|
See Text
A08131 Summary:BILL NO A08131
SAME AS Same as S 4845-B
SPONSOR Weprin (MS)
COSPNSR Bing, Castro, Christensen, Kellner, Maisel, Rosenthal, Titone, Wright
MLTSPNSR Abbate, Brennan, Clark, Cook, Eddington, Greene, Jaffee, Schimel
Amd S1201-a, Tax L
Authorizes cities of one million or more to provide a biotechnology credit to
be taken against the general corporation tax, unincorporated business tax and
banking corporation tax imposed by such city.
A08131 Actions:BILL NO A08131
05/05/2009 referred to ways and means
06/17/2009 reported referred to rules
06/17/2009 reported
06/17/2009 rules report cal.439
06/17/2009 ordered to third reading rules cal.439
06/17/2009 passed assembly
06/17/2009 delivered to senate
06/18/2009 REFERRED TO RULES
07/16/2009 SUBSTITUTED FOR S4845B
07/16/2009 3RD READING CAL.645
07/16/2009 PASSED SENATE
07/16/2009 RETURNED TO ASSEMBLY
09/04/2009 delivered to governor
09/16/2009 signed chap.453
A08131 Votes:BILL: A08131 DATE: 06/17/2009 MOTION: YEA/NAY: 140/000
Abbate Y Cahill Y Englebr Y Hooper Y Maisel Y Powell Y Skartad Y
Alessi Y Calhoun Y Errigo Y Hoyt Y Markey Y Pretlow Y Spano Y
Alfano Y Camara Y Espaill Y Hyer-Sp Y Mayerso Y Quinn Y Stirpe Y
Amedore Y Canestr Y Farrell Y Jacobs Y McDonou Y Rabbitt Y Sweeney Y
Arroyo ER Carrozz ER Fields Y Jaffee Y McEneny Y Raia Y Tedisco Y
Aubry Y Castro Y Finch Y Jeffrie Y McKevit Y Ramos Y Thiele Y
Bacalle Y Christe Y Fitzpat Y John Y Meng Y Reilich Y Titone Y
Ball Y Clark Y Gabrysz Y Jordan Y Miller ER Reilly Y Titus Y
Barclay Y Colton Y Galef Y Kavanag Y Millman Y Rive J Y Tobacco Y
Barra Y Conte Y Gantt Y Kellner Y Molinar Y Rive N Y Towns Y
Barron ER Cook Y Gianari Y Kolb Y Morelle Y Rive PM Y Townsen Y
Benedet Y Corwin Y Gibson Y Koon Y Nolan ER Robinso ER Walker Y
Benjami Y Crespo Y Giglio Y Lancman Y Oaks Y Rosenth Y Weinste Y
Bing Y Crouch Y Glick Y Latimer Y O'Donne Y Russell ER Weisenb Y
Boyland ER Cusick Y Gordon Y Lavine Y O'Mara Y Saladin Y Weprin Y
Boyle Y Cymbrow Y Gottfri Y Lentol Y Ortiz Y Sayward Y Wright Y
Bradley Y DelMont Y Gunther Y Lifton Y Parment Y Scarbor ER Zebrows Y
Brennan Y DenDekk Y Hawley Y Lope PD Y Paulin Y Schimel Y Mr Spkr Y
Brodsky Y Destito Y Hayes Y Lope VJ Y Peoples Y Schimmi Y
Brook-K Y Dinowit Y Heastie Y Lupardo Y Peralta Y Schroed Y
Burling Y Duprey Y Hevesi Y Magee Y Perry Y Scozzaf Y
Butler Y Eddingt Y Hikind Y Magnare Y Pheffer Y Seminer ER
A08131 Memo:BILL NUMBER:A8131
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing any city having
a population of one million or more to provide a biotechnology credit
against the general corporation tax, unincorporated business tax and
banking corporation tax of such city
SUMMARY OF SPECIFIC PROVISIONS:
This bill would amend Section 1201-a of the tax law by adding a new
subdivision (d). In Section 1 of the bill, paragraph 1 of new subdivi-
sion (d)would allow New York City to create, by local law, a credit
against the City's general corporation, unincorporated business and
banking taxes, substantially identical to New York State's Qualified
Emerging Technologies Facilities, Operations and Training Credit, as
provided in subdivision 12-g of Section 210 of the tax law. New York
City's credit, termed the "Biotechnology Credit" would be limited to
companies in biotechnology as defined in Section 3102-e(b)(5) of the
public authorities law.
