Free Brookhaven 30 school district 31 [Eastport Union Free school] Brookhaven 32 [district] Eastport-South Southampton 33 Manor Central school 34 district 35 Longwood Central school Brookhaven 36 district 37 Riverhead Central school Brookhaven 38 district Riverhead 39 Southampton 40 Hampton Bays Union Free Southampton 41 school district 42 Shoreham-Wading River Brookhaven 43 Central school Riverhead 44 district 45 § 2. This act shall take effect immediately. 46 PART RRA. 9009--B 69 1 Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of 2 section 425 of the real property tax law, as amended by section 1 of 3 part B of chapter 59 of the laws of 2018, is amended to read as follows: 4 (ii) The term "income" as used herein shall mean the "adjusted gross 5 income" for federal income tax purposes as reported on the applicant's 6 federal or state income tax return for the applicable income tax year, 7 subject to any subsequent amendments or revisions, reduced by distrib- 8 utions, to the extent included in federal adjusted gross income, 9 received from an individual retirement account and an individual retire- 10 ment annuity, and for other pensions and annuities, as such term is 11 defined in paragraph three-a of subsection (c) of section six hundred 12 twelve of the tax law, received by an individual who has attained the 13 age of fifty-nine and one-half years, but not in excess of twenty thou- 14 sand dollars; provided that if no such return was filed for the applica- 15 ble income tax year, "income" shall mean the adjusted gross income that 16 would have been so reported if such a return had been filed. Provided 17 further, that effective with exemption applications for final assessment 18 rolls to be completed in two thousand nineteen, where an income-eligi- 19 bility determination is wholly or partly based upon the income of one or 20 more individuals who did not file a return for the applicable income tax 21 year, then in order for the application to be considered complete, each 22 such individual must file a statement with the department showing the 23 source or sources of his or her income for that income tax year, and the 24 amount or amounts thereof, that would have been reported on such a 25 return if one had been filed. Such statement shall be filed at such 26 time, and in such form and manner, as may be prescribed by the depart- 27 ment, and shall be subject to the secrecy provisions of the tax law to 28 the same extent that a personal income tax return would be. The depart- 29 ment shall make such forms and instructions available for the filing of 30 such statements. The local assessor shall upon the request of a taxpayer 31 assist such taxpayer in the filing of the statement with the department. 32 § 2. Subparagraph (B) of paragraph 1 of subsection (eee) of section 33 606 of the tax law, as amended by section 10 of part B of chapter 59 of 34 the laws of 2018, is amended to read as follows: 35 (B) "Affiliated income" shall mean for purposes of the basic STAR 36 credit, the combined income of all of the owners of the parcel who 37 resided primarily thereon as of December thirty-first of the taxable 38 year, and of any owners' spouses residing primarily thereon as of such 39 date, and for purposes of the enhanced STAR credit, the combined income 40 of all of the owners of the parcel as of December thirty-first of the 41 taxable year, and of any owners' spouses residing primarily thereon as 42 of such date; provided that for both purposes the income to be so 43 combined shall be the "adjusted gross income" for the taxable year as 44 reported for federal income tax purposes, or that would be reported as 45 adjusted gross income if a federal income tax return were required to be 46 filed, reduced by distributions, to the extent included in federal 47 adjusted gross income, received from an individual retirement account 48 and an individual retirement annuity, and for other pensions and annui- 49 ties, as such term is defined in paragraph three-a of subsection (c) of 50 section six hundred twelve of this article, received by an individual 51 who has attained the age of fifty-nine and one-half years, not in excess 52 of twenty thousand dollars. For taxable years beginning on and after 53 January first, two thousand nineteen, where an income-eligibility deter- 54 mination is wholly or partly based upon the income of one or more indi- 55 viduals who did not file a return pursuant to section six hundred 56 fifty-one of this article for the applicable income tax year, then inA. 9009--B 70 1 order to be eligible for the credit authorized by this subsection, each 2 such individual must file a statement with the department showing the 3 source or sources of his or her income for that income tax year, and the 4 amount or amounts thereof, that would have been reported on such a 5 return if one had been filed. Such statement shall be filed at such 6 time, and in such form and manner, as may be prescribed by the depart- 7 ment, and shall be subject to the provisions of section six hundred 8 ninety-seven of this article to the same extent that a return would be. 9 The department shall make such forms and instructions available for the 10 filing of such statements. The local assessor shall upon the request of 11 a taxpayer assist such taxpayer in the filing of the statement with the 12 department. Provided further, that if the qualified taxpayer was an 13 owner of the property during the taxable year but did not own it on 14 December thirty-first of the taxable year, then the determination as to 15 whether the income of an individual should be included in "affiliated 16 income" shall be based upon the ownership and/or residency status of 17 that individual as of the first day of the month during which the quali- 18 fied taxpayer ceased to be an owner of the property, rather than as of 19 December thirty-first of the taxable year. 20 § 3. This act shall take effect on the first of January next succeed- 21 ing the date on which it shall have become a law. 22 PART SS 23 Section 1. Article 4 of the real property tax law is amended by adding 24 a new title 6 to read as follows: 25 TITLE 6 26 CHILDCARE CENTER TAX ABATEMENT FOR CERTAIN PROPERTIES IN A CITY 27 HAVING A POPULATION OF ONE MILLION OR MORE 28 Section 499-aaaaa. Definitions. 29 499-bbbbb. Real property tax abatement. 30 499-ccccc. Application for tax abatement. 31 499-ddddd. Continuing requirements. 32 499-eeeee. Revocation of tax abatement. 33 499-fffff. Enforcement and administration. 34 § 499-aaaaa. Definitions. When used in this title, the following terms 35 shall have the following meanings: 36 1. "Abatement period" means the tax year or tax years in which the 37 abatement is applied by the department of finance to the real property 38 tax liability of an eligible building, provided that such abatement 39 shall not be applied to the real property tax liability of such building 40 during more than five tax years. 41 2. "Applicant" means an owner who files an application for tax abate- 42 ment. 43 3. "Application for tax abatement" means an application for a child- 44 care center tax abatement pursuant to section four hundred ninety-nine- 45 ccccc of this title. 46 4. "Childcare center" means a child care program for which a permit to 47 operate such program has been issued by the department of health and 48 mental hygiene pursuant to the health code of the city. 49 5. "Childcare desert" means a census tract in a city having a popu- 50 lation of one million or more where, at the time of an application for 51 tax abatement, there are three or more children under five years of age 52 for each available childcare slot, or where there are no available 53 childcare slots, as determined by the office of children and family 54 services.A. 9009--B 71 1 6. "City" means a city with a population of a million or more. 2 7. "Cost-reasonable" means having a cost that, in its nature and 3 amount, does not exceed that which would be incurred by a prudent person 4 under the circumstances prevailing at the time the decision was made to 5 incur such cost. 6 8. "Department of finance" means the department of finance of a city 7 having a population of one million or more. 8 9. "Department of health and mental hygiene" means the department of 9 health and mental hygiene of a city having a population of one million 10 or more. 11 10. "Designated agency" means an agency of a city having a population 12 of one million or more that is designated by the mayor of such city to 13 exercise the functions, powers and duties of a designated agency pursu- 14 ant to this title. 