2005-06 Budget - Article 7 Bill s996


                STATE OF NEW YORK
        ________________________________________________________________________

           S. 996                                                   A. 1926
 
                SENATE - ASSEMBLY
 
                                    January 21, 2005
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when printed to be committed to the Committee on Finance
 
        IN  ASSEMBLY  --  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
 
        AN  ACT to amend the public authorities law and the economic development
          law, in relation to reauthorize the New York power authority  to  make
          contributions  to  the  general fund and authorize the continuation of
          power for jobs and electricity savings reimbursement program;  and  to
          amend  chapter 316 of the laws of 1997 amending the public authorities
          law and other laws relating to the provision  of  low  cost  power  to
          foster  statewide  economic development, in relation to extending such
          provisions (Part A); to amend the New  York  state  urban  development
          corporation act, in relation to creating operation SPUR and to author-
          ize  the  New  York state urban development corporation, the dormitory
          authority of the state  of  New  York,  the  environmental  facilities
          corporation, the New York state housing finance agency and the thruway
          authority to issue bonds or notes in support of priority high technol-
          ogy  and economic development projects (Part B); to amend the tax law,
          in relation to creating wage tax credits for certain  businesses  that
          create  a minimum number of jobs in an area which is part of the stra-
          tegic partnership for upstate resurgence initiative (Part C); to amend
          the tax law, in relation to the calculation of the business allocation
          percentage under article 9-A of such  law  for  certain  manufacturers
          which conduct business in an area which is part of the strategic part-
          nership  for  upstate  resurgence  initiative  and  in relation to the
          alternative minimum tax under article 9-A thereof (Part D);  to  amend
          the  tax  law,  in relation to authorizing a SPUR center of excellence
          affiliation credit under article 9-A of such  law  (Part  E);  and  to
          amend  the  general  municipal law and the tax law, in relation to the
          purpose, administration and benefits of the empire zones program;  and
          to  repeal section 962 of the general municipal law relating to empire
          zone development plan (Part F)
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12177-01-5
        S. 996                              2                            A. 1926
 
          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 2005-2006
     3  state fiscal year.  Each component is wholly  contained  within  a  Part
     4  identified  as Parts A through F. 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, includ-
     7  ing the effective date of the Part, which makes reference to  a  section
     8  "of  this  act", when used in connection with that particular component,
     9  shall be deemed to mean and refer to the corresponding  section  of  the
    10  Part  in  which  it  is  found. Section three of this act sets forth the
    11  general effective date of this act.
 
    12                                   PART A
 
    13    Section 1. Subparagraph 2 of paragraph g  of  the  ninth  undesignated
    14  paragraph  of  section 1005 of the public authorities law, as amended by
    15  section 2 of part T of chapter 59 of the laws of  2004,  is  amended  to
    16  read as follows:
    17    2. The authority, as deemed feasible and advisable by the trustees, is
    18  authorized  to  make  [an]  payments to recipients of the power for jobs
    19  electricity  savings  reimbursements  and  additional  annual  voluntary
    20  [contribution]  contributions  into  the state treasury to the credit of
    21  the general fund. The authority shall make such [contribution]  contrib-
    22  utions  to the state treasury no later than ninety days after the end of
    23  the calendar year in which a credit under subdivision  nine  of  section
    24  one  hundred eighty-six-a of the tax law is available: (a) for the addi-
    25  tional three hundred megawatts of power under the fourth  phase  of  the
    26  program  provided  under chapter sixty-three of the laws of two thousand
    27  and under the fifth phase for the additional  one  hundred  eighty-three
    28  megawatts  provided  under chapter two hundred twenty-six of the laws of
    29  two thousand two; and (b) for any extension of any  contract  for  allo-
    30  cations  under the fourth phase of the program and under the fifth phase
    31  of the program[, and]. Payments for any electricity  savings  reimburse-
    32  ment  under  section one hundred eighty-nine of the economic development
    33  law [is available] shall be made pursuant to such section.  Such  annual
    34  [contribution]  contributions  shall  be  equal  to fifty percent of the
    35  total amount of such credits available each year to all local  distribu-
    36  tors of electricity. In addition, such authorization for contribution in
    37  state fiscal year two thousand two--two thousand three shall be equal to
    38  the  total  amount of credit available in two thousand one and two thou-
    39  sand two; and such authorization for contribution in state  fiscal  year
    40  two thousand three--two thousand four shall be equal to the total amount
    41  of  credit  available  in  two thousand three; under subdivision nine of
    42  section one hundred eighty-six-a of the tax law under the  fourth  phase
    43  of the program for the additional three hundred megawatts provided under
    44  chapter  sixty-three  of  the  laws  of two thousand and under the fifth
    45  phase for the additional one  hundred  eighty-three  megawatts  provided
    46  under chapter two hundred twenty-six of the laws of two thousand two. In
    47  state  fiscal year two thousand four--two thousand five, such authorized
    48  annual contribution shall be equal to one hundred percent of  the  total
    49  amount  of such credits available each year to all local distributors of
    50  electricity. Such authorization for contribution in state  fiscal  years
    51  two  thousand  four  and  two  thousand five shall be equal to the total
        S. 996                              3                            A. 1926
 
     1  amount of credit available in two thousand four and two  thousand  five;
     2  under  subdivision  nine  of section one hundred eighty-six-a of the tax
     3  law under the fourth phase of  the  program  for  the  additional  three
     4  hundred  megawatts provided under chapter sixty-three of the laws of two
     5  thousand and under the fifth phase for the additional one hundred eight-
     6  y-three megawatts provided under chapter two hundred twenty-six  of  the
     7  laws  of  two thousand two. In addition, such authorization for contrib-
     8  ution for any extension of any contract for allocations under the fourth
     9  phase of the program and under the fifth phase of the  program  in  each
    10  state  fiscal  year  shall  be  equal  to  the total amount of credit or
    11  reimbursement available in state  fiscal  year  two  thousand  four--two
    12  thousand  five  [and], state fiscal year two thousand five--two thousand
    13  six and two thousand six--two thousand seven.    Additionally,  notwith-
    14  standing any other section of law, the authority is authorized to make a
    15  contribution  in  an  amount related to total amounts of credit received
    16  under phases one, two and three of the program. In  no  case  shall  the
    17  contribution  for  state fiscal year two thousand five--two thousand six
    18  be less than seventy-five million  dollars.  The  department  of  public
    19  service  shall  estimate the payment due by the end of the calendar year
    20  in which the credit is available. In no case shall  the  amount  of  the
    21  total  annual contributions for the years during which delivery and sale
    22  of [phase four and phase five power] power associated with all power for
    23  jobs phases and any extensions thereof takes place exceed the  aggregate
    24  total  of  [two  hundred seventy-five] three hundred ninety-four million
    25  dollars.  [Such aggregate total shall be in addition to any contribution
    26  made pursuant to subparagraph one of this paragraph.]
    27     § 2. Paragraph 5 of subdivision (a) of section  189  of  the  economic
    28  development  law,  as  added by section 3 of part T of chapter 59 of the
    29  laws of 2004, is amended to read as follows:
    30    5. "Power for jobs  electricity  savings  reimbursements"  shall  mean
    31  payments  made  by  the power authority of the state of New York [or the
    32  New York state energy research and development authority if the attorney
    33  general determines the power authority of the state of New  York  cannot
    34  legally make such payments] as recommended by the board to recipients of
    35  allocations  of  power  under phases four and five of the power for jobs
    36  program for a period of time  until  November  thirtieth,  two  thousand
    37  four, subsequent to the expiration of their phase four or five power for
    38  jobs  contract  provided however that [recipients whose contracts expire
    39  after November thirtieth, two thousand four] any power for jobs  recipi-
    40  ent may choose to receive electricity savings reimbursement as a substi-
    41  tute  for  a contract extension for the period from the date the recipi-
    42  ent's contract  expires  through  December  thirty-first,  two  thousand
    43  [five]  six.  The  "basic reimbursement" is an amount that when credited
    44  against the recipient's actual "unit cost of electricity" during a quar-
    45  ter (meaning the cost for commodity and delivery per  kilowatt-hour  for
    46  the  quantity of electricity purchased and delivered under the power for
    47  jobs program during a similar period in the final year  of  the  recipi-
    48  ent's contract), results in an effective unit cost of electricity during
    49  the quarter equal to the average unit cost of electricity such recipient
    50  paid  during  the  final  year of the contract for power allocated under
    51  phase four or five of the power for jobs program.
    52     § 3. Subdivision (l) of section 189 of the economic  development  law,
    53  as  added  by  section 4 of part T of chapter 59 of the laws of 2004, is
    54  amended to read as follows:
    55    (l) The board shall solicit and review applications for the power  for
    56  jobs  electricity  savings  reimbursements  and contract extensions from
        S. 996                              4                            A. 1926
 
     1  recipients of power for jobs allocations under phases four and  five  of
     2  the  program for the award of such reimbursements and/or contract exten-
     3  sions. The board may prescribe a simplified  form  and  content  for  an
     4  application for such reimbursements or extensions. An applicant shall be
     5  eligible  for  such  reimbursements  and/or  extensions only if it is in
     6  compliance with and agrees to continue to meet  the  job  retention  and
     7  creation commitments set forth in its prior power for jobs contract. The
     8  board  shall  review  such applications and make recommendations for the
     9  award: 1. of such reimbursements through  the  power  authority  of  the
    10  state  of  New  York  for a period of time up to November thirtieth, two
    11  thousand four, and 2. of such contract extensions or  reimbursements  as
    12  applied  for  by  the  recipient for a period of time beginning December
    13  first, two thousand four and ending December thirty-first, two  thousand
    14  [five]  six.   At no time shall a recipient receive both a reimbursement
    15  and extension after December first, two thousand four. The power author-
    16  ity of the state of New York shall receive notification from  the  board
    17  regarding the award of power for jobs electricity savings reimbursements
    18  and/or contract extensions.
    19     §  4.  Subdivision (f) of section 189 of the economic development law,
    20  as amended by section 5 of part T of chapter 59 of the laws of 2004,  is
    21  amended to read as follows:
    22    (f)  Eligibility.  The  board  shall  recommend applications for allo-
    23  cations of power under the power for jobs program to or for the  use  of
    24  businesses  which  normally  utilize  a  minimum peak electric demand in
    25  excess of four hundred kilowatts; provided,  however,  that  up  to  one
    26  hundred  megawatts  of power available for allocation during the initial
    27  three phases of the power for jobs program may be recommended for  allo-
    28  cations  to  not-for-profit  corporations  and to small businesses; and,
    29  provided, further that up to seventy-five megawatts of  power  available
    30  for allocation during the fourth phase of the program may be recommended
    31  for  allocations to not-for-profit corporations and to small businesses.
    32  The board may require small businesses that normally utilize  a  minimum
    33  peak  electric  demand  of  less than one hundred kilowatts to aggregate
    34  their electric demand in amounts of no less than one hundred  kilowatts,
    35  for  the  purposes  of applying to the board for an allocation of power.
    36  The board shall recommend allocations of the  additional  three  hundred
    37  megawatts  available  during the fourth phase of the program to any such
    38  eligible applicant, including any recipient of  power  allocated  during
    39  the first phase of the program. The board shall recommend allocations of
    40  the  additional  one hundred eighty-three megawatts available during the
    41  fifth phase of the program to  any  eligible  applicant,  including  any
    42  recipient  of  power allocated during the second and third phases of the
    43  program; provided, however, that the term of contracts  for  allocations
    44  under  the  fifth  phase  of  the program shall in no case extend beyond
    45  December thirty-first, two thousand [five]  six.    Notwithstanding  any
    46  provision  of law to the contrary, and, in particular, the provisions of
    47  this chapter concerning the terms of contracts for allocations under the
    48  power for jobs program, the terms of any contract with  a  recipient  of
    49  power  allocated  under phase two of the power for jobs program that has
    50  expired or will expire on or before the thirty-first day of August,  two
    51  thousand two, may be extended by the power authority of the state of New
    52  York  for  an additional period of three months effective on the date of
    53  such expiration, pending the filing and approval of  an  application  by
    54  such  recipient  for an allocation under the fifth phase of the program.
    55  The term of any new contract with such recipient under the  fifth  phase
    56  of  the  program  shall  be  deemed  to include any three month contract
        S. 996                              5                            A. 1926
 
     1  extension made pursuant to this subdivision and the termination date  of
     2  any  such  new  contract under phase five shall be no later than if such
     3  new contract had  commenced  upon  the  expiration  of  the  recipient's
     4  original  phase two contract. The terms of any contract with a recipient
     5  of power allocated under phase four and/or phase five of the  power  for
     6  jobs  program  that  has expired or will expire on or before the thirty-
     7  first day of December, two thousand five, may be extended by  the  power
     8  authority of the state of New York from a date beginning no earlier than
     9  the  first  day  of  December,  two  thousand four and extending through
    10  December thirty-first, two thousand [five] six.
    11     § 5. Section 9 of chapter 316 of the laws of 1997 amending the  public
    12  authorities  law  and  other  laws relating to the provision of low cost
    13  power to foster statewide economic development, as amended by section  6
    14  of  part  KK  of  chapter  63 of the laws of 2000, is amended to read as
    15  follows:
    16     § 9. This act shall take effect immediately and shall  expire  and  be
    17  deemed repealed December 31, [2005] 2006.
    18     §  6.  This  act  shall take effect immediately and shall be deemed to
    19  have been in full force and effect on and after April 1, 2005; provided,
    20  however, that the amendments made to section 1005 of the public authori-
    21  ties law by section one of this act and the amendments made  to  section
    22  189  of  the economic development law by sections two, three and four of
    23  this act shall not affect the expiration and repeal of such paragraph of
    24  section 1005 of the public authorities  law  and  such  section  of  the
    25  economic  development law and shall expire and be deemed repealed there-
    26  with.
 
    27                                   PART B
 
    28    Section 1. (a) Subject to the provisions of chapter 59 of the laws  of
    29  2000,  but notwithstanding any provisions of law to the contrary, one or
    30  more of the authorized issuers, as defined by subdivision 1  of  section
    31  68-a  of  the  state finance law are hereby authorized to issue bonds or
    32  notes in one or more series in an  aggregate  principal  amount  not  to
    33  exceed  $90,000,000  excluding  bonds issued to finance one or more debt
    34  service reserve funds, to pay costs of issuance of such bonds, and bonds
    35  or notes issued to refund or otherwise repay such bonds or notes  previ-
    36  ously  issued, for the purpose of reimbursing the state capital projects
    37  fund disbursements made pursuant to appropriations for Operation Strate-
    38  gic Partnership for Upstate Resurgence, and the  New  York  state  urban
    39  development  corporation  is  authorized to utilize the proceeds of such
    40  bonds or notes to finance grants, loans or combinations thereof pursuant
    41  to Operation Strategic Partnership for Upstate Resurgence, as  appropri-
    42  ated  by  a  chapter  of  the laws of 2005.   Eligible project costs may
    43  include, but not be limited to  the  cost  of  design,  financing,  site
    44  investigations,    site   acquisition   and   preparation,   demolition,
    45  construction, rehabilitation, acquisition of  machinery  and  equipment,
    46  parking  facilities,  and  infrastructure.  Such bonds and notes of such
    47  authorized issuers shall not be a debt of the state, and the state shall
    48  not be liable thereon, nor shall they be payable out of any funds  other
    49  than those appropriated by the state to such authorized issuers for debt
    50  service  and  related expenses pursuant to any service contract executed
    51  pursuant to subdivision (b) of this section and  such  bonds  and  notes
    52  shall contain on the face thereof a statement to such effect. Except for
    53  purposes  of  complying  with  the  internal  revenue code, any interest
        S. 996                              6                            A. 1926
 
     1  income earned on bond proceeds shall only be used to pay debt service on
     2  such bonds.
     3    (b) Notwithstanding any provisions of law to the contrary, in order to
     4  assist  such  authorized  issuers  in undertaking the administration and
     5  financing of the projects authorized pursuant to subdivision (a) of this
     6  section, the director of the budget is hereby authorized to  enter  into
     7  one  or  more  service  contracts  with such authorized issuers, none of
     8  which shall exceed more than 20 years in duration, upon such  terms  and
     9  conditions  as  the  director  of the budget and such authorized issuers
    10  shall agree, so as to annually provide to such  authorized  issuers,  in
    11  the  aggregate, a sum not to exceed the annual debt service payments and
    12  related expenses required for the bonds and  notes  issued  pursuant  to
    13  this  section. Any service contract entered into pursuant to this subdi-
    14  vision shall provide that the obligation of the state to pay the  amount
    15  therein  provided  shall  not  constitute a debt of the state within the
    16  meaning of any constitutional or statutory provision and shall be deemed
    17  executory only to the extent of monies available and that  no  liability
    18  shall  be  incurred  by  the  state beyond the monies available for such
    19  purposes, subject to annual appropriation by the legislature.  Any  such
    20  contract  or  any payments made or to be made thereunder may be assigned
    21  or pledged by such authorized issuers as  security  for  its  bonds  and
    22  notes, as authorized by this section.
    23     §  2.  Section  1 of chapter 174 of the laws of 1968, constituting the
    24  New York state urban development corporation act, is amended by adding a
    25  new section 16-n to read as follows:
    26     § 16-n. Operation SPUR. (1) Creation. The Operation Strategic Partner-
    27  ship for Upstate Resurgence program, also known as "Operation SPUR",  is
    28  hereby  created  for  the  purpose of providing financial assistance for
    29  economic development projects in areas outside the  metropolitan  trans-
    30  portation  authority  commuter  transportation  district  as  defined in
    31  section 1262 of the public authorities law, and as defined by rules  and
    32  regulations  promulgated by the urban development corporation that shall
    33  take into consideration employment and population growth and  impact  on
    34  agribusiness.
    35    (2)  Program rules and regulations. Following consultation with appro-
    36  priate state and local  agencies  and  other  organizations,  the  urban
    37  development  corporation  shall promulgate rules and regulations for the
    38  identification of eligible areas and for the selection  of  projects  to
    39  receive  assistance  from Operation SPUR to include, but not limited to,
    40  the provisions of subdivisions 1 and 3 of this section.
    41    (3) Project selection.  Applications may include, but not  be  limited
    42  to, the following purposes:
    43    (a) The development of industrial facilities, business parks and incu-
    44  bators.  The  purpose  of  projects within this category is generally to
    45  increase  the  availability  of  "shovel  ready"  and  ready  to  occupy
    46  locations, including the redevelopment of brownfield sites, for business
    47  expansion  or  retention  within  New  York state, thereby promoting job
    48  creation and retention. Eligible projects include infrastructure  devel-
    49  opment  (such  as water, sewer, highway and rail access, electric power,
    50  gas and telecommunications), site acquisition, site investigation,  site
    51  clearance  and  building demolition and site preparation related to such
    52  projects as industrial and office parks, high technology and biotechnol-
    53  ogy research,  development  and  related  commercialization  facilities;
    54  business  incubators,  manufacturing, warehouse and distribution facili-
    55  ties, office facilities and parks.  Projects intended primarily for  the
        S. 996                              7                            A. 1926
 
     1  development  of  retail or personal service facilities shall be ineligi-
     2  ble.
     3    (b)  Downtown and rural commercial center redevelopment projects. Some
     4  New York downtowns and rural  commercial  centers  have  declined  as  a
     5  result  of  the movement of retail and commercial activity to peripheral
     6  sites on transportation nodes near suburban  population  concentrations.
     7  As  a  result,  the availability of retail businesses and service estab-
     8  lishments to central city and rural residents has decreased. The purpose
     9  of projects within this category is generally  to  attract  and  support
    10  pedestrian,  commercial  and  residential  density  that will strengthen
    11  business activity in downtown and  rural  commercial  centers.  Eligible
    12  applicants  must  demonstrate  the existence of a credible redevelopment
    13  strategy, the capacity to implement it, and the participation of  public
    14  and  private  leadership  in the redevelopment effort. Projects may fund
    15  construction, rehabilitation or improvement  or  retail,  commercial  or
    16  mixed  use  buildings,  site  acquisition,  investigation, clearance and
    17  redevelopment, and public infrastructure improvements,  such  as  water,
    18  lighting, pavement, sidewalks, parks, parking, etc.
    19    (c)  Tourism destinations. The purpose of projects in this category is
    20  generally to increase business  activity  at  tourism  destinations  and
    21  visitors  from  outside the region, thereby creating and retaining jobs.
    22  Typical tourism destination projects may include regionally  significant
    23  recreational  facilities,  historic  or  cultural facilities, convention
    24  centers,  entertainment  facilities,  and  interpretive   or   discovery
    25  centers.
    26    (d)  Generally,  total  project  cost  must  be a minimum of $500,000,
    27  unless the chairman of the urban development corporation determines that
    28  the circumstances and merit of such project warrants a  waiver  of  such
    29  minimum  threshold, and that such waiver has been approved by the direc-
    30  tor of the budget, with at least two-thirds of the project cost contrib-
    31  uted by private sector, local, federal or state funding other than Oper-
    32  ation SPUR. Projects which offer exceptional opportunities for long term
    33  private sector job creation and retention may be eligible for more  than
    34  one  third  of  eligible  project  costs from Operation SPUR if they can
    35  demonstrate that other sources of funding are unavailable.
    36    Applications may be submitted to the corporation  from  time  to  time
    37  from   municipalities,   nonprofit  organizations,  businesses,  special
    38  districts, institutions of higher education, or other organizations  for
    39  consideration. The corporation may provide grants, loans or combinations
    40  thereof, provided that (i) the projects be evaluated on the basis of the
    41  amount of economic impact on New York state associated with the project,
    42  feasibility  of  business  plans and long term sustainability, as deter-
    43  mined by the urban development corporation, except in the case of  down-
    44  town  and  rural  redevelopment  projects which will be evaluated by the
    45  corporation on the basis of the significance of  their  likely  contrib-
    46  ution to the successful redevelopment of the downtown or rural area; and
    47  (ii)  the  projects comply with the rules and regulations promulgated by
    48  the urban development corporation, as required by subdivision 2 of  this
    49  section;  and (iii) assistance provided through the fund may not be used
    50  for residential development (other than residential  portions  of  mixed
    51  use development).
    52     §  3.  This  act  shall take effect immediately and shall be deemed to
    53  have been in full force and effect on and after April 1, 2005.
 
    54                                   PART C
        S. 996                              8                            A. 1926
 
     1    Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
     2  subdivision 19-a to read as follows:
     3    19-a. "Spur area wage tax credit". (a) A taxpayer that is a "qualified
     4  spur  business"  as described below that creates at least fifty new jobs
     5  in a "spur area", shall be allowed a credit, to be computed  as  herein-
     6  after  provided,  against the tax imposed by this article. The amount of
     7  such credit shall be as prescribed by paragraph (d) of this subdivision.
     8    (b) For the purposes of this subdivision, the  following  terms  shall
     9  have the following meanings:
    10    (1)  "Spur area" means an area which is part of the strategic partner-
    11  ship for upstate resurgence initiative under section  sixteen-n  of  the
    12  New  York state urban development corporation act, as added by a chapter
    13  of the laws of two thousand five.
    14    (2) "Qualified spur employee" means a person,  other  than  a  general
    15  executive officer, first employed in a "spur area" by a taxpayer that is
    16  a  "qualified  spur  business"  on  or after January first, two thousand
    17  five. Such employee must be a person who was neither previously employed
    18  by the taxpayer in this state nor employed by a  related  person  within
    19  the immediately preceding sixty months in this state.
    20    (3)  "Spur  area wages" means wages paid by the taxpayer for full-time
    21  employment to a "qualified spur employee", during the taxable year in  a
    22  "spur  area",  where  such  employment  is in a job created in the "spur
    23  area" during the period of its designation as a "spur area".
    24    (4) "Related person" means a person defined as  such  in  subparagraph
    25  (c)  of paragraph three of subsection (b) of section four hundred sixty-
    26  five of the internal revenue code.
    27    (5) "Qualified spur business" means a  taxpayer  described  in  clause
    28  (A),  (B), (C), (D) or (E) of this subparagraph. A "qualified spur busi-
    29  ness" shall include:
    30    (A) A taxpayer which is a manufacturer. For purposes of this  subpara-
    31  graph,  a  manufacturer  is  a taxpayer which during the taxable year is
    32  principally engaged in the production of goods by  manufacturing,  proc-
    33  essing,  assembling, refining, mining, extracting, farming, agriculture,
    34  horticulture, floriculture, viticulture or commercial fishing. A taxpay-
    35  er shall be "principally engaged"  in  activities  described  above  if,
    36  during  the  taxable year, more than fifty percent of the gross receipts
    37  of the taxpayer are  derived  from  receipts  from  the  sale  of  goods
    38  produced by such activities;
    39    (B)  A taxpayer eligible to compute its business allocation percentage
    40  pursuant to subparagraph seven of paragraph (a) of subdivision three  of
    41  this section;
    42    (C)  A taxpayer eligible to compute its business allocation percentage
    43  pursuant to subparagraph nine of paragraph (a) of subdivision  three  of
    44  this section;
    45    (D)  A taxpayer eligible to compute its business allocation percentage
    46  pursuant to subparagraph eight of paragraph (a) of subdivision three  of
    47  this section;
    48    (E)  A  taxpayer  which  is  eligible  to make an election pursuant to
    49  subdivision ten of section one hundred eighty-three of this chapter.
    50    (6) "Average number of individuals, excluding general executive  offi-
    51  cers,  employed  full-time" shall be computed by ascertaining the number
    52  of such individuals employed by the taxpayer on the thirty-first day  of
    53  March, the thirtieth day of June, the thirtieth day of September and the
    54  thirty-first  day of December during each taxable year or other applica-
    55  ble period, by adding together the number  of  such  individuals  ascer-
    56  tained  on  each  of  such  dates  and dividing the sums obtained by the
        S. 996                              9                            A. 1926
 
