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A06009 Summary:

BILL NOA06009
 
SAME ASNo Same As
 
SPONSORRules
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Eliminates entirely the NYC STAR PIT rate reduction benefit for taxpayers with incomes above $500,000 (Part B); converts current STAR delinquency/offset program into a tax clearance program by rejecting offset and making taxpayers pay the tax liability (Part C); relates to recouping improperly granted STAR exemptions 3 year look back (Part E); allows homeowners who registered for the STAR exemption with the department of taxation and finance to receive certain exemptions (Part F); creates a real property tax relief credit for owners and renters (Part G); makes permanent the limitation on charitable contribution deductions for high income New York state and New York city personal income taxpayers (Part H); amends the personal income tax and MTA mobility tax statutes for technical changes (Part I); requires commercial production tax credit economic impact report (Part J); amends the excelsior tax credit by making entertainment industry an eligible business provided that taxpayer must meet threshold requirements (Part K); reforms the investment tax credit provided for master tapes (Part L); expands the youth tax credit and renames it to the urban youth jobs program tax credit (Part M); reduces the net income tax on small businesses for those making below $390,000 (Part N); creates the employee training incentive program tax credit through DED for provider approved program (Part O); levies taxes on wireless telecommunications businesses (Part P); imposes sales tax refund requirements on article 9 taxpayers unless such refund is paid to consumers and is separately stated (Part Q); extends brownfield cleanup program for 10 years (Part R); combines the department of state biennial information statement and tax return filings (Part S); amends corporate tax reform statute for technical changes (Part T); extends the wine tasting sales and use tax exemption to other alcoholic beverages when offered for fee at producer's premise (Part U); imposes local sales tax on prepaid wireless based on retail location (Part V); expands sales tax collection requirements for marketplace providers, making providers subject to sales tax collection requirement on behalf of out of state sellers (Part X); closes certain sales and use tax avoidance strategies (Part Y); exempts solar power purchase agreements from state and local sales tax (Part Z); allows petroleum business tax refunds for farm use of highway diesel motor fuel (Part AA); amends the estate tax to implement technical changes and making certain provisions permanent (Part BB); enhances motor fuel tax enforcement by creating wholesaler registrations (Part CC); makes warrantless wage garnishment permanent without filing with county clerk (Part DD); extends the video lottery gaming vendor's capital awards program for one year (Part MM); extends certain tax rates and certain simulcasting provisions for one year (Part NN); expands electronic gaming offerings at video lottery gaming facilities (Part OO); extends the term of the reorganization board of the New York Racing Association, Inc. for an additional year (Part PP); implements New York city corporate tax reform (Part QQ); makes technical changes to alternative fuel refuel property tax credit (Part RR); makes NYC circuit breaker of 2014 permanent with enhanced benefit (Part SS); enhances college tuition credit with additional credit if claimed American Opportunity Tax Credit for those making $40,000 or less (Part TT); makes resident PIT taxpayer's all source income eligible to compute QEZE tax reduction credit (Part UU); exempts vessels worth $230,000 or more from sales and compensating use tax (Part VV); relates to the empire music production credit (Part WW); relates to the MAT mobility tax library exemption (Part XX); extends the Montecello capital award (Part ZZ); relates to the jockey fund (Part AAA); relates to the NYC and lower Manhattan REAP, energy saving sales tax extender (Part BBB).
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A06009 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6009
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 9, 2015
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES  --  read  once and referred to the
          Committee on Ways and Means
 
        AN ACT intentionally omitted (Part A); to amend the state  finance  law,
          the  tax  law  and the administrative code of the city of New York, in
          relation to the New York city personal income tax rates (Part  B);  to
          amend  the real property tax law and section 3 of part B of chapter 59
          of the laws of 2012 amending the real property tax law and the tax law
          relating to the suspension of STAR exemptions  of  property  owned  by
          persons  with  outstanding tax liabilities, in relation to the suspen-
          sion of STAR exemptions of property owned by persons with  outstanding
          tax liabilities (Part C); intentionally omitted (Part D); to amend the
          real  property  tax  law, in relation to establishing a state-adminis-
          tered recoupment provision to the STAR exemption program (Part E);  to
          amend   the  state  finance  law,  in  relation  to  making  technical
          corrections to the school tax relief fund;  and  to  provide  one-time
          relief  to  STAR  registrants who failed to file timely STAR exemption
          applications (Part F); to amend the tax law, in relation to  the  real
          property  tax  relief  credit  (Part  G); to amend the tax law and the
          administrative code of the city of New York, in relation to making the
          limitation on charitable contribution deductions for certain taxpayers
          permanent (Part H); to amend the tax law, the administrative  code  of
          the  city of New York and the labor law, in relation to making certain
          technical corrections (Part I); to amend the tax law, in relation to a
          report regarding the empire state commercial  production  tax  credit;
          and  to  repeal section 9 of part V of chapter 62 of the laws of 2006,
          amending  the  tax  law  relating  to  the  empire  state   commercial
          production tax credit, relating thereto (Part J); to amend the econom-
          ic  development  law,  in relation to the eligibility of entertainment
          companies for the excelsior jobs program (Part K); to  amend  the  tax
          law, in relation to costs includible in the investment credit base for
          the  investment  tax credit on masters for films, television shows and
          commercials (Part L); to amend the labor  law  and  the  tax  law,  in
          relation  to a program to provide tax incentives for employers employ-
          ing at risk youth (Part M); to amend the tax law, in relation  to  the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD20007-01-5

        A. 6009                             2
 
          business  income base rate (Part N); to amend the economic development
          law and the tax law, in relation to  establishing  a  tax  credit  for
          employers  who  procure  skills  training  for  employees necessary to
          cultivate  a  talented  workforce  (Part  O); to amend the tax law, in
          relation to imposing tax  on  wireless  telecommunications  businesses
          pursuant  to sections 184 and 184-a of such law (Part P); to amend the
          tax law, in relation to corporation tax refunds or credits  (Part  Q);
          to amend part H of chapter 1 of the laws of 2003, amending the tax law
          relating  to  brownfield  redevelopment tax credits, remediated brown-
          field credit for real property taxes for qualified sites and  environ-
          mental  remediation  insurance credits, in relation to tax credits for
          certain sites; to amend the public authorities law  and  the  environ-
          mental  conservation law, in relation to the environmental restoration
          program (Part R); to amend the business corporation law,  the  limited
          liability  company  law,  the  partnership  law  and  the  tax law, in
          relation to the biennial statements filed with the secretary of  state
          (Part  S);  to amend the tax law, in relation to making corrections to
          the corporate tax reform provisions; and repealing certain  provisions
          of  such  law  relating  thereto  (Part  T);  to amend the tax law, in
          relation to exempting certain  items  of  tangible  personal  property
          furnished  to  customers  by  certain  cider producers, breweries, and
          distilleries at tastings (Part U); to amend the tax law,  in  relation
          to  the  imposition  of  the sales and compensating use tax on prepaid
          mobile calling services (Part V); intentionally omitted (Part  W);  to
          amend  the  tax  law,  in  relation to requiring marketplace providers
          collect sales tax (Part X); to amend the tax law, in relation to clos-
          ing certain sales and compensating use tax avoidance  strategies  with
          regard  to  taxes imposed by and pursuant to the authority of articles
          28 and 29 of the tax law (Part Y); to amend the tax law,  in  relation
          to  exempting  electricity  provided by certain sources from the sales
          tax imposed by article 28 of the tax law and omitting  such  exemption
          from  the taxes imposed pursuant to the authority of article 29 of the
          tax law, unless a locality elects otherwise; and  to  repeal  subdivi-
          sions  (n)  and  (p)  of  section  1210  of  such  law relating to tax
          exemptions imposed by resolution in cities having a population of  one
          million or more persons (Part Z); to amend the tax law, in relation to
          allowing  a  reimbursement  of  the petroleum business tax for highway
          diesel motor fuel used in farm production (Part AA); to amend the  tax
          law,  in  relation  to the computation of the estate tax (Part BB); to
          amend the tax law, in relation to requiring wholesalers of motor  fuel
          to  register and file returns (Part CC); to amend part Q of chapter 59
          of the laws of 2013 amending the tax law relating to serving an income
          execution with respect to individual  tax  debtors  without  filing  a
          warrant,  in  relation  to the effectiveness thereof (Part DD); inten-
          tionally omitted (Part EE); intentionally omitted  (Part  FF);  inten-
          tionally  omitted  (Part  GG); intentionally omitted (Part HH); inten-
          tionally  omitted  (Part  II);  intentionally   omitted   (Part   JJ);
          intentionally  omitted  (Part KK); intentionally omitted (Part LL); to
          amend the tax law, in relation to  capital  awards  to  vendor  tracks
          (Part MM); to amend the racing, pari-mutuel wagering and breeding law,
          in  relation  to  licenses  for simulcast facilities, sums relating to
          track simulcast, simulcast of out-of-state thoroughbred races,  simul-
          casting  of races run by out-of-state harness tracks and distributions
          of wagers; to amend chapter 281 of  the  laws  of  1994  amending  the
          racing,  pari-mutuel wagering and breeding law and other laws relating
          to simulcasting and chapter 346 of  the  laws  of  1990  amending  the

        A. 6009                             3
 
          racing,  pari-mutuel wagering and breeding law and other laws relating
          to simulcasting and the imposition of certain taxes,  in  relation  to
          extending  certain  provisions thereof; and to amend the racing, pari-
          mutuel  wagering  and  breeding  law, in relation to extending certain
          provisions thereof (Part NN); to amend the tax law and the penal  law,
          in  relation  to  video lottery gaming (Part OO); to amend the racing,
          pari-mutuel wagering and breeding law, in  relation  to  a  franchised
          corporation (Part PP); to amend the administrative code of the city of
          New  York,  in relation to the taxation of business corporations (Part
          QQ); to amend the tax law, in  relation  to  the  credit  for  certain
          alternative  fuel  vehicle  refueling  property  and  electric vehicle
          recharging property (Part RR); to amend the tax law,  in  relation  to
          the  enhanced  real  property tax circuit breaker credit; and to amend
          part K of chapter 59 of the laws of 2014, amending the tax law, relat-
          ing to establishing an enhanced real property tax circuit breaker,  in
          relation  to  making such provisions permanent (Part SS); to amend the
          tax law, in relation to a higher education tuition  tax  credit  (Part
          TT);  to  amend the tax law, in relation to QEZE tax reduction credits
          (Part UU); to amend the tax law, in relation to a  tax  exemption  for
          certain  receipts relating to vessels (Part VV); to amend the tax law,
          in relation to the creation of the empire state music production cred-
          it (Part WW); to amend the tax law, in relation to  the  exemption  of
          libraries from the imposition of the metropolitan commuter transporta-
          tion  mobility  tax  (Part  XX);  to amend the tax law, in relation to
          vendor fees at vendor tracks (Part YY); to amend the racing,  pari-mu-
          tuel wagering and breeding law, in relation to eligibility for the New
          York  Jockey Injury Compensation Fund, Inc. benefits (Part ZZ); and to
          amend the tax law, in relation to the temporary exemption  from  sales
          and  use  taxes for premises used for commercial office space in Lower
          Manhattan; and to amend part C of chapter 2 of the laws of 2005 amend-
          ing the tax law relating to exemptions from sales and  use  taxes,  in
          relation to the effectiveness thereof (Subpart A); to amend the gener-
          al  city  law  and the administrative code of the city of New York, in
          relation to extending the relocation and employment assistance program
          and the Lower Manhattan relocation and employment  assistance  program
          (Subpart B); to amend the general city law and the administrative code
          of  the city of New York, in relation to extending the special rebates
          and discounts provided pursuant to the energy cost savings program and
          the Lower Manhattan energy program  (Subpart  C);  and  to  amend  the
          administrative code of the city of New York, in relation to the amount
          of special reduction allowed (Subpart D) (Part AAA)
 
          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 2015-2016
     3  state  fiscal  year.  Each  component  is wholly contained within a Part
     4  identified as Parts A through AAA. The effective date for  each  partic-
     5  ular  provision  contained  within  such  Part  is set forth in the last
     6  section of such Part. Any provision in any section  contained  within  a
     7  Part,  including the effective date of the Part, which makes a reference
     8  to a section "of this act", when used in connection with that particular
     9  component, shall be deemed  to  mean  and  refer  to  the  corresponding

        A. 6009                             4
 
     1  section of the Part in which it is found. Section three of this act sets
     2  forth the general effective date of this act.
 
     3                                   PART A
 
     4                            Intentionally Omitted
 
     5                                   PART B
 
     6    Section  1. Subdivision 1 of section 54-f of the state finance law, as
     7  amended by section 1 of part EE of chapter 57 of the laws  of  2010,  is
     8  amended to read as follows:
     9    1. Except as otherwise provided by law, the provisions of this section
    10  shall  be utilized by the state to calculate the annual amount due to be
    11  paid to the city of New York by the state to reimburse such city for tax
    12  receipts foregone (a) as a result of [a] chapter three  hundred  eighty-
    13  nine  of  the  laws  of  nineteen hundred ninety-seven [that reduced the
    14  rates of tax imposed pursuant to authority granted under  section  thir-
    15  teen hundred one of the tax law and that created a new "state school tax
    16  reduction  credit" against liabilities imposed pursuant to the authority
    17  granted the city by such section  and  other  statutes  authorizing  the
    18  imposition  of a personal income tax on the residents of such city], and
    19  (b) as a result of the tax rate adjustments made by [a]  chapter  fifty-
    20  seven  of  the  laws of two thousand ten and by a chapter of the laws of
    21  two thousand fifteen, which amended this subdivision.
    22    § 2. Paragraphs 1, 2 and 3 of subsection (a) of section  1304  of  the
    23  tax law, as amended by section 2 of part EE of chapter 57 of the laws of
    24  2010, are amended to read as follows:
    25    (1)  Resident  married  individuals  filing joint returns and resident
    26  surviving spouses. The tax under this section for each taxable  year  on
    27  the  city  taxable  income of every city resident married individual who
    28  makes a single return jointly with his or her  spouse  under  subsection
    29  (b)  of  section  thirteen  hundred  six of this article and on the city
    30  taxable income of every city resident surviving spouse shall  be  deter-
    31  mined in accordance with the following tables:
 
    32    (A) For taxable years beginning after two thousand fourteen:
    33  If the city taxable income is:         The tax is:
    34  Not over $21,600                       2.55% of the city taxable income
    35  Over $21,600 but not                   $551 plus 3.1% of excess
    36  over $45,000                             over $21,600
    37  Over $45,000 but not                   $1,276 plus 3.15% of excess
    38  over $90,000                             over $45,000
    39  Over $90,000 but not                   $2,694 plus 3.2% of excess
    40  over $500,000                            over $90,000
    41  Over $500,000                          $16,803 plus 3.4% of excess
    42                                           over $500,000
 
    43    (B) For taxable years beginning after two thousand nine and before two
    44  thousand fifteen:
    45  If the city taxable income is:         The tax is:
    46  Not over $21,600                       2.55% of the city taxable income
    47  Over $21,600 but not                   $551 plus 3.1% of excess
    48  over $45,000                             over $21,600

        A. 6009                             5
 
     1  Over $45,000 but not                   $1,276 plus 3.15% of excess
     2  over $90,000                             over $45,000
     3  Over $90,000 but not                   $2,694 plus 3.2% of excess
     4  over $500,000                            over $90,000
     5  Over $500,000                          $15,814 plus 3.4% of excess
     6                                           over $500,000
 
     7    [(B)  For taxable years beginning in two thousand one and two thousand
     8  two and for taxable years beginning after two thousand five  and  before
     9  two thousand ten:

    10  If the city taxable income is:         The tax is:
    11  Not over $21,600                       2.55% of the city taxable income
    12  Over $21,600 but not                   $551 plus 3.1% of excess
    13  over $45,000                             over $21,600
    14  Over $45,000 but not                   $1,276 plus 3.15% of excess
    15  over $90,000                             over $45,000
    16  Over $90,000                           $2,694 plus 3.2% of excess
    17                                           over $90,000]
 
    18    (2)  Resident heads of households. The tax under this section for each
    19  taxable year on the city taxable income of every city resident head of a
    20  household shall be determined in accordance with the following tables:
    21    (A) For taxable years beginning after two thousand fourteen:
 
    22  If the city taxable income is:         The tax is:
    23  Not over $14,400                       2.55% of the city taxable income
    24  Over $14,400 but not                   $367 plus 3.1% of excess
    25  over $30,000                             over $14,400
    26  Over $30,000 but not                   $851 plus 3.15% of excess
    27  over $60,000                             over $30,000
    28  Over $60,000 but not                   $1,796 plus 3.2% of excess
    29  over $500,000                            over $60,000
    30  Over $500,000                          $16,869 plus 3.4% of excess
    31                                           over $500,000
 
    32    (B) For taxable years beginning after two thousand nine and before two
    33  thousand fifteen:
 
    34  If the city taxable income is:         The tax is:
    35  Not over $14,400                       2.55% of the city taxable income
    36  Over $14,400 but not                   $367 plus 3.1% of excess
    37  over $30,000                             over $14,400
    38  Over $30,000 but not                   $851 plus 3.15% of excess
    39  over $60,000                             over $30,000
    40  Over $60,000 but not                   $1,796 plus 3.2% of excess
    41  over $500,000                            over $60,000
    42  Over $500,000                          $15,876 plus 3.4% of excess
    43                                           Over $500,000
 
    44    [(B) For taxable years beginning in two thousand one and two  thousand
    45  two  and  for taxable years beginning after two thousand five and before
    46  two thousand ten:

    47  If the city taxable income is:         The tax is:
    48  Not over $14,400                       2.55% of the city taxable income

        A. 6009                             6

     1  Over $14,400 but not                   $367 plus 3.1% of excess
     2  over $30,000                             over $14,400
     3  Over $30,000 but not                   $851 plus 3.15% of excess
     4  over $60,000                             over $30,000
     5  Over $60,000                           $1,796 plus 3.2% of excess
     6                                           over $60,000]
 
     7    (3)  Resident  unmarried  individuals,  resident  married  individuals
     8  filing separate returns and resident estates and trusts. The  tax  under
     9  this  section  for each taxable year on the city taxable income of every
    10  city resident individual who is not a city resident  married  individual
    11  who  makes  a  single  return  jointly  with  his  or  her  spouse under
    12  subsection (b) of section thirteen hundred six of this article or a city
    13  resident head of household or a city resident surviving spouse,  and  on
    14  the city taxable income of every city resident estate and trust shall be
    15  determined in accordance with the following tables:
 
    16  (A) For taxable years beginning after two thousand fourteen:
 
    17  If the city taxable income is:         The tax is:
    18  Not over $12,000                       2.55% of the city taxable income
    19  Over $12,000 but not                   $306 plus 3.1% of excess
    20  over $25,000                             over $12,000
    21  Over $25,000 but not                   $709 plus 3.15% of excess
    22  over $50,000                             over $25,000
    23  Over $50,000 but not                   $1,497 plus 3.2% of excess
    24  over $500,000                          over $50,000
    25  Over $500,000                          $16,891 plus 3.4%
    26                                         of excess over $500,000
    27    (B) For taxable years beginning after two thousand nine and before two
    28  thousand fifteen:
 
    29  If the city taxable income is:         The tax is:
    30  Not over $12,000                       2.55% of the city taxable income
    31  Over $12,000 but not                   $306 plus 3.1% of excess
    32  over $25,000                             over $12,000
    33  Over $25,000 but not                   $709 plus 3.15% of excess
    34  over $50,000                             over $25,000
    35  Over $50,000 but not                   $1,497 plus 3.2% of excess
    36  over $500,000                          over $50,000
    37  Over $500,000                          $15,897 plus 3.4%
    38                                         of excess over $500,000
    39    [(B)  For taxable years beginning in two thousand one and two thousand
    40  two and for taxable years beginning after two thousand five  and  before
    41  two thousand ten:

    42  If the city taxable income is:         The tax is:
    43  Not over $12,000                       2.55% of the city taxable income
    44  Over $12,000 but not                   $306 plus 3.1% of excess
    45  over $25,000                             over $12,000
    46  Over $25,000 but not                   $709 plus 3.15% of excess
    47  over $50,000                             over $25,000
    48  Over $50,000                           $1,497 plus 3.2% of excess
    49                                           over $50,000]

        A. 6009                             7
 
     1    §  3.  Paragraphs  1, 2 and 3 of subdivision (a) of section 11-1701 of
     2  the administrative code of the city of New York, as amended by section 3
     3  of part EE of chapter 57 of the laws of 2010, are  amended  to  read  as
     4  follows:
     5    (1)  Resident  married  individuals  filing joint returns and resident
     6  surviving spouses. The tax under this section for each taxable  year  on
     7  the  city  taxable  income of every city resident married individual who
     8  makes a single return jointly with his or her spouse  under  subdivision
     9  (b) of section 11-1751 of this chapter and on the city taxable income of
    10  every  city  resident surviving spouse shall be determined in accordance
    11  with the following tables:
 
    12  (A) For taxable years beginning after two thousand fourteen:
 
    13  If the city taxable income is:         The tax is:
    14  Not over $21,600                       2.55% of the city taxable income
    15  Over $21,600 but not                   $551 plus 3.1% of excess
    16  over $45,000                            over $21,600
    17  Over $45,000 but not                   $1,276 plus 3.15% of excess
    18  over $90,000                            over $45,000
    19  Over $90,000 but not                   $2,694 plus 3.2% of excess
    20  over $500,000                           over $90,000
    21  Over $500,000                          $16,803 plus 3.4% of excess
    22                                          over $500,000
    23    (B) For taxable years beginning after two thousand nine and before two
    24  thousand fifteen:
 
    25  If the city taxable income is:         The tax is:
    26  Not over $21,600                       2.55% of the city taxable income
    27  Over $21,600 but not                   $551 plus 3.1% of excess
    28  over $45,000                            over $21,600
    29  Over $45,000 but not                   $1,276 plus 3.15% of excess
    30  over $90,000                            over $45,000
    31  Over $90,000 but not                   $2,694 plus 3.2% of excess
    32  over $500,000                           over $90,000
    33  Over $500,000                          $15,814 plus 3.4% of excess
    34                                          over $500,000
    35    [(B) For taxable years beginning in two thousand one and two  thousand
    36  two  and  for taxable years beginning after two thousand five and before
    37  two thousand ten:

    38  If the city taxable income is:         The tax is:
    39  Not over $21,600                       2.55% of the city taxable income
    40  Over $21,600 but not                   $551 plus 3.1% of excess
    41  over $45,000                            over $21,600
    42  Over $45,000 but not                   $1,276 plus 3.15% of excess
    43  over $90,000                            over $45,000
    44  Over $90,000                           $2,694 plus 3.2% of excess
    45                                          over $90,000]
 
    46    (2) Resident heads of households. The tax under this section for  each
    47  taxable year on the city taxable income of every city resident head of a
    48  household shall be determined in accordance with the following tables:
    49    (A) For taxable years beginning after two thousand fourteen:

        A. 6009                             8
 
     1  If the city taxable income is:         The tax is:
     2  Not over $14,400                       2.55% of the city taxable income
     3  Over $14,400 but not                   $367 plus 3.1% of excess
     4  over $30,000                            over $14,400
     5  Over $30,000 but not                   $851 plus 3.15% of excess
     6  over $60,000                            over $30,000
     7  Over $60,000 but not                   $1,796 plus 3.2% of excess
     8  over $500,000                           over $60,000
     9  Over $500,000                          $16,869 plus 3.4% of excess
    10                                          over $500,000
 
    11    (B) For taxable years beginning after two thousand nine and before two
    12  thousand fifteen:
 
    13  If the city taxable income is:         The tax is:
    14  Not over $14,400                       2.55% of the city taxable income
    15  Over $14,400 but not                   $367 plus 3.1% of excess
    16  over $30,000                            over $14,400
    17  Over $30,000 but not                   $851 plus 3.15% of excess
    18  over $60,000                            over $30,000
    19  Over $60,000 but not                   $1,796 plus 3.2% of excess
    20  over $500,000                           over $60,000
    21  Over $500,000                          $15,876 plus 3.4% of excess
    22                                          over $500,000
 
    23    [(B)  For taxable years beginning in two thousand one and two thousand
    24  two and for taxable years beginning after two thousand five  and  before
    25  two thousand ten:

    26  If the city taxable income is:         The tax is:
    27  Not over $14,400                       2.55% of the city taxable income
    28  Over $14,400 but not                   $367 plus 3.1% of excess
    29  over $30,000                            over $14,400
    30  Over $30,000 but not                   $851 plus 3.15% of excess
    31  over $60,000                            over $30,000
    32  Over $60,000                           $1,796
    33                                         plus 3.2% of excess
    34                                          over $60,000]
 
    35    (3)  Resident  unmarried  individuals,  resident  married  individuals
    36  filing separate returns and resident estates and trusts. The  tax  under
    37  this  section  for each taxable year on the city taxable income of every
    38  city resident individual who is not a married  individual  who  makes  a
    39  single  return  jointly  with his or her spouse under subdivision (b) of
    40  section 11-1751 of this chapter or a city resident head of  a  household
    41  or  a  city resident surviving spouse, and on the city taxable income of
    42  every city resident estate and trust shall be determined  in  accordance
    43  with the following tables:
 
    44  (A) For taxable years beginning after two thousand fourteen:
 
    45  If the city taxable income is:         The tax is:
    46  Not over $12,000                       2.55% of the city taxable income
    47  Over $12,000 but not                   $306 plus 3.1% of excess
    48  over $25,000                            over $12,000
    49  Over $25,000 but not                   $709 plus 3.15% of excess

        A. 6009                             9

     1  over $50,000                            over $25,000
     2  Over $50,000 but not                   $1,497 plus 3.2% of excess
     3  over $500,000                           over $50,000
     4  Over $500,000                          $16,891 plus 3.4% of excess
     5                                          over $500,000
 
     6    (B) For taxable years beginning after two thousand nine and before two
     7  thousand fifteen:
 
     8  If the city taxable income is:         The tax is:
     9  Not over $12,000                       2.55% of the city taxable income
    10  Over $12,000 but not                   $306 plus 3.1% of excess
    11  over $25,000                            over $12,000
    12  Over $25,000 but not                   $709 plus 3.15% of excess
    13  over $50,000                            over $25,000
    14  Over $50,000 but not                   $1,497 plus 3.2% of excess
    15  over $500,000                           over $50,000
    16  Over $500,000                          $15,897 plus 3.4% of excess
    17                                          over $500,000
 
    18    [(B)  For taxable years beginning in two thousand one and two thousand
    19  two and for taxable years beginning after two thousand five  and  before
    20  two thousand ten:

    21  If the city taxable income is:         The tax is:
    22  Not over $12,000                       2.55% of the city taxable income
    23  Over $12,000 but not                   $306 plus 3.1% of excess
    24  over $25,000                            over $12,000
    25  Over $25,000 but not                   $709 plus 3.15% of excess
    26  over $50,000                            over $25,000
    27  Over $50,000                           $1,497 plus 3.2% of excess
    28                                          over $50,000]
    29    §  4. Notwithstanding any provision of law to the contrary, the method
    30  of determining the amount to be deducted  and  withheld  from  wages  on
    31  account  of  taxes imposed by or pursuant to the authority of article 30
    32  of the tax law in connection with the implementation of  the  provisions
    33  of  this  act  shall be prescribed by regulations of the commissioner of
    34  taxation and finance with due consideration to the effect such withhold-
    35  ing tables and methods would have on the receipt and amount of  revenue.
    36  The  commissioner  of taxation and finance shall adjust such withholding
    37  tables and methods in regard to taxable  years  beginning  in  2015  and
    38  after in such manner as to result, so far as practicable, in withholding
    39  from  an  employee's wages an amount substantially equivalent to the tax
    40  reasonably estimated to be due for such taxable years as a result of the
    41  provisions of this act. Provided, however, for tax year 2015  the  with-
    42  holding  tables  shall  reflect  as  accurately  as practicable the full
    43  amount of tax year 2015 liability so that such  amount  is  withheld  by
    44  December  31,  2015. Any such regulations to implement a change in with-
    45  holding tables and methods for tax year 2015 shall be adopted and effec-
    46  tive as soon as practicable and the commissioner may  adopt  such  regu-
    47  lations  on  an emergency basis notwithstanding anything to the contrary
    48  in section 202 of the state administrative procedure  act.  In  carrying
    49  out  his  or  her  duties  and  responsibilities under this section, the
    50  commissioner of taxation and finance may accompany such  a  rule  making
    51  procedure with a similar procedure with respect to the taxes required to
    52  be  deducted  and  withheld by local laws imposing taxes pursuant to the

        A. 6009                            10
 
     1  authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
     2  of  any  other  law  in  relation  to  such  a procedure to the contrary
     3  notwithstanding.
     4    § 5. 1. Notwithstanding any provision of law to the contrary, no addi-
     5  tion  to  tax  shall  be imposed for failure to pay the estimated tax in
     6  subsection (c) of section 685 of the tax  law  and  subdivision  (c)  of
     7  section  11-1785 of the administrative code of the city of New York with
     8  respect to any underpayment of a required installment due prior  to,  or
     9  within thirty days of, the effective date of this act to the extent that
    10  such  underpayment  was  created  or increased by the amendments made by
    11  this act, provided, however, that the taxpayer remits the amount of  any
    12  underpayment  prior  to  or with his or her next quarterly estimated tax
    13  payment.
    14    2. The commissioner of taxation and finance shall take steps to publi-
    15  cize the necessary adjustments to  estimated  tax  and,  to  the  extent
    16  reasonably possible, to inform the taxpayer of the tax liability changes
    17  made by this act.
    18    § 6. This act shall take effect immediately.
 
    19                                   PART C
 
    20    Section  1. The opening paragraph of paragraph (f) of subdivision 3 of
    21  section 425 of the real property tax law, as added by section 1 of  part
    22  B of chapter 59 of  the laws of 2012, is amended to read as follows:
    23    Compliance  with  state tax obligations. [The] A property shall not be
    24  eligible [property's eligibility] for the STAR exemption [must  not  be]
    25  if the property's eligibility has been suspended pursuant to section one
    26  hundred  seventy-one-y  of  the  tax  law  due to the past-due state tax
    27  liabilities of one or more of its owners. Notwithstanding any  provision
    28  of  law  to  the  contrary,  where  a  property's eligibility for a STAR
    29  exemption has been suspended pursuant to  such  section,  the  following
    30  provisions shall be applicable:
    31    § 2. Intentionally omitted.
    32    §  3.  Section 3 of part B of chapter 59 of the laws of 2012, amending
    33  the real property tax law and the tax law relating to suspension of STAR
    34  exemptions of property owned by persons  with  outstanding  tax  liabil-
    35  ities, is amended to read as follows:
    36    §  3.  This  act shall take effect immediately [and shall apply to the
    37  administration of the STAR exemption authorized by section  425  of  the
    38  real  property tax law for the 2013-2014, 2014-2015 and 2015-2016 school
    39  years].
    40    § 4. This act shall take effect immediately.
 
    41                                   PART D
    42                            Intentionally omitted
 
    43                                   PART E
 
    44    Section 1. Section 425 of the real property  tax  law  is  amended  by
    45  adding a new subdivision 15 to read as follows:
    46    15.  Recoupment  of exemptions by commissioner. (a) Generally.  If the
    47  commissioner should determine, based upon data collected under the  STAR
    48  registration  program,  that property improperly received the basic STAR
    49  exemption on one or more of the  six  preceding  assessment  rolls,  the
    50  commissioner   shall  treat  the  exemption  as  an  improperly  granted

        A. 6009                            11
 
     1  exemption and proceed  in  the  manner  provided  by  this  subdivision;
     2  provided  that  final  assessment  rolls  that were filed prior to April
     3  first, two thousand eleven shall not be subject  to  the  provisions  of
     4  this subdivision.
     5    (b)  Procedure.  The  tax savings attributable to each such improperly
     6  granted exemption shall be collected  from  the  owners  whose  property
     7  improperly  received the exemption for the applicable year with interest
     8  as specified in this subdivision, by utilizing any of the procedures for
     9  collection, levy, and lien of personal income tax set forth  in  article
    10  twenty-two  of  the  tax  law,  any other relevant procedures referenced
    11  within the provisions of that article, and  any  other  law  as  may  be
    12  applicable,  so  far  as practicable when recouping the exemption amount
    13  pursuant to this subdivision, except that:
    14    (i) prior  to  directing  that  an  improperly  granted  exemption  be
    15  recouped  pursuant  to  this subdivision, the commissioner shall provide
    16  the owners with notice and an opportunity to show the commissioner  that
    17  the  exemption  was  properly  granted. If the owners fail to respond to
    18  such notice within forty-five days from the mailing thereof, or if their
    19  response does not show  to  the  commissioner's  satisfaction  that  the
    20  eligibility  requirements were in fact satisfied, the commissioner shall
    21  proceed with the recoupment  of  the  improperly  granted  exemption  in
    22  accordance with the provisions of this subdivision; and
    23    (ii)  notwithstanding  the  provisions of paragraph (b) of subdivision
    24  six of this section, neither an  assessor  nor  a  board  of  assessment
    25  review  has  the authority to consider an objection to the recoupment of
    26  an exemption pursuant to this subdivision, nor may  such  an  action  be
    27  reviewed  in  a proceeding to review an assessment pursuant to title one
    28  or one-A of article seven of this chapter. Such an action  may  only  be
    29  challenged  before  the department. If an owner is dissatisfied with the
    30  department's final determination, the owner  may  appeal  that  determi-
    31  nation to the board in a form and manner to be prescribed by the commis-
    32  sioner. Such appeal shall be filed within forty-five days from the issu-
    33  ance  of  the department's final determination. If dissatisfied with the
    34  board's determination, the owner may seek judicial review thereof pursu-
    35  ant to article seventy-eight of the civil practice law  and  rules.  The
    36  owner  shall  otherwise  have  no right to challenge such final determi-
    37  nation in a court action, administrative proceeding, including  but  not
    38  limited to an administrative proceeding pursuant to article forty of the
    39  tax  law,  or any other form of legal recourse against the commissioner,
    40  the department, the board, the assessor,  or  any  other  person,  state
    41  agency, or local government.
    42    (c)  The  amount to be recouped for each improperly received exemption
    43  shall have interest added at the rate prescribed by section nine hundred
    44  twenty-four-a of this chapter or such other law as may be applicable for
    45  each month or portion thereof since the levy of school taxes  upon  such
    46  assessment roll.
    47    (d)  In  the  event  that  a revocation of prior exemption pursuant to
    48  subdivision twelve of this section or a voluntary  renunciation  of  the
    49  STAR exemption pursuant to section four hundred ninety-six of this chap-
    50  ter has occurred, the provisions of this subdivision shall not be appli-
    51  cable to the exemptions so revoked or voluntarily renounced.
    52    § 2. This act shall take effect immediately.
 
    53                                   PART F

        A. 6009                            12
 
     1    Section  1.  Subdivision 3 of section 97-rrr of the state finance law,
     2  as amended by section 8 of part F of chapter 109 of the laws of 2006, is
     3  amended to read as follows:
     4    3.  The  monies in such fund shall be appropriated for school property
     5  tax exemptions [and local property tax rebates] granted pursuant to  the
     6  real  property tax law [and the tax law] and payable pursuant to section
     7  [thirty-six hundred nine] thirty-six hundred  nine-e  of  the  education
     8  law,  and  for  payments  to  the  city  of New York pursuant to section
     9  fifty-four-f of this chapter[,  and  pursuant  to  section  one  hundred
    10  seventy-eight of the tax law].
    11    §  2.  One-time relief for unenrolled registrants. (1) As used in this
    12  section, the term "unenrolled registrant" means a person  who  purchased
    13  or  otherwise acquired a primary residence after the taxable status date
    14  for the 2013 assessment roll and who registered that property  with  the
    15  commissioner  of  taxation and finance in accordance with subdivision 14
    16  of section 425 of the real property tax law on  or  before  the  taxable
    17  status  date  for  the  2014  assessment roll, but who failed to file an
    18  application for the STAR exemption for that property in accordance  with
    19  subdivision  6  of section 425 of the real property tax law on or before
    20  the taxable status date for the 2014 assessment roll.
    21    (2) If the commissioner of taxation and  finance  is  informed  on  or
    22  before  October  1,  2015,  that  an  owner of property is an unenrolled
    23  registrant, and if such commissioner finds that  the  unenrolled  regis-
    24  trant's  property would have qualified for the STAR exemption authorized
    25  by section 425 of the real property tax law on the 2014 assessment  roll
    26  if  a completed application had been filed with the appropriate assessor
    27  in a timely manner, then the commissioner of  taxation  and  finance  is
    28  authorized  to  remit  directly  to the property owner or owners the tax
    29  savings that the STAR exemption would have yielded if the STAR exemption
    30  had been granted on  the  2014  assessment  roll.  When  remitting  such
    31  amount,  the commissioner of taxation and finance shall advise the prop-
    32  erty owner or owners that such payment is subject to  recovery  by  such
    33  commissioner if the property owner or owners do not apply for and quali-
    34  fy  for  the STAR exemption on the 2015 assessment roll, or if it should
    35  otherwise be found to have been erroneously remitted  to  such  property
    36  owner or owners.
    37    (3)  The amounts payable under this act shall be paid from the account
    38  established for the payment of STAR benefits to late registrants  pursu-
    39  ant  to subparagraph (iii) of paragraph (a) of subdivision 14 of section
    40  425 of the real property tax law.
    41    (4) The provisions of part 6 of article 22 of the tax law relating  to
    42  the  collection  of a tax imposed by such article that has been assessed
    43  and remains unpaid shall apply to the recovery authorized by subdivision
    44  two of this section of a payment found to  have  been  erroneously  made
    45  pursuant  to  this  act to an ineligible property owner or owners in the
    46  same manner and with the same force and effect as  if  the  language  of
    47  such  article  had been incorporated in full into this act except to the
    48  extent that any provision of such article is either inconsistent with  a
    49  provision  of  this  act or is not relevant to this act as determined by
    50  the commissioner of taxation and finance. Furthermore, for  purposes  of
    51  applying  the  provisions  of part 6 of article 22 of the tax law, where
    52  the terms "tax" and "taxes" appear in such article, such terms shall  be
    53  construed  to  mean  "a payment or payments erroneously made pursuant to
    54  this act to an ineligible property owner or owners".
    55    § 3. This act shall take effect immediately.

        A. 6009                            13
 
     1                                   PART G
 
     2    Section  1.  Section  606  of  the  tax law is amended by adding a new
     3  subsection (e-3) to read as follows:
     4    (e-3) Real property tax  relief  credit.  (1)  For  purposes  of  this
     5  subsection:
     6    (A)  "Qualified taxpayer" means a resident individual of the state who
     7  has occupied the same residence for six months or more  of  the  taxable
     8  year as his or her primary residence, and is required or chooses to file
     9  a return under this article.
    10    (B)  "Qualified  gross  income" means the adjusted gross income of the
    11  qualified taxpayer for the taxable year as reported for  federal  income
    12  tax  purposes,  or which would be reported as adjusted gross income if a
    13  federal income tax return were required to be filed. In computing quali-
    14  fied gross income, the net amount of loss reported on  Federal  Schedule
    15  C,  D,  E, or F shall not exceed three thousand dollars per schedule. In
    16  addition, the net amount of any other separate category  of  loss  shall
    17  not  exceed  three  thousand dollars. The aggregate amount of all losses
    18  included in computing qualified gross income shall  not  exceed  fifteen
    19  thousand dollars.
    20    (C)  "Residence" means a dwelling in this state owned or rented by the
    21  taxpayer and used by the taxpayer as his or her primary  residence,  and
    22  so  much  of the land abutting it, not exceeding one acre, as is reason-
    23  ably necessary for use of the dwelling as a home, and may consist  of  a
    24  part  of  a multi-dwelling or multi-purpose building including a cooper-
    25  ative or condominium, and rental units within a single  dwelling.  Resi-
    26  dence  includes  a trailer or mobile home, used exclusively for residen-
    27  tial purposes and defined as real property pursuant to paragraph (g)  of
    28  subdivision  twelve  of section one hundred two of the real property tax
    29  law.
    30    (D) "Qualifying real property taxes" means all  real  property  taxes,
    31  special  ad  valorem levies and special assessments, exclusive of penal-
    32  ties and interest, levied by a  taxing  jurisdiction  on  the  residence
    33  owned  and  occupied  by  a qualified taxpayer and paid by the qualified
    34  taxpayer during the taxable year, provided that to the extent the  total
    35  amount  of  real  property taxes so paid includes school district taxes,
    36  the amount of the school tax relief (STAR) credit  claimed  pursuant  to
    37  subsection  (ccc)  of  this section, if any, shall be deducted from such
    38  amount.
    39    (i) For tax year two thousand fifteen: (a) only  real  property  taxes
    40  levied  by  school  districts  shall constitute qualifying real property
    41  taxes; and (b) for property owners with a qualifying  residence  located
    42  in  a  city  containing  a  school  district which is subject to article
    43  fifty-two of the education law to account for the fact that  the  school
    44  district is fiscally dependent upon the city, real property taxes levied
    45  by  such  school districts shall be determined by multiplying total real
    46  property taxes levied by a taxing jurisdiction and paid during the taxa-
    47  ble year by sixty-seven percent, or, in a city with a population of  one
    48  million or more, by fifty percent.
    49    (ii)  However,  real  property  taxes,  special ad valorem levies, and
    50  special assessments levied by a city with a population of one million or
    51  more shall constitute qualifying  real  property  taxes  only  if  taxes
    52  levied  in the state outside such city are required for purposes of this
    53  credit to be levied by taxing jurisdictions.
    54    A qualified taxpayer may elect to include any additional  amount  that
    55  would  have  been levied by a taxing jurisdiction and paid by the quali-

        A. 6009                            14
 
     1  fied taxpayer in the absence of an exemption from real property taxation
     2  pursuant to section four hundred sixty-seven of the  real  property  tax
     3  law.  If  tenant-stockholders  in a cooperative housing corporation have
     4  met  the  requirements  of  section  two hundred sixteen of the internal
     5  revenue code by which they are  allowed  a  deduction  for  real  estate
     6  taxes,  the amount of taxes so allowable, or which would be allowable if
     7  the taxpayer had filed returns on a cash basis, shall be qualifying real
     8  property taxes. If a residence is an integral part  of  a  larger  unit,
     9  qualifying  real  property taxes shall be limited to that amount of such
    10  taxes paid as may be reasonably apportioned to such  residence.    If  a
    11  taxpayer  owns  and  occupies two residences during different periods in
    12  the same taxable year, qualifying real property taxes shall be  the  sum
    13  of  the  prorated  qualifying  real  property  taxes attributable to the
    14  taxpayer during the periods such taxpayer occupies each  of  such  resi-
    15  dences.  If  the  taxpayer owns and occupies a residence for part of the
    16  taxable year and rents a residence for part of the same taxable year, it
    17  may include the proration of qualifying real property taxes on the resi-
    18  dence owned. Provided, however, for purposes of the credit allowed under
    19  this subsection, qualifying real property taxes may  be  included  by  a
    20  qualified  taxpayer  only to the extent that such taxpayer or the spouse
    21  of such taxpayer, occupying such residence for one hundred  eighty-three
    22  days  or  more  of the taxable year, owns or has owned the residence and
    23  paid such taxes.
    24    (E) "Real property tax equivalent" means thirteen  and  three-quarters
    25  percent  of  the  adjusted  rent  actually paid in the taxable year by a
    26  taxpayer solely for the right of occupancy of its New York residence for
    27  the taxable year. If a residence is rented to two or more individuals as
    28  cotenants, or such individuals share in the payment of a single rent for
    29  the right of occupancy of such residence, one or more of which  individ-
    30  uals shares such residence, real property tax equivalent is that portion
    31  of  thirteen and three-quarters percent of the adjusted rent paid in the
    32  taxable year that reflects that portion of the rent attributable to  the
    33  qualified  taxpayer.  For  taxable  years  beginning on or after January
    34  first, two thousand fifteen  and  before  January  first,  two  thousand
    35  sixteen,  the  real  property tax equivalent shall be equal to sixty-six
    36  percent of the real property tax equivalent as otherwise defined in this
    37  paragraph.
    38    (F) "Adjusted rent" means rental paid for the right of occupancy of  a
    39  residence, excluding charges for heat, gas, electricity, furnishings and
    40  board.    Where charges for heat, gas, electricity, furnishings or board
    41  are included in rental but where such charges and the amount thereof are
    42  not separately set forth in a written rental agreement, for purposes  of
    43  determining  adjusted  rent  the  qualified taxpayer shall reduce rental
    44  paid as follows:
    45    (i) For heat, or heat and gas, deduct six percent of rental paid.
    46    (ii) For heat, gas and electricity, deduct  eight  percent  of  rental
    47  paid.
    48    (iii)  For  heat, gas, electricity and furnishings, deduct ten percent
    49  of rental paid.
    50    (iv) For heat, gas, electricity, furnishings and board, deduct  twenty
    51  percent of rental paid.
    52    (G)  "Excess  real  property  tax" means the excess of qualifying real
    53  property taxes or the excess of real property tax  equivalent  over  the
    54  following percentage of qualified gross income:
    55       For the years beginning in:             Percentage:
    56                 2015                             3.75%

        A. 6009                            15
 
     1                 2016 and after                   6.0%
     2    (2)  A  qualified  taxpayer  shall  be allowed a credit as provided in
     3  paragraph three of this subsection against the  taxes  imposed  by  this
     4  article. If the credit exceeds the tax for such year under this article,
     5  the  excess  shall  be  treated  as  an  overpayment,  to be credited or
     6  refunded, without interest. If a qualified taxpayer is not  required  to
     7  file a return pursuant to section six hundred fifty-one of this article,
     8  a  qualified  taxpayer  may  nevertheless receive the full amount of the
     9  credit to be credited or repaid as an overpayment, without interest.
    10    (3) Determination of credit.  (A) For taxable years  beginning  on  or
    11  after  January first, two thousand fifteen and before January first, two
    12  thousand sixteen, the credit amount allowed under this subsection  shall
    13  equal  the applicable percentage of the excess real property tax, calcu-
    14  lated as follows:
    15    (i) For qualified taxpayers whose qualified gross income  is  seventy-
    16  five  thousand dollars or less, the applicable percentage shall be four-
    17  teen percent.
    18    (ii) For qualified taxpayers whose qualified gross income  is  greater
    19  than seventy-five thousand dollars but less than or equal to one hundred
    20  fifty  thousand  dollars, the applicable percentage shall be the differ-
    21  ence between (a) fourteen percent and (b) five percent multiplied  by  a
    22  fraction, the numerator of which is the difference between the qualified
    23  taxpayer's  qualified  gross  income  as  defined by this subsection and
    24  seventy-five thousand dollars, and the denominator of which is  seventy-
    25  five thousand dollars.
    26    (iii)  For qualified taxpayers whose qualified gross income is greater
    27  than one hundred fifty thousand dollars but less than or  equal  to  two
    28  hundred  fifty  thousand dollars, the applicable percentage shall be the
    29  difference between (a) nine percent and (b) six percent multiplied by  a
    30  fraction, the numerator of which is the difference between the qualified
    31  taxpayer's  qualified  gross  income  and  one  hundred  fifty  thousand
    32  dollars, and the denominator of which is one hundred thousand dollars.
    33    (B) For taxable years beginning on or after January first,  two  thou-
    34  sand sixteen and before January first, two thousand seventeen, the cred-
    35  it  amount  allowed  under  this  subsection  shall equal the applicable
    36  percentage of the excess real property tax, calculated as follows:
    37    (i) For qualified taxpayers whose qualified gross income equals seven-
    38  ty-five thousand dollars or less, the  applicable  percentage  shall  be
    39  twenty-three percent.
    40    (ii)  For  qualified taxpayers whose qualified gross income is greater
    41  than seventy-five thousand dollars but less than or equal to one hundred
    42  fifty thousand dollars, the applicable percentage shall be  the  differ-
    43  ence  between (a) twenty-three percent and (b) ten percent multiplied by
    44  a fraction, the numerator of which is the difference between the  quali-
    45  fied   taxpayer's  qualified  gross  income  and  seventy-five  thousand
    46  dollars, and the denominator of which is seventy-five thousand dollars.
    47    (iii) For qualified taxpayers whose qualified gross income is  greater
    48  than  one  hundred  fifty thousand dollars but less than or equal to two
    49  hundred fifty thousand dollars, the applicable percentage shall  be  the
    50  difference  between  (a) thirteen percent and (b) six percent multiplied
    51  by a fraction, the numerator of which  is  the  difference  between  the
    52  qualified  taxpayer's qualified gross income and one hundred fifty thou-
    53  sand dollars, and the denominator  of  which  is  one  hundred  thousand
    54  dollars.
    55    (C)  For  taxable years beginning on or after January first, two thou-
    56  sand seventeen and before January  first,  two  thousand  eighteen,  the

        A. 6009                            16
 
     1  credit  amount  allowed under this subsection shall equal the applicable
     2  percentage of the excess real property tax, calculated as follows:
     3    (i)  For  qualified taxpayers whose qualified gross income is seventy-
     4  five thousand dollars or less, the applicable percentage shall be  thir-
     5  ty-six percent.
     6    (ii)  For  qualified taxpayers whose qualified gross income is greater
     7  than seventy-five thousand dollars but less than or equal to one hundred
     8  fifty thousand dollars, the applicable percentage shall be  the  differ-
     9  ence between (a) thirty-six percent and (b) nine percent multiplied by a
    10  fraction, the numerator of which is the difference between the qualified
    11  taxpayer's qualified gross income and seventy-five thousand dollars, and
    12  the denominator of which is seventy-five thousand dollars.
    13    (iii)  For qualified taxpayers whose qualified gross income is greater
    14  than one hundred fifty thousand dollars but less than or  equal  to  two
    15  hundred  fifty  thousand dollars, the applicable percentage shall be the
    16  difference between (a) twenty-seven percent and  (b)  seventeen  percent
    17  multiplied  by  a  fraction,  the  numerator  of which is the difference
    18  between the qualified taxpayer's qualified gross income and one  hundred
    19  fifty  thousand  dollars,  and  the  denominator of which is one hundred
    20  thousand dollars.
    21    (D) For taxable years beginning on or after January first,  two  thou-
    22  sand  eighteen,  the  credit  amount allowed under this subsection shall
    23  equal the applicable percentage of the excess real property tax,  calcu-
    24  lated as follows:
    25    (i)  For  qualified taxpayers whose qualified gross income is seventy-
    26  five thousand dollars or less, the applicable percentage shall be  fifty
    27  percent.
    28    (ii)  For  qualified taxpayers whose qualified gross income is greater
    29  than seventy-five thousand dollars but less than or equal to one hundred
    30  fifty thousand dollars, the applicable percentage shall be  the  differ-
    31  ence between (a) fifty percent and (b) ten percent multiplied by a frac-
    32  tion,  the  numerator  of  which is the difference between the qualified
    33  taxpayer's qualified gross income and seventy-five thousand dollars, and
    34  the denominator of which is seventy-five thousand dollars.
    35    (iii) For qualified taxpayers whose qualified gross income is  greater
    36  than  one  hundred  fifty thousand dollars but less than or equal to two
    37  hundred fifty thousand dollars, the applicable percentage shall  be  the
    38  difference  between (a) forty percent and (b) twenty-five percent multi-
    39  plied by a fraction, the numerator of which is  the  difference  between
    40  the  qualified  taxpayer's  qualified gross income and one hundred fifty
    41  thousand dollars, and the denominator of which is one  hundred  thousand
    42  dollars.
    43    (4) Maximum credit for property owners. Notwithstanding the provisions
    44  of  paragraph  three  of  this subsection, the maximum credit determined
    45  under such paragraph, and thereby allowed under this  subsection,  shall
    46  not  exceed the amount calculated under this paragraph, for each respec-
    47  tive year as indicated.
    48    (A) For taxable years beginning on or after January first,  two  thou-
    49  sand fifteen and before January first, two thousand sixteen, the maximum
    50  credit  amount  allowed  under  this  subsection  shall be calculated as
    51  follows:
    52    (i) For qualified taxpayers whose qualified gross income  is  seventy-
    53  five  thousand dollars or less, the maximum credit allowed shall be five
    54  hundred dollars.
    55    (ii) For qualified taxpayers whose qualified gross income  is  greater
    56  than seventy-five thousand dollars but less than or equal to one hundred

        A. 6009                            17
 
     1  fifty  thousand dollars, the maximum credit allowed shall be the differ-
     2  ence between (a) five hundred dollars and (b) one hundred fifty  dollars
     3  multiplied  by  a  fraction,  the  numerator  of which is the difference
     4  between the qualified taxpayer's qualified gross income and seventy-five
     5  thousand  dollars, and the denominator of which is seventy-five thousand
     6  dollars.
     7    (iii) For qualified taxpayers whose qualified gross income is  greater
     8  than  one  hundred  fifty thousand dollars but less than or equal to two
     9  hundred fifty thousand dollars, the maximum credit allowed shall be  the
    10  difference  between  (a) three hundred fifty dollars and (b) one hundred
    11  fifty dollars multiplied by a fraction, the numerator of  which  is  the
    12  difference  between  the qualified taxpayer's qualified gross income and
    13  one hundred fifty thousand dollars, and the denominator of which is  one
    14  hundred thousand dollars.
    15    (B)  For  taxable years beginning on or after January first, two thou-
    16  sand sixteen and before January first, two thousand seventeen, the maxi-
    17  mum credit amount allowed under this subsection shall be  calculated  as
    18  follows:
    19    (i)  For  qualified taxpayers whose qualified gross income is seventy-
    20  five thousand dollars or less, the maximum credit allowed shall  be  one
    21  thousand dollars.
    22    (ii)  For  qualified taxpayers whose qualified gross income is greater
    23  than seventy-five thousand dollars but less than or equal to one hundred
    24  fifty thousand dollars, the maximum credit allowed shall be the  differ-
    25  ence  between (a) one thousand dollars and (b) two hundred fifty dollars
    26  multiplied by a fraction, the  numerator  of  which  is  the  difference
    27  between the qualified taxpayer's qualified gross income and seventy-five
    28  thousand  dollars, and the denominator of which is seventy-five thousand
    29  dollars.
    30    (iii) For qualified taxpayers whose qualified gross income is  greater
    31  than  one  hundred  fifty thousand dollars but less than or equal to two
    32  hundred fifty thousand dollars, the maximum credit allowed shall be  the
    33  difference  between  (a) seven hundred fifty dollars and (b) two hundred
    34  fifty dollars multiplied by a fraction, the numerator of  which  is  the
    35  difference  between  the qualified taxpayer's qualified gross income and
    36  one hundred fifty thousand dollars, and the denominator of which is  one
    37  hundred thousand dollars.
    38    (C)  For  taxable years beginning on or after January first, two thou-
    39  sand seventeen and before January  first,  two  thousand  eighteen,  the
    40  maximum  credit amount allowed under this subsection shall be calculated
    41  as follows:
    42    (i) For qualified taxpayers whose qualified gross income  is  seventy-
    43  five  thousand  dollars or less, the maximum credit allowed shall be one
    44  thousand six hundred dollars.
    45    (ii) For qualified taxpayers whose qualified gross income  is  greater
    46  than seventy-five thousand dollars but less than or equal to one hundred
    47  fifty  thousand dollars, the maximum credit allowed shall be the differ-
    48  ence between (a) one thousand six hundred dollars and (b)  four  hundred
    49  dollars  multiplied by a fraction, the numerator of which is the differ-
    50  ence between the qualified taxpayer's qualified gross income and  seven-
    51  ty-five  thousand  dollars, and the denominator of which is seventy-five
    52  thousand dollars.
    53    (iii) For qualified taxpayers whose qualified gross income is  greater
    54  than  one  hundred  fifty thousand dollars but less than or equal to two
    55  hundred fifty thousand dollars, the maximum credit allowed shall be  the
    56  difference  between  (a)  one  thousand two hundred dollars and (b) four

        A. 6009                            18
 
     1  hundred dollars multiplied by a fraction, the numerator of which is  the
     2  difference  between  the qualified taxpayer's qualified gross income and
     3  one hundred fifty thousand dollars, and the denominator of which is  one
     4  hundred thousand dollars.
     5    (D)  For  taxable years beginning on or after January first, two thou-
     6  sand eighteen, the maximum credit amount allowed under  this  subsection
     7  shall be calculated as follows:
     8    (i) For qualified taxpayers whose qualified gross income equals seven-
     9  ty-five  thousand  dollars  or less, the maximum credit allowed shall be
    10  two thousand dollars.
    11    (ii) For qualified taxpayers whose qualified gross income  is  greater
    12  than seventy-five thousand dollars but less than or equal to one hundred
    13  fifty  thousand dollars, the maximum credit allowed shall be the differ-
    14  ence between (a) two thousand  dollars  and  (b)  five  hundred  dollars
    15  multiplied  by  a  fraction,  the  numerator  of which is the difference
    16  between the qualified taxpayer's qualified gross income and seventy-five
    17  thousand dollars, and the denominator of which is seventy-five  thousand
    18  dollars.
    19    (iii)  For qualified taxpayers whose qualified gross income is greater
    20  than one hundred fifty thousand dollars but less than or  equal  to  two
    21  hundred  fifty thousand dollars, the maximum credit allowed shall be the
    22  difference between (a) one thousand five hundred dollars  and  (b)  five
    23  hundred  dollars multiplied by a fraction, the numerator of which is the
    24  difference between the qualified taxpayer's qualified gross  income  and
    25  one  hundred fifty thousand dollars, and the denominator of which is one
    26  hundred thousand dollars.
    27    (5) Maximum credit for tenants.   Notwithstanding  the  provisions  of
    28  paragraph  three  of  this subsection, for a qualified taxpayer who paid
    29  rent on his or her qualifying residence the  maximum  credit  determined
    30  under paragraph three of this subsection, and thereby allowed under this
    31  subsection, shall not exceed the amount calculated under this paragraph,
    32  for each respective year as indicated.
    33    (A)  For  taxable years beginning on or after January first, two thou-
    34  sand fifteen and before January first, two thousand sixteen and qualify-
    35  ing residences located in:
    36    (i) the city of New York, and the counties of Nassau,  Suffolk,  Rock-
    37  land,  Westchester,  Putnam,  Orange  and  Dutchess,  the maximum credit
    38  allowed shall be two hundred dollars;
    39    (ii) all other counties in the state, the maximum credit allowed shall
    40  be one hundred fifty dollars.
    41    (B) For taxable years beginning on or after January first,  two  thou-
    42  sand sixteen and before January first, two thousand seventeen and quali-
    43  fying residences located in:
    44    (i)  the  city of New York, and the counties of Nassau, Suffolk, Rock-
    45  land, Westchester, Putnam,  Orange  and  Dutchess,  the  maximum  credit
    46  allowed shall be five hundred dollars;
    47    (ii) all other counties in the state, the maximum credit allowed shall
    48  be three hundred seventy-five dollars.
    49    (C)  For  taxable years beginning on or after January first, two thou-
    50  sand seventeen and before January first, two thousand eighteen and qual-
    51  ifying residences located in:
    52    (i) the city of New York, and the counties of Nassau,  Suffolk,  Rock-
    53  land,  Westchester,  Putnam,  Orange  and  Dutchess,  the maximum credit
    54  allowed shall be six hundred fifty dollars;
    55    (ii) all other counties in the state, the maximum credit allowed shall
    56  be four hundred fifty dollars.