While this credit is substantially identical to the New York State's
Qualified Emerging Technologies, Facilities, Operations and Training
State credit, this credit differs from the State's credit in several
ways.
Paragraph 2 establishes a two-tiered credit. In the first tier, eligible
firms will receive 100% of the credit available, up to $250,000 per
calendar year. Firms will be eligible for this tier of the credit if
firms increase their employment level by 5% more than their employment
level in their base year. Firms that are newly established, newly relo-
cated, or did not have any employees in the year prior to which the
credit is claimed are not subject to the base year employment increase,
are eligible this tier of the credit. In the second tier, firms who
increase their employment level by less than 5% of their base year
employment, the maximum amount of the credit will be 50% of the maximum
amount of the credit, not to exceed $125,000. Firms in academic incuba-
tors are not eligible for the 50 percent credit. Base year employment is
defined as the average number of individuals employed full-time by the
taxpayer in the city in the year preceding the first calendar year in
which the credit is claimed.
Paragraph 3 provides that the maximum amount of tax credits in any year
is $3 million, to be allocated among tax payers on a pro rata basis by
the New York City Department of Finance.
Paragraph 4 provides that the New York City Department of Finance shall
establish rules related to the application process and due dates.
Paragraph 5 provides that such a local law may provide a credit for up
to three consecutive years, but may not apply to taxable years starting
before January 1,2010 or after January 1,2013.
Section 2 of the bill provides that the act would take effect immediate-
ly.
STATEMENT IN SUPPORT:
9 world class research institutions, 26 medical centers, 175 hospitals,
and an unparalleled talent pool, New York City has a natural advantage
in the bioscience industry, yet it lags behind other cities, such as
Boston and San Diego, in the commercialization of new technologies.
The New York City Biotechnology credit is modeled after, and designed to
work with, New York State's Qualified Emerging Technologies Facilities,
Operations and Training Credit. Firms will be provided with a refundable
credit, for three types of expenses: qualifying expenses related to
acquiring research and development property, certain expenses related to
training employees, and other research and development expenses. The
credit is limited to small firms engaged in research and development
that meet New York State standards as qualified emerging technology
companies. Such qualified emerging technology companies will be eligible
for the credit for up to 3 years 1. The credit will help a young firm
equip a lab, train technicians, and fund access to high tech equipment
that they do not own.
The credit will differ from New York State's in that it will be focused
on growing firms. The allowable expenses and the credit based on those
expenses will be the same as for the New York State credit for firms
that increase their employment by at least 5 percent, compared to a base
year. Those that do not grow will still be eligible for the credit, but
at half the rate. Growing firms will have their credit capped at a
maximum of $250,000 per year and those that do not make the 5 percent
threshold will have a maximum credit of 125,000.
Under this legislation, the total credits for a given year are capped at
$3 million. If credits in a given year exceed the cap they will be allo-
cated on a prorated basis by the New York City Department of Finance.
The credit would be for three consecutive years starting in January 2010
and ending in December 2012.
The credit is part of a policy to create an industry with sufficient
size and density that it becomes a good place to make a career in
biotech and to locate the kind of ancillary services that the industry
needs. This credit works in conjunction with the development of labora-
tory space at the East River Science Park and in BioBAT at the Brooklyn
Army Terminal. These spaces, along with existing facilities, will
provide approximately 2 million square feet of laboratory space in the
City.
1 Firms that are located in academic incubators and relocate outside the
incubator will be eligible for an additional year of the credit.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
The credit is capped at $3 million per year. New York City Council
Finance Division estimates that without a cap on total credits, the
credit would cost approximately $2 million in City fiscal year 2011 and
rise to approximately $3 million by City fiscal year 2013.
EFFECTIVE DATE:
This act shall take effect immediately.
|
