Bill Text: NY S06607 | 2019-2020 | General Assembly | Introduced

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Bill Title: Extends the economic transformation and facility redevelopment program and expands the program by including more correctional facility closures.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS [S06607 Detail]

Download: New_York-2019-S06607-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6607

                               2019-2020 Regular Sessions

                    IN SENATE

                                      June 19, 2019
                                       ___________

        Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the economic development law, the tax law and chapter 61
          of the laws of 2011, amending the economic development  law,  the  tax
          law and the real property tax law relating to establishing the econom-
          ic transformation and facility redevelopment program and providing tax
          benefits  under  that program, in relation to the economic transforma-
          tion and facility redevelopment program and the effectiveness thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision 11 of section 400 of the economic development
     2  law, as amended by section 3 of part QQ of chapter 60  of  the  laws  of
     3  2016, is amended to read as follows:
     4    11. "Closed facility" means:
     5    (a)  a  correctional facility, as defined in paragraph (a) of subdivi-
     6  sion four of section two of the correction law, that has  been  selected
     7  by  the governor of the state of New York for closure after April first,
     8  two thousand eleven but no later than March thirty-first,  two  thousand
     9  twelve; or
    10    (b)  a  correctional facility, as defined in paragraph (a) of subdivi-
    11  sion four of section two of the correction law, that has  been  selected
    12  by  the governor of the state of New York for closure after April first,
    13  two thousand nineteen but no later than March thirty-first, two thousand
    14  twenty; or
    15    (c) a facility operated by the office of children and family  services
    16  under article nineteen-G of the executive law that is closed pursuant to
    17  authority  granted  to such office in a chapter of the laws of two thou-
    18  sand eleven; or
    19    [(c)] (d) which has been closed  provided  that  the  commissioner  of
    20  correctional  services or the commissioner of the office of children and
    21  family services has notified the commissioner of such closure; or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13439-01-9
        S. 6607                             2

     1    [(d)] (e) a facility previously owned by the state, and when operated,
     2  was operated as a psychiatric facility pursuant to section 7.17  of  the
     3  mental  hygiene law, and located within the metropolitan commuter trans-
     4  portation district but outside New York city.
     5    §  2. Subdivision 1 of section 402 of the economic development law, as
     6  amended by section 4 of part QQ of chapter 60 of the laws  of  2016,  is
     7  amended to read as follows:
     8    1. A business entity must submit a completed application as prescribed
     9  by  the  commissioner  by  the later of (a) the date that is three years
    10  after the date of the closure of the  closed  facility  located  in  the
    11  economic  transformation area in which the business entity would operate
    12  or (b) January first, two thousand fifteen.  Provided  however,  in  the
    13  case  of  a closed facility described in paragraph [(d)] (e) of subdivi-
    14  sion eleven of section four hundred of this article, a  business  entity
    15  must submit a completed application as prescribed by the commissioner by
    16  September first, two thousand sixteen. Notwithstanding the foregoing, in
    17  the case of a closed facility, as described pursuant to paragraph (b) of
    18  subdivision  eleven  of section four hundred of this article, a business
    19  entity shall submit a completed application as prescribed by the commis-
    20  sioner by September first, two thousand twenty.
    21    § 3. Paragraph 1 of subdivision (h) of section 35 of the tax  law,  as
    22  amended  by  section  5 of part QQ of chapter 60 of the laws of 2016, is
    23  amended to read as follows:
    24    (1) A taxpayer which meets the requirements in this section  shall  be
    25  eligible  to claim a credit on qualified investments with respect to the
    26  project for which the certificate of eligibility is issued.  The  credit
    27  shall  be  equal  to  ten percent of the cost or other basis for federal
    28  income tax purposes of the qualified investment at  a  closed  facility.
    29  Provided  however,  for purposes of this credit only, a taxpayer that is
    30  the owner of a closed facility  described  in  paragraph  [(d)]  (e)  of
    31  subdivision  eleven  of section four hundred of the economic development
    32  law, shall be allowed to include in its cost or other basis of the qual-
    33  ified investment at the closed facility, any demolition  costs  incurred
    34  at  such closed facility. Those demolition costs shall be limited to the
    35  following costs: (i) asbestos removal costs, (ii) rental  of  demolition
    36  equipment,  (iii)  personnel  costs to operate the demolition equipment,
    37  (iv) costs to remove and dispose of demolition debris, (v) the costs  of
    38  any  permits,  licenses  and insurance necessary for the demolition. The
    39  total amount of investment tax credit allowed for all  eligible  partic-
    40  ipants  under this subdivision for qualified investments located at each
    41  closed facility shall not exceed eight million dollars. The credit shall
    42  be equal to six percent of the cost or other basis  for  federal  income
    43  tax purposes for all other qualified investments, but the credit allowed
    44  to a taxpayer may not exceed four million dollars.
    45    §  4. Section 12 of part V of chapter 61 of the laws of 2011, amending
    46  the economic development law, the tax law and the real property tax  law
    47  relating  to establishing the economic transformation and facility rede-
    48  velopment program and providing tax  benefits  under  that  program,  is
    49  amended to read as follows:
    50    §  12.  This act shall take effect immediately and shall expire and be
    51  deemed repealed December 31, [2021] 2024.
    52    § 5. This act shall take effect immediately; provided, that the amend-
    53  ments to article 18 of the economic development law made by sections one
    54  and two of this act shall not affect the  repeal  of  such  article  and
    55  shall  be  deemed  repealed therewith; provided, further that the amend-
    56  ments to section 35 of the tax law made by section  three  of  this  act
        S. 6607                             3

     1  shall not affect the repeal of such section and shall be deemed repealed
     2  therewith.