15 11. "Eligible building" shall mean a class one, class two or class 16 four property, as such classes of property are defined in subdivision 17 one of section eighteen hundred two of this chapter, located within a 18 city having a population of one million or more, provided that, for any 19 such property held in the condominium form of ownership, "eligible 20 building" shall mean a tax lot in such property. 21 12. "Owner" means the owner of an eligible building, or with respect 22 to an eligible building held in the cooperative form of ownership, the 23 board of directors of a cooperative apartment corporation, or, with 24 respect to an eligible building held in the condominium form of owner- 25 ship, an owner of a tax lot in such building or the board of managers of 26 such building. 27 13. "Premises" means the location of a childcare center as specified 28 on the permit for the operation of such center issued by the department 29 of health and mental hygiene pursuant to the health code of the city. 30 § 499-bbbbb. Real property tax abatement. 1. The department of finance 31 shall provide an abatement of real property taxes pursuant to this 32 section to an eligible building in which construction, conversion, 33 alteration or improvement that is completed on or after April first, two 34 thousand twenty-two has resulted in the creation of a premises of a 35 childcare center or in an increase in the maximum number of children 36 allowed on the premises of an existing childcare center when such center 37 is in operation, as such number is specified in the permit issued by the 38 department of health and mental hygiene to operate such center. The 39 department of finance may only grant one such abatement to any eligible 40 building. 41 2. (a) Beginning in the tax year commencing on or after July first, 42 two thousand twenty-three, the amount of such tax abatement provided to 43 an eligible building described in subdivision one of this section shall 44 be equal to the costs incurred in the construction, conversion, alter- 45 ation or improvement that has resulted in the creation of a premises of 46 a childcare center or in an increase in the maximum number of children 47 allowed on the premises of an existing childcare center, provided that 48 such costs are certified in accordance with paragraph (d) of subdivision 49 two of section four hundred ninety-nine-ccccc of this title, and 50 provided further that, during the abatement period, the amount of such 51 abatement shall not exceed thirty-five dollars for each square foot of 52 the premises, nor exceed one hundred thousand dollars. 53 (i) For any tax year, such abatement shall not exceed seven dollars 54 for each square foot of the premises, provided that such amount may be 55 reduced as a result of an allocation of available funds for such abate- 56 ment pursuant to paragraph (d) of this subdivision; and provided,A. 9009--B 72 1 further, that the amount of such tax abatement in any tax year shall not 2 exceed the lesser of (A) twenty thousand dollars or (B) the real proper- 3 ty tax liability for the eligible building in the tax year in which such 4 tax abatement is taken. 5 (ii) To the extent the amount of such tax abatement exceeds the lesser 6 of (A) twenty thousand dollars or (B) the real property tax liability of 7 the eligible building in any tax year, any amount of such tax abatement 8 that remains may be applied to the real property tax liability of such 9 building in succeeding tax years, provided that such abatement must be 10 applied to the real property tax liability of such building in one or 11 more of the four tax years succeeding the tax year in which such tax 12 abatement was initially taken. 13 (b) Notwithstanding paragraph (a) of this subdivision, an enhanced tax 14 abatement shall be provided to an eligible building described in subdi- 15 vision one of this section that is located within a childcare desert as 16 described in this title and in any rules promulgated hereunder. Begin- 17 ning in the tax year commencing on or after July first, two thousand 18 twenty-three, the amount of such enhanced tax abatement shall be equal 19 to the costs incurred in the construction, conversion, alteration or 20 improvement that has resulted in the creation of a premises of a child- 21 care center or in an increase in the maximum number of children allowed 22 on the premises of an existing childcare center, provided that such 23 costs are certified in accordance with paragraph (d) of subdivision two 24 of section four hundred ninety-nine-ccccc of this title, and provided 25 further that, during the abatement period, the amount of such abatement 26 shall not exceed seventy-five dollars for each square foot of the prem- 27 ises nor exceed two hundred twenty-five thousand dollars. 28 (i) For any tax year, such abatement shall not exceed fifteen dollars 29 for each square foot of the premises, provided that such amount may be 30 reduced as a result of an allocation of available funds for such abate- 31 ment pursuant to paragraph (d) of this subdivision; and provided further 32 that the amount of such enhanced tax abatement in any tax year shall not 33 exceed the lesser of (A) forty-five thousand dollars or (B) the real 34 property tax liability for the eligible building in the tax year in 35 which such tax abatement is taken. 36 (ii) To the extent the amount of such enhanced tax abatement exceeds 37 the lesser of (A) forty-five thousand dollars or the (B) real property 38 tax liability of the eligible building in any tax year, any amount of 39 such tax abatement that remains may be applied to the real property tax 40 liability of such building in succeeding tax years, provided that such 41 abatement shall be applied to the real property tax liability of such 42 building in one or more of the four tax years succeeding the tax year in 43 which the tax abatement was initially taken. 44 (c) Notwithstanding paragraph (a) or (b) of this subdivision, the 45 aggregate amount of tax abatements authorized pursuant to this section 46 for any tax year shall be a maximum of twenty-five million dollars. No 47 tax abatements shall be authorized pursuant to this section for any tax 48 year commencing on or after July first, two thousand thirty. 49 (d) Such aggregate amount of tax abatements, including the tax abate- 50 ment described in paragraph (a) of this subdivision and the enhanced tax 51 abatement described in paragraph (b) of this subdivision, shall be allo- 52 cated by the department of finance on a pro rata basis among applicants 53 whose applications have been approved by the designated agency. If such 54 allocation is not made prior to the date that the real property tax 55 bill, statement of account or other similar bill or statement is 56 prepared, the department of finance shall, as necessary, after suchA. 9009--B 73 1 allocation is made, submit an amended real property tax bill, statement 2 of account or other similar bill or statement to any applicant whose 3 abatement requires adjustment to reflect such allocation. Nothing in 4 this paragraph shall be deemed to affect the obligation of any taxpayer 5 under applicable law with respect to the payment of any installment of 6 real property tax for the fiscal year as to which such allocation is 7 made, which was due and payable prior to the date such amended real 8 property tax bills are sent, and the department of finance shall be 9 authorized to determine the date on which any such amended bills be sent 10 and the installments of real property tax be reflected therein. 11 (e) Notwithstanding any law to the contrary, any abatement granted to 12 an eligible building pursuant to this section shall be in addition to 13 any other abatement or exemption granted to such building, provided that 14 any abatement granted under this section shall be applied after any 15 other abatement or exemption granted to such building, and provided 16 further that the application of this abatement after any other such 17 exemption or abatement shall not exceed the real property tax liability 18 due on such eligible property. 