     1  number of such dates occurring within such taxable year or other  appli-
     2  cable period.
     3    (7)  "Targeted  employee" means a New York resident who receives "spur
     4  area wages" and who is (A) an eligible individual under  the  provisions
     5  of  the  targeted  jobs  tax  credit  (section fifty-one of the internal
     6  revenue code), (B) eligible for benefits under  the  provisions  of  the
     7  workforce investment act as a dislocated worker or low income individual
     8  (P.L.  105-220,  as amended), (C) a recipient of public assistance bene-
     9  fits or (D) an individual whose income is below the most recently estab-
    10  lished poverty rate promulgated  by  the  United  States  department  of
    11  commerce,  or a member of a family whose family income is below the most
    12  recently established poverty rate promulgated by the appropriate federal
    13  agency. An individual who satisfies the criteria  set  forth  in  clause
    14  (A),  (B)  or (D) of this subparagraph at the time of initial employment
    15  in the job with respect to which the credit is claimed, or who satisfies
    16  the criterion set forth in clause (C) of this subparagraph at such  time
    17  or  at  any  time  within  the  previous two years, shall be a "targeted
    18  employee" so long as such individual continues  to  receive  "spur  area
    19  wages".
    20    (c)(1)  The credit provided for herein shall be allowed only where the
    21  average number of individuals,  excluding  general  executive  officers,
    22  employed  full-time  by  the taxpayer in (A) the state and (B) the "spur
    23  area" during the taxable year exceeds by  at  least  fifty  the  average
    24  number of such individuals employed full-time by the taxpayer in (A) the
    25  state and (B) such "spur area", respectively, during the year immediate-
    26  ly  preceding the first taxable year in which the credit is claimed with
    27  respect to such "spur  area".  Where  the  taxpayer  provided  full-time
    28  employment  within  (A)  the state or (B) such "spur area" during only a
    29  portion of such immediately preceding year, then for  purposes  of  this
    30  paragraph  the  term  "year"  shall  be  deemed to refer instead to such
    31  portion, if any.
    32    (2) The credit shall be allowed only with respect to the first taxable
    33  year during which payments of "spur area wages" are  made  to  at  least
    34  fifty  "qualified  spur  employees" and the conditions set forth in this
    35  paragraph are satisfied, and with respect to each of  the  four  taxable
    36  years  next  following (but only, with respect to each of such years, if
    37  such conditions are satisfied), in accordance with paragraph (d) of this
    38  subdivision.  Subsequent employment by the taxpayer of  "qualified  spur
    39  employees"  at  the same or a different location in the same "spur area"
    40  or at a location in a different "spur area", shall not extend  the  five
    41  taxable year time limitation on the allowance of the credit set forth in
    42  the  preceding  sentence.  However, during such five taxable year period
    43  during which the taxpayer is eligible to claim the "spur area  wage  tax
    44  credit", "qualified spur employees" employed by the taxpayer at the same
    45  or  a different location in the same "spur area" or in a different "spur
    46  area" (where at least fifty "qualified spur  employees"  are  employed),
    47  may  be  a  part  of  the calculation described in paragraph (d) of this
    48  subdivision in determining the amount of the credit.
    49    (d) The amount of the credit shall equal the sum of (1) the product of
    50  three thousand dollars and the average number of individuals  (excluding
    51  general executive officers) employed full-time by the taxpayer, computed
    52  pursuant  to the provisions of subparagraph six of paragraph (b) of this
    53  subdivision, who:
    54    (A) received "spur area wages" for more than half of the taxable year,
    55    (B) received, with respect to more than half of the period of  employ-
    56  ment  by  the taxpayer during the taxable year, an hourly wage which was
        S. 996                             10                            A. 1926
 
     1  at least one hundred thirty-five percent of the minimum  wage  specified
     2  in section six hundred fifty-two of the labor law, and
     3    (C) are "targeted employees"; and
     4    (2)  the  product of fifteen hundred dollars and the average number of
     5  individuals  (excluding  general  executive  officers  and   individuals
     6  described  in  subparagraph one of this paragraph) employed full-time by
     7  the taxpayer, computed pursuant to the provisions of subparagraph six of
     8  paragraph (b) of this subdivision, who received "spur  area  wages"  for
     9  more than half of the taxable year; and
    10    (3) the product of three thousand five hundred dollars and the average
    11  number  of  individuals  who  are  described in subparagraph one of this
    12  paragraph (excluding general executive officers) employed  full-time  by
    13  the taxpayer in an area designated as an empire zone pursuant to article
    14  eighteen-B of the general municipal law; and
    15    (4)  the  product  of  two  thousand dollars and the average number of
    16  individuals who are described in  subparagraph  two  of  this  paragraph
    17  (excluding general executive officers) employed full-time by the taxpay-
    18  er  in  an  area  designated as an empire zone pursuant to article eigh-
    19  teen-B of the general municipal law.
    20    Individuals included in the calculation of the amounts under  subpara-
    21  graphs  three  and  four  of this paragraph shall not be included in the
    22  calculation of the amounts under subparagraphs one and two of this para-
    23  graph.
    24    Provided, further, however, that the credit provided for  herein  with
    25  respect  to the taxable year, and carryovers of such credit to the taxa-
    26  ble year, deducted from the tax otherwise due, may not,  in  the  aggre-
    27  gate,  exceed fifty percent of the tax imposed under section two hundred
    28  nine of this article computed without regard to any credit provided  for
    29  by this article.
    30    (e) The credit and carryovers of such credit allowed under this subdi-
    31  vision  for any taxable year shall not, in the aggregate, reduce the tax
    32  due for such year to less than the higher of the amounts  prescribed  in
    33  paragraphs  (c)  and (d) of subdivision one of this section. However, if
    34  the amount of credit or carryovers of  such  credit,  or  both,  allowed
    35  under  this  subdivision  for  any  taxable year reduces the tax to such
    36  amount, or if any part of the credit or carryovers of  such  credit  may
    37  not  be  deducted  from  the  tax otherwise due by reason of the closing
    38  paragraph of paragraph (d) of this subdivision, any amount of credit  or
    39  carryovers  of  such credit thus not deductible in such taxable year may
    40  be carried over to the following year or years and may be deducted  from
    41  the  tax  for  such  year  or years. In lieu of such carryover, any such
    42  taxpayer which qualifies as a new business under paragraph (j) of subdi-
    43  vision twelve of this section may elect, on its report for  its  taxable
    44  year  with  respect  to  which  such  credit  is allowed, to treat fifty
    45  percent of the amount of such carryover as an overpayment of tax  to  be
    46  credited  or  refunded  in accordance with the provisions of section one
    47  thousand eighty-six of this chapter. Provided, however,  the  provisions
    48  of  subsection  (c) of section one thousand eighty-eight of this chapter
    49  notwithstanding, no interest shall be paid thereon.
    50    (f) If the taxpayer pays "spur area wages" to an employee in  an  area
    51  designated  as  an  empire  zone  pursuant  to article eighteen-B of the
    52  general municipal law, on or after January first, two thousand five, and
    53  (1) the taxpayer or a "related person" has not claimed the  empire  zone
    54  wage  tax  credit  provided  for in subdivision nineteen of this section
    55  with respect to such employees, and (2) the taxpayer meets the eligibil-
    56  ity requirements for both the credit provided for under this subdivision
        S. 996                             11                            A. 1926
 
     1  and subdivision nineteen of this section, such taxpayer may  claim  only
     2  one  such  credit  with respect to such employees. The taxpayer shall be
     3  required, in the first taxable year such taxpayer is allowed to claim  a
     4  credit  provided  for  under this subdivision, to elect, with respect to
     5  such employees, whether to claim the  credit  provided  for  under  this
     6  subdivision  or  the  credit  provided for under subdivision nineteen of
     7  this section. Such election shall be made with the filing of a return or
     8  report required under this chapter, whichever is  applicable,  for  such
     9  taxable year. Such election shall apply to and be binding in each subse-
    10  quent  taxable  year  applicable to the credit provided for under either
    11  this subdivision or subdivision nineteen of this section.
    12     § 2. Section 606 of the tax law is amended by adding a new  subsection
    13  (k-1) to read as follows:
    14    (k-1) "Spur area wage tax credit". (1) A taxpayer that is a "qualified
    15  spur  business"  as described below that creates at least fifty new jobs
    16  in a "spur area", shall be allowed a credit, to be computed  as  herein-
    17  after  provided,  against the tax imposed by this article. The amount of
    18  such credit shall be as prescribed by paragraph four of this subsection.
    19    (2) For the purposes of this subsection,  the  following  terms  shall
    20  have the following meanings:
    21    (A)  "Spur area" means an area which is part of the strategic partner-
    22  ship for upstate resurgence initiative under section  sixteen-n  of  the
    23  New  York state urban development corporation act, as added by a chapter
    24  of the laws of two thousand five.
    25    (B) "Qualified spur employee" means a person,  other  than  a  general
    26  executive officer, first employed in a "spur area" by a taxpayer that is
    27  a  "qualified  spur  business"  on  or after January first, two thousand
    28  five. Such employee must be a person who was neither previously employed
    29  by the taxpayer in this state nor employed by a  related  person  within
    30  the immediately preceding sixty months in this state.
    31    (C)  "Spur  area wages" means wages paid by the taxpayer for full-time
    32  employment to a "qualified spur employee", during the taxable year in  a
    33  "spur area" where such employment is in a job created in the "spur area"
    34  during the period of its designation as a "spur area".
    35    (D)  "Related  person"  means a person defined as such in subparagraph
    36  (c) of paragraph three of subsection (b) of section four hundred  sixty-
    37  five of the internal revenue code.
    38    (E)  "Qualified  spur  business"  means a taxpayer described in clause
    39  (i), (ii), (iii), (iv) or (v) of this subparagraph.  A  "qualified  spur
    40  business" shall include:
    41    (i)  A taxpayer which is a manufacturer. For purposes of this subpara-
    42  graph, a manufacturer is a taxpayer who or which during the taxable year
    43  is principally engaged in the  production  of  goods  by  manufacturing,
    44  processing,  assembling, refining, mining, extracting, farming, agricul-
    45  ture, horticulture, floriculture, viticulture or commercial  fishing.  A
    46  taxpayer  shall  be  "principally engaged" in activities described above
    47  if, during the taxable year,  more  than  fifty  percent  of  the  gross
    48  receipts  of  the  taxpayer  are  derived from receipts from the sale of
    49  goods produced by such activities;
    50    (ii) A taxpayer who, if it  were  a  corporation  subject  to  article
    51  nine-A  of this chapter, would be eligible to compute its business allo-
    52  cation percentage pursuant to subparagraph seven  of  paragraph  (a)  of
    53  subdivision three of section two hundred ten of this chapter;
    54    (iii)  A  taxpayer  who,  if  it were a corporation subject to article
    55  nine-A of this chapter, would be eligible to compute its business  allo-
        S. 996                             12                            A. 1926
 
     1  cation  percentage  pursuant  to  subparagraph  nine of paragraph (a) of
     2  subdivision three of section two hundred ten of this chapter;
     3    (iv)  A  taxpayer  who,  if  it  were a corporation subject to article
     4  nine-A of this chapter, would be eligible to compute its business  allo-
     5  cation  percentage  pursuant  to  subparagraph eight of paragraph (a) of
     6  subdivision three of section two hundred ten of this chapter;
     7    (v) A taxpayer who, if it were a corporation,  would  be  eligible  to
     8  make  an  election  pursuant  to  subdivision ten of section one hundred
     9  eighty-three of this chapter.
    10    (F) "Average  number  of  individuals  employed  full-time"  shall  be
    11  computed  by ascertaining the number of such individuals employed by the
    12  taxpayer on the thirty-first day of March, the thirtieth  day  of  June,
    13  the  thirtieth  day  of  September  and the thirty-first day of December
    14  during each taxable year or other applicable period, by adding  together
    15  the  number  of  such  individuals ascertained on each of such dates and
    16  dividing the sum so obtained by the number of such dates occurring with-
    17  in such taxable year or other applicable period.
    18    (G) "Targeted employee" means a New York resident who  receives  "spur
    19  area  wages"  and who is (i) an eligible individual under the provisions
    20  of the targeted jobs tax  credit  (section  fifty-one  of  the  internal
    21  revenue  code),  (ii)  eligible for benefits under the provisions of the
    22  workforce investment act as a dislocated worker or low income individual
    23  (P.L. 105-220, as amended), (iii) a recipient of public assistance bene-
    24  fits, or (iv) an individual whose income  is  below  the  most  recently
    25  established  poverty rate promulgated by the United States department of
    26  commerce, or a member of a family whose family income is below the  most
    27  recently established poverty rate promulgated by the appropriate federal
    28  agency.  An  individual  who  satisfies the criteria set forth in clause
    29  (i), (ii) or (iv) of this subparagraph at the time of initial employment
    30  in the job with respect to which the credit is claimed, or who satisfies
    31  the criterion set forth in clause (iii) of  this  subparagraph  at  such
    32  time  or at any time within the previous two years, shall be a "targeted
    33  employee" so long as such individual continues  to  receive  "spur  area
    34  wages".
    35    (3)(A)  The credit provided for herein shall be allowed only where the
    36  average number of individuals, employed full-time by the taxpayer in (i)
    37  the state and (ii) the "spur area" during the taxable year exceeds by at
    38  least fifty the average number of such individuals employed full-time by
    39  the taxpayer in (i) the state and (ii) such  "spur  area"  respectively,
    40  during  the  year  immediately preceding the first taxable year in which
    41  the credit is claimed with  respect  to  such  "spur  area".  Where  the
    42  taxpayer provided full-time employment within (i) the state or (ii) such
    43  "spur  area"  during  only a portion of such immediately preceding year,
    44  then for purposes of this paragraph the term "year" shall be  deemed  to
    45  refer instead to such portion, if any.
    46    (B) The credit shall be allowed only with respect to the first taxable
    47  year  during  which  payments  of "spur area wages" are made to at least
    48  fifty "qualified spur employees" and the conditions set  forth  in  this
    49  paragraph  are  satisfied,  and with respect to each of the four taxable
    50  years next following (but only, with respect to each of such  years,  if
    51  such  conditions  are  satisfied),  in accordance with paragraph four of
    52  this subsection.  Subsequent employment by the  taxpayer  of  "qualified
    53  spur  employees"  at  the same or a different location in the same "spur
    54  area" or at a location in a different "spur area", shall not extend  the
    55  five  taxable  year  time  limitation on the allowance of the credit set
    56  forth in the preceding sentence. However, during such five taxable  year
        S. 996                             13                            A. 1926
 
     1  period  during  which  the  taxpayer is eligible to claim the "spur area
     2  wage tax credit", "qualified spur employees" employed by the taxpayer at
     3  the same or a different location in the same "spur area" or in a differ-
     4  ent  "spur  area"  (where  at least fifty "qualified spur employees" are
     5  employed), may be a part of the calculation described in paragraph  four
     6  of this subsection in determining the amount of the credit.
     7    (4) The amount of the credit shall equal the sum of (i) the product of
     8  three  thousand  dollars  and the average number of individuals employed
     9  full-time by the  taxpayer,  computed  pursuant  to  the  provisions  of
    10  subparagraph (F) of paragraph two of this subsection, who:
    11    (I) received "spur area wages" for more than half of the taxable year,
    12    (II) received, with respect to more than half of the period of employ-
    13  ment  by  the taxpayer during the taxable year, an hourly wage which was
    14  at least one hundred thirty-five percent of the minimum  wage  specified
    15  in section six hundred fifty-two of the labor law, and
    16    (III) are "targeted employees"; and
    17    (ii)  the product of fifteen hundred dollars and the average number of
    18  individuals (excluding individuals described in subparagraph (i) of this
    19  paragraph) employed full-time by the taxpayer, computed pursuant to  the
    20  provisions  of subparagraph (F) of paragraph two of this subsection, who
    21  received "spur area wages" for more than half of the taxable year; and
    22    (iii) the product of three thousand five hundred dollars and the aver-
    23  age number of individuals who are described in subparagraph (i) of  this
    24  paragraph employed full-time by the taxpayer in an area designated as an
    25  empire  zone pursuant to article eighteen-B of the general municipal law
    26  and
    27    (iv) the product of two thousand dollars and  the  average  number  of
    28  individuals  who  are  described  in  subparagraph two of this paragraph
    29  employed full-time by the taxpayer in an area designated  as  an  empire
    30  zone pursuant to article eighteen-B of the general municipal law.
    31    Individuals  included in the calculation of the amounts under subpara-
    32  graphs (iii) and (iv) of this paragraph shall not  be  included  in  the
    33  calculation  of  the  amounts  under  subparagraphs (i) and (ii) of this
    34  paragraph.
    35    Provided, further, however, that the credit provided for  herein  with
    36  respect  to the taxable year, and carryovers of such credit to the taxa-
    37  ble year, deducted from the tax otherwise due, may not,  in  the  aggre-
    38  gate,  exceed fifty percent of the tax imposed under section six hundred
    39  one computed without regard to any credit provided for by this article.
    40    (5) If the amount of the credit and carryovers of such credit  allowed
    41  under  this  subsection for any taxable year shall exceed the taxpayer's
    42  tax for such year, the excess, as well as any  part  of  the  credit  or
    43  carryovers  of  such credit, or both, which may not be deducted from the
    44  tax otherwise due by reason of the closing paragraph of  paragraph  four
    45  of  this  subsection, may be carried over to the following year or years
    46  and may be deducted from the taxpayer's tax for such year or  years.  In
    47  lieu  of  carrying  over any such excess, a taxpayer who qualifies as an
    48  owner of a new business for purposes of paragraph ten of subsection  (a)
    49  of this section may, at his option, receive fifty percent of such excess
    50  as  a refund. Any refund paid pursuant to this paragraph shall be deemed
    51  to be a refund of an overpayment of  tax  as  provided  in  section  six
    52  hundred  eighty-six of this article, provided, however, that no interest
    53  shall be paid thereon.
    54    (6) If the taxpayer pays "spur area wages" to an employee in  an  area
    55  designated  as  an  empire  zone  pursuant  to article eighteen-B of the
    56  general municipal law, on or after January first, two thousand five, and
        S. 996                             14                            A. 1926
 
     1  (i) the taxpayer or a "related person" has not claimed the  empire  zone
     2  wage  tax  credit  provided  for  in subsection (k) of this section with
     3  respect to such employees, and (ii) the taxpayer meets  the  eligibility
     4  requirements  for both the credit provided for under this subsection and
     5  subsection (k) of this section, such taxpayer may claim  only  one  such
     6  credit  with  respect to such employees. The taxpayer shall be required,
     7  in the first taxable year such taxpayer is allowed  to  claim  a  credit
     8  provided  for  under  this  subsection,  to  elect, with respect to such
     9  employees,  whether  to  claim  the  credit  provided  for  under   this
    10  subsection  or  the  credit  provided  for  under subsection (k) of this
    11  section. Such election shall be made with the  filing  of  a  return  or
    12  report  required  under  this chapter, whichever is applicable, for such
    13  taxable year. Such election shall apply to and be binding in each subse-
    14  quent taxable year applicable to the credit provided  for  under  either
    15  this subsection or subsection (k) of this section.
    16     §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    17  of the tax law, as amended by section 3 of part P of chapter 60  of  the
    18  laws of 2004, is amended to read as follows:
    19    (B)  shall  be  treated as the owner of a new business with respect to
    20  such share if the corporation qualifies as a new  business  pursuant  to
    21  paragraph  (j)  of subdivision twelve of section two hundred ten of this
    22  chapter.
 
    23                                          The corporation's
    24  With respect to the                     credit base under
    25  following credit                        section two hundred ten
    26  under this section:                     or section fourteen
    27                                          hundred fifty-six of this
    28                                          chapter is:
 
    29  Investment tax credit                   Investment credit base
    30  under subsection (a)                    or qualified
    31                                          rehabilitation
    32                                          expenditures under
    33                                          subdivision twelve of
    34                                          section two hundred ten
 
    35  Empire zone                             Cost or other basis
    36  investment tax credit                   under subdivision
    37  under subsection (j)                    twelve-B
    38                                          of section two hundred
    39                                          ten
 
    40  Empire zone                             Eligible wages under
    41  wage tax credit                         subdivision nineteen of
    42  under subsection (k)                    section two hundred ten
    43                                          or subsection (e) of
    44                                          section fourteen hundred
    45                                          fifty-six
 
    46  Empire zone                             Qualified investments
    47  capital tax credit                      and contributions under
    48  under subsection (1)                    subdivision twenty of
    49                                          section two hundred ten
    50                                          or subsection (d) of
    51                                          section fourteen hundred
        S. 996                             15                            A. 1926
 
     1                                          fifty-six
 
     2  Agricultural property tax               Allowable school
     3  credit under subsection (n)             district property taxes under
     4                                          subdivision twenty-two of
     5                                          section two hundred ten
 
     6  Credit for employment                   Qualified first-year wages or
     7  of persons with dis-                    qualified second-year wages
     8  abilities under                         under subdivision
     9  subsection (o)                          twenty-three of section
    10                                          two hundred ten
    11                                          or subsection (f)
    12                                          of section fourteen
    13                                          hundred fifty-six
 
    14  Employment incentive                    Applicable investment credit
    15  credit under subsec-                    base under subdivision
    16  tion (a-1)                              twelve-D of section two
    17                                          hundred ten
 
    18  Empire zone                             Applicable investment
    19  employment                              credit under sub-
    20  incentive credit under                  division twelve-C
    21  subsection (j-1)                        of section two hundred ten
 
    22  Alternative fuels credit                Cost under subdivision
    23  under subsection (p)                    twenty-four of section two
    24                                          hundred ten
 
    25  Qualified emerging                      Applicable credit base
    26  technology company                      under subdivision twelve-E
    27  employment credit                       of section two hundred ten
    28  under subsection (q)
 
    29  Qualified emerging                      Qualified investments under
    30  technology company                      subdivision twelve-F of
    31  capital tax credit                      section two hundred ten
    32  under subsection (r)
 
    33  Credit for purchase of an               Cost of an automated
    34  automated external defibrillator        external defibrillator under
    35  under subsection (s)                    subdivision twenty-five of
    36                                          section two hundred ten
    37                                          or subsection (j) of section
    38                                          fourteen hundred fifty-six
 
    39  Low-income housing                      Credit amount under
    40  credit under subsection (x)             subdivision thirty
    41                                          of section two hundred ten or
    42                                          subsection (1) of section
    43                                          fourteen hundred fifty-six
 
    44  Credit for transportation               Amount of credit under sub-
    45  improvement contributions               division thirty-two of section
    46  under subsection (z)                    two hundred ten or subsection
        S. 996                             16                            A. 1926
 
     1                                          (n) of section fourteen
     2                                          hundred fifty-six
 
     3  IMB credit for energy                   Amount of credit
     4  taxes under sub-                        under subdivision
     5  section (t-1)                           twenty-six-a of
     6                                          section two hundred ten
 
     7  QEZE credit for real property           Amount of credit under
     8  taxes under subsection (bb)             subdivision twenty-seven of
     9                                          section two hundred ten or
    10                                          subsection (o) of section
    11                                          fourteen hundred fifty-six
 
    12  QEZE tax reduction credit               Amount of benefit period
    13  under subsection (cc)                   factor, employment increase factor
    14                                          and zone allocation
    15                                          factor (without regard
    16                                          to pro ration) under
    17                                          subdivision twenty-eight of
    18                                          section two hundred ten or
    19                                          subsection (p) of section
    20                                          fourteen hundred fifty-six
    21                                          and amount of tax factor
    22                                          as determined under
    23                                          subdivision (f) of section sixteen
 
    24  Green building credit                   Amount of green building credit
    25  under subsection (y)                    under subdivision thirty-one
    26                                          of section two hundred ten
    27                                          or subsection (m) of section
    28                                          fourteen hundred fifty-six
 
    29  Credit for long-term                    Qualified costs under
    30  care insurance premiums                 subdivision twenty-five-a of
    31  under subsection (aa)                   section two hundred ten
    32                                          or subsection (k) of section
    33                                          fourteen hundred fifty-six
 
    34  Brownfield redevelopment                Amount of credit
    35  credit under subsection                 under subdivision
    36  (dd)                                    thirty-three of section
    37                                          two hundred ten
    38                                          or subsection (q) of
    39                                          section fourteen hundred
    40                                          fifty-six
 
    41  Remediated brownfield                   Amount of credit under
    42  credit for real property                subdivision thirty-four
    43  taxes for qualified                     of section two hundred
    44  sites under subsection                  ten or subsection (r) of
    45  (ee)                                    section fourteen hundred
    46                                          fifty-six
 
    47  Environmental                           Amount of credit under
    48  remediation                             subdivision thirty-five of
        S. 996                             17                            A. 1926
 
     1  insurance credit under                  section two hundred
     2  subsection (ff)                         ten or subsection
     3                                          (s) of section
     4                                          fourteen hundred
     5                                          fifty-six
 
     6  Empire state film production            Amount of credit for qualified
     7  credit under subsection (gg)            production costs in production
     8                                          of a qualified film under
     9                                          subdivision thirty-six of
    10                                          section two hundred ten
 
    11  Spur area wage tax credit under         Amount of credit under
    12  subsection (k-1)                        subdivision nineteen-a of section
    13                                          two hundred ten
 
    14     § 4. This act shall take effect immediately and shall apply to taxable
    15  years commencing on or after January 1, 2005; provided, however that the
    16  IMB  credit  for  energy taxes under subsection (t-1) and the state film
    17  production credit under subsection (gg) of section 606 of  the  tax  law
    18  contained  in section three of this act shall expire on the same date as
    19  provided in subdivision (a) of section 49 of part Y of chapter 63 of the
    20  laws of 2000, as amended and section 9 of part P of chapter  60  of  the
    21  laws of 2004, as amended, respectively.
 