        A. 6009                            19
 
     1    (D) For taxable years beginning on or after January first,  two  thou-
     2  sand eighteen and qualifying residences located in:
     3    (i)  the  city of New York, and the counties of Nassau, Suffolk, Rock-
     4  land, Westchester, Putnam,  Orange  and  Dutchess,  the  maximum  credit
     5  allowed shall be seven hundred fifty dollars;
     6    (ii) all other counties in the state, the maximum credit shall be five
     7  hundred dollars.
     8    (6)  If a qualified taxpayer occupies a residence for a period of less
     9  than twelve months during the taxable year or  occupies  two  residences
    10  during different periods in such taxable year, the credit allowed pursu-
    11  ant  to  this subsection shall be computed in such manner as the commis-
    12  sioner may, by regulation, prescribe in order to  properly  reflect  the
    13  credit  or  portion thereof attributable to such residence or residences
    14  and such period or periods.
    15    (7)  The  commissioner  may  prescribe  that  the  credit  under  this
    16  subsection  shall be determined in whole or in part by the use of tables
    17  prescribed by such commissioner. Such tables shall set forth the  credit
    18  to the nearest dollar.
    19    (8) No credit shall be granted under this subsection:
    20    (A) To a property owner if qualified gross income for the taxable year
    21  exceeds two hundred fifty thousand dollars.
    22    (B) To a tenant if qualified gross income for the taxable year exceeds
    23  one hundred fifty thousand dollars.
    24    (C)  To a property owner unless: (i) the property is used for residen-
    25  tial purposes; (ii) not more than twenty percent of the  rental  income,
    26  if  any,  from  the property is from rental for nonresidential purposes;
    27  and (iii) the property is occupied as a residence in whole or in part by
    28  one or more of the owners of the property.
    29    (D) To an individual with respect to whom a deduction under subsection
    30  (c) of section one hundred fifty-one of the  internal  revenue  code  is
    31  allowable to another taxpayer for the taxable year.
    32    (E)  With  respect  to  a  residence that is wholly exempted from real
    33  property taxation.
    34    (F) To an individual who is not a resident individual of the state for
    35  the entire taxable year.
    36    (9) The right to claim a credit or the portion of a credit, where such
    37  credit has been divided under this subsection, shall be personal to  the
    38  qualified  taxpayer  and  shall  not  survive his or her death, but such
    39  right may be exercised on behalf of a claimant by his or her legal guar-
    40  dian or attorney in fact during his or her lifetime.
    41    (10) If a qualified taxpayer is not required to file a return pursuant
    42  to section six hundred fifty-one of this article, a claim for  a  credit
    43  may  be taken on a return filed with the commissioner within three years
    44  from the time it would have been required that a return be filed  pursu-
    45  ant to such section had the qualified taxpayer had a taxable year ending
    46  on December thirty-first.  Returns under this paragraph shall be in such
    47  form  as  shall be prescribed by the commissioner, who shall make avail-
    48  able such forms and instructions for filing such returns.
    49    (11) The commissioner may require a qualified taxpayer to furnish  the
    50  following  information  in  support of his or her claim for credit under
    51  this subsection: qualified gross income; real property taxes  levied  or
    52  that  would  have  been  levied in the absence of an exemption from real
    53  property tax pursuant to section four hundred sixty-seven  of  the  real
    54  property tax law; and all other information which may be required by the
    55  commissioner to determine the credit.

        A. 6009                            20
 
     1    (12)  The  provisions  of  this  article,  including the provisions of
     2  sections six hundred  fifty-three,  six  hundred  fifty-eight,  and  six
     3  hundred  fifty-nine  of  this  article and the provisions of part six of
     4  this article relating to procedure  and  administration,  including  the
     5  judicial  review of the decisions of the commissioner, except so much of
     6  section six hundred eighty-seven of this article which permits  a  claim
     7  for  credit or refund to be filed after the period provided for in para-
     8  graph nine of this subsection and except sections six hundred fifty-sev-
     9  en, six hundred eighty-eight and six hundred ninety-six of this article,
    10  shall apply to the provisions of this subsection in the same manner  and
    11  with  the  same  force and effect as if the language of those provisions
    12  had been incorporated in full into this  subsection  and  had  expressly
    13  referred  to  the credit allowed or returns filed under this subsection,
    14  except to the extent that any such provision is either inconsistent with
    15  a provision of this subsection or is not relevant to this subsection. As
    16  used in such sections and such part, the term "taxpayer" shall include a
    17  qualified  taxpayer  under  this  subsection  and,  notwithstanding  the
    18  provisions of subsection (e) of section six hundred ninety-seven of this
    19  article,  where a qualified taxpayer has protested the denial of a claim
    20  for credit under this subsection and the time to  file  a  petition  for
    21  redetermination of a deficiency or for refund has not expired, he or she
    22  shall,  subject  to  such  conditions as may be set by the commissioner,
    23  receive such information which the commissioner finds  is  relevant  and
    24  material to the issue of whether such claim was properly denied.
    25    (13)  The  commissioner  shall prepare on an annual basis a tax credit
    26  report for posting on the department's website. The first report will be
    27  due June thirtieth, two thousand sixteen, and every twelve months there-
    28  after. Such report shall include, but not be limited to  the  number  of
    29  credits  and  the  average amount of such credits allowed; and of those,
    30  the number of credits and the average amount of such credits allowed  to
    31  qualified  taxpayers in each county; and of those, the number of credits
    32  and the average amount of such credits allowed  to  qualified  taxpayers
    33  whose  qualified  gross  income falls within each of the qualified gross
    34  income ranges set forth in this subsection.
    35    (14) In the case of a taxpayer who has itemized deductions from feder-
    36  al adjusted gross income, and whose federal itemized deductions  include
    37  an  amount  for  real estate taxes paid, the New York itemized deduction
    38  otherwise allowable under section six hundred fifteen  of  this  chapter
    39  shall  be  reduced  by  the  amount  of  the  credit  claimed under this
    40  subsection.
    41    § 2. This act shall take effect immediately and shall apply to taxable
    42  years beginning on or after January 1, 2015.
 
    43                                   PART H
 
    44    Section 1. Subsection (g) of section 615 of the tax law, as amended by
    45  section 1 of part D of chapter 59 of the laws of  2013,  is  amended  to
    46  read as follows:
    47    (g)(1)  With  respect  to  an individual whose New York adjusted gross
    48  income is over one million dollars and no more than ten million dollars,
    49  the New York itemized deduction  shall  be  an  amount  equal  to  fifty
    50  percent  of  any charitable contribution deduction allowed under section
    51  one hundred seventy of the  internal  revenue  code  for  taxable  years
    52  beginning  after  two  thousand  nine [and before two thousand sixteen].
    53  With respect to an individual whose New York adjusted  gross  income  is
    54  over  one  million  dollars, the New York itemized deduction shall be an

        A. 6009                            21
 
     1  amount equal to fifty percent of any charitable  contribution  deduction
     2  allowed  under  section one hundred seventy of the internal revenue code
     3  for taxable years beginning in two thousand nine [or after two  thousand
     4  fifteen].
     5    (2) With respect to an individual whose New York adjusted gross income
     6  is over ten million dollars, the New York itemized deduction shall be an
     7  amount  equal  to  twenty-five  percent  of  any charitable contribution
     8  deduction allowed under section one  hundred  seventy  of  the  internal
     9  revenue  code  for  taxable years beginning after two thousand nine [and
    10  ending before two thousand sixteen].
    11    § 2. Subdivision (g) of section 11-1715 of the administrative code  of
    12  the  city  of New York, as added by section 2 of part D of chapter 59 of
    13  the laws of 2013, is amended to read as follows:
    14    (g) (1) With respect to an individual whose New  York  adjusted  gross
    15  income is over one million dollars but no more than ten million dollars,
    16  the  New  York  itemized  deduction  shall  be  an amount equal to fifty
    17  percent of any charitable contribution deduction allowed  under  section
    18  one  hundred  seventy  of  the  internal  revenue code for taxable years
    19  beginning after two thousand nine [and  before  two  thousand  sixteen].
    20  With  respect  to  an individual whose New York adjusted gross income is
    21  over one million dollars, the New York itemized deduction  shall  be  an
    22  amount  equal  to fifty percent of any charitable contribution deduction
    23  allowed under section one hundred seventy of the internal  revenue  code
    24  for  taxable years beginning in two thousand nine [or after two thousand
    25  fifteen].
    26    (2) With respect to an individual whose New York adjusted gross income
    27  is over ten million dollars, the New York itemized deduction shall be an
    28  amount equal to  twenty-five  percent  of  any  charitable  contribution
    29  deduction  allowed  under  section  one  hundred seventy of the internal
    30  revenue code for taxable years beginning after two  thousand  nine  [and
    31  ending before two thousand sixteen].
    32    § 3. This act shall take effect immediately.
 
    33                                   PART I
 
    34    Section  1.  Paragraph  41 of subsection (c) of section 612 of the tax
    35  law, as added by section 1 of part KK of chapter 59 of the laws of 2014,
    36  is amended to read as follows:
    37    (41) The amount of any award paid to a volunteer firefighter or volun-
    38  teer ambulance worker from a length of service defined contribution plan
    39  or defined benefit plan as provided for in articles eleven-A, eleven-AA,
    40  eleven-AAA and eleven-AAAA of the general municipal law, to  the  extent
    41  that  such  award  is  includable in gross income for federal income tax
    42  purposes; provided, however, that such award is not distributed  in  the
    43  form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
    44  paragraph  four  of  subsection  (e)  of section four hundred two of the
    45  internal revenue code and taxed under section six hundred three of  this
    46  article;  and provided, further, that such award is not distributed to a
    47  taxpayer who has not attained the age of fifty-nine and one-half years.
    48    § 2. Paragraph 37 of subdivision (c) of section 11-1712 of the  admin-
    49  istrative code of the city of New York, as added by section 2 of part KK
    50  of chapter 59 of the laws of 2014, is amended to read as follows:
    51    (37) The amount of any award paid to a volunteer firefighter or volun-
    52  teer ambulance worker from a length of service defined contribution plan
    53  or defined benefit plan as provided for in articles eleven-A, eleven-AA,
    54  eleven-AAA  and  eleven-AAAA of the general municipal law, to the extent

        A. 6009                            22
 
     1  that such award is includable in gross income  for  federal  income  tax
     2  purposes;  provided,  however, that such award is not distributed in the
     3  form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
     4  paragraph  four  of  subsection  (e)  of section four hundred two of the
     5  internal revenue code and taxed under section six hundred three  of  the
     6  tax  law; and provided, further, that such award is not distributed to a
     7  taxpayer who has not attained the age of fifty-nine and one-half years.
     8    § 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as
     9  amended by chapter 760 of the laws  of  1992,  is  amended  to  read  as
    10  follows:
    11    (3-a)  Pensions  and  annuities  received  by  an  individual  who has
    12  attained the age of fifty-nine  and  one-half,  not  otherwise  excluded
    13  pursuant to paragraph three of this subsection, to the extent includible
    14  in  gross  income  for federal income tax purposes, but not in excess of
    15  twenty thousand dollars, which are  periodic  payments  attributable  to
    16  personal  services  performed by such individual prior to his retirement
    17  from employment, which arise (i) from an employer-employee  relationship
    18  or (ii) from contributions to a retirement plan which are deductible for
    19  federal  income tax purposes. However, the term "pensions and annuities"
    20  shall also include distributions  received  by  an  individual  who  has
    21  attained  the  age of fifty-nine and one-half from an individual retire-
    22  ment account or an individual retirement annuity, as defined in  section
    23  four  hundred  eight  of  the  internal  revenue code, and distributions
    24  received by an individual who has attained the  age  of  fifty-nine  and
    25  one-half  from  self-employed  individual  and owner-employee retirement
    26  plans which qualify under section  four  hundred  one  of  the  internal
    27  revenue code, whether or not the payments are periodic in nature. Never-
    28  theless,  the  term  "pensions and annuities" shall not include any lump
    29  sum distribution, as defined in subparagraph [(A)] (D) of paragraph four
    30  of subsection (e) of section four hundred two of  the  internal  revenue
    31  code  and taxed under section six hundred three of this article. Where a
    32  husband and wife file a joint state  personal  income  tax  return,  the
    33  modification provided for in this paragraph shall be computed as if they
    34  were  filing separate state personal income tax returns. Where a payment
    35  would otherwise come within the meaning of the term "pensions and annui-
    36  ties" as set forth in this paragraph, except  that  such  individual  is
    37  deceased,  such  payment shall, nevertheless, be treated as a pension or
    38  annuity for purposes of this paragraph if such payment  is  received  by
    39  such individual's beneficiary.
    40    §  4.  Subparagraph  (B) of paragraph 1 of subsection (e-1) of section
    41  606 of the tax law, as added by section 2 of part K of chapter 59 of the
    42  laws of 2014, is amended to read as follows:
    43    (B) "Household" or  "members  of  the  household"  means  a  qualified
    44  taxpayer  and  all  other persons, not necessarily related, who have the
    45  same residence and share its furnishings, facilities and accommodations.
    46  Such terms shall not include a tenant, subtenant, roomer or boarder  who
    47  is  not  related  to  the  qualified taxpayer in any degree specified in
    48  [paragraphs one through  eight  of  subsection  (a)]  subparagraphs  (A)
    49  through  (G)  of  paragraph two of subsection (d) of section one hundred
    50  fifty-two of the internal revenue code. Provided, however, no person may
    51  be a member of more than one household at one time.
    52    § 5. Subparagraph (D) of paragraph 1 of subsection  (e-1)  of  section
    53  606 of the tax law, as added by section 2 of part K of chapter 59 of the
    54  laws of 2014, is amended to read as follows:
    55    (D) "Residence" means a dwelling in this state, in a city with a popu-
    56  lation of over one million, owned or rented by the taxpayer, and so much

        A. 6009                            23
 
     1  of the land abutting it, not exceeding one acre, as is reasonably neces-
     2  sary  for  use of the dwelling as a home, and may consist of a part of a
     3  multi-dwelling or multi-purpose  building  including  a  cooperative  or
     4  condominium,  and  rental  units  within  a  single  dwelling. Residence
     5  includes a trailer or mobile  home,  used  exclusively  for  residential
     6  purposes  and  defined  as  real  property  pursuant to paragraph (g) of
     7  subdivision twelve of section one hundred two of the real  property  tax
     8  law.
     9    §  6. Subparagraph (B) of paragraph 1 of subsection (e) of section 606
    10  of the tax law, as amended by chapter 28 of the laws of 1987, is amended
    11  to read as follows:
    12    (B) "Household" or  "members  of  the  household"  means  a  qualified
    13  taxpayer  and  all  other persons, not necessarily related, who have the
    14  same residence and share its furnishings, facilities and accommodations.
    15  Such terms shall not include a tenant, subtenant, roomer or boarder  who
    16  is  not  related  to  the  qualified taxpayer in any degree specified in
    17  [paragraphs one through  eight  of  subsection  (a)]  subparagraphs  (A)
    18  through  (G)  of  paragraph two of subsection (d) of section one hundred
    19  fifty-two of the internal revenue code. Provided, however, no person may
    20  be a member of more than one household at one time.
    21    § 7. Paragraph 1 of subsection (b) of section 806 of the tax  law,  as
    22  added  by  section  2  of  part DD of chapter 59 of the laws of 2014, is
    23  amended to read as follows:
    24    (1) The commissioner may require  the  filing  of  a  combined  return
    25  which,  in  addition  to  the  return  provided for in subsection (b) of
    26  section eight hundred four of this article, may also include any of  the
    27  returns  required  to  be  filed  by  a [resident individual of New York
    28  state] taxpayer pursuant  to  the  provisions  of  section  six  hundred
    29  fifty-one  of this chapter and which may be required to be filed by such
    30  [individual] taxpayer pursuant to any local law enacted pursuant to  the
    31  authority of article thirty, thirty-A or thirty-B of this chapter.
    32    § 8. Paragraph 1 and clause (ii) of subparagraph (B) of paragraph 2 of
    33  subsection  (xx) of section 606 of the tax law, as added by section 4 of
    34  part R of chapter 59 of the  laws  of  2014,  are  amended  to  read  as
    35  follows:
    36    (1)  A  qualified New York manufacturer will be allowed a credit equal
    37  to twenty percent of the real property tax it paid  during  the  taxable
    38  year  for real property owned by such manufacturer in New York which was
    39  principally used during the taxable year for manufacturing to the extent
    40  not deducted in computing [federal] New York adjusted gross income. This
    41  credit will not be allowed if the real property taxes that are the basis
    42  for this credit are  included  in  the  calculation  of  another  credit
    43  claimed by the taxpayer.
    44    (ii)  In  addition,  the term real property tax includes taxes paid by
    45  the taxpayer upon real property principally used during the taxable year
    46  by the taxpayer in manufacturing where the  taxpayer  leases  such  real
    47  property  from  an unrelated third party if the following conditions are
    48  satisfied: (I) the tax must be paid by the taxpayer as  lessee  pursuant
    49  to  explicit  requirements  in a written lease, and (II) the taxpayer as
    50  lessee has paid such taxes directly to  the  taxing  authority  and  has
    51  received a written receipt for payment of taxes from the taxing authori-
    52  ty.  [In  the  case of a combined group that constitutes a qualified New
    53  York manufacturer, the conditions in the preceding sentence  are  satis-
    54  fied  if one corporation in the combined group is the lessee and another
    55  corporation in the combined group  makes  the  payments  to  the  taxing
    56  authority.]

        A. 6009                            24
 
     1    §  9.  Subsection  (yy)  of  section  606  of the tax law, as added by
     2  section 4 of part T of chapter 59 of the laws of  2014,  is  amended  to
     3  read as follows:
     4    (yy)  The  tax-free  NY  area excise tax on telecommunication services
     5  credit. A taxpayer that is a business or owner of  a  business  that  is
     6  located in a tax-free NY area approved pursuant to article twenty-one of
     7  the  economic  development  law  shall  be allowed a credit equal to the
     8  excise tax on telecommunication services imposed by section one  hundred
     9  eighty-six-e  of this chapter and passed through to such business during
    10  the taxable year to the  extent  not  otherwise  deducted  in  computing
    11  [federal]  New  York  adjusted  gross income. This credit may be claimed
    12  only where any tax imposed by such section one hundred eighty-six-e  has
    13  been  separately stated on a bill from the provider of telecommunication
    14  services and paid  by  such  taxpayer  with  respect  to  such  services
    15  rendered  within  a  tax-free  NY  area  during the taxable year. If the
    16  amount of the credit allowed under this subsection for any taxable  year
    17  exceeds  the taxpayer's tax for such year, the excess will be treated as
    18  an overpayment to  be  credited  or  refunded  in  accordance  with  the
    19  provisions  of section six hundred eighty-six of this article, provided,
    20  however, that no interest will be paid thereon.
    21    § 10. Subparagraph (i) of paragraph 2 of subdivision (b) and  subdivi-
    22  sion (d) of section 25-b of the labor law, as added by section 1 of part
    23  MM of chapter 59 of the laws of 2014, are amended to read as follows:
    24    (i)  who is deemed to have a developmental disability, as that term is
    25  defined in subdivision twenty-two of section 1.03 of the mental  hygiene
    26  law  and  who is certified by the education department or the office for
    27  people with developmental disabilities[:
    28    (A)] as a person with a disability which constitutes or results  in  a
    29  substantial handicap to employment; and
    30    [(B)  as  a  person having completed or as receiving services under an
    31  individualized written rehabilitation plan  approved  by  the  education
    32  department  or  other  state agency responsible for providing vocational
    33  rehabilitation services to such individual; and]
    34    (d) To participate in the  [developmentally  disabled  works]  workers
    35  with  disabilities tax credit program, an employer must submit an appli-
    36  cation (in a form prescribed by the commissioner)  to  the  commissioner
    37  [no  later  than November thirtieth of the prior year]. The commissioner
    38  shall establish guidelines that specify requirements  for  employers  to
    39  participate  in  the program including criteria for certifying qualified
    40  employees. Any regulations that the commissioner determines  are  neces-
    41  sary  may  be  adopted on an emergency basis notwithstanding anything to
    42  the contrary in section two hundred  two  of  the  state  administrative
    43  procedure  act.  Such  requirements  may include the types of industries
    44  that the employers are engaged in.
    45    § 11. This act shall take effect immediately, provided, however that:
    46    (i) sections one and two of this act shall be deemed to have  been  in
    47  full  force  and  effect  on  and after the effective date of part KK of
    48  chapter 59 of the laws of 2014;
    49    (ii) sections four and five of this act shall be deemed to  have  been
    50  in  full  force  and effect on and after the effective date of part K of
    51  chapter 59 of the laws of 2014, provided, however,  that  amendments  to
    52  subsection (e-1) of section 606 of the tax law made by sections four and
    53  five  of  this  act  shall  not affect the repeal of such subsection and
    54  shall be deemed repealed therewith;

        A. 6009                            25
 
     1    (iii) section seven of this act shall be deemed to have been  in  full
     2  force  and  effect on and after the effective date of part DD of chapter
     3  59 of the laws of 2014;
     4    (iv)  section  eight  of this act shall be deemed to have been in full
     5  force and effect on and after the effective date of part R of chapter 59
     6  of the laws of 2014;
     7    (v) section nine of this act shall be deemed  to  have  been  in  full
     8  force and effect on and after the effective date of part T of chapter 59
     9  of the laws of 2014;
    10    (vi)  section  ten  of  this  act shall be deemed to have been in full
    11  force and effect on and after the effective date of part MM  of  chapter
    12  59 of the laws of 2014; and
    13    (vii)  the amendments to section 25-b of the labor law made by section
    14  ten of this act, shall not affect the repeal of such section  and  shall
    15  be deemed repealed therewith.
 
    16                                   PART J
 
    17    Section  1.  Section  9  of  part V of chapter 62 of the laws of 2006,
    18  amending the tax law relating to the empire state commercial  production
    19  tax credit, is REPEALED.
    20    §  2.  Subdivision  (c)  of  section  28 of the tax law, as amended by
    21  section 45 of part A of chapter 59 of the laws of  2014,  is  relettered
    22  subdivision (d) and a new subdivision (c) is added to read as follows:
    23    (c)  The department of economic development shall submit, on or before
    24  December first of each year, to the governor, the director of the  divi-
    25  sion  of  the  budget,  the  temporary  president of the senate, and the
    26  speaker of the assembly an annual report including, but not limited  to,
    27  the following information regarding the previous calendar year:
    28    (1) the total dollar amount of credits allocated, the name and address
    29  of  each qualified commercial production company allocated credits under
    30  this section, the total amount of credits allocated  to  each  qualified
    31  commercial  production company, the total amount of qualified production
    32  costs and production costs  for  each  qualified  commercial  production
    33  company,  and  the  estimated  number  of employees, credit-eligible man
    34  hours, and credit-eligible wages associated with each qualified  commer-
    35  cial production company allocated credits under this section;
    36    (2)  for qualified commercial production companies that were allocated
    37  credit pursuant to subparagraph (ii) of paragraph two of subdivision (a)
    38  of this section: the name  and  address  of  each  qualified  commercial
    39  production  company,  the  total dollar amount of credits allocated, the
    40  total  amount  of  credits  allocated  to  each   qualified   commercial
    41  production  company,  total  qualified  production  costs and production
    42  costs for each qualified production company, and the estimated number of
    43  employees, credit-eligible man hours, and credit-eligible wages  associ-
    44  ated  with  each  qualified commercial production company that filmed or
    45  recorded a qualified commercial within the district;
    46    (3) for qualified commercial production companies that were  allocated
    47  credit  pursuant  to  subparagraph (iii) of paragraph two of subdivision
    48  (a) of this section: the name and address of each  qualified  commercial
    49  production  company,  the  total dollar amount of credits allocated, the
    50  total  amount  of  credits  allocated  to  each   qualified   commercial
    51  production  company,  total  qualified  production  costs and production
    52  costs for each qualified production company, and the estimated number of
    53  employees, credit-eligible man hours, and credit-eligible wages  associ-

        A. 6009                            26
 
     1  ated  with  each  qualified commercial production company that filmed or
     2  recorded a qualified commercial outside the district; and
     3    (4)  the  amount  of  credits  reallocated  to  all eligible qualified
     4  commercial production companies pursuant to subparagraph (iii) of  para-
     5  graph two of subdivision (a) of this section.
     6    (5) The report may also include any recommendations for changes in the
     7  calculation  or  administration of the credit, recommendations regarding
     8  continuing modification or repeal of this credit, and any other informa-
     9  tion regarding this credit as may be useful and appropriate.
    10    § 3. This act shall take effect  immediately  with  the  first  report
    11  being due December 1, 2016, with regard to credits allocated in calendar
    12  year 2015.
 
    13                                   PART K
 
    14    Section  1.  Subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18,
    15  and 19 of section 352 of the  economic  development  law,  as  added  by
    16  section  1  of part MM of chapter 59 of the laws of 2010, subdivision 12
    17  as amended by section 1 of part G of chapter 61 of the laws of 2011, are
    18  amended to read as follows:
    19    7. "Entertainment company" means a corporation,  partnership,  limited
    20  partnership,  or  other  entity principally engaged in the production or
    21  post production of (i) motion pictures,  which  shall  include  feature-
    22  length  films  and  television  films,  (ii) instructional videos, (iii)
    23  televised commercial advertisements, (iv) animated  films  or  cartoons,
    24  (v) music videos, (vi) television programs, which shall include, but not
    25  be  limited  to,  television series, television pilots, and single tele-
    26  vision episodes, (vii) video games, other than those embedded  and  used
    27  exclusively  in  advertising,  promotional  websites  or  microsites, or
    28  (viii) programs primarily intended for radio broadcast.   "Entertainment
    29  company" shall not include an entity (i) principally engaged in the live
    30  performance  of  events,  including,  but  not  limited  to,  theatrical
    31  productions, concerts, circuses, and sporting events,  (ii)  principally
    32  engaged  in the production of content intended primarily for industrial,
    33  corporate or institutional end-users, (iii) principally engaged  in  the
    34  production  of  fundraising  films  or  programs, or (iv) engaged in the
    35  production of content for which records are required under section  2257
    36  of  title  18,  United States code, to be maintained with respect to any
    37  performer in such production.
    38    8. "Financial services data centers  or  financial  services  customer
    39  back  office  operations"  means  operations  that  manage  the  data or
    40  accounts of existing customers or provide product or service information
    41  and support to customers  of  financial  services  companies,  including
    42  banks,  other  lenders,  securities and commodities brokers and dealers,
    43  investment banks,  portfolio  managers,  trust  offices,  and  insurance
    44  companies.
    45    [8.] 9. "Investment zone" shall mean an area within the state that had
    46  been  designated  under paragraph (i) of subdivision (a) and subdivision
    47  (d) of section nine hundred fifty-eight of  the  general  municipal  law
    48  that  was  wholly  contained  within  up  to  four distinct and separate
    49  contiguous areas as of the  date  immediately  preceding  the  date  the
    50  designation  of  such  area  expired  pursuant  to  section nine hundred
    51  sixty-nine of the general municipal law.
    52    [9.] 10. "Manufacturing" means the process of  working  raw  materials
    53  into products suitable for use or which gives new shapes, new quality or
    54  new  combinations  to matter which has already gone through some artifi-

        A. 6009                            27
 
     1  cial process by the use of machinery, tools, appliances, or other  simi-
     2  lar  equipment.  "Manufacturing"  does  not  include  an  operation that
     3  involves only the assembly of components, provided, however, the  assem-
     4  bly  of  motor  vehicles  or  other  high  value-added products shall be
     5  considered manufacturing.
     6    [10.] 11. "Net new jobs" means [jobs created in this state that]:
     7    (a) jobs created in this state that (i) are new to the state[;],
     8    [(b)] (ii) have not been  transferred  from  employment  with  another
     9  business  located  in this state including from a related person in this
    10  state[;],
    11    [(c)] (iii) are either full-time wage-paying jobs or equivalent  to  a
    12  full-time  wage-paying  job  requiring  at  least  thirty-five hours per
    13  week[;], and
    14    [(d)] (iv) are filled for more than six months[.]; or
    15    (b) jobs obtained by an entertainment company in this state (i)  as  a
    16  result  of  the termination of a licensing agreement with another enter-
    17  tainment company, (ii) that the commissioner determines to be at risk of
    18  leaving the state as a direct result of the termination, (iii) that  are
    19  either full-time wage-paying jobs or equivalent to a full-time wage-pay-
    20  ing job requiring at least thirty-five hours per week, and (iv) that are
    21  filled for more than six months.
    22    [11.] 12. "Participant" means a business entity that:
    23    (a)  has  completed  an application prescribed by the department to be
    24  admitted into the program;
    25    (b) has been issued a certificate of eligibility by the department;
    26    (c) has demonstrated that it meets the eligibility criteria in section
    27  three hundred fifty-three and subdivision two of section  three  hundred
    28  fifty-four of this article; and
    29    (d) has been certified as a participant by the commissioner.
    30    [12.]  13. "Preliminary schedule of benefits" means the maximum aggre-
    31  gate amount of each component of the tax credit that  a  participant  in
    32  the excelsior jobs program is eligible to receive pursuant to this arti-
    33  cle.  The schedule shall indicate the annual amount of each component of
    34  the credit a participant may claim in each of its ten years of eligibil-
    35  ity.    The  preliminary  schedule  of  benefits  shall be issued by the
    36  department when the department approves the  application  for  admission
    37  into  the  program.  The  commissioner may amend that schedule, provided
    38  that the commissioner complies with the credit  caps  in  section  three
    39  hundred fifty-nine of this article.
    40    [13.] 14. "Qualified investment" means an investment in tangible prop-
    41  erty  (including  a  building  or  a structural component of a building)
    42  owned by a business enterprise which:
    43    (a) is depreciable pursuant to section one hundred sixty-seven of  the
    44  internal revenue code;
    45    (b) has a useful life of four years or more;
    46    (c)  is  acquired by purchase as defined in section one hundred seven-
    47  ty-nine (d) of the internal revenue code;
    48    (d) has a situs in this state; and
    49    (e) is placed in service in the state on or after the date the certif-
    50  icate of eligibility is issued to the business enterprise.
    51    [14.] 15. "Regionally significant project" means  (a)  a  manufacturer
    52  creating at least fifty net new jobs in the state and making significant
    53  capital investment in the state; (b) a business creating at least twenty
    54  net  new jobs in agriculture in the state and making significant capital
    55  investment in the state, (c) a  financial  services  firm,  distribution
    56  center, or back office operation creating at least three hundred net new

        A. 6009                            28
 
     1  jobs  in  the  state  and  making  significant capital investment in the
     2  state, [or] (d) a scientific research and development firm  creating  at
     3  least  twenty  net new jobs in the state, and making significant capital
     4  investment  in  the  state  or  (e) an entertainment company creating or
     5  obtaining at least two hundred net new jobs  in  the  state  and  making
     6  significant  capital investment in the state.  Other businesses creating
     7  three hundred or more net new jobs in the state and  making  significant
     8  capital  investment  in  the  state  may  be  considered  eligible  as a
     9  regionally significant project by the commissioner as well. The  commis-
    10  sioner  shall  promulgate  regulations pursuant to section three hundred
    11  fifty-six of this article  to  determine  what  constitutes  significant
    12  capital  investment for each of the project categories indicated in this
    13  subdivision and what additional criteria a  business  must  meet  to  be
    14  eligible as a regionally significant project, including, but not limited
    15  to,  whether a business exports a substantial portion of its products or
    16  services outside of the state or outside of a  metropolitan  statistical
    17  area or county within the state.
    18    [15.]  16.  "Related  person"  means  a  "related  person" pursuant to
    19  subparagraph (c) of paragraph three of subsection (b)  of  section  four
    20  hundred sixty-five of the internal revenue code.
    21    [16.]  17. "Remuneration" means wages and benefits paid to an employee
    22  by a participant in the excelsior jobs program.
    23    [17.] 18. "Research and development expenditures" mean the expenses of
    24  the business enterprise that are qualified research expenses  under  the
    25  federal  research  and development credit under section forty-one of the
    26  internal revenue code and are attributable to  activities  conducted  in
    27  the  state.  If the federal research and development credit has expired,
    28  then the research and development expenditures shall be calculated as if
    29  the federal research and development credit structure and definition  in
    30  effect in federal tax year two thousand nine were still in effect.
    31    [18.]  19.  "Scientific  research  and  development"  means conducting
    32  research and experimental development in the physical, engineering,  and
    33  life  sciences,  including  but not limited to agriculture, electronics,
    34  environmental, biology,  botany,  biotechnology,  computers,  chemistry,
    35  food, fisheries, forests, geology, health, mathematics, medicine, ocean-
    36  ography,  pharmacy, physics, veterinary, and other allied subjects.  For
    37  the purposes of this article, scientific research and  development  does
    38  not include medical or veterinary laboratory testing facilities.
    39    [19.]  20. "Software development" means the creation of coded computer
    40  instructions and includes new media as defined by  the  commissioner  in
    41  regulations.
    42    §  2. Subdivisions 1, 3, and 5 of section 353 of the economic develop-
    43  ment law, subdivisions 1 and 5 as amended by section  2  of  part  G  of
    44  chapter 61 of the laws of 2011 and subdivision 3 as amended by section 1
    45  of  part  C  of  chapter  68 of the laws of 2013, are amended to read as
    46  follows:
    47    1. To be a participant in the excelsior jobs program, a business enti-
    48  ty shall operate in New York state predominantly:
    49    (a) as a financial services data center or a financial  services  back
    50  office operation;
    51    (b) in manufacturing;
    52    (c) in software development and new media;
    53    (d) in scientific research and development;
    54    (e) in agriculture;
    55    (f)  in  the  creation  or  expansion of back office operations in the
    56  state;

        A. 6009                            29
 
     1    (g) in a distribution center; [or]
     2    (h)  in  an  industry  with  significant  potential for private-sector
     3  economic growth and development in this  state  as  established  by  the
     4  commissioner  in  regulations  promulgated  pursuant to this article. In
     5  promulgating such regulations the commissioner  shall  include  job  and
     6  investment criteria; or
     7    (i) as an entertainment company.
     8    3.  For  the  purposes of this article, in order to participate in the
     9  excelsior jobs program, a business  entity  operating  predominantly  in
    10  manufacturing  must  create at least ten net new jobs; a business entity
    11  operating predominately in agriculture must create at least five net new
    12  jobs; a business entity operating predominantly as a  financial  service
    13  data  center  or  financial services customer back office operation must
    14  create at least fifty net new jobs; a business entity operating predomi-
    15  nantly in scientific research and development must create at least  five
    16  net  new  jobs;  a  business  entity operating predominantly in software
    17  development must create at least five net new jobs;  a  business  entity
    18  creating  or expanding back office operations must create at least fifty
    19  net new jobs; a business entity operating  predominantly  as  an  enter-
    20  tainment  company  must  create  or  obtain at least one hundred net new
    21  jobs; or a business entity operating  predominantly  as  a  distribution
    22  center  in  the  state  must  create at least seventy-five net new jobs,
    23  notwithstanding subdivision five of this section; or a  business  entity
    24  must be a regionally significant project as defined in this article; or
    25    5.  A  not-for-profit business entity, a business entity whose primary
    26  function is the provision of services including personal services, busi-
    27  ness services, or the provision of  utilities,  and  a  business  entity
    28  engaged  predominantly  in  the  retail or entertainment industry, other
    29  than a business operating as an entertainment company as defined in this
    30  article, and a company engaged in  the  generation  or  distribution  of
    31  electricity, the distribution of natural gas, or the production of steam
    32  associated  with  the  generation  of  electricity  are  not eligible to
    33  receive the tax credit described in this article.
    34    § 3. Subdivision 1 of section 354 of the economic development law,  as
    35  amended  by  section  3  of part G of chapter 61 of the laws of 2011, is
    36  amended as follows:
    37    1. A business  enterprise  must  submit  a  completed  application  as
    38  prescribed by the commissioner.  An application made by an entertainment
    39  company must be submitted by June first, two thousand fifteen. An appli-
    40  cation  may  be  recommended  by entities, including but not limited to,
    41  those created pursuant  to  subdivision  (e)  of  section  nine  hundred
    42  fifty-seven of the general municipal law.
    43    §  4. Subdivision 6 of section 355 of the economic development law, as
    44  amended by section 4 of part G of chapter 61 of the  laws  of  2011,  is
    45  amended to read as follows:
    46    6.  Claim  of  tax credit. The business enterprise shall be allowed to
    47  claim the credit as prescribed in section thirty-one of the tax law.  No
    48  costs used by an entertainment company as the basis for the allowance of
    49  a tax credit described in this section shall  be  used  by  such  enter-
    50  tainment  company  to claim any other credit allowed pursuant to the tax
    51  law.
    52    § 5. This act shall take effect immediately.

    53                                   PART L

        A. 6009                            30
 
     1    Section 1. Paragraph (a) of subdivision 1 of section 210-B of the  tax
     2  law, as added by section 17 of part A of chapter 59 of the laws of 2014,
     3  is amended to read as follows:
     4    (a) A taxpayer shall be allowed a credit, to be computed as hereinaft-
     5  er  provided, against the tax imposed by this article. The amount of the
     6  credit shall be the percent provided for hereinbelow of  the  investment
     7  credit  base.  The investment credit base is the cost or other basis for
     8  federal income tax purposes of  tangible  personal  property  and  other
     9  tangible  property,  including  buildings  and  structural components of
    10  buildings, described in paragraph (b)  of  this  subdivision,  less  the
    11  amount  of  the  nonqualified nonrecourse financing with respect to such
    12  property to the extent such financing would be excludible from the cred-
    13  it base pursuant to  section  46(c)(8)  of  the  internal  revenue  code
    14  (treating such property as section thirty-eight property irrespective of
    15  whether  or  not  it in fact constitutes section thirty-eight property).
    16  If, at the close of a taxable year following the taxable year  in  which
    17  such  property  was  placed  in  service, there is a net decrease in the
    18  amount of nonqualified nonrecourse financing with respect to such  prop-
    19  erty, such net decrease shall be treated as if it were the cost or other
    20  basis  of  property  described  in  paragraph  (b)  of  this subdivision
    21  acquired, constructed, reconstructed or erected during the year  of  the
    22  decrease  in the amount of nonqualified nonrecourse financing. Provided,
    23  however, that the investment credit base of a master of  a  film,  tele-
    24  vision show or commercial shall only include those costs associated with
    25  the  creation,  production or reproduction of such film, television show
    26  or commercial incurred within the state;  provided,  further,  that  the
    27  investment credit base of a master shall not include those costs used by
    28  the  taxpayer  or  another  taxpayer in the calculation of any other tax
    29  credit allowed under this chapter. In the case of a combined report  the
    30  term  investment credit base shall mean the sum of the investment credit
    31  base of each corporation included on such report. The percentage  to  be
    32  used to compute the credit allowed pursuant to this subdivision shall be
    33  five  percent  with  respect  to  the  first three hundred fifty million
    34  dollars of the investment credit base, and four percent with respect  to
    35  the  investment  credit  base  in  excess of three hundred fifty million
    36  dollars, except that in the case of research and development property at
    37  the option of the taxpayer the applicable percentage shall be nine.
    38    § 2. Section 211 of the tax law is amended by adding a new subdivision
    39  15 to read as follows:
    40    15. Notwithstanding  the  provisions  of  subdivision  eight  of  this
    41  section,  in  order  to  administer the limitation in subdivision one of
    42  section two hundred ten-B of this article regarding the investment cred-
    43  it base of a master of  a  film,  television  show  or  commercial,  the
    44  commissioner  may  disclose to a taxpayer claiming the investment credit
    45  for costs associated with the creation, production or reproduction of  a
    46  film, television show or commercial pursuant to such section information
    47  included  in  a report or a return of another taxpayer filed pursuant to
    48  this chapter claiming a tax credit under this chapter relating to  costs
    49  associated  with  the creation, production or reproduction of such film,
    50  television show or commercial.
    51    § 3. Paragraph 1 of subsection (a) of section 606 of the tax  law,  as
    52  amended  by  chapter  170  of  the  laws  of 1994, is amended to read as
    53  follows:
    54    (1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
    55  er provided, against the tax imposed by this article. The amount of  the
    56  credit  shall be the per cent provided for hereinbelow of the investment

        A. 6009                            31

     1  credit base. The investment credit base is the cost or other basis,  for
     2  federal  income  tax  purposes,  of tangible personal property and other
     3  tangible property, including  buildings  and  structural  components  of
     4  buildings,  described  in  paragraph  two  of  this subsection, less the
     5  amount of the nonqualified nonrecourse financing with  respect  to  such
     6  property to the extent such financing would be excludible from the cred-
     7  it  base  pursuant  to  section  46(c)(8)  of  the internal revenue code
     8  (treating such property as section thirty-eight property irrespective of
     9  whether or not it in fact constitutes  section  thirty-eight  property).
    10  If,  at  the close of a taxable year following the taxable year in which
    11  such property was placed in service, there is  a  net  decrease  in  the
    12  amount  of nonqualified nonrecourse financing with respect to such prop-
    13  erty, such net decrease shall be treated as if it were the cost or other
    14  basis  of  property  described  in  paragraph  two  of  this  subsection
    15  acquired,  constructed,  reconstructed or erected during the year of the
    16  decrease in the amount of nonqualified nonrecourse financing.  Provided,
    17  however,  that  the  investment credit base of a master of a film, tele-
    18  vision show or commercial shall only include those costs associated with
    19  the creation, production or reproduction of such film,  television  show
    20  or  commercial  incurred  within  the state; provided, further, that the
    21  investment credit base of a master shall not include those costs used by
    22  the taxpayer or another taxpayer in the calculation  of  any  other  tax
    23  credit  allowed under this chapter. The percentage to be used to compute
    24  the credit allowed pursuant to this subsection shall be that  percentage
    25  appearing  in  column  two  which  is opposite the appropriate period in
    26  column one  in  which  the  tangible  personal  property  was  acquired,
    27  constructed, reconstructed or erected, as the case may be:
 
    28  Column 1                             Column 2
    29  After December 31, 1968 and
    30  prior to January 1, 1974             one per cent
    31  After December 31, 1973 and
    32  prior to January 1, 1978             two per cent
    33  After December 31, 1977 and
    34  prior to January 1, 1979             three per cent
    35  After December 31, 1978 and
    36  prior to June 1, 1981                four per cent
    37  After May 31, 1981 and
    38  prior to July 1, 1982                five per cent
    39  After June 30, 1982 and
    40  before January 1, 1987               six per cent
    41  After December 31, 1986              four per cent, except that  in  the
    42                                       case  of  research  and development
    43                                       property the applicable  percentage
    44                                       shall be seven
 
    45  Provided,  however,  that  in  the case of an acquisition, construction,
    46  reconstruction or erection which was commenced in  any  one  period  and
    47  continued  or completed in any subsequent period the credit shall be the
    48  sum of the portions of the investment credit base attributable  to  each
    49  such  period,  which  portion  with respect to each such period shall be
    50  ascertained by multiplying such investment credit base by a fraction the
    51  numerator of which shall be the expenditures  paid  or  incurred  during
    52  such  period for such purposes and the denominator of which shall be the
    53  total of  all  expenditures  paid  or  incurred  for  such  acquisition,

        A. 6009                            32
 
     1  construction,  reconstruction  or  erection, multiplied by the allowable
     2  percentage for each such period.
     3    § 4. Subsection (e) of section 697 of the tax law is amended by adding
     4  a new paragraph 3-b to read as follows:
     5    (3-b)   Notwithstanding  the  provisions  of  paragraph  one  of  this
     6  subsection, in order to administer the limitation in  paragraph  one  of
     7  subsection  (a) of section six hundred six of this article regarding the
     8  investment credit base of a master of a film, television show or commer-
     9  cial, the commissioner may disclose to a taxpayer claiming  the  invest-
    10  ment  credit  for  costs  associated  with  the  creation, production or
    11  reproduction of a film, television show or commercial pursuant  to  such
    12  section information included in a report or a return of another taxpayer
    13  filed  pursuant to this chapter claiming a tax credit under this chapter
    14  relating to costs associated with the creation,  production  or  reprod-
    15  uction of such film, television show or commercial.
    16    §  5.  Subparagraph  (vi) of paragraph (a) of subdivision 1 of section
    17  210 of the tax law, as amended by section 12 of part A of chapter 59  of
    18  the laws of 2014, is amended to read as follows:
    19    (vi)  for taxable years beginning on or after January first, two thou-
    20  sand fourteen, the amount prescribed by this paragraph  for  a  taxpayer
    21  which  is  a  qualified  New York manufacturer, shall be computed at the
    22  rate of zero percent of the taxpayer's business income  base.  The  term
    23  "manufacturer"  shall  mean  a taxpayer which during the taxable year is
    24  principally engaged in the production of goods by  manufacturing,  proc-
    25  essing,  assembling, refining, mining, extracting, farming, agriculture,
    26  horticulture, floriculture, viticulture or commercial fishing.  However,
    27  the  generation  and  distribution  of  electricity, the distribution of
    28  natural gas, and the production of steam associated with the  generation
    29  of  electricity  shall  not  be qualifying activities for a manufacturer
    30  under this subparagraph. Moreover, the combined group shall  be  consid-
    31  ered  a  "manufacturer"  for  purposes  of this subparagraph only if the
    32  combined group during the taxable year is  principally  engaged  in  the
    33  activities  set  forth  in this paragraph, or any combination thereof. A
    34  taxpayer or a combined group shall be "principally  engaged"  in  activ-
    35  ities  described  above  if,  during  the  taxable year, more than fifty
    36  percent of the gross receipts of the taxpayer or combined group, respec-
    37  tively, are derived from receipts from the sale  of  goods  produced  by
    38  such  activities. However, the license of a master of a film, television
    39  show or commercial shall not constitute the sale of a  good  under  this
    40  subparagraph.  In computing a combined group's gross receipts, intercor-
    41  porate receipts shall be eliminated. A "qualified New York manufacturer"
    42  is a manufacturer which has property in New York which is  described  in
    43  subdivision  one of section two hundred ten-B of this article and either
    44  (I) the adjusted basis of such property for federal income tax  purposes
    45  at the close of the taxable year is at least one million dollars or (II)
    46  all of its real and personal property is located in New York. A taxpayer
    47  or,  in  the  case of a combined report, a combined group, that does not
    48  satisfy the principally  engaged  test  may  be  a  qualified  New  York
    49  manufacturer  if  the  taxpayer or the combined group employs during the
    50  taxable year at least two thousand five hundred employees in manufactur-
    51  ing in New York and the taxpayer or the combined group has  property  in
    52  the state used in manufacturing, the adjusted basis of which for federal
    53  income  tax  purposes  at  the close of the taxable year is at least one
    54  hundred million dollars.
    55    § 6. This act shall take effect immediately and shall apply to taxable
    56  years beginning on or after January 1, 2016.

        A. 6009                            33
 
     1                                   PART M
 
     2    Section  1.  Section  25-a  of the labor law, as added by section 1 of
     3  part D of chapter 56 of the laws of 2011, subdivision (a) as amended  by
     4  section  3,  subdivision (c) as amended by section 4 and subdivision (f)
     5  as amended by section 5 of part U of chapter 59 of the laws of 2014, and
     6  subdivision (b) as amended by section 1 and subdivision (d)  as  amended
     7  by section 2 of part DD of chapter 59 of the laws of 2013, is amended to
     8  read as follows:
     9    §  25-a.  Power to administer the [New York] urban youth [works]  jobs
    10  program tax credit [program].   (a) The commissioner  is  authorized  to
    11  establish  and  administer the [New York youth works tax credit] program
    12  established under this section to provide tax  incentives  to  employers
    13  for  employing at risk youth in part-time and full-time positions. There
    14  will be five distinct pools of tax incentives. Program  one  will  cover
    15  tax  incentives allocated for two thousand twelve and two thousand thir-
    16  teen. Program two will cover tax incentives allocated  in  two  thousand
    17  fourteen  [to  be  used  in two thousand fourteen and fifteen].  Program
    18  three will cover tax incentives allocated in two thousand fifteen [to be
    19  used in two thousand fifteen and sixteen]. Program four will  cover  tax
    20  incentives allocated in two thousand sixteen [to be used in two thousand
    21  sixteen and seventeen]. Program five will cover tax incentives allocated
    22  in  two  thousand  seventeen  [to  be used in two thousand seventeen and
    23  eighteen]. The commissioner is authorized to allocate up to  twenty-five
    24  million dollars of tax credits under program one, ten million dollars of
    25  tax  credits  under  program two, and ten million dollars of tax credits
    26  for a base credit allocation and an additional ten  million  dollars  of
    27  tax  credits  for  an  incremental  allocation  under  [program] each of
    28  programs three, [ten million dollars of tax credits under program] four,
    29  [ten million dollars of tax credits under program] and five.
    30    (b) Definitions. (1) The term "qualified employer" means  an  employer
    31  that  has  been certified by the commissioner to participate in the [New
    32  York youth works tax credit] program established under this section  and
    33  that employs one or more qualified employees.
    34    (2) The term "qualified employee" means an individual:
    35    (i) who is between the age of sixteen and twenty-four;
    36    (ii)  who  resides in a [city with a population of fifty-five thousand
    37  or more or a town with a population of four hundred eighty  thousand  or
    38  more] targeted locality;
    39    (iii)  who is low-income or at-risk, as those terms are defined by the
    40  commissioner;
    41    (iv) who is unemployed prior to being hired by the qualified employer;
    42  and
    43    (v) who will be working for the qualified employer in a  full-time  or
    44  part-time position that pays wages that are equivalent to the wages paid
    45  for similar jobs, with appropriate adjustments for experience and train-
    46  ing,  and  for which no other employee has been terminated, or where the
    47  employer has not otherwise reduced its workforce by  involuntary  termi-
    48  nations  with  the  intention  of  filling the vacancy by creating a new
    49  hire.
    50    (3) The term "locality" means a city with a population  of  fifty-five
    51  thousand  or  more  or  a  town with a population of four hundred eighty
    52  thousand or more.
    53    (4) The term "locality with high unemployment" means a  locality  that
    54  is  located  in  one  or more counties that are ranked among the top six
    55  counties containing a locality for the twelve-month annual average unem-

        A. 6009                            34
 
     1  ployment rate, as determined by the commissioner using the most  current
     2  available  data, provided, however, that multiple counties that comprise
     3  a single locality shall not be separately ranked and shall be considered
     4  as one for purposes of determining the top six.
     5    (5)  The term "locality with high youth poverty" means a locality that
     6  is ranked among the top six in New York state  for  individuals  between
     7  the  ages  of eighteen and twenty-four living below the poverty line, as
     8  determined by the United States Census Bureau 5-year American  Community
     9  Survey, using the most current data available.
    10    (6)  The term "targeted locality" means a locality, provided, however,
    11  that for purposes of the  incremental  allocations  in  programs  three,
    12  four, and five, such term shall be limited to a locality with high unem-
    13  ployment that is also a locality with high youth poverty.
    14    (c)  A  qualified  employer shall be entitled to a tax credit equal to
    15  (1) five hundred dollars per month for up to six months for each  quali-
    16  fied  employee  the  employer  employs in a full-time job or two hundred
    17  fifty dollars per month for up to six months for each qualified employee
    18  the employer employs in a part-time job of at  least  twenty  hours  per
    19  week  or  ten  hours per week when the qualified employee is enrolled in
    20  high school full-time, (2)  one  thousand  dollars  for  each  qualified
    21  employee  who  is  employed for at least an additional six months by the
    22  qualified employer in a full-time job or five hundred dollars  for  each
    23  qualified employee who is employed for at least an additional six months
    24  by  the  qualified  employer in a part-time job of at least twenty hours
    25  per week or ten hours per week when the qualified employee  is  enrolled
    26  in high school full-time, and (3) an additional one thousand dollars for
    27  each  qualified employee who is employed for at least an additional year
    28  after the first year of  the  employee's  employment  by  the  qualified
    29  employer  in  a full-time job or five hundred dollars for each qualified
    30  employee who is employed for at least an additional year after the first
    31  year of the employee's employment by the qualified employer in  a  part-
    32  time  job  of  at least twenty hours per week or ten hours per week when
    33  the qualified employee is enrolled in high school  full  time.  The  tax
    34  credits  shall  be  claimed  by  the  qualified employer as specified in
    35  subdivision [forty-four] thirty-six of section two hundred  [ten]  ten-B
    36  and subsection (tt) of section six hundred six of the tax law.
    37    (d)  To  participate  in the [New York youth works tax credit] program
    38  established under this section, an employer must submit  an  application
    39  (in  a  form  prescribed  by the commissioner) to the commissioner after
    40  January first, two thousand twelve but no later than November thirtieth,
    41  two thousand twelve for program one, after January first,  two  thousand
    42  fourteen but no later than November thirtieth, two thousand fourteen for
    43  program two, after January first, two thousand fifteen but no later than
    44  November  thirtieth, two thousand fifteen for program three, after Janu-
    45  ary first, two thousand sixteen but no later  than  November  thirtieth,
    46  two  thousand  sixteen  for  program  four, and after January first, two
    47  thousand seventeen but no later than November  thirtieth,  two  thousand
    48  seventeen  for  program  five.  The qualified employees must start their
    49  employment on or after January first, two thousand twelve but  no  later
    50  than  December  thirty-first, two thousand twelve for program one, on or
    51  after January first, two thousand fourteen but no  later  than  December
    52  thirty-first, two thousand fourteen for program two, on or after January
    53  first, two thousand fifteen but no later than December thirty-first, two
    54  thousand fifteen for program three, on or after January first, two thou-
    55  sand  sixteen  but  no  later  than  December thirty-first, two thousand
    56  sixteen for program four, and on or after January  first,  two  thousand

        A. 6009                            35
 
     1  seventeen  but  no later than December thirty-first, two thousand seven-
     2  teen for program five. The commissioner shall establish  guidelines  and
     3  criteria  that  specify requirements for employers to participate in the
     4  program including criteria for certifying qualified employees. Any regu-
     5  lations that the commissioner determines are necessary may be adopted on
     6  an  emergency  basis notwithstanding anything to the contrary in section
     7  two hundred two of the state administrative procedure act. Such require-
     8  ments may include the types of industries that the employers are engaged
     9  in.  The commissioner may give preference to employers that are  engaged
    10  in  demand  occupations  or  industries,  or in regional growth sectors,
    11  including those identified by the regional  economic  development  coun-
    12  cils,  such  as  clean  energy,  healthcare,  advanced manufacturing and
    13  conservation. In addition, the commissioner  shall  give  preference  to
    14  employers  who  offer  advancement  and employee benefit packages to the
    15  qualified individuals.
    16    (e) If, after reviewing the application submitted by an employer,  the
    17  commissioner determines that such employer is eligible to participate in
    18  the  [New  York  youth  works tax credit] program established under this
    19  section, the commissioner shall issue  the  employer  a  certificate  of
    20  eligibility  that  establishes the employer as a qualified employer. The
    21  certificate of eligibility shall specify the maximum amount of [New York
    22  youth works] tax credit that the employer will be allowed to claim.
    23    (f) The commissioner shall annually publish a report. Such report must
    24  contain the names and addresses of any employer issued a certificate  of
    25  eligibility under this section, and the maximum amount of New York youth
    26  works  tax  credit  allowed to the employer as specified on such certif-
    27  icate of eligibility.
    28    § 2. The subdivision heading and paragraph (a) of  subdivision  36  of
    29  section  210-B of the tax law, as added by section 17 of part A of chap-
    30  ter 59 of the laws of 2014, is amended to read as follows:
    31    [New York] Urban youth [works] jobs program tax credit. (a) A taxpayer
    32  that has been certified by the commissioner  of  labor  as  a  qualified
    33  employer  pursuant  to  section  twenty-five-a of the labor law shall be
    34  allowed a credit against the tax imposed by this article  equal  to  (i)
    35  five  hundred  dollars per month for up to six months for each qualified
    36  employee the employer employs in a full-time job or  two  hundred  fifty
    37  dollars  per  month for up to six months for each qualified employee the
    38  employer employs in a part-time job of at least twenty hours per week or
    39  ten hours per week when the  qualified  employee  is  enrolled  in  high
    40  school  full-time, (ii) one thousand dollars for each qualified employee
    41  who is employed for at least an additional six months by  the  qualified
    42  employer  in  a full-time job or five hundred dollars for each qualified
    43  employee who is employed for at least an additional six  months  by  the
    44  qualified  employer in a part-time job of at least twenty hours per week
    45  or ten hours per week when the qualified employee is  enrolled  in  high
    46  school  full-time, and (iii) an additional one thousand dollars for each
    47  qualified employee who is employed for at least an additional year after
    48  the first year of the employee's employment by the qualified employer in
    49  a full-time job or five hundred dollars for each qualified employee  who
    50  is  employed for at least an additional year after the first year of the
    51  employee's employment by the qualified employer in a part-time job of at
    52  least twenty hours per week or ten hours per  week  when  the  qualified
    53  employee  is  enrolled  in  high  school full-time. For purposes of this
    54  subdivision, the term "qualified employee" shall have the  same  meaning
    55  as  set  forth  in subdivision (b) of section twenty-five-a of the labor
    56  law. The portion of the credit described in  subparagraph  (i)  of  this

        A. 6009                            36
 
     1  paragraph  shall  be allowed for the taxable year in which the wages are
     2  paid to  the  qualified  employee,  [and]  the  portion  of  the  credit
     3  described in subparagraph (ii) of this paragraph shall be allowed in the
     4  taxable  year  in  which  the  additional six month period ends, and the
     5  portion of the credit described in subparagraph (iii) of this  paragraph
     6  shall  be allowed in the taxable year in which the additional year after
     7  the first year of employment ends.
     8    § 3. The subdivision heading and paragraph 1  of  subsection  (tt)  of
     9  section  606 of the tax law, the subdivision heading as added by section
    10  3 of part D of chapter 56 of the laws of 2011 and paragraph 1 as amended
    11  by section 2 of part U of chapter 59 of the laws of 2014, are amended to
    12  read as follows:
    13    [New York] Urban youth [works] jobs program tax credit.  (1) A taxpay-
    14  er that has been certified by the commissioner of labor as  a  qualified
    15  employer  pursuant  to  section  twenty-five-a of the labor law shall be
    16  allowed a credit against the tax imposed by this article  equal  to  (A)
    17  five  hundred  dollars per month for up to six months for each qualified
    18  employee the employer employs in a full-time job or  two  hundred  fifty
    19  dollars  per  month for up to six months for each qualified employee the
    20  employer employs in a part-time job of at least twenty hours per week or
    21  ten hours per week when the  qualified  employee  is  enrolled  in  high
    22  school  full-time,  and  (B)  one  thousand  dollars  for each qualified
    23  employee who is employed for at least an additional six  months  by  the
    24  qualified  employer  in a full-time job or five hundred dollars for each
    25  qualified employee who is employed for at least an additional six months
    26  by the qualified employer in a part-time job of at  least  twenty  hours
    27  per  week  or ten hours per week when the qualified employee is enrolled
    28  in high school full-time, and (C) an additional one thousand dollars for
    29  each qualified employee who is employed for at least an additional  year
    30  after  the  first  year  of  the  employee's employment by the qualified
    31  employer in a full-time job or five hundred dollars for  each  qualified
    32  employee who is employed for at least an additional year after the first
    33  year  of  the employee's employment by the qualified employer in a part-
    34  time job of at least twenty hours per week or ten hours  per  week  when
    35  the  qualified employee is enrolled in high school full-time. A taxpayer
    36  that is a partner in a partnership, member of a limited liability compa-
    37  ny or shareholder in an S corporation that has  been  certified  by  the
    38  commissioner  of labor as a qualified employer pursuant to section twen-
    39  ty-five-a of the labor law shall be allowed its pro rata  share  of  the
    40  credit  earned by the partnership, limited liability company or S corpo-
    41  ration. For purposes of this subsection, the term  "qualified  employee"
    42  shall  have  the same meaning as set forth in subdivision (b) of section
    43  twenty-five-a of the labor law. The portion of the credit  described  in
    44  subparagraph (A) of this paragraph shall be allowed for the taxable year
    45  in which the wages are paid to the qualified employee, [and] the portion
    46  of  the  credit described in subparagraph (B) of this paragraph shall be
    47  allowed in the taxable year in which the  additional  six  month  period
    48  ends,  and  the  portion  of the credit described in subparagraph (C) of
    49  this paragraph shall be allowed in the taxable year in which  the  addi-
    50  tional year after the first year of employment ends.
    51    §  4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
    52  (i) of section 606 of the tax law, as amended by section 68 of part A of
    53  chapter 59 of the laws of 2014, is amended to read as follows:
 
    54  (xxxiii) [New York] Urban youth      Amount of credit under
    55  [works] jobs program                 subdivision thirty-six

        A. 6009                            37
 
     1  tax credit                           of section two hundred ten-B
 
     2    § 5. This act shall take effect immediately.
 