19 3. Such abatement shall commence on the first of July following the 20 approval of an application for abatement by the designated agency. 21 4. If, as a result of application to the tax commission or a court 22 order or action by the department of finance, the billable assessed 23 value of the eligible building for the fiscal year in which the tax 24 abatement is taken is reduced after the assessment roll becomes final, 25 the department of finance shall recalculate such abatement so that the 26 abatement granted shall not exceed the annual tax liability of such 27 building as so reduced. The amount equal to the difference between the 28 initial abatement granted by the department and the abatement as so 29 recalculated shall be deducted from any refund otherwise payable or 30 remission otherwise due as a result of such reduction in billable 31 assessed value. 32 § 499-ccccc. Application for tax abatement. 1. To obtain a tax abate- 33 ment authorized by this title, an application for tax abatement shall be 34 filed with a designated agency no later than the fifteenth of March 35 before the tax year, commencing on the first of July, for which the tax 36 abatement authorized by this title is sought, provided, however, that 37 such application for tax abatement shall not be filed later than March 38 fifteenth, two thousand twenty-five. 39 2. Such application shall contain the following: 40 (a) The name, address and electronic mail address of the applicant and 41 the location of the eligible building. 42 (b) Proof that all required permits and other approvals, as further 43 designated by rule, to construct, convert, alter or improve the premises 44 of the childcare center in the eligible building described in subdivi- 45 sion one of section four hundred ninety-nine-bbbbb of this title were 46 obtained. 47 (c) Proof that the applicant has entered into a lease or other agree- 48 ment with a person to operate a childcare center in the eligible build- 49 ing described in subdivision one of section four hundred ninety-nine- 50 bbbbb of this title, or a copy of the new or amended permit issued to 51 such childcare center by the department of health and mental hygiene for 52 such operation. 53 (d) Determinations that have been certified, in a form prescribed by 54 the designated agency, by an engineer, architect, or certified public 55 accountant, licensed and registered pursuant to the education law, or byA. 9009--B 74 1 another certified or licensed professional in the field of business or 2 design, as further designated by rule, as follows: 3 (i) The area, in square feet, of the premises of the childcare center 4 in the eligible building described in subdivision one of section four 5 hundred ninety-nine-bbbbb of this title; 6 (ii) The costs incurred in the construction, conversion, alteration or 7 improvement that has resulted in the creation of a premises of a child- 8 care center in such building; or, for construction, conversion, alter- 9 ation or improvement resulting in an increase in the maximum number of 10 children allowed on the premises of an existing childcare center in such 11 building, such costs that were necessary to increase the maximum number 12 of children allowed on such premises; and 13 (iii) The reasonableness of the costs to construct, convert, alter or 14 improve the premises of the childcare center in the eligible building 15 described in subdivision one of section four hundred ninety-nine-bbbbb 16 of this title, which requires finding that such costs were cost-reasona- 17 ble and comparable to the cost of constructing, converting, altering or 18 improving a premises of a childcare center pursuant to the health code 19 of the city in a similar eligible building. 20 (e) Any other information or certifications required by a designated 21 agency pursuant to this title and the rules promulgated under this 22 title. 23 3. An application for tax abatement shall be in any format prescribed 24 by a designated agency, including electronic form. 25 4. An application for tax abatement shall be approved by a designated 26 agency upon determining that the applicant has submitted proof accepta- 27 ble to such agency that the requirements for obtaining such tax abate- 28 ment have been satisfied. The burden of proof shall be on the applicant 29 to show by clear and convincing evidence that the requirements for 30 granting such tax abatement have been satisfied. 31 5. Upon receipt of notification from a designated agency that an 32 application for tax abatement has been approved, the department of 33 finance shall apply such tax abatement to the real property tax liabil- 34 ity of the eligible building for the tax year for which the abatement 35 was sought, provided that there are no outstanding real property taxes, 36 water and sewer charges, payments in lieu of taxes or other municipal 37 charges with respect to the eligible building. 38 § 499-ddddd. Continuing requirements. Granting of the tax abatement 39 authorized by this title shall require that an owner whose application 40 for tax abatement has been approved: 41 1. Complies with all applicable provisions of law, including but not 42 limited to, the local health, building and fire codes; and 43 2. Does not have real property taxes, water and sewer charges, 44 payments in lieu of taxes or other municipal charges with respect to an 45 eligible building due and owing during the abatement period for a period 46 of six months or more. 47 § 499-eeeee. Revocation of tax abatement. 1. Notwithstanding any 48 provision of law to the contrary, the department of finance shall 49 revoke, in whole or in part, any tax abatement granted pursuant to this 50 title whenever a designated agency has determined and notified such 51 department that: 52 (a) The childcare center in the eligible building of the owner whose 53 application for tax abatement has been approved has ceased operation as 54 a childcare center for a period exceeding one hundred eighty days of the 55 abatement period, except when such childcare center ceases operation due 56 to an act or event beyond the control and without any fault or negli-A. 9009--B 75 1 gence of the childcare center or of the owner of the eligible building 2 in which such childcare center operates, which shall include, but is not 3 limited to, fire, flood, earthquake, storm or other natural disaster, 4 civil commotion, war, terrorism, riot, and labor disputes not brought 5 about by any act or omission of such childcare center or such owner; 6 (b) An application, certification, report or other document submitted 7 by the owner whose application for tax abatement has been approved 8 contains a false or misleading statement as to a material fact or omits 9 to state any material fact necessary in order to make the statement 10 therein not false or misleading. 11 2. The department of finance may revoke, in whole or in part, any tax 12 abatement granted pursuant to this title whenever it has determined that 13 an owner whose application for tax abatement has been approved has 14 outstanding real property taxes, water and sewer charges, payments in 15 lieu of taxes or other municipal charges that have been due and owing 16 during the abatement period for a period of six months or more. 17 3. Upon a determination by a designated agency, after notice and an 18 opportunity to be heard, that the childcare center in the eligible 19 building of the owner whose application for tax abatement has been 20 approved has ceased operation as a childcare center for a period exceed- 21 ing one hundred eighty days of the abatement period, such agency shall 22 notify the department of finance of such determination no later than the 23 ninetieth day after such determination was reached. 24 4. An owner whose application for tax abatement has been approved, and 25 for whom such tax abatement has been revoked due to a false or mislead- 26 ing statement, or an omission, pursuant to paragraph (b) of subdivision 27 one of this section, shall pay, with interest, such part of any tax 28 abatement received pursuant to this title that represents the period of 29 non-compliance as determined by the designated agency or the department 30 of finance, as the case may be. 31 § 499-fffff. Enforcement and administration. 