    22                                   PART D
 
    23    Section  1.  Paragraph  (a) of subdivision 3 of section 210 of the tax
    24  law is amended by adding a new subparagraph 10 to read as follows:
    25    (10) (A) Notwithstanding the foregoing provisions of this paragraph, a
    26  taxpayer which is a manufacturer that conducts business in an area which
    27  is part of the strategic partnership for upstate  resurgence  initiative
    28  under  section  sixteen-n of the New York state urban development corpo-
    29  ration act, as added by a chapter of the laws of 2005 and, on  or  after
    30  January  first,  two thousand five, makes a qualified investment in such
    31  area of at least twenty-five million dollars, may elect to  compute  its
    32  business  allocation percentage in the taxable year in which its invest-
    33  ment is placed in service at the percentage provided for in subparagraph
    34  two of this paragraph.  Such taxpayer may continue to make such election
    35  in the next nine succeeding taxable years, provided the taxpayer contin-
    36  ues to own such qualified investment in each  of  those  taxable  years.
    37  Moreover,  a  taxpayer  that  meets  the qualifications set forth in the
    38  preceding sentences in this clause may elect  to  compute  its  business
    39  allocation percentage at the percentage provided for in subparagraph two
    40  of  this paragraph in the tenth succeeding taxable year if such taxpayer
    41  has created at least one hundred new jobs in one or more areas which are
    42  part of such strategic partnership  for  upstate  resurgence  initiative
    43  during  the  period  beginning  on  January first, two thousand five and
    44  ending on the last day of such ninth succeeding taxable year. Such  jobs
    45  must have been new jobs to the state and shall not have been transferred
    46  to  such area or areas from another area in the state. Such taxpayer may
    47  continue to make such election in each taxable year thereafter, provided
    48  the taxpayer continues to maintain its level of employment in such  area
    49  or areas and in the state in each of those taxable years.
    50    (B)  The  term  "manufacturer"  shall mean a taxpayer which during the
    51  taxable year is principally engaged in the production of goods by  manu-
        S. 996                             18                            A. 1926
 
     1  facturing,  processing,  assembling, refining, mining, extracting, farm-
     2  ing, agriculture, horticulture, floriculture, viticulture or  commercial
     3  fishing.  Moreover,  for  purposes  of  computing  a business allocation
     4  percentage  in a combined report, the combined group shall be considered
     5  a manufacturer for purposes of this subparagraph only  if  the  combined
     6  group  during  the taxable year is principally engaged in the activities
     7  set forth above, or any combination thereof. A taxpayer  or  a  combined
     8  group  shall  be "principally engaged" in activities described above if,
     9  during the taxable year, more than fifty percent of the  gross  receipts
    10  of  the  taxpayer  or combined group, respectively, are derived from the
    11  sale of goods produced by  such  activities.  In  computing  a  combined
    12  group's gross receipts, inter-company sales shall be eliminated.
    13    (C)  The  term  "qualified  investment"  shall  mean  the acquisition,
    14  purchase or construction of real or tangible  personal  property,  whose
    15  cost  or  other  basis for federal income tax purposes equals or exceeds
    16  twenty-five million dollars, and which is located in and used solely  in
    17  an  area  which  is part of the strategic partnership for upstate resur-
    18  gence initiative.
    19    (D) A manufacturer shall be treated as creating at least  one  hundred
    20  new  jobs  and  as  maintaining  its  level of employment if the average
    21  number of individuals, excluding general  executive  officers,  employed
    22  full-time  by  the taxpayer or combined group in one or more areas which
    23  are part of such strategic partnership for upstate resurgence initiative
    24  and in the state for the taxable year equals or exceeds by  one  hundred
    25  the average number of individuals, excluding general executive officers,
    26  employed  full  time  by  the  taxpayer or combined group in one or more
    27  areas which are part of such strategic partnership  for  upstate  resur-
    28  gence  initiative  and  in  the  state in a taxable year beginning on or
    29  after January first, two thousand four and  before  January  first,  two
    30  thousand  five.  Such number shall be computed by determining the number
    31  of such individuals employed by the taxpayer or combined  group  on  the
    32  thirty-first  day of March, the thirtieth day of June, the thirtieth day
    33  of September and the thirty-first day of December during the  applicable
    34  taxable  year, adding together the number of such individuals determined
    35  to be so employed on each of such dates and dividing the sum so obtained
    36  by the number of such dates occurring  within  such  applicable  taxable
    37  year.  For all taxable years other than the taxable year beginning on or
    38  after January first, two thousand four and  before  January  first,  two
    39  thousand five, such number shall not include individuals employed within
    40  the  immediately  preceding  sixty  months  by  a  related person to the
    41  taxpayer or to any corporation included in the combined group. The  term
    42  "related  person"  shall have the same definition as in subparagraph (C)
    43  of paragraph three of subsection (b) of section four hundred  sixty-five
    44  of the internal revenue code.
    45     §  2.  Paragraph (a) of subdivision 3-a of section 210 of the tax law,
    46  as amended by chapter 170 of the laws of 1994, is  amended  to  read  as
    47  follows:
    48    (a)  Multiply  its alternative business income by an alternative busi-
    49  ness allocation percentage determined pursuant to the method  prescribed
    50  in  subdivision  three  of  this  section  except that for taxable years
    51  beginning before nineteen hundred ninety-four the additional  percentage
    52  (referred  to in subparagraph four of paragraph (a) of such subdivision)
    53  equal to the percentage determined under subparagraph two  of  paragraph
    54  (a) of such subdivision shall be disregarded and not added together with
    55  the  other percentages, and except that the percentages employed in such
    56  subdivision three shall be modified to reflect the factors  utilized  in
        S. 996                             19                            A. 1926
 
     1  computing  minimum  taxable  income,  provided, however, that a taxpayer
     2  principally engaged in the conduct of aviation (other than  air  freight
     3  forwarders  acting  as  principal  and like indirect air carriers) shall
     4  determine its alternative business allocation percentage pursuant to the
     5  method  prescribed in subparagraph seven of paragraph (a) of subdivision
     6  three of this section, provided further, however, that a taxpayer  which
     7  is a manufacturer, as defined in clause (B) of subparagraph ten of para-
     8  graph  (a)  of subdivision three of this section, that conducts business
     9  in an area which is part of the strategic partnership for upstate resur-
    10  gence initiative under section sixteen-n of the  New  York  state  urban
    11  development  corporation  act, as added by a chapter of the laws of 2005
    12  and, on or after January first, two thousand  five,  makes  a  qualified
    13  investment  in  such  area  of at least twenty-five million dollars, may
    14  elect to compute the alternative business allocation percentage  in  the
    15  taxable  year  in  which  its  investment  is  placed  in service at the
    16  percentage provided for in subparagraph two of paragraph (a) of subdivi-
    17  sion three of this section. Such taxpayer  may  continue  to  make  such
    18  election in the next nine succeeding taxable years, provided the taxpay-
    19  er  continues  to own such qualified investment in each of those taxable
    20  years. Moreover, a taxpayer that meets the qualifications set  forth  in
    21  the  preceding sentences in this clause, may elect to compute its alter-
    22  native business allocation percentage at the percentage provided for  in
    23  subparagraph  two  of paragraph (a) of subdivision three of this section
    24  in the tenth succeeding taxable year if such  taxpayer  has  created  at
    25  least  one  hundred new jobs in one or more areas which are part of such
    26  strategic partnership for upstate resurgence initiative during the peri-
    27  od beginning on or after January first, two thousand five and ending  on
    28  the  last day of such ninth succeeding taxable year. Such jobs must have
    29  been new jobs to the state and shall not have been transferred  to  such
    30  area  or  areas by another area in the state. Such taxpayer may continue
    31  to make such election in each  taxable  year  thereafter,  provided  the
    32  taxpayer  continues  to maintain its level of employment in such area or
    33  areas and in the state in each of those  taxable  years.  Such  taxpayer
    34  shall  determine  whether  or  not it has created jobs or maintained its
    35  level of employment pursuant to the provisions of clause (D) of subpara-
    36  graph ten of paragraph (a) of subdivision three of this section.
    37     § 3. Section 209-B of the tax law is amended by adding a new  subdivi-
    38  sion 2-c to read as follows:
    39    2-c.  (a)  A taxpayer which is a manufacturer as defined in clause (B)
    40  of subparagraph ten of paragraph (a) of subdivision three of section two
    41  hundred ten of this article, notwithstanding the provisions of  subdivi-
    42  sion  two  of this section, may elect to determine the percentage of its
    43  business activity carried on within the metropolitan commuter  transpor-
    44  tation district in the manner set forth in this subdivision.
    45    (i)  For  taxable years beginning on or after January first, two thou-
    46  sand five, the percentage  of  a  manufacturer's  business  activity  as
    47  defined  in  clause (B) of subparagraph ten of paragraph (a) of subdivi-
    48  sion three of section two hundred ten of this article within the  metro-
    49  politan  commuter  transportation district, that conducts business in an
    50  area which is part of the strategic partnership for  upstate  resurgence
    51  initiative  under section sixteen-n of the New York state urban develop-
    52  ment corporation act, as added by a chapter of the laws of 2005 and,  on
    53  or  after January first, two thousand five, makes a qualified investment
    54  in such area of at  least  twenty-five  million  dollars,  shall  be  as
    55  provided  for  in subparagraph two of paragraph (a) of subdivision three
    56  of this section in the taxable year in which its investment is placed in
        S. 996                             20                            A. 1926
 
     1  service. Such taxpayer may elect to continue to use such  percentage  in
     2  the  next nine succeeding taxable years, provided the taxpayer continues
     3  to own such qualified investment in each of those taxable  years.  More-
     4  over,  a taxpayer that meets the qualifications set forth in the preced-
     5  ing sentences in this subparagraph, may  elect  to  use  the  percentage
     6  provided  for  in  subparagraph  two of paragraph (a) of this section if
     7  such taxpayer has created at least one hundred new jobs in one  or  more
     8  areas which are part of the strategic partnership for upstate resurgence
     9  initiative  during  the  period beginning on or after January first, two
    10  thousand five and ending on the last day of such ninth succeeding  taxa-
    11  ble  year.  Such jobs must have been new jobs to the state and shall not
    12  have been transferred to such area or areas from  another  area  in  the
    13  state.  Such  taxpayer  may  continue to elect to use such percentage in
    14  each taxable year thereafter, provided the taxpayer continues  to  main-
    15  tain  its  level of employment in such area or areas and in the state in
    16  each of those taxable years. Such taxpayer shall  determine  whether  or
    17  not  it  has created jobs or maintained its level of employment pursuant
    18  to the provisions of clause (D) of subparagraph ten of paragraph (a)  of
    19  subdivision three of section two hundred ten of this article.
    20     §  4.  Subparagraph  (ii) of paragraph (c) of subdivision 1 of section
    21  210 of the tax law, as amended by section 1 of part L of chapter 407  of
    22  the laws of 1999, is amended to read as follows:
    23    (ii)  For taxable years beginning in nineteen hundred ninety, nineteen
    24  hundred ninety-one, nineteen hundred ninety-two, nineteen hundred  nine-
    25  ty-three  and nineteen hundred ninety-four the amount prescribed by this
    26  paragraph shall be computed at the rate of five percent of  the  taxpay-
    27  er's  minimum  taxable  income  base.  For taxable years beginning after
    28  nineteen hundred ninety-four and before  July  first,  nineteen  hundred
    29  ninety-eight,  the amount prescribed by this paragraph shall be computed
    30  at the rate of three and one-half  percent  of  the  taxpayer's  minimum
    31  taxable  income  base. For taxable years beginning after June thirtieth,
    32  nineteen hundred ninety-eight and before July  first,  nineteen  hundred
    33  ninety-nine,  the  amount prescribed by this paragraph shall be computed
    34  at the rate of three and one-quarter percent of the  taxpayer's  minimum
    35  taxable  income  base. For taxable years beginning after June thirtieth,
    36  nineteen hundred ninety-nine and before July first,  two  thousand,  the
    37  amount  prescribed  by  this  paragraph shall be computed at the rate of
    38  three percent of the taxpayer's minimum taxable income base.  For  taxa-
    39  ble  years  beginning  after  June  thirtieth,  two thousand, the amount
    40  prescribed by this paragraph shall be computed at the rate  of  two  and
    41  one-half  percent of the taxpayer's minimum taxable income base.  Howev-
    42  er, for taxable years beginning on or after January first, two  thousand
    43  five,  the  amount prescribed by this paragraph shall be computed at the
    44  rate of zero percent of  the  taxpayer's  minimum  taxable  income  base
    45  provided  the  taxpayer  is  eligible to compute its business allocation
    46  percentage pursuant to subparagraph ten of paragraph (a) of  subdivision
    47  three  of  this  section.  The  "taxpayer's minimum taxable income base"
    48  shall mean the portion of the taxpayer's minimum  taxable  income  allo-
    49  cated within the state as hereinafter provided, subject to any modifica-
    50  tions  required  by  paragraphs (d) and (e) of subdivision three of this
    51  section.
    52     § 5. This act shall take effect immediately and shall apply to taxable
    53  years beginning on or after January 1, 2005.
 
    54                                   PART E
        S. 996                             21                            A. 1926
 
     1    Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
     2  subdivision 37 to read as follows:
     3    37. SPUR center of excellence affiliation credit.
     4    (a)  Credit.  A  taxpayer  shall  be  allowed a credit, as hereinafter
     5  provided.
     6    (b) Qualifications. In order to qualify for the credit  allowed  under
     7  this subdivision, a taxpayer shall meet the following qualifications.
     8    (1)  The  taxpayer shall qualify as a new business under paragraph (j)
     9  of subdivision twelve of this section.
    10    (2) The taxpayer shall conduct at least some of its operations in  one
    11  or  more  areas  which are part of the strategic partnership for upstate
    12  resurgence initiative under section sixteen-n  of  the  New  York  state
    13  urban  development  corporation act as added by a chapter of the laws of
    14  2005.
    15    (3) The taxpayer during the taxable year shall be  affiliated  with  a
    16  university  which has been designated a center of excellence pursuant to
    17  section three of part T of chapter eighty-four of the laws of two  thou-
    18  sand two.
    19    (4)  Since  January  first, two thousand five, the taxpayer shall have
    20  either (i) created and maintained at least twenty-five new jobs  in  one
    21  or  more  areas  which are part of the strategic partnership for upstate
    22  resurgence initiative, which jobs cannot have been transferred into such
    23  area or areas from some other location in the  state,  or  (ii)  made  a
    24  significant  investment  in real or tangible personal property in one or
    25  more areas which are part  of  the  strategic  partnership  for  upstate
    26  resurgence  initiative.  Such  jobs  and  investment  must  be  directly
    27  connected to the taxpayer's affiliation with a university which has been
    28  designated a center of excellence.
    29    (5) The higher of the amounts prescribed in paragraph (b)  or  (d)  of
    30  subdivision  one  of  this section for the taxpayer for the taxable year
    31  exceeds the amounts prescribed in paragraphs (a) and (c) of such  subdi-
    32  vision.
    33    (c)  Amount  of the credit. The amount of the credit shall be equal to
    34  the product of (1) the taxpayer's net operating loss, (2) the taxpayer's
    35  business allocation percentage for the taxable year,  and  (3)  the  tax
    36  rate  under this article which is in effect for the taxable year. Howev-
    37  er, the amount of the credit allowed for  any  taxable  year  shall  not
    38  exceed one million dollars and the total aggregate amount allowed to the
    39  taxpayer shall not exceed five million dollars.
    40    (d)  Certification  by the urban development corporation.  In order to
    41  be allowed a credit under  this  subdivision,  the  taxpayer  must  have
    42  received  certification  for  the  taxable year from the chairman of the
    43  urban development corporation that the taxpayer has met  the  qualifica-
    44  tions set forth in subparagraphs three and four of paragraph (b) of this
    45  subdivision.  The  chairman  of  the urban development corporation shall
    46  promulgate regulations describing the application procedures to be  used
    47  by taxpayers seeking the certification required under this paragraph and
    48  setting  forth  the standards to be used by such department to establish
    49  that a taxpayer has met the qualifications set forth  in  such  subpara-
    50  graphs  three and four. The certification from the chairman of the urban
    51  development corporation must be attached to  the  taxpayer's  return  on
    52  which  the  credit allowed under this subdivision is claimed.  The urban
    53  development corporation periodically shall send to the department a list
    54  of all taxpayers that have received certification.
    55    (e) Application of the credit. The credit allowed under this  subdivi-
    56  sion  for any taxable year shall not reduce the tax due for such year to
        S. 996                             22                            A. 1926
 
     1  less than the amount prescribed in paragraph (d) of subdivision  one  of
     2  this section. However, if the amount of credit allowed under this subdi-
     3  vision  for  any taxable year reduces the tax to such amount, any amount
     4  of  credit thus not deductible shall be treated as an overpayment of tax
     5  to be credited or refunded in accordance with the provisions of  section
     6  ten   hundred   eighty-six  of  this  chapter.  Provided,  however,  the
     7  provisions of subsection (c) of section ten hundred eighty-eight of this
     8  chapter notwithstanding, no interest shall be paid thereon.
     9    (f) For purposes of this subdivision, the term  "net  operating  loss"
    10  shall  mean  the loss which results when entire net income is calculated
    11  for the taxable year pursuant to the provisions of subdivision  nine  of
    12  section  two  hundred  eight of this article, computed without regard to
    13  the deduction allowed or allowable under Section  172  of  the  internal
    14  revenue  code  and paragraph (f) of subdivision nine of such section two
    15  hundred eight.
    16    (g) Allowance of credit on a combined return. In the case of a taxpay-
    17  er which reports its tax with one or more  corporations  on  a  combined
    18  report,  in  order  to  be  allowed a credit under this subdivision, the
    19  qualifications set forth in such subparagraphs one through four of para-
    20  graph (b) of this subdivision shall be satisfied by one or more  of  the
    21  taxpayers included in the combined report. In determining whether or not
    22  the  qualification  set  forth  in  such subparagraph four that at least
    23  twenty-five new jobs in one or more areas which are part of the  strate-
    24  gic  partnership for upstate resurgence initiative are created and main-
    25  tained, such jobs cannot have been transferred into such area  or  areas
    26  from some other location in the state and cannot include any jobs trans-
    27  ferred  from  any other corporations included in the combined group. The
    28  qualification set forth in subparagraph five of paragraph  (b)  of  this
    29  subdivision  shall be satisfied by the combined group. The amount of the
    30  credit allowed under this subdivision shall be determined by  using  the
    31  net  operating  loss  of  the combined group.   The amount of the credit
    32  allowed for any taxable year on a combined report shall not  exceed  one
    33  million  dollars  and the total aggregate amount allowed on the combined
    34  report shall not exceed five million dollars.
    35     § 2. This act shall take effect immediately and shall apply to taxable
    36  years beginning on or after January 1, 2005.
 
    37                                   PART F
 
    38    Section 1. Section 956 of the general municipal  law,  as  amended  by
    39  chapter 708 of the laws of 1993, is amended to read as follows:
    40     § 956. Statement of legislative findings and declaration.  It is here-
    41  by found and declared that given the nature of the evolving global econ-
    42  omy  and  the  changing industrial and economic environment, the state's
    43  ability to attract and retain businesses depends largely upon decreasing
    44  the tax and economic burden on businesses that locate and operate  busi-
    45  ness  facilities  or  operations in the state. Given these circumstances
    46  and the critical importance of the state's economic  future,  state  and
    47  local  government  must  provide extraordinary measures in order to help
    48  stimulate private business development and job creation in the state. It
    49  is the public policy of the state to offer special assistance that  will
    50  promote the development of new businesses and the expansion or retention
    51  of  existing  businesses  throughout  the state. It is further found and
    52  declared that private business development and job creation requires the
    53  mutual cooperation of all levels of state and local government  and  the
    54  business community.
        S. 996                             23                            A. 1926
 
     1    It  is  hereby  further found and declared that there exist within the
     2  state certain areas characterized by persistent and  pervasive  poverty,
     3  high  unemployment,  limited  new  job  creation, a dependence on public
     4  assistance income, dilapidated and abandoned industrial  and  commercial
     5  facilities,  and  shrinking  tax  bases. These severe conditions require
     6  state and local government  to  target  for  these  areas  extraordinary
     7  economic  and  human resource development programs in order to stimulate
     8  private investment, private business development and job creation. It is
     9  the public policy of the state to offer special incentives  and  assist-
    10  ance  that will promote the development of new businesses, the expansion
    11  of existing businesses and the development  of  human  resources  within
    12  these  economically  impoverished areas and to do so without encouraging
    13  the relocation of business investment from other areas of the state.  It
    14  is  further found and declared that it is the public policy of the state
    15  to achieve these goals through the mutual cooperation of all  levels  of
    16  state and local government and the business community.
    17     § 2. Subdivisions (a), (e), (f), (k), (m), (p), (q) and (r) of section
    18  957  of  the  general municipal law, subdivision (a) as added by chapter
    19  686 of the laws of 1986, subdivision (e) as amended and subdivision  (m)
    20  as  added by chapter 708 of the laws of 1993, subdivision (f) as amended
    21  and subdivision (k) as added by chapter 624 of the laws of 1990,  subdi-
    22  vision (p) as added by chapter 170 of the laws of 1994, subdivisions (q)
    23  and  (r)  as  added  by section 1 of part Q of chapter 84 of the laws of
    24  2002, subdivisions (a), (e), (f), (k) and (m) as further amended  pursu-
    25  ant  to  section  15  of  part GG of chapter 63 of the laws of 2000, are
    26  amended and five new subdivisions (s), (t), (u), (v) and (w)  are  added
    27  to read as follows:
    28    (a)  "Applicant"  shall mean the county, city, town or village submit-
    29  ting an application pursuant to this article and in the  manner  author-
    30  ized by local law for designation of an area as an empire zone.
    31    (e)  "Local  empire  zone  administrative board" shall mean the entity
    32  designated by the applicant that is responsible for monitoring, evaluat-
    33  ing and coordinating all empire zone benefits on behalf  of  the  appli-
    34  cant.  Such  entity  shall consist of at least six members, none of whom
    35  shall be the local empire zone [certification officer] coordinator,  and
    36  shall  be representative of local businesses, organized labor, community
    37  organizations, financial institutions,  local  educational  institutions
    38  and residents of the empire zone.
    39    (f) "Local empire zone [certification officer] coordinator" shall mean
    40  the  official  designated  by  the  applicant  who is the commissioner's
    41  contact person for the local empire zone that is responsible for coordi-
    42  nating all empire zone benefits and administrative functions  on  behalf
    43  of  the  local empire zone administrative board or administrative entity
    44  and who is responsible for jointly certifying and decertifying  together
    45  with  the  commissioner  and  the  commissioner  of labor those business
    46  enterprises eligible to receive benefits pursuant to this article.
    47    (k) "Targeted employee" shall mean a New York  resident  who  receives
    48  empire  zone  wages  pursuant  to  subdivision  nineteen  of section two
    49  hundred ten of the tax law and who is (i) an eligible  individual  under
    50  the  provision of the targeted jobs tax credit (section fifty-one of the
    51  internal revenue code), (ii) eligible for benefits under the  provisions
    52  of  the  [job  training partnership act (P.L. 97-300, as amended)] work-
    53  force investment act (P.L. 105-220) as a dislocated worker or low income
    54  individual, (iii) a recipient of public assistance benefits, or (iv)  an
    55  individual  whose  income is below the most recently established poverty
    56  rate promulgated by the United  States  department  of  commerce,  or  a
        S. 996                             24                            A. 1926
 
     1  member of a family whose family income is below the most recently estab-
     2  lished poverty rate promulgated by the appropriate federal agency.
     3    An individual who satisfies the criteria set forth in clause (i), (ii)
     4  or (iv) of this subdivision at the time of initial employment in the job
     5  with respect to which the credit is claimed, or who satisfies the crite-
     6  rion  set  forth  in clause (iii) of this subdivision at such time or at
     7  any time within the previous two years, shall be a targeted employee  so
     8  long as such individual continues to receive empire zone wages.
     9    (m)  "Zone  administrative  entity" shall mean a community-based local
    10  development corporation or entity contracting with the local empire zone
    11  board pursuant to paragraph [(viii)] (xii) of subdivision (b) of section
    12  nine hundred sixty-three of this article or the  municipality  in  which
    13  the  zone  is located in those instances where the municipality actively
    14  participates in the local administration of the zone program.
    15    (p) ["Zone equivalent area" shall mean  an  area  designated  as  such
    16  pursuant  to subdivision (bb) of section nine hundred fifty-nine of this
    17  article.
    18    (q) "New empire zone" shall mean an empire zone that has  been  desig-
    19  nated  pursuant  to  paragraphs  (vii)  and (viii) of subdivision (b) of
    20  section nine hundred sixty of this article.
    21    (r) "Existing empire zone" shall mean an empire  zone  that  has  been
    22  designated  pursuant to paragraphs (i), (ii), (iii), (iv), (v), and (vi)
    23  of subdivision (b) of section  nine  hundred  sixty  of  this  article.]
    24  "Superboundary"  shall  mean  a  four  square  mile area within which an
    25  empire zone designated under subdivision (a)  or  (d)  of  section  nine
    26  hundred  fifty-eight of this article must be located. Such superboundary
    27  shall be characterized  by  pervasive  poverty,  high  unemployment  and
    28  general  economic  distress, must correspond to traditional neighborhood
    29  or community boundaries, and where  appropriate,  be  bounded  by  major
    30  natural  or man-made physical boundaries, such as bodies of water, rail-
    31  road lines, or limited access highways and may be one contiguous area or
    32  up to three non-contiguous areas.
    33    (q) "Neighborhood revitalization empire zone"  shall  mean  an  empire
    34  zone  designated  pursuant  to  subdivision  (a)  or (d) of section nine
    35  hundred fifty-eight of this article.
    36    (r) "Countywide development empire zone" shall  mean  an  empire  zone
    37  designated  pursuant  to  subdivision (b) or (c) of section nine hundred
    38  fifty-eight of this article.
    39    (s) "Flex acreage empire zone" shall mean an empire zone  area  desig-
    40  nated pursuant to subdivision (f) of section nine hundred fifty-eight of
    41  this article which will attract large projects involving job creation of
    42  at  least  three  hundred new jobs in the state, provided, however, such
    43  area may not be designated within the metropolitan commuter  transporta-
    44  tion  district;  or  projects  involving  job  creation  of at least one
    45  hundred new jobs provided such area is located  within  a  census  tract
    46  meeting  the  criteria of subdivision (a) of section nine hundred fifty-
    47  eight of this article.
    48    (t) "Flex acreage agribusiness opportunity empire zone" shall mean  an
    49  empire  zone area designated pursuant to subdivision (g) of section nine
    50  hundred fifty-eight  of  this  article  to  accommodate  agribusinesses,
    51  including  but  not limited to dairy, food and fruit processors and bio-
    52  refineries.
    53    (u) "Targeted area" shall mean a four square mile area or a two square
    54  mile area for local empire zones designated as a one square mile  empire
    55  zone  within  which  an  empire  zone designated under paragraph (ii) of
    56  subdivision (b) or paragraph (viii) of subdivision (c) of  section  nine
        S. 996                             25                            A. 1926
 