     3                                   PART N
 
     4    Section  1.  Subparagraph  (iv)  of  paragraph (a) of subdivision 1 of
     5  section 210 of the tax law, as amended by section 12 of part A of  chap-
     6  ter 59 of the laws of 2014, is amended to read as follows:
     7    (iv)  (A)  for taxable years beginning before January first, two thou-
     8  sand sixteen, if the business income base is not more than  two  hundred
     9  ninety  thousand dollars the amount shall be six and one-half percent of
    10  the business income base; if the business income base is more  than  two
    11  hundred  ninety thousand dollars but not over three hundred ninety thou-
    12  sand dollars the amount shall be the sum of (1) eighteen thousand  eight
    13  hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
    14  the business income base over two hundred ninety  thousand  dollars  but
    15  not  over three hundred ninety thousand dollars and (3) four and thirty-
    16  five hundredths percent of the excess of the business income  base  over
    17  three  hundred  fifty thousand dollars but not over three hundred ninety
    18  thousand dollars;
    19    (B) for taxable years beginning on or after January first,  two  thou-
    20  sand  sixteen  and  before January first, two thousand seventeen, if the
    21  business income base is  not  more  than  two  hundred  ninety  thousand
    22  dollars  the  amount shall be three and one-quarter percent of the busi-
    23  ness income base; if the business income base is more than  two  hundred
    24  ninety  thousand  dollars  but  not  over  three hundred ninety thousand
    25  dollars the amount shall be the sum of (1) nine  thousand  four  hundred
    26  twenty  five  dollars, (2) six and one-half percent of the excess of the
    27  business income base over two hundred ninety thousand  dollars  but  not
    28  over  three  hundred  ninety  thousand  dollars and (3) twenty-three and
    29  fifty-six hundredths percent of the excess of the business  income  base
    30  over  three  hundred  fifty  thousand dollars but not over three hundred
    31  ninety thousand dollars;
    32    (C) for taxable years beginning on or after January first,  two  thou-
    33  sand  seventeen  and before January first, two thousand eighteen, if the
    34  business income base is  not  more  than  two  hundred  ninety  thousand
    35  dollars  the amount shall be two and nine-tenths percent of the business
    36  income base; if the business income base is more than two hundred ninety
    37  thousand dollars but not over three hundred ninety thousand dollars  the
    38  amount  shall be the sum of (1) eight thousand four hundred ten dollars,
    39  (2) six and one-half percent of the excess of the business  income  base
    40  over  two  hundred  ninety  thousand  dollars but not over three hundred
    41  ninety thousand dollars and (3) twenty-six and one-tenth percent of  the
    42  excess  of  the  business  income base over three hundred fifty thousand
    43  dollars but not over three hundred ninety thousand dollars;
    44    (D) for taxable years beginning on or after January first,  two  thou-
    45  sand  eighteen, if the business income base is not more than two hundred
    46  ninety thousand dollars the amount shall be two and one-half percent  of
    47  the  business  income base; if the business income base is more than two
    48  hundred ninety thousand dollars but not over three hundred ninety  thou-
    49  sand  dollars  the  amount  shall  be  the sum of (1) seven thousand two
    50  hundred fifty dollars, (2) six and one-half percent of the excess of the
    51  business income base over two hundred ninety thousand  dollars  but  not
    52  over  three  hundred ninety thousand dollars and (3) twenty-nine percent

        A. 6009                            38
 
     1  of the excess of the business income base over three hundred fifty thou-
     2  sand dollars but not over three hundred ninety thousand dollars;
     3    § 2. This act shall take effect immediately.
 
     4                                   PART O
 
     5    Section  1.  The  economic  development law is amended by adding a new
     6  article 22 to read as follows:
 
     7                                 ARTICLE 22
     8                     EMPLOYEE TRAINING INCENTIVE PROGRAM
 
     9  Section 441. Definitions.
    10          442. Eligibility criteria.
    11          443. Application and approval process.
    12          444. Powers and duties of the commissioner.
    13          445. Recordkeeping requirements.
    14          446. Cap on tax credit.
 
    15    § 441. Definitions. As used in this article, the following terms shall
    16  have the following meanings:
    17    1. "Approved provider" means an entity meeting such criteria as  shall
    18  be  established  by the commissioner in regulations promulgated pursuant
    19  to this article, that may provide eligible training to  employees  of  a
    20  business   entity  participating  in  the  employee  training  incentive
    21  program. Such criteria shall ensure that any approved  provider  possess
    22  adequate credentials to provide the training described in an application
    23  by  a business entity to the commissioner to participate in the employee
    24  training incentive program.
    25    2. "Commissioner" means the commissioner of economic development.
    26    3. "Eligible training" means training provided by an approved provider
    27  that is:
    28    (a) to upgrade, retrain or improve the productivity of employees;
    29    (b) provided to employees filling net new jobs, or to existing employ-
    30  ees in connection with a significant capital investment by a participat-
    31  ing business entity;
    32    (c) determined by the commissioner to satisfy a business need  on  the
    33  part of a participating business entity;
    34    (d)  not  designed to train or upgrade skills as required by a federal
    35  or state entity;
    36    (e) not training the completion of which may result in the awarding of
    37  a license or certificate required by law in order to perform a job func-
    38  tion; and
    39    (f) not culturally focused training.
    40    4. "Net new job" means a job created in this state that:
    41    (a) is new to the state;
    42    (b) has not been transferred from  employment  with  another  business
    43  located  in  this state through an acquisition, merger, consolidation or
    44  other reorganization of businesses  or  the  acquisition  of  assets  of
    45  another  business,  and  has not been transferred from employment with a
    46  related person in this state;
    47    (c) is either a full-time wage-paying job or equivalent to a full-time
    48  wage-paying job requiring at least thirty-five hours per week;
    49    (d) is filled for more than six months;
    50    (e) is filled by a person who has received eligible training; and

        A. 6009                            39
 
     1    (f) is comprised of tasks the performance of which required the person
     2  filling the job to undergo eligible training.
     3    5.  "Significant  capital investment" means a capital investment of at
     4  least one million dollars in new business processes or equipment.
     5    6. "Strategic industry" means an industry in  this  state,  as  estab-
     6  lished  by  the commissioner in regulations promulgated pursuant to this
     7  article, based upon the following criteria:
     8    (a) shortages of workers trained to work within the industry;
     9    (b) technological disruption in the  industry,  requiring  significant
    10  capital investment for existing businesses to remain competitive;
    11    (c)  the  ability of businesses in the industry to relocate outside of
    12  the state in order to attract talent;
    13    (d) the potential to recruit minorities or women to be trained to work
    14  in the industry in which they are traditionally underrepresented;
    15    (e) the potential to create jobs  in  economically  distressed  areas,
    16  which  shall  be  based  on  criteria  indicative  of economic distress,
    17  including poverty rates, numbers of persons receiving public assistance,
    18  and unemployment rates; and
    19    (f) such other criteria as shall be developed by the  commissioner  in
    20  consultation with the commissioner of labor.
    21    § 442. Eligibility criteria. 1. In order to participate in the employ-
    22  ee training incentive program, a business entity must satisfy all of the
    23  following criteria:
    24    (a)  The  business entity must operate in the state predominantly in a
    25  strategic industry;
    26    (b) The business entity must demonstrate that it is obtaining eligible
    27  training from an approved provider;
    28    (c) The business entity must create at least ten net new jobs or  make
    29  a  significant capital investment in connection with the eligible train-
    30  ing; and
    31    (d) The  business  entity  must  be  in  compliance  with  all  worker
    32  protection  and  environmental  laws  and  regulations. In addition, the
    33  business entity may not owe past  due  state  taxes  or  local  property
    34  taxes.
    35    §  443.  Application  and  approval process. 1. A business entity must
    36  submit a completed application in such form and with such information as
    37  prescribed by the commissioner.
    38    2. As part of such application, each business entity must:
    39    (a) provide such documentation as  the  commissioner  may  require  in
    40  order for the commissioner to determine that the business entity intends
    41  to  procure eligible training for its employees from an approved provid-
    42  er;
    43    (b) agree to allow the department of taxation and finance to share its
    44  tax information with the department. However, any information shared  as
    45  a  result  of  this  agreement  shall not be available for disclosure or
    46  inspection under the state freedom of information law;
    47    (c) agree to allow the department  of  labor  to  share  its  tax  and
    48  employer  information  with  the  department.  However,  any information
    49  shared as a result of this agreement shall not be available for  disclo-
    50  sure or inspection under the state freedom of information law;
    51    (d)  allow  the  department and its agents access to any and all books
    52  and records the department may require to monitor compliance;
    53    (e) provide a clear and detailed presentation of all  related  persons
    54  to the applicant to assure the department that jobs are not being shift-
    55  ed within the state; and

        A. 6009                            40
 
     1    (f)  certify,  under  penalty  of  perjury,  that it is in substantial
     2  compliance with all environmental, worker protection, and local,  state,
     3  and federal tax laws.
     4    3.  The commissioner may approve an application from a business entity
     5  upon determining that such business entity meets the eligibility  crite-
     6  ria  established  in  section  four  hundred  forty-two of this article.
     7  Following approval by the commissioner of an application by  a  business
     8  entity  to  participate  in the employee training incentive program, the
     9  commissioner shall issue a certificate of tax  credit  to  the  business
    10  entity  upon  its  demonstrating  successful completion of such eligible
    11  training to the satisfaction of the commissioner.   The  amount  of  the
    12  credit shall be equal to fifty percent of eligible training costs, up to
    13  ten  thousand dollars per employee receiving eligible training.  The tax
    14  credits shall be claimed by  the  qualified  employer  as  specified  in
    15  subdivision  fifty  of section two hundred ten-B and subsection (ddd) of
    16  section six hundred six of the tax law.
    17    § 444. Powers and duties of  the  commissioner.  1.  The  commissioner
    18  shall,  in consultation with the commissioner of labor, promulgate regu-
    19  lations consistent with the purposes of this article that, notwithstand-
    20  ing any provisions to the contrary in the state administrative procedure
    21  act, may be adopted  on  an  emergency  basis.  Such  regulations  shall
    22  include,  but not be limited to, eligibility criteria for business enti-
    23  ties desiring to participate in the employee training incentive program,
    24  procedures for the receipt and evaluation of applications from  business
    25  entities to participate in the program, and such other provisions as the
    26  commissioner   deems  to  be  appropriate  in  order  to  implement  the
    27  provisions of this article.
    28    2. The commissioner shall, in  consultation  with  the  department  of
    29  taxation  and finance, develop a certificate of tax credit that shall be
    30  issued by the commissioner to participating business  entities.  Partic-
    31  ipants  may  be  required by the commissioner of taxation and finance to
    32  include the certificate of tax credit with their tax return  to  receive
    33  any tax benefits under this article.
    34    3.  The  commissioner  shall  solely  determine the eligibility of any
    35  applicant applying for entry into  the  program  and  shall  remove  any
    36  participant from the program for failing to meet any of the requirements
    37  set  forth  in subdivision one of section four hundred forty-two of this
    38  article or for making a material misrepresentation with respect  to  its
    39  participation in the employee training incentive program.
    40    §  445. Recordkeeping requirements. Each business entity participating
    41  in the employee training incentive program shall maintain  all  relevant
    42  records for the duration of its program participation plus three years.
    43    §  446.  Cap  on tax credit. The total amount of tax credits listed on
    44  certificates of tax credit issued by the commissioner  for  any  taxable
    45  year may not exceed five million dollars, and shall be allotted from the
    46  funds  available  for  tax  credits under the excelsior jobs program act
    47  pursuant to section three hundred fifty-nine of this chapter.
    48    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    49  sion 50 to read as follows:
    50    50.  Employee  training  incentive  program tax credit. (a) A taxpayer
    51  that has been approved by the commissioner of  economic  development  to
    52  participate  in  the  employee  training  incentive program and has been
    53  issued a certificate of tax credit  pursuant  to  section  four  hundred
    54  forty-three  of the economic development law shall be allowed to claim a
    55  credit against the tax imposed by this article.  The credit shall  equal
    56  fifty  percent  of a taxpayer's eligible training costs, up to ten thou-

        A. 6009                            41
 
     1  sand dollars per employee receiving eligible training. In no event shall
     2  a taxpayer be allowed a credit greater than the amount of credit  listed
     3  on  the certificate of tax credit issued by the commissioner of economic
     4  development. The credit will be allowed in the taxable year in which the
     5  eligible training for all employees is completed.
     6    (b) The credit allowed under this subdivision for any taxable year may
     7  not  reduce the tax due for that year to less than the amount prescribed
     8  in paragraph (d) of subdivision one of section two hundred ten  of  this
     9  article.    However, if the amount of credit allowed under this subdivi-
    10  sion for any taxable year reduces the tax to  such  amount,  or  if  the
    11  taxpayer  otherwise  pays  tax based on the fixed dollar minimum amount,
    12  any amount of credit thus not deductible in that taxable  year  will  be
    13  treated  as  an overpayment of tax to be credited or refunded in accord-
    14  ance with the provisions of section  one  thousand  eighty-six  of  this
    15  chapter.  Provided, however, the provisions of subsection (c) of section
    16  one thousand eighty-eight of this chapter notwithstanding,  no  interest
    17  will be paid thereon.
    18    (c)  The  taxpayer  may  be  required  to attach to its tax return its
    19  certificate of tax credit issued by the commissioner of economic  devel-
    20  opment  pursuant  to  section  four  hundred forty-three of the economic
    21  development law.  In no event shall the taxpayer  be  allowed  a  credit
    22  greater  than  the amount of the credit listed in the certificate of tax
    23  credit, or in the case of a taxpayer who is a partner in  a  partnership
    24  or  a  member  of a limited liability company, its pro rata share of the
    25  amount of credit listed in the certificate of tax credit issued  to  the
    26  partnership or limited liability company.
    27    §  3.  Section  606  of the tax law is amended to add a new subsection
    28  (ddd) to read as follows:
    29    (ddd) Employee training incentive program tax credit. (1)  A  taxpayer
    30  that  has  been  approved by the commissioner of economic development to
    31  participate in the employee training  incentive  program  and  has  been
    32  issued  a  certificate  of  tax  credit pursuant to section four hundred
    33  forty-three of the economic development law shall be allowed to claim  a
    34  credit  against the tax imposed by this article.  The credit shall equal
    35  fifty percent of a taxpayer's eligible training costs, up to  ten  thou-
    36  sand dollars per employee receiving eligible training. In no event shall
    37  a  taxpayer  be  allowed  a credit greater than the amount listed on the
    38  certificate of tax credit issued by the commissioner of economic  devel-
    39  opment.    In  the case of a taxpayer who is a partner in a partnership,
    40  member of a limited liability company or  shareholder  in  an  S  corpo-
    41  ration,  the  taxpayer shall be allowed its pro rata share of the credit
    42  earned by the partnership, limited liability company or  S  corporation.
    43  The  credit  will  be  allowed in the taxable year in which the eligible
    44  training for all employees is completed.
    45    (2) If the amount of the credit allowed under this subsection for  any
    46  taxable year exceeds the taxpayer's tax for the taxable year, the excess
    47  shall  be treated as an overpayment of tax to be credited or refunded in
    48  accordance with the provisions of section six hundred eighty-six of this
    49  article, provided, however, no interest will be paid thereon.
    50    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    51  of  the  tax  law  is  amended  by adding a new clause (xlii) to read as
    52  follows:
    53  (xlii) Employee training incentive   Amount of credit under
    54  program credit under                 subdivision fifty of
    55  subsection (ddd)                     section two hundred ten-B

        A. 6009                            42

     1    § 5. This act shall take effect immediately and apply to taxable years
     2  beginning on or after January 1, 2015.
 
     3                                   PART P
 
     4    Section  1. Subdivision 1 of section 184 of the tax law, as amended by
     5  section 62 of part A of chapter 59 of the laws of 2014,  is  amended  to
     6  read as follows:
     7    1.  The  term  "corporation"  as used in this section shall include an
     8  association, within the meaning of paragraph three of subsection (a)  of
     9  section  seventy-seven hundred one of the internal revenue code (includ-
    10  ing a limited liability company), a publicly traded partnership  treated
    11  as  a  corporation for purposes of the internal revenue code pursuant to
    12  section seventy-seven hundred four thereof.
    13    Every corporation, joint-stock company or association  formed  for  or
    14  principally  engaged in the conduct of canal, steamboat, ferry (except a
    15  ferry company operating between any of the boroughs of the city  of  New
    16  York under a lease granted by the city), express, navigation, pipe line,
    17  transfer,  baggage express, omnibus, taxicab, telegraph, mobile telecom-
    18  munications or local telephone business, or formed  for  or  principally
    19  engaged  in  the  conduct  of  two or more of such businesses, and every
    20  corporation, joint-stock company or association formed for or principal-
    21  ly engaged in the conduct of surface railroad, whether or  not  operated
    22  by  steam,  subway railroad, elevated railroad, palace car, sleeping car
    23  or trucking business or formed for or principally engaged in the conduct
    24  of two or more such businesses and which has made an  election  pursuant
    25  to  subdivision ten of section one hundred eighty-three of this article,
    26  and every other corporation, joint-stock company or  association  formed
    27  for  or principally engaged in the conduct of a transportation or trans-
    28  mission business (other than a  telephone  business),  except  a  corpo-
    29  ration,  joint-stock  company  or  association formed for or principally
    30  engaged in the conduct of a surface railroad, whether or not operated by
    31  steam, subway railroad, elevated railroad, palace car, sleeping  car  or
    32  trucking business or formed for or principally engaged in the conduct of
    33  two  or  more  of  such  businesses  and which has not made the election
    34  provided for in subdivision ten of section one hundred  eighty-three  of
    35  this  article, and, except a corporation, joint-stock company or associ-
    36  ation principally engaged in the  conduct  of  aviation  (including  air
    37  freight  forwarders  acting as principal and like indirect air carriers)
    38  and except a corporation principally engaged in  providing  telecommuni-
    39  cation  services between aircraft and dispatcher, aircraft and air traf-
    40  fic control or ground station and ground station (or any combination  of
    41  the  foregoing),  at  least  ninety percent of the voting stock of which
    42  corporation is owned, directly or indirectly, by air carriers and  which
    43  corporation's  principal  function is to fulfill the requirements of (i)
    44  the federal aviation administration (or the successor thereto)  or  (ii)
    45  the  international  civil aviation organization (or the successor there-
    46  to), relating  to  the  existence  of  a  communication  system  between
    47  aircraft  and  dispatcher,  aircraft  and  air traffic control or ground
    48  station and ground station (or any combination of the foregoing) for the
    49  purposes of air safety and navigation and for the privilege of  exercis-
    50  ing its corporate franchise, or of doing business, or of employing capi-
    51  tal,  or  of  owning or leasing property in this state in a corporate or
    52  organized capacity, or maintaining an office in this state, shall pay  a
    53  franchise  tax  which shall be equal to three-eighths of one percent for
    54  taxable years commencing after two thousand,  upon  its  gross  earnings

        A. 6009                            43
 
     1  from  all  sources  within  this  state;  except that, for taxable years
     2  commencing on or after January first,  nineteen  hundred  ninety,  every
     3  corporation, joint-stock company or association formed for or principal-
     4  ly engaged in the conduct of a mobile telecommunications business, local
     5  telephone  business,  or  telegraph  business  shall pay a franchise tax
     6  which shall be equal to three-eighths of one percent for  taxable  years
     7  commencing  after two thousand, upon its gross earnings from all sources
     8  within this state, except that a  corporation,  joint-stock  company  or
     9  association  formed for or principally engaged in the conduct of a local
    10  telephone business shall exclude the following earnings (but not in  any
    11  event  earnings  derived  by such taxpayer from the provision of carrier
    12  access services) derived  by  such  taxpayer  from  sales  for  ultimate
    13  consumption  of  telecommunications  service to its customers (i) thirty
    14  percent of separately charged intra-LATA toll service (which shall  also
    15  include  interregion regional calling plan service) and (ii) one hundred
    16  percent of separately charged inter-LATA,  interstate  or  international
    17  telecommunications  service;  and  except that corporations, joint-stock
    18  companies or associations formed  for  or  principally  engaged  in  the
    19  conduct  of  canal,  steamboat,  ferry (except a ferry company operating
    20  between any of the boroughs of the city of New York under a lease grant-
    21  ed by the city), navigation or any corporation formed for or principally
    22  engaged in the operation of vessels, shall pay  a  franchise  tax  which
    23  shall  be equal to three-quarters of one per centum upon its gross earn-
    24  ings from all sources within this state, excluding earnings derived from
    25  business of an interstate or foreign character; except that for  taxable
    26  years  beginning  in nineteen hundred ninety-seven or thereafter, in the
    27  case of a corporation, joint-stock company or  association  which,  with
    28  respect  to taxable years beginning after nineteen hundred ninety-seven,
    29  has made an election pursuant to subdivision ten of section one  hundred
    30  eighty-three  of  this  article  and  which is formed for or principally
    31  engaged in the conduct of surface railroad, whether or not  operated  by
    32  steam,  subway  railroad, elevated railroad, palace car, sleeping car or
    33  trucking business or formed for or principally engaged in the conduct of
    34  two or more of such businesses, such corporation, joint-stock company or
    35  association shall pay a franchise tax which shall  be  equal  to  three-
    36  eighths  of one percent for taxable years commencing after two thousand,
    37  upon its gross earnings from all sources  within  this  state,  provided
    38  that  in  the  case of a corporation, joint-stock company or association
    39  formed for or principally engaged in the conduct  of  surface  railroad,
    40  whether  or  not  operated by steam, subway railroad, elevated railroad,
    41  palace car or sleeping  car  business,  or  formed  for  or  principally
    42  engaged  in  the  conduct  of two or more of such businesses, such gross
    43  earnings shall not include earnings derived from business of  an  inter-
    44  state or foreign character.
    45    Provided, however, with respect to railroad, elevated railroad, palace
    46  car  or  sleeping  car  business  or any other corporation formed for or
    47  principally engaged in the conduct of a  railroad  business  and  canal,
    48  steamboat,  ferry  (except  a ferry company operating between any of the
    49  boroughs of the city of New York under a lease  granted  by  the  city),
    50  navigation  or  any corporation formed for or principally engaged in the
    51  operation of vessels where the gross earnings from  such  transportation
    52  business both originating and terminating within this state and travers-
    53  ing  both  this  state  and  another state or states or country shall be
    54  subject to the franchise tax imposed by this section (except where  such
    55  corporation, joint-stock company or association is formed for or princi-
    56  pally  engaged in the conduct of a railroad (including surface railroad,

        A. 6009                            44
 
     1  whether or not operated by steam, subway railroad or elevated railroad),
     2  palace car or sleeping car business or formed for or principally engaged
     3  in the conduct of two or more of such businesses, and has not  made  the
     4  election  provided  for  under  subdivision  ten  of section one hundred
     5  eighty-three of this article) and such earnings shall  be  allocated  to
     6  this  state in the same ratio that the mileage within the state bears to
     7  the total mileage of such business. Provided,  further,  a  corporation,
     8  joint-stock  company or association formed for or principally engaged in
     9  the transportation, transmission or distribution of gas, electricity  or
    10  steam  shall  not  be  subject  to tax under this section or section one
    11  hundred eighty-three of this article.
    12    The term "local telephone business" means the provision or  furnishing
    13  of  telecommunication services for hire wherein the service furnished by
    14  the provider thereof consists of carrier access service or  the  service
    15  originates  and  terminates  within  the same local access and transport
    16  area ("LATA"), a local access and transport area being  that  geographic
    17  area as established and approved, and as so set and in existence on July
    18  first,  nineteen  hundred  ninety-four,  pursuant to the modification of
    19  final judgment in United  States  v.  Western  Electric  Company  (civil
    20  action no. 82-0192) in the United States district court for the District
    21  of Columbia or within the LATA-like Rochester non-associated independent
    22  area.
    23    The  term  "mobile telecommunications business" means the provision or
    24  furnishing of  "mobile  telecommunications  service"  as  such  term  is
    25  defined  in  paragraph  twenty-four of subdivision (b) of section eleven
    26  hundred one of this chapter.
    27    The term "telecommunication services" shall have the meaning  ascribed
    28  to such term in section one hundred eighty-six-e of this article.
    29    §  2.  Subdivision  1  of  section 184-a of the tax law, as amended by
    30  section 2 of part C of chapter 60 of the laws of 2004, the opening para-
    31  graph as amended by section 63 of part A of chapter 59 of  the  laws  of
    32  2014, is amended to read as follows:
    33    1.  The  term  "corporation"  as used in this section shall include an
    34  association, within the meaning of paragraph three of subsection (a)  of
    35  section  seventy-seven hundred one of the internal revenue code (includ-
    36  ing a limited liability company),  and  a  publicly  traded  partnership
    37  treated  as  a  corporation  for  purposes  of the internal revenue code
    38  pursuant to section seventy-seven hundred four thereof.    Every  corpo-
    39  ration,  joint-stock  company  or  association formed for or principally
    40  engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
    41  ny operating between any of the boroughs of the city of New York under a
    42  lease granted by the city), express, navigation,  pipe  line,  transfer,
    43  baggage  express, omnibus, taxicab, telegraph, mobile telecommunications
    44  or local telephone business, or formed for or principally engaged in the
    45  conduct of two or more such businesses, and  every  corporation,  joint-
    46  stock  company  or  association formed for or principally engaged in the
    47  conduct of a surface railroad, whether or not operated by steam,  subway
    48  railroad,  elevated railroad, palace car, sleeping car or trucking busi-
    49  ness or principally engaged in the conduct of two  or  more  such  busi-
    50  nesses  and  which  has  made an election pursuant to subdivision ten of
    51  section one hundred eighty-three of this article, and every other corpo-
    52  ration, joint-stock company or association  formed  for  or  principally
    53  engaged  in  the  conduct  of  a transportation or transmission business
    54  (other than a telephone  business)  except  a  corporation,  joint-stock
    55  company  or association formed for or principally engaged in the conduct
    56  of a surface railroad, whether or not operated by  steam,  subway  rail-

        A. 6009                            45
 
     1  road,  elevated  railroad, palace car, sleeping car or trucking business
     2  or principally engaged in the conduct of two or more such businesses and
     3  which has not made the election  provided  for  in  subdivision  ten  of
     4  section  one  hundred  eighty-three of this article, and except a corpo-
     5  ration, joint-stock company or association principally  engaged  in  the
     6  conduct  of aviation (including air freight forwarders acting as princi-
     7  pal and like indirect air carriers) and except a corporation principally
     8  engaged in providing telecommunication  services  between  aircraft  and
     9  dispatcher,  aircraft  and  air  traffic  control  or ground station and
    10  ground station (or any combination of the foregoing),  at  least  ninety
    11  percent  of  the voting stock of which corporation is owned, directly or
    12  indirectly, by air carriers and which corporation's  principal  function
    13  is  to  fulfill  the  requirements  of (i) the federal aviation adminis-
    14  tration (or the successor  thereto)  or  (ii)  the  international  civil
    15  aviation organization (or the successor thereto), relating to the exist-
    16  ence of a communication system between aircraft and dispatcher, aircraft
    17  and  air  traffic  control  or ground station and ground station (or any
    18  combination of the foregoing) for the purposes of air safety and naviga-
    19  tion, shall pay for the privilege of exercising its corporate franchise,
    20  or of doing business, or of employing capital, or of owning  or  leasing
    21  property  in  the  metropolitan commuter transportation district in such
    22  corporate or organized capacity, or of maintaining  an  office  in  such
    23  district,  a  tax surcharge, which tax surcharge, in addition to the tax
    24  imposed by section one hundred eighty-four of  this  article,  shall  be
    25  computed  at the rate of seventeen percent of the tax imposed under such
    26  section for such taxable years or any part of such taxable  years  after
    27  the  deduction  of  any  credits otherwise allowable under this article;
    28  provided, however, that such rates of tax  surcharge  shall  be  applied
    29  only to that portion of the tax imposed under section one hundred eight-
    30  y-four  of  this  article  after  the deduction of any credits otherwise
    31  allowable under this article which is  attributable  to  the  taxpayer's
    32  business  activity carried on within the metropolitan commuter transpor-
    33  tation district. Provided, however, that for taxable years beginning  in
    34  two  thousand  and  thereafter, for purposes of this subdivision the tax
    35  imposed under section one hundred eighty-four of this article  shall  be
    36  deemed  to  have  been  imposed  at  the  rate  of three-quarters of one
    37  percent, except that in the case of a corporation,  joint-stock  company
    38  or association which has made an election pursuant to subdivision ten of
    39  section  one  hundred eighty-three of this article, for purposes of this
    40  subdivision the tax imposed under section  one  hundred  eighty-four  of
    41  this  article  shall  be deemed to have been imposed at the rate of six-
    42  tenths of one percent.
    43    The term "local telephone business" shall have  the  same  meaning  as
    44  such  term  is  used in section one hundred eighty-four of this article.
    45  The term "telecommunication services" shall have the meaning ascribed to
    46  such term in section one hundred eighty-six-e of this article.
    47    The term "mobile telecommunications business" means the  provision  or
    48  furnishing  of  "mobile  telecommunications  service"  as  such  term is
    49  defined in paragraph twenty-four of subdivision (b)  of  section  eleven
    50  hundred one of this chapter.
    51    § 3. This act shall take effect immediately and shall apply to taxable
    52  years beginning on and after January 1, 2015.
 
    53                                   PART Q

        A. 6009                            46
 
     1    Section  1. The tax law is amended by adding a new section 195 to read
     2  as follows:
     3    §  195.  Limitation on refunds or credits. Where any person subject to
     4  tax under this article passes through the economic incidence of any  tax
     5  imposed  by  this  article  as  a  separately stated amount on a bill or
     6  invoice furnished to its customer, no refund or credit shall be made  to
     7  such  person of any such amount unless such person shall first establish
     8  to the satisfaction of the commissioner that such amount had been repaid
     9  to such customer. For purposes of this section, the term "person"  shall
    10  have  the same meaning that is ascribed to it in paragraph (c) of subdi-
    11  vision one of section one hundred eighty-six-e of this article.
    12    § 2. This act shall take effect immediately and  shall  apply  to  any
    13  amended  return  or  claim  for refund submitted on and after January 1,
    14  2015.
 
    15                                   PART R
 
    16    Section 1. Section 31 of part H of chapter 1  of  the  laws  of  2003,
    17  amending  the  tax law relating to brownfield redevelopment tax credits,
    18  remediated brownfield credit for real property taxes for qualified sites
    19  and environmental remediation insurance credits, as amended  by  chapter
    20  474 of the laws of 2012, is amended to read as follows:
    21    §  31.  The  tax credits allowed under section 21, 22 or 23 of the tax
    22  law and the corresponding provisions in articles 9, 9-A, 22, 32  and  33
    23  of the tax law, as added by the provisions of sections one through twen-
    24  ty-nine  of  this  act,  shall  not  be  applicable if the [remediation]
    25  certificate of completion required to qualify for any of such credits is
    26  issued after [December 31, 2015] March 31, 2025.
    27    § 2. Subdivisions 1 and 3 of section 1285-q of the public  authorities
    28  law,  as  added by section 6 of part I of chapter 1 of the laws of 2003,
    29  are amended to read as follows:
    30    1. Subject to chapter fifty-nine of the  laws  of  two  thousand,  but
    31  notwithstanding any other provisions of law to the contrary, in order to
    32  assist the corporation in undertaking the administration and the financ-
    33  ing  of  hazardous  waste  site  remediation projects for payment of the
    34  state's share of the costs of the remediation of hazardous waste  sites,
    35  in  accordance  with title thirteen of article twenty-seven of the envi-
    36  ronmental conservation law  and  section  ninety-seven-b  of  the  state
    37  finance  law, and for payment of state costs associated with the remedi-
    38  ation of offsite contamination at significant threat sites  as  provided
    39  in  section 27-1411 of the environmental conservation law, and beginning
    40  in state fiscal year two thousand  fifteen--two  thousand  sixteen,  for
    41  environmental  restoration  projects  pursuant  to title five of article
    42  fifty-six of the environmental conservation law  provided  that  funding
    43  for  such  project shall not exceed ten percent of the funding appropri-
    44  ated for the purposes of  financing  hazardous  waste  site  remediation
    45  projects,  pursuant  to  title  thirteen  of article twenty-seven of the
    46  environmental conservation law, in any state  fiscal  year  pursuant  to
    47  capital appropriations made to the department of environmental conserva-
    48  tion,  the  director  of  the division of budget and the corporation are
    49  each authorized to enter into one or more  service  contracts,  none  of
    50  which  shall exceed twenty years in duration, upon such terms and condi-
    51  tions as the director and the corporation may agree, so as  to  annually
    52  provide  to  the  corporation  in the aggregate, a sum not to exceed the
    53  annual debt service payments and related expenses required for any bonds
    54  and notes authorized pursuant to section twelve hundred ninety  of  this

        A. 6009                            47

     1  title.  Any service contract entered into pursuant to this section shall
     2  provide that the obligation of the state to fund or to pay  the  amounts
     3  therein provided for shall not constitute a debt of the state within the
     4  meaning of any constitutional or statutory provision and shall be deemed
     5  executory  only  to  the  extent  of moneys available for such purposes,
     6  subject to annual appropriation by the  legislature.  Any  such  service
     7  contract  or  any payments made or to be made thereunder may be assigned
     8  and pledged by the corporation as security for its bonds and  notes,  as
     9  authorized pursuant to section twelve hundred ninety of this title.
    10    3.  The  maximum amount of bonds that may be issued for the purpose of
    11  financing hazardous waste site remediation  projects  and  environmental
    12  restoration  projects  authorized by this section shall not exceed [one]
    13  two billion two hundred million dollars and shall not exceed one hundred
    14  [twenty] million dollars for appropriations enacted for any state fiscal
    15  year, provided that the bonds not issued for such appropriations may  be
    16  issued  pursuant to reappropriation in subsequent fiscal years. No bonds
    17  shall be issued for the repayment of any new appropriation enacted after
    18  March thirty-first, two thousand [thirteen]  twenty-five  for  hazardous
    19  waste  site  remediation  projects  authorized  by this section. Amounts
    20  authorized to be issued by this section  shall  be  exclusive  of  bonds
    21  issued  to fund any debt service reserve funds, pay costs of issuance of
    22  such bonds, and bonds or notes issued to refund or otherwise repay bonds
    23  or notes previously issued. Such bonds  and  notes  of  the  corporation
    24  shall  not  be  a  debt  of the state, and the state shall not be liable
    25  thereon, nor shall they be payable out of any  funds  other  than  those
    26  appropriated  by  this  state  to  the  corporation for debt service and
    27  related expenses pursuant to any service contracts executed pursuant  to
    28  subdivision  one of this section, and such bonds and notes shall contain
    29  on the face thereof a statement to such effect.
    30    § 3. Section 56-0501 of the environmental conservation law,  as  added
    31  by chapter 413 of the laws of 1996, is amended to read as follows:
    32  § 56-0501. Allocation of moneys.
    33    1. Of the moneys received by the state from the sale of bonds pursuant
    34  to  the  Clean  Water/Clean  Air  Bond  Act of 1996, two hundred million
    35  dollars ($200,000,000) shall be available for disbursements for environ-
    36  mental restoration projects.
    37    2. Beginning in state fiscal year two thousand  fifteen--two  thousand
    38  sixteen  environmental  restoration  projects  may  be  funded using the
    39  proceeds  of  bonds  issued   pursuant   to   section   twelve   hundred
    40  eighty-five-q  of  the  public authorities law provided that funding for
    41  such projects shall conform to the limitations provided  in  subdivision
    42  one of such section.
    43    §  4.  This  act  shall take effect immediately and shall be deemed to
    44  have been in full force and effect on and after April 1, 2015.
 
    45                                   PART S
 
    46    Section 1. Paragraph (r) of section 104-A of the business  corporation
    47  law,  as  amended by chapter 172 of the laws of 2000, is amended to read
    48  as follows:
    49    (r) For filing a statement  or  amendment  pursuant  to  section  four
    50  hundred  eight  of  this  chapter  with  the  department  of state, nine
    51  dollars.
    52    § 2. Paragraphs (b) and (c) of section 306-A of  the  business  corpo-
    53  ration  law, as added by chapter 469 of the laws of 1997, are amended to
    54  read as follows:

        A. 6009                            48
 
     1    (b) Upon the failure of the designating corporation to file a  certif-
     2  icate of amendment or change providing for the designation by the corpo-
     3  ration  of the new address after the filing of a certificate of resigna-
     4  tion for receipt of process with the secretary of state,  its  authority
     5  to  do  business in this state shall be suspended unless the corporation
     6  has previously filed a statement  [of  addresses  and  directors]  under
     7  section four hundred eight of this chapter, in which case the address of
     8  the  principal  executive  office stated in the last filed statement [of
     9  addresses and directors], shall constitute the new address  for  process
    10  of  the corporation provided such address is different from the previous
    11  address for process, and the corporation shall not be deemed suspended.
    12    (c) The filing by the department of state of a certificate  of  amend-
    13  ment  or  change  or  statement under section four hundred eight of this
    14  chapter providing for a new address by a designating  corporation  shall
    15  annul  the  suspension  and  its  authority to do business in this state
    16  shall be restored and continue as if no suspension had occurred.
    17    § 3. Section 408 of the business corporation law, as added by  chapter
    18  55 of the laws of 1992, the section heading as amended by chapter 375 of
    19  the  laws  of  1998,  subparagraph (a) of paragraph 1 and paragraph 2 as
    20  amended by chapter 172 of the laws of 1999, subparagraph  (b)  of  para-
    21  graph  3  as  amended by chapter 170 of the laws of 1994, paragraph 6 as
    22  added by chapter 469 of the laws of 1997, and paragraph 7  as  added  by
    23  chapter 172 of the laws of 2000, is amended to read as follows:
    24  § 408. [Biennial statement] Statement; filing.
    25    1.  [Each] Except as provided in paragraph eight of this section, each
    26  domestic corporation, and each  foreign  corporation  authorized  to  do
    27  business  in  this  state, shall, during the applicable filing period as
    28  determined by subdivision  three  of  this  section,  file  a  statement
    29  setting forth:
    30    (a) The name and business address of its chief executive officer.
    31    (b) The street address of its principal executive office.
    32    (c)  The post office address within or without this state to which the
    33  secretary of state shall mail a copy of any process  against  it  served
    34  upon  him  or  her. Such address shall supersede any previous address on
    35  file with the department of state for this purpose.
    36    2. [Such] Except as provided in paragraph eight of this section,  such
    37  statement  shall  be made on forms prescribed by the secretary of state,
    38  and the information therein contained shall be given as of the  date  of
    39  the  execution  of  the  statement.  Such  statement  shall only request
    40  reporting of information required under paragraph one of  this  section.
    41  It shall be signed and delivered to the department of state.
    42    3.  [For]  Except  as provided in paragraph eight of this section, for
    43  the purpose of this section the applicable filing period  for  a  corpo-
    44  ration shall be the calendar month during which its original certificate
    45  of  incorporation  or application for authority were filed or the effec-
    46  tive date thereof if stated. The applicable  filing  period  shall  only
    47  occur:  (a)  annually,  during  the period starting on April 1, 1992 and
    48  ending on March 31, 1994; and (b) biennially, during a  period  starting
    49  on  April  1  and ending on March 31 thereafter. Those corporations that
    50  filed between April 1, 1992 and June 30, 1994 shall not be  required  to
    51  file such statements again until such time as they would have filed, had
    52  this subdivision not been amended.
    53    4.  The provisions of [subdivision eleven of section ninety-six of the
    54  executive law and] paragraph (g) of section one  hundred  four  of  this
    55  chapter shall not be applicable to filings pursuant to this section.

        A. 6009                            49
 
     1    5.  The  provisions  of  this  section and section 409 of this article
     2  shall not apply to a farm corporation. For the purposes of this subdivi-
     3  sion, the term "farm corporation" shall mean any domestic corporation or
     4  foreign corporation authorized to do business in this state  under  this
     5  chapter  engaged  in  the  production  of crops, livestock and livestock
     6  products on land used in agricultural production, as defined in  section
     7  301 of the agriculture and markets law. However, this exception for farm
     8  corporations shall not be applicable if an agreement is made pursuant to
     9  paragraph  eight  of this section so that these statements will be filed
    10  with the department of taxation and finance.
    11    6. No such statement shall be accepted for filing when  a  certificate
    12  of resignation for receipt of process has been filed under section three
    13  hundred  six-A  of  this  chapter  unless  the  corporation has stated a
    14  different address for process which does not include  the  name  of  the
    15  party  previously  designated in the address for process in such certif-
    16  icate.
    17    7. A domestic corporation or foreign corporation may amend its  state-
    18  ment  to change the information required by [subdivisions] subparagraphs
    19  (a) and (b) of paragraph one of this section. Such  amendment  shall  be
    20  made  on  forms prescribed by the secretary of state. It shall be signed
    21  and delivered to the department of state.
    22    8. (a) The commissioner of taxation and finance and the  secretary  of
    23  state may agree to allow corporations to provide the statement specified
    24  in  paragraph  one of this section on tax reports filed with the depart-
    25  ment of taxation and finance in lieu of biennial reports. This agreement
    26  may apply to tax reports due for tax years starting on or after  January
    27  first, two thousand sixteen.
    28    (b)  If  the agreement described in subparagraph (a) of this paragraph
    29  is made, each corporation required to file the  statement  specified  in
    30  paragraph  one of this section that is also subject to tax under article
    31  nine or nine-A of the tax law shall include such statement  annually  on
    32  its tax report filed with the department of taxation and finance in lieu
    33  of  filing  a  statement under this section with the department of state
    34  and in a manner prescribed by the commissioner of taxation and  finance.
    35  However,  each  corporation  required  to  file  a  statement under this
    36  section must continue to file the biennial statement  required  by  this
    37  section  with  the department of state until the corporation in fact has
    38  filed a tax report with the department  of  taxation  and  finance  that
    39  includes  all  required  information.  After  that time, the corporation
    40  shall continue to deliver annually the statement specified in  paragraph
    41  one  of this section on its tax report in lieu of the biennial statement
    42  required by this section.
    43    (c) If the agreement described in subparagraph (a) of  this  paragraph
    44  is  made,  the  department  of taxation and finance shall deliver to the
    45  department of state for filing the statement specified in paragraph  one
    46  of  this section for each corporation that files a tax report containing
    47  such statement. The department of taxation  and  finance  must,  to  the
    48  extent  feasible,  also  include  the  current  name of the corporation,
    49  department of state identification  number  for  such  corporation,  the
    50  name,  signature  and  capacity of the signer of the statement, name and
    51  street address of the filer of the statement, and the email address,  if
    52  any, of the filer of the statement.
    53    §  4. Section 409 of the business corporation law is amended by adding
    54  a new paragraph 4 to read as follows:

        A. 6009                            50
 
     1    4. This section shall not apply to a failure to file a  statement  for
     2  any  situation  for which a penalty under subdivision (v) of section one
     3  thousand eighty-five of the tax law is applicable.
     4    §  5.  Subdivision (e) of section 301 of the limited liability company
     5  law, as amended by chapter 643 of the laws of 1995, is amended  to  read
     6  as follows:
     7    (e)  [Every]  (1)  Except  as  otherwise provided in this subdivision,
     8  every limited liability company to which  this  chapter  applies,  shall
     9  biennially  in the calendar month during which its articles of organiza-
    10  tion or application for authority were filed, or effective date  thereof
    11  if  stated, file on forms prescribed by the secretary of state, a state-
    12  ment setting forth the post office address within or without this  state
    13  to  which  the  secretary  of  state  shall  mail  a copy of any process
    14  accepted against it served upon him or her. Such address shall supersede
    15  any previous address on file with  the  department  of  state  for  this
    16  purpose.
    17    (2)  The  commissioner  of  taxation  and finance and the secretary of
    18  state may agree to allow limited  liability  companies  to  include  the
    19  statement  specified in paragraph one of this subdivision on tax reports
    20  filed with the department of taxation and finance in  lieu  of  biennial
    21  reports  and  in a manner prescribed by the commissioner of taxation and
    22  finance. If this agreement is made, starting with taxable  years  begin-
    23  ning  on  or  after  January  first,  two thousand sixteen, each limited
    24  liability company required to file the statement specified in  paragraph
    25  one  of  this  subdivision  that is subject to the filing fee imposed by
    26  paragraph three of subsection (c) of section six hundred fifty-eight  of
    27  the  tax  law  shall  provide  such statement annually on its filing fee
    28  payment form filed with the department of taxation and finance  in  lieu
    29  of  filing  a statement under this section with the department of state.
    30  However, each limited liability company required  to  file  a  statement
    31  under this section must continue to file the biennial statement required
    32  by this section with the department of state until the limited liability
    33  company  in fact has filed a filing fee payment form with the department
    34  of taxation and finance that includes all  required  information.  After
    35  that time, the limited liability company shall continue to provide annu-
    36  ally the statement specified in paragraph one of this subdivision on its
    37  filing  fee  payment  form in lieu of the biennial statement required by
    38  this subdivision.
    39    (3) If the agreement described in paragraph two of this subdivision is
    40  made, the department of  taxation  and  finance  shall  deliver  to  the
    41  department  of  state  the  statement specified in paragraph one of this
    42  subdivision contained on filing fee payment  forms.  The  department  of
    43  taxation  and  finance  must,  to  the extent feasible, also include the
    44  current name of the limited liability company, department of state iden-
    45  tification number for such limited liability company, the  name,  signa-
    46  ture  and  capacity  of  the  signer  of  the statement, name and street
    47  address of the filer of the statement, and the email address, if any, of
    48  the filer of the statement.
    49    § 6. Subdivision (c) of section 301-A of the limited liability company
    50  law, as added by chapter 448 of the laws of 1998, is amended to read  as
    51  follows:
    52    (c)  The  filing by the department of state of a certificate of amend-
    53  ment or certificate of change or the filing of a statement under section
    54  three hundred one of this article providing  for  a  new  address  by  a
    55  designating limited liability company shall annul the suspension and its

        A. 6009                            51
 
     1  authority  to  do business in this state shall be restored and continued
     2  as if no suspension had occurred.
     3    §  7. Subdivision (c) of section 1101 of the limited liability company
     4  law is amended to read as follows:
     5    (c) For the statement of address of the post office address  to  which
     6  the  secretary  of  state  shall  mail a copy of any process against the
     7  limited liability company served upon him or  her  pursuant  to  section
     8  three  hundred  one  of  this chapter, nine dollars.  This fee shall not
     9  apply if this statement is filed directly with the department  of  taxa-
    10  tion and finance.
    11    §  8.  Subdivision  (g) of section 121-1500 of the partnership law, as
    12  amended by chapter 643 of the laws  of  1995,  is  amended  to  read  as
    13  follows:
    14    (g)  Each registered limited liability partnership shall, within sixty
    15  days prior to the fifth anniversary of the effective date of its  regis-
    16  tration  and  every  five  years  thereafter, furnish a statement to the
    17  department of state setting forth: (i) the name of the registered limit-
    18  ed liability partnership, (ii) the address of the  principal  office  of
    19  the  registered  limited  liability  partnership,  (iii) the post office
    20  address within or without this state to which  the  secretary  of  state
    21  shall  mail a copy of any process accepted against it served upon him or
    22  her, which address shall supersede any previous address on file with the
    23  department of state for this purpose, and (iv) a statement  that  it  is
    24  eligible  to  register  as  a  registered  limited liability partnership
    25  pursuant to subdivision (a) of this  section.  The  statement  shall  be
    26  executed  by  one  or  more partners of the registered limited liability
    27  partnership. The statement shall be  accompanied  by  a  fee  of  twenty
    28  dollars  if  submitted  directly to the department of state. The commis-
    29  sioner of taxation and finance and the secretary of state may  agree  to
    30  allow registered limited liability partnerships to provide the statement
    31  specified  in  this subdivision on tax reports filed with the department
    32  of taxation and finance in lieu of statements filed  directly  with  the
    33  secretary  of  state  and  in a manner prescribed by the commissioner of
    34  taxation and finance. If this agreement is made, starting  with  taxable
    35  years  beginning  on  or after January first, two thousand sixteen, each
    36  limited liability partnership required to file the  statement  specified
    37  in  this  subdivision that is subject to the filing fee imposed by para-
    38  graph three of subsection (c) of section six hundred fifty-eight of  the
    39  tax  law shall provide such statement annually on its filing fee payment
    40  form filed with the department of taxation and finance in lieu of filing
    41  a statement under this subdivision with the department of state.  Howev-
    42  er,  each  registered  limited  liability partnership required to file a
    43  statement under this section must continue to file a statement with  the
    44  department  of  state  as  required by this section until the registered
    45  limited liability partnership in fact has filed  a  filing  fee  payment
    46  form  with  the  department  of  taxation  and finance that includes all
    47  required information. After that time, the limited liability partnership
    48  shall continue to provide  annually  the  statement  specified  in  this
    49  subdivision  on  its  filing  fee  payment form in lieu of the statement
    50  required by this subdivision. The commissioner of taxation  and  finance
    51  shall  deliver  the completed statement specified in this subdivision to
    52  the department of state for filing.   The  department  of  taxation  and
    53  finance  must, to the extent feasible, also include in such delivery the
    54  current name of the registered limited liability partnership, department
    55  of state identification number for  such  registered  limited  liability
    56  partnership,  the  name,  signature  and  capacity  of the signer of the

        A. 6009                            52
 
     1  statement, name and street address of the filer of  the  statement,  and
     2  the  email  address, if any, of the filer of the statement.  If a regis-
     3  tered limited liability partnership shall not timely file the  statement
     4  required  by  this  subdivision, the department of state may, upon sixty
     5  days' notice mailed to the address of such registered limited  liability
     6  partnership  as  shown  in the last registration or statement or certif-
     7  icate of amendment filed by such registered limited  liability  partner-
     8  ship,  make a proclamation declaring the registration of such registered
     9  limited liability partnership to be revoked pursuant  to  this  subdivi-
    10  sion.  The  department  of state shall file the original proclamation in
    11  its office and shall publish a copy thereof in  the  state  register  no
    12  later  than  three  months following the date of such proclamation. Upon
    13  the publication of such proclamation in the manner aforesaid, the regis-
    14  tration of each registered limited liability partnership named  in  such
    15  proclamation  shall be deemed revoked without further legal proceedings.
    16  Any registered limited liability partnership whose registration  was  so
    17  revoked  may  file  in the department of state a [certificate of consent
    18  certifying that either a] statement required by  this  subdivision  [has
    19  been  filed  or  accompanies  the  certificate  of  consent and all fees
    20  imposed under this chapter on the registered limited liability  partner-
    21  ship have been paid]. The filing of such [certificate of consent] state-
    22  ment  shall have the effect of annulling all of the proceedings thereto-
    23  fore taken for the revocation of the  registration  of  such  registered
    24  limited  liability partnership under this subdivision and (1) the regis-
    25  tered limited liability partnership shall thereupon  have  such  powers,
    26  rights,  duties and obligations as it had on the date of the publication
    27  of the proclamation, with the same force and effect as if such proclama-
    28  tion had not been made or published and (2) such publication  shall  not
    29  affect the applicability of the provisions of subdivision (b) of section
    30  twenty-six  of  this  chapter  to  any  debt,  obligation  or  liability
    31  incurred, created or assumed from the date of publication of the procla-
    32  mation through the date of the filing of the  [certificate  of  consent.
    33  The  filing of a certificate of consent shall be accompanied by a fee of
    34  fifty dollars and if accompanied by a statement,  the  fee  required  by
    35  this subdivision] statement with the department of state.  If, after the
    36  publication  of such proclamation, it shall be determined by the depart-
    37  ment of state that the name of any registered limited liability partner-
    38  ship was erroneously included in such proclamation,  the  department  of
    39  state  shall  make  appropriate  entry on its records, which entry shall
    40  have the effect of annulling all of the  proceedings  theretofore  taken
    41  for  the  revocation  of  the  registration  of  such registered limited
    42  liability partnership under this subdivision  and  (A)  such  registered
    43  limited liability partnership shall have such powers, rights, duties and
    44  obligations  as  it  had on the date of the publication of the proclama-
    45  tion, with the same force and effect as if  such  proclamation  had  not
    46  been  made  or  published  and (B) such publication shall not affect the
    47  applicability of the provisions of subdivision (b) of section twenty-six
    48  of this chapter to any debt, obligation or liability  incurred,  created
    49  or  assumed from the date of publication of the proclamation through the
    50  date of the making of the entry on the  records  of  the  department  of
    51  state.  Whenever a registered limited liability partnership whose regis-
    52  tration was revoked shall have filed a [certificate of  consent]  state-
    53  ment pursuant to this subdivision or if the name of a registered limited
    54  liability  partnership  was  erroneously  included in a proclamation and
    55  such proclamation was annulled, the department of state shall publish  a
    56  notice thereof in the state register.