1. The department of 32 finance shall have, in addition to any other functions, powers and 33 duties conferred on it by law, the following functions, powers and 34 duties to be exercised in accordance with this title: 35 (a) To apply the tax abatement authorized by this title to the real 36 property tax liability of an eligible building; 37 (b) To revoke all or part of any such tax abatement; 38 (c) To promulgate rules to carry out the purposes of this title, 39 including, but not limited to, requiring, notwithstanding any inconsist- 40 ent provision of law, that any submission be made in electronic form; 41 and 42 (d) Any other function, power or duty necessarily implied by this 43 title. 44 2. A designated agency shall have, in addition to any other functions, 45 powers and duties conferred on it by law, the following functions, 46 powers and duties to be exercised in accordance with this title: 47 (a) To accept, review, approve and deny applications for tax abate- 48 ment; 49 (b) To promulgate rules to carry out the purposes of this title, 50 including, but not limited to, requiring, notwithstanding any inconsist- 51 ent provision of law, that any submission be made in electronic form; 52 (c) To make the determinations provided for in this title; and 53 (d) Any other function, power or duty necessarily implied by this 54 title. 55 3. If a designated agency determines that an architect, engineer, 56 certified public accountant, or other certified or licensed professionalA. 9009--B 76 1 in the field of business or design whom such agency designates by rule, 2 in making any certification under this title or any rule promulgated 3 hereunder, engaged in professional misconduct, such agency shall so 4 inform the education department or other appropriate certifying or 5 licensing authority. 6 § 2. This act shall take effect immediately, and shall apply to tax 7 years beginning on and after July 1, 2023. 8 PART TT 9 Section 1. Paragraph 1 of subsection (f) of section 1310 of the tax 10 law, as added by section 2 of part V of chapter 60 of the laws of 2004, 11 is amended to read as follows: 12 (1) Notwithstanding any other provision of law to the contrary, any 13 city having a population of one million or more, acting through its 14 local legislative body, is hereby authorized and empowered to adopt and 15 amend local laws granting in any such city, for taxable years beginning 16 after two thousand three, a credit against the city personal income tax 17 equal to five percent of the earned income credit allowed under section 18 thirty-two of the internal revenue code for the same taxable year, and, 19 for taxable years beginning after two thousand twenty-one, a credit 20 against the city personal income tax equal to a percentage, determined 21 pursuant to subparagraphs (A) through (I) of this paragraph, of the 22 earned income credit allowed under section thirty-two of the internal 23 revenue code for the same taxable year. For purposes of this paragraph, 24 "adjusted gross income" means New York adjusted gross income as deter- 25 mined pursuant to article twenty-two of this chapter. The percentage 26 shall be: 27 (A) thirty percent, where the taxpayer's adjusted gross income for 28 such taxable year is less than five thousand dollars; 29 (B) thirty percent reduced by the product of two-tenths of a percent- 30 age point (0.002) and the amount of the taxpayer's adjusted gross income 31 for such taxable year in excess of forty-nine hundred ninety-nine 32 dollars, where such taxpayer's adjusted gross income for such taxable 33 year is equal to or greater than five thousand dollars and less than 34 seventy-five hundred dollars; 35 (C) twenty-five percent, where the taxpayer's adjusted gross income 36 for such taxable year is equal to or greater than seventy-five hundred 37 dollars and less than fifteen thousand dollars; 38 (D) twenty-five percent reduced by the product of two-tenths of a 39 percentage point (0.002) and the amount of the taxpayer's adjusted gross 40 income for such taxable year in excess of fourteen thousand nine hundred 41 ninety-nine dollars, where such taxpayer's adjusted gross income for 42 such taxable year is equal to or greater than fifteen thousand dollars 43 and less than seventeen thousand five hundred dollars; 44 (E) twenty percent, where the taxpayer's adjusted gross income for 45 such taxable year is equal to or greater than seventeen thousand five 46 hundred dollars and less than twenty thousand dollars; 47 (F) twenty percent reduced by the product of two-tenths of a percent- 48 age point (0.002) and the amount of the taxpayer's adjusted gross income 49 for such taxable year in excess of nineteen thousand nine hundred nine- 50 ty-nine dollars, where such taxpayer's adjusted gross income for such 51 taxable year is equal to or greater than twenty thousand dollars and 52 less than twenty-two thousand five hundred dollars;A. 9009--B 77 1 (G) fifteen percent, where the taxpayer's adjusted gross income for 2 such taxable year is equal to or greater than twenty-two thousand five 3 hundred dollars and less than forty thousand dollars; 4 (H) fifteen percent reduced by the product of two-tenths of a percent- 5 age point (0.002) and the amount of the taxpayer's adjusted gross income 6 for such taxable year in excess of thirty-nine thousand nine hundred 7 ninety-nine dollars, where such taxpayer's adjusted gross income for 8 such taxable year is equal to or greater than forty thousand dollars and 9 less than forty-two thousand five hundred dollars; and 10 (I) ten percent where the taxpayer's adjusted gross income for such 11 taxable year is equal to or greater than forty-two thousand five hundred 12 dollars. 13 § 2. Paragraph 1 of subdivision (d) of section 11-1706 of the adminis- 14 trative code of the city of New York, as added by local law number 39 15 for the year 2004, is amended to read as follows: 16 (1) For taxable years beginning after two thousand three, a credit 17 against the city personal income tax shall be allowed, equal to five 18 percent of the earned income credit allowed under section thirty-two of 19 the internal revenue code for the same taxable year, and, for taxable 20 years beginning after two thousand twenty-one, a credit against the city 21 personal income tax shall be allowed, equal to a percentage determined 22 pursuant to subparagraphs (A) through (I) of this paragraph, of the 23 earned income credit allowed under section thirty-two of the internal 24 revenue code for the same taxable year. For purposes of this paragraph, 25 "adjusted gross income" means New York adjusted gross income as deter- 26 mined pursuant to article twenty-two of the tax law. The percentage 27 shall be: 28 (A) thirty percent, where the taxpayer's adjusted gross income for 29 such taxable year is less than five thousand dollars; 30 (B) thirty percent reduced by the product of two-tenths of a percent- 31 age point (0.002) and the amount of the taxpayer's adjusted gross income 32 for such taxable year in excess of forty-nine hundred ninety-nine 33 dollars, where such taxpayer's adjusted gross income for such taxable 34 year is equal to or greater than five thousand dollars and less than 35 seventy-five hundred dollars; 36 (C) twenty-five percent, where the taxpayer's adjusted gross income 37 for such taxable year is equal to or greater than seventy-five hundred 38 dollars and less than fifteen thousand dollars; 39 (D) twenty-five percent reduced by the product of two-tenths of a 40 percentage point (0.002) and the amount of the taxpayer's adjusted gross 41 income for such taxable year in excess of fourteen thousand nine hundred 42 ninety-nine dollars, where such taxpayer's adjusted gross income for 43 such taxable year is equal to or greater than fifteen thousand dollars 44 and less than seventeen thousand five hundred dollars; 45 (E) twenty percent, where the taxpayer's adjusted gross income for 46 such taxable year is equal to or greater than seventeen thousand five 47 hundred dollars and less than twenty thousand dollars; 48 (F) twenty percent reduced by the product of two-tenths of a percent- 49 age point (0.002) and the amount of such taxpayer's adjusted gross 50 income for such taxable year in excess of nineteen thousand nine hundred 51 ninety-nine dollars, where the taxpayer's adjusted gross income for such 52 taxable year is equal to or greater than twenty thousand dollars and 53 less than twenty-two thousand five hundred dollars; 54 (G) fifteen percent, where the taxpayer's adjusted gross income for 55 such taxable year is equal to or greater than twenty-two thousand five 56 hundred dollars and less than forty thousand dollars;A. 9009--B 78 1 (H) fifteen percent reduced by the product of two-tenths of a percent- 2 age point (0.002) and the amount of the taxpayer's adjusted gross income 3 for such taxable year in excess of thirty-nine thousand nine hundred 4 ninety-nine dollars, where such taxpayer's adjusted gross income for 5 such taxable year is equal to or greater than forty thousand dollars and 6 less than forty-two thousand five hundred dollars; and 7 (I) ten percent where the taxpayer's adjusted gross income for such 8 taxable year is equal to or greater than forty-two thousand five hundred 9 dollars. 