     1  hundred  fifty-eight of this article must be located. Such area shall be
     2  characterized by poverty, unemployment  and  general  economic  distress
     3  relative  to such county, must correspond to traditional neighborhood or
     4  community boundaries, and where appropriate, be bounded by major natural
     5  or man-made physical boundaries, such as bodies of water, railroad lines
     6  or  limited  access highways and may be one contiguous area or up to six
     7  non-contiguous areas.
     8    (v) "Applicant municipality" means the county, city, town  or  village
     9  that  applied  for and received empire zone designation as authorized by
    10  section nine hundred sixty of this article.
    11    (w) "Concurring municipality" means a city, town or  village  that  is
    12  required to agree with the applicant municipality's proposed addition or
    13  removal  of empire zone acreage from within such city, town or village's
    14  municipal borders.
    15     § 3. Section 958 of the general municipal law, as added by chapter 686
    16  of the laws of 1986, paragraph (i) of subdivision  (a)  and  subdivision
    17  (b)  as  amended by chapter 624 of the laws of 1990, paragraphs (ii) and
    18  (vi) of subdivision (a) and subdivision (c) as amended by chapter 708 of
    19  the laws of 1993, paragraph (iii)  of  subdivision  (a)  as  amended  by
    20  section  2  of part Q of chapter 84 of the laws of 2002, subdivision (d)
    21  as amended by chapter 41 of the laws of 2000, subdivision (e) as  relet-
    22  tered  by  chapter  492  of the laws of 1999 and such section as further
    23  amended pursuant to section 15 of part GG of chapter 63 of the  laws  of
    24  2000, is amended to read as follows:
    25     §  958.  Criteria  for empire zone designation. (a) To be eligible for
    26  designation as [an] a neighborhood revitalization empire zone, [an]  the
    27  proposed  empire  zone area must be [characterized by pervasive poverty,
    28  high unemployment and general  economic  distress,  must  correspond  to
    29  traditional neighborhood or community boundaries, and where appropriate,
    30  be  bounded  by  major  natural or man-made physical boundaries, such as
    31  bodies of water,  railroad  lines,  or  limited  access  highways;  and]
    32  located within a superboundary and such superboundary must be located in
    33  an area that must meet the following requirements:
    34    (i)  the area shall include a United States census tract or tracts [or
    35  block numbering area or areas, or portions  thereof,  each  full  census
    36  tract  or  portion of a block numbering area of] which, according to the
    37  most recent census data available, has:
    38    (A) a poverty rate of at least twenty percent for the  year  to  which
    39  the data relate;
    40    (B)  an  unemployment  rate of at least 1.25 times the statewide unem-
    41  ployment rate for the year to which the data relate; and
    42    (C) a population of at least two thousand[.];
    43    (ii) [lands nearby or contiguous to census tracts or  block  numbering
    44  areas  described in paragraph (i) of this subdivision may be eligible to
    45  be included within an empire zone if, upon the request of the applicant,
    46  the commissioner  finds,  in  accordance  with  regulations  promulgated
    47  pursuant  to  this  article, that such additional lands have significant
    48  potential for business development and job creation, which will  enhance
    49  economic   revitalization  of  the  zone  and  benefit  zone  residents;
    50  provided, however, that lands nearby shall not be  included  in  a  zone
    51  until the commissioner, in consultation with the director of the budget,
    52  promulgates  regulations governing the inclusion of such lands] portions
    53  of superboundaries may also be located in census  tracts  contiguous  to
    54  census tracts described in paragraph (i) of this subdivision;
    55    (iii) [the area proposed as an empire zone shall not exceed:
        S. 996                             26                            A. 1926
 
     1    two  square  miles  for any zone, such area shall be defined by one or
     2  more borders, which borders shall be determined  by  the  applicant  and
     3  need  not  be  entirely coterminous with the borders of census tracts or
     4  block numbering areas provided, however, that such zone shall be located
     5  entirely  within  traditional  neighborhood or community boundaries, and
     6  where appropriate, be bounded by  major  natural  or  man-made  physical
     7  boundaries,  such  as bodies of water, railroad lines, or limited access
     8  highways, provided, however, that not less than seventy-five percent  of
     9  the area proposed as an empire zone created pursuant to paragraphs (vii)
    10  and  (viii)  of  subdivision  (b)  of section nine hundred sixty of this
    11  article shall be located in not more than  three  non-contiguous  areas,
    12  and the zones created pursuant to paragraph (viii) of subdivision (b) of
    13  section  nine  hundred  sixty  of  this article should be limited to one
    14  square mile;
    15    (iv)] if [such] the superboundary area is governed by zoning  laws  or
    16  other  laws  or regulations governing land use, such laws or regulations
    17  must allow at least twenty-five percent of such  area  to  be  used  for
    18  commercial or industrial activity;
    19    [(v)]  (iv)  at  least  twenty-five  percent  of the total land within
    20  [such] the superboundary area must be  vacant,  abandoned  or  otherwise
    21  available  for  industrial  or  commercial development or redevelopment;
    22  [and]
    23    (v) the area proposed as an empire zone under this  subdivision  shall
    24  not exceed two square miles that shall be defined by a legal description
    25  that may describe all or a portion of a tax parcel or tax parcels; and
    26    (vi)  such  other  requirements  as  may be established in regulations
    27  promulgated by the commissioner with the approval of the director of the
    28  budget and after consultation with the commissioner of labor,  including
    29  but not limited to:
    30    (A)  a  comprehensive  demonstration  of  chronic  and severe economic
    31  distress and the reasons therefor as evidenced by population and employ-
    32  ment decline, increase in unemployment and public assistance recipients,
    33  decline in real property values, relative decline in per capita  income,
    34  the extent of abandoned property and deteriorated industrial, commercial
    35  and  residential  properties, a decline in the number of business estab-
    36  lishments, obsolescence in plant capacity, loss of  markets  to  foreign
    37  competition,  the  unavailability of expansion financing, poor access to
    38  markets, the retirement of local owners of companies;
    39    (B) a demonstration of the potential of the area  to  attract  private
    40  investment  that  will provide employment to persons in the area who are
    41  unemployed or economically disadvantaged;
    42    (C) a demonstration of substantial public and private commitments to a
    43  long-term economic revitalization program for the  area  and  the  local
    44  capacity to manage such a program;
    45    (D)  a  demonstration of the manner in which the superboundary area is
    46  consistent with the empire zone development plan and a demonstration  of
    47  the  manner in which the overall [economic] empire zone development plan
    48  enunciates the needs of the area and sets forth proposals to solve them;
    49  and
    50    (E) a demonstration of the manner in which  progress  in  implementing
    51  the zone development plan will be routinely evaluated on the local level
    52  and how information essential for periodic evaluations will be compiled.
    53    Such  regulations  may  require  a demonstration of a decline in popu-
    54  lation, a decline in employment, an increase in unemployment, a  decline
    55  in  real  property  values, a relative decline in per capita income, the
    56  extent of abandoned property and deteriorated industrial, commercial and
        S. 996                             27                            A. 1926
 
     1  residential property, a decline in the  number  of  business  establish-
     2  ments, and other indicators of severe economic distress.
     3    (b)  Notwithstanding  the provisions of [paragraph (i) of] subdivision
     4  (a) of this section, any county in which the average rate  of  unemploy-
     5  ment  in  the  two  most recent calendar years was at least one and one-
     6  quarter times the state average for those years and in which the rate of
     7  poverty for individuals was at least thirteen percent according  to  the
     8  most  recent  census data available, and which does not contain a census
     9  tract or tracts[, portion of a block numbering area or a city,  town  or
    10  village]  which  meets the criteria specified in [such] paragraph (i) of
    11  subdivision (a) of this section, may apply for designation  of  an  area
    12  within  a  municipality  as an empire zone. The area proposed for desig-
    13  nation shall [be characterized by pervasive poverty,  high  unemployment
    14  and general economic distress.] meet the following requirements:
    15    (i)  the  area proposed as an empire zone under this subdivision shall
    16  not exceed two square miles that shall be defined by a legal description
    17  that may describe all or a portion of a tax parcel or tax parcels;
    18    (ii) at least sixty percent of the total empire  zone  area  shall  be
    19  located within census tracts that have rates of unemployment and poverty
    20  which  exceed the countywide unemployment and poverty rates or for coun-
    21  ties with a population of under one hundred thousand census tracts  that
    22  have  rates of unemployment or poverty which exceed the countywide unem-
    23  ployment or poverty rates according  to  the  most  recent  census  data
    24  available,  provided, however, such empire zone area shall be located in
    25  no more than six targeted areas; and
    26    (iii) up to forty percent of the total empire zone area may be  placed
    27  in a location other than as described in paragraph (ii) of this subdivi-
    28  sion;   provided,  however,  such  designation  is  to  accommodate  the
    29  attraction or expansion of a significant project within the county.
    30    (c) Notwithstanding the provisions of [paragraph (i)  of  subdivision]
    31  subdivisions  (a)  and  (b)  of  this  section, any county may apply for
    32  designation of an area within a municipality as an empire zone  provided
    33  that the following requirements are met:
    34    (i) at the time of application, the unemployment rate of the metropol-
    35  itan  statistical  area must exceed the national average of unemployment
    36  and the metropolitan statistical area must have experienced or is likely
    37  to experience within three years the lesser of a loss of  four  thousand
    38  direct jobs or a dislocation of workers equal to one-half percent of the
    39  employed  population  of  the metropolitan statistical area and at least
    40  fifty percent of the job loss or dislocation of workers must result from
    41  the action of a single employer, or eighty percent of such job  loss  or
    42  dislocation must occur in a single standard industry classification (two
    43  digit code); or
    44    (ii)  at  the time of application, the unemployment rate of the metro-
    45  politan statistical area must be equal to  or  less  than  the  national
    46  average  of unemployment and the metropolitan statistical area must have
    47  experienced or is likely to experience within three years the lesser  of
    48  a  loss  of eight thousand direct jobs or a dislocation of workers equal
    49  to one percent of the employed population of  the  metropolitan  statis-
    50  tical  area and at least fifty percent of the job loss or dislocation of
    51  workers must result from the action of  a  single  employer,  or  eighty
    52  percent  of such job loss or dislocation must occur in a single standard
    53  industry classification (two digit code); or
    54    (iii) at the time of application, the unemployment rate of  the  labor
    55  market  area  must  exceed  the national average of unemployment and the
    56  labor market area must have experienced or is likely to experience with-
        S. 996                             28                            A. 1926
 
     1  in three years the lesser of a loss of five hundred  direct  jobs  or  a
     2  dislocation  of  workers equal to two percent of the employed population
     3  of the labor market area; or
     4    (iv)  at  the  time of application, the unemployment rate of the labor
     5  market area must be equal to or less than the national average of  unem-
     6  ployment and the labor market area must have experienced or is likely to
     7  experience  within  three  years  the  lesser  of a loss of one thousand
     8  direct jobs or a dislocation of workers equal to  four  percent  of  the
     9  employed population of the labor market area; or
    10    (v) at the time of application, the municipality is declared a natural
    11  disaster area by the president of the United States; or
    12    (vi) at the time of application, the municipality contains:
    13    (A)  a  defense or military base or facility which has been designated
    14  for closure or realignment; or
    15    (B) a state-operated hospital or facility listed in sections  7.17  or
    16  13.17  of the mental hygiene law which has been designated by either the
    17  commissioner of mental health or the commissioner of mental  retardation
    18  and  developmental  disabilities  for  contraction  or  discontinuance[.
    19  Provided however, that not more than one-third of the  zones  designated
    20  pursuant  to  paragraph (iii) or (iv) of subdivision (b) of section nine
    21  hundred sixty, shall be based on applications filed  pursuant  to  para-
    22  graph (vi) of this subdivision.]; and
    23    (vii) the area proposed as an empire zone under this subdivision shall
    24  not  exceed  two  square miles or one square mile for local empire zones
    25  designated as such that shall be defined by a legal description that may
    26  describe all or a portion of a tax parcel or tax parcels; and
    27    (viii) at least sixty percent of the total empire zone area  shall  be
    28  located within census tracts that have rates of unemployment and poverty
    29  which exceed the countywide unemployment and poverty rates, or for coun-
    30  ties  with a population of under one hundred thousand census tracts that
    31  have rates of unemployment or poverty which exceed the countywide  unem-
    32  ployment  or  poverty  rates  according  to  the most recent census data
    33  available, provided, however, such empire zone area shall be located  in
    34  no more than six targeted areas; and
    35    (ix)  up  to  forty percent of the empire zone area may be placed in a
    36  location other than as described in paragraph (viii)  of  this  subdivi-
    37  sion;   provided,  however,  such  designation  is  to  accommodate  the
    38  attraction or expansion of a significant project within the county.
    39    (d) Notwithstanding the provisions of [paragraph (i)  of  subdivision]
    40  subdivisions  (a),  (b)  and  (c)  of this section, any municipality may
    41  apply for designation as [an] a neighborhood revitalization empire  zone
    42  [for  an area which shall include a United States census tract or tracts
    43  or block numbering area or areas or portions thereof, each  full  census
    44  tract  or  portion  of  a block numbering area of which according to the
    45  most recent census data available has].  To be eligible for  designation
    46  as  a  neighborhood revitalization empire zone, the proposed empire zone
    47  area must be located within a superboundary and such superboundary  must
    48  be located in an area that must meet the following requirements:
    49    (i)  at  the  time  of  application,  an unemployment rate equal to or
    50  exceeding the unemployment rate of the state of New York[;
    51    (ii)], a rate of poverty for individuals of at least twenty percent[;
    52    (iii)], a number of households receiving public assistance of fourteen
    53  percent or more[;
    54    (iv)], the municipality is considered a non-metropolitan area[;] and
    55    [(v)] there is no other empire zone in the county in which designation
    56  is sought.
        S. 996                             29                            A. 1926
 
     1    (ii) portions of superboundaries may also be located in census  tracts
     2  contiguous  to census tracts described in paragraph (i) of this subdivi-
     3  sion;
     4    (iii)  if  the  superboundary area is governed by zoning laws or other
     5  laws or regulations governing land use, such laws  or  regulations  must
     6  allow  at  least twenty-five percent of such area to be used for commer-
     7  cial or industrial activity;
     8    (iv) at least twenty-five percent of the total land within the  super-
     9  boundary  area  must  be  vacant,  abandoned  or otherwise available for
    10  industrial or commercial development or redevelopment;
    11    (v) the area proposed as an empire zone under this  subdivision  shall
    12  not exceed two square miles that shall be defined by a legal description
    13  that may describe all or a portion of a tax parcel or tax parcels; and
    14    (vi)  such  other  requirements  as  may be established in regulations
    15  promulgated by the commissioner with the approval of the director of the
    16  budget and after consultation with the commissioner of labor,  including
    17  but not limited to:
    18    (A)  a  comprehensive  demonstration  of  chronic  and severe economic
    19  distress and the reasons therefor as evidenced by population and employ-
    20  ment decline, increase in unemployment and public assistance recipients,
    21  decline in real property values, relative decline in per capita  income,
    22  the extent of abandoned property and deteriorated industrial, commercial
    23  and  residential  properties, a decline in the number of business estab-
    24  lishments, obsolescence in plant capacity, loss of  markets  to  foreign
    25  competition,  the  unavailability of expansion financing, poor access to
    26  markets, and the retirement of local owners of companies;
    27    (B) a demonstration of the potential of the area  to  attract  private
    28  investment  that  will provide employment to persons in the area who are
    29  unemployed or economically disadvantaged;
    30    (C) a demonstration of substantial public and private commitments to a
    31  long-term economic revitalization program for the  area  and  the  local
    32  capacity to manage such a program;
    33    (D)  a  demonstration of the manner in which the superboundary area is
    34  consistent with the empire zone development plan and a demonstration  of
    35  the  manner in which the overall empire zone development plan enunciates
    36  the needs of the area and sets forth proposals to solve them; and
    37    (E) a demonstration of the manner in which  progress  in  implementing
    38  the  empire  zone  development  plan  will be routinely evaluated on the
    39  local level and how information essential for periodic evaluations  will
    40  be  compiled.  Such regulations may require a demonstration of a decline
    41  in population, a decline in employment, an increase in  unemployment,  a
    42  decline  in  real  property  values,  a  relative  decline in per capita
    43  income, the extent of abandoned property  and  deteriorated  industrial,
    44  commercial and residential property, a decline in the number of business
    45  establishments, and other indicators of severe economic distress.
    46    (e)  The  empire  zones designation board may accept from an applicant
    47  seeking designation any data in lieu  of  census  data  supporting  such
    48  application as the commissioner deems to be reliable.
    49    (f)  Notwithstanding the provisions of subdivisions (a), (b), (c), (d)
    50  and (g) of this section, the commissioner may designate each year  areas
    51  of  up  to  one  non-contiguous  square mile in total which will attract
    52  large projects involving job creation of at least three hundred new jobs
    53  in the state, provided, however, such area may not be designated  within
    54  the metropolitan commuter transportation district; or projects involving
    55  job  creation  of  at  least  one hundred new jobs provided such area is
    56  located within a census tract meeting the criteria of subdivision (a) of
        S. 996                             30                            A. 1926
 
     1  this section. Unused acreage may be  carried  forward  for  use  by  the
     2  commissioner in subsequent calendar years.
     3    (g)  Notwithstanding the provisions of subdivisions (a), (b), (c), (d)
     4  and (f) of this section, the commissioner may, with the  concurrence  of
     5  the  commissioner  of agriculture and markets, designate each year areas
     6  of up to one non-contiguous square mile  in  total  which  will  attract
     7  projects  that  substantially  contribute to keeping viable agricultural
     8  land in active production or significantly increase agribusiness econom-
     9  ic activity within the state as may be  demonstrated  by  such  factors,
    10  including but not limited to, increased cultivated acreage or production
    11  capacity of or increased processing capacity or market opportunities for
    12  crops,  livestock  and  livestock  products, as defined in section three
    13  hundred one of the agriculture and  markets  law,  produced  within  the
    14  state.  The  commissioner,  with  the concurrence of the commissioner of
    15  agriculture and markets, shall promulgate regulations to establish  such
    16  further  qualification  to determine eligibility for designation of such
    17  areas, including but not limited to, the level of New York crops,  live-
    18  stock  and  livestock  products, utilized within production, processing,
    19  manufacturing or marketing functions in the state, and, provided further
    20  that such regulations will result in designation of acreage in at  least
    21  four  counties.  Unused  acreage  may  be carried forward for use by the
    22  commissioner in subsequent calendar years.
    23     § 4. Section 959 of the general municipal law, as added by chapter 686
    24  of the laws of 1986, subdivision (a) as amended  and  subdivisions  (aa)
    25  and (bb) as added by chapter 170 of the laws of 1994, subdivision (e) as
    26  amended  by  chapter  385 of the laws of 1994, subdivisions (f), (h) and
    27  (j) as amended and subdivisions (l), (m), (n), (o), (q), (r), (s),  (t),
    28  (u),  (v),  (w), (x), (y) and (z) as added by chapter 708 of the laws of
    29  1993, subdivision (i) as amended by chapter 624 of  the  laws  of  1990,
    30  subdivision  (p)  as amended by chapter 301 of the laws of 1996 and such
    31  section as further amended pursuant to section 15 of part GG of  chapter
    32  63 of the laws of 2000, is amended to read as follows:
    33     § 959. Responsibilities of the commissioner. The commissioner shall:
    34    (a)  After  consultation  with the director of the budget, the commis-
    35  sioner of labor, and the commissioner of taxation and  finance,  promul-
    36  gate  regulations  governing (i) criteria of eligibility for empire zone
    37  designation, provided, however, that such criteria be  approved  by  the
    38  director  of  the  budget; (ii) the application process; (iii) the joint
    39  certification by the commissioner, the commissioner of  labor,  and,  in
    40  the  case  of an empire zone, the local empire zone [certification offi-
    41  cer] coordinator, as to the  eligibility  of  business  enterprises  for
    42  benefits  referred to in section nine hundred sixty-six of this article,
    43  provided, however, that a business enterprise that has shifted its oper-
    44  ations, or some portions thereof, from an area within New York state not
    45  designated as an empire zone [or zone equivalent area]  to  an  area  so
    46  designated  shall not be certified to receive such benefits except where
    47  such shift is entirely within a municipality and has  been  approved  by
    48  the  local governing body of such municipality or in situations where it
    49  has been established, after a public hearing, that extraordinary circum-
    50  stances exist which warrant the relocation of a business,  in  whole  or
    51  part, into an empire zone [or a zone equivalent area] from another muni-
    52  cipality  and  the  municipality  from  which the business is relocating
    53  approves of such relocation; or where such shift in operations is from a
    54  business incubator facility operated by a municipality or by a public or
    55  private not-for-profit entity which provides space and business  support
    56  services  to newly established firms; and (iv) the joint decertification
        S. 996                             31                            A. 1926
 
     1  by the commissioner, the commissioner of labor, and, in the case  of  an
     2  empire  zone,  the local empire zone [certification officer] coordinator
     3  so as to revoke the certification of business enterprises  for  benefits
     4  referred  to  in  section  nine  hundred  sixty-six of this article with
     5  respect to an empire zone [or zone equivalent area] upon a finding  that
     6  (1)  the business enterprise made material misrepresentations of fact on
     7  its application for certification, or the business enterprise failed  to
     8  disclose  facts  in its application for certification that would consti-
     9  tute grounds for not issuing a certification; (2)  the  business  enter-
    10  prise  has  failed  to  construct,  expand,  rehabilitate or operate its
    11  facility substantially in accordance with the representations  contained
    12  in  its  application  for certification; (3) the business enterprise has
    13  failed to create new employment or prevent a loss of employment  in  the
    14  empire zone [or zone equivalent area] provided, however, that such fail-
    15  ure was not due to economic circumstances or conditions which such busi-
    16  ness  could  not  anticipate or which were beyond its control; (4) where
    17  applicable, the business enterprise  has  failed  to  submit  an  annual
    18  report  after  it  has applied for zone incentives or program assistance
    19  based on new hires or investments or failed to submit other  information
    20  to  the  local empire zone [certification officer] coordinator when due;
    21  or (5) the business enterprise has committed substantial  violations  of
    22  laws  for  the  protection  of  workers including all federal, state and
    23  local labor laws, rules or regulations; said regulations  shall  provide
    24  that  whenever any business enterprise is decertified with respect to an
    25  empire zone [or zone equivalent area]: (A) the date determined to be the
    26  earliest event constituting grounds for revoking  certification  [shall]
    27  may  be  the effective date of decertification; (B) its certified single
    28  enterprise, if any, may also be decertified; and  (C)  the  commissioner
    29  shall  notify  the commissioner of taxation and finance that such decer-
    30  tification has occurred, and such notification should include the effec-
    31  tive date of such decertification and the zone [or zone equivalent area]
    32  to which such decertification applies;
    33    (b) Receive and review applications for designation of areas as empire
    34  zones;
    35    (c) Make recommendations to the empire  zones  designation  board  for
    36  designation  of  areas as empire zones, provided, however, that all such
    37  areas recommended by the commissioner shall  meet  the  requirements  of
    38  this article;
    39    (d)  Review  new  applications  to  replace  any previously designated
    40  empire zone the designation of which has been terminated or withdrawn;
    41    (e) File notice of the designation or redesignation of an empire  zone
    42  or  of  the  revision or termination of such designation with the appli-
    43  cant, the department of taxation and finance, the  secretary  of  state,
    44  with the county, city, town or village clerk of each county, city, town,
    45  or  village, respectively, in which the empire zone is located, with the
    46  school district governing body in which the empire zone is located, with
    47  the state board of real property services and with other state and local
    48  entities; provided, however, that such notice  shall  specify  the  date
    49  such  action  was  taken  and  shall contain a description sufficient to
    50  identify the empire zone, including the names of the  abutting  streets,
    51  roads,   highways,  bodies  of  water,  or  other  identifying  physical
    52  features;
    53    (f) [Request, and shall receive from any department, division,  board,
    54  bureau, commission, agency or public authority of the state such assist-
    55  ance  as  may be necessary to establish a procedure whereby applications
    56  submitted by business entities, community-based organizations,  not-for-
        S. 996                             32                            A. 1926
 
     1  profit organizations, human service agencies, labor unions and municipal
     2  agencies  located  within  an empire zone requesting financial and other
     3  assistance provided by state programs, including, but  not  limited  to,
     4  capital  development,  human  resource development, business assistance,
     5  job training and job placement shall, consistent with  federal  law,  be
     6  given  priority  over  applications submitted by entities not located in
     7  empire zones] In consultation with  the  director  of  the  budget,  the
     8  commissioner  of  labor  and  the  commissioner of taxation and finance,
     9  establish performance measures for determining the economic and revital-
    10  ization  impacts  of  the  empire  zones  program.  Establish  reporting
    11  requirements  to  evaluate  local  zone  performance  in relation to the
    12  performance measures and review zone performance with  zone  boards  and
    13  zone  administrative  entities  as  part  of  the  annual administrative
    14  contract process;
    15    (g) [Establish a priority for the allocation  of  authority  to  issue
    16  private  activity  bonds  for the benefit of municipalities and business
    17  enterprises located or to be located within empire zones]  Request,  and
    18  shall  receive from any state agency or authority such assistance as may
    19  be necessary or desirable to assist  local  empire  zone  administrative
    20  boards with economic and revitalization efforts in the empire zone;
    21    (h)  [Coordinate,  with the local empire zone administrative board and
    22  state agencies and authorities, the provision  of  business  development
    23  programs  and  services  for  each empire zone in order to stimulate the
    24  creation and development of new small businesses,  including  new  small
    25  minority-owned and women-owned business enterprises, and may request and
    26  shall  receive from any department, division, board, bureau, commission,
    27  agency or public authority of the state such assistance as may be neces-
    28  sary] Receive and review a plan  submitted  by  the  local  empire  zone
    29  administrative  board  demonstrating  the  commitment of local resources
    30  addressing workforce training and human resource development in order to
    31  match the needs of zone businesses with the residents of the zone commu-
    32  nity, increased participation of  minority  and  women-owned  businesses
    33  within  the zones program, technical assistance for small businesses and
    34  entrepreneurs located within the zone, increased child care availability
    35  within the zone community, and increased access  to  affordable  housing
    36  for residents within the zone community;
    37    (i)  [Coordinate with the comptroller and the commissioner of taxation
    38  and finance a linked deposit program. The comptroller  and  the  commis-
    39  sioner  of  taxation  and finance are hereby authorized and empowered to
    40  enter into agreements with financial institutions located in or  serving
    41  the  empire  zones,  to  provide  for  the deposit of funds administered
    42  jointly by them in such institutions, at reduced rates of return to  the
    43  state,  in  return for commitments by such institutions to businesses of
    44  loans of comparable amounts, at reduced  interest  rates,  for  business
    45  development  projects  in  the zones that will create or preserve jobs.]
    46  Prepare in conjunction with the department of taxation  and  finance  an
    47  annual  report to include, but not be limited to, the following informa-
    48  tion, derived from the most recent data to the extent that it is  avail-
    49  able,  and  in  a manner consistent with the secrecy requirements of the
    50  tax law:
    51    (i) the number of taxpayers claiming each of the tax credits set forth
    52  in section nine hundred sixty-six of this article in the  state  and  in
    53  each empire zone; and
    54    (ii)  the  total  dollar value of each of the tax credits set forth in
    55  section nine hundred sixty-six of this article in the state and in  each
    56  empire zone;
        S. 996                             33                            A. 1926
 