        A. 6009                            53
 
     1    § 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part-
     2  nership law, as amended by chapter 643 of the laws of 1995 and as desig-
     3  nated by chapter 767 of the laws of 2005, is amended to read as follows:
     4    (I)  Each  New  York  registered foreign limited liability partnership
     5  shall, within sixty days prior to the fifth anniversary of the effective
     6  date of its notice and every five years thereafter, furnish a  statement
     7  to the department of state setting forth:
     8    (i)  the  name  under  which  the  New York registered foreign limited
     9  liability partnership is carrying on or conducting or transacting  busi-
    10  ness  or  activities  in  this  state, (ii) the address of the principal
    11  office of the New York registered foreign limited liability partnership,
    12  (iii) the post office address within or without this state to which  the
    13  secretary  of state shall mail a copy of any process accepted against it
    14  served upon him or her,  which  address  shall  supersede  any  previous
    15  address  on file with the department of state for this purpose, and (iv)
    16  a statement that it is a  foreign  limited  liability  partnership.  The
    17  statement  shall  be  executed  by  one or more partners of the New York
    18  registered foreign limited liability partnership. The statement shall be
    19  accompanied by a fee of fifty  dollars  if  submitted  directly  to  the
    20  department  of  state.  The commissioner of taxation and finance and the
    21  secretary of state may agree to allow New York registered foreign limit-
    22  ed liability partnerships to provide the  statement  specified  in  this
    23  paragraph  on  tax  reports  filed  with  the department of taxation and
    24  finance in lieu of statements filed directly with the secretary of state
    25  and in a manner prescribed by the commissioner of taxation and  finance.
    26  If  this  agreement is made, starting with taxable years beginning on or
    27  after January first, two thousand  sixteen,  each  New  York  registered
    28  foreign  limited  liability  partnership  required to file the statement
    29  specified in this paragraph that is subject to the filing fee imposed by
    30  paragraph three of subsection (c) of section six hundred fifty-eight  of
    31  the  tax  law  shall  provide  such statement annually on its filing fee
    32  payment form filed with the department of taxation and finance  in  lieu
    33  of  filing a statement under this paragraph directly with the department
    34  of state. However, each New York registered  foreign  limited  liability
    35  partnership required to file a statement under this section must contin-
    36  ue  to file a statement with the department of state as required by this
    37  section until the New York registered foreign limited liability partner-
    38  ship in fact has filed a filing fee payment form with the department  of
    39  taxation  and finance that includes all required information. After that
    40  time, the New York  registered  foreign  limited  liability  partnership
    41  shall continue to provide annually the statement specified in this para-
    42  graph  on  its  filing  fee payment form in lieu of filing the statement
    43  required by this paragraph directly with the department  of  state.  The
    44  commissioner  of taxation and finance shall deliver the completed state-
    45  ment specified in this paragraph to the department of state for  filing.
    46  The  department  of  taxation  and finance must, to the extent feasible,
    47  also include in such delivery the current name of the  New  York  regis-
    48  tered  foreign  limited liability partnership, department of state iden-
    49  tification number for such New York registered foreign limited liability
    50  partnership, the name, signature and  capacity  of  the  signer  of  the
    51  statement,  name  and  street address of the filer of the statement, and
    52  the email address, if any, of the filer of the statement. If a New  York
    53  registered  foreign  limited liability partnership shall not timely file
    54  the statement required by this subdivision, the department of state may,
    55  upon sixty days' notice mailed to the address of such  New  York  regis-
    56  tered  foreign limited liability partnership as shown in the last notice

        A. 6009                            54
 
     1  or statement or certificate of amendment filed by such New  York  regis-
     2  tered foreign limited liability partnership, make a proclamation declar-
     3  ing  the  status  of  such New York registered foreign limited liability
     4  partnership  to  be revoked pursuant to this subdivision. The department
     5  of state shall file the original proclamation in its  office  and  shall
     6  publish  a copy thereof in the state register no later than three months
     7  following the date of such proclamation. Upon the  publication  of  such
     8  proclamation in the manner aforesaid, the status of each New York regis-
     9  tered  foreign  limited liability partnership named in such proclamation
    10  shall be deemed revoked without further legal proceedings. Any New  York
    11  registered  foreign  limited  liability  partnership whose status was so
    12  revoked may file in the department of state a  [certificate  of  consent
    13  certifying  that  either  a] statement required by this subdivision [has
    14  been filed or accompanies  the  certificate  of  consent  and  all  fees
    15  imposed  under  this  chapter on the New York registered foreign limited
    16  liability partnership have been paid]. The filing of  such  [certificate
    17  of  consent]  statement  shall  have  the effect of annulling all of the
    18  proceedings theretofore taken for the revocation of the status  of  such
    19  New  York  registered  foreign  limited liability partnership under this
    20  subdivision and (1) the New York registered  foreign  limited  liability
    21  partnership  shall  thereupon have such powers, rights, duties and obli-
    22  gations as it had on the date of the publication  of  the  proclamation,
    23  with the same force and effect as if such proclamation had not been made
    24  or published and (2) such publication shall not affect the applicability
    25  of the laws of the jurisdiction governing the agreement under which such
    26  New  York  registered foreign limited liability partnership is operating
    27  (including laws governing the liability of partners) to any debt,  obli-
    28  gation or liability incurred, created or assumed from the date of publi-
    29  cation  of  the  proclamation  through  the  date  of  the filing of the
    30  [certificate of consent. The filing of a certificate of consent shall be
    31  accompanied by a fee of fifty dollars and if accompanied by a statement,
    32  the fee required by this subdivision] statement with the  department  of
    33  state.    If,  after  the  publication of such proclamation, it shall be
    34  determined by the department of state that the  name  of  any  New  York
    35  registered   foreign   limited  liability  partnership  was  erroneously
    36  included in such proclamation, the department of state shall make appro-
    37  priate entry on its records,  which  entry  shall  have  the  effect  of
    38  annulling all of the proceedings theretofore taken for the revocation of
    39  the  status  of such New York registered foreign limited liability part-
    40  nership under this subdivision and (1) such New York registered  foreign
    41  limited liability partnership shall have such powers, rights, duties and
    42  obligations  as  it  had on the date of the publication of the proclama-
    43  tion, with the same force and effect as if  such  proclamation  had  not
    44  been  made  or  published  and (2) such publication shall not affect the
    45  applicability of the laws of the jurisdiction  governing  the  agreement
    46  under  which such New York registered foreign limited liability partner-
    47  ship is operating (including laws governing the liability  of  partners)
    48  to  any  debt, obligation or liability incurred, created or assumed from
    49  the date of publication of the proclamation  through  the  date  of  the
    50  making  of the entry on the records of the department of state. Whenever
    51  a New York registered foreign limited liability partnership whose status
    52  was revoked shall have filed a [certificate of consent] statement pursu-
    53  ant to this subdivision or if the name of a New York registered  foreign
    54  limited liability partnership was erroneously included in a proclamation
    55  and  such  proclamation  was  annulled,  the  department  of state shall
    56  publish a notice thereof in the state register.

        A. 6009                            55
 
     1    § 10. Subdivision (d) of section 121-1506 of the partnership  law,  as
     2  amended  by  chapter  172  of  the  laws  of 1999, is amended to read as
     3  follows:
     4    (d)  The  filing by the department of state of a certificate of amend-
     5  ment or the filing of a statement providing  for  a  new  address  by  a
     6  designating limited liability partnership shall annul the suspension and
     7  its authority to do business in this state shall be restored and contin-
     8  ued as if no suspension had occurred.
     9    §  11.  Section 192 of the tax law is amended by adding a new subdivi-
    10  sion 5 to read as follows:
    11    5. Notwithstanding the provisions of section two hundred two  of  this
    12  article,  the  commissioner  shall  provide  the  statements  and  other
    13  required information requested on tax reports under section four hundred
    14  eight of the business corporation law to  the  secretary  of  state  for
    15  filing.  Such provision may also include a copy or image of that portion
    16  of the report solely pertinent to such information to the extent  feasi-
    17  ble. The commissioner may also provide information on noncompliance.
    18    §  12.  Section 211 of the tax law is amended by adding a new subdivi-
    19  sion 15 to read as follows:
    20    15. Notwithstanding  the  provisions  of  subdivision  eight  of  this
    21  section,  the  commissioner  shall  provide  the  statements  and  other
    22  required information requested on tax reports under section four hundred
    23  eight of the business corporation law to  the  secretary  of  state  for
    24  filing.  Such provision may also include a copy or image of that portion
    25  of the report solely pertinent to such information to the extent  feasi-
    26  ble. The commissioner any also provide information on noncompliance.
    27    §  13.  Paragraph 3 of subsection (c) of section 658 of the tax law is
    28  amended by adding a new subparagraph (E) to read as follows:
    29    (E) Notwithstanding the provisions of subsection (e)  of  section  six
    30  hundred ninety-seven of this article, the commissioner shall provide the
    31  statements  and  other  required  information included on the filing fee
    32  payment form under section three hundred one of  the  limited  liability
    33  company law, subdivision (f) of section 121-1502 of the partnership law,
    34  and  subdivision  (d)  of section 121-1506 of the partnership law to the
    35  secretary of state for filing.  Such provision may also include  a  copy
    36  or image of that portion of the report solely pertinent to such informa-
    37  tion  to the extent feasible. The commissioner may also provide informa-
    38  tion on noncompliance.
    39    § 14. Section 1085  of  the  tax  law  is  amended  by  adding  a  new
    40  subsection (v) to read as follows:
    41    (v)  Failure  to  supply  all  the  information required or to provide
    42  correct information in secretary of state statements. Unless it is shown
    43  that such failure to provide the statement and information  required  by
    44  section  four  hundred  eight  of the business corporation law is due to
    45  reasonable cause and not to willful neglect, there  shall,  upon  notice
    46  and demand by the commissioner and in the same manner as tax, be paid by
    47  the  taxpayer  failing  to  supply  complete  and correct information, a
    48  penalty of two hundred fifty dollars per taxpayer  required  to  provide
    49  such information.
    50    § 15. Section 685 of the tax law is amended by adding a new subsection
    51  (dd) to read as follows:
    52    (dd)  Failure  to  supply  all  the information required or to provide
    53  correct information in secretary of state statements. Unless it is shown
    54  that such failure to provide the statement and information  required  by
    55  subdivision  (e)  of  section three hundred one of the limited liability
    56  company law, subdivision (f) of section 121-1502 of the partnership law,

        A. 6009                            56
 
     1  or subdivision (d) of section 121-1506 of the partnership law is due  to
     2  reasonable  cause  and  not to willful neglect, there shall, upon notice
     3  and demand by the commissioner and in the same manner as tax, be paid by
     4  the  taxpayer  failing  to  supply  complete  and correct information, a
     5  penalty of two hundred and fifty dollars per limited  liability  company
     6  required to provide such information on its filing fee payment form.
     7    § 16. This act shall take effect immediately.
 
     8                                   PART T
 
     9    Section  1.  Paragraph  (a) of subdivision 5 of section 208 of the tax
    10  law, as amended by section 4 of part A of chapter  59  of  the  laws  of
    11  2014, is amended to read as follows:
    12    (a) The term "investment capital" means investments in stocks that are
    13  held  by  the  taxpayer for more than six consecutive months but are not
    14  [held for sale to customers] and have never been used by the taxpayer in
    15  the regular course of business, or, if the taxpayer makes  the  election
    16  provided for in subparagraph one of paragraph (a) of subdivision five of
    17  section  two  hundred ten-A of this article, are not qualified financial
    18  instruments as described in subdivision  five  of  section  two  hundred
    19  ten-A  of  this  article.  Stock  in  a corporation that is conducting a
    20  unitary business with the taxpayer,  stock  in  a  corporation  that  is
    21  included in a combined report with the taxpayer pursuant to the commonly
    22  owned  group  election in subdivision three of section two hundred ten-C
    23  of this article, and stock issued by the taxpayer shall  not  constitute
    24  investment  capital.  For  purposes of this subdivision, if the taxpayer
    25  owns or controls, directly or indirectly, less than  twenty  percent  of
    26  the voting power of the stock of a corporation, that corporation will be
    27  presumed  to be conducting a business that is not unitary with the busi-
    28  ness of the taxpayer.
    29    § 2. Paragraph (d) of subdivision 5 of section 208 of the tax law,  as
    30  added  by  section  4  of  part  A of chapter 59 of the laws of 2014, is
    31  amended to read as follows:
    32    (d) If a taxpayer acquires stock during the second half of its taxable
    33  year and owns that stock on the last day of the taxable year, it will be
    34  presumed, solely for purposes of determining whether that  stock  should
    35  be  classified  as  investment  capital  after  it is acquired, that the
    36  taxpayer held that stock for more than six consecutive months during the
    37  taxable year. This presumption shall apply only if the taxpayer in  fact
    38  owns  the stock at the time it files its original report for the taxable
    39  year in which it acquires the stock. However, if the taxpayer  does  not
    40  in  fact hold that stock as investment capital for more than six consec-
    41  utive months, the taxpayer must increase its total business  capital  in
    42  the  immediately  succeeding  taxable  year  by  the  amount included in
    43  investment capital for that stock, net of any  liabilities  attributable
    44  to  that stock computed as provided in paragraph (b) of this subdivision
    45  and must increase its business  income  in  the  immediately  succeeding
    46  taxable  year  by  the amount of income and net gains (but not less than
    47  zero) from that stock included in investment income, less  any  interest
    48  deductions  directly  or  indirectly  attributable  to  that  stock,  as
    49  provided in subdivision six of this section.
    50    § 3. Paragraph (e) of subdivision 5 of section 208 of the tax law,  as
    51  added  by  section  4  of  part  A of chapter 59 of the laws of 2014, is
    52  amended to read as follows:
    53    (e) When income or gain from  a  debt  obligation  or  other  security
    54  cannot  be  apportioned  to  the  state  using  the [business allocation

        A. 6009                            57

     1  percentage] apportionment factor determined under  section  two  hundred
     2  ten-A  of this article as a result of United States constitutional prin-
     3  ciples, the debt obligation  or  other  security  will  be  included  in
     4  investment capital.
     5    §  4.  Paragraph (f) of subdivision 5 of section 208 of the tax law is
     6  REPEALED.
     7    § 5. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
     8  amended  by  section  4  of part A of chapter 59 of the laws of 2014, is
     9  amended to read as follows:
    10    (a) The term "investment income" means income, including capital gains
    11  in excess of capital losses, from  investment  capital,  to  the  extent
    12  included  in computing entire net income, less, (i) in the discretion of
    13  the commissioner, any interest deductions allowable in computing  entire
    14  net  income  which are directly or indirectly attributable to investment
    15  capital or investment income, [and (ii) the taxpayer's  loss,  deduction
    16  and/or  expense  attributable  to  any  transaction, or series of trans-
    17  actions, entered into to manage the risk of price  changes  or  currency
    18  fluctuations with respect to any item of investment capital that is held
    19  or  to be held by the taxpayer, or the aggregate investment capital that
    20  is held or to be held by the taxpayer, if all of the risk, or all but  a
    21  de  minimis  amount of the risk, is with respect to investment capital,]
    22  provided, however, that in no case shall investment income exceed entire
    23  net income. (ii) If the amount of interest deductions  subtracted  under
    24  [subparagraph  (i)  or subparagraph (ii) of this paragraph or under both
    25  of those subparagraphs]  subparagraph  (i)  of  this  paragraph  exceeds
    26  investment income, the excess of such amount over investment income must
    27  be added back to entire net income.
    28    §  6.  Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r)
    29  of subdivision 9 of section 208 of the tax law, as added by section 4 of
    30  part A of chapter 59 of the laws of 2014, is amended to read as follows:
    31    (ii) Measurement of assets. For purposes of this paragraph: (I)  Total
    32  assets  are those assets that are properly reflected on a balance sheet,
    33  computed in the same manner as is required by the banking  regulator  of
    34  the taxpayers included in the combined return.
    35    (II)  Assets  will only be included if the income or expenses of which
    36  are properly reflected (or would have been  properly  reflected  if  not
    37  fully  depreciated  or expensed, or depreciated or expensed to a nominal
    38  amount) in the computation of the combined group's entire net income for
    39  the taxable year. Assets will not include deferred tax assets and intan-
    40  gible assets identified as "goodwill".
    41    (III) Tangible real and personal property, such  as  buildings,  land,
    42  machinery,  and equipment shall be valued at cost. Leased assets will be
    43  valued at the annual lease payment multiplied by eight. Intangible prop-
    44  erty, such as loans and investments,  shall  be  valued  at  book  value
    45  exclusive of reserves.
    46    (IV)  Intercorporate  stockholdings  and  bills,  notes  and  accounts
    47  receivable, and other intercorporate  indebtedness  between  the  corpo-
    48  rations included in the combined report shall be eliminated.
    49    (V) Average assets are computed using the assets measured on the first
    50  day  of the taxable year, and on the last day of each subsequent quarter
    51  of the taxable year or month or day during the taxable year.
    52    § 7. Clause (B) of subparagraph 2 and clause (B) of  subparagraph  2-a
    53  of  paragraph  (s)  of  subdivision  9 of section 208 of the tax law, as
    54  added by section 4 of part A of chapter 59 of  the  laws  of  2014,  are
    55  amended to read as follows:

        A. 6009                            58
 
     1    (B)  The  average  value  during the taxable year of the assets of the
     2  taxpayer, or, if the taxpayer is included  in  a  combined  report,  the
     3  assets of the combined reporting group of the taxpayer under section two
     4  hundred ten-C of this article, must not exceed eight billion dollars.
     5    (B)  The  average  value  during the taxable year of the assets of the
     6  taxpayer, or, if the taxpayer is included  in  a  combined  report,  the
     7  assets of the combined reporting group of the taxpayer under section two
     8  hundred ten-C of this article, must not exceed eight billion dollars.
     9    §  8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as
    10  added by section 5 of part A of chapter 59  of  the  laws  of  2014,  is
    11  amended to read as follows:
    12    (d)(i)  A  corporation with less than one million dollars but at least
    13  ten thousand dollars of receipts within this state  in  a  taxable  year
    14  that  is  part  of  a  [combined reporting] unitary group that meets the
    15  ownership test under section two hundred ten-C of this article is deriv-
    16  ing receipts from activity in this state if  the  receipts  within  this
    17  state of the members of the [combined reporting] unitary group that have
    18  at  least  ten  thousand  dollars  of  receipts within this state in the
    19  aggregate meet the threshold set forth in paragraph (b) of this subdivi-
    20  sion.
    21    (ii) A corporation that does not meet any of the thresholds set  forth
    22  in  paragraph (c) of this subdivision but has at least ten customers, or
    23  locations, or customers and locations, as described in paragraph (c)  of
    24  this  subdivision,  and  is part of a [combined reporting] unitary group
    25  that meets the ownership test under section two hundred  ten-C  of  this
    26  article  [that] is doing business in this state if the number of custom-
    27  ers, locations, or customers and locations, within  this  state  of  the
    28  members of the [combined reporting] unitary group that have at least ten
    29  customers,  locations,  or customers and locations, within this state in
    30  the aggregate meets any of the thresholds set forth in paragraph (c)  of
    31  this subdivision.
    32    §  9.  Paragraph (d) of subdivision 1 of section 209-B of the tax law,
    33  as added by section 7 of part A of chapter 59 of the laws  of  2014,  is
    34  amended to read as follows:
    35    (d)(i)  A  corporation with less than one million dollars but at least
    36  ten thousand dollars of receipts within the metropolitan commuter trans-
    37  portation district in a taxable year that is part of a [combined report-
    38  ing] unitary group that meets  the  ownership  test  under  section  two
    39  hundred  ten-C of this article is deriving receipts from activity in the
    40  metropolitan commuter transportation district if the receipts within the
    41  metropolitan commuter transportation district  of  the  members  of  the
    42  [combined  reporting]  unitary  group  that  have  at least ten thousand
    43  dollars of receipts  within  the  metropolitan  commuter  transportation
    44  district  in the aggregate meet the threshold set forth in paragraph (b)
    45  of this subdivision.
    46    (ii) A corporation that does not meet any of the thresholds set  forth
    47  in  paragraph (c) of this subdivision but has at least ten customers, or
    48  locations, or customers and locations, as described  in  paragraph  (c),
    49  and  is  part  of  a  [combined  reporting] unitary group that meets the
    50  ownership test under section two hundred ten-C of this article [that] is
    51  doing business in the metropolitan commuter transportation  district  if
    52  the  number  of customers, locations, or customers and locations, within
    53  the metropolitan commuter transportation district of the members of  the
    54  [combined  reporting]  unitary  group  that have at least ten customers,
    55  locations, or customers and locations, within the metropolitan  commuter

        A. 6009                            59
 
     1  transportation district in the aggregate meets any of the thresholds set
     2  forth in paragraph (c) of this subdivision.
     3    §  10.  The  opening  paragraph  of  paragraph (a) of subdivision 1 of
     4  section 210 of the tax law, as amended by section 12 of part A of  chap-
     5  ter 59 of the laws of 2014, is amended to read as follows:
     6    For  taxable  years  beginning  before  January  first,  two  thousand
     7  sixteen, the amount prescribed by this paragraph shall  be  computed  at
     8  the  rate  of  seven  and  one-tenth  percent of the taxpayer's business
     9  income base. For taxable years beginning on or after January first,  two
    10  thousand  sixteen,  the amount prescribed by this paragraph shall be six
    11  and one-half percent of the taxpayer's business income base. The taxpay-
    12  er's business income base shall mean the portion of the taxpayer's busi-
    13  ness income allocated within the state as hereinafter provided. However,
    14  in the case of a small business taxpayer, as defined in paragraph (f) of
    15  this subdivision, the amount  prescribed  by  this  paragraph  shall  be
    16  computed pursuant to subparagraph (iv) of this paragraph and in the case
    17  of  a  manufacturer,  as defined in subparagraph (vi) of this paragraph,
    18  the amount prescribed by this paragraph shall be  computed  pursuant  to
    19  subparagraph  (vi)  of  this  paragraph, and, in the case of a qualified
    20  emerging technology company, as defined in subparagraph  (vii)  of  this
    21  paragraph,  the  amount  prescribed  by this paragraph shall be computed
    22  pursuant to subparagraph (vii) of this paragraph.
    23    § 11. Subparagraph (vi) of paragraph (a) of subdivision 1  of  section
    24  210  of the tax law, as amended by section 12 of part A of chapter 59 of
    25  the laws of 2014, is amended to read as follows:
    26    (vi) for taxable years beginning on or after January first, two  thou-
    27  sand  fourteen,  the  amount prescribed by this paragraph for a taxpayer
    28  which is a qualified New York manufacturer, shall  be  computed  at  the
    29  rate  of  zero  percent of the taxpayer's business income base. The term
    30  "manufacturer" shall mean a taxpayer which during the  taxable  year  is
    31  principally  engaged  in the production of goods by manufacturing, proc-
    32  essing, assembling, refining, mining, extracting, farming,  agriculture,
    33  horticulture,  floriculture, viticulture or commercial fishing. However,
    34  the generation and distribution  of  electricity,  the  distribution  of
    35  natural  gas, and the production of steam associated with the generation
    36  of electricity shall not be qualifying  activities  for  a  manufacturer
    37  under this subparagraph. Moreover, in the case of a combined report, the
    38  combined group shall be considered a "manufacturer" for purposes of this
    39  subparagraph only if the combined group during the taxable year is prin-
    40  cipally  engaged  in  the activities set forth in this paragraph, or any
    41  combination thereof. A taxpayer or, in the case of a combined report,  a
    42  combined  group  shall  be "principally engaged" in activities described
    43  above if, during the taxable year, more than fifty percent of the  gross
    44  receipts  of  the  taxpayer or combined group, respectively, are derived
    45  from receipts from the sale of goods produced  by  such  activities.  In
    46  computing  a  combined  group's  gross receipts, intercorporate receipts
    47  shall be eliminated. A "qualified New York manufacturer" is  a  manufac-
    48  turer which has property in New York which is described in clause (A) of
    49  subparagraph  (i)  of  paragraph  (b)  of subdivision one of section two
    50  hundred ten-B of this article and either (I) the adjusted basis of  such
    51  property  for  federal  income  tax purposes at the close of the taxable
    52  year is at least one million  dollars  or  (II)  all  of  its  real  and
    53  personal  property is located in New York. A taxpayer or, in the case of
    54  a combined report, a combined group, that does not satisfy  the  princi-
    55  pally  engaged  test  may  be  a  qualified New York manufacturer if the
    56  taxpayer or the combined group employs during the taxable year at  least

        A. 6009                            60
 
     1  two thousand five hundred employees in manufacturing in New York and the
     2  taxpayer  or  the combined group has property in the state used in manu-
     3  facturing, the adjusted basis of which for federal income  tax  purposes
     4  at  the  close  of  the  taxable  year  is  at least one hundred million
     5  dollars.
     6    § 12. Subparagraph (vii) of paragraph (a) of subdivision 1 of  section
     7  210  of the tax law, as amended by section 12 of part A of chapter 59 of
     8  the laws of 2014, is amended to read as follows:
     9    (vii) For a taxpayer that is defined as a qualified emerging technolo-
    10  gy company under paragraph (c) of subdivision one of section  thirty-one
    11  hundred  two-e  of  the  public  authorities  law  regardless of the ten
    12  million dollar limitation expressed in subparagraph one  of  such  para-
    13  graph  (c)  the amount prescribed by this paragraph shall be computed at
    14  the rate [at which the tax is  computed  in  effect  for  taxable  years
    15  beginning  on  or  after January first, two thousand thirteen and before
    16  January first, two thousand fourteen for such qualified  emerging  tech-
    17  nology  companies  shall  be  reduced by nine and two-tenths percent for
    18  taxable years commencing on or after January first, two  thousand  four-
    19  teen  and  before January first, two thousand fifteen, twelve and three-
    20  tenths percent for taxable years commencing on or after  January  first,
    21  two  thousand  fifteen  and  before January first, two thousand sixteen,
    22  fifteen and four-tenths percent for taxable years commencing on or after
    23  January first, two thousand sixteen and before January first, two  thou-
    24  sand eighteen, and twenty-five percent for taxable years beginning on or
    25  after  January  first, two thousand eighteen] of 5.7 percent for taxable
    26  years beginning on or after January  first,  two  thousand  fifteen  and
    27  before  January  first,  two  thousand  sixteen, 5.5 percent for taxable
    28  years beginning on or after  January  first  two  thousand  sixteen  and
    29  before January first, two thousand eighteen, and 4.875 percent for taxa-
    30  ble years beginning on or after January first, two thousand eighteen. In
    31  the case of a combined report, each corporation included in the combined
    32  report  must qualify as a qualified emerging technology company in order
    33  for the tax rates provided by this subparagraph to apply.
    34    § 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of
    35  paragraph (a) of subdivision 1 of section 210 of the tax law,  as  added
    36  by section 12 of part A of chapter 59 of the laws of 2014, is amended to
    37  read as follows:
    38    (IV)  In  lieu  of  the  subtraction  described  in item (III) of this
    39  subclause, if the taxpayer so elects, the taxpayer's prior net operating
    40  loss conversion subtraction for the tax  years  beginning  on  or  after
    41  January  first, two thousand fifteen and before January first, two thou-
    42  sand seventeen shall equal in each year, not more than one-half  of  its
    43  net  operating  loss  conversion  subtraction  pool  until  the  pool is
    44  exhausted. If the pool is not exhausted at the end of such time  period,
    45  the  remainder  of the pool shall be forfeited.  The taxpayer shall make
    46  such election on its first return for the tax year beginning on or after
    47  January first, two thousand fifteen and before January first, two  thou-
    48  sand  sixteen by the due date for such return (determined with regard to
    49  extensions).
    50    § 14. Subclause 4 of clause (B) of subparagraph  (viii)  of  paragraph
    51  (a)  of subdivision 1 of section 210 of the tax law, as added by section
    52  12 of part A of chapter 59 of the laws of 2014, is amended  to  read  as
    53  follows:
    54    (4) The prior net operating loss conversion subtraction may be used to
    55  reduce  the taxpayer's tax on allocated business income to the higher of
    56  the tax on the capital base under paragraph (b) of this  subdivision  or

        A. 6009                            61
 
     1  the  fixed dollar minimum under paragraph (d) of this subdivision. [Any]
     2  Unless the taxpayer has made the election provided for in item  (IV)  of
     3  subclause  two of this clause, any amount of unused subtraction shall be
     4  carried  forward  to  subsequent tax year or years until [tax] the prior
     5  net operating loss conversion subtraction pool is exhausted, but for  no
     6  longer  than  twenty  taxable  years or the taxable year beginning on or
     7  after January first, two thousand thirty-five but before January  first,
     8  two  thousand  thirty-six,  whichever comes first.   Such amount carried
     9  forward shall not be subject to the one-tenth limitation for the  subse-
    10  quent  tax year or years. However, if the taxpayer elects to compute its
    11  prior net operating loss conversion subtraction pursuant to item (IV) of
    12  subclause two of this clause, the taxpayer shall not carry  forward  any
    13  unused amount of such subtraction [beyond its] to any tax year beginning
    14  on  or  after  [January  first, two thousand sixteen and before] January
    15  first, two thousand seventeen.
    16    § 15. The opening paragraph of subparagraph (ix) of paragraph  (a)  of
    17  subdivision  1  of section 210 of the tax law, as added by section 12 of
    18  part A of chapter 59 of the laws of 2014, is amended to read as follows:
    19    In computing the business income base, a net operating loss  deduction
    20  shall  be  allowed.  A net operating loss deduction is the amount of net
    21  operating loss or losses from one or more taxable years that are carried
    22  forward or carried back to a particular [income] taxable year.    A  net
    23  operating loss is the amount of a business loss incurred in a particular
    24  tax  year multiplied by the apportionment factor for that year as deter-
    25  mined under section two hundred ten-A of this article. The  maximum  net
    26  operating loss deduction that is allowed in a taxable year is the amount
    27  that  reduces  the  taxpayer's  tax  on [allocated] apportioned business
    28  income to the higher of the tax on the capital base or the fixed  dollar
    29  minimum.   Such deduction and loss are determined in accordance with the
    30  following:
    31    § 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of  subdi-
    32  vision 1 or section 210 of the tax law, as added by section 12 of part A
    33  of chapter 59 of the laws of 2014, are amended to read as follows:
    34    (4) [A net operating loss may be carried forward to each of the twenty
    35  taxable  years  following  the taxable year of the loss. A net operating
    36  loss may be carried back to each of the three  taxable  years  preceding
    37  the  taxable  year of the loss; provided, however no loss can be carried
    38  back to a tax year prior to a tax year beginning on  or  after  January,
    39  first, two thousand fifteen. A taxpayer must apply both of these limita-
    40  tions  in  computing such net operating loss deduction.] A net operating
    41  loss may be carried back three taxable years preceding the taxable  year
    42  of  the  loss.  However  no  loss  can be carried back to a taxable year
    43  beginning before January first, two thousand fifteen. The loss is  first
    44  carried to the earliest of the three taxable years. If it is not entire-
    45  ly used in that year, it is carried to the second taxable year preceding
    46  the  loss  year, and any remaining amount is carried to the taxable year
    47  immediately preceding the loss year. Any  unused  amount  of  loss  then
    48  remaining  may  be  carried  forward for as many as twenty taxable years
    49  following the loss year. Losses  carried  forward  are  carried  forward
    50  first  to  the taxable year immediately following the loss year, then to
    51  the second taxable year following the loss year, and then  to  the  next
    52  immediately  subsequent  taxable year or years until the loss is used up
    53  or the twentieth taxable year following the loss year,  whichever  comes
    54  first.
    55    (6)  Where  there  are  two or more allocated net operating losses, or
    56  portions thereof, carried back or carried forward to be deducted in  one

        A. 6009                            62
 
     1  particular  tax  year from allocated business income, the earliest allo-
     2  cated loss incurred must be applied first.
     3    §  17.  Subparagraph (ix) of paragraph (a) of subdivision 1 of section
     4  210 of the tax law is amended by adding  a  new  clause  7  to  read  as
     5  follows:
     6    (7)  A  taxpayer  may  elect to waive the entire carryback period with
     7  respect to a net operating loss. Such  election  must  be  made  on  the
     8  taxpayer's  original  timely  filed  return  (determined  with regard to
     9  extensions) for the taxable year of the net operating loss for which the
    10  election is to be in effect. Once an election  is  made  for  a  taxable
    11  year, it shall be irrevocable for that taxable year. A separate election
    12  must be made for each loss year. This election applies to all members of
    13  a combined group.
    14    § 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as
    15  amended  by  section  12 of part A of chapter 59 of the laws of 2014, is
    16  amended to read as follows:
    17    (b) Capital base. (1) The amount prescribed by this paragraph shall be
    18  computed at .15 percent for each dollar of the taxpayer's total business
    19  capital, or the portion thereof allocated within the state as hereinaft-
    20  er provided for taxable years beginning before January first, two  thou-
    21  sand  sixteen. However, in the case of a cooperative housing corporation
    22  as defined in the internal revenue code, the applicable  rate  shall  be
    23  .04 percent until taxable years beginning on or after January first, two
    24  thousand  twenty.  The  rate of tax for subsequent tax years shall be as
    25  follows: .125 percent for taxable years beginning on  or  after  January
    26  first,  two  thousand  sixteen  and  before  January first, two thousand
    27  seventeen; .100 percent for taxable years beginning on or after  January
    28  first,  two  thousand  seventeen  and before January first, two thousand
    29  eighteen; .075 percent for taxable years beginning on or  after  January
    30  first,  two  thousand  eighteen  and  before January first, two thousand
    31  nineteen; .050 percent for taxable years beginning on or  after  January
    32  first,  two  thousand  nineteen  and  before January first, two thousand
    33  twenty; .025 percent for taxable years beginning  on  or  after  January
    34  first,  two thousand twenty and before January first, two thousand twen-
    35  ty-one; and zero percent for years beginning on or after January  first,
    36  two  thousand  twenty-one.  The  rate  of  tax  for a qualified New York
    37  manufacturer [for tax years subsequent to taxable years beginning on  or
    38  after  January first, two thousand fifteen and before January first, two
    39  thousand sixteen] shall be .132 percent for taxable years  beginning  on
    40  or  after  January first, two thousand fifteen and before January first,
    41  two thousand sixteen, .106 percent for taxable  years  beginning  on  or
    42  after  January first, two thousand sixteen and before January first, two
    43  thousand seventeen, .085 percent for taxable years beginning on or after
    44  January first, two thousand seventeen  and  before  January  first,  two
    45  thousand  eighteen; .056 percent for taxable years beginning on or after
    46  January first, two thousand eighteen and before January first, two thou-
    47  sand nineteen; .038 percent for taxable  years  beginning  on  or  after
    48  January  first, two thousand nineteen and before January first, thousand
    49  twenty; .019 percent for taxable years beginning  on  or  after  January
    50  first,  two thousand twenty and before January first, two thousand twen-
    51  ty-one; and zero percent for years beginning on or after January  first,
    52  two thousand twenty-one. In no event shall the amount prescribed by this
    53  paragraph  exceed three hundred fifty thousand dollars for qualified New
    54  York manufacturers and for all other taxpayers five million dollars.
    55    (2) For purposes of subparagraph  one  of  this  paragraph,  the  term
    56  "manufacturer"  shall  mean  a taxpayer which during the taxable year is

        A. 6009                            63
 
     1  principally engaged in the production of goods by  manufacturing,  proc-
     2  essing,  assembling, refining, mining, extracting, farming, agriculture,
     3  horticulture, floriculture, viticulture or commercial fishing. Moreover,
     4  for  purposes  of  computing  the capital base in a combined report, the
     5  combined group shall be considered a "manufacturer" for purposes of this
     6  subparagraph only if the combined group during the taxable year is prin-
     7  cipally engaged in the activities set forth in this subparagraph, or any
     8  combination thereof. A taxpayer or, in the case of a combined report,  a
     9  combined  group  shall  be "principally engaged" in activities described
    10  above if, during the taxable year, more than fifty percent of the  gross
    11  receipts  of  the  taxpayer or combined group, respectively, are derived
    12  from receipts from the sale of goods produced  by  such  activities.  In
    13  computing  a  combined  group's  gross receipts, intercorporate receipts
    14  shall be eliminated. A "qualified New York manufacturer" is  a  manufac-
    15  turer that has property in New York that is described in subdivision one
    16  of  section [210-B] two hundred ten-B of this article and either (i) the
    17  adjusted basis of that property for federal income tax purposes  at  the
    18  close of the taxable year is at least one million dollars or (ii) all of
    19  its  real  and  personal property is located in New York. In addition, a
    20  "qualified New York manufacturer" means a taxpayer that is defined as  a
    21  qualified emerging technology company under paragraph (c) of subdivision
    22  one  of  section  thirty-one hundred two-e of the public authorities law
    23  regardless of the ten million dollar limitation  expressed  in  subpara-
    24  graph  one  of  such paragraph.   In the case of a combined report, each
    25  corporation included in the combined report must qualify as a  qualified
    26  emerging  technology  company  in  order  for the preferential tax rates
    27  provided by this paragraph to apply. A taxpayer or, in  the  case  of  a
    28  combined report, a combined group, that does not satisfy the principally
    29  engaged test may be a qualified New York manufacturer if the taxpayer or
    30  the combined group employs during the taxable year at least two thousand
    31  five  hundred employees in manufacturing in New York and the taxpayer or
    32  the combined group has property in the state used in manufacturing,  the
    33  adjusted  basis of which for federal income tax purposes at the close of
    34  the taxable year is at least one hundred million dollars.
    35    § 19. Subparagraph 1 of paragraph (d) of subdivision 1 of section  210
    36  of  the tax law, as amended by section 12 of part A of chapter 59 of the
    37  laws of 2014, is amended to read as follows:
    38    (1) (A) The amount prescribed by this paragraph for New York S  corpo-
    39  rations,  other than New York S corporations that are qualified New York
    40  manufacturers or qualified emerging technology companies, will be deter-
    41  mined in accordance with the following table:
 
    42  If New York receipts are:                The fixed dollar minimum tax is:
    43   not more than $100,000                               $   25
    44   more than $100,000 but not over $250,000             $   50
    45   more than $250,000 but not over $500,000             $  175
    46   more than $500,000 but not over $1,000,000           $  300
    47   more than $1,000,000 but not over $5,000,000         $1,000
    48   more than $5,000,000 but not over $25,000,000        $3,000
    49   Over $25,000,000                                     $4,500
 
    50    (B) Provided further, the amount prescribed by this paragraph for  New
    51  York S corporations that are qualified New York manufactures, as defined
    52  in  subparagraph  (vi) of paragraph (a) of this subdivision, and for New
    53  York S corporations that are  qualified  emerging  technology  companies
    54  under  paragraph  (c)  of  subdivision one of section thirty-one hundred

        A. 6009                            64
 
     1  two-e of the public authorities law regardless of the ten million dollar
     2  limitation expressed in subparagraph one of such paragraph (c), will  be
     3  determined in accordance with the following tables.
     4  For taxable years beginning on or after January 1, 2015 and before Janu-
     5  ary 1, 2016:
 
     6  If New York receipts are:                The fixed dollar minimum tax is:

     7   not more than $100,000                               $   22
     8   more than $100,000 but not over $250,000             $   44
     9   more than $250,000 but not over $500,000             $  153
    10   more than $500,000 but not over $1,000,000           $  263
    11   more than $1,000,000 but not over $5,000,000         $  877
    12   more than $5,000,000 but not over $25,000,000        $2,631
    13   Over $25,000,000                                     $3,947
 
    14  For taxable years beginning on or after January 1, 2016 and before Janu-
    15  ary 1, 2018:
 
    16  If New York receipts are:                The fixed dollar minimum tax is:
    17   not more than $100,000                               $   21
    18   more than $100,000 but not over $250,000             $   42
    19   more than $250,000 but not over $500,000             $  148
    20   more than $500,000 but not over $1,000,000           $  254
    21   more than $1,000,000 but not over $5,000,000         $  846
    22   more than $5,000,000 but not over $25,000,000        $2,538
    23   Over $25,000,000                                     $3,807
 
    24  For taxable years beginning on or after January 1, 2018:
 
    25  If New York receipts are:                The fixed dollar minimum tax is:
    26   not more than $100,000                               $   19
    27   more than $100,000 but not over $250,000             $   38
    28   more than $250,000 but not over $500,000             $  131
    29   more than $500,000 but not over $1,000,000           $  225
    30   more than $1,000,000 but not over $5,000,000         $  750
    31   more than $5,000,000 but not over $25,000,000        $2,250
    32   Over $25,000,000                                     $3,375
 
    33    (C)  Provided  further,  the amount prescribed by this paragraph for a
    34  qualified New York manufacturer, as  defined  in  subparagraph  (vi)  of
    35  paragraph  (a)  of this subdivision, and a qualified emerging technology
    36  company under paragraph (c) of subdivision  one  of  section  thirty-one
    37  hundred  two-e  of  the  public  authorities  law  regardless of the ten
    38  million dollar limitation expressed in subparagraph one  of  such  para-
    39  graph  (c),  that is not a New York S corporation, will be determined in
    40  accordance with the following tables[:]. However, with respect to quali-
    41  fied New York manufacturers, the amounts in these tables will  apply  in
    42  the  case  of a combined report only if the combined group satisfies the
    43  requirements to be a qualified New York manufacturer  as  set  forth  in
    44  such  subparagraph  (vi).  With respect to qualified emerging technology
    45  companies, the amounts in these tables will  apply  in  the  case  of  a
    46  combined report only if each corporation included in the combined report
    47  qualifies as a qualified emerging technology company.
    48  [For  tax years beginning on or after January 1, 2014 and before January
    49  1, 2015:

        A. 6009                            65

     1  If New York receipts are:                The fixed dollar minimum tax is:
     2   not more than $100,000                               $   23
     3   more than $100,000 but not over $250,000             $   68
     4   more than $250,000 but not over $500,000             $  159
     5   more than $500,000 but not over $1,000,000           $  454
     6   more than $1,000,000 but not over $5,000,000         $1,362
     7   more than $5,000,000 but not over $25,000,000        $3,178
     8   Over $25,000,000                                     $4,500]

     9  For  tax  years beginning on or after January 1, 2015 and before January
    10  1, 2016:
 
    11  If New York receipts are:                The fixed dollar minimum tax is:
    12   not more than $100,000                               $   22
    13   more than $100,000 but not over $250,000             $   66
    14   more than $250,000 but not over $500,000             $  153
    15   more than $500,000 but not over $1,000,000           $  439
    16   more than $1,000,000 but not over $5,000,000         $1,316
    17   more than $5,000,000 but not over $25,000,000        $3,070
    18   Over $25,000,000                                     $4,385
 
    19  For tax years beginning on or after January 1, 2016 and  before  January
    20  1, 2018:
 
    21  If New York receipts are:                The fixed dollar minimum tax is:
    22   not more than $100,000                               $   21
    23   more than $100,000 but not over $250,000             $   63
    24   more than $250,000 but not over $500,000             $  148
    25   more than $500,000 but not over $1,000,000           $  423
    26   more than $1,000,000 but not over $5,000,000         $1,269
    27   more than $5,000,000 but not over $25,000,000        $2,961
    28   Over $25,000,000                                     $4,230
 
    29  For tax years beginning on or after January 1, 2018:
 
    30  If New York receipts are:                The fixed dollar minimum tax is:
    31   not more than $100,000                               $   19
    32   more than $100,000 but not over $250,000             $   56
    33   more than $250,000 but not over $500,000             $  131
    34   more than $500,000 but not over $1,000,000           $  375
    35   more than $1,000,000 but not over $5,000,000         $1,125
    36   more than $5,000,000 but not over $25,000,000        $2,625
    37   Over $25,000,000                                     $3,750

    38    (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
    39  and  (C)  of  this subparagraph, the amount prescribed by this paragraph
    40  will be determined in accordance with the following table:
 
    41  If New York receipts are:                The fixed dollar minimum tax is:
    42   not more than $100,000                               $   25
    43   more than $100,000 but not over $250,000             $   75
    44   more than $250,000 but not over $500,000             $  175
    45   more than $500,000 but not over $1,000,000           $  500
    46   more than $1,000,000 but not over $5,000,000         $1,500
    47   more than $5,000,000 but not over $25,000,000        $3,500
    48   more than $25,000,000 but not over $50,000,000       $5,000

        A. 6009                            66
 
     1   more than $50,000,000 but not over $100,000,000      $10,000
     2   more than $100,000,000 but not over $250,000,000     $20,000
     3   more than $250,000,000 but not over $500,000,000     $50,000
     4   more than $500,000,000 but not over $1,000,000,000   $100,000
     5   Over $1,000,000,000                                  $200,000
 
     6    (E) For purposes of this paragraph, New York receipts are the receipts
     7  included  in  the numerator of the apportionment factor determined under
     8  section two hundred ten-A for the taxable year.
     9    § 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as
    10  amended by section 12 of part A of chapter 59 of the laws  of  2014,  is
    11  amended to read as follows:
    12    (f)  For  purposes of this section, the term "small business taxpayer"
    13  shall mean a taxpayer (i) which has an entire net  income  of  not  more
    14  than  three  hundred  ninety thousand dollars for the taxable year; (ii)
    15  the aggregate amount of money and other property received by the  corpo-
    16  ration  for stock, as a contribution to capital, and as paid-in surplus,
    17  does not exceed one million dollars; (iii)  which  is  not  part  of  an
    18  affiliated  group,  as  defined  in section 1504 of the internal revenue
    19  code, unless such group, if it had filed a report under this article  on
    20  a  combined  basis,  would  have  itself  qualified as a "small business
    21  taxpayer" pursuant to this subdivision; and (iv) which  has  an  average
    22  number  of  individuals,  excluding general executive officers, employed
    23  full-time in the state during the taxable year of one hundred or  fewer.
    24  If  the  taxable  period  to  which  subparagraph  (i) of this paragraph
    25  applies is less than twelve months, entire net income under such subpar-
    26  agraph shall be placed on an annual basis by multiplying the entire  net
    27  income  by twelve and dividing the result by the number of months in the
    28  period. For purposes of subparagraph (ii) of this paragraph, the  amount
    29  taken  into  account with respect to any property other than money shall
    30  be the amount equal to the adjusted basis to  the  corporation  of  such
    31  property  for  determining  gain,  reduced by any liability to which the
    32  property was subject or which was assumed by the corporation. The deter-
    33  mination under the preceding sentence shall be made as of the  time  the
    34  property  was  received by the corporation. For purposes of subparagraph
    35  [(iii)] (iv) of this [section] paragraph, "average  number  of  individ-
    36  uals, excluding general executive officers, employed full-time" shall be
    37  computed  by ascertaining the number of such individuals employed by the
    38  taxpayer on the thirty-first day of March, the thirtieth  day  of  June,
    39  the  thirtieth  day  of  September  and the thirty-first day of December
    40  during each taxable year or other applicable period, by adding  together
    41  the  number  of  such  individuals ascertained on each of such dates and
    42  dividing the sum so obtained by the number of such dates occurring with-
    43  in such taxable year or other applicable period. An individual  employed
    44  full-time  means an employee in a job consisting of at least thirty-five
    45  hours per week, or two or more employees who are in jobs  that  together
    46  constitute  the  equivalent of a job at least thirty-five hours per week
    47  (full-time equivalent). Full-time  equivalent  employees  in  the  state
    48  [includes] include all employees regularly connected with or working out
    49  of an office or place of business of the taxpayer within the state.
    50    §  21.  Subdivision  1  of  section  210-A of the tax law, as added by
    51  section 16 of part A of chapter 59 of the laws of 2014,  is  amended  to
    52  read as follows:
    53    1.  General.  Business  income and capital shall be apportioned to the
    54  state by the apportionment factor determined pursuant to  this  section.
    55  The  apportionment  factor  is  a fraction, determined by including only

        A. 6009                            67
 
     1  those receipts, net income, net gains, and other items described in this
     2  section that are included in the computation of the taxpayer's  business
     3  income  (determined  without  regard  to  the  modification  provided in
     4  subparagraph  nineteen  of  paragraph (a) of subdivision nine of section
     5  two hundred eight of this article) for the taxable year.  The  numerator
     6  of  the  apportionment  fraction  shall  be  equal to the sum of all the
     7  amounts required to  be  included  in  the  numerator  pursuant  to  the
     8  provisions  of  this  section  and  the denominator of the apportionment
     9  fraction shall be equal to the sum of all the  amounts  required  to  be
    10  included in the denominator pursuant to the provisions of this section.
    11    §  22. Paragraph (c) of subdivision 2 of section 210-A of the tax law,
    12  as added by section 16 of part A of chapter 59 of the laws of  2014,  is
    13  amended to read as follows:
    14    (c)  Receipts from sales of tangible personal property and electricity
    15  that are traded as commodities, as [described] the term  "commodity"  is
    16  defined in section 475 of the internal revenue code, are included in the
    17  apportionment fraction in accordance with clause (I) of subparagraph two
    18  of paragraph (a) of subdivision five of this section.
    19    § 23. The opening paragraph and paragraph 1 of paragraph (a) of subdi-
    20  vision 5 of section 210-A of the tax law, as added by section 16 of part
    21  A of chapter 59 of the laws of 2014, are amended to read as follows:
    22    A  financial instrument is a "qualified financial instrument" if it is
    23  eligible or required to be marked to market under section 475 or section
    24  1256 of the internal revenue code, provided that loans secured  by  real
    25  property  shall  not  be  qualified  financial  instruments. A financial
    26  instrument is a "nonqualified financial instrument" if it is not a qual-
    27  ified financial instrument.
    28    (1) Fixed percentage method for qualified  financial  instruments.  In
    29  determining  the  inclusion  of  receipts  and  net gains from qualified
    30  financial instruments in the apportionment fraction, taxpayers may elect
    31  to use the fixed percentage method described in  this  subparagraph  for
    32  qualified financial instruments. The election is irrevocable, applies to
    33  all qualified financial instruments, and must be made on an annual basis
    34  on  the taxpayer's original, timely filed return. If the taxpayer elects
    35  the fixed percentage method, then all income, gain  or  loss,  including
    36  marked  to market net gains as defined in clause (J) of subparagraph two
    37  of this paragraph,  from  qualified  financial  instruments  constitutes
    38  business income, gain or loss. If the taxpayer does not elect to use the
    39  fixed percentage method, then receipts and net gains are included in the
    40  apportionment  fraction  in accordance with the customer sourcing method
    41  described in  subparagraph  two  of  this  paragraph.  Under  the  fixed
    42  percentage  method, eight percent of all net income (not less than zero)
    43  from qualified financial instruments is included in the numerator of the
    44  apportionment fraction. All net income (not less than zero) from  quali-
    45  fied  financial instruments is included in the denominator of the appor-
    46  tionment fraction.
    47    § 24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph  (a)
    48  of subdivision 5 of section 210-A of the tax law, as added by section 16
    49  of  part  A  of  chapter  59  of the laws of 2014, is amended to read as
    50  follows:
    51    (iv) Net gains (not less than zero) from sales of loans not secured by
    52  real property are included in the numerator of the  apportionment  frac-
    53  tion  as  provided  in  this subclause. The amount of net gains from the
    54  sale of loans not secured by real property included in the numerator  of
    55  the apportionment fraction is determined by multiplying the net gains by
    56  a  fraction, the numerator of which is the amount of gross proceeds from

        A. 6009                            68
 
     1  sales of loans not secured by real property to purchasers located within
     2  the state and the denominator of which is the amount of gross [receipts]
     3  proceeds from sales of loans not secured by real property to  purchasers
     4  located within and without the state. Gross proceeds shall be determined
     5  after  the deduction of any cost incurred to acquire the loans but shall
     6  not be less than zero. Net gains (not less  than  zero)  from  sales  of
     7  loans  not  secured  by real property are included in the denominator of
     8  the apportionment fraction.
     9    § 25. Clause (A) of subparagraph 2 of paragraph (a) of  subdivision  5
    10  of section 210-A of the tax law is amended by adding a new subclause (v)
    11  to read as follows:
    12    (v)  For purposes of this subdivision, a loan is secured by real prop-
    13  erty if fifty percent or more of the value of  the  collateral  used  to
    14  secure  the  loan,  when  valued at fair market value as of the time the
    15  loan was entered into, consists of real property.
    16    § 26. Subparagraph 2 of paragraph (a)  of  subdivision  5  of  section
    17  210-A  of  the  tax law is amended by adding a new clause (J) to read as
    18  follows:
    19    (J) Marked to market net gains.  (i)  For  purposes  of  this  clause,
    20  "marked  to  market"  mean that a financial instrument is, under section
    21  475 or section 1256 of the internal revenue code, treated by the taxpay-
    22  er as sold for its fair market value on the last  business  day  of  the
    23  taxpayer's  taxable year. "Marked to market gain or loss" means the gain
    24  or loss recognized by the taxpayer under section 475 or section 1256  of
    25  the internal revenue code because the financial instrument is treated as
    26  sold  for  its fair market value on the last business day of the taxable
    27  year.
    28    (ii) The amount of marked to market net gains  (not  less  than  zero)
    29  from each type of financial instrument that is marked to market included
    30  in  the  numerator of the apportionment fraction is determined by multi-
    31  plying the marked to market net gains (but not less than zero) from such
    32  type of the financial instrument by a fraction, the numerator  of  which
    33  is  the  numerator  of the apportionment fraction for the net gains from
    34  that type of financial instrument determined under the applicable clause
    35  of this subparagraph and the denominator of which is the denominator  of
    36  the  apportionment fraction for the net gains for that type of financial
    37  instrument determined under the applicable clause of this  subparagraph.
    38  Marked  to  market net gains (not less than zero) from financial instru-
    39  ments for which the numerator of the apportionment  fraction  is  deter-
    40  mined  under  the  immediately  preceding  sentence  are included in the
    41  denominator of the apportionment fraction.
    42    (iii) If the type of financial instrument that is marked to market  is
    43  not otherwise sourced by the taxpayer under this subparagraph, or if the
    44  taxpayer has a net loss from the sales of that type of financial instru-
    45  ment  under  the  applicable  clause of this subparagraph, the amount of
    46  marked to market net gains (not less than zero) from that type of finan-
    47  cial instrument included in the numerator of the apportionment  fraction
    48  is  determined  by  multiplying  the marked to market net gains (but not
    49  less than zero) from that type of financial instrument  by  a  fraction,
    50  the  numerator of which is the sum of the amount of receipts included in
    51  the numerator of the apportionment fraction under clauses (A), (B), (C),
    52  (D), (E), (F), (G), (H) or (I) of this subparagraph and  subclause  (ii)
    53  of this clause, and the denominator of which is the sum of the amount of
    54  reciepts included in the denominator of the apportionment fraction under
    55  clauses (A), (B), (C), (D), (E), (F), (G), (H) or (I) and subclause (ii)
    56  of  this  clause.  Marked  to  market net gains (not less than zero) for

        A. 6009                            69
 
     1  which the amount to be included in the numerator  of  the  apportionment
     2  fraction  is  determined  under  the  immediately preceding sentence are
     3  included in the denominator of the apportionment fraction.
     4    §  27. Paragraph (e) of subdivision 5 of section 210-A of the tax law,
     5  as added by section 16 of part A of chapter 59 of the laws of  2014,  is
     6  amended to read as follows:
     7    (e) For purposes of this subdivision, a taxpayer shall use the follow-
     8  ing hierarchy to determine the commercial domicile of a business entity,
     9  based on the information known to the taxpayer or information that would
    10  be  known  upon  reasonable  inquiry:  (i) [the location of the treasury
    11  function of the business  entity;  (ii)]  the  seat  of  management  and
    12  control  of the business entity; and [(iii)] (ii) the billing address of
    13  the business entity in the taxpayer's records. The taxpayer  must  exer-
    14  cise due diligence before rejecting [a] the first method in this hierar-
    15  chy and proceeding to the next method.
    16    § 28. Section 210-A of the tax law is amended by adding a new subdivi-
    17  sion 6-a to read as follows:
    18    6-a.  Receipts from the operation of vessels. Receipts from the opera-
    19  tion of vessels are included in the numerator of the apportionment frac-
    20  tion as follows. The amount of receipts from the  operation  of  vessels
    21  included in the numerator of the apportionment fraction is determined by
    22  multiplying  the amount of such receipts by a fraction, the numerator of
    23  which is the aggregate number of working days of the  vessels  owned  or
    24  leased  by  the  taxpayer  in territorial waters of the state during the
    25  period covered by the taxpayer's report and the denominator of which  is
    26  the  aggregate  number of working days of all vessels owned or leased by
    27  the taxpayer during such period.
    28    § 29. The opening paragraph of clause (A) of subparagraph 1  of  para-
    29  graph  (b) of subdivision 7 of section 210-A of the tax law, as added by
    30  section 16 of part A of chapter 59 of the laws of 2014,  is  amended  to
    31  read as follows:
    32    The  portion  of  receipts of a taxpayer from aviation services (other
    33  than services described  in  paragraph  (a)  of  this  subdivision,  but
    34  including  the  receipts  of  a  qualified  air freight forwarder) to be
    35  included in the numerator of the apportionment fraction shall be  deter-
    36  mined  by  multiplying  its  receipts  from  such aviation services by a
    37  percentage which is equal to the arithmetic  average  of  the  following
    38  three percentages:
    39    §  30.  Paragraph (b) of subdivision 7 of section 210-A of the tax law
    40  is amended by adding a new subparagraph 3 to read as follows:
    41    (3) A corporation is a qualified air freight forwarder with respect to
    42  another corporation:
    43    (A) if it owns or controls either directly or indirectly  all  of  the
    44  capital  stock of such other corporation, or if all of its capital stock
    45  is owned or controlled either  directly  or  indirectly  by  such  other
    46  corporation,  or  if  all  of  the capital stock of both corporations is
    47  owned or controlled either directly or indirectly by the same interests,
    48    (B) if it is principally  engaged  in  the  business  of  air  freight
    49  forwarding, and
    50    (C)  if  its air freight forwarding business is carried on principally
    51  with the airline or airlines operated by such other corporation.
    52    § 31. Subparagraph (i) of paragraph (b) and paragraph (d) of  subdivi-
    53  sion 1 of section 210-B of the tax law, as added by section 17 of part A
    54  of chapter 59 of the laws of 2014, are amended to read as follows:
    55    (i)  A  credit shall be allowed under this subdivision with respect to
    56  tangible personal property and other tangible property, including build-

        A. 6009                            70
 
     1  ings and structural components  of  buildings,  which  are:  depreciable
     2  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
     3  code, have a useful life of four years or more, are acquired by purchase
     4  as  defined  in  section  one  hundred  seventy-nine (d) of the internal
     5  revenue code, have a situs in this state and are (A) principally used by
     6  the taxpayer in the production of goods  by  manufacturing,  processing,
     7  assembling,  refining,  mining, extracting, farming, agriculture, horti-
     8  culture, floriculture, viticulture or commercial fishing, (B) industrial
     9  waste treatment facilities or air pollution control facilities, used  in
    10  the taxpayer's trade or business, (C) research and development property,
    11  or  (D)  principally used in the ordinary course of the taxpayer's trade
    12  or business as a broker or dealer in connection  with  the  purchase  or
    13  sale  (which  shall include but not be limited to the issuance, entering
    14  into, assumption,  offset,  assignment,  termination,  or  transfer)  of
    15  stocks,  bonds  or  other  securities as defined in section four hundred
    16  seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
    17  defined in section four hundred seventy-five (e) of the Internal Revenue
    18  Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
    19  trade or business of providing investment advisory services for a  regu-
    20  lated  investment  company as defined in section eight hundred fifty-one
    21  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    22  ination services to customers in connection with the  purchase  or  sale
    23  (which  shall include but not be limited to the issuance, entering into,
    24  assumption, offset, assignment, termination, or transfer) of  securities
    25  as  defined  in section four hundred seventy-five (c)(2) of the Internal
    26  Revenue Code, (F) [originally] principally used in the  ordinary  course
    27  of the taxpayer's business as an exchange registered as a national secu-
    28  rities  exchange  within the meaning of sections 3(a)(1) and 6(a) of the
    29  Securities Exchange Act of 1934 or  a  board  of  trade  as  defined  in
    30  [section  1410(a)(1)  of  the  New  York Not-for-Profit Corporation Law]
    31  subparagraph one of paragraph (a) of section fourteen hundred ten of the
    32  not-for-profit corporation law or as an entity that is wholly  owned  by
    33  one  or  more  such national securities exchanges or boards of trade and
    34  that provides automation or technical services thereto, or  (G)  princi-
    35  pally  used  as a qualified film production facility including qualified
    36  film production facilities having a situs in an empire  zone  designated
    37  as  such  pursuant  to  article eighteen-B of the general municipal law,
    38  where the taxpayer is providing three or more services to any  qualified
    39  film production company using the facility, including such services as a
    40  studio  lighting  grid,  lighting  and  grip equipment, multi-line phone
    41  service, broadband information technology access, industrial scale elec-
    42  trical capacity, food services, security services, and  heating,  venti-
    43  lation and air conditioning. For purposes of clauses (D), (E) and (F) of
    44  this  subparagraph,  property  purchased by a taxpayer affiliated with a
    45  regulated broker, dealer, registered investment advisor, national  secu-
    46  rities exchange or board of trade, is allowed a credit under this subdi-
    47  vision if the property is used by its affiliated regulated broker, deal-
    48  er, registered investment advisor, national securities exchange or board
    49  of  trade in accordance with this subdivision. For purposes of determin-
    50  ing if the property is principally used in qualifying uses, the uses  by
    51  the  taxpayer  described in clauses (D) and (E) of this subparagraph may
    52  be aggregated. In addition, the uses by  the  taxpayer,  its  affiliated
    53  regulated  broker, dealer and registered investment advisor under either
    54  or both of those clauses may be aggregated. Provided, however, a taxpay-
    55  er shall not be allowed the credit provided by clauses (D), (E) and  (F)
    56  of  this  subparagraph  unless  the  property is first placed in service

        A. 6009                            71
 
     1  before October first, two thousand fifteen and  (i)  eighty  percent  or
     2  more  of  the  employees performing the administrative and support func-
     3  tions resulting from or related to the qualifying uses of such equipment
     4  are  located  in this state or (ii) the average number of employees that
     5  perform the administrative  and  support  functions  resulting  from  or
     6  related to the qualifying uses of such equipment and are located in this
     7  state  during  the taxable year for which the credit is claimed is equal
     8  to or greater than ninety-five percent of the average number of  employ-
     9  ees  that  perform  these functions and are located in this state during
    10  the thirty-six months immediately preceding the year for which the cred-
    11  it is claimed, or (iii) the number of employees located  in  this  state
    12  during  the  taxable year for which the credit is claimed is equal to or
    13  greater than ninety percent of the number of employees located  in  this
    14  state on December thirty-first, nineteen hundred ninety-eight or, if the
    15  taxpayer  was  not  a calendar year taxpayer in nineteen hundred ninety-
    16  eight, the last day of its first  taxable  year  ending  after  December
    17  thirty-first,  nineteen  hundred  ninety-eight.  If the taxpayer becomes
    18  subject to tax in this state after the taxable year beginning  in  nine-
    19  teen  hundred ninety-eight, then the taxpayer is not required to satisfy
    20  the employment test provided in the preceding sentence of this  subpara-
    21  graph  for  its first taxable year. For purposes of clause (iii) of this
    22  subparagraph the employment test will be based on the number of  employ-
    23  ees  located in this state on the last day of the first taxable year the
    24  taxpayer is subject to tax in this state.  If the uses of  the  property
    25  must be aggregated to determine whether the property is principally used
    26  in  qualifying  uses, then either each affiliate using the property must
    27  satisfy this employment test or this employment test must  be  satisfied
    28  through the aggregation of the employees of the taxpayer, its affiliated
    29  regulated  broker,  dealer,  and registered investment adviser using the
    30  property. For purposes of this subdivision, the term "goods"  shall  not
    31  include electricity.
    32    (d) Except as otherwise provided in this paragraph, the credit allowed
    33  under this subdivision for any taxable year shall not reduce the tax due
    34  for  such  year  to  less  than the [higher of the amounts prescribed in
    35  paragraphs (c) and] fixed dollar minimum amount prescribed in  paragraph
    36  (d)  of  subdivision  one  of  [this]  section  two  hundred ten of this
    37  article. However, if the amount of credit allowable under this  subdivi-
    38  sion  for  any  taxable  year  reduces  the tax to such amount or if the
    39  taxpayer otherwise pays tax based on the fixed  dollar  minimum  amount,
    40  any  amount  of  credit  allowed  for a taxable year commencing prior to
    41  January first, nineteen hundred eighty-seven and not deductible in  such
    42  taxable  year may be carried over to the following year or years and may
    43  be deducted from the taxpayer's tax for such year or  years  but  in  no
    44  event  shall  such credit be carried over to taxable years commencing on
    45  or after January first, two thousand  two,  and  any  amount  of  credit
    46  allowed  for  a taxable year commencing on or after January first, nine-
    47  teen hundred eighty-seven and not deductible in such year may be carried
    48  over to the fifteen taxable years next following such taxable  year  and
    49  may  be deducted from the taxpayer's tax for such year or years. In lieu
    50  of such carryover, any such taxpayer which qualifies as a  new  business
    51  under  paragraph  [(j)]  (f)  of this subdivision may elect to treat the
    52  amount of such carryover as an overpayment of  tax  to  be  credited  or
    53  refunded in accordance with the provisions of section ten hundred eight-
    54  y-six  of  this chapter, provided, however, the provisions of subsection
    55  (c) of section ten hundred eighty-eight of this chapter notwithstanding,
    56  no interest shall be paid thereon.