10 § 3. This act shall take effect immediately, and shall apply to taxa- 11 ble years beginning on and after January 1, 2022. 12 PART UU 13 Section 1. The administrative code of the city of New York is amended 14 by adding a new section 11-144 to read as follows: 15 § 11-144 Child care credit against certain business income taxes. a. 16 Definitions. For purposes of this section: 17 1. Child care program. The term "child care program" means a child 18 care program for which a permit to operate such program has been issued 19 by the department of health and mental hygiene pursuant to article 20 forty-seven of the health code. 21 2. Child care rate. The term "child care rate" means the weekly child 22 care subsidy market rates, based on the sixty-ninth percentile of the 23 2017-18 New York state child care market rate survey, for infant and 24 toddler care provided by a permitted day care center in county cluster 25 five, as reflected in the 2019 child care market rate survey report 26 published by the New York state office of children and family services 27 in compliance with section 98.45 of title forty-five of the code of 28 federal regulations, provided that the department of finance may, by 29 rule, revise such rates based on subsequent editions of the child care 30 market rate survey report, as published by such office, or any other 31 similar report published by such office in compliance with such section. 32 3. Child care seats. The term "child care seats" means the maximum 33 number of children to be allowed on the premises of a child care program 34 at any time that such program is in operation as specified on the permit 35 issued for such program by the department of health and mental hygiene. 36 4. Child care seats that are occupied. The term "child care seats that 37 are occupied" means, for each service year in which a child care program 38 is in operation, the average daily number of children in attendance on 39 the premises of such child care program. 40 5. Creates child care. The term "creates child care" means the making 41 available of child care seats in a child care program by a taxpayer, 42 directly or through a third party, for employees of such taxpayer, where 43 such child care program was not available prior to April first, two 44 thousand twenty-two, provided that the costs imposed on such employees 45 for such child care program do not exceed forty percent of the child 46 care rate. 47 6. Expands child care. The term "expands child care" means the 48 increase in the number of child care seats in a child care program made 49 available by a taxpayer, directly or through a third party, for employ- 50 ees of such taxpayer, provided that such increase requires a new or 51 amended permit issued by the department of health and mental hygiene 52 pursuant to article forty-seven of the health code on or after April 53 first, two thousand twenty-two, and, provided, further, that the costsA. 9009--B 79 1 imposed on such employees for such child care program do not exceed 2 forty percent of the child care rate. 3 7. Service year. The term "service year" means the twelve-month period 4 commencing on October first and ending on September thirtieth in the 5 subsequent calendar year. 6 b. Credit allowed. A taxpayer that creates child care or expands child 7 care shall be allowed a credit against the tax imposed by chapter five, 8 or by subchapter two or three-a of chapter six, of this title to be 9 credited or refunded, without interest, in accordance with the 10 provisions of subdivision (q) of section 11-503, subdivision twenty- 11 three of section 11-604 and subdivision twenty-three of section 11-654 12 of this title. The amount of such credit shall be, for the portion of 13 the service year in which the child care program was in operation, the 14 sum of: (i) the product of the number of infant child care seats that 15 have been created or expanded and twenty percent of the child care rate 16 for such infant child care seats; and (ii) the product of the number of 17 toddler child care seats that have been created or expanded and twenty 18 percent of the child care rate for such toddler child care seats; 19 provided that such infant and toddler child care seats are child care 20 seats that are occupied. Notwithstanding the preceding sentence, a cred- 21 it shall not be allowed for more than twenty-five child care seats that 22 are occupied, and the amount of such credit may be reduced as a result 23 of an allocation of available funds, as described in subdivision e of 24 this section, for such credit. 25 c. Application process. A taxpayer must submit an application for such 26 credit by November first of the calendar year in which the service year 27 has ended. 28 1. Such application shall include but not be limited to: 29 (a) a permit issued by the department of health and mental hygiene to 30 operate a child care center indicating the number of child care seats 31 or, in the case of a child care center that has experienced an expansion 32 of child care seats, a permit issued by such department demonstrating 33 such expansion; and 34 (b) a certification from an independent certified public accountant 35 that provides: 36 (1) the total number of child care seats that are child care seats 37 that are occupied during such service year; 38 (2) of such total number of child care seats that are occupied, the 39 number of infant child care seats that are occupied and the number of 40 toddler child care seats that are occupied; and 41 (3) to the extent the taxpayer has expanded child care, the number of 42 child care seats in existence before such expansion and the number of 43 such child care seats that were occupied before such expansion. 44 2. No later than January thirty-first of the calendar year following 45 the calendar year in which the application was submitted, the department 46 of finance shall approve or deny such application and provide a calcu- 47 lation of the amount of such credit as determined by subdivision e of 48 this section for any application that has been approved. 49 d. Application of credit to tax year. The credit, as approved and 50 calculated by the department of finance pursuant to paragraph two of 51 subdivision c of this section, shall be applied to the tax year in which 52 the service year concludes, except that: (i) for a taxpayer whose tax 53 year concludes on or after September thirtieth and before December thir- 54 ty-first, the credit shall be applied to the tax year immediately 55 following the tax year in which the service year concludes; and (ii) to 56 provide the credit in a tax year consistent with this subdivision, theA. 9009--B 80 1 department of finance may establish procedures governing the application 2 of such credit where the tax year of a taxpayer who has applied for such 3 credit is less than twelve months, or where such tax year varies in 4 accordance with subsection f of section four hundred forty-one of the 5 internal revenue code. 6 e. Maximum amount of credit available. For each of the three tax years 7 in which the credit authorized by this section is available, the aggre- 8 gate amount of such credit shall be a maximum of twenty-five million 9 dollars. To the extent that the department of finance has determined 10 that the aggregate amount of such credit, as calculated pursuant to 11 subdivision b of this section, would exceed twenty-five million dollars, 12 such department shall reduce the amount of credit to be granted to each 13 taxpayer who has applied for such credit in accordance with a process to 14 be developed in rules promulgated by such department. In developing such 15 process, the department may consider factors including, but not limited 16 to, the date of application, the number of child care seats in a child 17 care program that are occupied, and the extent to which the taxpayer 18 bears the cost of the child care that is provided to the employees of 19 such taxpayer. 