     1    (j) [Assist each local empire zone board in preparing a small business
     2  assistance  plan as required by section nine hundred sixty-three of this
     3  article and coordinate with the local empire zone  administrative  board
     4  and  state  agencies  and  authorities the development of small business
     5  procurement,  export  and  marketing  programs for businesses within the
     6  empire zones.] Prepare, or cause to be prepared, an  annual  report  and
     7  submit  copies  to  the  department  of audit and control, department of
     8  taxation and finance, the temporary president of  the  senate,  and  the
     9  speaker  of  the  assembly on or before the thirty-first day of December
    10  next succeeding the year to which the report pertains, regarding  empire
    11  zone activities, including information which would allow for substantive
    12  review  of the zone's strategies and progress of the zone in meeting its
    13  short-term objectives, and an analysis of the extent to which the  long-
    14  term  goals  set forth in the empire zone application have been met. The
    15  zone administrative entities and  other  local  officials  and  agencies
    16  shall  fully  cooperate  with the commissioner in the annual performance
    17  review and in the board's performance of its other duties.  Local  offi-
    18  cials,  state  agencies, and certified businesses shall provide informa-
    19  tion requested by the commissioner which is necessary for  such  review.
    20  Such  report  shall  also  include a current description of the specific
    21  strategies and priorities  for  economic  revitalization  of  the  zone,
    22  including, but not limited to: the number of jobs created; the number of
    23  jobs  retained;  the  amount  of  private  capital leveraged with public
    24  funds; the number of businesses expanded or retained and new  businesses
    25  created,  and  the  type of businesses expanded, retained or created, as
    26  well as consideration of the improvements in the physical infrastructure
    27  of the zone. The commissioner shall promulgate rules and regulations  to
    28  set forth standards to be used to measure performance against objectives
    29  on  an  annual  basis  in  order  to facilitate the requirements of this
    30  subdivision;
    31    (k) [Review a plan submitted  no  later  than  December  thirty-first,
    32  nineteen  hundred eighty-seven, by the urban development corporation and
    33  the job development authority, for extending to minority or  women-owned
    34  contracting  companies  which are endeavoring to secure work on projects
    35  in the zones, surety guarantees assistance and such other assistance  as
    36  may  be required by such firms which currently is unavailable from other
    37  sources.] Secure, from  an  entity  independent  of  the  department  of
    38  economic  development,  a comprehensive evaluation of the performance of
    39  the zones program and of individual zones with respect to accomplishment
    40  of the objectives of the zones program and of local empire zone develop-
    41  ment plans. Such evaluation shall be  completed  no  later  than  August
    42  first, two thousand eight and be submitted by the department of economic
    43  development  to the governor, temporary president and majority leader of
    44  the senate, and the speaker of the assembly;
    45    (l) [Promulgate regulations, in consultation with the commissioner  of
    46  labor, for program evaluation and coordinate implementation of an evalu-
    47  ation  system,  which is capable of compiling and analyzing accurate and
    48  consistent information necessary for an assessment of whether  statutory
    49  objectives and criteria are being met;
    50    (m)  Review  performance objectives and progress in meeting objectives
    51  with zone boards and zone administrative entities as part of the  annual
    52  administrative contract process;
    53    (n)  Assist zone boards and zone administrative entities to effect and
    54  implement job training  and  social  services  agreements  and  programs
    55  provided  for  in  paragraphs  (v), (vi) and (vii) of subdivision (b) of
    56  section nine hundred sixty-three of this article and request and receive
        S. 996                             34                            A. 1926
 
     1  from any agency or authority of the state  such  assistance  as  may  be
     2  necessary  to  improve  the  delivery and coordination of human resource
     3  development programs to the zones;
     4    (o)  Assist zones in increasing their child care capacity and in plan-
     5  ning special care  activities,  including  the  provision  of  technical
     6  assistance by the department in planning for the provision of child care
     7  services in the zones;
     8    (p)  Coordinate  with  the  department  of  labor, the state education
     9  department, the job training partnership council  and  agencies  of  the
    10  state the inclusion in annual and biennial plans of such entities strat-
    11  egies  for  increasing and improving human resource development services
    12  on a priority basis, consistent with federal  statutory  and  regulatory
    13  requirements,  to  residents  of  the  zones and employees of zone busi-
    14  nesses, including, but not limited to, the governor's plan  for  coordi-
    15  nation and special services of the job training partnership council, the
    16  jobs  plan  and Wagner-Peyser annual plan for services of the department
    17  of labor, and the career education state plan  of  the  state  education
    18  department;
    19    (q) Arrange with the job training partnership council the provision of
    20  job  training  partnership  act  funds for use within the zones with the
    21  cooperation of the service delivery areas in  the  governor's  plan  for
    22  coordination and special services;
    23    (r)  Subject  to the availability of funds, arrange for the allocation
    24  and reservation of funds from the infrastructure improvement programs of
    25  state agencies and authorities  to  assist  the  zones  to  make  public
    26  improvements necessary for community, commercial, industrial and tourism
    27  development projects in support of zone revitalization;
    28    (s)  Systematically  enlist  other  state  agencies and authorities to
    29  participate in zone programs and projects and in cooperative planning of
    30  interagency zone activities in support of zone revitalization efforts;
    31    (t) Recommend for economic development loan and grant programs of  the
    32  department  of  economic development, urban development corporation, job
    33  development authority, and science  and  technology  foundation  special
    34  terms and conditions for viable zone projects and programs;
    35    (u)  Award  preference  to be given to applications submitted by or on
    36  behalf of zones for entrepreneurial assistance  programs  under  article
    37  nine  of the omnibus economic development act of nineteen hundred eight-
    38  y-seven to support the creation of new entrepreneurial  development  and
    39  entrepreneurial support centers;
    40    (v)  Review a program plan and guidelines submitted by the division of
    41  minority and women's business development of the department of  economic
    42  development  no  later than March thirty-first, nineteen hundred ninety-
    43  four for expedited review of applications by zone businesses for certif-
    44  ication as minority or women-owned businesses;
    45    (w) Review a program plan and guidelines submitted no later than March
    46  thirty-first,  nineteen  hundred  ninety-four  by  the  job  development
    47  authority for extending to small businesses within the zones, subject to
    48  funds  availability,  guarantees  of  performance bonds or bid bonds for
    49  construction, service and manufacturing contracts  with  federal,  state
    50  and  local  government  agencies and authorities, as well as the private
    51  sector;
    52    (x) Review a program plan submitted by  the  department  of  labor  no
    53  later  than  March  thirty-first,  nineteen  hundred ninety-four for the
    54  establishment by the department of a community service  center,  to  the
    55  extent practicable, in or immediately adjacent to each zone;
        S. 996                             35                            A. 1926
 
     1    (y)  Coordinate with the urban development corporation the creation of
     2  a special category of assistance for zones within the regional  economic
     3  development  partnership  program,  which  will  make available economic
     4  development assistance grants for zone programs and activities,  includ-
     5  ing,  but  not  limited  to,  planning,  service coordination, and local
     6  institutional capacity building for human resource development necessary
     7  for economic revitalization; planning and development of small  business
     8  incubators; job placement and preparedness programs for zones residents;
     9  education and training programs for zone businesses; child care programs
    10  and  projects  supportive  of business development; technical assistance
    11  for minority and women-owned business  development;  training  for  zone
    12  officials;  business and tourism development and marketing programs; and
    13  other innovative programs and activities  in  support  of  economic  and
    14  community development within the zones; and
    15    (z)  Assist  in  the  development  of a plan, in coordination with the
    16  health and insurance departments, to assist zones in obtaining  afforda-
    17  ble  employee  health  insurance  for small business enterprises located
    18  within the zone.
    19    (aa) Jointly certify, pursuant to regulations promulgated pursuant  to
    20  this  article,  together  with the commissioner of labor, those business
    21  enterprises, located in a zone equivalent area, which  are  eligible  to
    22  receive  the  benefits  described  in  subdivision  (e)  of section nine
    23  hundred sixty-six of this article. Such certification shall be  consist-
    24  ent with the principles set forth in section nine hundred sixty-three of
    25  this article with respect to empire zones.
    26    (bb)  Designate as zone equivalent areas those census tracts and block
    27  numbering areas which, as of the nineteen hundred ninety census, satisfy
    28  the criteria set forth in subparagraphs (A) and (B) of paragraph (i)  of
    29  subdivision  (a)  of  section  nine hundred fifty-eight of this article.
    30  Such designation shall be made, and a list of all such  zone  equivalent
    31  areas  shall  be  promulgated,  not  later than June thirtieth, nineteen
    32  hundred ninety-four.] Certify, for the purposes  of  paragraph  four  of
    33  subdivision (d) of section fifteen of the tax law, a significant invest-
    34  ment  made  within  an empire zone as a qualified empire zone investment
    35  pursuant to criteria established in rules and regulations,  approved  by
    36  the  director  of  the  budget  and  promulgated by the commissioner, to
    37  include, but not be limited to, the following: investments occurring  on
    38  or  after  April  first,  two  thousand  five by a qualified empire zone
    39  enterprise must be made in a census tract which meets the criteria spec-
    40  ified in paragraph (i)  of  subdivision  (a)  of  section  nine  hundred
    41  fifty-eight of this article or in a targeted area as defined in subdivi-
    42  sion (t) of section nine hundred fifty-seven of this article;
    43    (m)  Certify, for the purposes of paragraph five of subdivision (d) of
    44  section fifteen of the tax law, that a business entity is located within
    45  a flex acreage agribusiness opportunity empire zone designated  pursuant
    46  to subdivision (g) of section nine hundred fifty-eight of this article.
    47     § 5. Section 960 of the general municipal law, as added by chapter 686
    48  of the laws of 1986, subdivisions (b), (c) and (e) as amended by chapter
    49  624  of  the laws of 1990, paragraph (iii) of subdivision (b) as amended
    50  and paragraph (iv) of subdivision (e) as added by  chapter  708  of  the
    51  laws  of  1993,  paragraph (iv) of subdivision (b) as amended by chapter
    52  704 of the laws of 1996, paragraph (v) of subdivision (b) as amended  by
    53  chapter  492  of  the laws of 1999, paragraph (vi) of subdivision (b) as
    54  amended by section 3 and paragraphs (vii) and (viii) of subdivision  (b)
    55  as  added  by section 4 of part Q of chapter 84 of the laws of 2002, the
    56  opening paragraph of paragraph (iv) of subdivision  (e)  as  amended  by
        S. 996                             36                            A. 1926
 
     1  chapter  537  of  the  laws  of 1996 and such section as further amended
     2  pursuant to section 15 of part GG of chapter 63 of the laws of 2000,  is
     3  amended to read as follows:
     4     §  960.  Designation of empire zones. (a) The empire zones designation
     5  board is hereby created. Such board shall consist of the commissioner of
     6  taxation and finance, the director of the budget,  the  commissioner  of
     7  labor  and two members to be appointed by the governor; one member to be
     8  appointed by the temporary president of the senate;  one  member  to  be
     9  appointed  by  the  speaker of the assembly; and two non-voting members,
    10  one of whom shall be appointed by the minority leader of the senate  and
    11  one  of  whom shall be appointed by the minority leader of the assembly.
    12  The governor shall designate from among the voting members  the  [chair-
    13  man] chair of the board.
    14    (b)  The  empire  zones designation board shall designate empire zones
    15  under subdivisions (a), (b), (c) and (d) of section nine hundred  fifty-
    16  eight  of  this article from the recommendations made by the commission-
    17  er[:
    18    (i) Within eighteen months after the effective date of  this  article,
    19  not more than ten empire zones;
    20    (ii)  In  the period commencing eighteen months and ending three years
    21  after the effective date of this article, not more than nine  additional
    22  empire  zones  until a maximum of nineteen empire zones have been estab-
    23  lished statewide;
    24    (iii) In the period commencing three  years  and  ending  eight  years
    25  after  the  effective  date of this article, not more than fifteen addi-
    26  tional empire zones;
    27    (iv) In the period commencing five years and ending nine years and six
    28  months after the effective date of this article, not more than six addi-
    29  tional empire zones;
    30    (v) In the period commencing nine  years  and  six  months  after  the
    31  effective  date  of this article, not more than twelve additional empire
    32  zones each which shall contain a defense or military  base  or  facility
    33  which has been designated for closure or realignment or a site currently
    34  or  formerly  owned or operated by either the (1) United States military
    35  or (2) a defense contractor whose  employment  in  New  York  state  was
    36  adversely affected by a reduction in military spending;
    37    (vi)  In the period commencing thirteen years after the effective date
    38  of this article, not more than fourteen  additional  empire  zones,  not
    39  less  than  three  of which shall be designated pursuant to the criteria
    40  set forth in subdivision (d) of section nine hundred fifty-eight of this
    41  article;
    42    (vii) In the period commencing fifteen years after the effective  date
    43  of  this  article,  not  more  than four additional empire zones, all of
    44  which shall be designated pursuant to the criteria set forth in subdivi-
    45  sions (a), (b), (c) and (d) of section nine hundred fifty-eight of  this
    46  article;
    47    (viii) In the period commencing fifteen years after the effective date
    48  of this article, not more than two additional empire zones, all of which
    49  shall  be  designated pursuant to the criteria set forth in subdivisions
    50  (a), (b), (c) and (d) of section nine hundred fifty-eight of this  arti-
    51  cle] upon legislative authorization.
    52    (b-1)  The  commissioner  may designate empire zones under subdivision
    53  (f) of section nine hundred fifty-eight of this article in  consultation
    54  with  the  director  of the budget, the commissioner of labor, and local
    55  officials.
        S. 996                             37                            A. 1926
 
     1    (b-2) The commissioner may designate empire  zones  under  subdivision
     2  (g) of section nine hundred fifty-eight of this article with the concur-
     3  rence of the commissioner of agriculture and markets and in consultation
     4  with  the  director  of the budget, the commissioner of labor, and local
     5  officials.
     6    (c)  In reviewing applications for designation of an area as an empire
     7  zone, the board shall consider the level of local participation  includ-
     8  ing, but not limited to, local tax incentives and the provision of local
     9  services.
    10    (d)  Notwithstanding  any  other provision of this article, such zones
    11  designated, shall be, as far as practicable, equally distributed between
    12  urban, suburban and rural areas.
    13    [(e) (i) The department of audit and control, the department of  taxa-
    14  tion and finance, the department of economic development, and the legis-
    15  lative  commission  on  expenditure  review shall prepare reports on the
    16  management and the economic and fiscal impact of empire zones. The anal-
    17  ysis of the fiscal  and  economic  impact  of  the  empire  zones  shall
    18  include,  but  not  be limited to, a review of the cost of providing the
    19  tax benefits referred to in section nine hundred sixty-six of this chap-
    20  ter and the amount  of  real  property  tax  increments  segregated  for
    21  infrastructure  improvements  as  authorized  by  section  nine  hundred
    22  sixty-seven of this chapter. Such reports shall be  transmitted  to  the
    23  governor,  the  legislature and the commission by September first, nine-
    24  teen hundred ninety.
    25    (ii) A commission, whose maximum duration shall be six  months,  shall
    26  be created to evaluate and recommend whether the program should continue
    27  in operation, or whether it should be changed in some manner, or whether
    28  the  powers  of  the  empire  zone  designation board to designate zones
    29  should be discontinued.  The  commission  shall  be  composed  of  seven
    30  members,  with  the  chairperson and four other members appointed by the
    31  governor, one member appointed by the temporary president of the  senate
    32  and one member appointed by the speaker of the assembly.
    33    (iii)  The  commission shall report its findings by March first, nine-
    34  teen hundred ninety-one, to the governor and the legislature with recom-
    35  mendations of changes necessary. Notwithstanding any other provision  of
    36  law,  no  further  applications  for  empire  zone  designation shall be
    37  approved by the empire zone designation board created pursuant  to  this
    38  section if the commission report shall have recommended the discontinua-
    39  tion of the program.
    40    (iv)  An entity independent of the department shall conduct and submit
    41  to the governor and the legislature by no later  than  December  thirty-
    42  first,  nineteen  hundred  ninety-six, a comprehensive evaluation of the
    43  performance of the zones program and  of  individual  zones  on  meeting
    44  criteria established pursuant to this section. The criteria by which the
    45  empire  zones  program  and  individual  zones are to be evaluated shall
    46  include, but not be limited to, the following:
    47    (1) whether quantifiable benefits attributable to the program  justify
    48  its direct costs to the state and participating localities;
    49    (2) whether the program has contributed to the economic revitalization
    50  of the zones by stimulating (A) the creation and retention of permanent,
    51  full-time,  quality  private sector jobs; (B) the creation, location and
    52  expansion of businesses in the zones; (C)  capital  and  human  resource
    53  investments  by  zone  businesses  and new business development; and (D)
    54  public and private investments  in  zone  businesses  and  economic  and
    55  community development activities important for economic revitalization;
        S. 996                             38                            A. 1926
 
     1    (3)  whether  the program has created employment and business develop-
     2  ment opportunities for residents of the zones and job training  opportu-
     3  nities for residents and employees of zone businesses;
     4    (4)  whether  the  program  has (A) resulted in new and improved local
     5  administrative capacity within the zones to plan for and capture econom-
     6  ic opportunities and deliver  and  coordinate  economic,  community  and
     7  human  resource  development  services, and (B) increased commitments of
     8  local resources to zone revitalization, including support from the busi-
     9  ness community;
    10    (5) whether the program has stimulated assistance from state,  federal
    11  and  other  economic,  community and human resource development programs
    12  relative to other areas and improved the delivery  and  coordination  of
    13  state services to the zones; and
    14    (6)  whether the program is being managed and evaluated effectively at
    15  state and local levels.]
    16     § 6. Paragraph (i) of subdivision (a) and paragraph (vi)  of  subdivi-
    17  sion  (b)  of section 961 of the general municipal law, paragraph (i) of
    18  subdivision (a) as added by chapter 686 of the laws of  1986,  paragraph
    19  (vi)  of  subdivision  (b) as amended by chapter 624 of the laws of 1990
    20  and as further amended pursuant to section 15 of part GG of  chapter  63
    21  of the laws of 2000, are amended to read as follows:
    22    (i)  a  city, town or village shall not be authorized and empowered to
    23  apply for designation of an area as an  empire  zone  which  is  located
    24  wholly  or  partly  within  [a village] another municipality unless such
    25  action is concurred in by the governing body of such  [village]  munici-
    26  pality, and that a county shall not be authorized and empowered to apply
    27  for  designation  of  an  area  as  an empire zone unless such action is
    28  concurred in by the governing body of each  city,  town  or  village  in
    29  which such zone is located; and
    30    (vi)  include  a statement from the private industry council governing
    31  board of the service delivery area established under the  [job  training
    32  partnership  act  (P.L.  97-300,  as  amended)] workforce investment act
    33  (P.L. 105-220) as a dislocated  worker  or  low-income  individual  that
    34  encompasses  the proposed empire zone setting forth the assistance to be
    35  provided and the resources to be allocated for the training of residents
    36  in the area and the operation of job training programs;
    37     § 7. Section 962 of the general municipal law is REPEALED  and  a  new
    38  section 962 is added to read as follows:
    39     §  962.  Empire  zone  development plan. By December thirty-first, two
    40  thousand five, and every three years thereafter, in a  form  and  manner
    41  prescribed  by  the  commissioner, each local empire zone administrative
    42  board shall prepare and file a zone development plan  with  the  commis-
    43  sioner that demonstrates how the empire zone conforms with the land use,
    44  economic development and revitalization plan of the applicant.
    45    (a)  The zone development plan shall include, but shall not be limited
    46  to an identification, where applicable, of the specific geographic areas
    47  within the applicant community that will be targeted for development  or
    48  revitalization as the empire zone, which shall include:
    49    (i) an assessment of each area's strengths and weaknesses, including a
    50  description  of  how  the  empire  zone  benefits can capitalize on each
    51  area's strengths and overcome its weaknesses;
    52    (ii) a description of the financial commitments which the applicant is
    53  prepared to make to the specific geographic areas,  including,  but  not
    54  limited  to,  specific  commitments  for  infrastructure improvements in
    55  those areas and a timetable for their completion;
        S. 996                             39                            A. 1926
 
     1    (iii) the types of industries and businesses that will be targeted for
     2  location or expansion in each area;
     3    (iv)  a  description  of  the marketing strategy to be employed by the
     4  applicant to promote business development in the areas;
     5    (v) a detailed explanation of the land use  and  economic  development
     6  objectives of the applicant, including the types of industries and busi-
     7  nesses  that will be targeted, the basis upon which such objectives were
     8  established, how the empire zone will contribute to the objectives,  and
     9  what  commitment  of resources has been provided to achieve these objec-
    10  tives;
    11    (vi) a description of  how  the  applicant  will  coordinate  economic
    12  development  programs  and  providers  at  the local level to develop or
    13  revitalize the empire zone;
    14    (vii) a description of other activities to be undertaken by  municipal
    15  agencies,  business  entities,  not-for-profit  corporations, community-
    16  based organizations, or any other persons, within the applicant communi-
    17  ty, which are designed to promote private sector business investment and
    18  job development in the empire zone;
    19    (viii) a description of the human resource development, job  training,
    20  child  care,  and  transportation services to be made available to resi-
    21  dents of the applicant community in need of such services and  how  such
    22  services  will be integrated with business development activities in the
    23  empire zone; and
    24    (ix) a description of the business development programs  and  services
    25  of  the applicant to be available to stimulate the creation of new small
    26  businesses in the empire zone, including new small minority  and  women-
    27  owned business enterprises.
    28    (b)  Prior  to  being  submitted to the commissioner for approval, the
    29  empire zone development plan shall be subject to a local public  hearing
    30  to  be  held  at  least thirty days prior to approval of the plan by the
    31  governing body of the applicant. Each local zone shall  annually  submit
    32  an updated zone development policy to the commissioner by December thir-
    33  ty-first  of  each year.  The zone development policy shall include, but
    34  shall not be limited to, specific criteria, derived from and  consistent
    35  with  the  zone  development  plan,  to be used for determining what the
    36  proposed empire zone boundaries will be  for  the  upcoming  year,  what
    37  types  of industries and businesses will be targeted, and thresholds for
    38  investments and job creation required for placing zone boundaries around
    39  specific businesses.
    40     § 8. Subdivision (a), paragraphs (i), (ii), (v),  (xi)  and  (xii)  of
    41  subdivision  (b),  the opening paragraph and paragraph (vii) of subdivi-
    42  sion (c) and subdivision (d) of section 963  of  the  general  municipal
    43  law, subdivision (a) and paragraphs (i), (v), (xi) and (xii) of subdivi-
    44  sion  (b)  as amended by chapter 708 of the laws of 1993, paragraph (ii)
    45  of subdivision (b) as amended by chapter 537 of the laws  of  1996,  the
    46  opening  paragraph  and  paragraph  (vii) of subdivision (c) as added by
    47  chapter 442 of the laws of 1987, subdivision (d) as amended  by  chapter
    48  624  of  the  laws of 1990 and subdivision (a), paragraphs (ii), (v) and
    49  (xii) of subdivision (b), the opening paragraph of subdivision  (c)  and
    50  subdivision  (d) as further amended pursuant to section 15 of part GG of
    51  chapter 63 of the laws of 2000, are amended to read as follows:
    52    (a) The local empire zone [certification  officer]  coordinator  shall
    53  not  serve  on  the  local  empire  zone administrative board and shall,
    54  pursuant to regulations promulgated pursuant to  this  article,  jointly
    55  certify  together  with  the commissioner and the commissioner of labor,
    56  those business enterprises eligible to receive benefits referred  to  in
        S. 996                             40                            A. 1926
 