        A. 6009                            72
 
     1    § 32. Subdivision 27 of section 210-B of the  tax  law,  as  added  by
     2  section  17  of  part A of chapter 59 of the laws of 2014, is amended to
     3  read as follows:
     4    27.  Credits  of New York S corporations. (a) General. Notwithstanding
     5  the provisions of this section, no carryover of credit  allowable  in  a
     6  New  York C year shall be deducted from the tax otherwise due under this
     7  article in a New York S year, and no credit allowable in a  New  York  S
     8  year,  or  carryover  of  such  credit,  shall  be deducted from the tax
     9  imposed by this article. However, a New York S year shall be treated  as
    10  a  taxable  year for purposes of determining the number of taxable years
    11  to which a credit may be carried over under this section.  Notwithstand-
    12  ing the first sentence of this subdivision, however, the credit for  the
    13  special  additional  mortgage recording tax shall be allowed as provided
    14  in subdivision [fifteen] nine of this section, and the carryover of  any
    15  such  credit shall be determined without regard to whether the credit is
    16  carried from a New York C year to a New York S year or vice-versa.
    17    § 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph  (d)  and
    18  paragraphs  (d-1) and (e) of subdivision 4, and subdivision 7 of section
    19  210-C of the tax law, as added by section 18 of part A of chapter 59  of
    20  the laws of 2014, are amended to read as follows:
    21    1.  Tax.  (a) The tax on a combined report shall be the highest of (i)
    22  the combined business income base multiplied by the tax  rate  specified
    23  in  paragraph  (a) of subdivision one of section two hundred ten of this
    24  article; (ii) the combined capital base multiplied by the tax rate spec-
    25  ified in paragraph (b) of subdivision one of section two hundred ten  of
    26  this  article,  but  not  exceeding  the limitation provided for in that
    27  paragraph (b); or (iii) the fixed dollar minimum that is attributable to
    28  the designated agent of the combined group. In addition, the  tax  on  a
    29  combined  report shall include the fixed dollar minimum tax specified in
    30  paragraph (d) of subdivision one of section  two  hundred  ten  of  this
    31  article for each member of the combined group, other than the designated
    32  agent, that is a taxpayer.
    33    (b)  The  combined  business income base is the amount of the combined
    34  business income of the combined group that is apportioned to the  state,
    35  reduced  by  any prior net operating loss conversion subtraction and any
    36  net operating loss deduction for the combined group. The combined  capi-
    37  tal  base  is  the  amount of the combined capital of the combined group
    38  that is apportioned to the state.
    39    (i) A net  operating  loss  deduction  is  allowed  in  computing  the
    40  combined  business income base. Such deduction may reduce the tax on the
    41  combined business income base to the higher of the tax on  the  combined
    42  capital  base or the fixed dollar minimum amount that is attributable to
    43  the designated agent of the combined group.  A  combined  net  operating
    44  loss  deduction is equal to the amount of combined net operating loss or
    45  losses from one or more  taxable  years  that  are  carried  forward  or
    46  carried back to a particular [income] taxable year. A combined net oper-
    47  ating  loss is the combined business loss incurred in a particular taxa-
    48  ble year multiplied by the combined apportionment factor for  that  year
    49  determined as provided in subdivision five of this section.
    50    (ii)  The combined net operating loss deduction and combined net oper-
    51  ating loss are also subject to the provisions contained in  clauses  one
    52  through [six] seven of subparagraph (ix) of paragraph (a) of subdivision
    53  one of section two hundred ten of this article.
    54    (d-1)  A prior net operating loss conversion subtraction is allowed in
    55  computing the combined business income base, as provided in subparagraph
    56  (viii) of paragraph (a) of subdivision one of section two hundred ten of

        A. 6009                            73
 
     1  this article. Such subtraction may reduce the tax on the combined  busi-
     2  ness  income  base to the higher of the tax on the combined capital base
     3  or the fixed dollar minimum amount that is attributable  to  the  desig-
     4  nated agent of the combined group.
     5    (e)  Any  election  made pursuant to paragraph (b) of subdivision six,
     6  [and] paragraphs (b) and (c) of subdivision six-a of section two hundred
     7  eight, and item (IV) of subclause two  of  clause  (B)  of  subparagraph
     8  (viii)  and clause seven of subparagraph (ix) of paragraph (a) of subdi-
     9  vision one of section two hundred ten of this article shall apply to all
    10  members of the combined group.
    11    7. Designated agent. Each combined group  shall  have  one  designated
    12  agent for the combined group, which shall be a taxpayer. [The designated
    13  agent  is  the  parent corporation of the combined group. If there is no
    14  such parent corporation, or the parent corporation is  not  a  taxpayer,
    15  then  another  member  of  the  combined group that is a taxpayer may be
    16  appointed as the designated agent.] Only the designated agent may act on
    17  behalf of the members of the combined group for matters relating to  the
    18  combined report.
    19    §  34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as
    20  added by section 4 of part A of chapter 68  of  the  laws  of  2013,  is
    21  amended to read as follows:
    22    (1)  ascertaining  the  percentage that the average value of the busi-
    23  ness's real and tangible personal property, whether owned or  rented  to
    24  it, in the tax-free NY area in which the business was located during the
    25  period  covered  by the taxpayer's report or return bears to the average
    26  value of the business's real and  tangible  personal  property,  whether
    27  owned  or  rented  to  it, within the state during such period; provided
    28  that the term "value of the business's real and tangible personal  prop-
    29  erty"  shall have the same meaning as such term has in [subparagraph one
    30  of] paragraph (a) of subdivision [three] two  of  section  [two  hundred
    31  ten] two hundred nine-B of this chapter; and
    32    §  35.  Clause  (ii) of subparagraph (B) of paragraph 2 of subdivision
    33  (d) of section 40 of the tax law, as added by section 4  of  part  A  of
    34  chapter 68 of the laws of 2013, is amended to read as follows:
    35    (ii)  For  purposes of article nine-A of this chapter, the term "part-
    36  ner's income from the partnership" means partnership  items  of  income,
    37  gain,  loss  and deduction, and New York modifications thereto, entering
    38  into [entire net] business income [or minimum taxable  income]  and  the
    39  term  "partner's  entire  income" means [entire net] business income [or
    40  minimum taxable income], allocated within the  state.  For  purposes  of
    41  article  twenty-two of this chapter, the term "partner's income from the
    42  partnership"  means  partnership  items  of  income,  gain,   loss   and
    43  deduction,  and  New  York modifications thereto, entering into New York
    44  adjusted gross income, and the term "partner's entire income" means  New
    45  York adjusted gross income.
    46    § 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40
    47  of  the  tax  law,  as added by section 4 of part A of chapter 68 of the
    48  laws of 2013, is amended to read as follows:
    49    (C) (i) Where the taxpayer is a shareholder of a  New  York  S  corpo-
    50  ration  that is a business located in a tax-free NY area, the sharehold-
    51  er's tax factor shall be that portion of the amount determined in  para-
    52  graph  one of this subdivision that is attributable to the income of the
    53  S corporation. Such attribution shall be made  in  accordance  with  the
    54  ratio of the shareholder's income from the S corporation allocated with-
    55  in  the  state,  entering  into  New  York adjusted gross income, to the
    56  shareholder's New York adjusted gross income, or in accordance with such

        A. 6009                            74

     1  other methods as the commissioner may prescribe as providing  an  appor-
     2  tionment  that  reasonably reflects the portion of the shareholder's tax
     3  attributable to the income of such business. The income of the S  corpo-
     4  ration allocated within the state shall be determined by multiplying the
     5  income  of  the  S  corporation  by  [the]  a business allocation factor
     6  [computed under paragraph  (a)  of  subdivision  three  of  section  two
     7  hundred  ten  of this article without regard to subparagraph ten of such
     8  paragraph (a)] that shall be determined in clause (ii) of this  subpara-
     9  graph. In no event may the ratio so determined exceed 1.0.
    10    (ii)  The business allocation factor for purposes of this subparagraph
    11  shall be computed by adding together the property  factor  specified  in
    12  subclause  (I)  of  this  clause, the wage factor specified in subclause
    13  (II) of this  clause  and  the  apportionment  factor  determined  under
    14  section two hundred ten-A of this chapter and dividing by three.
    15    (I)  The  property  factor  shall  be  determined  by ascertaining the
    16  percentage that the average value of the business's  real  and  tangible
    17  personal  property,  whether  owned  or  rented  to it, within the state
    18  during the period covered by the taxpayer's report or  return  bears  to
    19  the average value of the business's real and tangible personal property,
    20  whether  owned or rented to it, within and without the state during such
    21  period; provided that the term "value of the business's real and  tangi-
    22  ble  personal  property" shall have the same meaning as such term has in
    23  paragraph (a) of subdivision two of section two hundred nine-B  of  this
    24  chapter.
    25    (II)  The wage factor shall be determined by ascertaining the percent-
    26  age that the total wages, salaries and other  personal  service  compen-
    27  sation,  similarly  computed,  during  such  period of employees, except
    28  general executive officers,  employed  at  the  business's  location  or
    29  locations within the state, bears to the total wages, salaries and other
    30  personal  service  compensation, similarly computed, during such period,
    31  of all the business's employees within and  without  the  state,  except
    32  general executive officers.
    33    § 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40
    34  of  the  tax  law,  as added by section 4 of part A of chapter 68 of the
    35  laws of 2013, is amended to read as follows:
    36    (B) The term "income of the business located in a  tax-free  NY  area"
    37  means  [entire  net]  business income [or minimum taxable income] calcu-
    38  lated as if the taxpayer was filing separately and  the  term  "combined
    39  group's  income"  means [entire net] business income [or minimum taxable
    40  income] as shown on the combined report, allocated within the state.
    41    § 38. Paragraph 1 of subdivision (e) of section 40 of the tax law,  as
    42  added  by  section  4  of  part  A of chapter 68 of the laws of 2013, is
    43  amended to read as follows:
    44    (1) Article 9-A: section [210] 210-B, subdivision [47] 41.
    45    § 39. Paragraph 1 of subsection (i) of section 660 of the tax law,  as
    46  amended  by  section  74 of part A of chapter 59 of the laws of 2014, is
    47  amended to read as follows:
    48    (1) Notwithstanding the provisions in subsection (a) of this  section,
    49  in  the  case  of an eligible S corporation for which the election under
    50  subsection (a) of this section is not in effect for the current  taxable
    51  year,  the  shareholders of an eligible S corporation are deemed to have
    52  made that election effective for the  eligible  S  corporation's  entire
    53  current  taxable year, if the eligible S corporation's investment income
    54  for the current taxable year is more than fifty percent of  its  federal
    55  gross income for such year. In determining whether an eligible S [corpo-
    56  ration's  investment  income]  corporation  is  deemed to have made that

        A. 6009                            75
 
     1  election, the [investment] income of a qualified subchapter S subsidiary
     2  owned directly or indirectly by the  eligible  S  corporation  shall  be
     3  included with the income of the eligible S corporation.
     4    § 40. This act shall take effect immediately and shall be deemed to be
     5  in full force and effect on the same date as part A of chapter 59 of the
     6  laws of 2014.
 
     7                                   PART U
 
     8    Section  1. Paragraph 33 of subdivision (a) of section 1115 of the tax
     9  law, as added by section 99 of part A of chapter  389  of  the  laws  of
    10  1997, is amended to read as follows:
    11    (33)  Wine  or  wine product, and the bottles, corks, caps, and labels
    12  used to package such wine or wine product,  furnished  by  the  official
    13  agent  of a farm winery, winery, wholesaler, or importer at a wine tast-
    14  ing held in accordance with [section eighty of] the  alcoholic  beverage
    15  control law to a customer or prospective customer who consumes such wine
    16  at such wine tasting.
    17    §  2.  Section 1118 of the tax law is amended by adding a new subdivi-
    18  sion (13) to read as follows:
    19    (13) In respect to the use of the following items at a tasting held by
    20  a licensed brewery, farm brewery, cider producer, farm  cidery,  distil-
    21  lery  or  farm  distillery  in  accordance  with  the alcoholic beverage
    22  control law:  (i) the alcoholic beverage or beverages authorized by  the
    23  alcoholic beverage control law to be furnished at no charge to a custom-
    24  er or prospective customer at such tasting for consumption at such tast-
    25  ing; and (ii) bottles, corks, caps and labels used to package such alco-
    26  holic beverages.
    27    §  3.  This  act  shall  take  effect  immediately, provided, however,
    28  section two of this act shall take effect June 1, 2015 and  shall  apply
    29  in accordance with the transition provisions of section 1106 and 1217 of
    30  the tax law.
 
    31                                   PART V
 
    32    Section  1. Paragraph 22 of subdivision (b) of section 1101 of the tax
    33  law, as amended by chapter 651 of the laws of 1999, is amended  to  read
    34  as follows:
    35    (22) (A) "Prepaid telephone calling service" means the right to exclu-
    36  sively  purchase  telecommunication  services,  that must be paid for in
    37  advance and enable the origination of one or more intrastate, interstate
    38  or international telephone calls using an access number (such as a  toll
    39  free  network access number) and/or authorization code, whether manually
    40  or electronically dialed, for which payment to a vendor must be made  in
    41  advance, whether or not that right is represented by the transfer by the
    42  vendor  to  the purchaser of an item of tangible personal property. Such
    43  term includes a prepaid mobile calling service.  In  no  event  shall  a
    44  credit  card constitute a prepaid telephone calling service. If the sale
    45  or recharge of a prepaid telephone calling service does not  take  place
    46  at  the  vendor's place of business, it shall be conclusively determined
    47  to take place at the purchaser's shipping address or,  if  there  is  no
    48  item shipped, at the purchaser's billing address or the location associ-
    49  ated  with  the  purchaser's  mobile telephone number, or, if the vendor
    50  does not have the address or the location associated with the customer's
    51  mobile telephone number, at such address, as approved by the commission-

        A. 6009                            76
 
     1  er, that reasonably reflects the customer's location at the time of  the
     2  sale or recharge.
     3    (B)  "Prepaid mobile calling service" means the right to use a commer-
     4  cial mobile radio service, whether or not sold with  other  property  or
     5  services,  that must be paid for in advance and is sold in predetermined
     6  units or dollars that decline with use in a known amount, whether or not
     7  that right is represented by or includes the transfer to  the  purchaser
     8  of an item of tangible personal property.
     9    § 2. This act shall take effect immediately.
 
    10                                   PART W
 
    11                            Intentionally Omitted
 
    12                                   PART X
 
    13    Section  1.  Section  1101  of  the tax law is amended by adding a new
    14  subdivision (e) to read as follows:
    15    (e) When used in this article for the purposes of  the  taxes  imposed
    16  under  subdivisions  (a)  through  (f) of section eleven hundred five of
    17  this article and by section eleven hundred  ten  of  this  article,  the
    18  following terms shall mean:
    19    (1)  Marketplace provider. A person who, pursuant to an agreement with
    20  a marketplace seller, facilitates a sale,  occupancy,  or  admission  by
    21  such  marketplace  seller.  A  person "facilitates a sale, occupancy, or
    22  admission" for purposes of this paragraph when the person meets both  of
    23  the  following  conditions:  (i)  such  person, or an affiliated person,
    24  collects the receipts, rent, or amusement charge  paid  by  a  customer,
    25  occupant  or  patron  to  a  marketplace  seller;  and  (ii) such person
    26  performs either of the following activities: (A) provides the  forum  in
    27  which,  or by means of which, the sale takes place or the offer of occu-
    28  pancy or admission is accepted, including a shop, store, or booth, or an
    29  internet website, catalog, or a similar forum; or (B) arranges  for  the
    30  exchange  of  information or messages between the customer, occupant, or
    31  patron, as the case may be, and the marketplace seller.   A  person  who
    32  voluntarily  registers  to  collect  tax as a marketplace provider under
    33  section eleven hundred thirty-four of this article shall also qualify as
    34  a marketplace provider. For purposes of this paragraph, two persons  are
    35  affiliated  if  one  person  has an ownership interest of more than five
    36  percent, whether direct or indirect, in the other, or where an ownership
    37  interest of more than five percent, whether direct or indirect, is  held
    38  in each of such persons by another person or by a group of other persons
    39  which are affiliated persons with respect to each other.
    40    (2)  Marketplace  seller.  Any  person,  whether or not such person is
    41  required to register to collect tax under section eleven  hundred  thir-
    42  ty-four  of  this  article,  who (i) has an agreement with a marketplace
    43  provider under which the marketplace  provider  will  facilitate  sales,
    44  occupancies  or  admissions  for such person within the meaning of para-
    45  graph one of this subdivision; and (ii) satisfies at least  one  of  the
    46  following  conditions:  (A)  sells  tangible  personal  property  or the
    47  services described in subdivisions (a), (b) and (c)  of  section  eleven
    48  hundred five of this article; (B) operates a restaurant, tavern or other
    49  establishment,  or  acts as a caterer, who sells food and drink or makes
    50  other charges taxable under  subdivision  (d)  of  such  section  eleven
    51  hundred five of this article; (C) is an operator of a hotel; or (D) is a

        A. 6009                            77
 
     1  recipient  as  defined  by  paragraph  eleven of subdivision (d) of this
     2  section.
     3    § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
     4  ter 576 of the laws of 1994, is amended to read as follows:
     5    (1)  "Persons  required to collect tax" or "person required to collect
     6  any tax imposed by this article" shall include: every vendor of tangible
     7  personal property or services; every  recipient  of  amusement  charges;
     8  [and]  every  operator  of  a hotel, and every marketplace provider with
     9  respect to sales,  occupancies,  or  admissions  facilitated  by  it  as
    10  described  in paragraph one of subdivision (e) of section eleven hundred
    11  one of this article.  Said terms shall also include any officer,  direc-
    12  tor  or  employee  of  a  corporation or of a dissolved corporation, any
    13  employee of a partnership, any employee or manager of a limited  liabil-
    14  ity company, or any employee of an individual proprietorship who as such
    15  officer,  director,  employee or manager is under a duty to act for such
    16  corporation,  partnership,  limited  liability  company  or   individual
    17  proprietorship  in  complying  with any requirement of this article; and
    18  any member of a partnership or limited  liability  company.    Provided,
    19  however,  that any person who is a vendor solely by reason of clause (D)
    20  or (E) of subparagraph (i)  of  paragraph  (8)  of  subdivision  (b)  of
    21  section  eleven  hundred  one shall not be a "person required to collect
    22  any tax imposed by this article" until twenty days  after  the  date  by
    23  which  such  person  is  required  to file a certificate of registration
    24  pursuant to section eleven hundred thirty-four.
    25    § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
    26  sion (l) to read as follows:
    27    (l)(1)   A  marketplace  provider:  (i)  shall  comply  with  all  the
    28  provisions of this article and article twenty-nine of this  chapter  and
    29  of any regulations adopted pursuant thereto, and to all the requirements
    30  and  obligations thereof, including the right to accept a certificate or
    31  other documentation from  a  customer  substantiating  an  exemption  or
    32  exclusion  from  tax, and have all the duties, benefits and entitlements
    33  of a person required to collect tax under this article and  pursuant  to
    34  the  authority  of  such  article twenty-nine with respect to such sale,
    35  occupancy, or admission, and such tax required to be  collected,  as  if
    36  such  marketplace  provider were the vendor, operator, or recipient with
    37  respect to such sale, occupancy, or admission, including  the  right  to
    38  receive the refund authorized by subdivision (e) of this section and the
    39  credit allowed by subdivision (f) of section eleven hundred thirty-seven
    40  of this part; and (ii) shall keep such records and information and coop-
    41  erate  with  the commissioner to ensure the proper collection and remit-
    42  tance of tax imposed, collected or required to be collected  under  this
    43  article and such article twenty-nine.
    44    (2)  A  marketplace seller is not a person required to collect tax for
    45  purposes of this section in regard to a particular sale,  occupancy,  or
    46  admission subject to tax under subdivisions (a) through (e) or paragraph
    47  one  of  subdivision  (f) of section eleven hundred five of this article
    48  if, in regard to such sale, occupancy or admission: (i) the  marketplace
    49  seller can show that such sale, occupancy, or admission was facilitated,
    50  as  described  in  paragraph  one  of  subdivision (e) of section eleven
    51  hundred one of this article, by a marketplace provider  from  whom  such
    52  seller  has  received  in good faith a properly completed certificate of
    53  collection in a form prescribed by the commissioner certifying that  the
    54  marketplace provider is registered to collect sales tax and will collect
    55  sales tax on all taxable sales, occupancies or admissions by the market-
    56  place  seller  and  with  such other information as the commissioner may

        A. 6009                            78
 
     1  prescribe; and (ii) any failure of the marketplace provider  to  collect
     2  the proper amount of tax in regard to such sale, occupancy, or admission
     3  was  not the result of such marketplace seller providing the marketplace
     4  provider  with  incorrect  information. This provision shall be adminis-
     5  tered in a manner consistent with subparagraph (i) of paragraph  one  of
     6  subdivision (c) of this section as if a certificate of collection were a
     7  resale  or  exemption  certificate  for  purposes  of such subparagraph,
     8  including with  regard  to  the  completeness  of  such  certificate  of
     9  collection  and  the timing of its acceptance by the marketplace seller.
    10  Provided that, with regard to any sales, occupancies, or admissions sold
    11  by a marketplace seller that are facilitated by a  marketplace  provider
    12  who  is  affiliated  with  such marketplace seller within the meaning of
    13  paragraph one of subdivision (e) of section eleven hundred one  of  this
    14  article, the marketplace seller shall be deemed liable as a person under
    15  a  duty to act for such marketplace provider for purposes of subdivision
    16  one of section eleven hundred thirty-one of this part.
    17    (3) The commissioner may, in his or her discretion: (i) develop stand-
    18  ard language, or approve language developed by a  marketplace  provider,
    19  in which the marketplace provider obligates itself to collect the tax on
    20  behalf  of all the marketplace sellers for whom the marketplace provider
    21  facilitates sales, occupancies, or admissions, as described in paragraph
    22  one of subdivision (e) of section eleven hundred one  of  this  article;
    23  and  (ii)  provide by regulation or otherwise that the inclusion of such
    24  language in the marketplace  provider's  agreement  with  a  marketplace
    25  seller that is publicly available will have the same effect as a market-
    26  place  seller's  acceptance  of  a  certificate  of collection from such
    27  marketplace provider under subparagraph two of this paragraph.
    28    § 4. Section 1133 of the tax law is amended by adding a  new  subdivi-
    29  sion (f) to read as follows:
    30    (f) A marketplace provider is relieved of liability under this section
    31  for  failure to collect the correct amount of tax to the extent that the
    32  marketplace provider can show that the error was due to incorrect infor-
    33  mation given to the marketplace  provider  by  the  marketplace  seller.
    34  Provided,  however,  this subdivision shall not apply if the marketplace
    35  seller and marketplace provider are affiliated  within  the  meaning  of
    36  paragraph  one  of subdivision (e) of section eleven hundred one of this
    37  article.
    38    § 5. This act shall take effect March 1,  2016,  and  shall  apply  in
    39  accordance  with  the transition provisions in sections 1106 and 1217 of
    40  the tax law.
 
    41                                   PART Y
 
    42    Section 1. The tax law is amended by adding a new  section  1118-A  to
    43  read as follows:
    44    §  1118-A.  Limitations  on tax avoidance strategies.  Notwithstanding
    45  the provisions of this article or other law to the contrary:
    46    (a) The exclusion in subdivision two of section eleven  hundred  eigh-
    47  teen of this part for property or services purchased by a nonresident of
    48  this  state  shall  not  apply  when a person (other than an individual)
    49  brings such property or service into this state  for  use  here,  unless
    50  such  person has been doing business outside this state for at least six
    51  months prior to the date such person brought such  property  or  service
    52  into this state.
    53    (b)  A  single member limited liability company and the member of that
    54  limited liability company shall be deemed to be one person,  and,  among

        A. 6009                            79
 
     1  other  things,  a  purchase  or  sale  by  one shall be deemed to be the
     2  purchase or sale by the other and neither of them can  make  a  purchase
     3  for resale to the other.
     4    (c) A lease of any tangible personal property between related entities
     5  shall  be subject to the provisions of subdivision (i) of section eleven
     6  hundred eleven of this article, including the provisions, among  others,
     7  relating  to  leases  entered into outside this state where the property
     8  subject to the lease is then brought into this state, as if such  subdi-
     9  vision  (i)  referred  to  the lease described in this subdivision, with
    10  such changes as are necessary to make  such  provisions  apply  to  this
    11  subdivision;  provided  that  any  payments due under such a lease under
    12  this subdivision shall be due at the inception of the  lease  regardless
    13  of  the  length of the term of such lease, including any option to renew
    14  or similar provision, or combination of them; and provided further that,
    15  if the commissioner finds that the sum of all such  payments  due  under
    16  such lease do not reflect the true value or cost of the property subject
    17  to  such  lease,  the  commissioner shall be authorized to estimate such
    18  true value or cost from such information as may be available,  including
    19  by  means of external indices, and assess tax due under this subdivision
    20  based on such estimate. For purposes of this subdivision:
    21    (1) "lease" means and includes a lease, rental agreement, or right  to
    22  use  or  other  agreement in the nature of a lease, rental agreement, or
    23  right to use;
    24    (2) "related entities" means two or more persons that bear a relation-
    25  ship to each other as described in subparagraphs (ii)  through  (vi)  of
    26  paragraph  (b) of subdivision three of section five hundred four of this
    27  chapter.
    28    § 2. Subdivision (q) of section 1111 of  the  tax  law,  as  added  by
    29  section  3  of subpart B of part S of chapter 57 of the laws of 2010, is
    30  amended to read as follows:
    31    (q) (1) The exclusions from the definition of retail sale in  subpara-
    32  graph  (iv)  of  paragraph  four  of  subdivision  (b) of section eleven
    33  hundred one of this article shall not apply to transfers, distributions,
    34  or contributions of [an aircraft or vessel] tangible personal  property,
    35  except  where,  in  the case of the exclusion in subclause (I) of clause
    36  (A) of such subparagraph (iv), the two  corporations  to  be  merged  or
    37  consolidated  are not affiliated persons with respect to each other. For
    38  purposes of this subdivision, corporations are affiliated  persons  with
    39  respect to each other where (i) more than five percent of their combined
    40  shares  are owned by members of the same family, as defined by paragraph
    41  four of subsection (c) of section two hundred sixty-seven of the  inter-
    42  nal  revenue code of nineteen hundred eighty-six; (ii) one of the corpo-
    43  rations has an ownership interest of more  than  five  percent,  whether
    44  direct  or indirect, in the other; or (iii) another person or a group of
    45  other persons that are affiliated persons with  respect  to  each  other
    46  hold  an ownership interest of more than five percent, whether direct or
    47  indirect, in each of the corporations.
    48    (2) Notwithstanding any contrary provision of law, in relation to  any
    49  transfer,  distribution,  or  contribution  of  [an  aircraft or vessel]
    50  tangible personal property that qualifies as a retail sale as  a  result
    51  of  paragraph one of this subdivision, the sales tax imposed by subdivi-
    52  sion (a) of section eleven hundred five of this part shall  be  computed
    53  based  on  the price at which the seller purchased the tangible personal
    54  property, provided that where  the  seller  or  purchaser  affirmatively
    55  shows  that the seller owned the property for six months prior to making
    56  the transfer, distribution or contribution covered by paragraph  one  of

        A. 6009                            80
 
     1  this  subdivision,  such [aircraft or vessel] tangible personal property
     2  shall be taxed on the basis of the current market value of the [aircraft
     3  or vessel] tangible personal property at  the  time  of  that  transfer,
     4  distribution,  or  contribution. For the purposes of the prior sentence,
     5  "current market value" shall not exceed the cost  of  the  [aircraft  or
     6  vessel]  tangible personal property. See subdivision (b) of this section
     7  for a similar rule on the computation of any compensating  use  tax  due
     8  under  section  eleven  hundred  ten  of  this  part  on such transfers,
     9  distributions, or contributions.
    10    (3) A purchaser of [an aircraft or vessel] tangible personal  property
    11  covered  by  paragraph  one  of  this  subdivision will be entitled to a
    12  refund or credit against the sales or compensating  use  tax  due  as  a
    13  result of a transfer, distribution, or contribution of such [aircraft or
    14  vessel] tangible personal property in the amount of any sales or use tax
    15  paid to this state or any other state on the seller's purchase or use of
    16  the  [aircraft  or  vessel]  tangible  personal property so transferred,
    17  distributed or contributed, but not to exceed the tax due on the  trans-
    18  fer,  distribution, or contribution of the [aircraft or vessel] tangible
    19  personal property or  on  the  purchaser's  use  in  the  state  of  the
    20  [aircraft or vessel] tangible personal property so transferred, distrib-
    21  uted  or  contributed.  An application for a refund or credit under this
    22  subdivision must be filed and shall be in such form as the  commissioner
    23  may  prescribe.  Where  an  application  for  credit has been filed, the
    24  applicant may immediately take such credit on the return  which  is  due
    25  coincident  with  or  immediately subsequent to the time the application
    26  for credit is filed. However, the taking of the  credit  on  the  return
    27  shall be deemed to be part of the application for credit.  Provided that
    28  the  commissioner  may, in his or her discretion and notwithstanding any
    29  other law, waive the application requirement for any or all  classes  of
    30  persons  where the amount of the credit or refund is equal to the amount
    31  of the tax due from the purchaser. The provisions of  subdivisions  (a),
    32  (b), and (c) of section eleven hundred thirty-nine of this article shall
    33  apply  to  applications  for refund or credit under this subdivision. No
    34  interest shall be allowed or paid on any refund made or  credit  allowed
    35  under this subdivision. If a refund is granted or a credit allowed under
    36  this  paragraph,  the  seller  or  purchaser shall not be eligible for a
    37  refund or credit pursuant to subdivision seven of section eleven hundred
    38  eighteen of this article with regard to the same purchase or use.
    39    § 3. This act shall take effect immediately and shall apply in accord-
    40  ance with applicable transitional provisions of sections 1106  and  1217
    41  of the tax law.
 
    42                                   PART Z
 
    43    Section  1.  Subdivision (ee) of section 1115 of the tax law, as added
    44  by chapter 306 of the laws of 2005, is amended to read as follows:
    45    (ee) The following shall be exempt from tax under  this  article:  (1)
    46  Receipts  from the retail sale of, and consideration given or contracted
    47  to be given for, or for the use of,  residential  solar  energy  systems
    48  equipment  and  [of]  the  service  of installing such systems [shall be
    49  exempt from tax under this article]. For the purposes of  this  subdivi-
    50  sion,  "residential  solar  energy  systems  equipment"  shall  mean  an
    51  arrangement or combination of components installed in a  residence  that
    52  utilizes  solar radiation to produce energy designed to provide heating,
    53  cooling, hot water and/or electricity. Such  arrangement  or  components
    54  shall not include equipment that is part of a non-solar energy system or

        A. 6009                            81
 
     1  which  uses  any sort of recreational facility or equipment as a storage
     2  medium.
     3    (2)  Receipts  from  the  sale  of  electricity  by a person primarily
     4  engaged in the sale of solar energy system equipment and/or  electricity
     5  generated  by such equipment pursuant to a written agreement under which
     6  such electricity is generated by residential solar energy system  equip-
     7  ment  that  is:  (A)  owned by a person other than the purchaser of such
     8  electricity; (B) installed on residential property of the  purchaser  of
     9  such electricity; and (C) used to provide heating, cooling, hot water or
    10  electricity to such property.
    11    §  2.  Subdivision  (ii) of section 1115 of the tax law, as amended by
    12  chapter 13 of the laws of 2013, is amended to read as follows:
    13    (ii) The following shall be exempt from tax under  this  article:  (1)
    14  Receipts  from the retail sale of, and consideration given or contracted
    15  to be given for, or for the use  of,  commercial  solar  energy  systems
    16  equipment  and  [of]  the  service  of installing such systems [shall be
    17  exempt from taxes imposed by sections eleven  hundred  five  and  eleven
    18  hundred  ten  of  this  article].  For the purposes of this subdivision,
    19  "commercial solar energy systems equipment" shall mean an arrangement or
    20  combination of components installed upon non-residential  premises  that
    21  utilize  solar  radiation to produce energy designed to provide heating,
    22  cooling, hot water and/or electricity. Such  arrangement  or  components
    23  shall not include equipment that is part of a non-solar energy system.
    24    (2)  Receipts  from  the  sale  of  electricity  by a person primarily
    25  engaged in the sale of solar energy system equipment and/or  electricity
    26  generated  by such equipment pursuant to a written agreement under which
    27  the electricity is generated by commercial solar energy system equipment
    28  that is: (A) owned by a person other than the purchaser  of  such  elec-
    29  tricity;  (B) installed on the non-residential premises of the purchaser
    30  of such electricity; and (C) used to provide heating, cooling, hot water
    31  or electricity to such premises.
    32    § 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the  tax
    33  law, paragraph 1 as amended by chapter 13 of the laws of 2012, and para-
    34  graph  4  as  amended by chapter 200 of the laws of 2009, are amended to
    35  read as follows:
    36    (1) Either, all of the taxes described in article twenty-eight of this
    37  chapter, at the same uniform rate, as to which taxes all  provisions  of
    38  the  local  laws, ordinances or resolutions imposing such taxes shall be
    39  identical, except as to rate and except as otherwise provided, with  the
    40  corresponding  provisions  in  such  article twenty-eight, including the
    41  definition and exemption provisions of  such  article,  so  far  as  the
    42  provisions  of  such  article twenty-eight can be made applicable to the
    43  taxes imposed by such city or  county  and  with  such  limitations  and
    44  special  provisions  as are set forth in this article. The taxes author-
    45  ized under this subdivision may not be  imposed  by  a  city  or  county
    46  unless  the  local law, ordinance or resolution imposes such taxes so as
    47  to include all portions and all types of  receipts,  charges  or  rents,
    48  subject  to  state  tax  under  sections  eleven hundred five and eleven
    49  hundred ten of this chapter, except as otherwise provided. (i) Any local
    50  law, ordinance or resolution enacted  by  any  city  of  less  than  one
    51  million  or by any county or school district, imposing the taxes author-
    52  ized by this subdivision, shall, notwithstanding any provision of law to
    53  the contrary, exclude from the operation of such local taxes  all  sales
    54  of  tangible  personal  property  for  use  or  consumption directly and
    55  predominantly in the production  of  tangible  personal  property,  gas,
    56  electricity,  refrigeration  or steam, for sale, by manufacturing, proc-

        A. 6009                            82
 
     1  essing, generating, assembly, refining, mining or  extracting;  and  all
     2  sales of tangible personal property for use or consumption predominantly
     3  either  in  the  production  of tangible personal property, for sale, by
     4  farming  or  in  a commercial horse boarding operation, or in both; and,
     5  unless such city, county or school district elects otherwise, shall omit
     6  the provision for credit or refund contained in clause six  of  subdivi-
     7  sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
     8  chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
     9  city,  county  or school district, imposing the taxes authorized by this
    10  subdivision, shall omit the residential solar energy  systems  equipment
    11  and  electricity exemption provided for in subdivision (ee), the commer-
    12  cial solar energy systems equipment and electricity  exemption  provided
    13  for in subdivision (ii) and the clothing and footwear exemption provided
    14  for  in  paragraph  thirty  of subdivision (a) of section eleven hundred
    15  fifteen of this chapter, unless such city,  county  or  school  district
    16  elects  otherwise  as  to  either  such residential solar energy systems
    17  equipment  and  electricity  exemption,  such  commercial  solar  energy
    18  systems  equipment  and electricity exemption or such clothing and foot-
    19  wear exemption.
    20    (4) Notwithstanding any other provision of law to  the  contrary,  any
    21  local  law  enacted  by any city of one million or more that imposes the
    22  taxes authorized by this subdivision (i) may omit the exception provided
    23  in subparagraph (ii) of paragraph three of subdivision  (c)  of  section
    24  eleven  hundred  five of this chapter for receipts from laundering, dry-
    25  cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
    26  (ii) may impose the tax described in paragraph six of subdivision (c) of
    27  section eleven hundred five of this chapter at a rate in addition to the
    28  rate prescribed by this section not to exceed two percent  in  multiples
    29  of  one-half  of one percent; (iii) shall provide that the tax described
    30  in paragraph six of subdivision (c) of section eleven  hundred  five  of
    31  this chapter does not apply to facilities owned and operated by the city
    32  or  an agency or instrumentality of the city or a public corporation the
    33  majority of whose members are appointed by the chief  executive  officer
    34  of  the  city  or the legislative body of the city or both of them; (iv)
    35  shall not include any tax on receipts from, or the use of, the  services
    36  described  in  paragraph  seven  of  subdivision  (c)  of section eleven
    37  hundred five of this chapter; (v) shall provide that,  for  purposes  of
    38  the  tax  described in subdivision (e) of section eleven hundred five of
    39  this chapter, "permanent resident" means any occupant  of  any  room  or
    40  rooms  in  a hotel for at least one hundred eighty consecutive days with
    41  regard to the period of such occupancy;  (vi)  may  omit  the  exception
    42  provided  in  paragraph one of subdivision (f) of section eleven hundred
    43  five of this chapter for charges to a patron for admission  to,  or  use
    44  of,  facilities  for  sporting activities in which the patron is to be a
    45  participant, such as  bowling  alleys  and  swimming  pools;  (vii)  may
    46  provide  the  clothing  and  footwear  exemption  in paragraph thirty of
    47  subdivision (a) of section eleven hundred fifteen of this chapter,  and,
    48  notwithstanding  any provision of subdivision (d) of this section to the
    49  contrary, any local law providing for such exemption or  repealing  such
    50  exemption,  may  go into effect on any one of the following dates: March
    51  first, June first, September first or December first; (viii) shall  omit
    52  the  exemption  provided  in  paragraph  forty-one of subdivision (a) of
    53  section eleven hundred fifteen of this  chapter;  (ix)  shall  omit  the
    54  exemption  provided in subdivision (c) of section eleven hundred fifteen
    55  of this chapter insofar as it applies to fuel, gas, electricity, refrig-
    56  eration and steam, and gas, electric, refrigeration and steam service of

        A. 6009                            83
 
     1  whatever nature for use or consumption directly and exclusively  in  the
     2  production  of gas, electricity, refrigeration or steam; (x) shall omit,
     3  unless such city elects otherwise, the provision for  refund  or  credit
     4  contained  in  clause  six  of  subdivision (a) or in subdivision (d) of
     5  section eleven hundred  nineteen  of  this  chapter;  [and]  (xi)  shall
     6  provide  that  section  eleven  hundred  five-C of this chapter does not
     7  apply to such taxes, and shall tax receipts from every sale, other  than
     8  sales for resale, of gas service or electric service of whatever nature,
     9  including  the  transportation,  transmission  or distribution of gas or
    10  electricity, even if sold separately, at the rate set  forth  in  clause
    11  one  of subparagraph (i) of the opening paragraph of this section; (xii)
    12  shall omit, unless such city elects otherwise, the exemption  for  resi-
    13  dential  solar  energy  systems  equipment  and  electricity provided in
    14  subdivision (ee) of section eleven hundred fifteen of this chapter;  and
    15  (xiii)  shall omit, unless such city elects otherwise, the exemption for
    16  commercial solar energy systems equipment and  electricity  provided  in
    17  subdivision  (ii) of section eleven hundred fifteen of this chapter. Any
    18  reference in this chapter or in any local law, ordinance  or  resolution
    19  enacted pursuant to the authority of this article to former subdivisions
    20  (n)  or (p) of this section shall be deemed to be a reference to clauses
    21  (xii) or (xiii) of this paragraph, respectively, and any such local law,
    22  ordinance or resolution that provides the exemptions  provided  in  such
    23  former  subdivisions  (n)  and/or (p) shall be deemed instead to provide
    24  the  exemptions  provided  in  clauses  (xii)  and/or  (xiii)  of   this
    25  paragraph.
    26    §  4.  Paragraph  1 and subparagraph (i) of paragraph 3 of subdivision
    27  (b) of section 1210 of the tax law, paragraph 1 as amended by section 36
    28  of part S-1 of chapter 57 of the laws of 2009, and subparagraph  (i)  of
    29  paragraph  3 as amended by section 3 of part B of chapter 35 of the laws
    30  of 2006, are amended to read as follows:
    31    (1) Or, one or more of the taxes described in subdivisions  (b),  (d),
    32  (e)  and (f) of section eleven hundred five of this chapter, at the same
    33  uniform rate, including the transitional provisions  in  section  eleven
    34  hundred  six  of  this  chapter  covering  such taxes, but not the taxes
    35  described in subdivisions (a) and (c) of section eleven hundred five  of
    36  this  chapter. Provided, further, that where the tax described in subdi-
    37  vision (b) of section eleven hundred five of this  chapter  is  imposed,
    38  the  compensating  use  taxes  described  in clauses (E), (G) and (H) of
    39  subdivision (a) of section eleven hundred ten of this chapter shall also
    40  be imposed. Provided, further, that where the taxes described in  subdi-
    41  vision  (b) of section eleven hundred five are imposed, such taxes shall
    42  omit: (A) the provision for refund or credit  contained  in  subdivision
    43  (d)  of  section eleven hundred nineteen of this chapter with respect to
    44  such taxes described in such subdivision (b) of section  eleven  hundred
    45  five  unless such city or county elects to provide such provision or, if
    46  so elected, to repeal such provision;  (B)  the  exemption  provided  in
    47  paragraph  two  of subdivision (ee) of section eleven hundred fifteen of
    48  this chapter unless such county or city elects otherwise;  and  (C)  the
    49  exemption provided in paragraph two of subdivision (ii) of section elev-
    50  en  hundred  fifteen  of this chapter, unless such county or city elects
    51  otherwise.
    52    (i) Notwithstanding any other provision of law to the contrary but not
    53  with respect to cities subject  to  the  provisions  of  section  eleven
    54  hundred eight of this chapter, any city or county, except a county whol-
    55  ly  contained  within a city, may provide that the tax imposed, pursuant
    56  to this subdivision, by such city or county on the sale, other than  for

        A. 6009                            84
 
     1  resale,  of  propane  (except  when  sold in containers of less than one
     2  hundred pounds), natural gas, electricity, steam and gas,  electric  and
     3  steam  services  of whatever nature used for residential purposes and on
     4  the  use  of  gas  or  electricity  used for residential purposes may be
     5  imposed at a lower rate than the uniform local rate imposed pursuant  to
     6  the  opening  paragraph  of this section, as long as such rate is one of
     7  the rates authorized by such paragraph  or  such  sale  or  use  may  be
     8  exempted  from such taxes. Provided, however, such lower rate must apply
     9  to all such energy sources and services and at the same rate and no such
    10  exemption, other than the exemption provided for in subdivision (ee)  of
    11  section  eleven  hundred  fifteen  of this chapter, if such exemption is
    12  elected by such city or county, may be  enacted  unless  such  exemption
    13  applies to all such energy sources and services.
    14    §  4-a.  Subdivision (d) of section 1210 of the tax law, as amended by
    15  section 37 of part S-1 of chapter 57 of the laws of 2009, is amended  to
    16  read as follows:
    17    (d)  A local law, ordinance or resolution imposing any tax pursuant to
    18  this section, increasing or decreasing the rate of such  tax,  repealing
    19  or  suspending  such tax, exempting from such tax the energy sources and
    20  services described in paragraph three of subdivision (a) or of  subdivi-
    21  sion  (b)  of  this  section or changing the rate of tax imposed on such
    22  energy sources and services  or  providing  for  the  credit  or  refund
    23  described  in  clause  six  of subdivision (a) of section eleven hundred
    24  nineteen of this chapter, or electing or  repealing  the  exemption  for
    25  residential  solar  equipment  and  electricity  in  subdivision (ee) of
    26  section eleven hundred fifteen of this article,  or  the  exemption  for
    27  commercial  solar  equipment  and  electricity  in  subdivision  (ii) of
    28  section eleven hundred fifteen of this article must go into effect  only
    29  on  one of the following dates: March first, June first, September first
    30  or December first; provided, that a local law, ordinance  or  resolution
    31  providing for the exemption described in paragraph thirty of subdivision
    32  (a)  of  section eleven hundred fifteen of this chapter or repealing any
    33  such exemption or a local law, ordinance or resolution providing  for  a
    34  refund  or credit described in subdivision (d) of section eleven hundred
    35  nineteen of this chapter or repealing such provision so provided must go
    36  into effect only on March first. No such local law, ordinance or  resol-
    37  ution  shall be effective unless a certified copy of such law, ordinance
    38  or resolution is mailed by registered or certified mail to  the  commis-
    39  sioner at the commissioner's office in Albany at least ninety days prior
    40  to  the  date  it  is to become effective. However, the commissioner may
    41  waive and reduce such ninety-day minimum notice requirement to a mailing
    42  of such certified copy by registered or certified mail within  a  period
    43  of not less than thirty days prior to such effective date if the commis-
    44  sioner deems such action to be consistent with the commissioner's duties
    45  under  section twelve hundred fifty of this article and the commissioner
    46  acts by resolution. Where the restriction provided for in section twelve
    47  hundred twenty-three of this article as to the effective date of  a  tax
    48  and  the notice requirement provided for therein are applicable and have
    49  not been waived, the  restriction  and  notice  requirement  in  section
    50  twelve hundred twenty-three of this article shall also apply.
    51    §  5.  Subdivisions  (n)  and  (p)  of section 1210 of the tax law are
    52  REPEALED.
    53    § 6. Subdivision (a) of section 1212 of the tax  law,  as  amended  by
    54  section  40 of part S-1 of chapter 57 of the laws of 2009, is amended to
    55  read as follows:

        A. 6009                            85
 
     1    (a) Any school district which is coterminous with,  partly  within  or
     2  wholly  within a city having a population of less than one hundred twen-
     3  ty-five thousand, is hereby authorized and empowered, by  majority  vote
     4  of  the  whole  number  of  its school authorities, to impose for school
     5  district purposes, within the territorial limits of such school district
     6  and  without  discrimination between residents and nonresidents thereof,
     7  the taxes described in subdivision (b) of section  eleven  hundred  five
     8  (but  excluding  the  tax on prepaid telephone calling services) and the
     9  taxes described in clauses (E) and (H) of  subdivision  (a)  of  section
    10  eleven hundred ten, including the transitional provisions in subdivision
    11  (b)  of  section  eleven  hundred  six  of  this chapter, so far as such
    12  provisions can be made applicable to the taxes imposed  by  such  school
    13  district  and  with  such  limitations and special provisions as are set
    14  forth in this article, such taxes to be imposed at the rate of one-half,
    15  one, one and one-half, two, two and one-half or three percent which rate
    16  shall be uniform for all portions and all types  of  receipts  and  uses
    17  subject  to  such taxes. In respect to such taxes, all provisions of the
    18  resolution imposing them, except as to  rate  and  except  as  otherwise
    19  provided herein, shall be identical with the corresponding provisions in
    20  such  article  twenty-eight  of  this  chapter, including the applicable
    21  definition and exemption provisions of  such  article,  so  far  as  the
    22  provisions  of  such  article  twenty-eight  of this chapter can be made
    23  applicable to the taxes imposed by such school district  and  with  such
    24  limitations and special provisions as are set forth in this article. The
    25  taxes  described  in subdivision (b) of section eleven hundred five (but
    26  excluding the tax on prepaid telephone calling service) and clauses  (E)
    27  and  (H) of subdivision (a) of section eleven hundred ten, including the
    28  transitional provision in subdivision (b) of such section eleven hundred
    29  six of this chapter, may not be imposed by such school  district  unless
    30  the  resolution imposes such taxes so as to include all portions and all
    31  types of receipts and uses subject to tax under  such  subdivision  (but
    32  excluding  the  tax  on  prepaid telephone calling service) and clauses.
    33  Provided, however, that, where a school  district  imposes  such  taxes,
    34  such  taxes  shall  omit the provision for refund or credit contained in
    35  subdivision (d) of section eleven hundred nineteen of this chapter  with
    36  respect to such taxes described in such subdivision (b) of section elev-
    37  en  hundred  five  unless  such  school  district elects to provide such
    38  provision or, if so elected, to repeal such provision,  and  shall  omit
    39  the  exemption  provided  in paragraph two of either subdivision (ee) or
    40  subdivision (ii) of section  eleven  hundred  fifteen  of  this  chapter
    41  unless such school district elects otherwise.
    42    §  7.  Section 1224 of the tax law is amended by adding a new subdivi-
    43  sion (c-1) to read as follows:
    44    (c-1) Notwithstanding any other provision of law: (1) Where  a  county
    45  containing one or more cities with a population of less than one million
    46  has elected the exemption for residential solar energy systems equipment
    47  and  electricity  provided in subdivision (ee) of section eleven hundred
    48  fifteen of this chapter,  the  exemption  for  commercial  solar  energy
    49  systems  equipment  and electricity provided in subdivision (ii) of such
    50  section eleven hundred fifteen, or both such exemptions, a  city  within
    51  such  county  shall  have  the  prior right to impose tax on such exempt
    52  equipment and/or electricity to the extent of one half  of  the  maximum
    53  rates  authorized under subdivision (a) of section twelve hundred ten of
    54  this article;
    55    (2) Where a city of less than one million has  elected  the  exemption
    56  for  residential solar energy systems equipment and electricity provided

        A. 6009                            86
 
     1  in subdivision (ee) of section eleven hundred fifteen of  this  chapter,
     2  the  exemption  for  commercial solar energy systems equipment and elec-
     3  tricity provided in subdivision (ii)  of  such  section  eleven  hundred
     4  fifteen,  or  both  such  exemptions,  the  county in which such city is
     5  located shall have the prior right to impose tax on such  exempt  equip-
     6  ment  and/or  electricity to the extent of one half of the maximum rates
     7  authorized under subdivision (a) of section twelve hundred ten  of  this
     8  article.
     9    §  8.  This  act shall take effect December 1, 2015 and shall apply in
    10  accordance with the applicable transitional provisions in sections  1106
    11  and 1217 of the tax law.

    12                                   PART AA
 
    13    Section 1. Subdivision (f) of section 301-c of the tax law, as amended
    14  by section 23 of part K of chapter 61 of the laws of 2011, is amended to
    15  read as follows:
    16    (f) Motor fuel and highway diesel motor fuel used for farm production.
    17  No more than one thousand five hundred gallons of motor fuel and no more
    18  than  four  thousand  five  hundred gallons of highway diesel motor fuel
    19  purchased in this state in a thirty-day period or a greater amount which
    20  has been given prior clearance by the commissioner, by  a  consumer  for
    21  use  or  consumption directly and exclusively in the production for sale
    22  of tangible personal property by farming, but only if all of such  motor
    23  fuel  or  highway diesel motor fuel is delivered on the farm site and is
    24  consumed other than on the public highways of this state (except for the
    25  use of the public highway to reach adjacent farmlands). This  reimburse-
    26  ment  to such purchaser who used such motor fuel or highway diesel motor
    27  fuel in the manner specified in this subdivision  may  be  claimed  only
    28  where,  (i)  the tax imposed pursuant to this article has been paid with
    29  respect to such motor fuel or highway diesel motor fuel and  the  entire
    30  amount  of  such  tax has been absorbed by such purchaser, and (ii) such
    31  purchaser possesses documentary proof satisfactory to  the  commissioner
    32  evidencing  the absorption by it of the entire amount of the tax imposed
    33  pursuant to this article. Provided, however, that the commissioner shall
    34  require such documentary proof to qualify for any reimbursement  of  tax
    35  provided  by this subdivision as the commissioner deems appropriate. The
    36  commissioner is hereby empowered  to  make  such  provisions  as  deemed
    37  necessary  to  define  the  procedures  for granting prior clearance for
    38  purchases of more than one thousand five hundred gallons of  motor  fuel
    39  or  four thousand five hundred gallons of highway diesel motor fuel in a
    40  thirty-day period.
    41    § 2. This act shall take effect immediately.
 