20 § 2. Section 11-503 of the administrative code of the city of New York 21 is amended by adding a new subdivision (q) to read as follows: 22 (q) Credit for the provision of child care. In addition to any other 23 credit allowed under this section, a taxpayer whose application for a 24 credit authorized by section 11-144 of this title has been approved by 25 the department of finance shall be allowed a credit against the tax 26 imposed by this chapter. The amount of the credit shall be determined as 27 provided in such section. To the extent the amount of the credit allowed 28 by this subdivision exceeds the amount of tax due pursuant to this chap- 29 ter, as calculated without such credit, such excess amount shall be 30 treated as an overpayment of tax to be credited or refunded in accord- 31 ance with the provisions of section 11-526 of this chapter, provided, 32 however, that notwithstanding the requirements of section 11-528 of this 33 chapter to the contrary, no interest shall be paid thereon. 34 § 3. Section 11-604 of the administrative code of the city of New York 35 is amended by adding a new subdivision 23 to read as follows: 36 (23) Credit for the provision of child care. In addition to any other 37 credit allowed under this section, a taxpayer whose application for a 38 credit authorized by section 11-144 of this title has been approved by 39 the department of finance shall be allowed a credit against the tax 40 imposed by this chapter. The amount of the credit shall be determined as 41 provided in such section. To the extent the amount of the credit allowed 42 by this subdivision exceeds the amount of tax due pursuant to this 43 subchapter, as calculated without such credit, such excess amount shall 44 be treated as an overpayment of tax to be credited or refunded in 45 accordance with the provisions of section 11-677 of this chapter, 46 provided, however, that notwithstanding the requirements of section 47 11-679 of this chapter to the contrary, no interest shall be paid there- 48 on. 49 § 4. Section 11-654 of the administrative code of the city of New York 50 is amended by adding a new subdivision 23 to read as follows: 51 (23) Credit for the provision of child care. In addition to any other 52 credit allowed under this section, a taxpayer whose application for a 53 credit authorized by section 11-144 of this title has been approved by 54 the department of finance shall be allowed a credit against the tax 55 imposed by this chapter. The amount of the credit shall be determined as 56 provided in such section. To the extent the amount of the credit allowedA. 9009--B 81 1 by this subdivision exceeds the amount of tax due pursuant to this 2 subchapter, as calculated without such credit, such excess amount shall 3 be treated as an overpayment of tax to be credited or refunded in 4 accordance with the provisions of section 11-677 of this chapter, 5 provided, however, that notwithstanding the requirements of section 6 11-679 of this chapter to the contrary, no interest shall be paid there- 7 on. 8 § 5. This act shall take effect immediately, provided that the credit 9 authorized by section 11-144 of the administrative code of the city of 10 New York, as added by section one of this act, shall be available to be 11 applied to the tax year beginning between January 1, 2023 and December 12 31, 2023, inclusive of those dates, and to the two tax years immediately 13 following such initial tax year. 14 PART VV 15 Section 1. The tax law is amended by adding a new section 45 to read 16 as follows: 17 § 45. Empire state digital gaming media production credit. (a) Allow- 18 ance of credit. (1) A taxpayer which is a digital gaming media 19 production entity engaged in qualified digital gaming media production, 20 or who is a sole proprietor of or a member of a partnership, which is a 21 digital gaming media production entity engaged in qualified digital 22 gaming media production, and is subject to tax under article nine-A or 23 twenty-two of this chapter, shall be allowed a credit against such tax 24 to be computed as provided herein. 25 (2) The amount of the credit shall be the product (or pro rata share 26 of the product, in the case of a member of a partnership or limited 27 liability company) of twenty-five percent and the eligible production 28 costs of one or more qualified digital gaming media productions. 29 (3) Eligible digital gaming media production costs for a qualified 30 digital gaming media production incurred and paid in this state but 31 outside such metropolitan commuter transportation district shall be 32 eligible for a credit of ten percent of such eligible production costs 33 in addition to the credit specified in paragraph two of this subdivi- 34 sion. 35 (4) Eligible production costs shall not include those costs used by 36 the taxpayer or another taxpayer as the basis calculation of any other 37 tax credit allowed under this chapter or allowed in any other state. 38 (b) Allocation of credit. The aggregate amount of tax credits allowed 39 under this section, subdivision fifty-five of section two hundred ten-B 40 and subsection (nnn) of section six hundred six of this chapter in any 41 taxable year shall be twenty million dollars. The aggregate amount of 42 credits for any taxable year must be distributed on a regional basis as 43 follows: twenty-five percent of the aggregate amount of credits shall be 44 available for qualified digital gaming media productions that incur at 45 least sixty percent of eligible production costs for a qualified digital 46 gaming media production in region one; ten percent of the aggregate 47 amount of credits shall be available for qualified digital gaming media 48 productions that incur at least sixty percent of eligible production 49 costs for a qualified digital gaming media production in region two; and 50 sixty-five percent of the aggregate amount of credits shall be available 51 for qualified digital gaming media productions that incur at least sixty 52 percent of eligible production costs for a qualified digital gaming 53 media production in region three. If such regional distribution is not 54 fully allocated in any taxable year, the remainder of such credits shallA. 