     1  section  nine hundred sixty-six of this article; provided, however, that
     2  such certification shall be governed  by  criteria  including,  but  not
     3  limited  to,  (i)  whether  the  business  enterprise,  if certified, is
     4  reasonably  likely to create new employment or prevent a loss of employ-
     5  ment in the zone, (ii) whether such new employment opportunities will be
     6  for individuals who will perform a substantial part of their  employment
     7  activities  in the zone, (iii) whether certification will have the unde-
     8  sired effect of causing individuals to transfer from existing employment
     9  with another business enterprise to similar employment with the business
    10  enterprise so certified, and transferring existing employment  from  one
    11  or  more other municipalities, towns or villages in the state, or trans-
    12  ferring existing employment from one or more  other  businesses  in  the
    13  zone,  (iv)  whether  such  enterprise is likely to enhance the economic
    14  climate of the zone, [and] (v) whether such business enterprise,  during
    15  the  three  years preceding the submission of an application for certif-
    16  ication, has  engaged  in  a  substantial  violation  or  a  pattern  of
    17  violations of laws regulating unemployment insurance, [workers] workers'
    18  compensation,  public  work,  child  labor, employment of minorities and
    19  women, safety and health, or other laws for the protection of workers as
    20  determined by final judgment of a judicial or administrative proceeding,
    21  and (vi) whether certification of such business enterprise is consistent
    22  with the local empire  zone  development  plan;  and  provided  further,
    23  however,  that any business enterprise that applies for any tax, utility
    24  rate, or management assistance benefits provided by this  article  shall
    25  provide ninety days written notice to the commissioner, the local empire
    26  zone [certification officer] coordinator, the local empire zone adminis-
    27  trative  board  and  the  employees  of  such business enterprise of any
    28  intent to close or partially close a facility within  the  empire  zone.
    29  For the purposes of this subdivision, "closing" shall mean the permanent
    30  termination  of employment at a business facility, and "partial closing"
    31  shall mean the permanent termination of a portion of the employment at a
    32  business facility that will either immediately reduce the work force  by
    33  at least fifty employees or will reduce the work force by at least fifty
    34  percent over a one-year period.
    35    (i)  [develop short-term goals for zone activities on an annual basis]
    36  submit a plan to the commissioner pursuant to subdivision (h) of section
    37  nine hundred fifty-nine of this article;
    38    (ii) [prepare, or cause to be prepared, an annual  report  and  submit
    39  copies  to  the  department of audit and control, department of taxation
    40  and finance, the temporary president of the senate, the speaker  of  the
    41  assembly  and  department of economic development on or before the first
    42  day of July next succeeding the  year  to  which  the  report  pertains,
    43  regarding  empire  zone  activities,  including  information which would
    44  allow for substantive review of the zone's strategies  and  progress  of
    45  the  zone  in  meeting its short-term objectives, and an analysis of the
    46  extent to which the long-term goals set forth in the empire zone  appli-
    47  cation  have  been met. The zone administrative entities and other local
    48  officials and agencies shall fully cooperate with the  zone  administra-
    49  tive  board in the annual performance review and in the board's perform-
    50  ance of its other duties. Local officials, state agencies, and certified
    51  businesses shall provide information requested by the  zone  administra-
    52  tive  board  which  is necessary for such review. Such report shall also
    53  include a current description of the specific strategies and  priorities
    54  for  economic revitalization of the zone, including, but not limited to:
    55  the number of jobs created; the number of jobs retained; the  amount  of
    56  private  capital  leveraged  with public funds; the number of businesses
        S. 996                             41                            A. 1926
 
     1  expanded or retained and new businesses created, and the type  of  busi-
     2  nesses  expanded,  retained  or created, as well as consideration of the
     3  improvements in the physical infrastructure of the zone. The commission-
     4  er  shall  promulgate rules and regulations to set forth standards to be
     5  used to measure performance against objectives on  an  annual  basis  in
     6  order to facilitate the requirements of this paragraph] submit a plan to
     7  the  commissioner  pursuant  to  section  nine hundred sixty-two of this
     8  article;
     9    (v) enter into agreements with the commissioners of economic  develop-
    10  ment,  labor, and social services, local departments of social services,
    11  and local education agencies as defined in paragraph (b) of  subdivision
    12  one  of  section  three  thousand thirty-two of the education law, local
    13  community-based organizations,  private  employers,  labor  unions,  the
    14  administrative  entity  and  private  industry  council  for the service
    15  delivery area established under the [job training partnership act  (P.L.
    16  97-300, as amended)] workforce investment act (P.L. 105-220) as a dislo-
    17  cated worker or low-income individual that includes the empire zone, and
    18  any  other  person  or state or federal agency for the purpose of estab-
    19  lishing, implementing and coordinating job training programs for workers
    20  and businesses to be located in an empire zone; provided, however,  that
    21  (A)  any  agreement to establish a job training program designed to meet
    22  the specific needs of a private employer shall require such employer  to
    23  retain  in  its  employ for not less than six months an employee who has
    24  satisfactorily completed a course of training for a particular job open-
    25  ing unless such  employee  voluntarily  leaves  such  employment  or  is
    26  discharged  for  misconduct  or  other  good cause; (B) any job training
    27  program established pursuant to this  section  shall  make  use  of  the
    28  community  service  division  of  the  labor department as well as other
    29  sources for the purpose of recruitment;
    30    (xi) in conjunction with zone  administrative  entities,  develop  and
    31  implement  a  system  for  continuous  monitoring and evaluation of zone
    32  performance at the local level consistent with the guidelines set  forth
    33  in  [subdivisions (l) through (p) of] section nine hundred fifty-nine of
    34  this article; and
    35    (xii) provide within the zone, or contract  with  a  new  or  existing
    36  community-based  local  development  corporation  or  entity to provide,
    37  strategic economic development planning  for  the  zone,  marketing  and
    38  promotion of the zone, assistance to companies in applying for available
    39  benefits, preparation of applications for financing assistance and other
    40  technical assistance services; coordination of the delivery of state and
    41  local  programs  within  the zones; and operation of such other economic
    42  development assistance programs in furtherance of the empire zone devel-
    43  opment plan as may be appropriate. Provided, however, within the  amount
    44  appropriated  therefor  and allocated by the director of the budget, the
    45  commissioner, through annual administrative  contracts,  shall,  to  the
    46  maximum  extent  feasible,  make  equally  available  financial support,
    47  through contracts or other means,  to  assist  with  the  administrative
    48  expenses  of  the  local  zone  administrative bodies or community-based
    49  development organizations. No funds shall be  made  available  for  this
    50  purpose  unless the amount to be provided has been matched by private or
    51  governmental sources, other than state  sources,  in  amounts  at  least
    52  equalling that to be provided by the state. Such matching funds shall be
    53  earmarked  and used exclusively for the local administration of the zone
    54  program or for activities of the zone program. At least fifty percent of
    55  such matching funds shall be in cash, provided that the commissioner may
    56  waive this requirement for communities with populations  of  twenty-five
        S. 996                             42                            A. 1926
 
     1  thousand  or  less, and provided, further, that any amounts appropriated
     2  for minority and women-owned business development within the zones shall
     3  be distributed by the commissioner pursuant to  a  competitive  proposal
     4  solicitation  process.  In  the  case that no amount is appropriated and
     5  allocated by the director of the budget, the local empire zone  adminis-
     6  trative  board  may elect by resolution to have the commissioner provide
     7  the administrative services of the zone as set forth herein.
     8    The empire zone administrative board shall cooperate with the  commis-
     9  sioner  in the production of the annual report of the local empire [zone
    10  administrative board] zones required by subdivision [(b)] (j) of  [this]
    11  section  nine  hundred  fifty-nine  of this article which shall include,
    12  subject to the tax secrecy provisions referred to in subdivision (d)  of
    13  this  section, [include,] but not be limited to, reporting the following
    14  information with respect to the  year  immediately  preceding  the  year
    15  which is the subject of the report:
    16    (vii)  a  statement  summarizing all amounts received as, and expendi-
    17  tures made from, financial support for administrative expenses  pursuant
    18  to paragraph [(vii)] (xii) of subdivision (b) of this section; and
    19    (d)  At the request of any local empire zone administrative board, the
    20  department of taxation and finance, the department of economic  develop-
    21  ment, the public service commission and any municipal corporation within
    22  the empire zone shall, to the extent that it possesses any of the infor-
    23  mation  required  by  subdivision (c) of this section, and to the extent
    24  that such information can be disclosed  without  violating  the  secrecy
    25  provisions  contained  in  sections two hundred two, two hundred eleven,
    26  six hundred ninety-seven, [one thousand one] eleven  hundred  forty-six,
    27  [one  thousand  two]  twelve hundred fifty, [one thousand four] fourteen
    28  hundred sixty-seven and [one thousand five] fifteen hundred eighteen  of
    29  the  tax law, provide that information to the local empire zone adminis-
    30  trative board for inclusion in [its] the annual  report  issued  by  the
    31  department  of  economic  development.   The amount of any real property
    32  taxes required to be set forth in the report pursuant to subdivision (c)
    33  of this section shall be computed and furnished to the  zone's  adminis-
    34  trative  board  by the municipality which levied the tax. The failure of
    35  any empire zone administrative board to prepare and submit a  report  or
    36  information  as  required  by  [subdivision] subdivisions (b) and (c) of
    37  this section shall make the board or other  community-based  development
    38  organization ineligible to receive any financial support for administra-
    39  tive  expenses  authorized by paragraph [(vii)] (xii) of subdivision (b)
    40  of this section; provided, however, that such financial assistance shall
    41  not be withheld on account of the report's failure to include any infor-
    42  mation which is required by subdivision (c) of this section but  is  not
    43  available to the empire zone administrative board.
    44     §  9.  Section 964 of the general municipal law, as amended by chapter
    45  708 of the laws of 1993 and the section heading and subdivisions (a) and
    46  (b) as further amended pursuant to section 15 of part GG of  chapter  63
    47  of the laws of 2000, is amended to read as follows:
    48     §  964. Empire zone capital [corporations] credits.  (a) [No more than
    49  three empire zone capital corporations may be established in  each  zone
    50  for  the  purpose  of  raising  funds through private and public grants,
    51  donations or investments, to be used in making investments in, and loans
    52  to, business firms certified pursuant to subdivision (a) of section nine
    53  hundred sixty-three of this article for the purpose of  encouraging  the
    54  establishment or expansion of businesses and the provision of additional
    55  job opportunities within such area. A zone capital corporation may serve
    56  one  or more zones within an economic development region or zones within
        S. 996                             43                            A. 1926
 
     1  two or more regions. Prior to the establishment of a zone capital corpo-
     2  ration, the zone board and the commissioner of the department of econom-
     3  ic development shall approve the formation of the proposed zone  capital
     4  corporation,  its  board of directors and management, and its procedures
     5  for making, servicing and monitoring investments. In no event,  however,
     6  shall  an  empire zone capital corporation acquire an ownership interest
     7  in any certified business firm which amounts to  more  than  twenty-five
     8  percent  of  the  ownership interest of such certified business firm. No
     9  loan to or investment in any business firm shall be made  by  an  empire
    10  zone  capital  corporation  located in a zone within a town with a popu-
    11  lation of more than twenty-five thousand,  until  such  corporation  has
    12  accumulated  at  least two hundred thousand dollars in capital stock. No
    13  loan or investment in any business firm shall be made by an empire  zone
    14  capital corporation located in a zone within a town with a population of
    15  less than twenty-five thousand until such corporation has accumulated at
    16  least  one  hundred  thousand  dollars  in capital stock. A zone capital
    17  corporation shall submit to the zone  board  an  annual  report  on  its
    18  activities.
    19    (b)  Each  zone  capital  corporation  shall  establish  an investment
    20  committee for the purpose of evaluating applications for loans and equi-
    21  ty investments. Each committee shall be comprised of members who possess
    22  the requisite business and financial  expertise  necessary  to  evaluate
    23  applications for loans and/or equity investments.
    24    (c)  Each empire zone capital corporation shall, to the maximum extent
    25  feasible, undertake measures and procedures to ensure meaningful partic-
    26  ipation by minority-owned and women-owned business  enterprises  in  the
    27  activities  and  investments  of such corporation. Each such corporation
    28  shall additionally, to the maximum extent feasible,  undertake  measures
    29  and procedures to ensure meaningful participation by locally owned busi-
    30  ness enterprises in the activities and investments of such corporation.
    31    (d)]  The  total amount of tax credits available to each zone pursuant
    32  to subdivision twenty of section two  hundred  ten,  subsection  (l)  of
    33  section  six  hundred  six,  subsection  (d) of section fourteen hundred
    34  fifty-six and subdivision (h) of section fifteen hundred eleven  of  the
    35  tax law, shall be two million five hundred thousand dollars[, (provided,
    36  however, that in no event shall the credits available in any zone exceed
    37  five  hundred  thousand  dollars in the case of qualified investments in
    38  certified  zone  businesses  as  described  in  such  subdivisions   and
    39  subsections)].  Apportionment  of  credits within a zone between capital
    40  investments in and contributions to  zone  capital  corporations  estab-
    41  lished  prior to January first, two thousand five, direct investments in
    42  certified zone businesses  or  contributions  to  community  development
    43  projects will be determined and accounted for by the local zone adminis-
    44  trative  board  in  consultation  with  the  zone administrative entity,
    45  subject to regulations promulgated by the commissioner [of  the  depart-
    46  ment  of  economic  development]. Credits not used by a zone within four
    47  years of their apportionment may, after a public hearing, be reallocated
    48  pursuant to regulations promulgated by the commissioner.  Certifications
    49  under subdivision twenty of section two hundred ten, subsection  (l)  of
    50  section  six  hundred  six,  subsection  (d) of section fourteen hundred
    51  fifty-six and subdivision (h) of section fifteen hundred eleven  of  the
    52  tax law shall be consistent with the provisions of this subdivision.
    53    [(e)]  (b) The commissioner shall promulgate regulations governing the
    54  criteria of eligibility for the tax credits, referred to in  subdivision
    55  [(d)]  (a)  of  this section, applicable to direct equity investments in
    56  certified zone businesses and to contributions to community  development
        S. 996                             44                            A. 1926
 
     1  projects  provided for in this section. Such regulations shall establish
     2  requirements including, but not limited to: (i) a demonstration that the
     3  direct equity investment in a certified zone business  will  contribute,
     4  significantly, to an activity having tangible economic benefits, such as
     5  start-up,  expansion  or industrial modernization of such zone business;
     6  (ii) a demonstration that the certified zone business has the  potential
     7  to create jobs; and (iii) a demonstration that the direct equity invest-
     8  ment  is  necessary  to  increase the amount of capital available to the
     9  certified zone business, provided, however, that such investment is  not
    10  intended  nor  shall  it  be  used to refinance existing debt or replace
    11  existing equity in such zone business.
    12    [(f)] (c) In addition to the duties set forth in  subdivision  (b)  of
    13  section  nine  hundred sixty-three of this article, the zone administra-
    14  tive board shall, consistent with the  regulations  promulgated  by  the
    15  commissioner,  determine the eligibility of direct equity investments in
    16  certified zone businesses and  contributions  to  community  development
    17  projects for the tax credits, described in subdivision [(d)] (a) of this
    18  section, that are available to such zone. Such determination by the zone
    19  administrative  board  shall be subject to review by the commissioner in
    20  his or her discretion. The commissioner, upon review  of  a  zone  board
    21  determination  made pursuant to this subdivision, shall accept or reject
    22  such determination as may be deemed appropriate.
    23     § 10. The opening paragraph and subdivision (e) of section 966 of  the
    24  general municipal law, as amended by chapter 170 of the laws of 1994 and
    25  as  further  amended  pursuant to section 15 of part GG of chapter 63 of
    26  the laws of 2000, are amended to read as follows:
    27    In addition to the benefits provided for in this article, other  bene-
    28  fits  applicable  to  empire zones are provided elsewhere in the consol-
    29  idated laws, and [benefits are provided in the case of  zone  equivalent
    30  areas, as follows:] include the following:
    31    (e) For credits against the taxes imposed under articles nine-A, twen-
    32  ty-two,  thirty-two and thirty-three of the tax law, based on wages paid
    33  to certain employees employed by a business located in  an  empire  zone
    34  [or  in a zone equivalent area,] see subdivision nineteen of section two
    35  hundred ten, subsection (k) of section six hundred six,  subsection  (e)
    36  of  section  fourteen  hundred  fifty-six and subdivision (g) of section
    37  fifteen hundred eleven, respectively, of the tax law;
    38     § 11. Section 969 of the general municipal law, as amended by  chapter
    39  606 of the laws of 1988, subdivision (a) as amended by section 1 of part
    40  O of chapter 60 of the laws of 2004, subdivision (b) as amended by chap-
    41  ter 708 of the laws of 1993, the opening paragraph of subdivision (c) as
    42  amended  by  chapter 624 of the laws of 1990, paragraph 2 of subdivision
    43  (c) as amended by section 5 and paragraphs 6, 7 and 8 of subdivision (c)
    44  as added by section 6 of part Q of chapter 84 of the laws  of  2002  and
    45  such  section  as  further  amended pursuant to section 15 of part GG of
    46  chapter 63 of the laws of 2000, is amended to read as follows:
    47     § 969. Termination or revision of an  empire  zone.    (a)  Except  as
    48  provided  in  this section, any designation of an area as an empire zone
    49  shall remain in effect during the period beginning on the date of desig-
    50  nation and ending March thirty-first, two thousand [five] ten.
    51    (b) [After] The commissioner may withhold approval of a joint  certif-
    52  ication  of  business  enterprises  or  of empire zone boundary revision
    53  requests or, after consultation with the director of the budget and  the
    54  commissioner of labor, the commissioner may terminate the designation of
    55  an  area  as  an  empire  zone upon a finding that (1) the applicant has
    56  failed substantially to  implement  the  empire  zone  development  plan
        S. 996                             45                            A. 1926
 
     1  [within  the  time  stated  therein];  (2) there has been no substantial
     2  business development or job creation within the area  designated  as  an
     3  empire  zone  [within  five years after such designation]; (3) there has
     4  been  inadequate  management  and  evaluation  of  the zone at the local
     5  level; or (4) the applicant  has  [repeatedly]  failed  to  comply  with
     6  program  reporting and performance requirements, provided, however, that
     7  no termination shall occur unless and  until  written  notice  has  been
     8  given  to  the  applicant and a public hearing has been held thirty days
     9  prior to the effective date of such termination.
    10    (c) [The governing body of a city, county, town or village] The appli-
    11  cant municipalities of empire zones that are in existence on March thir-
    12  ty-first, two thousand five shall submit to the commissioner by November
    13  first, two thousand five a request  to  revise  the  boundaries  of  the
    14  empire  zone that would bring the zone into compliance with section nine
    15  hundred fifty-eight of this article. Failure to timely submit a complete
    16  request for a  boundary  revision  may  result  in  the  withholding  of
    17  approval  for  joint certification of business enterprises or the termi-
    18  nation of empire zone designation by the commissioner. The  commissioner
    19  may,  after  consultation  with  the commissioner of labor, approve such
    20  revision subject to the following provisions:
    21    (1) The commissioner shall affirm that such revision  would  not  have
    22  the effect of producing an empire zone which does not satisfy the crite-
    23  ria  for  empire  zone designation established by or pursuant to section
    24  nine hundred fifty-eight of this article;
    25    (2) The revision of the borders of an empire  zone  pursuant  to  this
    26  section  shall have no effect on the duration of the designation of such
    27  empire zone as provided by subdivision (a) of this section;
    28    (3) A development plan  satisfactory  to  the  commissioner  shall  be
    29  submitted pursuant to section nine hundred sixty-two of this article;
    30    (d)  If  an  empire zone area is terminated as a result of subdivision
    31  (c) of this section, a business enterprise that is located in such  area
    32  that  was certified pursuant to this article prior to the effective date
    33  of the chapter of the laws of two thousand five that added this subdivi-
    34  sion shall be deemed to continue to be certified under this article  for
    35  purposes  of sections fourteen, fifteen and sixteen, section one hundred
    36  eighty-seven-j, subdivisions twenty-seven and  twenty-eight  of  section
    37  two  hundred  ten, subsections (bb) and (cc) of section six hundred six,
    38  subdivision (z) of section eleven hundred fifteen, subsections  (o)  and
    39  (p)  of  section fourteen hundred fifty-six and subdivisions (r) and (s)
    40  of section fifteen hundred eleven of the tax law and shall  continue  to
    41  be  subject  to  all  reporting  and other requirements of this article;
    42  approval by the commissioner of certification applications  received  by
    43  the department of economic development on or after the effective date of
    44  the chapter of the laws of two thousand five that added this subdivision
    45  and  prior  to  the  effective date of the boundary revision required by
    46  subdivision (c) of this section shall only be  granted  upon  a  finding
    47  that  such business would be located within the permissible areas as set
    48  forth in section nine hundred fifty-eight of this  article,  or  upon  a
    49  finding  by  the commissioner that such approval is necessary or desira-
    50  ble.
    51    (e) Once within a four year period the governing bodies of the  appli-
    52  cants  may,  by  resolution,  submit  to  the  commissioner a request to
    53  significantly revise the [boundaries] superboundary or a  targeted  area
    54  of  an  [existing]  empire  zone existing pursuant to subdivision (c) of
    55  this section and subdivisions (a) through (d) of  section  nine  hundred
    56  fifty-eight  of  this article.  The commissioner may, after consultation
        S. 996                             46                            A. 1926
 
     1  with the commissioner of labor, approve such  revision  subject  to  the
     2  following provisions:
     3    (1) Any revision of the [borders] superboundary or targeted area of an
     4  empire zone shall be based upon a determination by the commissioner that
     5  extraordinary change in circumstances support the need for a substantial
     6  change  [in  circumstances  has  occurred since the establishment of the
     7  existing borders] to the empire  zone  superboundary  or  targeted  area
     8  which  makes revision of such [borders] boundary both necessary [or] and
     9  desirable under the empire zones development plan.
    10    (2) The commissioner shall affirm that such revision  would  not  have
    11  the  effect  of  producing an empire zone superboundary or targeted area
    12  which does not satisfy the criteria for  empire  zone  superboundary  or
    13  targeted area designation established by or pursuant to subdivisions (a)
    14  and (d) of section nine hundred fifty-eight of this article.
    15    (3)  The  zone  administrative  board's  resolution  recommending  the
    16  revision.
    17    (f) Once within a one year period the governing bodies of  the  appli-
    18  cants may, by resolution, submit to the commissioner a request to revise
    19  the  boundaries  of an empire zone area existing pursuant to subdivision
    20  (c) of this section and section nine hundred fifty-eight of  this  arti-
    21  cle. If, however, there is a change in circumstances involving extenuat-
    22  ing factors within the year (such as the attraction/retention of a major
    23  potential/area employer, which is consistent with the zone's development
    24  goals)  the  request  will  be  considered.  The commissioner may, after
    25  consultation with the  commissioner  of  labor,  approve  such  revision
    26  subject to the following provisions:
    27    (1)  Any revision of the borders of an empire zone area shall be based
    28  upon a determination by the commissioner that a change in  circumstances
    29  support  the  need  for  a  change  to  the empire zone area which makes
    30  revision of such borders necessary or desirable under  the  empire  zone
    31  development plan.
    32    (2)  The  commissioner  shall affirm that such revision would not have
    33  the effect of producing an empire zone which does not satisfy the crite-
    34  ria for empire zone designation established by or  pursuant  to  section
    35  nine hundred fifty-eight of this article.
    36    (3)  The commissioner may grant approval of revision of the borders of
    37  an empire zone without prior public notice and without  a  prior  public
    38  hearing  if such revision adds territory to an existing empire zone, but
    39  does not remove territory from such zone.
    40    (4) The commissioner may grant approval of a revision of  the  borders
    41  of  an  empire  zone after public notice of such proposed revision and a
    42  public hearing at least thirty days prior to the effective date of  such
    43  revision,  if  such  revision  removes territory from an existing empire
    44  zone.
    45    (5) The revision of the borders of an empire zone shall have no effect
    46  on the duration of the designation of such empire zone  as  provided  by
    47  subdivision (a) of this section.
    48    (6)  [Any  request to revise the boundaries of an existing empire zone
    49  submitted to the commissioner on or after January fifteenth,  two  thou-
    50  sand three shall not result in the final designation of less than seven-
    51  ty-five  percent of the existing zone's undesignated acreage on or after
    52  January fifteenth, two thousand three in more than  three  noncontiguous
    53  areas.  Any  request  by  an  existing  zone to the commissioner for the
    54  designation of up to twenty-five percent of the existing zone's  remain-
    55  ing  undesignated  acreage  on  or after January fifteenth, two thousand
    56  three shall demonstrate that: the proposed acreage offers a  significant
        S. 996                             47                            A. 1926
 
     1  contribution  to the economic revitalization of the zone and surrounding
     2  area, to include the creation or retention of private sector jobs, or  a
     3  plan  to  demonstrate that the capital, human resource, or other invest-
     4  ment  by businesses located within the proposed acreage will approximate
     5  fifty percent of the projected aggregate amount of zone benefits  to  be
     6  received by the certified businesses located within the proposed acreage
     7  during  the first twelve months following such designation; and that the
     8  proposed acreage is serviced, or will be serviced, by public transporta-
     9  tion available to zone or  community  residents,  or  other  prospective
    10  employees,  in  those zones where a public transportation system already
    11  exists and where such service is economically feasible; but  only  after
    12  public  notice  of  such proposed revision and a public hearing at least
    13  thirty days prior to the effective  date  of  such  revision.  Provided,
    14  however,  if  an  existing  zone  demonstrates that a project which will
    15  enhance the economic revitalization of the zone and benefit  zone  resi-
    16  dents  cannot  be  included within one of the three noncontiguous areas,
    17  and upon the commissioner's determination that inclusion of  such  addi-
    18  tional  noncontiguous  lands  poses  significant  potential for economic
    19  development, to include job creation of no less than three  hundred  new
    20  jobs,  more than twenty-five percent of the existing zone's undesignated
    21  acreage on or after January fifteenth, two thousand three can be used in
    22  more than three noncontiguous areas, but only  after  public  notice  of
    23  such  proposed  revision and a public hearing at least thirty days prior
    24  to the effective date of such revision.
    25    (7) Any request to revise the boundaries of a new empire zone  submit-
    26  ted  to  the  commissioner  shall not result in the final designation of
    27  less than seventy-five percent of the new zone's undesignated acreage in
    28  more than three noncontiguous areas. Any request by a new  zone  to  the
    29  commissioner for the designation of up to twenty-five percent of the new
    30  zone's  remaining  undesignated  acreage  shall  demonstrate  that:  the
    31  proposed acreage offers a significant contribution to the economic revi-
    32  talization of the zone and surrounding area, to include the creation  or
    33  retention  of  private  sector  jobs,  or a plan to demonstrate that the
    34  capital, human resource, or other investment by businesses located with-
    35  in the proposed acreage will approximate fifty percent of the  projected
    36  aggregate  amount of zone benefits to be received by the certified busi-
    37  nesses located within the  proposed  acreage  during  the  first  twelve
    38  months  following  such  designation;  and  that the proposed acreage is
    39  serviced, or will be serviced, by  public  transportation  available  to
    40  zone  or  community  residents, or other prospective employees, in those
    41  zones where a public transportation system already exists and where such
    42  service is economically feasible; but only after public notice  of  such
    43  proposed revision and a public hearing at least thirty days prior to the
    44  effective date of such revision. Provided, however, if a new zone demon-
    45  strates that a project which will enhance the economic revitalization of
    46  the zone and benefit zone residents cannot be included within one of the
    47  three  noncontiguous  areas,  and  upon the commissioner's determination
    48  that inclusion of such additional noncontiguous lands poses  significant
    49  potential  for  economic development, to include job creation of no less
    50  than three hundred new jobs, more than twenty-five percent  of  the  new
    51  zone's undesignated acreage can be used in more than three noncontiguous
    52  areas,  but  only  after  public  notice of such proposed revision and a
    53  public hearing at least thirty days prior to the effective date of  such
    54  revision.
    55    (8)  It  is  the  policy  to allow each zone no more than one boundary
    56  amendment within a twelve month period. If, however, there is  a  change
        S. 996                             48                            A. 1926
 