    42                                   PART BB
 
    43    Section 1. Subsections (b) and (c) of section  952  of  the  tax  law,
    44  subsection  (b)  as  amended and subsection (c) as added by section 2 of
    45  part X of chapter 59 of the  laws  of  2014,  are  amended  to  read  as
    46  follows:
    47    (b)  Computation  of  tax.  The  tax  imposed by this section shall be
    48  computed on the deceased resident's New York taxable estate as follows:
    49  [In the case of decedents dying on or after April  1,  2014  and  before
    50  April 1, 2015]

        A. 6009                            87
 
     1  If the New York taxable estate is:      The tax is:
     2  Not over $500,000                       3.06% of taxable estate
     3  Over $500,000 but not over $1,000,000   $15,300 plus 5.0% of excess over
     4                                          $500,000
     5  Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
     6                                          $1,000,000
     7  Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
     8                                          $1,500,000
     9  Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
    10                                          over $2,100,000
    11  Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
    12                                          $2,600,000
    13  Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
    14                                          $3,100,000
    15  Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
    16                                          over $3,600,000
    17  Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
    18                                          over $4,100,000
    19  Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
    20                                          over $5,100,000
    21  Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
    22                                          over $6,100,000
    23  Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
    24                                          over $7,100,000
    25  Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
    26                                          over $8,100,000
    27  Over $9,100,000 but not over            $930,800 plus 15.2% of excess over
    28  $10,100,000                             $9,100,000
    29  Over $10,100,000                        $1,082,800 plus 16.0% of excess
    30                                          over $10,100,000
    31    (c)  Applicable  credit  amount. (1) A credit of the applicable credit
    32  amount shall be allowed against the  tax  imposed  by  this  section  as
    33  provided  in  this  subsection. In the case of a decedent whose New York
    34  taxable estate is less than or equal to the basic exclusion amount,  the
    35  applicable  credit  amount  shall be the amount of tax that would be due
    36  under subsection (b) of this section on such decedent's New York taxable
    37  estate. In the case of a decedent whose New York taxable estate  exceeds
    38  the  basic  exclusion  amount by an amount that is less than or equal to
    39  five percent of such amount, the applicable credit amount shall  be  the
    40  amount  of tax that would be due under subsection (b) of this section if
    41  the amount on which the tax is to be computed were equal  to  the  basic
    42  exclusion  amount  multiplied  by one minus a fraction, the numerator of
    43  which is the decedent's New York taxable estate minus the  basic  exclu-
    44  sion  amount,  and the denominator of which is five percent of the basic
    45  exclusion amount. Provided, however, that the  credit  allowed  by  this
    46  subsection  shall  not  exceed  the  tax imposed by this section, and no
    47  credit shall be allowed to the estate of any  decedent  whose  New  York
    48  taxable  estate  exceeds one hundred five percent of the basic exclusion
    49  amount. Provided, further, that the credit allowed  by  this  subsection
    50  shall  be increased by an amount equal to the unused exclusion amount of
    51  the descendent's last deceased spouse.
    52    (2) (A) For purposes of this section, the basic exclusion amount shall
    53  be as follows:
    54  In the case of decedents dying on or after: The basic  exclusion  amount
    55  is:

        A. 6009                            88
 
     1  April 1, 2014 and before April 1, 2015       $ 2,062,500
     2  April 1, 2015 and before April 1, 2016       3,125,000
     3  April 1, 2016 and before April 1, 2017       4,187,500
     4  April 1, 2017 and before January 1, 2019     5,250,000
     5    (B)  In the case of any decedent dying in a calendar year beginning on
     6  or after January first,  two  thousand  nineteen,  the  basic  exclusion
     7  amount shall be equal to:
     8    (i) five million dollars, multiplied by
     9    (ii)  one  plus  the  cost-of-living  adjustment,  which  shall be the
    10  percentage by which the consumer price index for the preceding  calendar
    11  year  exceeds  the  consumer  price index for calendar year two thousand
    12  ten.
    13    (C) (i) For purposes of this paragraph, "consumer price  index"  means
    14  the  most  recent consumer price index for all-urban consumers published
    15  by the United States department of labor.
    16    (ii) For purposes of clause (ii) of subparagraph  (B)  of  this  para-
    17  graph, the consumer price index for any calendar year shall be the aver-
    18  age  of  the  consumer  price  index as of the close of the twelve-month
    19  period ending on August thirty-first of such calendar year.
    20    (iii) If any amount adjusted under this paragraph is not a multiple of
    21  ten thousand dollars, such amount shall be rounded to the nearest multi-
    22  ple of ten thousand dollars.
    23    (3)(A) For decedents dying on  or  after  April  first,  two  thousand
    24  fifteen,  the credit allowed by this subsection shall be increased by an
    25  amount equal to the unused  exclusion  amount  of  the  decedent's  last
    26  deceased spouse.
    27    (B)  For  purposes  of this subsection, the unused exclusion amount of
    28  the decedent's last deceased spouse is the basic exclusion amount of the
    29  last such deceased spouse of such surviving spouse minus the amount with
    30  respect to which the tax is determined and imposed by this subsection on
    31  the estate of such deceased spouse.
    32    (C) Provided, however, that no credit amount of  the  decedent's  last
    33  deceased  spouse  shall be allowed if the New York taxable estate of the
    34  decedent's last deceased spouse was equal to or greater than  the  basic
    35  exclusion  amount  allowable  at the date of death of such last deceased
    36  spouse. The credit amount of the decedent's  last  deceased  spouse,  as
    37  referenced  in  the immediately preceding sentence of this subparagraph,
    38  shall take into account such adjustments as may be warranted pursuant to
    39  paragraph one of this subsection.
    40    (D) Any election made under this paragraph shall  be  irrevocable.  No
    41  election  may be made under this paragraph if such return is filed after
    42  the time prescribed by law (including extensions) for filing the return.
    43    § 2. Paragraph 3 of subsection (a) of section 954 of the tax  law,  as
    44  added  by  section  3  of  part  X of chapter 59 of the laws of 2014, is
    45  amended to read as follows:
    46    (3) Increased by the amount of any taxable gift under section 2503  of
    47  the  internal  revenue  code  not  otherwise  included in the decedent's
    48  federal gross estate, made during the three year period  ending  on  the
    49  decedent's  date  of  death, but not including any gift made:  [(1)] (A)
    50  when the decedent was not a resident of New York state; [(2)]    or  (B)
    51  before  April first, two thousand fourteen; or [(3)] (C) that is real or
    52  tangible personal property having  an  actual  situs  outside  New  York
    53  state,  at  the  time  such  gift was made. Provided, however, that this
    54  paragraph shall not apply to the estate of a decedent dying on or  after
    55  January first, two thousand nineteen.

        A. 6009                            89

     1    § 3. Subsection (c) of section 955 of the tax law, as added by section
     2  4  of  part  X  of chapter 59 of the laws of 2014, is amended to read as
     3  follows:
     4    (c)  Qualified  terminable  interest  property  election.--  Except as
     5  otherwise provided in this subsection, the election referred to in para-
     6  graph (7) of subsection (b) of section 2056 of the internal revenue code
     7  shall not be allowed under this article unless such  election  was  made
     8  with respect to the federal estate tax return required to be filed under
     9  the  provisions  of the internal revenue code. If such election was made
    10  for the purposes of the federal estate tax, then such election must also
    11  be made by the executor on the return of the tax imposed by  this  arti-
    12  cle.  Where  no  federal estate tax return is required to be filed and a
    13  federal estate tax return is filed solely to elect the deceased  spousal
    14  unused  exclusion  amount under paragraphs (4) and (5) of subsection (c)
    15  of section 2010 of the internal revenue code, the executor may make  the
    16  election  referred  to  in  such  paragraph  (7) with respect to the tax
    17  imposed by this article on the return of the tax imposed by  this  arti-
    18  cle. Any election made under this subsection shall be irrevocable.
    19    §  4.  Subsection  (b)  of  section  960 of the tax law, as amended by
    20  section 5 of part X of chapter 59 of the laws of  2014,  is  amended  to
    21  read as follows:
    22    (b) Computation of tax.--The tax imposed under subsection (a) shall be
    23  the  same as the tax that would be due, if the decedent had died a resi-
    24  dent, under subsection (a) of section  nine  hundred  fifty-two,  except
    25  that  for  purposes of computing the tax under subsection (b) of section
    26  nine hundred fifty-two, "New York taxable estate" shall not include  the
    27  value  of,  or  any  deduction allowable under the Internal Revenue Code
    28  related to, any intangible personal property otherwise includible in the
    29  deceased individual's New York gross estate, and shall not  include  the
    30  amount  of  any  gift  unless  such  gift  consists  of real or tangible
    31  personal property having an actual situs in New York state or intangible
    32  personal property employed in a business, trade or profession carried on
    33  in this state.
    34    § 5. This act shall take effect immediately and  shall  be  deemed  to
    35  have been in full force and effect on and after April 1, 2015.
 
    36                                   PART CC
 
    37    Section  1.  Section  282  of  the  tax law is amended by adding a new
    38  subdivision 27 to read as follows:
    39    27. "Wholesaler of motor fuel" means any person, firm, association  or
    40  corporation who or which is not a distributor of motor fuel, and makes a
    41  sale  of  motor fuel in this state other than a retail sale not in bulk.
    42  For the purposes of this article when used with respect to motor fuel, a
    43  "retail sale not in bulk" means the making or offering to make any  sale
    44  of  motor  fuel  to  a consumer of such fuel which is delivered directly
    45  into a motor vehicle for use in the operation of such vehicle. A "retail
    46  sale in bulk" means the making or offering to make  any  sale  of  motor
    47  fuel to a consumer which is other than a "retail sale not in bulk".
    48    §  2.  The tax law is amended by adding a new section 283-d to read as
    49  follows:
    50    § 283-d. Registration of wholesalers of motor fuel.  (a)  Registration
    51  required.  Each  wholesaler  of  motor  fuel must be registered with the
    52  department under this section.  No wholesaler of motor fuel shall make a
    53  sale of motor fuel in this state other than a retail sale  not  in  bulk
    54  unless  such  wholesaler  is  so  registered.   The department, upon the

        A. 6009                            90
 
     1  application of a person, shall register such person as a  wholesaler  of
     2  motor fuel except that the commissioner may refuse to register an appli-
     3  cant  for  any  of  the  grounds specified in subdivision two or five of
     4  section  two  hundred eighty-three of this article or in subdivision (c)
     5  of this section. The application shall be in such form and contain  such
     6  information  as  the commissioner shall prescribe. All of the provisions
     7  of subdivisions two, four, five, six, seven,  eight,  nine  and  ten  of
     8  section  two  hundred eighty-three of this article relating to registra-
     9  tion of distributors shall be applicable to the registration  of  whole-
    10  salers  of  motor fuel under this section with the same force and effect
    11  as if the language of such subdivisions had been incorporated in full in
    12  this section and had expressly referred to the  registration  of  whole-
    13  salers  of  motor  fuel,  with  such modification as may be necessary in
    14  order to adapt the language of such provisions to the provisions of this
    15  section, provided, specifically, that the term  "distributor"  shall  be
    16  read  as  "wholesaler  of  motor fuel."   Provided, however, that if the
    17  commissioner is satisfied that the requirements of such  provisions  for
    18  registration  are  not  necessary  in order to protect tax revenues, the
    19  commissioner may limit or modify such requirements with respect  to  any
    20  person not required to be registered as a distributor of motor fuel.
    21    (b)  Bond or other security. The commissioner may require a wholesaler
    22  of motor fuel seeking a registration to file with the department a  bond
    23  issued  by  a surety company approved by the superintendent of financial
    24  services as to solvency and responsibility and  authorized  to  transact
    25  business in this state or other security acceptable to the commissioner,
    26  in  such amount as the commissioner may fix to secure the performance by
    27  such wholesaler  of  motor  fuel  of  the  duties  and  responsibilities
    28  required  (i)  pursuant  to  this  article and (ii) pursuant to articles
    29  twenty-eight and twenty-nine of this chapter with respect to motor fuel.
    30  The commissioner may require that such a bond or other security be filed
    31  before a wholesaler of motor fuel is registered, and the amount  thereof
    32  may  be  increased  at  any time when in the commissioner's judgment the
    33  same is necessary. If securities are deposited as  security  under  this
    34  subdivision,  such  securities shall be kept in the joint custody of the
    35  comptroller and the commissioner and may be sold by the commissioner  if
    36  it  becomes  necessary  so to do in order to recover against such whole-
    37  saler of motor fuel but no such sale  shall  be  had  until  after  such
    38  wholesaler  of  motor  fuel  shall  have had opportunity to litigate the
    39  validity of the liability if it elects to do so. Upon any such sale  the
    40  surplus, if any, above the sums due shall be returned to such wholesaler
    41  of  motor  fuel.  The  department,  when authorized by the wholesaler of
    42  motor fuel, shall furnish information regarding the registration of  the
    43  wholesaler  of motor fuel and any other information which the wholesaler
    44  of motor fuel authorizes it to disclose.
    45    (c) Refusal to register. For the purposes of  determining  whether  to
    46  refuse  an  application  for registration under this section, the refer-
    47  ences in subdivision two of section two  hundred  eighty-three  of  this
    48  article to employees or shareholders under a duty to file a return under
    49  or pursuant to the authority of this article or pay the taxes imposed by
    50  or  pursuant to the authority of this article on behalf of the applicant
    51  or another person shall be deemed to also include an  employee  under  a
    52  duty to file a return or pay taxes under or pursuant to the authority of
    53  this article on behalf of such applicant or other person. In addition to
    54  the  grounds specified in section two hundred eighty-three of this arti-
    55  cle, the commissioner may refuse to  register  an  applicant  where  the
    56  commissioner  ascertains  that  the  applicant,  an officer, director or

        A. 6009                            91
 
     1  partner of the applicant, a shareholder directly  or  indirectly  owning
     2  more than ten percent of the number of shares of stock of such applicant
     3  (where  such applicant is a corporation) entitling the holder thereof to
     4  vote for the election of directors or trustees, or an employee or share-
     5  holder of such applicant who, as such employee or shareholder is under a
     6  duty to file a return under or pursuant to the authority of this article
     7  or  to  pay  the  taxes  imposed by or pursuant to the authority of this
     8  article on behalf of the applicant; (1) has committed any of the acts or
     9  omissions which are, or was convicted as, specified in  subdivision  (d)
    10  of  this section within the preceding five years; or (2) was an officer,
    11  director or partner of another person, or  who  directly  or  indirectly
    12  owned  more  than  ten  percent of the shares of stock of another person
    13  (where such other person is a corporation) entitling the holder  thereof
    14  to vote for the election of directors or trustees, or who was an employ-
    15  ee  or shareholder of another person under a duty to file a return under
    16  or pursuant to the authority of this article or pay the taxes imposed by
    17  or pursuant to the authority of this article on  behalf  of  such  other
    18  person  at the time such other person committed any of the acts or omis-
    19  sions which are, or was convicted as, specified in  subdivision  (d)  of
    20  this section within the preceding five years.
    21    (d)  Cancellation  or  suspension  of  registration. The grounds for a
    22  cancellation or suspension of a registration under  this  section  as  a
    23  wholesaler  of  motor  fuel  are  the same as those grounds specified in
    24  section two hundred eighty-three of this article  and,  in  addition  to
    25  such  grounds,  the  following  grounds  relating  to this article shall
    26  apply:
    27    (1) A registration as a wholesaler of motor fuel may be  cancelled  or
    28  suspended  if  the commissioner determines that a registrant or an offi-
    29  cer, director or partner of the registrant, a  shareholder  directly  or
    30  indirectly owning more than ten percent of the number of shares of stock
    31  of  such  registrant  (where such registrant is a corporation) entitling
    32  the holder thereof to vote for the election of directors or trustees, or
    33  an employee or shareholder of such registrant under a  duty  to  file  a
    34  return  under or pursuant to the authority of this article or to pay the
    35  taxes imposed by or pursuant to the authority of this article on  behalf
    36  of the registrant
    37    (A) fails to file or maintain in full force and effect a bond or other
    38  security  when  required  pursuant to subdivision (b) of this section or
    39  when the amount thereof is increased,
    40    (B) fails to comply with any of the provisions of this article or  any
    41  rule or regulation adopted pursuant to this article by the commissioner,
    42    (C)  knowingly  aids  and abets another person in violating any of the
    43  provisions of this article or any rule or regulation adopted pursuant to
    44  this article by the commissioner,
    45    (D) transfers its registration as a wholesaler of motor  fuel  without
    46  the prior written approval of the commissioner,
    47    (E) with respect to a wholesaler of motor fuel which is a corporation,
    48  has  been dissolved pursuant to section two hundred three-a and subdivi-
    49  sion (d) of section three hundred ten of this chapter,
    50    (F) commits fraud or deceit in his, her or its operations as a  whole-
    51  saler  of  motor fuel or has committed fraud or deceit in procuring his,
    52  her or its registration,
    53    (G) has impersonated any person represented  to  be  a  wholesaler  of
    54  motor fuel under this article but not in fact registered as a wholesaler
    55  of motor fuel, or

        A. 6009                            92
 
     1    (H) has knowingly aided and abetted the distribution of motor fuel, by
     2  any person which such registrant or such other person knows has not been
     3  registered by the commissioner as required under this article.
     4    (2)  A  registration as a wholesaler of motor fuel may be cancelled or
     5  suspended if the commissioner determines that a registrant or  an  offi-
     6  cer,  director  or  partner of the registrant, a shareholder directly or
     7  indirectly owning more than ten percent of the number of shares of stock
     8  of such registrant (where such registrant is  a  corporation)  entitling
     9  the holder thereof to vote for the election of directors or trustees, or
    10  an  employee  or  shareholder  of such registrant under a duty to file a
    11  return under or pursuant to the authority of this article or to pay  the
    12  taxes  imposed by or pursuant to the authority of this article on behalf
    13  of the registrant, was an officer, director or partner of another person
    14  or was a shareholder directly or indirectly owning more than ten percent
    15  of the number of shares of stock of another  person  (where  such  other
    16  person  is  a  corporation) entitling the holder thereof to vote for the
    17  election of directors or trustees, or was an employee or shareholder  of
    18  another  person  under  a duty to file a return under or pursuant to the
    19  authority of this article or to pay the taxes imposed by or pursuant  to
    20  the authority of this article on behalf of such other person at the time
    21  such  other  person committed any of the acts specified in paragraph one
    22  of this subdivision within the preceding five years.
    23    (e) Cancellation or suspension of registration  prior  to  a  hearing.
    24  The  grounds for cancelling or suspending a registration as a wholesaler
    25  of motor fuel prior to a hearing shall be the same as those specified in
    26  subdivision five of section two hundred  eighty-three  of  this  article
    27  and, in addition to such grounds, the following grounds relating to this
    28  article shall apply:
    29    (1)  the  failure  to  file  a  return  within  ten  days  of the date
    30  prescribed for filing a return under  this  article  if  the  registrant
    31  shall have failed to file such return within ten days after the date the
    32  demand  therefor  is sent by registered or certified mail to the address
    33  of the wholesaler of motor fuel given in its application, or an  address
    34  substituted  therefor  as  provided  in  subdivision five of section two
    35  hundred eighty-three of this article,
    36    (2) the failure to continue to maintain in full force  and  effect  at
    37  all  times  the  bond or other security required to be filed pursuant to
    38  subdivision (b) of this section, provided, however,  that  if  a  surety
    39  bond  is  cancelled  prior  to  expiration,  the  commissioner may after
    40  considering all the relevant circumstances make such other arrangements,
    41  and may require the filing of such other bond or other  security  as  it
    42  deems appropriate,
    43    (3) the transfer of a registration as a wholesaler of motor fuel with-
    44  out the prior written approval of the commissioner, or
    45    (4) with respect to a wholesaler of motor fuel which is a corporation,
    46  the  dissolution  or  annulment  of such corporation pursuant to section
    47  three hundred ten of this chapter.
    48    § 3. Section 287 of the tax law is amended by adding a new subdivision
    49  3 to read as follows:
    50    3. Every wholesaler of motor fuel shall, on or  before  the  twentieth
    51  day  of  each  month,  file  with  the  department  a  return,  on forms
    52  prescribed by the commissioner stating the number of  gallons  of  motor
    53  fuel  purchased  and  sold  by  such  wholesaler in the state during the
    54  preceding calendar month.  For each purchase and sale, the date,  number
    55  of  gallons  of motor fuel purchased or sold, and the name of the seller
    56  or purchaser shall be set  forth  on  the  return.  Such  returns  shall

        A. 6009                            93
 
     1  contain  such further information as the commissioner shall require. The
     2  fact that a wholesaler's name is signed to a filed return shall be prima
     3  facie evidence for all purposes that the return was actually  signed  by
     4  such wholesaler of motor fuel.
     5    §  4.  Section 1102 of the tax law is amended by adding a new subdivi-
     6  sion (f) to read as follows:
     7    (f) Every wholesaler of motor fuel, as such term is defined by  subdi-
     8  vision  twenty-seven  of section two hundred eighty-two of this chapter,
     9  shall pay or be entitled to a credit or refund of  the  tax  imposed  by
    10  this  section on gallons of motor fuel under the circumstances set forth
    11  in paragraph three of subdivision (e) of section eleven  hundred  eleven
    12  of this article.
    13    §  5.  Subdivision  (e)  of  section 1111 of the tax law is amended by
    14  adding a new paragraph 3 to read as follows:
    15    (3) When a wholesaler of motor fuel sells motor fuel in a  region,  as
    16  defined  in paragraph one of this subdivision, different from the region
    17  in which such motor fuel was purchased:
    18    (i) if the region in which it  sells  the  motor  fuel  has  a  higher
    19  prepaid  rate  as set forth in this subdivision than the region in which
    20  the wholesaler purchased the motor fuel in, the wholesaler shall pay  to
    21  the department the difference in the rates for the gallonage sold.
    22    (ii)  if  the  region  in  which  it  sells the motor fuel has a lower
    23  prepaid rate as set forth in this subdivision than the region  in  which
    24  the  wholesaler  purchased the motor fuel, the wholesaler shall be enti-
    25  tled to a credit or refund for the  difference  in  the  rates  for  the
    26  gallonage sold.
    27    §  6. The tax law is amended by adding a new section 1812-g to read as
    28  follows:
    29    § 1812-g. Person not registered as a wholesaler  of  motor  fuel.  Any
    30  person  who, while not registered as a wholesaler of motor fuel pursuant
    31  to the provisions of article twelve-A of this chapter, makes a  sale  of
    32  motor  fuel in this state other than a retail sale not in bulk, shall be
    33  guilty of a class E felony.
    34    § 7. This act shall take effect September 1, 2015.
 
    35                                   PART DD
 
    36    Section 1. Section 2 of part Q of chapter 59  of  the  laws  of  2013,
    37  amending  the  tax  law  relating  to  serving  an income execution with
    38  respect to individual tax debtors without filing a warrant,  is  amended
    39  to read as follows:
    40    §  2.  This act shall take effect immediately [and shall expire and be
    41  deemed repealed on and after April 1, 2015].
    42    § 2. This act shall take effect immediately.
 
    43                                   PART EE
 
    44                            Intentionally Omitted
 
    45                                   PART FF
 
    46                            Intentionally Omitted
 
    47                                   PART GG

        A. 6009                            94
 
     1                            Intentionally Omitted
 
     2                                   PART HH
 
     3                            Intentionally Omitted
 
     4                                   PART II
 
     5                            Intentionally Omitted

     6                                   PART JJ
 
     7                            Intentionally Omitted
 
     8                                   PART KK
 
     9                            Intentionally Omitted
 
    10                                   PART LL
 
    11                            Intentionally Omitted
 
    12                                   PART MM
 
    13    Section  1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
    14  sion b of section 1612 of the tax law, as amended by section 1  of  part
    15  BB of chapter 59 of the laws of 2014, is amended to read as follows:
    16    (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
    17  this subparagraph, the track operator of a vendor track shall be  eligi-
    18  ble  for  a  vendor's  capital  award of up to four percent of the total
    19  revenue wagered at the vendor track after payout for prizes pursuant  to
    20  this  chapter,  which  shall  be  used  exclusively  for capital project
    21  investments to improve the facilities of the vendor track which  promote
    22  or  encourage  increased attendance at the video lottery gaming facility
    23  including, but not limited to hotels, other lodging  facilities,  enter-
    24  tainment   facilities,  retail  facilities,  dining  facilities,  events
    25  arenas, parking garages and other  improvements  that  enhance  facility
    26  amenities;  provided  that such capital investments shall be approved by
    27  the division, in consultation with the state racing and wagering  board,
    28  and  that  such vendor track demonstrates that such capital expenditures
    29  will increase patronage at such vendor track's facilities  and  increase
    30  the amount of revenue generated to support state education programs. The
    31  annual  amount of such vendor's capital awards that a vendor track shall
    32  be eligible to receive shall be limited  to  two  million  five  hundred
    33  thousand  dollars,  except for Aqueduct racetrack, for which there shall
    34  be no vendor's capital awards. Except for tracks having  less  than  one
    35  thousand  one  hundred  video  gaming  machines, and except for a vendor
    36  track located west of State Route 14 from Sodus Point to the  Pennsylva-
    37  nia  border  within  New  York, each track operator shall be required to
    38  co-invest an amount of  capital  expenditure  equal  to  its  cumulative

        A. 6009                            95
 
     1  vendor's  capital  award. For all tracks, except for Aqueduct racetrack,
     2  the amount of any vendor's capital award that is not used during any one
     3  year period may be carried over  into  subsequent  years  ending  before
     4  April  first, two thousand [fifteen] sixteen. Any amount attributable to
     5  a capital expenditure  approved  prior  to  April  first,  two  thousand
     6  [fifteen] sixteen and completed before April first, two thousand [seven-
     7  teen]  eighteen;  or  approved prior to April first, two thousand [nine-
     8  teen] twenty and completed before April first, two thousand [twenty-one]
     9  twenty-two for a vendor track located west of State Route 14 from  Sodus
    10  Point  to  the Pennsylvania border within New York, shall be eligible to
    11  receive the vendor's capital award. In the event that a  vendor  track's
    12  capital expenditures, approved by the division prior to April first, two
    13  thousand [fifteen] sixteen and completed prior to April first, two thou-
    14  sand  [seventeen] eighteen, exceed the vendor track's cumulative capital
    15  award during the five year  period  ending  April  first,  two  thousand
    16  [fifteen]  sixteen,  the  vendor  shall  continue to receive the capital
    17  award after April first,  two  thousand  [fifteen]  sixteen  until  such
    18  approved  capital  expenditures  are paid to the vendor track subject to
    19  any required co-investment. In no event  shall  any  vendor  track  that
    20  receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
    21  be  eligible for a vendor's capital award under this section. Any opera-
    22  tor of a vendor track which  has  received  a  vendor's  capital  award,
    23  choosing  to  divest  the capital improvement toward which the award was
    24  applied, prior to the full depreciation of the  capital  improvement  in
    25  accordance  with  generally  accepted accounting principles, shall reim-
    26  burse the state in amounts equal to the total of any  such  awards.  Any
    27  capital  award not approved for a capital expenditure at a video lottery
    28  gaming facility by April first, two thousand [fifteen] sixteen shall  be
    29  deposited into the state lottery fund for education aid; and
    30    § 2. This act shall take effect immediately.
 
    31                                   PART NN
 
    32    Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
    33  racing, pari-mutuel wagering and breeding law, as amended by  section  1
    34  of  part  AA  of  chapter  59 of the laws of 2014, is amended to read as
    35  follows:
    36    (a) Any  racing  association  or  corporation  or  regional  off-track
    37  betting  corporation,  authorized  to conduct pari-mutuel wagering under
    38  this chapter, desiring to display the simulcast of horse races on  which
    39  pari-mutuel  betting shall be permitted in the manner and subject to the
    40  conditions provided for in this article may apply to the commission  for
    41  a  license  so to do. Applications for licenses shall be in such form as
    42  may be prescribed by the commission and shall contain  such  information
    43  or  other material or evidence as the commission may require. No license
    44  shall be issued by the commission authorizing the simulcast transmission
    45  of thoroughbred races from a track located in Suffolk  county.  The  fee
    46  for  such  licenses shall be five hundred dollars per simulcast facility
    47  and for account wagering licensees that do not operate either  a  simul-
    48  cast facility that is open to the public within the state of New York or
    49  a  licensed racetrack within the state, twenty thousand dollars per year
    50  payable by the licensee to the commission for deposit into  the  general
    51  fund.  Except  as  provided  in  this  section, the commission shall not
    52  approve any application to conduct simulcasting into individual or group
    53  residences, homes or other areas for the purposes of  or  in  connection
    54  with  pari-mutuel wagering. The commission may approve simulcasting into

        A. 6009                            96
 
     1  residences, homes or other areas to be conducted jointly by one or  more
     2  regional  off-track  betting corporations and one or more of the follow-
     3  ing: a franchised corporation,  thoroughbred  racing  corporation  or  a
     4  harness racing corporation or association; provided (i) the simulcasting
     5  consists  only of those races on which pari-mutuel betting is authorized
     6  by this chapter at one or more simulcast  facilities  for  each  of  the
     7  contracting  off-track  betting  corporations which shall include wagers
     8  made in accordance with  section  one  thousand  fifteen,  one  thousand
     9  sixteen  and  one  thousand  seventeen of this article; provided further
    10  that the contract provisions or other simulcast  arrangements  for  such
    11  simulcast  facility  shall  be no less favorable than those in effect on
    12  January first, two thousand  five;  (ii)  that  each  off-track  betting
    13  corporation  having  within  its  geographic boundaries such residences,
    14  homes or other areas technically  capable  of  receiving  the  simulcast
    15  signal  shall be a contracting party; (iii) the distribution of revenues
    16  shall be subject to contractual agreement of  the  parties  except  that
    17  statutory  payments  to  non-contracting  parties,  if  any,  may not be
    18  reduced; provided, however, that nothing herein to  the  contrary  shall
    19  prevent a track from televising its races on an irregular basis primari-
    20  ly for promotional or marketing purposes as found by the commission. For
    21  purposes of this paragraph, the provisions of section one thousand thir-
    22  teen  of  this  article  shall  not  apply. Any agreement authorizing an
    23  in-home simulcasting experiment commencing prior to May fifteenth, nine-
    24  teen hundred ninety-five, may, and all its terms, be extended until June
    25  thirtieth, two thousand [fifteen] sixteen; provided, however,  that  any
    26  party  to  such  agreement  may  elect  to terminate such agreement upon
    27  conveying written notice to all other parties of such agreement at least
    28  forty-five days prior to the effective  date  of  the  termination,  via
    29  registered  mail.  Any party to an agreement receiving such notice of an
    30  intent to terminate, may request the commission to mediate  between  the
    31  parties  new terms and conditions in a replacement agreement between the
    32  parties as will permit continuation of an in-home experiment until  June
    33  thirtieth,  two  thousand  [fifteen] sixteen; and (iv) no in-home simul-
    34  casting in the thoroughbred special betting district shall occur without
    35  the approval of the regional thoroughbred track.
    36    § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
    37  1007 of the racing, pari-mutuel wagering and breeding law, as amended by
    38  section  2  of  part AA of chapter 59 of the laws of 2014, is amended to
    39  read as follows:
    40    (iii) Of the sums retained by a receiving track located in Westchester
    41  county on races received from a franchised corporation, for  the  period
    42  commencing January first, two thousand eight and continuing through June
    43  thirtieth,  two  thousand [fifteen] sixteen, the amount used exclusively
    44  for purses to be awarded at races  conducted  by  such  receiving  track
    45  shall  be computed as follows: of the sums so retained, two and one-half
    46  percent of the total pools. Such amount shall be increased or  decreased
    47  in  the  amount  of fifty percent of the difference in total commissions
    48  determined by comparing the total commissions available after July twen-
    49  ty-first, nineteen hundred ninety-five to  the  total  commissions  that
    50  would  have  been  available  to  such track prior to July twenty-first,
    51  nineteen hundred ninety-five.
    52    § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
    53  racing,  pari-mutuel  wagering and breeding law, as amended by section 3
    54  of part AA of chapter 59 of the laws of 2014,  is  amended  to  read  as
    55  follows:

        A. 6009                            97
 
     1    The  provisions of this section shall govern the simulcasting of races
     2  conducted at thoroughbred tracks located in another state or country  on
     3  any day during which a franchised corporation is conducting a race meet-
     4  ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
     5  thirtieth,  two  thousand [fifteen] sixteen and on any day regardless of
     6  whether or not a franchised corporation is conducting a race meeting  in
     7  Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
     8  two thousand [fifteen] sixteen.  On any day on which a franchised corpo-
     9  ration  has  not  scheduled  a  racing program but a thoroughbred racing
    10  corporation located within the state is conducting  racing,  every  off-
    11  track  betting corporation branch office and every simulcasting facility
    12  licensed in accordance  with  section  one  thousand  seven  (that  have
    13  entered  into  a  written  agreement with such facility's representative
    14  horsemen's organization, as approved by the  commission),  one  thousand
    15  eight,  or  one  thousand  nine  of  this article shall be authorized to
    16  accept wagers and display the live simulcast  signal  from  thoroughbred
    17  tracks  located  in  another  state  or  foreign  country subject to the
    18  following provisions:
    19    § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
    20  and breeding law, as amended by section 4 of part AA of  chapter  59  of
    21  the laws of 2014, is amended to read as follows:
    22    1.  The  provisions  of  this section shall govern the simulcasting of
    23  races conducted at harness tracks located in another  state  or  country
    24  during  the period July first, nineteen hundred ninety-four through June
    25  thirtieth, two thousand [fifteen] sixteen. This section shall  supersede
    26  all inconsistent provisions of this chapter.
    27    §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
    28  racing, pari-mutuel wagering and breeding law, as amended by  section  5
    29  of  part  AA  of  chapter  59 of the laws of 2014, is amended to read as
    30  follows:
    31    The provisions of this section shall govern the simulcasting of  races
    32  conducted  at thoroughbred tracks located in another state or country on
    33  any day during which a franchised corporation is not conducting  a  race
    34  meeting in Saratoga county at Saratoga thoroughbred racetrack until June
    35  thirtieth,  two  thousand  [fifteen]  sixteen.   Every off-track betting
    36  corporation branch office and every simulcasting  facility  licensed  in
    37  accordance  with  section  one  thousand  seven that have entered into a
    38  written agreement with such facility's representative horsemen's  organ-
    39  ization  as  approved by the commission, one thousand eight or one thou-
    40  sand nine of this article shall  be  authorized  to  accept  wagers  and
    41  display  the  live  full-card  simulcast  signal  of thoroughbred tracks
    42  (which may include quarter horse or mixed  meetings  provided  that  all
    43  such wagering on such races shall be construed to be thoroughbred races)
    44  located  in  another  state or foreign country, subject to the following
    45  provisions; provided,  however,  no  such  written  agreement  shall  be
    46  required of a franchised corporation licensed in accordance with section
    47  one thousand seven of this article:
    48    §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
    49  wagering and breeding law, as amended by section 6 of part AA of chapter
    50  59 of the laws of 2014, is amended to read as follows:
    51    Notwithstanding any other provision of this chapter,  for  the  period
    52  July  twenty-fifth, two thousand one through September eighth, two thou-
    53  sand [fourteen] fifteen, when a franchised corporation is  conducting  a
    54  race  meeting  within the state at Saratoga Race Course, every off-track
    55  betting  corporation  branch  office  and  every  simulcasting  facility
    56  licensed in accordance with section one thousand seven (that has entered

        A. 6009                            98
 
     1  into  a written agreement with such facility's representative horsemen's
     2  organization as approved by the commission), one thousand eight  or  one
     3  thousand  nine  of this article shall be authorized to accept wagers and
     4  display  the  live  simulcast signal from thoroughbred tracks located in
     5  another state, provided that such facility shall accept wagers on  races
     6  run  at  all  in-state  thoroughbred  tracks which are conducting racing
     7  programs subject to the following provisions; provided, however, no such
     8  written agreement shall be required of a franchised corporation licensed
     9  in accordance with section one thousand seven of this article.
    10    § 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
    11  racing,  pari-mutuel  wagering and breeding law  and other laws relating
    12  to simulcasting, as amended by section 7 of part AA of chapter 59 of the
    13  laws of 2014, is amended to read as follows:
    14    § 32. This act shall take effect immediately and the  pari-mutuel  tax
    15  reductions  in  section  six  of  this  act  shall  expire and be deemed
    16  repealed on  July  1,  [2015]  2016;  provided,  however,  that  nothing
    17  contained  herein  shall be deemed to affect the application, qualifica-
    18  tion, expiration, or repeal of any  provision  of  law  amended  by  any
    19  section  of  this act, and such provisions shall be applied or qualified
    20  or shall expire or be deemed repealed in the same manner,  to  the  same
    21  extent  and on the same date as the case may be as otherwise provided by
    22  law; provided further, however, that sections twenty-three  and  twenty-
    23  five of this act shall remain in full force and effect only until May 1,
    24  1997 and at such time shall be deemed to be repealed.
    25    §  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
    26  racing, pari-mutuel wagering and breeding law and other laws relating to
    27  simulcasting and the imposition of certain taxes, as amended by  section
    28  8  of  part  AA of chapter 59 of the laws of 2014, is amended to read as
    29  follows:
    30    § 54. This act  shall  take  effect  immediately;  provided,  however,
    31  sections  three  through twelve of this act shall take effect on January
    32  1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
    33  ing law, as added by section thirty-eight of this act, shall expire  and
    34  be  deemed repealed on July 1, [2015] 2016; and section eighteen of this
    35  act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
    36  two  of this act shall take effect as of the same date as chapter 772 of
    37  the laws of 1989 took effect.
    38    § 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
    39  pari-mutuel  wagering  and breeding law, as amended by section 9 of part
    40  AA of chapter 59 of the laws of 2014, is amended to read as follows:
    41    (a) The  franchised  corporation  authorized  under  this  chapter  to
    42  conduct pari-mutuel betting at a race meeting or races run thereat shall
    43  distribute  all sums deposited in any pari-mutuel pool to the holders of
    44  winning tickets therein, provided such tickets be presented for  payment
    45  before  April  first  of  the year following the year of their purchase,
    46  less an amount which shall be established and  retained  by  such  fran-
    47  chised  corporation  of  between  twelve  to seventeen per centum of the
    48  total deposits in pools resulting from on-track regular bets, and  four-
    49  teen  to  twenty-one per centum of the total deposits in pools resulting
    50  from on-track multiple bets and fifteen to twenty-five per centum of the
    51  total deposits in pools resulting from on-track exotic bets and  fifteen
    52  to  thirty-six  per centum of the total deposits in pools resulting from
    53  on-track super exotic bets, plus the breaks. The retention  rate  to  be
    54  established  is  subject to the prior approval of the gaming commission.
    55  Such rate may not be changed more than once per calendar quarter  to  be
    56  effective  on  the  first day of the calendar quarter. "Exotic bets" and

        A. 6009                            99
 
     1  "multiple bets" shall have  the  meanings  set  forth  in  section  five
     2  hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
     3  meaning set forth in section three hundred  one  of  this  chapter.  For
     4  purposes  of  this  section, a "pick six bet" shall mean a single bet or
     5  wager on the outcomes of six races. The breaks are hereby defined as the
     6  odd cents over any multiple of five for payoffs greater than one  dollar
     7  five  cents  but  less  than  five dollars, over any multiple of ten for
     8  payoffs greater than five dollars but  less  than  twenty-five  dollars,
     9  over  any  multiple  of twenty-five for payoffs greater than twenty-five
    10  dollars but less than two hundred fifty dollars, or over any multiple of
    11  fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
    12  retained  there  shall  be  paid  by  such franchised corporation to the
    13  commissioner of taxation and finance, as a reasonable tax by  the  state
    14  for  the privilege of conducting pari-mutuel betting on the races run at
    15  the race meetings held by such  franchised  corporation,  the  following
    16  percentages  of  the  total  pool for regular and multiple bets five per
    17  centum of regular bets and four per centum of multiple bets plus  twenty
    18  per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
    19  centum plus twenty per centum of the breaks, and for super  exotic  bets
    20  seven  and  one-half per centum plus fifty per centum of the breaks. For
    21  the period June first, nineteen hundred  ninety-five  through  September
    22  ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
    23  three  per  centum and such tax on multiple wagers shall be two and one-
    24  half per centum, plus twenty per centum of the breaks.  For  the  period
    25  September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
    26  first, two thousand one, such tax on all wagers shall be  two  and  six-
    27  tenths  per  centum  and  for  the  period April first, two thousand one
    28  through December thirty-first, two thousand [fifteen] sixteen, such  tax
    29  on all wagers shall be one and six-tenths per centum, plus, in each such
    30  period,  twenty  per centum of the breaks. Payment to the New York state
    31  thoroughbred breeding and development fund  by  such  franchised  corpo-
    32  ration shall be one-half of one per centum of total daily on-track pari-
    33  mutuel  pools resulting from regular, multiple and exotic bets and three
    34  per centum of super exotic bets provided, however, that for  the  period
    35  September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
    36  first, two thousand one, such payment shall be  six-tenths  of  one  per
    37  centum  of  regular,  multiple and exotic pools and for the period April
    38  first, two thousand one  through  December  thirty-first,  two  thousand
    39  [fifteen]  sixteen, such payment shall be seven-tenths of one per centum
    40  of such pools.
    41    § 10. This act shall take effect immediately.
 
    42                                   PART OO

    43    Section 1. Section 1602 of the tax law is  amended  by  adding  a  new
    44  subdivision 6 to read as follows:
    45    6.  "Video  lottery  gaming"  means any lottery game played on a video
    46  lottery terminal that issues electronic tickets, allows multiple players
    47  to participate in the same game and determines  winners  to  a  material
    48  degree  upon  the element of chance, notwithstanding that the skill of a
    49  player may influence such player's chance of  winning  a  game.    Video
    50  lottery gaming may include elements of player interaction after a player
    51  receives an initial chance.
    52    §  2.  Subdivision  28 of section 225.00 of the penal law, as added by
    53  chapter 174 of the laws of 2013, is amended to read as follows:

        A. 6009                            100

     1    28. "Video lottery gaming" [means any lottery game played on  a  video
     2  lottery  terminal,  which  consists  of multiple players competing for a
     3  chance to win a random drawn prize pursuant to section  sixteen  hundred
     4  seventeen-a  and  paragraph  five  of  subdivision  a of section sixteen
     5  hundred twelve of the tax law, as amended and implemented] has the mean-
     6  ing  set  forth in subdivision six of section sixteen hundred two of the
     7  tax law.
     8    § 3. This act shall take effect on the thirtieth day  after  it  shall
     9  have become a law.
 
    10                                   PART PP
 
    11    Section  1. Paragraph d of subdivision 1 of section 207 of the racing,
    12  pari-mutuel wagering and breeding law, as added by chapter  457  of  the
    13  laws of 2012, is amended to read as follows:
    14    d.  The  board,  which  shall  become  effective upon appointment of a
    15  majority of public members, shall terminate [three] four years from  its
    16  date  of  creation.  The  board  shall propose, no less than one hundred
    17  eighty days prior to its termination, recommendations  to  the  governor
    18  and the state legislature representing a statutory plan for the prospec-
    19  tive  not-for-profit  governing structure of The New York Racing Associ-
    20  ation, Inc.
    21    § 2. This act shall take effect June 18, 2015.
 
    22                                   PART QQ
 
    23    Section 1. Chapter 6 of title 11 of the  administrative  code  of  the
    24  city  of  New  York is amended by adding a new subchapter 3-A to read as
    25  follows:
    26                               SUBCHAPTER 3-A
    27                            CORPORATE TAX OF 2015
    28  Section 11-651 Applicability.
    29          11-652  Definitions.
    30          11-653  Imposition of tax; exemptions.
    31          11-654  Computation of tax.
    32          11-654.1 Net operating loss.
    33          11-654.2 Receipts apportionment.
    34          11-654.3 Combined reports.
    35          11-655  Reports.
    36          11-656  Payment and lien of tax.
    37          11-657  Declaration of estimated tax.
    38          11-658  Payments on account of estimated tax.
    39          11-659  Collection of taxes.
    40          11-660  Limitations of time.
    41    § 11-651 Applicability.  1. Notwithstanding anything to  the  contrary
    42  in  this  chapter,  this  subchapter shall apply to corporations for tax
    43  years commencing on or after January first, two thousand fifteen, except
    44  that it shall not apply to any corporation that (a) has an  election  in
    45  effect under subsection (a) of section thirteen hundred sixty-two of the
    46  internal  revenue  code  of  1986,  as  amended,  or  (b) is a qualified
    47  subchapter S  subsidiary  within  the  meaning  of  paragraph  three  of
    48  subsection  (b)  of  section  thirteen hundred sixty-one of the internal
    49  revenue code of 1986, as amended, in  any  tax  year  after  such  date.
    50  Subchapters  two  and  three  of  this chapter shall not apply to corpo-
    51  rations to which this subchapter applies for tax years commencing on  or
    52  after January first, two thousand fifteen, except to the extent provided

        A. 6009                            101
 
     1  in  this subchapter and to the extent that the effect of the application
     2  of subchapters two and three to tax years commencing  prior  to  January
     3  first,  two  thousand fifteen carries over to tax years commencing on or
     4  after January first, two thousand fifteen.
     5    2.  Each  reference  in  this code to subchapters two or three of this
     6  chapter, or any of the provisions thereof, shall be deemed  a  reference
     7  also  to  this subchapter, and any of the applicable provisions thereof,
     8  where appropriate and with all necessary modifications.
     9    § 11-652 Definitions.  1. (a) The term "corporation" includes  (1)  an
    10  association  within  the meaning of paragraph three of subsection (a) of
    11  section seventy-seven hundred one of the internal revenue code  (includ-
    12  ing,  when  applicable,  a limited liability company), (2) a joint-stock
    13  company or association, (3) a publicly traded partnership treated  as  a
    14  corporation  for  purposes  of  the  internal  revenue  code pursuant to
    15  section  seventy-seven  hundred  four  thereof  and  (4)  any   business
    16  conducted  by  a  trustee  or  trustees wherein interest or ownership is
    17  evidenced by certificate or other written instrument;
    18    (b) (1) Notwithstanding paragraph (a) of this subdivision, an unincor-
    19  porated organization that (i) is described in subparagraph one or  three
    20  of  such  paragraph  (a)  of  this  subdivision, (ii) was subject to the
    21  provisions of chapter five of this title for its taxable year  beginning
    22  in  nineteen hundred ninety-five, and (iii) made a one-time election not
    23  to be treated as a corporation and, instead, to continue to  be  subject
    24  to  the  provisions  of chapter five of this title for its taxable years
    25  beginning in nineteen hundred ninety-six and thereafter, shall  continue
    26  to  be  subject  to the provisions of chapter five of this title for its
    27  taxable years beginning in nineteen hundred ninety-six.
    28    (2) An election under this paragraph shall continue to  be  in  effect
    29  until revoked by the unincorporated organization. An election under this
    30  paragraph shall be revoked by the filing of a return under this subchap-
    31  ter  for the first taxable year with respect to which such revocation is
    32  to be effective. Such return shall be filed on or before  the  due  date
    33  (determined  with  regard  to  extensions) for filing such return. In no
    34  event shall such election or revocation be for a part of a taxable year.
    35    (c) Notwithstanding paragraph (a) of this subdivision,  a  corporation
    36  shall  not  include  an  entity  classified as a partnership for federal
    37  income tax purposes.
    38    2. The term "subsidiary" means a corporation of which over  fifty  per
    39  centum of the number of shares of stock entitling the holders thereof to
    40  vote for the election of directors or trustees is owned by the taxpayer.
    41    2-a.  The  term  "taxpayer" means any corporation subject to tax under
    42  this subchapter.
    43    3. Intentionally omitted.
    44    3-a. The term "stock" means an  interest  in  a  corporation  that  is
    45  treated as equity for federal income tax purposes.
    46    4.  (a) The term "investment capital" means investments in stocks that
    47  are held by the taxpayer for more than six consecutive  months  but  are
    48  not  and  have  never been used by the taxpayer in the regular course of
    49  business, or, if the taxpayer makes the election provided for in subpar-
    50  agraph one of paragraph (a) of subdivision five of section  11-654.2  of
    51  this subchapter, are not qualified financial instruments as described in
    52  subdivision  five  of  section  11-654.2  of this subchapter. Stock in a
    53  corporation that is conducting a unitary  business  with  the  taxpayer,
    54  stock  in  a  corporation that is included in a combined report with the
    55  taxpayer pursuant to the commonly owned group  election  in  subdivision
    56  three  of  section  11-654.3 of this subchapter, and stock issued by the

        A. 6009                            102
 
     1  taxpayer shall not constitute investment capital.  For purposes of  this
     2  subdivision,  if  the taxpayer owns or controls, directly or indirectly,
     3  less than twenty percent of the voting power of the stock  of  a  corpo-
     4  ration,  that  corporation  will be presumed to be conducting a business
     5  that is not unitary with the business of the taxpayer.
     6    (b) There shall be deducted from investment  capital  any  liabilities
     7  which  are directly or indirectly attributable to investment capital. If
     8  the amount of those liabilities exceeds the amount of  investment  capi-
     9  tal, the amount of investment capital will be zero.
    10    (c)  Investment  capital  shall  not  include any such investments the
    11  income from which is excluded from entire net  income  pursuant  to  the
    12  provisions  of paragraph (c-1) of subdivision eight of this section, and
    13  that investment capital shall be computed without regard to  liabilities
    14  directly or indirectly attributable to such investments, but only if air
    15  carriers  organized  in  the  United States and operating in the foreign
    16  country or countries in which the taxpayer has its major base  of  oper-
    17  ations  and  in which it is organized, resident or headquartered (if not
    18  in the same country as its major base of operations) are not subject  to
    19  any  tax based on or measured by capital imposed by such foreign country
    20  or countries or any political subdivision  thereof,  or  if  taxed,  are
    21  provided  an exemption, equivalent to that provided for herein, from any
    22  tax based on or measured by capital imposed by such foreign  country  or
    23  countries  and  from  any  such tax imposed by any political subdivision
    24  thereof.
    25    (d) If a taxpayer acquires stock during the second half of its taxable
    26  year and owns that stock on the last day of the taxable year, it will be
    27  presumed, solely for the purposes  of  determining  whether  that  stock
    28  should  be  classified  as investment capital after it is acquired, that
    29  the taxpayer held that stock for more than six consecutive months during
    30  the taxable year. This presumption shall apply only if the  taxpayer  in
    31  fact  owns  the  stock  at the time it files its original report for the
    32  taxable year in which it acquires the stock. However,  if  the  taxpayer
    33  does not in fact hold that stock as investment capital for more than six
    34  consecutive  months,  the taxpayer must increase its business capital in
    35  the immediately succeeding  taxable  year  by  the  amount  included  in
    36  investment  capital  for that stock, net of any liabilities attributable
    37  to that stock computed as provided in paragraph (b) of this  subdivision
    38  and  must  increase  its  business  income in the immediately succeeding
    39  taxable year by the amount of income and net gains (but  not  less  than
    40  zero)  from  that stock included in investment income, less any interest
    41  deductions  directly  or  indirectly  attributable  to  that  stock,  as
    42  provided in subdivision five of this section.
    43    (e)  When  income  or  gain  from  a debt obligation or other security
    44  cannot be allocated to the city using the business allocation percentage
    45  as a result of the United States  constitutional  principles,  the  debt
    46  obligation or other security will be included in investment capital.
    47    5.  (a)  The  term "investment income" means income, including capital
    48  gains in excess of capital  losses,  from  investment  capital,  to  the
    49  extent  included in computing entire net income, less, in the discretion
    50  of the commissioner of finance, any  interest  deductions  allowable  in
    51  computing  entire  net income which are directly or indirectly attribut-
    52  able to investment capital or investment income, provided, however, that
    53  in no case shall investment income exceed  entire  net  income.  If  the
    54  amount  of  interest  deductions subtracted under the preceding sentence
    55  exceeds investment income, the excess of  such  amount  over  investment
    56  income must be added back to entire net income.

        A. 6009                            103
 
     1    (b)  In lieu of subtracting from investment income the amount of those
     2  interest deductions, the taxpayer may elect to reduce its total  invest-
     3  ment  income  by forty percent. If the taxpayer makes this election, the
     4  taxpayer must also make the elections provided for in paragraphs (b) and
     5  (c)  of  subdivision  five-a  of this section. A taxpayer which does not
     6  make this election because it has no  investment  capital  will  not  be
     7  precluded from making those other elections.
     8    (c)  Investment  income  shall not include any amount treated as divi-
     9  dends pursuant to section seventy-eight of the internal revenue code.
    10    5-a. (a) The term "other exempt income" means the sum  of  exempt  CFC
    11  income and exempt unitary corporation dividends.
    12    (b)  "Exempt  CFC  income" means the income required to be included in
    13  the taxpayer's federal  gross  income  pursuant  to  subsection  (a)  of
    14  section  nine  hundred  fifty-one of the internal revenue code, received
    15  from a corporation that  is  conducting  a  unitary  business  with  the
    16  taxpayer  but  is  not  included in a combined report with the taxpayer,
    17  less, in the discretion of the commissioner  of  finance,  any  interest
    18  deductions  directly  or indirectly attributable to that income. In lieu
    19  of subtracting from its exempt CFC income the amount of  those  interest
    20  deductions, the taxpayer may elect to reduce its total exempt CFC income
    21  by forty percent. If the taxpayer makes this election, the taxpayer must
    22  also  make  the  elections  provided for in paragraph (b) of subdivision
    23  five of this section and paragraph (c) of this subdivision.  A  taxpayer
    24  which  does  not  make this election because it has no exempt CFC income
    25  will not be precluded from making those other elections.
    26    (c) "Exempt unitary corporate dividends" means those dividends from  a
    27  corporation  that is conducting a unitary business with the taxpayer but
    28  is not included in a combined report with the  taxpayer,  less,  in  the
    29  discretion  of  the  commissioner  of  finance,  any interest deductions
    30  directly or indirectly attributable to such income. Other than  dividend
    31  income  received from corporations that are taxable under chapter eleven
    32  of this title (except for vendors of  utility  services  that  are  also
    33  taxable  under this subchapter) or would be taxable under chapter eleven
    34  of this title (except for vendors of  utility  services  that  are  also
    35  taxable under this subchapter) if subject to tax, in lieu of subtracting
    36  from  this  dividend  income those interest deductions, the taxpayer may
    37  elect to reduce the total  amount  of  this  dividend  income  by  forty
    38  percent.  If  the  taxpayer  makes this election, the taxpayer must also
    39  make the elections provided for in paragraph (b) of subdivision five  of
    40  this section and paragraph (b) of this subdivision. A taxpayer that does
    41  not  make  this  election because it has not received any exempt unitary
    42  corporation dividends or is precluded  from  making  this  election  for
    43  dividends  received  from  corporations  that  are taxable under chapter
    44  eleven of this title (except for vendors of utility  services  that  are
    45  also  taxable  under  this subchapter) or would be taxable under chapter
    46  eleven of this title if subject to tax (except for  vendors  of  utility
    47  services  that  are  also  taxable  under  this  subchapter) will not be
    48  precluded from making those other elections.
    49    (d) If the taxpayer attributes interest  deductions  to  other  exempt
    50  income  and  the amount deducted exceeds other exempt income, the excess
    51  of the interest deductions over other exempt income must be  added  back
    52  to entire net income. In no case shall other exempt income exceed entire
    53  net income.
    54    (e)  Other exempt income shall not include any amount treated as divi-
    55  dends pursuant to section seventy-eight of the internal revenue code.