9009--B 82 1 be available for allocation to any region in the subsequent tax year. 2 For the purposes of this section region one shall contain the city of 3 New York; region two shall contain the counties of Westchester, Rock- 4 land, Nassau and Suffolk; and region three shall contain any county not 5 contained in regions one and two. Such credit shall be allocated by the 6 empire state development corporation among taxpayers in order of priori- 7 ty based upon the date of filing an application for allocation of 8 digital gaming media production credit with such office. If the total 9 amount of allocated credits applied for in any particular year exceeds 10 the aggregate amount of tax credits allowed for such year under this 11 section, such excess shall be treated as having been applied for on the 12 first day of the subsequent taxable year. 13 (c) Definitions. As used in this section: 14 (1) "Qualified digital gaming media production" means: (i) a website, 15 the digital media production costs of which are paid or incurred predo- 16 minately in connection with (A) video simulation, animation, text, 17 audio, graphics or similar gaming related property embodied in digital 18 format, and (B) interactive features of digital gaming (e.g., links, 19 message boards, communities or content manipulation); (ii) video or 20 interactive games produced primarily for distribution over the internet, 21 wireless network or successors thereto; (iii) animation, simulation or 22 embedded graphics digital gaming related software intended for commer- 23 cial distribution regardless of medium; and (iv) a digital gaming media 24 production in which qualified digital gaming media production costs 25 equal to or are in excess of seven thousand five hundred dollars if 26 incurred and paid in this state in twelve months preceding the date on 27 which the credit is claimed. Provided, however, if such production costs 28 are incurred and paid outside the metropolitan commuter transportation 29 district in this state, such production costs shall be equal to or in 30 excess of three thousand seven hundred fifty dollars to be a qualified 31 digital gaming media production for purposes of this paragraph. A quali- 32 fied digital gaming media production does not include a website, video, 33 interactive game or software that is used predominately for: electronic 34 commerce (retail or wholesale purposes other than the sale of video or 35 interactive games), gambling (including activities regulated by a New 36 York gaming agency), exclusive local consumption for entities not acces- 37 sible by the general public including industrial or other private 38 purposes, and political advocacy purposes. 39 (2) "Digital gaming media production costs" means any costs for prop- 40 erty used and wages or salaries paid to individuals directly employed 41 for services performed by those individuals directly and predominantly 42 in the creation of a digital gaming media production or productions. 43 Digital gaming media production costs include but shall not be limited 44 to payments for property used and services performed directly and 45 predominantly in the development (including concept creation), design, 46 production (including concept creation), design, production (including 47 testing), editing (including encoding) and compositing (including the 48 integration of digital files for interaction by end users) of digital 49 gaming media. Digital gaming media production costs shall not include 50 expenses incurred for the distribution, marketing, promotion, or adver- 51 tising content generated by end-users or other costs not directly and 52 predominantly related to the creation, production or modification of 53 digital gaming media. In addition, salaries or other income distribution 54 related to the creation of digital gaming media for any person who 55 serves in the role of chief executive officer, chief financial officer, 56 president, treasurer or similar position shall not be included asA. 9009--B 83 1 digital gaming media production costs. Furthermore, any income or other 2 distribution to any individual who holds an ownership interest in a 3 digital gaming media production entity shall not be included as digital 4 gaming media production costs. 5 (3) "Qualified digital gaming media production costs" means digital 6 gaming media production costs only to the extent such costs are attrib- 7 utable to the use of property or the performance of services by any 8 persons within the state directly and predominantly in the creation, 9 production or modification of digital gaming related media. Such total 10 production costs incurred and paid in this state shall be equal to or 11 exceed seventy-five percent of total cost of an eligible production 12 incurred and paid within and without this state. 13 (d) Cross-references. For application of the credit provided for in 14 this section, see the following provisions of this chapter: 15 (1) Article nine-A: section two hundred ten-B, subdivision fifty-five. 16 (2) Article twenty-two: section six hundred six, subsection (i), para- 17 graph one, subparagraph (B), clause (xlvi). 18 (3) Article twenty-two: section six hundred six, subsection (nnn). 19 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 20 sion 55 to read as follows: 21 55. Empire state digital gaming media production credit. (a) Allowance 22 of credit. A taxpayer who is eligible pursuant to section forty-five of 23 this chapter shall be allowed a credit to be computed as provided in 24 such section forty-five against the tax imposed by this article. 25 (b) Application of credit. The credit allowed under this subdivision 26 for any taxable year shall not reduce the tax due for such year to less 27 than the amount prescribed in paragraph (d) of subdivision one of 28 section two hundred ten of this article. Provided, however, that if the 29 amount of the credit allowable under this subdivision for any taxable 30 year reduces the tax to such amount, the excess shall be treated as an 31 overpayment of tax to be credited or refunded in accordance with the 32 provisions of section one thousand eighty-six of this chapter, provided, 33 however, no interest shall be paid thereon. 34 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 35 of the tax law is amended by adding a new clause (xlvi) to read as 36 follows: 37 (xlvi) Empire state digital Amount of credit 38 gaming media production under subdivision 39 credit under subsection (nnn) fifty-five of section 40 two hundred ten-B 41 § 4. Section 606 of the tax law is amended by adding a new subsection 42 (nnn) to read as follows: 43 (nnn) Empire state digital gaming media production credit. (1) Allow- 44 ance of credit. A taxpayer who is eligible pursuant to section forty- 45 five of this chapter shall be allowed a credit to be computed as 46 provided in such section forty-five against the tax imposed by this 47 article. 48 (2) Application of credit. If the amount of the credit allowable under 49 this subsection for any taxable year exceeds the taxpayer's tax for such 50 year, the excess shall be treated as an overpayment of tax to be credit- 51 ed or refunded as provided in section six hundred eighty-six of this 52 article, provided, however, that no interest shall be paid thereon. 53 § 5. The state commissioner of economic development, after consulting 54 with the state commissioner of taxation and finance, shall promulgate 55 regulations by June 30, 2022 to establish procedures for the allocationA. 9009--B 84 1 of tax credits as required by subdivision (a) of section 45 of the tax 2 law. Such rules and regulations shall include provisions describing the 3 application process, the due dates for such applications, the standards 4 which shall be used to evaluate the applications, the documentation that 5 will be provided to taxpayers substantiate to the New York state depart- 6 ment of taxation and finance the amount of tax credits allocated to such 7 taxpayers, under what conditions all or a portion of this tax credit may 8 be revoked, and such other provisions as deemed necessary and appropri- 9 ate. Notwithstanding any other provisions to the contrary in the state 10 administrative procedure act, such rules and regulations may be adopted 11 on an emergency basis if necessary to meet such June 30, 2022 deadline. 