     1  in  circumstances involving extenuating factors within the year (such as
     2  the attraction/retention of a major potential/area  employer,  which  is
     3  consistent  with  the  zone's  development  goals),  the request will be
     4  considered] A demonstration that such proposed change is consistent with
     5  the  development plan and meets the criteria for empire zone designation
     6  established by or pursuant to section nine hundred fifty-eight  of  this
     7  article shall be submitted by the local empire zone.
     8    (7)  Resolutions  from  municipalities to which land is being added or
     9  removed, concurring in the applicant  municipality's  proposed  boundary
    10  revision.
    11    (8)  The  zone  administrative  board's  resolution  recommending  the
    12  revision.
    13    (9)  The  applicant  municipality's  local  law  amending  the   legal
    14  description of the zone boundaries.
    15    [(d)] (g) Upon the termination or revision of the borders of an empire
    16  zone  as provided in this section, the commissioner shall file notice of
    17  such action as required by section nine hundred fifty-nine of this arti-
    18  cle.
    19     § 12. Subdivisions (a), (b), (c), (g) and (j) of section 14 of the tax
    20  law, subdivisions (a), (b), (c) and (g) as amended by section 10 of part
    21  CC of chapter 85 of the laws of 2002 and subdivision (j) as  amended  by
    22  section  1  of part C of chapter 209 of the laws of 2004, are amended to
    23  read as follows:
    24    (a) Qualified empire zone enterprise. A business enterprise  which  is
    25  certified  under  article eighteen-B of the general municipal law [prior
    26  to July first, two thousand five] and meets the employment test shall be
    27  a "qualified empire zone enterprise":
    28    (1) for purposes of section one hundred  eighty-seven-j  and  articles
    29  nine-A,  twenty-two,  thirty-two  and  thirty-three of this chapter, for
    30  each of the taxable years within  the  "business  tax  benefit  period,"
    31  which  period  shall consist of (A) in the case of a business enterprise
    32  with a test date occurring on or before December thirty-first, two thou-
    33  sand one, the first fifteen taxable years beginning on or after  January
    34  first,  two thousand one, [and] (B) in the case of a business enterprise
    35  with a test date occurring on or after January first, two thousand  two,
    36  but  prior  to April first, two thousand five, the fifteen taxable years
    37  next following the business enterprise's test year, and (C) in the  case
    38  of  a  business  enterprise which is first certified under article eigh-
    39  teen-B of the general municipal law on or after April first,  two  thou-
    40  sand five, the ten taxable years starting with the taxable year in which
    41  the  business  enterprise's  first  date  of certification under article
    42  eighteen-B of the general municipal law occurs, but only with respect to
    43  each of such [fifteen] business tax benefit period years for  which  the
    44  employment test is met, and
    45    (2)  for  purposes  of  articles  twenty-eight and twenty-nine of this
    46  chapter, during the "sales and use  tax  benefit  period."  Such  period
    47  shall  consist of one hundred twenty consecutive months beginning on the
    48  later of (A) March first, two thousand one, or (B) the first day of  the
    49  month  next  following  the  date of issuance of a qualified empire zone
    50  enterprise certification by the commissioner under  subdivision  (h)  of
    51  this  section. Provided however, such period shall not include any month
    52  falling within a taxable year immediately preceded  by  a  taxable  year
    53  with  respect  to which the business enterprise did not meet the employ-
    54  ment test.
    55    (b) Employment test.
        S. 996                             49                            A. 1926
 
     1    (1) General. [The] Except as provided under paragraphs four  and  five
     2  of this subdivision, in the case of a business enterprise which is first
     3  certified  under  article eighteen-B of the general municipal law before
     4  April first, two thousand five, the employment test shall  be  met  with
     5  respect to a taxable year if the business enterprise's employment number
     6  in  the empire zones for such taxable year equals or exceeds its employ-
     7  ment number in such zones for the base period, and its employment number
     8  in the state outside of such zones  for  such  taxable  year  equals  or
     9  exceeds its employment number in the state outside of such zones for the
    10  base  period. If the base period is zero years and the enterprise has an
    11  employment number in such zone of greater than zero with  respect  to  a
    12  taxable  year,  then  the employment test will be met only if the enter-
    13  prise qualifies as a new business under subdivision (j) of this section.
    14    (2) Change in zone boundaries or  newly  designated  zones.  Provided,
    15  however, where there has been one or more revisions of the boundaries of
    16  an empire zone that resulted in the inclusion of the business enterprise
    17  within  such  zone, the employment test shall be determined with respect
    18  to a taxable year as if the boundaries of the revised zone on  the  last
    19  day of the taxable year existed during the base period and test year and
    20  as  if  the  enterprise  had been located in the revised zone during its
    21  base period and test year. In addition, where an  area  has  been  newly
    22  designated  as  an  empire zone, the employment test shall be determined
    23  with respect to a taxable year as if such newly designated zone  existed
    24  during  the  base period and test year and as if the enterprise had been
    25  located in the newly designated zone during its  base  period  and  test
    26  year.
    27    (3)  Relocation  from  a business incubator facility. Where a business
    28  enterprise relocates to an empire zone from a business incubator facili-
    29  ty operated by a municipality or by a public or  private  not-for-profit
    30  entity  which  provides space or business support services or both space
    31  and business support services  to  newly  established  enterprises,  the
    32  employment test shall be determined with respect to a taxable year as if
    33  such  business enterprise was located in the empire zone during the base
    34  period.
    35    (4) In the case of a business enterprise which (A) is first  certified
    36  under  article eighteen-B of the general municipal law on or after April
    37  first, two thousand five, or (B) is first certified under  such  article
    38  eighteen-B  before  April first, two thousand five and has a base period
    39  of zero years, or (C) is an electric generating facility which was first
    40  certified under such article eighteen-B before April first, two thousand
    41  five, or (D) is first certified under  such  article  eighteen-B  before
    42  April  first,  two thousand five and is principally engaged in the busi-
    43  ness of owning real property or of owning and  managing  real  property,
    44  the  employment  test shall be met with respect to a taxable year if the
    45  business enterprise's employment number in  the  state  and  the  empire
    46  zones  for  such taxable year exceeds its employment number in the state
    47  and the empire zones, respectively, for the base period.
    48    (5) For purposes of the sales and use tax benefit period, in the  case
    49  of  a  business  enterprise which is first certified under article eigh-
    50  teen-B of the general municipal law on or after April first,  two  thou-
    51  sand  five,  and  is  so  certified  during  its first taxable year, the
    52  employment test shall be met with respect to such first taxable year  in
    53  any month in which its employment number exceeds zero.
    54    (c)  Base  period.  [The] (1) Except as provided in paragraphs two and
    55  three of this subdivision, in the case of a business enterprise which is
    56  first certified under article eighteen-B of the  general  municipal  law
        S. 996                             50                            A. 1926
 
     1  before  April first, two thousand five, the term "base period" means the
     2  five taxable years immediately preceding the test year. If the  business
     3  enterprise  has  fewer than five such years, then the term "base period"
     4  means such smaller set of years.
     5    (2)  In the case of a business enterprise which (A) is first certified
     6  under article eighteen-B of the general municipal law on or after  April
     7  first,  two  thousand five, or (B) is first certified under such article
     8  eighteen-B before April first, two thousand five and, at the time it  is
     9  first  certified, has a base period of zero years, or (C) is an electric
    10  generating facility which was first certified under such  article  eigh-
    11  teen-B  before April first, two thousand five, or (D) is first certified
    12  under such article eighteen-B before April first, two thousand five  and
    13  is  principally  engaged  in  the business of owning real property or of
    14  owning and managing real property, the term "base period" means the four
    15  taxable years immediately preceding the taxable year in which the  busi-
    16  ness  enterprise  was  first  certified  under article eighteen-B of the
    17  general municipal law. If the business enterprise has  fewer  than  four
    18  such years, then the term "base period" means such smaller set of years.
    19    (3)  For purposes of the sales and use tax benefit period, in the case
    20  of a business enterprise which is first certified  under  article  eigh-
    21  teen-B  of  the general municipal law on or after April first, two thou-
    22  sand five, the term "base period" means the three  taxable  years  imme-
    23  diately preceding the business enterprise's test year. For this purpose,
    24  the  definitions  set  forth in subdivisions (d) and (e) of this section
    25  shall apply. However, the definition of the term "test date" in subdivi-
    26  sion (e) shall be read as if the words "prior to July first,  two  thou-
    27  sand five" were omitted from such definition.
    28    (g)  Employment  number.  The  term "employment number" shall mean the
    29  average number of individuals, excluding general executive officers  (in
    30  the  case of a corporation), employed full-time by the enterprise for at
    31  least one-half of the taxable year. Such number  shall  be  computed  by
    32  determining  the  number of such individuals employed by the taxpayer on
    33  the thirty-first day of March, the thirtieth day of June, the  thirtieth
    34  day  of September and the thirty-first day of December during the appli-
    35  cable taxable year, adding  together  the  number  of  such  individuals
    36  determined  to be so employed on each of such dates and dividing the sum
    37  so obtained by the number of such dates occurring within such applicable
    38  taxable year. Such number shall not include individuals employed  within
    39  the  state  within  the  immediately preceding sixty months by a related
    40  person to the QEZE, as such term "related person" is defined in subpara-
    41  graph (c) of paragraph three of subsection (b) of section  four  hundred
    42  sixty-five  of  the internal revenue code.  For this purpose, a "related
    43  person" shall include an entity which would have qualified as a "related
    44  person" to the QEZE if it had not  been  dissolved,  liquidated,  merged
    45  with another entity or otherwise ceased to exist or operate.
    46    [(j)] (k) If the designation of an area as an empire zone is no longer
    47  in effect because section nine hundred sixty-nine of the general munici-
    48  pal law was not amended to extend the effective date of such designation
    49  so  that  the designations of all empire zones pursuant to article eigh-
    50  teen-B of the general municipal law have expired, a business  enterprise
    51  that was certified pursuant to article eighteen-B of the general munici-
    52  pal  law  on  the day immediately preceding the day on which such desig-
    53  nation expired shall be deemed to continue to be  certified  under  such
    54  article  eighteen-B  for purposes of this section, and sections fifteen,
    55  sixteen, section one hundred eighty-seven-j,  subdivisions  twenty-seven
    56  and  twenty-eight  of section two hundred ten, subsections (bb) and (cc)
        S. 996                             51                            A. 1926
 
     1  of section six hundred six, subdivision (z) of  section  eleven  hundred
     2  fifteen,  subsections (o) and (p) of section fourteen hundred fifty-six,
     3  and subdivisions (r) and (s) of section fifteen hundred eleven  of  this
     4  chapter. In addition, if the designation of an area as an empire zone is
     5  no  longer  in  effect  because  section  nine hundred sixty-nine of the
     6  general municipal law was not amended to extend the  effective  date  of
     7  such  designation  so that the designations of all empire zones pursuant
     8  to article eighteen-B of the general municipal  law  have  expired,  all
     9  references  to  empire zones in the provisions of this chapter listed in
    10  the previous sentence shall be  read  as  meaning  areas  designated  as
    11  empire  zones  on  the  day  immediately preceding the day on which such
    12  designation expired.
    13     § 13. Section 15 of the tax law, as added by section 2 of part  GG  of
    14  chapter  63  of  the laws of 2000, subdivision (b) as amended by section
    15  11, subdivisions (d) and (e) as amended by section 12, subdivisions  (f)
    16  and (g) as added and subdivision (h) as relettered by section 13 of part
    17  CC of chapter 85 of the laws of 2002, is amended to read as follows:
    18     § 15. QEZE credit for real property taxes.  (a) Allowance of credit. A
    19  taxpayer which is a qualified empire zone enterprise (QEZE), or which is
    20  a  sole  proprietor  of  a  QEZE or a member of a partnership which is a
    21  QEZE, and which is subject to tax under section one hundred  eighty-five
    22  or  article nine-A, twenty-two, thirty-two or thirty-three of this chap-
    23  ter, shall be allowed  a  credit  against  such  tax,  pursuant  to  the
    24  provisions  referenced  in  subdivision  [(f)]  (h) of this section, for
    25  eligible real property taxes.
    26    (b) Amount of credit. The amount of the credit shall  be  the  product
    27  (or pro rata share of the product, in the case of a member of a partner-
    28  ship)  of  (i)  the  benefit period factor, (ii) the employment increase
    29  factor and (iii) the eligible real property taxes paid [or incurred]  by
    30  the  QEZE during the taxable year. However, the amount of the credit may
    31  not exceed the credit limitation set forth in subdivision  (f)  of  this
    32  section.
    33    (c)  Benefit  period factor.  The benefit period factors are set forth
    34  in the following table:
 
    35  Taxable year of the benefit period:          Benefit period factor:
    36                 1 - 10                                 1.0
    37                   11                                    .8
    38                   12                                    .6
    39                   13                                    .4
    40                   14                                    .2
    41                   15                                     0
    42    (d) Employment increase factor. [The] (1) Except as provided in  para-
    43  graph  three  of  this subdivision, in the case of a business enterprise
    44  which is first certified under article eighteen-B of the general munici-
    45  pal law before April first, two thousand five, the  employment  increase
    46  factor is the amount, not to exceed 1.0, which is the greater of:
    47    [(1)]  (A)  the  excess  of the QEZE's employment number in the empire
    48  zones with respect to which the QEZE is certified  pursuant  to  article
    49  eighteen-B  of  the general municipal law for the taxable year, over the
    50  QEZE's test year employment number in such zones, divided by  such  test
    51  year employment number in such zones; or
    52    [(2)] (B) the excess of the QEZE's employment number in such zones for
    53  the  taxable  year  over  the QEZE's test year employment number in such
    54  zones, divided by 100.
        S. 996                             52                            A. 1926
 
     1    [(3)] (2) For purposes of subparagraph (A) of paragraph  one  of  this
     2  subdivision,  where  there is an excess as described in such [paragraph]
     3  subparagraph, and where the test year employment number  is  zero,  then
     4  the QEZE's employment increase factor shall be 1.0.
     5    (3)  In the case of a business enterprise which (A) is first certified
     6  under article eighteen-B of the general municipal law on or after  April
     7  first,  two  thousand five, or (B) is first certified under such article
     8  eighteen-B before April first, two thousand five and, at the time it  is
     9  first  certified, has a base period of zero years, or (C) is an electric
    10  generating facility which was first certified under such  article  eigh-
    11  teen-B  before April first, two thousand five, or (D) is first certified
    12  under such article eighteen-B before April first, two thousand five  and
    13  is  principally  engaged  in  the business of owning real property or of
    14  owning and managing real property, the employment increase factor is the
    15  amount, not to exceed 1.0, which is the excess of the QEZE's  employment
    16  number  in  the empire zones with respect to which the QEZE is certified
    17  pursuant to article eighteen-B of the  general  municipal  law  for  the
    18  taxable  year  over  the QEZE's employment number for the base period in
    19  such zones, divided by 100. Under this paragraph for purposes of  deter-
    20  mining  the QEZE's employment number in the empire zones with respect to
    21  which the QEZE is certified for the taxable year, such number shall  not
    22  include  individuals  employed  within  the state but outside such zones
    23  within the preceding sixty months by the QEZE or by a related person, as
    24  such term is defined in subdivision (g)  of  section  fourteen  of  this
    25  article, to the QEZE.
    26    (4)  For  purposes  of  this  subdivision,  where  the commissioner of
    27  economic development certifies that the QEZE has made an investment that
    28  qualifies as a qualified empire zone investment pursuant to section nine
    29  hundred fifty-nine of the general municipal law, then the QEZE's employ-
    30  ment increase factor shall be 1.0. In this situation, the QEZE shall  be
    31  required  to  submit  proof  to  the department that the commissioner of
    32  economic development has made such certification.
    33    (5) For the purposes of this subdivision, where  the  commissioner  of
    34  economic  development  certifies  that the QEZE is located within a flex
    35  acreage agribusiness opportunity  empire  zone  designated  pursuant  to
    36  subdivision  (g)  of  section  nine  hundred  fifty-eight of the general
    37  municipal law, then the QEZE's employment increase factor shall be  1.0.
    38  In  this  situation,  the  QEZE shall be required to submit proof to the
    39  department that the commissioner of economic development has  made  such
    40  certification.
    41    (e)  Eligible  real  property  taxes. The term "eligible real property
    42  taxes" means taxes imposed on real property which is owned by  the  QEZE
    43  and  located  in an empire zone with respect to which the QEZE is certi-
    44  fied pursuant to  article  eighteen-B  of  the  general  municipal  law,
    45  provided  such taxes are paid by the QEZE which is the owner of the real
    46  property and such taxes become a lien on  the  real  property  during  a
    47  taxable  year  in which the owner of the real property is both certified
    48  pursuant to article eighteen-B of the general municipal law and a quali-
    49  fied empire zone enterprise.    In  addition,  "eligible  real  property
    50  taxes"  shall  include  taxes  paid  by a QEZE which is a lessee of real
    51  property if the following conditions are satisfied: (1) the  taxes  must
    52  be  paid  by  the  lessee pursuant to explicit requirements in a written
    53  lease, (2) such taxes become a lien on the real property during a  taxa-
    54  ble  year  in  which  the  lessee of the real property is both certified
    55  pursuant to article eighteen-B of the general municipal law and a quali-
    56  fied empire zone enterprise, and (3) the lessee has made direct  payment
        S. 996                             53                            A. 1926
 
     1  of  such  taxes  to  the taxing authority and has received a receipt for
     2  such payment of taxes from the taxing authority. In addition,  the  term
     3  "eligible  real  property taxes" includes payments in lieu of taxes made
     4  by  the  QEZE  to the state, a municipal corporation or a public benefit
     5  corporation pursuant to a written agreement  entered  into  between  the
     6  QEZE  and  the  state,  municipal  corporation, or public benefit corpo-
     7  ration. Provided, however, a payment in lieu of taxes made by  the  QEZE
     8  pursuant  to a written agreement executed or amended on or after January
     9  first, two thousand one, shall not  constitute  eligible  real  property
    10  taxes  [unless such written agreement is approved by both the department
    11  of economic development and the office  of  real  property  services  as
    12  satisfying generally accepted and recognized norms and standards of real
    13  property  tax  appraisals]  in  any taxable year to the extent that such
    14  payment exceeds the product of (A) the greater  of  (i)  the  basis  for
    15  federal  income  tax purposes, determined on the later of January first,
    16  two thousand one or the  effective  date  of  the  QEZE's  certification
    17  pursuant  to  article  eighteen-B  of  the general municipal law of real
    18  property, including buildings and structural  components  of  buildings,
    19  owned  by the QEZE and located in empire zones with respect to which the
    20  QEZE is certified pursuant to such article  eighteen-B  of  the  general
    21  municipal law, or (ii) the basis for federal income tax purposes of such
    22  real  property  described in clause (i) of this subparagraph on the last
    23  day of the taxable year, and (B) the estimated effective full value  tax
    24  rate  within  the  county  in  which  such  property is located, as most
    25  recently reported to the commissioner by  the  secretary  of  the  state
    26  board of real property services, or his or her designee. The state board
    27  shall annually calculate estimated effective full value tax rates within
    28  each  county  for  this  purpose based upon the most current information
    29  available to it in relation to county, city, town,  village  and  school
    30  district taxes.
    31    (f)  The  credit  limitation  shall  be  the greater of the employment
    32  increase limitation or the capital investment limitation.
    33    (1) [The] (A) Except as provided in subparagraph  (B)  of  this  para-
    34  graph,  in  the  case  of a business enterprise which is first certified
    35  under article eighteen-B of  the  general  municipal  law  before  April
    36  first,  two  thousand  five, the employment increase limitation shall be
    37  the product of [(A)] (i) ten thousand dollars and [(B)] (ii) the  excess
    38  of  the  QEZE's  employment  number  in the empire zones with respect to
    39  which the QEZE is certified pursuant to article eighteen-B of the gener-
    40  al municipal law for the taxable year, over the QEZE's test year employ-
    41  ment number in such zones.
    42    (B) In the case of a business enterprise which (i) is first  certified
    43  under  article eighteen-B of the general municipal law on or after April
    44  first, two thousand five, or (ii) is first certified under such  article
    45  eighteen-B  before  April first, two thousand five and has a base period
    46  of zero years, or (iii) any electric generating facility which was first
    47  certified under such article eighteen-B before April first, two thousand
    48  five, or (iv) is first certified under such  article  eighteen-B  before
    49  April  first,  two thousand five and is principally engaged in the busi-
    50  ness of owning real property or of owning and  managing  real  property,
    51  the employment increase limitation shall be the product of (I) ten thou-
    52  sand  dollars and (II) the excess of the QEZE's employment number in the
    53  empire zones with respect to which the QEZE  is  certified  pursuant  to
    54  article  eighteen-B  of  the general municipal law for the taxable year,
    55  over the QEZE's base period employment number in such zones. Under  this
    56  subparagraph,  for  purposes of determining the QEZE's employment number
        S. 996                             54                            A. 1926
 
     1  in the empire zones with respect to which the QEZE is certified for  the
     2  taxable  year, such number shall not include individuals employed within
     3  the state but outside such zones within the preceding  sixty  months  by
     4  the  QEZE or by a related person, as such term is defined in subdivision
     5  (g) of section fourteen of this article, to the QEZE.
     6    (2) The capital investment limitation shall be the product of (A)  ten
     7  percent  of  the  greater  of  (i) the [cost or other] basis for federal
     8  income tax purposes, determined on the later of January first, two thou-
     9  sand one or the effective date of the QEZE's certification  pursuant  to
    10  article  eighteen-B  of  the  general  municipal  law, of real property,
    11  including buildings and structural components of buildings, owned by the
    12  QEZE and located in empire zones with  respect  to  which  the  QEZE  is
    13  certified  pursuant  to such article eighteen-B of the general municipal
    14  law, or (ii) the [cost or other] basis for federal income  tax  purposes
    15  of  such  real  property described in clause (i) of this subparagraph on
    16  the last day of the taxable  year,  and  (B)  the  greater  of  (i)  the
    17  percentage of such real property described in clause (i) of subparagraph
    18  (A)  of this paragraph which is physically occupied and used by the QEZE
    19  or by a related person to the QEZE, as  the  term  "related  person"  is
    20  defined  in  subparagraph  (c)  of  paragraph three of subsection (b) of
    21  section four hundred sixty-five of the internal revenue  code,  or  (ii)
    22  the  percentage  of  such [cost or other] basis which is attributable to
    23  the construction, expansion or rehabilitation of such  property,  rather
    24  than  the  acquisition  of  such  real  property, by the QEZE. Provided,
    25  however, if the percentage of such  [cost  or  other]  basis,  which  is
    26  attributable  to  the  construction, expansion or rehabilitation of such
    27  real property equals or  exceeds  fifty  percent,  then  the  percentage
    28  described  in clause (ii) of subparagraph (B) of this paragraph shall be
    29  deemed to be one hundred percent.
    30    (3) In the case of a QEZE whose eligible real property taxes are those
    31  taxes paid pursuant to the terms of  a  lease,  the  capital  investment
    32  limitation  shall  not  apply  and  the  credit  limitation shall be the
    33  employment increase limitation.
    34    (4) Notwithstanding any provision to the contrary, the credit  limita-
    35  tion  shall not be applicable to any business enterprise which is certi-
    36  fied pursuant to subdivision (m) of section nine hundred  fifty-nine  of
    37  the general municipal law.
    38    (g)  Credit  recapture.  Where  a  QEZE's eligible real property taxes
    39  which were the basis for the allowance of the credit provided for  under
    40  this  section  are  subsequently reduced as a result of a final order in
    41  any proceeding under article seven of the real property tax law or other
    42  provision of law, the taxpayer shall add back, in the  taxable  year  in
    43  which such final order is issued, the excess of (1) the amount of credit
    44  originally  allowed  for  a  taxable  year over (2) the amount of credit
    45  determined based upon the reduced eligible real property taxes. If  such
    46  final  order  reduces  real  property  taxes for more than one year, the
    47  taxpayer must determine how much of such reduction  is  attributable  to
    48  each year covered by such final order and calculate the amount of credit
    49  which  is required by this [subsection] subdivision to be recaptured for
    50  each year based on such reduction.
    51    (h) Definitions and cross-references. For definitions of terms used in
    52  this section see section fourteen of this article.   For application  of
    53  the credit provided for in this section, see the following provisions of
    54  this chapter:
    55    (1) Article 9: Section 187-j.
    56    (2) Article 9-A: Section 210: subdivision 27.
        S. 996                             55                            A. 1926
 