        A. 6009                            104
 
     1    6. (a) The term  "business  capital"  means  all  assets,  other  than
     2  investment  capital  and  stock issued by the taxpayer, less liabilities
     3  not deducted from investment capital; provided, however, business  capi-
     4  tal shall include only those assets the income, loss or expense of which
     5  are  properly  reflected  (or  would have been properly reflected if not
     6  fully depreciated or expensed or depreciated or expensed  to  a  nominal
     7  amount) in the computation of entire net income for the taxable year.
     8    (b)  Provided, further, "business capital" shall not include assets to
     9  the extent employed for  the  purpose  of  generating  income  which  is
    10  excluded  from entire net income pursuant to the provisions of paragraph
    11  (c-1) of subdivision eight of this section and shall be computed without
    12  regard to  liabilities  directly  or  indirectly  attributable  to  such
    13  assets,  but  only  if  air  carriers organized in the United States and
    14  operating in the foreign country or countries in which the taxpayer  has
    15  its  major  base of operations and in which it is organized, resident or
    16  headquartered (if not in the same country as its  major  base  of  oper-
    17  ations)  are  not  subject  to  any  tax based on or measured by capital
    18  imposed by such foreign country or countries or any  political  subdivi-
    19  sion thereof, or if taxed, are provided an exemption, equivalent to that
    20  provided  for  herein,  from  any  tax  based  on or measured by capital
    21  imposed by such foreign country or  countries  and  from  any  such  tax
    22  imposed by any political subdivision thereof.
    23    7. The term "business income" means entire net income minus investment
    24  income  and other exempt income. In no event shall the sum of investment
    25  income and other exempt income exceed entire net income. If the taxpayer
    26  makes the election provided for in subparagraph one of paragraph (a)  of
    27  subdivision five of section 11-654.2 of this subchapter, then all income
    28  from qualified financial instruments shall constitute business income.
    29    8. The term "entire net income" means total net income from all sourc-
    30  es, which shall be presumably the same as the entire taxable income (but
    31  not  alternative  minimum  taxable  income),  which  except as hereafter
    32  provided in this subdivision.
    33    1. the taxpayer is required to report to the  United  States  treasury
    34  department, or
    35    2.  the  taxpayer,  in  the  case of a corporation that is exempt from
    36  federal income tax (other than the tax  on  unrelated  business  taxable
    37  income imposed under section five hundred eleven of the internal revenue
    38  code) but which is subject to tax under this subchapter, would have been
    39  required to report to the United States treasury department but for such
    40  exemption, or
    41    3. in the case of an alien corporation that under any provision of the
    42  internal  revenue  code  is  not  treated as a "domestic corporation" as
    43  defined in section seven thousand seven hundred one  of  such  code,  is
    44  effectively connected with the conduct of a trade or business within the
    45  United  States  as  determined under section eight hundred eighty-two of
    46  the internal revenue code.
    47    (a) Entire net income shall not include:
    48    (1) Intentionally omitted;
    49    (2) Intentionally omitted;
    50    (2-a) any amounts treated as dividends pursuant  to  section  seventy-
    51  eight  of  the  internal revenue code and not otherwise deductible under
    52  subparagraphs one and two of this paragraph;
    53    (3) bona fide gifts;
    54    (4) income and deductions with respect to amounts received from school
    55  districts and from corporations and associations, organized and operated
    56  exclusively for religious, charitable or educational purposes,  no  part

        A. 6009                            105
 
     1  of the net earnings of which inures to the benefit of any private share-
     2  holder or individual, for the operation of school buses;
     3    (5)  any  refund  or  credit  of  a tax imposed under this chapter, or
     4  imposed by article nine, nine-A, twenty-three, or former  article  thir-
     5  ty-two  of  the  tax  law,  for  which tax no exclusion or deduction was
     6  allowed in determining the  taxpayer's  entire  net  income  under  this
     7  subchapter,  subchapter two, or subchapter three of this chapter for any
     8  prior year;
     9    (6) Intentionally omitted;
    10    (7) that portion of wages and salaries paid or incurred for the  taxa-
    11  ble year for which a deduction is not allowed pursuant to the provisions
    12  of section two hundred eighty-C of the internal revenue code;
    13    (8)  except with respect to property which is a qualified mass commut-
    14  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
    15  subsection (f) of section one hundred sixty-eight of the internal reven-
    16  ue  code (relating to qualified mass commuting vehicles) and property of
    17  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    18  ferry or navigation business, or two or more of such  businesses,  which
    19  is  placed in service before taxable years beginning in nineteen hundred
    20  eighty-nine, any amount which is  included  in  the  taxpayer's  federal
    21  taxable  income  solely  as a result of an election made pursuant to the
    22  provisions of such paragraph eight as it was in  effect  for  agreements
    23  entered into prior to January first, nineteen hundred eighty-four;
    24    (9)  except with respect to property which is a qualified mass commut-
    25  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
    26  subsection (f) of section one hundred sixty-eight of the internal reven-
    27  ue  code (relating to qualified mass commuting vehicles) and property of
    28  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    29  ferry or navigation business, or two or more of such  businesses,  which
    30  is  placed in service before taxable years beginning in nineteen hundred
    31  eighty-nine, any amount which the  taxpayer  could  have  excluded  from
    32  federal taxable income had it not made the election provided for in such
    33  paragraph eight as it was in effect for agreements entered into prior to
    34  January first, nineteen hundred eighty-four;
    35    (10)  the amount deductible pursuant to paragraph (j) of this subdivi-
    36  sion;
    37    (11) upon the disposition of property to which paragraph (j)  of  this
    38  subdivision  applies,  the amount, if any, by which the aggregate of the
    39  amounts described in subparagraph eleven of paragraph (b) of this subdi-
    40  vision attributable to  such  property  exceeds  the  aggregate  of  the
    41  amounts  described  in paragraph (j) of this subdivision attributable to
    42  such property;
    43    (12) the amount deductible pursuant to paragraph (k) of this  subdivi-
    44  sion;
    45    (13)  the amount deductible pursuant to paragraph (o) of this subdivi-
    46  sion; and
    47    (14) the amount computed pursuant to paragraph (q), (r) or (s) of this
    48  subdivision, but only the amount determined  pursuant  to  one  of  such
    49  paragraphs.
    50    (a-1)  Notwithstanding  any other provision of this subchapter, in the
    51  case of a taxpayer that is a partner in a partnership subject to the tax
    52  imposed by chapter eleven of this title as  a  utility,  as  defined  in
    53  subdivision  six  of  section 11-1101 of such chapter, entire net income
    54  shall not include the taxpayer's distributive  or  pro  rata  share  for
    55  federal  income  tax  purposes  of  any  item  of  income, gain, loss or
    56  deduction of such partnership, or any item  of  income,  gain,  loss  or

        A. 6009                            106
 
     1  deduction of such partnership that the taxpayer is required to take into
     2  account separately for federal income tax purposes.
     3    (b)  Entire  net  income  shall  be  determined without the exclusion,
     4  deduction or credit of:
     5    (1) in the case of an alien corporation that under  any  provision  of
     6  the  internal revenue code is not treated as a "domestic corporation" as
     7  defined in section seven thousand seven hundred one of  such  code,  (i)
     8  any  part of any income from dividends or interest on any kind of stock,
     9  securities or indebtedness, but only if such income is treated as effec-
    10  tively connected with the conduct of a trade or business in  the  United
    11  States  pursuant  to  section  eight  hundred sixty-four of the internal
    12  revenue code, (ii) any income exempt from federal taxable  income  under
    13  any  treaty  obligation  of  the  United States, but only if such income
    14  would be treated  as  effectively  connected  in  the  absence  of  such
    15  exemption  provided  that  such  treaty obligation does not preclude the
    16  taxation of such income by a state, or (iii) any income which  would  be
    17  treated  as  effectively connected if such income were not excluded from
    18  gross income pursuant to subsection (a) of section one hundred three  or
    19  the internal revenue code;
    20    (2)  any  part of any income from dividends or interest on any kind of
    21  stock, securities, or indebtedness;
    22    (3) taxes on or measured by profits or income paid or accrued  to  the
    23  United  States,  any  of  its possessions, territories or commonwealths,
    24  including taxes in lieu of any of the foregoing taxes otherwise general-
    25  ly imposed by any possession, territory or commonwealth  of  the  United
    26  States,  or  taxes  paid  or  accrued  to  the state under article nine,
    27  nine-A, thirteen-A or thirty-two of the tax law as in effect on December
    28  thirty-first, two thousand fourteen;
    29    (3-a) taxes on or measured by profits  or  income,  or  which  include
    30  profits  or  income  as a measure, paid or accrued to any other state of
    31  the United States, or any  political  subdivision  thereof,  or  to  the
    32  District  of  Columbia,  including taxes expressly in lieu of any of the
    33  foregoing taxes otherwise generally imposed by any other  state  of  the
    34  United  States, or any political subdivision thereof, or the District of
    35  Columbia;
    36    (4) taxes imposed under this chapter;
    37    (4-a) Intentionally omitted;
    38    (4-b) the amount allowed as an exclusion or a deduction imposed by the
    39  tax law in determining  the  entire  taxable  income  for  a  relocation
    40  described  in  subdivision thirteen of section 11-654 of this subchapter
    41  which the taxpayer is required to report to the United  States  treasury
    42  department but only such portion of such exclusion or deduction which is
    43  not  in  excess of the amount of the credit allowed pursuant to subdivi-
    44  sion thirteen of section 11-654 of this subchapter;
    45    (4-c) the amount allowed as an exclusion or a deduction imposed by the
    46  tax law for a relocation described in subdivision  fourteen  of  section
    47  11-654 of this subchapter in determining the entire taxable income which
    48  the taxpayer is required to report to the United States treasury depart-
    49  ment  but  only such portion of such exclusion or deduction which is not
    50  in excess of the amount of the credit allowed  pursuant  to  subdivision
    51  fourteen of section 11-654 of this subchapter;
    52    (4-d) Intentionally omitted;
    53    (4-e) Intentionally omitted;
    54    (5) Intentionally omitted;

        A. 6009                            107
 
     1    (6)  any  amount  allowed  as  a  deduction for the taxable year under
     2  section one hundred seventy-two of the internal revenue code,  including
     3  carryovers of deductions from prior taxable years;
     4    (7)  any  amount  by  reason of the granting, issuing or assuming of a
     5  restricted stock option, as defined in  the  internal  revenue  code  of
     6  nineteen  hundred  fifty-four, or by reason of the transfer of the share
     7  of stock upon the exercise of the option, unless such share is  disposed
     8  of  by  the  grantee of the option within two years from the date of the
     9  granting of the option or within six months after the transfer  of  such
    10  share to the grantee;
    11    (8) Intentionally omitted;
    12    (9)  except with respect to property which is a qualified mass commut-
    13  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
    14  subsection (f) of section one hundred sixty-eight of the internal reven-
    15  ue  code (relating to qualified mass commuting vehicles) and property of
    16  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    17  ferry or navigation business, or two or more of such  businesses,  which
    18  is  placed in service before taxable years beginning in nineteen hundred
    19  eighty-nine, any amount which the taxpayer claimed  as  a  deduction  in
    20  computing  its  federal taxable income solely as a result of an election
    21  made pursuant to the provisions of such paragraph eight  as  it  was  in
    22  effect  for  agreements  entered  into  prior to January first, nineteen
    23  hundred eighty-four;
    24    (10) except with respect to property which is a qualified mass commut-
    25  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
    26  subsection (f) of section one hundred sixty-eight of the internal reven-
    27  ue  code (relating to qualified mass commuting vehicles) and property of
    28  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    29  ferry or navigation business, or two or more of such  businesses,  which
    30  is  placed in service before taxable years beginning in nineteen hundred
    31  eighty-nine, any amount which the taxpayer would have been  required  to
    32  include in the computation of its federal taxable income had it not made
    33  the  election  permitted  pursuant  to such paragraph eight as it was in
    34  effect for agreements entered into  prior  to  January  first,  nineteen
    35  hundred eighty-four;
    36    (11) in the case of property placed in service in taxable years begin-
    37  ning  before  nineteen  hundred ninety-four, for taxable years beginning
    38  after December thirty-first, nineteen hundred  eighty-one,  except  with
    39  respect  to  property  subject  to the provisions of section two hundred
    40  eighty-F  of  the  internal  revenue  code,  property  subject  to   the
    41  provisions  of  section  one hundred sixty-eight of the internal revenue
    42  code which is placed in service in this state in taxable years beginning
    43  after December thirty-first, nineteen hundred eighty-four  and  property
    44  of  a taxpayer principally engaged in the conduct of an aviation, steam-
    45  boat, ferry or navigation business, or two or more of  such  businesses,
    46  which  is  placed  in service before taxable years beginning in nineteen
    47  hundred eighty-nine, the amount  allowable  as  a  deduction  determined
    48  under section one hundred sixty-eight of the internal revenue code;
    49    (12)  upon  the disposition of property to which paragraph (j) of this
    50  subdivision applies, the amount, if any, by which the aggregate  of  the
    51  amounts  described  in  such paragraph (j) attributable to such property
    52  exceeds the aggregate of the amounts described in subparagraph eleven of
    53  this paragraph attributable to such property;
    54    (13) Intentionally omitted;
    55    (14) Intentionally omitted;
    56    (15) Intentionally omitted;

        A. 6009                            108

     1    (16) in the case of qualified property described in paragraph  two  of
     2  subsection (k) of section one hundred sixty-eight of the internal reven-
     3  ue  code,  other  than  qualified  resurgence zone property described in
     4  paragraph (m) of this subdivision, and other  than  qualified  New  York
     5  Liberty  Zone  property  described in paragraph two of subsection (b) of
     6  section fourteen hundred-L of the internal revenue code (without  regard
     7  to  clause (i) of subparagraph (C) of such paragraph), the amount allow-
     8  able as a deduction under section one hundred sixty-seven of the  inter-
     9  nal revenue code;
    10    (17)  in  the  case  of  a  taxpayer that is not an eligible farmer as
    11  defined in subsection (n) of section six hundred six of the tax law, the
    12  amount allowable as a deduction under sections one hundred seventy-nine,
    13  one hundred sixty-seven and one  hundred  sixty-eight  of  the  internal
    14  revenue  code  with  respect  to  a  sport utility vehicle that is not a
    15  passenger automobile as defined in paragraph five of subsection  (d)  of
    16  section two hundred eighty-F of the internal revenue code;
    17    (18)  the  amount  of  any  deduction  allowed pursuant to section one
    18  hundred ninety-nine of the internal revenue code;
    19    (19) the amount of any federal deduction for taxes imposed under arti-
    20  cle twenty-three of the tax law;
    21    (c) Intentionally omitted;
    22    (c-1)(1) Notwithstanding any other provision of  this  subchapter,  in
    23  the  case of a taxpayer which is a foreign air carrier holding a foreign
    24  air carrier permit issued by the United States department of transporta-
    25  tion pursuant to section four hundred two of the federal aviation act of
    26  nineteen hundred fifty-eight, as amended, and which is  qualified  under
    27  subparagraph two of this paragraph, entire net income shall not include,
    28  and  shall  be  computed  without  the deduction of, amounts directly or
    29  indirectly attributable to, (i) any income  derived  from  the  interna-
    30  tional  operation  of  aircraft  as  described  in  and  subject  to the
    31  provisions of section eight hundred eighty-three of the internal revenue
    32  code, (ii) income without the United States which is  derived  from  the
    33  operation  of aircraft, and (iii) income without the United States which
    34  is of a type described in  subdivision  (a)  of  section  eight  hundred
    35  eighty-one  of  the internal revenue code except that it is derived from
    36  sources without the United States.   Entire  net  income  shall  include
    37  income  described in clauses (i), (ii) and (iii) of this subparagraph in
    38  the case of taxpayers not described in the previous sentence;
    39    (2) A taxpayer is qualified under this subparagraph  if  air  carriers
    40  organized  in  the United States and operating in the foreign country or
    41  countries in which the taxpayer has its major base of operations and  in
    42  which  it  is  organized,  resident or headquartered (if not in the same
    43  country as its major base of operations) are not subject to  any  income
    44  tax  or  other tax based on or measured by income or receipts imposed by
    45  such foreign country or countries or any political subdivision  thereof,
    46  or  if  so  subject to such tax, are provided an exemption from such tax
    47  equivalent to that provided for herein;
    48    (d) The commissioner of finance may, whenever necessary in order prop-
    49  erly to reflect the entire net income of  any  taxpayer,  determine  the
    50  year  or  period  in  which  any  item  of  income or deduction shall be
    51  included, without regard to the method of  accounting  employed  by  the
    52  taxpayer;
    53    (e)  The  entire net income of any bridge commission created by act of
    54  congress to construct a bridge across an  international  boundary  means
    55  its gross income less the expense of maintaining and operating its prop-
    56  erties,  the  annual  interest upon its bonds and other obligations, and

        A. 6009                            109
 
     1  the annual charge for the retirement of such  bonds  or  obligations  at
     2  maturity;
     3    (f) Intentionally omitted;
     4    (g)  At the election of the taxpayer, a deduction shall be allowed for
     5  expenditures  paid  or  incurred  during  the  taxable  year   for   the
     6  construction,  reconstruction,  erection  or  improvement  of industrial
     7  waste treatment facilities and air pollution control facilities.
     8    (1)(i) The term "industrial waste  treatment  facilities"  shall  mean
     9  facilities  for the treatment, neutralization or stabilization of indus-
    10  trial waste (as the  term  "industrial  waste"  is  defined  in  section
    11  17-0105  of the environmental conservation law) from a point immediately
    12  preceding the point of such treatment, neutralization  or  stabilization
    13  to  the point of disposal, including the necessary pumping and transmit-
    14  ting facilities, but excluding such facilities installed for the primary
    15  purpose of salvaging materials which are  usable  in  the  manufacturing
    16  process or are marketable.
    17    (ii) The term "air pollution control facilities" shall mean facilities
    18  which  remove,  reduce,  or render less noxious air contaminants emitted
    19  from an air contamination source (as the  terms  "air  contaminant"  and
    20  "air  contamination  source" are defined in section 19-0107 of the envi-
    21  ronmental conservation law) from a point immediately preceding the point
    22  of such removal, reduction or rendering to the  point  of  discharge  of
    23  air,  meeting  emission  standards  as  established by the air pollution
    24  control board, but excluding such facilities installed for  the  primary
    25  purpose  of  salvaging  materials  which are usable in the manufacturing
    26  process or are marketable and excluding those facilities which rely  for
    27  their  efficacy  on  dilution, dispersion or assimilation of air contam-
    28  inants in the ambient air after emission.
    29    (2) However, such deduction shall be allowed only (i) with respect  to
    30  tangible  property which is depreciable, pursuant to section one hundred
    31  sixty-seven of the internal revenue code, having a situs in the city and
    32  used in the taxpayer's  trade  or  business,  the  construction,  recon-
    33  struction,  erection  or improvement of which, in the case of industrial
    34  waste treatment facilities, is initiated  on  or  after  January  first,
    35  nineteen  hundred  sixty-six, and only for expenditures paid or incurred
    36  prior to January first, nineteen hundred seventy-two, or which,  in  the
    37  case of air pollution control facilities, is initiated on or after Janu-
    38  ary first, nineteen hundred sixty-six, and
    39    (ii)  on  condition  that  such  facilities have been certified by the
    40  state commissioner of environmental conservation or  the  state  commis-
    41  sioner's  designated  representative, in the same manner as provided for
    42  in section 17-0707 or 19-0309 of the environmental conservation law,  as
    43  applicable, as complying with applicable provisions of the environmental
    44  conservation  law,  the  state sanitary code and regulations, permits or
    45  orders issued pursuant thereto, and
    46    (iii) on condition that entire net income for the taxable year and all
    47  succeeding taxable years be computed without  any  deductions  for  such
    48  expenditures  or  for  depreciation  of the same property other than the
    49  deductions allowed by this paragraph except to the extent that the basis
    50  of the property may be attributable to factors other than such  expendi-
    51  tures,  or  in  case a deduction is allowable pursuant to this paragraph
    52  for only a part of such expenditures, on condition  that  any  deduction
    53  allowed  for  federal  income  tax purposes for such expenditures or for
    54  depreciation of the same property be proportionately reduced in  comput-
    55  ing  entire  net  income for the taxable year and all succeeding taxable
    56  years, and

        A. 6009                            110
 
     1    (iv) where the election provided for in paragraph (d)  of  subdivision
     2  three  of section 11-604 of this chapter or the election provided for in
     3  subdivision (k) of section 11-641 of this chapter has not been exercised
     4  in respect to the same property.
     5    (3)(i)  If  expenditures  in  respect to an industrial waste treatment
     6  facility or an air pollution control  facility  have  been  deducted  as
     7  provided herein and if within ten years from the end of the taxable year
     8  in which such deduction was allowed such property or any part thereof is
     9  used  for the primary purpose of salvaging materials which are usable in
    10  the manufacturing process or are marketable, the taxpayer  shall  report
    11  such change of use in its report for the first taxable year during which
    12  it occurs, and the commissioner of finance may recompute the tax for the
    13  year  or years for which such deduction was allowed and any carryback or
    14  carryover year, and may assess any additional tax  resulting  from  such
    15  recomputation  within  the  time  fixed  by paragraph (h) of subdivision
    16  three of section 11-674 of this chapter.
    17    (ii) If a deduction is allowed as  herein  provided  for  expenditures
    18  paid  or  incurred  during  any taxable year on the basis of a temporary
    19  certificate of compliance issued pursuant to the environmental conserva-
    20  tion law and if the taxpayer fails to obtain a permanent certificate  of
    21  compliance  upon completion of the facilities with respect to which such
    22  temporary certificate was issued, the taxpayer shall report such failure
    23  in its report for the taxable year  during  which  such  facilities  are
    24  completed, and the commissioner of finance may recompute the tax for the
    25  year  or years for which such deduction was allowed and any carryback or
    26  carryover year, and may assess any additional tax  resulting  from  such
    27  recomputation  within  the  time  fixed  by paragraph (h) of subdivision
    28  three of section 11-674 of this chapter.
    29    (4) In any taxable year when property is sold  or  otherwise  disposed
    30  of,  with respect to which a deduction has been allowed pursuant to this
    31  paragraph, such deduction shall be  disregarded  in  computing  gain  or
    32  loss,  and  the  gain  or  loss on the sale or other disposition of such
    33  property shall be the gain or loss  entering  into  the  computation  of
    34  entire  taxable  income  which the taxpayer is required to report to the
    35  United States treasury for such taxable year;
    36    (h) With respect to gain derived from the sale or other disposition of
    37  any property acquired prior to January first,  nineteen  hundred  sixty-
    38  six;  which had a federal adjusted basis on such date (or on the date of
    39  its sale or other disposition prior to January first,  nineteen  hundred
    40  sixty-six)  lower  than its fair market value on January first, nineteen
    41  hundred sixty-six or the date of its sale  or  other  disposition  prior
    42  thereto,  except  property  described  in  subsections  one  and four of
    43  section twelve hundred twenty-one of the internal  revenue  code,  there
    44  shall be deducted from entire net income, the difference between (1) the
    45  amount  of  the taxpayer's federal taxable income, and (2) the amount of
    46  the taxpayer's federal  taxable  income  (if  smaller  than  the  amount
    47  described  in  subparagraph  one  of  this paragraph) computed as if the
    48  federal adjusted basis of each such  property  (on  the  sale  or  other
    49  disposition  of which gain was derived) on the date of the sale or other
    50  disposition had been equal to either (i) its fair market value on  Janu-
    51  ary  first,  nineteen hundred sixty-six or the date of its sale or other
    52  disposition prior to January first, nineteen hundred sixty-six, plus  or
    53  minus  all  adjustments  to basis made with respect to such property for
    54  federal income tax purposes for periods  on  and  after  January  first,
    55  nineteen  hundred sixty-six or (ii) the amount realized from its sale or
    56  disposition, whichever is  lower;  provided,  however,  that  the  total

        A. 6009                            111
 
     1  modification  provided  by this paragraph shall not exceed the amount of
     2  the taxpayer's net gain from the sale or other disposition of  all  such
     3  property.
     4    (i)  If  the period covered by a report under this subchapter is other
     5  than the period covered by the report  of  the  United  States  treasury
     6  department,  entire  net  income  shall be determined by multiplying the
     7  federal taxable income (as adjusted pursuant to the provisions  of  this
     8  subchapter)  by  the  number  of  calendar months or major parts thereof
     9  covered by the report under this subchapter and dividing by  the  number
    10  of  calendar months or major parts thereof covered by the report to such
    11  department. If it shall appear that such method  of  determining  entire
    12  net  income  does  not properly reflect the taxpayer's income during the
    13  period covered by the report under this subchapter, the commissioner  of
    14  finance  shall  be authorized in his or her discretion to determine such
    15  entire net income solely on the basis of the  taxpayer's  income  during
    16  the period covered by its report under this subchapter.
    17    (j)  In the case of property placed in service in taxable years begin-
    18  ning before nineteen hundred ninety-four, for  taxable  years  beginning
    19  after  December  thirty-first,  nineteen hundred eighty-one, except with
    20  respect to property subject to the provisions  of  section  two  hundred
    21  eighty-F  of  the  internal  revenue  code  and  property subject to the
    22  provisions of section one hundred sixty-eight of  the  internal  revenue
    23  code which is placed in service in this state in taxable years beginning
    24  after  December thirty-first, nineteen hundred eighty-four, and provided
    25  a deduction has not been excluded from entire  net  income  pursuant  to
    26  subparagraph nine of paragraph (b) of this subdivision, a taxpayer shall
    27  be  allowed  with respect to property which is subject to the provisions
    28  of section one hundred sixty-eight of  the  internal  revenue  code  the
    29  depreciation  deduction  allowable under section one hundred sixty-seven
    30  of the internal revenue code as such section would have applied to prop-
    31  erty placed  in  service  on  December  thirty-first,  nineteen  hundred
    32  eighty. This paragraph shall not apply to property of a taxpayer princi-
    33  pally engaged in the conduct of an aviation, steamboat, ferry or naviga-
    34  tion  business,  or  two  or more of such businesses, which is placed in
    35  service before taxable years beginning in nineteen hundred eighty-nine.
    36    (k) In the case of qualified property described in  paragraph  two  of
    37  subsection (k) of section one hundred sixty-eight of the internal reven-
    38  ue  code,  other  than  qualified  resurgence zone property described in
    39  paragraph (m) of this subdivision, and other  than  qualified  New  York
    40  Liberty  Zone  property  described in paragraph two of subsection (b) of
    41  section fourteen hundred L of the internal revenue code (without  regard
    42  to  clause  (i) of subparagraph (C) of such paragraph), the depreciation
    43  deduction allowable  under  section  one  hundred  sixty-seven  as  such
    44  section  would have applied to such property had it been acquired by the
    45  taxpayer on September tenth, two thousand one, provided,  however,  that
    46  for  taxable  years  beginning  on  or after January first, two thousand
    47  four, in the case of a passenger motor vehicle or a sport utility  vehi-
    48  cle  subject to the provisions of paragraph (o) of this subdivision, the
    49  limitation under clause (i) of subparagraph  (A)  of  paragraph  one  of
    50  subdivision  (a) of section two hundred eighty-F of the internal revenue
    51  code applicable to the amount allowed as a deduction  under  this  para-
    52  graph  shall  be  determined  as  of the date such vehicle was placed in
    53  service and not as of September tenth, two thousand one.
    54    (l) Upon the disposition of property to which paragraph  (k)  of  this
    55  subdivision applies, the amount of any gain or loss includible in entire
    56  net  income  shall  be adjusted to reflect the inclusions and exclusions

        A. 6009                            112
 
     1  from entire net income pursuant to subparagraph twelve of paragraph  (a)
     2  and  subparagraph sixteen of paragraph (b) of this subdivision attribut-
     3  able to such property.
     4    (m)  For purposes of this paragraph and paragraph (l) of this subdivi-
     5  sion, qualified resurgence zone property shall mean  qualified  property
     6  described  in  paragraph  two  of  subsection (k) of section one hundred
     7  sixty-eight of the internal revenue code substantially all of the use of
     8  which is in the resurgence zone, as defined below, and is in the  active
     9  conduct  of  a  trade  or business by the taxpayer in such zone, and the
    10  original use of which in the resurgence zone commences with the taxpayer
    11  after September tenth, two thousand one.  The resurgence zone shall mean
    12  the area of New York county bounded on the south by a line running  from
    13  the  intersection  of  the  Hudson  River  with  the Holland Tunnel, and
    14  running thence east to Canal Street, then running along  the  centerline
    15  of  Canal  Street  to  the  intersection of the Bowery and Canal Street,
    16  running thence in a southeasterly direction diagonally across  Manhattan
    17  Bridge  Plaza,  to the Manhattan Bridge, and thence along the centerline
    18  of the Manhattan Bridge to the point where the centerline of the Manhat-
    19  tan Bridge would intersect with the easterly bank of the East River, and
    20  bounded on the north by a line running  from  the  intersection  of  the
    21  Hudson River with the Holland Tunnel and running thence north along West
    22  Avenue  to  the  intersection of Clarkson Street then running east along
    23  the centerline of Clarkson Street  to  the  intersection  of  Washington
    24  Avenue,  then running south along the centerline of Washington Avenue to
    25  the intersection of West Houston Street, then east along the  centerline
    26  of  West  Houston  Street, then at the intersection of the Avenue of the
    27  Americas continuing east along the centerline of East Houston Street  to
    28  the easterly bank of the East River.
    29    (n)  Related  members expense add back. (1) For purposes of this para-
    30  graph: (i) "Related member" means a related person as defined in subpar-
    31  agraph (c) of paragraph three of subsection (b) of section four  hundred
    32  sixty-five  of  the  internal  revenue code, except that "fifty percent"
    33  shall be substituted for "ten percent".
    34    (ii) "Effective rate of tax" means, as to any city, the maximum statu-
    35  tory rate of tax imposed by  the  city  on  or  measured  by  a  related
    36  member's  net income multiplied by the apportionment percentage, if any,
    37  applicable to the related member under the laws  of  said  jurisdiction.
    38  For  purposes  of  this  definition, the effective rate of tax as to any
    39  city is zero where the related member's net income tax liability in said
    40  city is reported on a combined or consolidated return including both the
    41  taxpayer and the related member where the reported transactions  between
    42  the  taxpayer and the related member are eliminated or offset. Also, for
    43  purposes of this definition, when computing the effective  rate  of  tax
    44  for  a  city  in  which  a  related member's net income is eliminated or
    45  offset by a credit or similar adjustment  that  is  dependent  upon  the
    46  related  member  either  maintaining  or managing intangible property or
    47  collecting interest income in that city, the maximum statutory  rate  of
    48  tax  imposed  by  said  city shall be decreased to reflect the statutory
    49  rate of tax that applies to the related member as effectively reduced by
    50  such credit or similar adjustment.
    51    (iii) Royalty payments are payments directly connected to the acquisi-
    52  tion, use, maintenance or management, ownership, sale, exchange, or  any
    53  other  disposition  of  licenses,  trademarks,  copyrights, trade names,
    54  trade dress, service marks, mask works, trade secrets, patents  and  any
    55  other  similar  types  of intangible assets as determined by the commis-
    56  sioner of finance, and include amounts allowable as interest  deductions

        A. 6009                            113
 
     1  under  section  one  hundred sixty-three of the internal revenue code to
     2  the extent such amounts are directly or indirectly for, related to or in
     3  connection with the acquisition, use, maintenance or management,  owner-
     4  ship, sale, exchange or disposition of such intangible assets.
     5    (iv)  A valid business purpose is one or more business purposes, other
     6  than the avoidance or reduction of taxation, which alone or in  combina-
     7  tion  constitute  the  primary  motivation for some business activity or
     8  transaction, which activity or transaction changes in a meaningful  way,
     9  apart  from  tax  effects,  the  economic  position of the taxpayer. The
    10  economic position of the taxpayer includes an  increase  in  the  market
    11  share  of  the  taxpayer, or the entry by the taxpayer into new business
    12  markets.
    13    (2) Royalty expense add backs. (i) Except where a taxpayer is included
    14  in a combined report pursuant to section  11-654.3  of  this  subchapter
    15  with  the applicable related member, for the purpose of computing entire
    16  net income or other applicable taxable basis, a taxpayer must  add  back
    17  royalty  payments  directly  or indirectly paid, accrued, or incurred in
    18  connection with one or more direct or indirect transactions with one  or
    19  more related members during the taxable year to the extent deductible in
    20  calculating federal taxable income.
    21    (ii)  Exceptions.  (A) The adjustment required in this paragraph shall
    22  not apply to the portion of the royalty payment that the taxpayer estab-
    23  lishes, by clear and convincing evidence of the type  and  in  the  form
    24  specified  by  the  commissioner  of finance, meets all of the following
    25  requirements: (I) the related member was subject to tax in this city  or
    26  another city within the United States or a foreign nation or some combi-
    27  nation  thereof  on  a  tax base that included the royalty payment paid,
    28  accrued or incurred by the taxpayer; (II) the related member during  the
    29  same  taxable year directly or indirectly paid, accrued or incurred such
    30  portion to a person that is not a related member; and (III)  the  trans-
    31  action  giving  rise to the royalty payment between the taxpayer and the
    32  related member was undertaken for a valid business purpose.
    33    (B) The adjustment required in this paragraph shall not apply  if  the
    34  taxpayer  establishes,  by clear and convincing evidence of the type and
    35  in the form specified by the commissioner  of  finance,  that:  (I)  the
    36  related  member  was  subject to tax on or measured by its net income in
    37  this city or another city within the United States, or some  combination
    38  thereof;  (II)  the  tax  base for said tax included the royalty payment
    39  paid, accrued or incurred by  the  taxpayer;  and  (III)  the  aggregate
    40  effective  rate  of tax applied to the related member in those jurisdic-
    41  tions is no less than eighty percent of the statutory rate of  tax  that
    42  applied  to  the  taxpayer  under section 11-604 of this chapter for the
    43  taxable year.
    44    (C) The adjustment required in this paragraph shall not apply  if  the
    45  taxpayer  establishes,  by clear and convincing evidence of the type and
    46  in the form specified by the commissioner  of  finance,  that:  (I)  the
    47  royalty payment was paid, accrued or incurred to a related member organ-
    48  ized  under the laws of a country other than the United States; (II) the
    49  related member's income from the transaction was subject to a comprehen-
    50  sive income tax treaty between such country and the United States; (III)
    51  the related member was subject to tax in a foreign nation on a tax  base
    52  that  included  the  royalty  payment  paid,  accrued or incurred by the
    53  taxpayer; (IV) the related member's  income  from  the  transaction  was
    54  taxed in such country at an effective rate of tax at least equal to that
    55  imposed  by  this city; and (V) the royalty payment was paid, accrued or

        A. 6009                            114
 
     1  incurred pursuant to a transaction that was undertaken for a valid busi-
     2  ness purpose and using terms that reflect an arm's length relationship.
     3    (D)  The  adjustment required in this paragraph shall not apply if the
     4  taxpayer and the commissioner of finance agree in writing to the  appli-
     5  cation  or  use  of alternative adjustments or computations. The commis-
     6  sioner of finance may, in his or her discretion, agree to  the  applica-
     7  tion  or  use  of alternative adjustments or computations when he or she
     8  concludes that in the absence  of  such  agreement  the  income  of  the
     9  taxpayer would not be properly reflected.
    10    (o)  In  the  case  of  a  taxpayer  that is not an eligible farmer as
    11  defined in subsection (n) of section six hundred six of the tax law, the
    12  deductions  allowable  under  sections  one  hundred  seventy-nine,  one
    13  hundred  sixty-seven and one hundred sixty-eight of the internal revenue
    14  code with respect to a sport utility vehicle that  is  not  a  passenger
    15  automobile as defined in paragraph five of subsection (d) of section two
    16  hundred  eighty-F  of  the  internal revenue code, determined as if such
    17  sport utility vehicle were a passenger automobile  as  defined  in  such
    18  paragraph  five.  For  purposes of subparagraph sixteen of paragraph (b)
    19  and paragraph (k) of this subdivision, the  terms  qualified  resurgence
    20  zone  property and qualified New York Liberty Zone property described in
    21  paragraph two of subsection b  of  section  fourteen  hundred-L  of  the
    22  internal  revenue  code shall not include any sport utility vehicle that
    23  is not a passenger automobile as defined in paragraph five of subsection
    24  (d) of section two hundred eighty-F of the internal revenue code.
    25    (p) Upon the disposition of property to which paragraph  (o)  of  this
    26  subdivision applies, the amount of any gain or loss includible in entire
    27  net  income  shall  be adjusted to reflect the inclusions and exclusions
    28  from entire net income pursuant to subparagraph  thirteen  of  paragraph
    29  (a)  and  subparagraph  seventeen  of  paragraph (b) of this subdivision
    30  attributable to such property.
    31    (q) Subtraction modification for community banks  and  small  thrifts.
    32  (1) A taxpayer that is a qualified community bank as defined in subpara-
    33  graph  two of this paragraph or a small thrift institution as defined in
    34  subparagraph two-a of this paragraph shall be  allowed  a  deduction  in
    35  computing  entire net income equal to the amount computed under subpara-
    36  graph three of this paragraph.
    37    (2) To be a qualified community bank,  a  taxpayer  must  satisfy  the
    38  following conditions:
    39    (i)  It  is  a bank or trust company organized under or subject to the
    40  provisions of article three of the banking law or a comparable provision
    41  of the laws of another state, or a national banking association.
    42    (ii) The average value during the taxable year of the  assets  of  the
    43  taxpayer,  or,  if  the  taxpayer  is included in a combined report, the
    44  assets of the combined reporting group of  the  taxpayer  under  section
    45  11-654.3 of this subchapter, must not exceed eight billion dollars.
    46    (2-a)  To  be  a small thrift institution, a taxpayer must satisfy the
    47  following conditions:
    48    (i) It is a savings bank, a savings and  loan  association,  or  other
    49  savings  institution  chartered  and supervised as such under federal or
    50  state law.
    51    (ii) The average value during the taxable year of the  assets  of  the
    52  taxpayer,  or,  if  the  taxpayer  is included in a combined report, the
    53  assets of the combined reporting group of  the  taxpayer  under  section
    54  11-654.3 of this subchapter, must not exceed eight billion dollars.
    55    (3)(i) The subtraction modification shall be computed as follows:

        A. 6009                            115
 
     1    (A)  Multiply the taxpayer's net interest income from loans during the
     2  taxable year by a fraction, the numerator of which is the gross interest
     3  income during the taxable year from qualifying loans and the denominator
     4  of which is the gross interest income during the taxable year  from  all
     5  loans.
     6    (B)  Multiply the amount determined in subclause (A) of this clause by
     7  fifty percent. This product is the amount of the deduction allowed under
     8  this paragraph.
     9    (ii)(A) Net interest income  from  loans  shall  mean  gross  interest
    10  income from loans less gross interest expense from loans. Gross interest
    11  expense  from  loans is determined by multiplying gross interest expense
    12  by a fraction, the numerator of which is  the  average  total  value  of
    13  loans owned by the thrift institution or community bank during the taxa-
    14  ble year and the denominator of which is the average total assets of the
    15  thrift institution or community bank during the taxable year.
    16    (B)  Measurement  of assets.   For purposes of this clause:  (I) Total
    17  assets are those assets that are properly reflected on a balance  sheet,
    18  computed  in  the same manner as is required by the banking regulator of
    19  the taxpayers included in the combined return.
    20    (II) Assets will only be included if the income or expenses  of  which
    21  are  properly  reflected  (or  would have been properly reflected if not
    22  fully depreciated or expensed, or depreciated or expensed to  a  nominal
    23  amount)  in  the computation of the taxpayer's entire net income for the
    24  taxable year. Assets will not include deferred tax assets and intangible
    25  assets identified as "goodwill".
    26    (III) Tangible real and personal property, such  as  buildings,  land,
    27  machinery, and equipment, shall be valued at cost. Leased assets will be
    28  valued at the annual lease payment multiplied by eight. Intangible prop-
    29  erty,  such  as  loans  and  investments,  shall be valued at book value
    30  exclusive of reserves.
    31    (IV) Average assets are computed using  the  assets  measured  on  the
    32  first  day  of  the taxable year, and on the last day of each subsequent
    33  quarter of the taxable year or month or day during the taxable year.
    34    (iii) A qualifying loan is a loan that meets the conditions  specified
    35  in subclause (A) of this clause and subclause (B) of this clause.
    36    (A)  The  loan  is originated by the qualified community bank or small
    37  thrift institution or purchased by the qualified community bank or small
    38  thrift institution immediately after its origination in connection  with
    39  a commitment to purchase made by the bank or thrift institution prior to
    40  the loan's origination.
    41    (B)  The loan is a small business loan or a residential mortgage loan,
    42  the principal amount of which loan is five million dollars or less,  and
    43  either  the borrower is located in this city as determined under section
    44  11-654.2 of this subchapter and the loan is not secured by real  proper-
    45  ty, or the loan is secured by real property located in the city.
    46    (C)  A  loan that meets the definition of a qualifying loan in a prior
    47  taxable year (including years prior to the effective date of this  para-
    48  graph) remains a qualifying loan in taxable years during and after which
    49  such  loan is acquired by another corporation in the taxpayer's combined
    50  reporting group under section 11-654.3 of this subchapter.
    51    (r) A small thrift institution  or  a  qualified  community  bank,  as
    52  defined  in paragraph (q) of this subdivision, that maintained a captive
    53  REIT on  April  first,  two  thousand  fourteen  shall  utilize  a  REIT
    54  subtraction  equal  to  one  hundred sixty percent of the dividends paid
    55  deductions allowed to that captive REIT for the taxable year for federal
    56  income tax purposes and shall not be allowed to utilize the  subtraction

        A. 6009                            116
 
     1  modification  for  community banks and small thrifts under paragraph (q)
     2  of this subdivision or the subtraction modification for qualified  resi-
     3  dential  loan  portfolios under paragraph (s) of this subdivision in any
     4  tax  year  in  which such thrift institution or community bank maintains
     5  that captive REIT.
     6    (s) Subtraction modification for qualified  residential  loan  portfo-
     7  lios.  (1)(i)  A taxpayer that is either a thrift institution as defined
     8  in subparagraph three of this paragraph or a qualified community bank as
     9  defined in subparagraph two of paragraph (q)  of  this  subdivision  and
    10  maintains  a qualified residential loan portfolio as defined in subpara-
    11  graph two of this paragraph shall be allowed as a deduction in computing
    12  entire net income the amount, if any, by which (A) thirty-two percent of
    13  its entire net  income  determined  without  regard  to  this  paragraph
    14  exceeds  (B)  the  amounts deducted by the taxpayer pursuant to sections
    15  166 and 585 of the internal revenue code less any  amounts  included  in
    16  federal taxable income as a result of a recovery of a loan.
    17    (ii)(A) If the taxpayer is in a combined report under section 11-654.3
    18  of this subchapter, this deduction will be computed on a combined basis.
    19  In  that instance, the entire net income of the combined reporting group
    20  for purposes of this paragraph shall be multiplied by  a  fraction,  the
    21  numerator  of which is the average total assets of all the thrift insti-
    22  tutions and qualified community banks included in  the  combined  report
    23  and  the  denominator  of  which  is the average total assets of all the
    24  corporations included in the combined report.
    25    (B) Measurement of assets.  (I) Total assets are those assets that are
    26  properly reflected on a balance sheet, computed in the same manner as is
    27  required by the banking regulator  of  the  taxpayers  included  in  the
    28  combined return.
    29    (II)  Assets  will only be included if the income or expenses of which
    30  are properly reflected (or would have been  properly  reflected  if  not
    31  fully  depreciated  or expensed, or depreciated or expensed to a nominal
    32  amount) in the computation of the combined group's entire net income for
    33  the taxable year. Assets will not include deferred tax assets and intan-
    34  gible assets identified as "goodwill".
    35    (III) Tangible real and personal property, such  as  buildings,  land,
    36  machinery,  and equipment shall be valued at cost. Leased assets will be
    37  valued at the annual lease payment multiplied by eight. Intangible prop-
    38  erty, such as loans and investments,  shall  be  valued  at  book  value
    39  exclusive of reserves.
    40    (IV)  Intercorporate  stockholdings  and  bills,  notes  and  accounts
    41  receivable, and other intercorporate  indebtedness  between  the  corpo-
    42  rations included in the combined report shall be eliminated.
    43    (V) Average assets are computed using the assets measured on the first
    44  day  of the taxable year, and on the last day of each subsequent quarter
    45  of the taxable year or month or day during the taxable year.
    46    (2) Qualified residential loan portfolio. (i) A taxpayer  maintains  a
    47  qualified  residential  loan  portfolio if at least sixty percent of the
    48  amount of the total assets at the close  of  the  taxable  year  of  the
    49  thrift  institution  or  qualified community bank consists of the assets
    50  described in subclauses (A) through (L) of this clause, with the  appli-
    51  cation of the rule in the last undesignated subclause of this clause. If
    52  the  taxpayer  is  a  member  of  a combined group, the determination of
    53  whether there is a qualified residential loan portfolio will be made  by
    54  aggregating the assets of the thrift institutions and qualified communi-
    55  ty  banks  that  are  members of the combined group.   Assets: (A) cash,
    56  which includes cash and cash equivalents including  cash  items  in  the

        A. 6009                            117

     1  process  of  collection,  deposits  with  other  financial institutions,
     2  including corporate credit unions, balances with federal  reserve  banks
     3  and  federal  home  loan  banks,  federal  funds sold, and cash and cash
     4  equivalents  on  hand.  Cash  shall  not include any balances serving as
     5  collateral for securities lending transactions; (B) obligations  of  the
     6  United  States or of a state or political subdivision thereof, and stock
     7  or obligations of a corporation which is an instrumentality or a govern-
     8  ment sponsored enterprise of the United States or of a  state  or  poli-
     9  tical  subdivision thereof; (C) loans secured by a deposit or share of a
    10  member; (D) loans secured by an interest in real property which is  (or,
    11  from the proceeds of the loan, will become) residential real property or
    12  real  property  used  primarily  for church purposes, loans made for the
    13  improvement of residential real property or real property used primarily
    14  for church purposes, provided that for purposes of this subclause, resi-
    15  dential real property shall include single  or  multi-family  dwellings,
    16  facilities  in residential developments dedicated to public use or prop-
    17  erty used on a nonprofit basis for residents, and mobile homes not  used
    18  on  a  transient basis; (E) property acquired through the liquidation of
    19  defaulted loans described in subclause (D) of this clause; (F) any regu-
    20  lar or residual interest in a REMIC, as such term is defined in  section
    21  860D  of the internal revenue code, but only in the proportion which the
    22  assets of such REMIC consist of property described in any of the preced-
    23  ing subclauses of this clause, except that  if  ninety-five  percent  or
    24  more  of the assets of such REMIC are assets described in subclauses (A)
    25  through (E) of this clause, the entire interest in the REMIC shall qual-
    26  ify; (G) any mortgage-backed security which represents  ownership  of  a
    27  fractional  undivided  interest  in a trust, the assets of which consist
    28  primarily of mortgage loans,  provided  that  the  real  property  which
    29  serves  as  security for the loans is (or from the proceeds of the loan,
    30  will become) the type of property described in  subclause  (D)  of  this
    31  clause  and  any  collateralized  mortgage  obligation, the security for
    32  which consists primarily of mortgage loans that maintain as security the
    33  type of property described in subclause (D) of this clause; (H)  certif-
    34  icates of deposit in, or obligations of, a corporation organized under a
    35  state  law  which specifically authorizes such corporation to insure the
    36  deposits or share accounts of member associations; (I) loans secured  by
    37  an  interest  in educational, health, or welfare institutions or facili-
    38  ties, including structures designed or used  primarily  for  residential
    39  purposes  for  students, residents, and persons undercare, employees, or
    40  members of the staff of such institutions or facilities; (J) loans  made
    41  for  the payment of expenses of college or university education or voca-
    42  tional training; (K) property used by the taxpayer in support  of  busi-
    43  ness  which  consists principally of acquiring the savings of the public
    44  and investing in loans; and (L) loans for  which  the  taxpayer  is  the
    45  creditor  and  which  are wholly secured by loans described in subclause
    46  (D) of this clause.
    47    The value of accrued interest receivable and any loss-sharing  commit-
    48  ment  or other loan guaranty by a governmental agency will be considered
    49  part of the basis in the loans to which the  accrued  interest  or  loss
    50  protection applies.
    51    (ii)  At  the  election  of  the taxpayer, the percentage specified in
    52  clause (i) of this subparagraph shall be applied on  the  basis  of  the
    53  average assets outstanding during the taxable year, in lieu of the close
    54  of  the taxable year. The taxpayer can elect to compute an average using
    55  the assets measured on the first day of the taxable year and on the last

        A. 6009                            118
 
     1  day of each subsequent quarter, or month or day during the taxable year.
     2  This election may be made annually.
     3    (iii)  For  purposes  of  subclause (D) of clause (i) of this subpara-
     4  graph, if a multifamily structure securing a loan is used  in  part  for
     5  nonresidential  use  purposes,  the  entire loan is deemed a residential
     6  real property loan if the planned residential use exceeds eighty percent
     7  of the property's planned use (measured, at the taxpayer's election,  by
     8  using  square  footage or gross rental revenue, and determined as of the
     9  time the loan is made).
    10    (iv) For purposes of subclause (D) of clause (i) of this subparagraph,
    11  loans made to finance the acquisition or development of  land  shall  be
    12  deemed  to  be loans secured by an interest in residential real property
    13  if there is a reasonable assurance that the property will  become  resi-
    14  dential  real  property  within a period of three years from the date of
    15  acquisition of such land; but this sentence  shall  not  apply  for  any
    16  taxable  year  unless,  within such three year period, such land becomes
    17  residential real property.  For  purposes  of  determining  whether  any
    18  interest  in a REMIC qualifies under subclause (F) of clause (i) of this
    19  subparagraph, any regular interest in another REMIC held by  such  REMIC
    20  shall  be  treated  as  a  loan described in a preceding subclause under
    21  principles similar to the principle of such subclause (F),  except  that
    22  if  such REMICs are part of a tiered structure, they shall be treated as
    23  one REMIC for purposes of such subclause (F).
    24    (3) For purposes of  this  paragraph,  a  "thrift  institution"  is  a
    25  savings  bank, a savings and loan association, or other savings institu-
    26  tion chartered and supervised as such under federal or state law.
    27    9. (a) The term "calendar year" means  a  period  of  twelve  calendar
    28  months (or any shorter period beginning on the date the taxpayer becomes
    29  subject  to  the  tax  imposed by this subchapter) ending on the thirty-
    30  first day of December, provided the taxpayer  keeps  its  books  on  the
    31  basis  of  such  period  or on the basis of any period ending on any day
    32  other than the last day of a calendar month, or  provided  the  taxpayer
    33  does  not  keep  books,  and  includes, in case the taxpayer changes the
    34  period on the basis of which it keeps its books from a fiscal year to  a
    35  calendar  year, the period from the close of its last old fiscal year up
    36  to and including the following December thirty-first.
    37    (b) The term "fiscal year" means a period of  twelve  calendar  months
    38  (or  any  shorter  period  beginning  on  the  date the taxpayer becomes
    39  subject to the tax imposed by this subchapter) ending on the last day of
    40  any month other than December, provided the taxpayer keeps its books  on
    41  the basis of such period, and includes, in case the taxpayer changes the
    42  period  on the basis of which it keeps its books from a calendar year to
    43  a fiscal year or from one fiscal year to another fiscal year, the period
    44  from the close of its last old calendar or fiscal year up  to  the  date
    45  designated as the close of its new fiscal year.
    46    10.  The  term  "tangible  personal property" means corporeal personal
    47  property,  such  as  machinery,  tools,  implements,  goods,  wares  and
    48  merchandise,  and  does  not  mean  money,  deposits in banks, shares of
    49  stock, bonds, notes, credits or evidences of an  interest  property  and
    50  evidences of debt.
    51    11.  The  term "internal revenue code" means, unless otherwise specif-
    52  ically stated in this subchapter, the internal revenue code of 1986,  as
    53  amended.
    54    12.  The  term  "combinable captive insurance company" means an entity
    55  that is treated as an association taxable as  a  corporation  under  the
    56  internal  revenue  code: (a) more than fifty percent of the voting stock

        A. 6009                            119
 
     1  of which is owned or controlled, directly or  indirectly,  by  a  single
     2  entity  that is treated as an association taxable as a corporation under
     3  the internal revenue code and not exempt from federal income tax;
     4    (b)  that is licensed as a captive insurance company under the laws of
     5  this state or another jurisdiction;
     6    (c) whose business includes providing, directly and indirectly, insur-
     7  ance or reinsurance covering the risks of its parent and/or  members  of
     8  its affiliated group; and
     9    (d) fifty percent or less of whose gross receipts for the taxable year
    10  consist  of  premiums  from  arrangements  that constitute insurance for
    11  federal income tax purposes.
    12    For purposes of this subdivision,  "affiliated  group"  has  the  same
    13  meaning  as  that  term  is given in section fifteen hundred four of the
    14  internal revenue code, except that the term "common parent  corporation"
    15  in  that  section  is  deemed  to mean any person, as defined in section
    16  seven thousand seven hundred one of the internal revenue code and refer-
    17  ences to "at least eighty percent" in section fifteen  hundred  four  of
    18  the  internal  revenue  code  are to be read as "fifty percent or more;"
    19  section fifteen hundred four of the internal revenue code is to be  read
    20  without  regard to the exclusions provided for in subsection (b) of that
    21  section; "premiums" has the same meaning as that term is given in  para-
    22  graph  one  of subdivision (c) of section fifteen hundred ten of the tax
    23  law, except that it includes consideration  for  annuity  contracts  and
    24  excludes  any  part  of  the consideration for insurance, reinsurance or
    25  annuity contracts that do not provide bona fide  insurance,  reinsurance
    26  or  annuity benefits; and "gross receipts" includes the amounts included
    27  in gross receipts for purposes of paragraph fifteen of subsection (c) of
    28  section five hundred one of the internal revenue code, except that those
    29  amounts also include all premiums as defined in this subdivision.
    30    13. The term "partnership" includes a syndicate,  group,  pool,  joint
    31  venture,  or  other  unincorporated organization, through or by means of
    32  which any business, financial operation, or venture is carried  on,  and
    33  which  is  not  a  corporation  as  defined  by  subdivision one of this
    34  section, or a trust or estate that is separate from its owner under part
    35  one of subchapter J of chapter one of subtitle A of the internal revenue
    36  code; and the term "partner" includes a member in such syndicate, group,
    37  pool, joint venture, or organization.
    38    § 11-653 Imposition of tax; exemptions. 1. (a) For  the  privilege  of
    39  doing business, or of employing capital, or of owning or leasing proper-
    40  ty  in  the city in a corporate or organized capacity, or of maintaining
    41  an office in the city, or of deriving  receipts  from  activity  in  the
    42  city, for all or any part of each of its fiscal or calendar years, every
    43  domestic or foreign corporation, except corporations specified in subdi-
    44  vision four of this section, shall annually pay a tax, upon the basis of
    45  its  business  income,  or upon such other basis as may be applicable as
    46  hereinafter provided, for such fiscal or calendar year or part  thereof,
    47  on  a report which shall be filed, except as hereinafter provided, on or
    48  before the fifteenth day of March next succeeding the close of each such
    49  year, or, in the case of a taxpayer which reports  on  the  basis  of  a
    50  fiscal  year,  within  two  and  one-half months after the close of such
    51  fiscal year, and shall be paid as hereinafter provided.
    52    (b) A corporation is deriving receipts from activity in the city if it
    53  has receipts within the city of one million dollars or more in the taxa-
    54  ble year.  For purposes of this section, the term "receipts"  means  the
    55  receipts  that  are  subject  to  the  apportionment  rules set forth in
    56  section 11-654.2 of this subchapter, and the term "receipts  within  the

        A. 6009                            120
 
     1  city"  means  the  receipts  included  in  the numerator of the receipts
     2  percentage determined under section 11-654.2  of  this  subchapter.  For
     3  purposes  of this paragraph, receipts from processing credit card trans-
     4  actions  for  merchants  include  merchant discount fees received by the
     5  corporation.
     6    (c) A corporation is doing business in the city if (1) it  has  issued
     7  credit  cards  to  one  thousand  or  more  customers who have a mailing
     8  address within the city as of the last day of its taxable year,  (2)  it
     9  has  merchant  customer contracts with merchants and the total number of
    10  locations covered  by  those  contracts  equals  one  thousand  or  more
    11  locations  in  the  city  to  whom the corporation remitted payments for
    12  credit card transactions during the taxable year, or (3) the sum of  the
    13  number of customers described in subparagraph one of this paragraph plus
    14  the  number  of locations covered by its contracts described in subpara-
    15  graph two of this paragraph equals one thousand or more. As used in this
    16  subdivision, the term "credit card" includes bank,  credit,  travel  and
    17  entertainment cards.
    18    (d)(1)  A  corporation with less than one million dollars but at least
    19  ten thousand dollars of receipts within the city in a taxable year  that
    20  is  part of a unitary group under section 11-654.3 of this subchapter is
    21  deriving receipts from activity in the city if the receipts  within  the
    22  city of the members of the unitary group that have at least ten thousand
    23  dollars  of receipts within the city in the aggregate meet the threshold
    24  set forth in paragraph (b) of this subdivision.
    25    (2) A corporation that does not meet any of the thresholds  set  forth
    26  in  paragraph (c) of this subdivision but has at least ten customers, or
    27  locations, or customers and locations, as described in paragraph (c)  of
    28  this  subdivision,  and is part of a unitary group that meets the owner-
    29  ship test under section 11-654.3 of this subchapter is doing business in
    30  the city if  the  number  of  customers,  locations,  or  customers  and
    31  locations, within the city of the members of the unitary group that have
    32  at  least  ten  customers, locations, or customers and locations, within
    33  the city in the aggregate meets any of the thresholds set forth in para-
    34  graph (c) of this subdivision.
    35    (e) At the end of each year, the commissioner of finance shall  review
    36  the  cumulative  percentage  change  in  the  consumer  price index. The
    37  commissioner of finance shall adjust the receipt thresholds set forth in
    38  this subdivision if the consumer price index has changed by ten  percent
    39  or  more  since  January  first, two thousand fifteen, or since the date
    40  that the thresholds were  last  adjusted  under  this  subdivision.  The
    41  thresholds  shall  be  adjusted  to  reflect  that cumulative percentage
    42  change in the consumer price index. The  adjusted  thresholds  shall  be
    43  rounded  to the nearest one thousand dollars. As used in this paragraph,
    44  "consumer price index" means the consumer  price  index  for  all  urban
    45  consumers  (CPI-U)  available from the bureau of labor statistics of the
    46  United States department of labor. Any adjustment  shall  apply  to  tax
    47  periods that begin after the adjustment is made.
    48    (f)  If  a partnership is doing business, employing capital, owning or
    49  leasing property in the city, maintaining an  office  in  the  city,  or
    50  deriving  receipts  from activity in the city, any corporation that is a
    51  partner in such partnership shall be subject to tax under this  subchap-
    52  ter as described in the regulations of the commissioner of finance.
    53    2.  A  corporation shall not be deemed to be doing business, employing
    54  capital, owning or leasing property, or maintaining  an  office  in  the
    55  city,  or  deriving receipts from activity in the city, for the purposes
    56  of this subchapter, by reason of