12 § 6. The economic development law is amended by adding a new section 13 242 to read as follows: 14 § 242. Reports on the digital gaming industries in New York. 1. The 15 empire state development corporation shall file a report on a biannual 16 basis with the director of the division of the budget and the chair- 17 persons of the assembly ways and means committee and senate finance 18 committee. The report shall be filed no later than thirty days before 19 the mid-point and the end of the state fiscal year. The first report 20 shall cover the calendar half year that begins on January first, two 21 thousand twenty-four. Each report must contain the following informa- 22 tion for the covered calendar half year: 23 (a) the total dollar amount of credits allocated pursuant to section 24 forty-five of the tax law during the half year, broken down by month; 25 (b) the number of digital gaming projects, which have been allocated 26 tax credits of less than one million dollars per project, and the total 27 dollar amount of credits allocated to those projects distributed by 28 region pursuant to subdivision (b) of section forty-five of the tax law; 29 (c) the number of digital gaming projects, which have been allocated 30 tax credits of more than one million dollars, and the total dollar 31 amount of credits allocated to those projects distributed by region 32 pursuant to subdivision (b) of section forty-five of the tax law; 33 (d) a list of each eligible digital gaming project, which has been 34 allocated a tax credit enumerated by region pursuant to subdivision (b) 35 of section forty-five of the tax law, and for each of those projects, 36 (i) the estimated number of employees associated with the project, (ii) 37 the estimated qualifying costs for the projects, (iii) the estimated 38 total costs of the project, (iv) the credit eligible employee hours for 39 each project, and (v) total wages for such credit eligible employee 40 hours for each project; and 41 (e) (i) the name of each taxpayer allocated a tax credit for each 42 project and the county of residence or incorporation of such taxpayer 43 or, if the taxpayer does not reside or is not incorporated in New York, 44 the state of residence or incorporation; however, if the taxpayer claims 45 a tax credit because the taxpayer is a member of a limited liability 46 company, a partner in a partnership or a shareholder in a subchapter S 47 corporation, the name of each limited liability company, partnership or 48 subchapter S corporation earning any of those tax credits must be 49 included in the report instead of information about the taxpayer claim- 50 ing the tax credit, (ii) the amount of tax credit allocated to each 51 taxpayer; provided however, if the taxpayer claims a tax credit because 52 the taxpayer is a member of a limited liability company, a partner in a 53 partnership or a shareholder in a subchapter S corporation, the amount 54 of tax credit earned by each entity must be included in the report 55 instead of information about the taxpayer claiming the tax credit, and 56 (iii) information identifying the project associated with each taxpayerA. 9009--B 85 1 for which a tax credit was claimed under section forty-five of the tax 2 law. 3 2. The empire state development corporation shall file a report on a 4 triennial basis with the director of the division of the budget and the 5 chairpersons of the assembly ways and means committee and senate finance 6 committee. The first report shall be filed no later than March first, 7 two thousand twenty-five. The report must be prepared by an independent 8 third party auditor and include: (a) information regarding the empire 9 state digital gaming production credit program including the efficiency 10 of operations, reliability of financial reporting, compliance with laws 11 and regulations and distribution of assets and funds; (b) an economic 12 impact study prepared by an independent third party of the program with 13 special emphasis on the regional impact by region and the total dollar 14 amount of credits allocated to those projects distributed by region 15 pursuant to subdivision (b) of section forty-five of the tax law; and 16 (c) any other information or statistical information that the commis- 17 sioner of economic development deems to be useful in analyzing the 18 effects of the programs. 19 § 7. This act shall take effect immediately and shall apply to taxable 20 years beginning on January 1, 2022 and before January 1, 2027; provided 21 that sections one through four of this act shall expire and be deemed 22 repealed December 31, 2026. 23 PART WW 24 Section 1. The opening paragraph and paragraph (d) of subdivision 7 25 of section 1367-a of the racing, pari-mutuel wagering and breeding law, 26 as added by section 4 of part Y of chapter 59 of the laws of 2021, are 27 amended to read as follows: 28 A platform provider may be licensed by the commission only after 29 having been selected for potential licensure by the commission following 30 a competitive bidding process in which the commission shall issue a 31 request for applications no later than July first, two thousand twenty- 32 one; provided however, that additional mobile sports wagering licenses 33 may be licensed by the commission only after having been selected for 34 potential licensure by the commission following a competitive bidding 35 process in which the commission shall issue a second request for appli- 36 cations no later than July first, two thousand twenty-two; and provided 37 however, that the deadline for submission of applications shall be no 38 later than thirty days after the date upon which the commission issues 39 such request for applications. 40 (d) The commission shall award a license to each of the [two] highest 41 scoring platform providers that submit applications; provided however, 42 that such awards shall require that [both] winning platform providers 43 pay the same tax rate; and provided further, that the commission shall 44 [require that no less than four] authorize up to sixteen mobile sports 45 wagering operators [will] to be operating in the state. The commission 46 may award additional licenses if it determines that such additional 47 awards are in the best interests of the state; provided however, that 48 any additional platform providers awarded licenses must also agree to 49 pay the same tax rate as those platform providers that were initially 50 awarded licenses by the commission. The award of any such license shall 51 require each applicant to remit the highest percentage of gross gaming 52 revenue from mobile sports wagering contained in an applicant's bid 53 selected by the commission considered for licensure. A qualified appli- 54 cant shall be afforded the ability to revise its bid in any such mannerA. 9009--B 86 1 in order for such bid to meet the percentage of gross gaming revenue 2 from mobile sports wagering as required by the commission for license 3 award, provided that the bid does not incorporate any additional opera- 4 tors not already included in the bid; and provided however that it is 5 not determined by the commission that the revised bid no longer meets 6 all requirements and criteria established pursuant to this section and 7 the request for applications. Any applicant that does not revise its bid 8 to meet the percentage of gross gaming revenue from mobile sports wager- 9 ing required by the commission for license award shall not be awarded a 10 license. 11 § 2. Section 1367-a of the racing, pari-mutuel wagering and breeding 12 law is amended by adding two new subdivisions 8 and 9 to read as 13 follows: 14 8. Pursuant to subdivision seven of this section, the commission shall 15 award up to sixteen mobile sports wagering operator licenses. 16 (a) Applicants that participated in the request for proposal issued 17 pursuant to subdivision seven of this section and not awarded a mobile 18 sports wagering license shall be eligible to reapply for consideration 19 pursuant to this subdivision. 20 (b) Nothing herein shall prohibit a platform provider that did not 21 previously respond to the request for application from applying. New 22 applicants shall submit applications demonstrating the criteria outlined 23 in subdivision seven of this section. 24 9. The commission shall establish a goal to award thirty percent of 25 mobile sports wagering licenses pursuant to subdivisions seven and eight 26 of this section to businesses owned by members of a minority group as 27 defined in subdivision eight of section three hundred ten of the execu- 28 tive law. 29 § 3. This act shall take effect immediately. 30 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 31 sion, section or part of this act shall be adjudged by any court of 32 competent jurisdiction to be invalid, such judgment shall not affect, 33 impair, or invalidate the remainder thereof, but shall be confined in 34 its operation to the clause, sentence, paragraph, subdivision, section 35 or part thereof directly involved in the controversy in which such judg- 36 ment shall have been rendered. It is hereby declared to be the intent of 37 the legislature that this act would have been enacted even if such 38 invalid provisions had not been included herein. 39 § 3. This act shall take effect immediately provided, however, that 40 the applicable effective date of Parts A through WW of this act shall be 41 as specifically set forth in the last section of such Parts.