     1    [(2)] (3) Article 22: Section 606: subsections (i) and (bb).
     2    [(3)] (4) Article 32: Section 1456: subsection (o).
     3    [(4)] (5) Article 33: Section 1511: subdivision (r).
     4     § 14. Subparagraph 2 of paragraph (b) of subdivision 19 of section 210
     5  of  the  tax  law,  as amended by chapter 624 of the laws of 1990 and as
     6  further amended pursuant to section 15 of part GG of chapter 63  of  the
     7  laws of 2000, is amended to read as follows:
     8    (2)  "Targeted employee" means a New York resident who receives empire
     9  zone wages and who is (A) an eligible individual under the provisions of
    10  the targeted jobs tax credit (section fifty-one of the internal  revenue
    11  code), (B) eligible for benefits under the provisions of the [job train-
    12  ing  partnership]  workforce  investment  act  as a dislocated worker or
    13  low-income individual (P.L. [97-300] 105-220, as amended), (C) a recipi-
    14  ent of public assistance benefits or (D) an individual whose  income  is
    15  below [he] the most recently established poverty rate promulgated by the
    16  United  States  department  of  commerce,  or a member of a family whose
    17  family income is  below  the  most  recently  established  poverty  rate
    18  promulgated by the appropriate federal agency.
    19     §  15.  The second undesignated paragraph of paragraph (c) of subdivi-
    20  sion 19 of section 210 of the tax law, as amended  by  section  14-a  of
    21  part  CC  of  chapter  85  of  the  laws  of 2002, is amended to read as
    22  follows:
    23    The credit shall be allowed only with respect  to  the  first  taxable
    24  year  during which payments of empire zone wages are made and the condi-
    25  tions set forth in this paragraph are satisfied,  and  with  respect  to
    26  each of the four taxable years next following (but only, with respect to
    27  each  of  such  years,  if such conditions are satisfied), in accordance
    28  with paragraph (d) of this subdivision. Subsequent certifications of the
    29  taxpayer pursuant to article eighteen-B of the general municipal law, at
    30  the same or a different location in the same empire zone or zone  equiv-
    31  alent  area  or  at a location in a different empire zone or zone equiv-
    32  alent area, shall not extend the five taxable year  time  limitation  on
    33  the  allowance  of  the  credit  set  forth  in  the preceding sentence.
    34  Provided, further, however, that no credit shall be allowed with respect
    35  to any taxable year beginning more than four years following the taxable
    36  year in which designation as an empire zone expired  or  more  than  ten
    37  years  after the designation as a zone equivalent area.  Notwithstanding
    38  the previous sentence, a taxpayer which has been certified under article
    39  eighteen-B of the general municipal law in a zone equivalent area  prior
    40  to  June  thirteenth,  two thousand four shall be allowed a credit under
    41  this subdivision for a total of five consecutive taxable years, provided
    42  that payments of empire zone wages are made and the conditions set forth
    43  in this paragraph are satisfied in each of those years.
    44     § 16. Subparagraph 3 of paragraph (d) of subdivision 19 of section 210
    45  of the tax law, as added by section 15 of part CC of chapter 85  of  the
    46  laws of 2002, is amended to read as follows:
    47    (3)  For purposes of calculating the amount of the credit, individuals
    48  employed within an empire zone or zone equivalent area within the  imme-
    49  diately  preceding  sixty  months  by  a related person, as such term is
    50  defined in subparagraph (c) of paragraph  three  of  subsection  (b)  of
    51  section  four hundred sixty-five of the internal revenue code, shall not
    52  be included in the average number of individuals described  in  subpara-
    53  graph  one  or  subparagraph  two of this paragraph, unless such related
    54  person was never allowed a credit under this subdivision with respect to
    55  such employees.   For the purposes  of  this  subparagraph,  a  "related
    56  person" shall include an entity which would have qualified as a "related
        S. 996                             56                            A. 1926
 
     1  person" to the taxpayer if it had not been dissolved, liquidated, merged
     2  with another entity or otherwise ceased to exist or operate.
     3     §  17.  Paragraph (a) of subdivision 20 of section 210 of the tax law,
     4  as amended by chapter 708 of the laws of 1993  and  as  further  amended
     5  pursuant  to section 15 of part GG of chapter 63 of the laws of 2000, is
     6  amended to read as follows:
     7    (a) A taxpayer shall be allowed a credit against the  tax  imposed  by
     8  this  article.  The  amount  of the credit shall be equal to twenty-five
     9  percent of the sum of the following investments and  contributions  made
    10  during  the  taxable  year and certified by the commissioner of economic
    11  development:  (1) for taxable years beginning before January first,  two
    12  thousand  five,  qualified  investments made in, or contributions in the
    13  form of donations made to, one  or  more  empire  zone  capital  [corpo-
    14  rations] credits established pursuant to section nine hundred sixty-four
    15  of  the general municipal law prior to January first, two-thousand five,
    16  (2) qualified investments in certified zone businesses which during  the
    17  twelve  month  period  immediately  preceding  the  month  in which such
    18  investment is made employed full-time within the state an average number
    19  of individuals, excluding general executive  officers,  of  two  hundred
    20  fifty  or  fewer,  computed  pursuant  to the provisions of subparagraph
    21  three of paragraph (b) of subdivision nineteen of this  section,  except
    22  for  investments  made  by  or  on  behalf  of an owner of the business,
    23  including, but not limited to, a stockholder, partner or  sole  proprie-
    24  tor,  or any related person, as defined in subparagraph (C) of paragraph
    25  three of subsection (b) of section four hundred sixty-five of the inter-
    26  nal revenue code, and (3) contributions of money to  community  develop-
    27  ment  projects as defined in regulations promulgated by the commissioner
    28  of economic development. "Qualified investments" means the  contribution
    29  of  property  to  a  corporation  in exchange for original issue capital
    30  stock or other ownership interest, the contribution  of  property  to  a
    31  partnership  in exchange for an interest in the partnership, and similar
    32  contributions in the case of a business entity not in corporate or part-
    33  nership form in exchange for an ownership interest in such  entity.  The
    34  total  amount of credit allowable to a taxpayer under this provision for
    35  all years, taken in the aggregate, shall not exceed three hundred  thou-
    36  sand  dollars,  and  shall  not exceed one hundred thousand dollars with
    37  respect to the  investments  and  contributions  described  in  each  of
    38  subparagraphs one, two and three of this paragraph.
    39     §  18.  The  opening  paragraph  of subparagraph (B) of paragraph 2 of
    40  subsection (k) of section 606 of the tax law, as amended by chapter  170
    41  of  the  laws  of 1994, and as further amended pursuant to section 15 of
    42  part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
    43  follows:
    44    "Targeted employee" means a New York resident who receives empire zone
    45  wages  and who is (i) an eligible individual under the provisions of the
    46  targeted jobs tax credit (section  fifty-one  of  the  internal  revenue
    47  code),  (ii)  eligible  for  benefits  under  the provisions of the [job
    48  training partnership] workforce investment act as a dislocated worker or
    49  low-income individual (P.L.  [97-300]  105-220,  as  amended),  (iii)  a
    50  recipient  of  public  assistance  benefits  or (iv) an individual whose
    51  income is below the most recently established poverty  rate  promulgated
    52  by  the  United  States  department of commerce, or a member of a family
    53  whose family income is below the most recently established poverty  rate
    54  promulgated by the appropriate federal agency.
        S. 996                             57                            A. 1926
 
     1     §  19.  The second undesignated paragraph of paragraph 3 of subsection
     2  (k) of section 606 of the tax law, as amended by section 15-a of part CC
     3  of chapter 85 of the laws of 2002, is amended to read as follows:
     4    The  credit  shall  be  allowed only with respect to the first taxable
     5  year during which payments of empire zone wages are made and the  condi-
     6  tions  set  forth  in  this paragraph are satisfied, and with respect to
     7  each of the four taxable years next following (but only, with respect to
     8  each of such years, if such conditions  are  satisfied),  in  accordance
     9  with paragraph four of this subsection. Subsequent certifications of the
    10  taxpayer pursuant to article eighteen-B of the general municipal law, at
    11  the  same or a different location in the same empire zone or zone equiv-
    12  alent area or at a location in a different empire zone  or  zone  equiv-
    13  alent  area,  shall  not extend the five taxable year time limitation on
    14  the allowance of  the  credit  set  forth  in  the  preceding  sentence.
    15  Provided, further, however, that no credit shall be allowed with respect
    16  to any taxable year beginning more than four years following the taxable
    17  year  in  which  designation  as an empire zone expired or more than ten
    18  years after the designation as a zone equivalent area.   Notwithstanding
    19  the  previous  sentence, a taxpayer who has been certified under article
    20  eighteen-B of the general municipal law in a zone equivalent area  prior
    21  to  June  thirteenth,  two thousand four shall be allowed a credit under
    22  this subsection for a total of five consecutive taxable years,  provided
    23  that payments of empire zone wages are made and the conditions set forth
    24  in this paragraph are satisfied in each of those years.
    25     §  20.  Subparagraph (iii) of paragraph 4 of subsection (k) of section
    26  606 of the tax law, as added by section 16 of part CC of chapter  85  of
    27  the laws of 2002, is amended to read as follows:
    28    (iii)  For  purposes of calculating the amount of the credit, individ-
    29  uals employed within an empire zone or zone equivalent area  within  the
    30  immediately  preceding sixty months by a related person, as such term is
    31  defined in subparagraph (c) of paragraph  three  of  subsection  (b)  of
    32  section  four hundred sixty-five of the internal revenue code, shall not
    33  be included in the average number of individuals described  in  subpara-
    34  graph  (i)  or  subparagraph (ii) of this paragraph, unless such related
    35  person was never allowed a credit under this subsection with respect  to
    36  such  employees.   For purposes of this subparagraph, a "related person"
    37  shall include an entity which would have qualified as a "related person"
    38  to the taxpayer if it had not been dissolved,  liquidated,  merged  with
    39  another entity or otherwise ceased to exist or operate.
    40     §  21. Paragraph 1 of subsection (l) of section 606 of the tax law, as
    41  amended by chapter 708 of the laws  of  1993  and  subparagraph  (A)  as
    42  further  amended  pursuant to section 15 of part GG of chapter 63 of the
    43  laws of 2000, is amended to read as follows:
    44    (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
    45  this  article.  The  amount  of the credit shall be equal to twenty-five
    46  percent of the sum of the following investments and  contributions  made
    47  during  the  taxable  year and certified by the commissioner of economic
    48  development: (A) for taxable years beginning before January  first,  two
    49  thousand  five,  qualified  investments made in, or contributions in the
    50  form of donations made to, one  or  more  empire  zone  capital  [corpo-
    51  rations] credits established pursuant to section nine hundred sixty-four
    52  of  the general municipal law prior to January first, two thousand five,
    53  (B) qualified investments in certified zone businesses which during  the
    54  twelve  month  period  immediately  preceding  the  month  in which such
    55  investment is made employed full-time within the state an average number
    56  of individuals of two hundred fifty or fewer, computed pursuant  to  the
        S. 996                             58                            A. 1926
 
     1  provisions  of  subparagraph  (C)  of paragraph two of subsection (k) of
     2  this section, except for investments made by or on behalf of an owner of
     3  the business including, but not limited to, a  stockholder,  partner  or
     4  sole  proprietor,  or any related person, as defined in subparagraph (C)
     5  of paragraph three of subsection (b) of section four hundred  sixty-five
     6  of the internal revenue code, and (C) contributions of money to communi-
     7  ty  development  projects  as  defined in regulations promulgated by the
     8  commissioner of economic development. "Qualified investments" means  the
     9  contribution of property to a corporation in exchange for original issue
    10  capital  stock or other ownership interest, the contribution of property
    11  to a partnership in exchange for an interest  in  the  partnership,  and
    12  similar  contributions in the case of a business entity not in corporate
    13  or partnership form in exchange for an ownership interest in such  enti-
    14  ty.  The  total  amount  of  credit  allowable  to a taxpayer under this
    15  provision for all years, taken in the aggregate, shall not exceed  three
    16  hundred  thousand  dollars,  and  shall  not exceed one hundred thousand
    17  dollars with respect to the investments and contributions  described  in
    18  each of subparagraphs (A), (B) and (C) of this paragraph.
    19     § 22. Paragraph 1 of subsection (d) of section 1456 of the tax law, as
    20  amended by chapter 708 of the laws of 1993 and as further amended pursu-
    21  ant  to  section  15  of  part  GG of chapter 63 of the laws of 2000, is
    22  amended to read as follows:
    23    (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
    24  this  article.  The  amount  of the credit shall be equal to twenty-five
    25  percent of the sum of the following investments and  contributions  made
    26  during  the  taxable  year and certified by the commissioner of economic
    27  development: (A) for taxable years beginning before January  first,  two
    28  thousand  five,  qualified  investments made in, or contributions in the
    29  form of donations made to, one  or  more  empire  zone  capital  [corpo-
    30  rations] credits established pursuant to section nine hundred sixty-four
    31  of  the general municipal law prior to January first, two thousand five,
    32  (B) qualified investments in certified zone businesses which during  the
    33  twelve  month  period  immediately  preceding  the  month  in which such
    34  investment is made employed full-time within the state an average number
    35  of individuals, excluding general executive  officers,  of  two  hundred
    36  fifty  or fewer, computed pursuant to the provisions of subparagraph (C)
    37  of paragraph two of subsection (e) of this section, except  for  invest-
    38  ments  made  by or on behalf of an owner of the business, including, but
    39  not limited to, a  stockholder,  partner  or  sole  proprietor,  or  any
    40  related  person,  as  defined  in subparagraph (C) of paragraph three of
    41  subsection (b) of section four hundred sixty-five of the internal reven-
    42  ue code,  and  (C)  contributions  of  money  to  community  development
    43  projects  as  defined  in regulations promulgated by the commissioner of
    44  economic development. "Qualified investments" means the contribution  of
    45  property  to  a corporation in exchange for original issue capital stock
    46  or other ownership interest, the contribution of property to a  partner-
    47  ship  in  exchange  for  an  interest  in  the  partnership, and similar
    48  contributions in the case of a business entity not in corporate or part-
    49  nership form in exchange for an ownership interest in such  entity.  The
    50  total  amount of credit allowable to a taxpayer under this provision for
    51  all years, taken in the aggregate, shall not exceed three hundred  thou-
    52  sand  dollars,  and  shall  not exceed one hundred thousand dollars with
    53  respect to the  investments  and  contributions  described  in  each  of
    54  subparagraphs (A), (B) and (C) of this paragraph.
    55     §  23.  Subparagraph  (B)  of paragraph 2 of subsection (e) of section
    56  1456 of the tax law, as amended by chapter 170 of the laws of  1994  and
        S. 996                             59                            A. 1926
 
     1  as  further  amended  pursuant to section 15 of part GG of chapter 63 of
     2  the laws of 2000, is amended to read as follows:
     3    (B)  "Targeted employee" means a New York resident who receives empire
     4  zone wages and who is (i) an eligible individual under the provisions of
     5  the targeted jobs tax credit (section fifty-one of the internal  revenue
     6  code),  (ii)  eligible  for  benefits  under  the provisions of the [job
     7  training partnership] workforce investment act as a dislocated worker or
     8  low-income individual (P.L.  [97-300]  105-220,  as  amended),  (iii)  a
     9  recipient  of  public  assistance  benefits  or (iv) an individual whose
    10  income is below the most recently established poverty  rate  promulgated
    11  by  the  United  States  department of commerce, or a member of a family
    12  whose family income is below the most recently established poverty  rate
    13  promulgated by the appropriate federal agency.
    14    An individual who satisfies the criteria set forth in clause (i), (ii)
    15  or  (iv)  at  the  time of initial employment in the job with respect to
    16  which the credit is claimed, or who satisfies the criterion set forth in
    17  clause (iii) at such time or at any time within the previous two  years,
    18  shall  be  a  targeted  employee so long as such individual continues to
    19  receive empire zone wages.
    20     § 24. The second undesignated paragraph of paragraph 3  of  subsection
    21  (e)  of  section 1456 of the tax law, as amended by section 16-a of part
    22  CC of chapter 85 of the laws of 2002, is amended to read as follows:
    23    The credit shall be allowed only with respect  to  the  first  taxable
    24  year  during which payments of empire zone wages are made and the condi-
    25  tions set forth in this paragraph are satisfied,  and  with  respect  to
    26  each of the four taxable years next following (but only, with respect to
    27  each  of  such  years,  if such conditions are satisfied), in accordance
    28  with paragraph four of this subsection. Subsequent certifications of the
    29  taxpayer pursuant to article eighteen-B of the general municipal law, at
    30  the same or a different location in the same empire zone or zone  equiv-
    31  alent  area  or  at a location in a different empire zone or zone equiv-
    32  alent area, shall not extend the five taxable year  time  limitation  on
    33  the  allowance  of  the  credit  set  forth  in  the preceding sentence.
    34  Provided, further, however, that no credit shall be allowed with respect
    35  to any taxable year beginning more than four years following the taxable
    36  year in which designation as an empire zone expired  or  more  than  ten
    37  years  after the designation as a zone equivalent area.  Notwithstanding
    38  the previous sentence, a taxpayer which has been certified under article
    39  eighteen-B of the general municipal law in a zone equivalent area  prior
    40  to  June  thirteenth,  two thousand four shall be allowed a credit under
    41  this subdivision for a total of five consecutive taxable years, provided
    42  that payments of empire zone wages are made and the conditions set forth
    43  in this subsection are satisfied in each of those years.
    44     § 25. Subparagraph (C) of paragraph 4 of  subsection  (e)  of  section
    45  1456  of  the tax law, as added by section 16-b of part CC of chapter 85
    46  of the laws of 2002, is amended to read as follows:
    47    (C) For purposes of calculating the amount of the credit,  individuals
    48  employed  within an empire zone or zone equivalent area within the imme-
    49  diately preceding sixty months by a related  person,  as  such  term  is
    50  defined  in  subparagraph  (c)  of  paragraph three of subsection (b) of
    51  section four hundred sixty-five of the internal revenue code, shall  not
    52  be  included  in the average number of individuals described in subpara-
    53  graph (A) or subparagraph (B) of this  paragraph,  unless  such  related
    54  person  was never allowed a credit under this subsection with respect to
    55  such employees.   For the purposes  of  this  subparagraph,  a  "related
    56  person" shall include an entity which would have qualified as a "related
        S. 996                             60                            A. 1926
 
     1  person" to the taxpayer if it had not been dissolved, liquidated, merged
     2  with another entity or otherwise ceased to exist or operate.
     3     §  26.  Subparagraph  (B) of paragraph 2 of subdivision (g) of section
     4  1511 of the tax law, as amended by chapter 170 of the laws of  1994  and
     5  as  further  amended  pursuant to section 15 of part GG of chapter 63 of
     6  the laws of 2000, is amended to read as follows:
     7    (B) "Targeted employee" means a New York resident who receives  empire
     8  zone  wages and who is (i) an eligible individual under the provision of
     9  the targeted jobs tax credit (section fifty-one of the internal  revenue
    10  code),  (ii)  eligible  for  benefits  under  the provisions of the [job
    11  training partnership] workforce investment act as a dislocated worker or
    12  a low-income individual (P.L. [97-300] 105-220,  as  amended),  (iii)  a
    13  recipient  of  public  assistance  benefits  or (iv) an individual whose
    14  income is below the most recently established poverty  rate  promulgated
    15  by  the  United  States  department of commerce, or a member of a family
    16  whose family income is below the most recently established poverty  rate
    17  promulgated by the appropriate federal agency.
    18    An individual who satisfies the criteria set forth in clause (i), (ii)
    19  or  (iv)  at  the  time of initial employment in the job with respect to
    20  which the credit is claimed, or who satisfies the criterion set forth in
    21  clause (iii) at such time or at any time within the previous two  years,
    22  shall  be  a  targeted  employee so long as such individual continues to
    23  receive empire zone wages.
    24     § 27. The second undesignated paragraph of paragraph 3 of  subdivision
    25  (g)  of  section 1511 of the tax law, as amended by section 16-c of part
    26  CC of chapter 85 of the laws of 2002, is amended to read as follows:
    27    The credit shall be allowed only with respect  to  the  first  taxable
    28  year  during which payments of empire zone wages are made and the condi-
    29  tions set forth in this paragraph are satisfied,  and  with  respect  to
    30  each of the four taxable years next following (but only, with respect to
    31  each  of  such  years,  if such conditions are satisfied), in accordance
    32  with paragraph four of this subdivision.  Subsequent  certifications  of
    33  the  taxpayer  pursuant  to  article eighteen-B of the general municipal
    34  law, at the same or a different location in the same empire zone or zone
    35  equivalent area or at a location in a  different  empire  zone  or  zone
    36  equivalent  area, shall not extend the five taxable year time limitation
    37  on the allowance of the credit set  forth  in  the  preceding  sentence.
    38  Provided, further, however, that no credit shall be allowed with respect
    39  to any taxable year beginning more than four years following the taxable
    40  year  in  which  designation  as an empire zone expired or more than ten
    41  years after the designation as a zone equivalent area.   Notwithstanding
    42  the previous sentence, a taxpayer which has been certified under article
    43  eighteen-B  of the general municipal law in a zone equivalent area prior
    44  to June thirteenth, two thousand four shall be allowed  a  credit  under
    45  this subdivision for a total of five consecutive taxable years, provided
    46  that payments of empire zone wages are made and the conditions set forth
    47  in this subdivision are satisfied in each of those years.
    48     §  28.  Subparagraph  (C) of paragraph 4 of subdivision (g) of section
    49  1511 of the tax law, as added by section 16-d of part CC of  chapter  85
    50  of the laws of 2002, is amended to read as follows:
    51    (C)  For purposes of calculating the amount of the credit, individuals
    52  employed within an empire zone or zone equivalent area within the  imme-
    53  diately  preceding  sixty  months  by  a related person, as such term is
    54  defined in subparagraph (c) of paragraph  three  of  subsection  (b)  of
    55  section  four hundred sixty-five of the internal revenue code, shall not
    56  be included in the average number of individuals described  in  subpara-
        S. 996                             61                            A. 1926
 
     1  graph  (A)  or  subparagraph  (B) of this paragraph, unless such related
     2  person was never allowed a credit under this subdivision with respect to
     3  such employees.   For the purposes  of  this  subparagraph,  a  "related
     4  person" shall include an entity which would have qualified as a "related
     5  person" to the taxpayer if it had not been dissolved, liquidated, merged
     6  with another entity or otherwise ceased to exist or operate.
     7     §  29.  Paragraph 1 of subdivision (h) of section 1511 of the tax law,
     8  as amended by chapter 708 of the laws of 1993 and  subparagraph  (A)  as
     9  further  amended  pursuant to section 15 of part GG of chapter 63 of the
    10  laws of 2000, is amended to read as follows:
    11    (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
    12  this  article.  The  amount  of the credit shall be equal to twenty-five
    13  percent of the sum of the following investments and  contributions  made
    14  during  the  taxable  year and certified by the commissioner of economic
    15  development: (A) for taxable years beginning before January  first,  two
    16  thousand  five,  qualified  investments made in, or contributions in the
    17  form of donations made to, one  or  more  empire  zone  capital  [corpo-
    18  rations] credits established pursuant to section nine hundred sixty-four
    19  of  the general municipal law prior to January first, two thousand five,
    20  (B) qualified investments in certified zone businesses which during  the
    21  twelve  month  period  immediately  preceding  the  month  in which such
    22  investment is made employed full-time within the state an average number
    23  of individuals, excluding general executive  officers,  of  two  hundred
    24  fifty  or fewer, computed pursuant to the provisions of subparagraph (C)
    25  of paragraph two of subsection (g) of this section, except  for  invest-
    26  ments  made  by or on behalf of an owner of the business, including, but
    27  not limited to, a  stockholder,  partner  or  sole  proprietor,  or  any
    28  related  person,  as  defined  in subparagraph (C) of paragraph three of
    29  subsection (b) of section four hundred sixty-five of the internal reven-
    30  ue code,  and  (C)  contributions  of  money  to  community  development
    31  projects  as  defined  in regulations promulgated by the commissioner of
    32  economic development. "Qualified investments" means the contribution  of
    33  property  to  a corporation in exchange for original issue capital stock
    34  or other ownership interest, the contribution of property to a  partner-
    35  ship  in  exchange  for  an  interest  in  the  partnership, and similar
    36  contributions in the case of a business entity not in corporate or part-
    37  nership form in exchange for an ownership interest in such entity.   The
    38  total  amount of credit allowable to a taxpayer under this provision for
    39  all years, taken in the aggregate, shall not exceed three hundred  thou-
    40  sand  dollars,  and  shall  not exceed one hundred thousand dollars with
    41  respect to the  investments  and  contributions  described  in  each  of
    42  subparagraphs (A), (B) and (C) of this paragraph.
    43     § 30. Notwithstanding the amendments made by sections twelve and thir-
    44  teen  of  this act, any business enterprise certified under article 18-B
    45  of the general municipal law prior to April 1, 2005 and which (i) has  a
    46  base  period of zero years or (ii) is an electric generating facility or
    47  (iii) is principally engaged in the business of owning real property  or
    48  of  owning  and managing real property shall be entitled to apply to the
    49  commissioner of economic development for  permission  to  determine  its
    50  status as a QEZE and calculate its QEZE real property tax credit and its
    51  QEZE  tax reduction credit for taxable years beginning on or after Janu-
    52  ary 1, 2005 in the same manner as other business  enterprises  certified
    53  under  article 18-B of the general municipal law prior to April 1, 2005.
    54  The commissioner of economic development  shall  promulgate  rules  that
    55  shall  set  forth  the  procedures for business enterprises to follow to
    56  apply for such permission and the standards  to  be  used  to  determine
        S. 996                             62                            A. 1926
 
     1  whether  or  not  such  permission shall be granted. The commissioner of
     2  economic development shall  notify  the  commissioner  of  taxation  and
     3  finance  of all applications received for such permission and the dispo-
     4  sition of all such applications.
     5     § 31. This act shall take effect immediately; provided, however, that:
     6    (i)  sections  twelve,  thirteen,  fifteen,  nineteen, twenty-four and
     7  twenty-seven of this act shall apply to taxable years  beginning  on  or
     8  after January 1, 2005;
     9    (ii)  the  amendment  made to subdivision (g) of section 14 of the tax
    10  law concerning "related person", other than the addition  of  the  words
    11  "the state within", by section twelve of this act, and sections sixteen,
    12  twenty,  twenty-five and twenty-eight of this act shall apply to taxable
    13  years beginning on or after January 1, 2002; and
    14    (iii) the amendments made to section 14 of  the  tax  law  by  section
    15  twelve of this act for sales and use tax purposes shall apply to employ-
    16  ment tests to determine eligibility for QEZE benefits which are measured
    17  by  taxable  years  beginning  on  or after January 1, 2005 and to sales
    18  made, uses occurring and services rendered on or after the first day  of
    19  the  first  such  taxable year beginning on or after January 1, 2005, in
    20  accordance with applicable transition provisions in  sections  1106  and
    21  1217 of the tax law.
    22     § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    23  sion,  section  or  part  of  this act shall be adjudged by any court of
    24  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    25  impair,  or  invalidate  the remainder thereof, but shall be confined in
    26  its operation to the clause, sentence, paragraph,  subdivision,  section
    27  or part thereof directly involved in the controversy in which such judg-
    28  ment shall have been rendered. It is hereby declared to be the intent of
    29  the  legislature  that  this  act  would  have been enacted even if such
    30  invalid provisions had not been included herein.
    31     § 3. This act shall take effect immediately  provided,  however,  that
    32  the  applicable effective date of Parts A through F of this act shall be
    33  as specifically set forth in the last section of such Parts.