        A. 6009                            121
 
     1    (a) the maintenance of cash balances with banks or trust companies  in
     2  the city, or
     3    (b)  the  ownership of shares of stock or securities kept in the city,
     4  if kept in a safe deposit box, safe, vault or  other  receptacle  rented
     5  for  the  purpose, or if pledged as collateral security, or if deposited
     6  with one or more banks or trust companies, or brokers who are members of
     7  a recognized security exchange, in safekeeping or custody accounts, or
     8    (c) the taking of any action by any such  bank  or  trust  company  or
     9  broker, which is incidental to the rendering of safekeeping or custodian
    10  service to such corporation, or
    11    (d)  the  maintenance of an office in the city by one or more officers
    12  or directors of the corporation who are not employees of the corporation
    13  if the corporation otherwise is not doing business in the city, and does
    14  not employ capital or own or lease property in the city, or
    15    (e) the keeping of books or records of a corporation in  the  city  if
    16  such  books or records are not kept by employees of such corporation and
    17  such corporation does not otherwise do business, employ capital, own  or
    18  lease property or maintain an office in the city, or
    19    (f) any combination of the foregoing activities.
    20    2-a.  An  alien  corporation shall not be deemed to be doing business,
    21  employing capital, owning or leasing property, or maintaining an  office
    22  in  the  city, for the purposes of this subchapter, if its activities in
    23  the city are limited solely to
    24    (a) investing or trading in stocks and securities for its own  account
    25  within  the  meaning of clause (ii) of subparagraph (A) of paragraph (2)
    26  of subsection (b) of section eight hundred sixty-four  of  the  internal
    27  revenue code, or
    28    (b) investing or trading in commodities for its own account within the
    29  meaning  of  clause  (ii)  of  subparagraph  (B)  of  paragraph  (2)  of
    30  subsection (b) of section  eight  hundred  sixty-four  of  the  internal
    31  revenue code, or
    32    (c)  any combination of activities described in paragraphs (a) and (b)
    33  of this subdivision.
    34    An alien corporation that under any provision of the internal  revenue
    35  code  is  not  treated as a "domestic corporation" as defined in section
    36  seven thousand seven hundred one of such code  and  has  no  effectively
    37  connected  income  for  the taxable year pursuant to clause three of the
    38  opening paragraph  of  subdivision  eight  of  section  11-652  of  this
    39  subchapter  shall  not  be subject to tax under this subchapter for that
    40  taxable year. For purposes of this subchapter, an alien corporation is a
    41  corporation organized under the laws of  a  country,  or  any  political
    42  subdivision  thereof,  other  than the United States, or organized under
    43  the laws of a  possession,  territory  or  commonwealth  of  the  United
    44  States.
    45    3. Any receiver, referee, trustee, assignee or other fiduciary, or any
    46  officer  or  agent  appointed by any court, who conducts the business of
    47  any corporation, shall be subject to the tax imposed by this  subchapter
    48  in  the  same  manner  and  to  the  same extent as if the business were
    49  conducted by the agents or officers of  such  corporation.  A  dissolved
    50  corporation which continues to conduct business shall also be subject to
    51  the tax imposed by this subchapter.
    52    4. (a) Corporations subject to tax under chapter eleven of this title,
    53  any  trust  company organized under a law of this state all of the stock
    54  of which is owned by not less than twenty savings banks organized  under
    55  a  law of this state, housing companies organized and operating pursuant
    56  to the provisions of article two of the  private  housing  finance  law,

        A. 6009                            122

     1  housing  development fund companies organized pursuant to the provisions
     2  of article eleven of  the  private  housing  finance  law,  corporations
     3  described  in  section  three  of the tax law, a corporation principally
     4  engaged  in the operation of marine vessels whose activities in the city
     5  are limited exclusively to the use of property in interstate or  foreign
     6  commerce,  provided,  however, such a corporation will not be subject to
     7  tax under this subchapter solely because it maintains an office  in  the
     8  city,  or  employs  capital  in the city, in connection with such use of
     9  property, a corporation principally engaged in the conduct  of  a  ferry
    10  business  and  operating between any of the boroughs of the city under a
    11  lease granted by the city and a corporation principally engaged  in  the
    12  conduct  of an aviation, steamboat, ferry or navigation business, or two
    13  or more of such businesses, all of the capital stock of which  is  owned
    14  by  a  municipal  corporation of this state, shall not be subject to tax
    15  under this subchapter; provided, however, that  any  corporation,  other
    16  than  (1)  a utility corporation subject to the supervision of the state
    17  department of public service, and (2) for taxable years beginning on  or
    18  after  August  first, two thousand two, a utility as defined in subdivi-
    19  sion six of section 11-1101 of this title, which is subject to tax under
    20  chapter eleven of this title as a vendor of utility  services  shall  be
    21  subject  to  tax under this subchapter, but in computing the tax imposed
    22  by this section pursuant to the provisions of clause (i) of subparagraph
    23  one of paragraph (e) of  subdivision  one  of  section  11-654  of  this
    24  subchapter,  business income allocated to the city pursuant to paragraph
    25  (a) of subdivision three  of  such  section  shall  be  reduced  by  the
    26  percentage  which  such  corporation's gross operating income subject to
    27  tax under chapter eleven of this title is of its gross operating income.
    28    (b) The term "gross operating income", when used in paragraph  (a)  of
    29  this  subdivision, means receipts received in or by reason of any trans-
    30  action had and consummated in the  city,  including  cash,  credits  and
    31  property  of any kind or nature (whether or not such transaction is made
    32  for profit), without any deduction therefrom on account of the  cost  of
    33  the  property sold, the cost of materials used, labor or other services,
    34  delivery costs or any other costs whatsoever, interest or discount  paid
    35  or any other expenses whatsoever.
    36    (c)  If it shall appear to the commissioner of finance that the appli-
    37  cation of the proviso of paragraph (a) of  this  subdivision,  does  not
    38  fairly  and  equitably  reflect  the  portion of the taxpayer's business
    39  income allocable to the city which is attributable to  its  city  activ-
    40  ities  which  are  not taxable under subchapter two of chapter eleven of
    41  this title, the commissioner of finance may  prescribe  other  means  or
    42  methods  of determining such portion, including the use of the books and
    43  records of the taxpayer, if the commissioner of finance finds that  such
    44  means  or methods used in keeping them fairly and equitably reflect such
    45  portion.
    46    5. Intentionally omitted.
    47    6. Intentionally omitted.
    48    7. For any taxable year of a real estate investment trust, as  defined
    49  in  section  eight  hundred  fifty-six  of the internal revenue code, in
    50  which such trust is subject to federal  income  taxation  under  section
    51  eight hundred fifty-seven of such code, such trust shall be subject to a
    52  tax  computed  under  either clause (i) of subparagraph one of paragraph
    53  (e) subdivision one of section 11-654  of  this  subchapter,  or  clause
    54  (iv), whichever is greater. In the case of such a real estate investment
    55  trust,  including  a  captive  REIT as defined in section 11-601 of this
    56  chapter, the term "entire net  income"  means  "real  estate  investment

        A. 6009                            123
 
     1  trust  taxable income" as defined in paragraph two of subdivision (b) of
     2  section eight hundred fifty-seven (as modified by section eight  hundred
     3  fifty-eight)  of the internal revenue code plus the amount taxable under
     4  paragraph  three of subdivision (b) of section eight hundred fifty-seven
     5  of such code, subject to the modifications required by subdivision eight
     6  of  section  11-652  of  this  subchapter  including  the  modifications
     7  required  by  paragraphs  (d)  and  (e)  of subdivision three of section
     8  11-654 of this subchapter.
     9    8. For any taxable year of a regulated investment company, as  defined
    10  in  section  eight  hundred  fifty-one  of the internal revenue code, in
    11  which such company is subject to federal income taxation  under  section
    12  eight hundred fifty-two of such code, such company shall be subject to a
    13  tax  computed  under  either  clause  one or four of subparagraph (a) of
    14  paragraph E of subdivision one of section  11-654  of  this  subchapter,
    15  whichever  is greater. In the case of such a regulated investment compa-
    16  ny, including a captive RIC as defined in section 11-601 of  this  chap-
    17  ter,  the  term  "entire  net  income"  used  in subdivision one of this
    18  section means "investment company taxable income" as  defined  in  para-
    19  graph  two  of  subdivision  (b)  of section eight hundred fifty-two, as
    20  modified by section eight hundred fifty-five, of  the  internal  revenue
    21  code plus the amount taxable under paragraph three of subdivision (b) of
    22  section  eight  hundred  fifty-two of such code subject to the modifica-
    23  tions required by subdivision eight of section 11-652 of  this  subchap-
    24  ter,  including  the  modification required by paragraphs (d) and (e) of
    25  subdivision three of section 11-654 of this subchapter.
    26    9. An organization described in paragraph two or twenty-five of subdi-
    27  vision (c) of section five hundred one  of  the  internal  revenue  code
    28  shall be exempt from all taxes imposed by this subchapter.
    29    § 11-654 Computation of tax. 1. (a) Intentionally omitted.
    30    (b) Intentionally omitted.
    31    (c) Intentionally omitted.
    32    (d) Intentionally omitted.
    33    (e)  The  tax  imposed  by  subdivision  one of section 11-653 of this
    34  subchapter shall be, in the case of each taxpayer:
    35    (1) whichever of the following amounts is the greatest:
    36    (i) an amount computed at the rate of eight and  eighty-five  one-hun-
    37  dredths  per centum, of its business income or the portion of such busi-
    38  ness income allocated within the city as hereinafter  provided,  subject
    39  to the application of paragraphs (j) and (k) of this subdivision and any
    40  modification  required by paragraphs (d) and (e) of subdivision three of
    41  this section,
    42    (ii) an amount computed by multiplying its total business capital,  or
    43  the  portion thereof allocated within the city, as hereinafter provided,
    44  by fifteen  one-hundredths  per  centum  and  subtracting  ten  thousand
    45  dollars from the total, except that in the case of a cooperative housing
    46  corporation  as  defined in the internal revenue code, such amount shall
    47  be computed by multiplying its total business capital,  or  the  portion
    48  thereof  allocated  within  the  city,  as hereinafter provided, by four
    49  one-hundredths per centum and subtracting ten thousand dollars from  the
    50  total, provided that if such amount is less than zero it shall be deemed
    51  to  be  zero,  and provided further that in no event shall the amount of
    52  tax computed on the taxpayer's business capital, or the portion of ther-
    53  eof allocated within the city, exceed ten million dollars, or
    54    (iii) Intentionally omitted
    55    (iv) If New York city receipts are:                  Fixed dollar minimum

        A. 6009                            124
 
     1                                                         tax is:
     2  Not more than $100,000                                 $25
     3  More than $100,000 but not over $250,000               $75
     4  More than $250,000 but not over $500,000               $175
     5  More than $500,000 but not over $1,000,000             $500
     6  More than $1,000,000 but not over $5,000,000           $1,500
     7  More than $5,000,000 but not over $25,000,000          $3,500
     8  More than $25,000,000 but not over $50,000,000         $5,000
     9  More than $50,000,000 but not over $100,000,000        $10,000
    10  More than $100,000,000 but not over $250,000,000       $20,000
    11  More than $250,000,000 but not over $500,000,000       $50,000
    12  More than $500,000,000 but not over $1,000,000,000     $100,000
    13  Over $1,000,000,000                                    $200,000
    14    For  purposes  of this clause, New York city receipts are the receipts
    15  computed in accordance with section 11-654.2 of this subchapter for  the
    16  taxable year. If the taxable year is less than twelve months, the amount
    17  prescribed by this clause shall be reduced by twenty-five percent if the
    18  period  for which the taxpayer is subject to tax is more than six months
    19  but not more than nine months and by fifty percent  if  the  period  for
    20  which the taxpayer is subject to tax is not more than six months. If the
    21  taxable  year  is  less  than twelve months, the amount of New York city
    22  receipts for purposes of this  clause  is  determined  by  dividing  the
    23  amount  of  the receipts for the taxable year by the number of months in
    24  the taxable year and multiplying the result by twelve.
    25    (f) Intentionally omitted.
    26    (g) Intentionally omitted.
    27    (h) Intentionally omitted.
    28    (i) Intentionally omitted.
    29    (j) (1) If the amount of business income computed without taking  into
    30  account the prior net operation loss conversion subtraction provided for
    31  in  subdivision  two  of  section  11-654.1 of this subchapter allocated
    32  within the city  as  hereinafter  provided  is  less  than  one  million
    33  dollars,  the amount computed in clause (i) of subparagraph one of para-
    34  graph (e) of this subdivision shall be at the  rate  of  six  and  five-
    35  tenths  per centum of the amount of business income allocated within the
    36  city as hereinafter provided, subject to any  modification  required  by
    37  paragraphs (d) and (e) of subdivision three of this section;
    38    (2)  Subject to subparagraph three of this paragraph, if the amount of
    39  business income computed without taking into account the prior net oper-
    40  ating loss conversion subtraction provided for  in  subdivision  two  of
    41  section 11-654.1 of this subchapter allocated within the city as herein-
    42  after  provided  is  one  million  dollars  or greater but less than one
    43  million dollars but less than one million five hundred thousand dollars,
    44  the amount computed in clause (i) of subparagraph one of  paragraph  (e)
    45  of  this subdivision shall be at the rate of (i) six and five-tenths per
    46  centum, plus (ii) two and thirty-five one-hundredths per  centum  multi-
    47  plied  by a fraction the numerator of which is allocated business income
    48  computed without taking  into  account  the  prior  net  operating  loss
    49  conversion  subtraction  provided  for  in  subdivision  two  of section
    50  11-654.1 of this subchapter less one million dollars and the denominator
    51  of which is five hundred thousand dollars, of  the  amount  of  business
    52  income allocated within the city as hereinafter provided, subject to any
    53  modification  required by paragraphs (d) and (e) of subdivision three of
    54  this section;
    55    (3) Provided, however, notwithstanding anything to  the  contrary,  if
    56  the  amount  of unallocated business income computed without taking into

        A. 6009                            125
 
     1  account the prior net operating loss conversion subtraction provided for
     2  in subdivision two of section 11-654.1 of this subchapter is two million
     3  dollars or greater but less than three million dollars, the rate of  tax
     4  provided  for in this paragraph shall not be less than (i) six and five-
     5  tenths per centum, plus (ii)  two  and  thirty-five  one-hundredths  per
     6  centum  multiplied  by  a fraction the numerator of which is unallocated
     7  business income computed without taking into account the prior net oper-
     8  ating loss conversion subtraction provided for  in  subdivision  two  of
     9  section  11-654.1  of  this  subchapter less two million dollars and the
    10  denominator of which is one  million  dollars,  and  provided,  however,
    11  notwithstanding  anything  to the contrary, if the amount of unallocated
    12  business income computed without taking into account the prior net oper-
    13  ating loss conversion subtraction provided for  in  subdivision  two  of
    14  section 11-654.1 of this subchapter is three million dollars or greater,
    15  the rate of tax shall be eight and eighty-five one hundredths percentum.
    16    (k)(1)  For  qualified  New  York  city  manufacturing corporations as
    17  defined in subparagraph four of this paragraph, if the amount  of  busi-
    18  ness income computed without taking into account the prior net operating
    19  loss  conversion  subtraction provided for in subdivision two of section
    20  11-654.1 of this subchapter allocated within  the  city  as  hereinafter
    21  provided is less than ten million dollars, the amount computed in clause
    22  (i) of subparagraph one of paragraph (e) of this subdivision shall be at
    23  the  rate  of  four  and  four  hundred  twenty-five one thousandths per
    24  centum, of its business income allocated within the city as  hereinafter
    25  provided, subject to any modification required by paragraphs (d) and (e)
    26  of subdivision three of this section;
    27    (2)  Subject to subparagraph three of this paragraph for qualified New
    28  York city manufacturing corporations as defined in subparagraph four  of
    29  this paragraph, if the amount of business income computed without taking
    30  into  account  the  prior  net  operating  loss  conversion  subtraction
    31  provided for in subdivision two of section 11-654.1 of  this  subchapter
    32  allocated within the city as hereinafter provided is ten million dollars
    33  or  greater but less than twenty million dollars, the amount computed in
    34  clause (i) of subparagraph one of  paragraph  (e)  of  this  subdivision
    35  shall be at the rate of (i) four and four hundred twenty-five one-thous-
    36  andths  per  centum,  plus  (ii)  four and four hundred twenty-five one-
    37  thousandths per centum multiplied by a fraction the numerator  of  which
    38  is  allocated  business  income computed without taking into account the
    39  prior net operating loss conversion subtraction provided for in subdivi-
    40  sion two of section 11-654.1 of this subchapter less ten million dollars
    41  and the denominator of which is ten million  dollars,  of  its  business
    42  income  or the portion of such business income allocated within the city
    43  as hereinafter provided, subject to any modification required  by  para-
    44  graphs (d) and (e) of subdivision three of this section;
    45    (3) Notwithstanding anything to the contrary, if the amount of unallo-
    46  cated business income computed without taking into account the prior net
    47  operating loss conversion subtraction provided for in subdivision two of
    48  section 11-654.1 of this subchapter is twenty million dollars or greater
    49  but  less  than  forty  million dollars, the rate of tax provided for in
    50  this paragraph shall not be less than (i) four and four hundred  twenty-
    51  five  one thousandths percentum, plus (ii) four and four hundred twenty-
    52  five one thousandths percentum multiplied by a fraction the numerator of
    53  which is  unallocated  business  income  computed  without  taking  into
    54  account the prior net operating loss conversion subtraction provided for
    55  in  subdivision  two  of section 11-654.1 of this subchapter less twenty
    56  million dollars and the denominator of which is twenty million  dollars,

        A. 6009                            126
 
     1  and  provided, however, notwithstanding anything to the contrary, if the
     2  amount of unallocated  business  income  computed  without  taking  into
     3  account the prior net operating loss conversion subtraction provided for
     4  in  subdivision  two  of  section  11-654.1  of this subchapter is forty
     5  million dollars or greater, the rate of tax shall be eight  and  eighty-
     6  five one-hundredths per centum.
     7    (4)(i)  As  used  in this subparagraph, the term "manufacturing corpo-
     8  ration" means a corporation principally engaged in the manufacturing and
     9  sale thereof of tangible personal property; and the term "manufacturing"
    10  includes the process (including the assembly process) (A) of working raw
    11  materials into wares suitable for use or (B) which gives new shapes, new
    12  qualities or new combinations to matter which already has  gone  through
    13  some  artificial process, by the use of machinery, tools, appliances and
    14  other similar equipment. Moreover, in the case of a combined  report,  a
    15  combined  group  shall  be  considered a "manufacturing corporation" for
    16  purposes of this subparagraph only if  the  combined  group  during  the
    17  taxable  year is principally engaged in the activities set forth in this
    18  paragraph, or any combination thereof. A taxpayer or, in the case  of  a
    19  combined  report,  a  combined  group, shall be "principally engaged" in
    20  activities described above if, during the taxable year, more than  fifty
    21  percent of the gross receipts of the taxpayer or combined group, respec-
    22  tively,  are  derived  from  receipts from the sale of goods produced by
    23  such activities. In computing a combined group's gross receipts,  inter-
    24  corporate receipts shall be eliminated.
    25    (ii)  A "qualified New York city manufacturing corporation" is a manu-
    26  facturing corporation that has property in the city which  is  described
    27  in subparagraph five of this paragraph and either (A) the adjusted basis
    28  of  such  property  for  federal income tax purposes at the close of the
    29  taxable year is at least one million dollars  or  (B)  more  than  fifty
    30  percentum of its real and personal property is located in the city.
    31    (5)  For purposes of subclause (A) of clause (ii) of subparagraph four
    32  of this paragraph, property  includes  tangible  personal  property  and
    33  other  tangible  property, including buildings and structural components
    34  of buildings, which are: depreciable pursuant  to  section  one  hundred
    35  sixty-seven  of  the  internal  revenue code, have a useful life of four
    36  years or more, are acquired by purchase as defined in subsection (d)  of
    37  section  one  hundred  seventy-nine of the internal revenue code, have a
    38  situs in this city and are principally  used  by  the  taxpayer  in  the
    39  production of goods by manufacturing. Property used in the production of
    40  goods  shall  include  machinery,  equipment  or other tangible property
    41  which is principally used in the repair and service of other  machinery,
    42  equipment  or other tangible property used principally in the production
    43  of goods and shall include all facilities used in the production  opera-
    44  tion,  including storage of material to be used in production and of the
    45  products that are produced.
    46    2. The amount of business capital shall be determined  by  taking  the
    47  average  value  of  the  gross assets included therein (less liabilities
    48  deductible therefrom pursuant to the provisions of subdivisions four and
    49  six of section 11-652 of this subchapter), and, if the period covered by
    50  the report is other than a period of twelve calendar months,  by  multi-
    51  plying such value by the number of calendar months or major parts there-
    52  of  included  in  such period, and dividing the product thus obtained by
    53  twelve. For purposes of this subdivision, real property  and  marketable
    54  securities  shall  be  valued  at  fair  market  value  and the value of
    55  personal property other than marketable securities shall  be  the  value

        A. 6009                            127
 
     1  thereof  shown  on  the  books and records of the taxpayer in accordance
     2  with generally accepted accounting principles.
     3    3. The portion of the business income of a taxpayer to be allocated to
     4  the city shall be determined as follows:
     5    (a)  multiply  its business income by a business allocation percentage
     6  to be determined by:
     7    (1) ascertaining the percentage which the average value of the taxpay-
     8  er's real and tangible personal property, whether owned or rented to it,
     9  within the city during the period covered by its  report  bears  to  the
    10  average value of all the taxpayer's real and tangible personal property,
    11  whether owned or rented to it, wherever situated during such period. For
    12  the purpose of this subparagraph, the term "value of the taxpayer's real
    13  and  tangible  personal  property" shall mean the adjusted bases of such
    14  properties for federal income tax purposes (except that in the  case  of
    15  rented  property such value shall mean the product of (i) eight and (ii)
    16  the gross rents payable for the rental of such property during the taxa-
    17  ble year); provided, however, that the taxpayer  may  make  a  one-time,
    18  revocable  election,  pursuant to regulations promulgated by the commis-
    19  sioner of finance to use fair market value as the value of  all  of  its
    20  real and tangible personal property, provided that such election is made
    21  on  or  before  the due date for filing a report under section 11-655 of
    22  this subchapter for the taxpayer's first taxable year commencing  on  or
    23  after  January  first,  two  thousand  fifteen  and  provided  that such
    24  election shall not apply to any taxable year with respect to  which  the
    25  taxpayer  is  included on a combined report unless each of the taxpayers
    26  included on such report has made  such  an  election  which  remains  in
    27  effect  for  such  year or to any taxpayer that was subject to tax under
    28  subchapter two of this chapter and did not have an  election  in  effect
    29  under  subparagraph one of paragraph (a) of subdivision three of section
    30  11-604 of this chapter on December thirty-first, two thousand fourteen;
    31    (2) ascertaining the percentage determined under section  11-654.2  of
    32  this subchapter;
    33    (3) ascertaining the percentage of the total wages, salaries and other
    34  personal service compensation, similarly computed, during such period of
    35  employees  within  the  city,  except general executive officers, to the
    36  total wages, salaries and other personal service compensation, similarly
    37  computed, during such period of all the taxpayer's employees within  and
    38  without the city, except general executive officers; and
    39    (4)  adding  together  the  percentages so determined and dividing the
    40  result by the number of percentages.
    41    (5) Intentionally omitted.
    42    (6) Intentionally omitted.
    43    (7) Intentionally omitted.
    44    (8) Intentionally omitted.
    45    (9) Intentionally omitted.
    46    (10) Notwithstanding subparagraphs one through four of this paragraph,
    47  the business allocation percentage, to the extent that it is computed by
    48  reference to the percentages determined under subparagraphs one, two and
    49  three of this paragraph, shall be computed in the manner  set  forth  in
    50  this subparagraph.
    51    (i) Intentionally omitted.
    52    (ii) Intentionally omitted.
    53    (iii) Intentionally omitted.
    54    (iv) Intentionally omitted.
    55    (v) Intentionally omitted.
    56    (vi) Intentionally omitted.

        A. 6009                            128
 
     1    (vii)  For  taxable years beginning in two thousand fifteen, the busi-
     2  ness allocation percentage shall be determined by  adding  together  the
     3  following percentages:
     4    (A)  the  product  of  ten percent and the percentage determined under
     5  subparagraph one of this paragraph;
     6    (B) the product of eighty percent and the percentage determined  under
     7  subparagraph two of this paragraph; and
     8    (C)  the  product  of  ten percent and the percentage determined under
     9  subparagraph three of this paragraph.
    10    (viii) For taxable years beginning in two thousand sixteen, the  busi-
    11  ness  allocation  percentage  shall be determined by adding together the
    12  following percentages:
    13    (A) the product of six and one-half percent and the percentage  deter-
    14  mined under subparagraph one of this paragraph;
    15    (B)  the product of eighty-seven percent and the percentage determined
    16  under subparagraph two of this paragraph; and
    17    (C) the product of six and one-half percent and the percentage  deter-
    18  mined under subparagraph three of this paragraph.
    19    (ix)  For taxable years beginning in two thousand seventeen, the busi-
    20  ness allocation percentage shall be determined by  adding  together  the
    21  following percentages:
    22    (A)  the  product  of  three  and  one-half percent and the percentage
    23  determined under subparagraph one of this paragraph;
    24    (B) the product of ninety-three percent and the percentage  determined
    25  under subparagraph two of this paragraph; and
    26    (C)  the  product  of  three  and  one-half percent and the percentage
    27  determined under subparagraph three of this paragraph.
    28    (x) For taxable years beginning  after  two  thousand  seventeen,  the
    29  business  allocation percentage shall be the percentage determined under
    30  subparagraph two of this paragraph.
    31    (xi) The commissioner of finance shall promulgate rules  necessary  to
    32  implement  the  provisions of this subparagraph under such circumstances
    33  where any of the percentages to be determined  under  subparagraph  one,
    34  two or three of this paragraph cannot be determined because the taxpayer
    35  has no property, receipts or wages within or without the city.
    36    (b) Intentionally omitted.
    37    (c) Intentionally omitted.
    38    (d)  In  any  taxable year when property is sold or otherwise disposed
    39  of, with respect to which a  deduction  has  been  allowed  pursuant  to
    40  subparagraph one or two of paragraph (d) of subdivision three of section
    41  11-604  of  this  chapter  or  subdivision (k) of section 11-641 of this
    42  chapter in any period in which the taxpayer was  subject  to  tax  under
    43  subchapter  two  of this chapter, the gain or loss thereon entering into
    44  the computation of  federal  taxable  income  shall  be  disregarded  in
    45  computing  entire  net income, and there shall be added to or subtracted
    46  from the portion of entire net income allocated within the city the gain
    47  or loss upon such sale or other disposition. In computing such  gain  or
    48  loss  the basis of the property sold or disposed of shall be adjusted to
    49  reflect the deduction allowed with respect to such property pursuant  to
    50  subparagraph one or two of paragraph (d) of subdivision three of section
    51  11-604  of this chapter. Provided, however, that no loss shall be recog-
    52  nized for the purposes of this subparagraph with respect to  a  sale  or
    53  other  disposition  of property to a person whose acquisition thereof is
    54  not a purchase as defined in  subsection  (d)  of  section  one  hundred
    55  seventy-nine of the internal revenue code.

        A. 6009                            129
 
     1    (e)  In  any  taxable year when property is sold or otherwise disposed
     2  of, with respect to which a  deduction  has  been  allowed  pursuant  to
     3  subparagraph one or two of paragraph (e) of subdivision three of section
     4  11-604  of  this  chapter  in any period the taxpayer was subject to tax
     5  under  subchapter two of this chapter, the gain or loss thereon entering
     6  into the computation of federal taxable income shall be  disregarded  in
     7  computing  entire  net income, and there shall be added to or subtracted
     8  from the portion of entire net income allocated within the city the gain
     9  or loss upon such sale or other disposition. In computing such  gain  or
    10  loss  the basis of the property sold or disposed of shall be adjusted to
    11  reflect the deduction allowed with respect to such property pursuant  to
    12  subparagraph one or two of paragraph (e) of subdivision three of section
    13  11-604 of this chapter.  Provided, however, that no loss shall be recog-
    14  nized  for  the  purposes of this subparagraph with respect to a sale or
    15  other disposition of property to a person whose acquisition  thereof  is
    16  not  a  purchase  as  defined  in  subsection (d) of section one hundred
    17  seventy-nine of the internal revenue code.
    18    4. The portion of the business capital of a taxpayer to  be  allocated
    19  within the city shall be determined by multiplying the amount thereof by
    20  the business allocation percentage determined as hereinabove provided.
    21    4-a.  A  corporation  that is a partner in a partnership shall compute
    22  tax under this subchapter using any  method  required  or  permitted  in
    23  regulations of the commissioner of finance.
    24    5. Intentionally omitted.
    25    6. Intentionally omitted.
    26    7. Intentionally omitted.
    27    8. Intentionally omitted.
    28    9. If it shall appear to the commissioner of finance that any business
    29  allocation  percentage determined as hereinabove provided does not prop-
    30  erly reflect the activity, business, income or  capital  of  a  taxpayer
    31  within  the city, the commissioner of finance shall be authorized in his
    32  or her discretion to adjust it, or the taxpayer  may  request  that  the
    33  commissioner  of  finance adjust it, by (a) excluding one or more of the
    34  factors therein, (b) including  one  or  more  other  factors,  such  as
    35  expenses,  purchases,  contract  values  (minus subcontract values), (c)
    36  excluding one or more assets in computing  such  allocation  percentage,
    37  provided  the  income  therefrom, is also excluded in determining entire
    38  net income, or (d) any other similar or different method  calculated  to
    39  effect a fair and proper allocation of the income and capital reasonably
    40  attributable  to the city. The commissioner of finance from time to time
    41  shall publish all rulings of general public interest with respect to any
    42  application of the provisions of this subdivision.
    43    10. Intentionally omitted.
    44    11. Intentionally omitted.
    45    12. Intentionally omitted.
    46    13. (a) In addition to any other credit allowed  by  this  section,  a
    47  taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
    48  subchapter to be credited or refunded without interest,  in  the  manner
    49  hereinafter provided in this section.
    50    (1)(i)  Where  a  taxpayer  shall  have  relocated  to the city from a
    51  location outside the state, and by such relocation shall have created  a
    52  minimum  of  one  hundred  industrial  or commercial employment opportu-
    53  nities; and where such taxpayer shall have entered into a written  lease
    54  for  the  relocation  premises,  the  terms  of  which lease provide for
    55  increased additional payments to the landlord which are based solely and
    56  directly upon any increase or addition in real estate taxes  imposed  on

        A. 6009                            130
 
     1  the leased premises, the taxpayer upon approval and certification by the
     2  industrial  and commercial incentive board as hereinafter provided shall
     3  be entitled to a credit against the tax imposed by this subchapter.  The
     4  amount  of  such credit shall be an amount equal to the annual increased
     5  payments actually made by the taxpayer to the landlord which are  solely
     6  and  directly attributable to an increase or addition to the real estate
     7  tax imposed upon the leased premises. Such credit shall be allowed  only
     8  to the extent that the taxpayer has not otherwise claimed said amount as
     9  a deduction against the tax imposed by this subchapter.
    10    (ii)  The  industrial  and commercial incentive board in approving and
    11  certifying to the qualifications of the  taxpayer  to  receive  the  tax
    12  credit  provided for herein shall first determine that the applicant has
    13  met the requirements of this section, and further, that the granting  of
    14  the  tax  credit to the applicant is in the "public interest". In deter-
    15  mining that the granting of the tax credit is in  the  public  interest,
    16  the  board shall make affirmative findings that: the granting of the tax
    17  credit to the applicant will not effect an  undue  hardship  on  similar
    18  taxpayers  already  located  within  the city; the existence of this tax
    19  incentive has been instrumental in bringing about the relocation of  the
    20  applicant  to  the  city; and the granting of the tax credit will foster
    21  the economic recovery and economic development of the city.
    22    (iii) The tax credit, if approved and certified by the industrial  and
    23  commercial  incentive  board,  must be utilized annually by the taxpayer
    24  for the length of the term of the lease or for a period  not  to  exceed
    25  ten years from the date of relocation whichever period is shorter.
    26    (2) When used in this subdivision:
    27    (i)  "Employment  opportunity" means the creation of a full time posi-
    28  tion of gainful employment for an industrial or commercial employee  and
    29  the actual hiring of such employee for the said position.
    30    (ii)  "Industrial  employee"  means  one engaged in the manufacture or
    31  assembling of tangible goods or the processing of raw materials.
    32    (iii) "Commercial employee" means one engaged in the  buying,  selling
    33  or  otherwise  providing  of  goods  or  services other than on a retail
    34  basis.
    35    (iv) "Retail" means the selling or otherwise disposing  or  furnishing
    36  of tangible goods or services directly to the ultimate user or consumer.
    37    (v)  "Full time position" means the hiring of an industrial or commer-
    38  cial employee in a position of gainful employment where  the  number  of
    39  hours  worked by such employees is not less than thirty hours during any
    40  given work week.
    41    (vi) "Industrial and  commercial  incentive  board"  means  the  board
    42  created  pursuant to part three of subchapter two of chapter two of this
    43  title.
    44    (b) The credit allowed under this subdivision  for  any  taxable  year
    45  shall  be deemed to be an overpayment of tax by the taxpayer to be cred-
    46  ited or refunded, without interest, in accordance with the provisions of
    47  section 11-677 of this chapter.
    48    14. (a) In addition to any other credit allowed  by  this  section,  a
    49  taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
    50  subchapter to be credited or refunded without interest,  in  the  manner
    51  hereinafter  provided  in  this section. The amount of such credit shall
    52  be:
    53    (1) A maximum of three hundred dollars for each commercial  employment
    54  opportunity  and  a  maximum of five hundred dollars for each industrial
    55  employment opportunity relocated to the city from an  area  outside  the
    56  state.  Such credit shall be allowed to a taxpayer who relocates a mini-

        A. 6009                            131
 
     1  mum of ten employment opportunities. The credit shall be allowed against
     2  employment opportunity relocation costs incurred by the  taxpayer.  Such
     3  credit  shall  be  allowed  only to the extent that the taxpayer has not
     4  claimed  a  deduction  for  allowable  employment opportunity relocation
     5  costs. The credit allowed hereunder may be  taken  by  the  taxpayer  in
     6  whole  or  in  part  in  the year in which the employment opportunity is
     7  relocated by such taxpayer or either of the two  years  succeeding  such
     8  event, provided, however, no credit shall be allowed under this subdivi-
     9  sion  to a taxpayer for industrial employment opportunities relocated to
    10  premises (i) that are within an  industrial  business  zone  established
    11  pursuant  to  section  22-626  of this code and (ii) for which a binding
    12  contract to purchase or lease was first entered into by the taxpayer  on
    13  or after July first, two thousand five.
    14    The commissioner of finance is empowered to promulgate rules and regu-
    15  lations and to prescribe the form of application to be used by a taxpay-
    16  er seeking the credit provided hereunder.
    17    (2) When used in this subdivision:
    18    (i)  "Employment  opportunity" means the creation of a full time posi-
    19  tion of gainful employment for an industrial or commercial employee  and
    20  the actual hiring of such employee for the said position.
    21    (ii)  "Industrial  employee"  means  one engaged in the manufacture or
    22  assembling of tangible goods or the processing of raw materials.
    23    (iii) "Commercial employee" means one engaged in the  buying,  selling
    24  or  otherwise  providing  of  goods  or  services other than on a retail
    25  basis.
    26    (iv) "Retail" means the selling or  otherwise  disposing  of  tangible
    27  goods directly to the ultimate user or consumer.
    28    (v)  "Full time position" means the hiring of an industrial or commer-
    29  cial employee in a position of gainful employment where  the  number  of
    30  hours  worked  by such employee is not less than thirty hours during any
    31  given work week.
    32    (vi)  "Employment  opportunity  relocation  costs"  means  the   costs
    33  incurred  by  the taxpayer in moving furniture, files, papers and office
    34  equipment into the city from a location outside  the  state;  the  costs
    35  incurred by the taxpayer in the moving and installation of machinery and
    36  equipment  into the city from a location outside the state; the costs of
    37  installation of telephones and other communications  equipment  required
    38  as  a  result  of the relocation to the city from a location outside the
    39  state; the cost  incurred  in  the  purchase  of  office  furniture  and
    40  fixtures  required  as  a  result  of  the relocation to the city from a
    41  location outside the state; and the cost of renovation of  the  premises
    42  to  be  occupied  as a result of the relocation; provided, however, that
    43  such renovation costs shall be allowable only to the extent that they do
    44  not exceed seventy-five cents per square foot of the total area utilized
    45  by the taxpayer in the occupied premises.
    46    (b) The credit allowed under this section for any taxable  year  shall
    47  be  deemed to be an overpayment of tax by the taxpayer to be credited or
    48  refunded without interest in accordance with the provisions  of  section
    49  11-677 of this chapter.
    50    (c)  Notwithstanding  any  other  provision of this subdivision to the
    51  contrary, in the case of a taxpayer that has received, in a taxable year
    52  beginning before January first, two thousand  fifteen,  the  credit  set
    53  forth  in  subdivision fourteen of section 11-604 of this chapter for an
    54  eligible employment relocation, a credit shall be allowed to the taxpay-
    55  er under this subdivision for any tax year beginning on or after January
    56  first, two thousand fifteen, in the same amount and to the  same  extent

        A. 6009                            132
 
     1  that  a  credit,  or the unused portion thereof, would have been allowed
     2  under subdivision fourteen of section 11-604  of  this  chapter,  as  in
     3  effect on December thirty-first, two thousand fourteen, if such subdivi-
     4  sion continued to apply to the taxpayer for such taxable year.
     5    15. Intentionally omitted.
     6    16. Intentionally omitted.
     7    17.  (a)  In  addition  to any other credit allowed by this section, a
     8  taxpayer that has obtained the certifications required by chapter  six-B
     9  of  title  twenty-two of this code shall be allowed a credit against the
    10  tax imposed by this subchapter. The amount of the credit  shall  be  the
    11  amount determined by multiplying five hundred dollars or, in the case of
    12  a  taxpayer  that  has  obtained pursuant to chapter six-B of such title
    13  twenty-two a certification of eligibility dated on or after July  first,
    14  nineteen hundred ninety-five, one thousand dollars or, in the case of an
    15  eligible  business  that  has obtained pursuant to chapter six-B of such
    16  title twenty-two a certification of eligibility dated on or  after  July
    17  first, two thousand, for a relocation to eligible premises located with-
    18  in a revitalization area defined in subdivision (n) of section 22-621 of
    19  this  code,  three thousand dollars, by the number of eligible aggregate
    20  employment shares maintained by the taxpayer  during  the  taxable  year
    21  with respect to particular premises to which the taxpayer has relocated;
    22  provided, however, with respect to a relocation for which no application
    23  for  a  certificate of eligibility is submitted prior to July first, two
    24  thousand three, to eligible premises that are not within  a  revitaliza-
    25  tion  area,  if  the  date  of such relocation as determined pursuant to
    26  subdivision (j) of section 22-621 of this code  is  before  July  first,
    27  nineteen  hundred ninety-five, the amount to be multiplied by the number
    28  of eligible aggregate employment shares shall be five  hundred  dollars,
    29  and  with respect to a relocation for which no application for a certif-
    30  icate of eligibility is submitted prior  to  July  first,  two  thousand
    31  three,  to  eligible  premises that are within a revitalization area, if
    32  the date of such relocation as determined pursuant to subdivision (j) of
    33  such section is before July first,  nineteen  hundred  ninety-five,  the
    34  amount  to  be multiplied by the number of eligible aggregate employment
    35  shares shall be five hundred dollars, and if the date of such relocation
    36  as determined pursuant to subdivision (j) of such section is on or after
    37  July first, nineteen hundred ninety-five, and  before  July  first,  two
    38  thousand,  one thousand dollars; provided, however, that no credit shall
    39  be allowed for the relocation of any retail activity or hotel  services;
    40  provided,  further,  that no credit shall be allowed under this subdivi-
    41  sion to any taxpayer that has elected pursuant  to  subdivision  (d)  of
    42  section 22-622 of this code to take such credit against a gross receipts
    43  tax  imposed  by  chapter eleven of this title; and provided that in the
    44  case of an eligible business that has obtained pursuant to chapter six-B
    45  of such title twenty-two certifications of eligibility for more than one
    46  relocation, the portion  of  the  total  amount  of  eligible  aggregate
    47  employment  shares  to  be  multiplied by the dollar amount specified in
    48  this subdivision for each such certification of a  relocation  shall  be
    49  the  number  of  total  attributed  eligible aggregate employment shares
    50  determined with respect to such relocation pursuant to  subdivision  (o)
    51  of  section  22-621  of this code. For purposes of this subdivision, the
    52  terms "eligible aggregate employment shares," "relocate," "retail activ-
    53  ity" and "hotel services" shall have the meanings  ascribed  by  section
    54  22-621 of this code.
    55    (b) The credit allowed under this subdivision with respect to eligible
    56  aggregate  employment shares maintained with respect to particular prem-

        A. 6009                            133
 
     1  ises to which the taxpayer has relocated shall be allowed for the  first
     2  taxable  year during which such eligible aggregate employment shares are
     3  maintained with respect to such premises  and  for  any  of  the  twelve
     4  succeeding  taxable  years  during  which  eligible aggregate employment
     5  shares are maintained with respect to such premises; provided  that  the
     6  credit  allowed  for the twelfth succeeding taxable year shall be calcu-
     7  lated by multiplying the number of eligible aggregate employment  shares
     8  maintained with respect to such premises in the twelfth succeeding taxa-
     9  ble  year  by the lesser of one and a fraction the numerator of which is
    10  such number of days in the taxable year of relocation less the number of
    11  days the eligible business maintained employment shares in the  eligible
    12  premises  in the taxable year of relocation and the denominator of which
    13  is the number of days in such twelfth  succeeding  taxable  year  during
    14  which  such  eligible  aggregate  employment  shares are maintained with
    15  respect to such premises. Except as provided in paragraph  (d)  of  this
    16  subdivision,  if  the amount of the credit allowable under this subdivi-
    17  sion for any taxable year exceeds the tax imposed  for  such  year,  the
    18  excess may be carried over, in order, to the five immediately succeeding
    19  taxable  years  and,  to  the  extent  not previously deductible, may be
    20  deducted from the taxpayer's tax for such years.
    21    (c) The credit allowable under  this  subdivision  shall  be  deducted
    22  after  the  credit  allowed by subdivision eighteen of this section, but
    23  prior to the deduction of any other credit allowed by this section.
    24    (d) In the case of a taxpayer that has  obtained  a  certification  of
    25  eligibility  pursuant  to chapter six-B of title twenty-two of this code
    26  dated on or after July first, two thousand for a relocation to  eligible
    27  premises  located  within the revitalization area defined in subdivision
    28  (n) of section 22-621 of this  code,  the  credits  allowed  under  this
    29  subdivision,  or  in the case of a taxpayer that has relocated more than
    30  once, the portion of such credits attributed to  such  certification  of
    31  eligibility  pursuant  to paragraph (a) of this subdivision, against the
    32  tax imposed by this chapter for the taxable year of such relocation  and
    33  for  the  four  taxable years immediately succeeding the taxable year of
    34  such relocation, shall be deemed  to  be  overpayments  of  tax  by  the
    35  taxpayer  to  be  credited  or refunded, without interest, in accordance
    36  with the provisions of section 11-677 of this chapter. For such  taxable
    37  years,  such  credits or portions thereof may not be carried over to any
    38  succeeding taxable year; provided, however, that  this  paragraph  shall
    39  not apply to any relocation for which an application for a certification
    40  of  eligibility  was  not  submitted  prior  to July first, two thousand
    41  three, unless the date of such relocation is on or after July first, two
    42  thousand.
    43    (e) Notwithstanding any other provision of  this  subdivision  to  the
    44  contrary, in the case of a taxpayer that has obtained, pursuant to chap-
    45  ter six-B of title twenty-two of this code, a certification of eligibil-
    46  ity  and has received, in a taxable year beginning before January first,
    47  two thousand fifteen, the credit set forth in subdivision  seventeen  of
    48  section  11-604  of this chapter or section 11-643.7 of this chapter for
    49  the relocation of an eligible business, a credit shall be allowed  under
    50  this  subdivision  to  the taxpayer for any taxable year beginning on or
    51  after January first, two thousand fifteen in the same amount and to  the
    52  same  extent  that  a  credit  would have been allowed under subdivision
    53  seventeen of section 11-604 of this chapter or section 11-643.7 of  this
    54  chapter,  as  in effect on December thirty-first, two thousand fourteen,
    55  if such subdivision continued to apply to the taxpayer for such  taxable
    56  year.

        A. 6009                            134
 
     1    17-a. Intentionally omitted.
     2    17-b.  (a) In addition to any other credit allowed by this section, an
     3  eligible business that first enters into a binding contract on or  after
     4  July  first, two thousand five to purchase or lease eligible premises to
     5  which it relocates shall be allowed a one-time credit  against  the  tax
     6  imposed  by  this  subchapter  to  be credited or refunded in the manner
     7  hereinafter provided in this subdivision.  The  amount  of  such  credit
     8  shall be one thousand dollars per full-time employee; provided, however,
     9  that  the  amount  of  such credit shall not exceed the lesser of actual
    10  relocation costs or one hundred thousand dollars.
    11    (b) When used in this subdivision, the following terms shall have  the
    12  following meanings:
    13    (1)  "Eligible  business" means any business subject to tax under this
    14  subchapter that (i) has been conducting substantial business  operations
    15  and engaging primarily in industrial and manufacturing activities at one
    16  or  more  locations  within the city of New York or outside the state of
    17  New York continuously during the  twenty-four  consecutive  full  months
    18  immediately  preceding  relocation,  (ii)  has  leased the premises from
    19  which it relocates continuously during the twenty-four consecutive  full
    20  months immediately preceding relocation, (iii) first enters into a bind-
    21  ing  contract  on  or after July first, two thousand five to purchase or
    22  lease eligible premises to which such business will relocate,  and  (iv)
    23  will  be engaged primarily in industrial and manufacturing activities at
    24  such eligible premises.
    25    (2) "Eligible premises" means  premises  located  entirely  within  an
    26  industrial business zone. For any eligible business, an industrial busi-
    27  ness  zone tax credit shall not be granted with respect to more than one
    28  eligible premises.
    29    (3) "Full-time employee" means (i) one person gainfully employed in an
    30  eligible premises by an eligible business  where  the  number  of  hours
    31  required  to be worked by such person is not less than thirty-five hours
    32  per week; or (ii) two persons gainfully employed in an eligible premises
    33  by an eligible business where the number of hours required to be  worked
    34  by  each  such  person is more than fifteen hours per week but less than
    35  thirty-five hours per week.
    36    (4) "Industrial business zone" means an area within the  city  of  New
    37  York established pursuant to section 22-626 of this code.
    38    (5)  "Industrial business zone tax credit" means a credit, as provided
    39  for in this subdivision, against a tax imposed under this subchapter.
    40    (6) "Industrial and manufacturing activities" means activities involv-
    41  ing the assembly of goods to create a different article, or the process-
    42  ing, fabrication, or packaging of goods.   Industrial and  manufacturing
    43  activities shall not include waste management or utility services.
    44    (7) "Relocation" means the physical relocation of furniture, fixtures,
    45  equipment, machinery and supplies directly to an eligible premises, from
    46  one  or  more  locations of an eligible business, including at least one
    47  location at which such business conducts substantial business operations
    48  and engages primarily in industrial and  manufacturing  activities.  For
    49  purposes  of  this  subdivision, the date of relocation shall be (i) the
    50  date of the completion of the relocation to  the  eligible  premises  or
    51  (ii) ninety days from the commencement of the relocation to the eligible
    52  premises, whichever is earlier.
    53    (8)  "Relocation costs" means costs incurred in the relocation of such
    54  furniture, fixtures, equipment, machinery and supplies,  including,  but
    55  not  limited  to, the cost of dismantling and reassembling equipment and
    56  the cost of floor preparation necessary for the reassembly of the equip-

        A. 6009                            135

     1  ment. Relocation costs shall include only such costs that  are  incurred
     2  during  the  ninety-day period immediately following the commencement of
     3  the relocation to an  eligible  premises.  Relocation  costs  shall  not
     4  include  costs for structural or capital improvements or items purchased
     5  in connection with the relocation.
     6    (c) The credit allowed under this subdivision  for  any  taxable  year
     7  shall  be deemed to be an overpayment of tax by the taxpayer to be cred-
     8  ited or refunded without interest, in accordance with the provisions  of
     9  section 11-677 of this chapter.
    10    (d)  The number of full-time employees for the purposes of calculating
    11  an industrial business tax credit shall be the average number  of  full-
    12  time  employees,  calculated on a weekly basis, employed in the eligible
    13  premises by the eligible business in the  fifty-two  week  period  imme-
    14  diately  following  the earlier of (1) the date of the completion of the
    15  relocation to eligible premises or (2) ninety days from the commencement
    16  of the relocation to the eligible premises.
    17    (e) The credit allowed under this subdivision must  be  taken  by  the
    18  taxpayer  in the taxable year in which such twelve month period selected
    19  by the taxpayer ends.
    20    (f) For the purposes of calculating entire net income in  the  taxable
    21  year  that an industrial business tax credit is allowed, a taxpayer must
    22  add back the amount of the credit allowed under this subdivision, to the
    23  extent of any relocation costs deducted in the current taxable year or a
    24  prior taxable year in calculating federal taxable income.
    25    (g) The credit allowed under this subdivision shall not be granted for
    26  an eligible business for more than one relocation.  Notwithstanding  the
    27  foregoing, an industrial business tax credit shall not be granted if the
    28  eligible  business  receives benefits pursuant to chapter six-B or six-C
    29  of title twenty-two of this code, through a grant  program  administered
    30  by  the  business  relocation assistance corporation, or through the New
    31  York city printers relocation fund grant.
    32    (h) The commissioner of finance is authorized to promulgate rules  and
    33  regulations  and to prescribe forms necessary to effectuate the purposes
    34  of this subdivision.
    35    18. (a) If a corporation is a partner in  an  unincorporated  business
    36  taxable  under chapter five of this title, and is required to include in
    37  entire net income its distributive  share  of  income,  gain,  loss  and
    38  deductions  of,  or  guaranteed payments from, such unincorporated busi-
    39  ness, such corporation shall be allowed a credit against the tax imposed
    40  by this subchapter equal to the lesser  of  the  amounts  determined  in
    41  subparagraphs one and two of this paragraph:
    42    (1)  The  amount determined in this subparagraph is the product of (i)
    43  the sum of (A) the tax imposed by chapter five  of  this  title  on  the
    44  unincorporated  business  for its taxable year ending within or with the
    45  taxable year of the corporation and paid by the unincorporated  business
    46  and  (B) the amount of any credit or credits taken by the unincorporated
    47  business under section 11-503 of this title (except the  credit  allowed
    48  by subdivision (b) of section 11-503 of this title) for its taxable year
    49  ending within or with the taxable year of the corporation, to the extent
    50  that such credits do not reduce such unincorporated business's tax below
    51  zero,  and  (ii)  a fraction, the numerator of which is the net total of
    52  the  corporation's  distributive  share  of  income,  gain,   loss   and
    53  deductions of, and guaranteed payments from, the unincorporated business
    54  for such taxable year, and the denominator of which is the sum, for such
    55  taxable year, of the net total distributive shares of income, gain, loss
    56  and deductions of, and guaranteed payments to, all partners in the unin-

        A. 6009                            136
 
     1  corporated  business  for  whom  or  which such net total (as separately
     2  determined for each partner) is greater than zero.
     3    (2)  The  amount determined in this subparagraph is the product of (i)
     4  the excess of (A) the tax computed under clause (i) of subparagraph  one
     5  of  paragraph  (e) of subdivision one of this section, without allowance
     6  of any credits allowed by this section, over (B) the  tax  so  computed,
     7  determined as if the corporation had no such distributive share or guar-
     8  anteed  payments with respect to the unincorporated business, and (ii) a
     9  fraction, the numerator of which is four and the denominator of which is
    10  eight and eighty-five one hundredths, provided however, in the case of a
    11  taxpayer that is subject to paragraph (j) or (k) of subdivision  one  of
    12  this section, such denominator shall be the rate of tax as determined by
    13  such  paragraph  (j) or (k) for the taxable year and, provided, however,
    14  that the amounts computed in subclauses (A) and (B)  of  clause  (i)  of
    15  this subparagraph shall be computed with the following modifications:
    16    (A)  such  amounts  shall  be computed without taking into account any
    17  carryforward or carryback by the partner of a net operating  loss  or  a
    18  prior net operation loss conversion subtraction;
    19    (B) if, prior to taking into account any distributive share or guaran-
    20  teed payments from any unincorporated business or any net operating loss
    21  carryforward  or carryback, the entire net income of the partner is less
    22  than zero, such entire net income shall be treated as zero; and
    23    (C) if such partner's net total distributive share  of  income,  gain,
    24  loss and deductions of, and guaranteed payments from, any unincorporated
    25  business is less than zero, such net total shall be treated as zero. The
    26  amount determined in this subparagraph shall not be less than zero.
    27    (b)(1)  Notwithstanding  anything  to the contrary in paragraph (a) of
    28  this subdivision, in the case of a corporation that, before the applica-
    29  tion of this subdivision or any other credit allowed by this section, is
    30  liable for the tax on business income under clause (i)  of  subparagraph
    31  one  of  paragraph (e) of subdivision one of this section, the credit or
    32  the sum of the credits that may be taken by such corporation for a taxa-
    33  ble year under this subdivision with respect to an unincorporated  busi-
    34  ness  or  unincorporated  businesses  in which it is a partner shall not
    35  exceed the tax so computed, without allowance of any credits allowed  by
    36  this  section,  multiplied  by a fraction the numerator of which is four
    37  and the denominator of which is  eight  and  eighty-five  one-hundredths
    38  provided however, in the case of a taxpayer that is subject to paragraph
    39  (j) or (k) of subdivision one of this section, such denominator shall be
    40  the rate of tax as determined by such paragraph (j) or (k) for the taxa-
    41  ble  year.  If  the  credit allowed under this subdivision or the sum of
    42  such credits exceeds the product of such  tax  and  such  fraction,  the
    43  amount  of  the  excess may be carried forward, in order, to each of the
    44  seven immediately succeeding taxable years and, to the extent not previ-
    45  ously taken, shall be allowed as a credit in  each  of  such  years.  In
    46  applying the provisions of the preceding sentence, the credit determined
    47  for  the  taxable  year under paragraph (a) of this subdivision shall be
    48  taken before taking any credit carryforward pursuant to  this  paragraph
    49  and  the  credit  carryforward attributable to the earliest taxable year
    50  shall be taken before taking a credit  carryforward  attributable  to  a
    51  subsequent taxable year.
    52    (2) Intentionally omitted.
    53    (2-a)  Notwithstanding  any other provision of this subdivision to the
    54  contrary, in the case of a taxpayer that has received, in a taxable year
    55  beginning before January first, two thousand  fifteen,  the  credit  set
    56  forth  in  subdivision  eighteen  of  section  11-604 of this chapter or

        A. 6009                            137
 
     1  section 11-643.8 of this chapter for a tax paid under  chapter  five  of
     2  this  title  in a taxable year beginning before January first, two thou-
     3  sand fifteen, the taxpayer may carry forward the unused portion of  such
     4  credit  under this subdivision to any taxable year beginning on or after
     5  January first, two thousand fifteen in the same amount and to  the  same
     6  extent,  including  the same limitations, that the credit, or the unused
     7  portion thereof, would have been allowed to  be  carried  forward  under
     8  subparagraph  one  of  paragraph  (b) of subdivision eighteen of section
     9  11-604 of this chapter or paragraph one of subdivision  (b)  of  section
    10  11-643.8  of  this  chapter,  as in effect on December thirty-first, two
    11  thousand fourteen, if such subdivision continued to apply to the taxpay-
    12  er for such taxable year.
    13    (3) No credit allowed under this subdivision may be taken in a taxable
    14  year by a taxpayer that, in the absence of such credit, would be  liable
    15  for  the tax computed on the basis of business capital under clause (ii)
    16  of subparagraph one of paragraph (e) of subdivision one of this  section
    17  or the fixed-dollar minimum tax under clause (iv) of subparagraph one of
    18  paragraph (e) of subdivision one of this section.
    19    (c)  For  corporations that file a report on a combined basis pursuant
    20  to section 11-654.3 of this  subchapter,  the  credit  allowed  by  this
    21  subdivision  shall be computed as if the combined group were the partner
    22  in each unincorporated business from which any of the  members  of  such
    23  group  had a distributive share or guaranteed payments, provided, howev-
    24  er, if more than one member of the combined group is a  partner  in  the
    25  same  unincorporated  business, for purposes of the calculation required
    26  in subparagraph one of paragraph (a) of this subdivision, the  numerator
    27  of  the fraction described in clause (ii) of such subparagraph one shall
    28  be the sum of the net total distributive shares of  income,  gain,  loss
    29  and  deductions  of,  and  guaranteed  payments from, the unincorporated
    30  business of all of the partners of the  unincorporated  business  within
    31  the  combined  group  for which such net total (as separately determined
    32  for each partner) is greater than zero,  and  the  denominator  of  such
    33  fraction  shall  be  the  sum  of  the  net total distributive shares of
    34  income, gain, loss and deductions of, and guaranteed payments from,  the
    35  unincorporated  business  of all partners in the unincorporated business
    36  for whom or which such net total  (as  separately  determined  for  each
    37  partner) is greater than zero.
    38    (d) Notwithstanding any other provision of this subchapter, the credit
    39  allowable  under  this subdivision shall be taken prior to the taking of
    40  any other credit allowed by  this  section.  Notwithstanding  any  other
    41  provision  of this subchapter, the application of this subdivision shall
    42  not change the basis on which the taxpayer's tax is computed under para-
    43  graph (e) of subdivision one of this section.
    44    19. Lower Manhattan relocation and employment assistance  credit.  (a)
    45  In addition to any other credit allowed by this section, a taxpayer that
    46  has obtained the certifications required by chapter six-C of title twen-
    47  ty-two of this code shall be allowed a credit against the tax imposed by
    48  this subchapter. The amount of the credit shall be the amount determined
    49  by  multiplying  three thousand dollars by the number of eligible aggre-
    50  gate employment shares maintained by the  taxpayer  during  the  taxable
    51  year  with  respect to eligible premises to which the taxpayer has relo-
    52  cated; provided, however, that no credit shall be allowed for the  relo-
    53  cation of any retail activity or hotel services; provided, further, that
    54  no  credit  shall be allowed under this subdivision to any taxpayer that
    55  has elected pursuant to subdivision (d) of section 22-624 of  this  code
    56  to  take  such credit against a gross receipts tax imposed under chapter

        A. 6009                            138
 
     1  eleven of this title.  For  purposes  of  this  subdivision,  the  terms
     2  "eligible aggregate employment shares," "eligible premises," "relocate,"
     3  "retail  activity" and "hotel services" shall have the meanings ascribed
     4  by section 22-623 of this code.
     5    (b) The credit allowed under this subdivision with respect to eligible
     6  aggregate employment shares maintained with respect to eligible premises
     7  to  which  the  taxpayer  has relocated shall be allowed for the taxable
     8  year of the relocation and for any  of  the  twelve  succeeding  taxable
     9  years  during  which eligible aggregate employment shares are maintained
    10  with respect to eligible premises; provided that the credit allowed  for
    11  the  twelfth  succeeding taxable year shall be calculated by multiplying
    12  the number of  eligible  aggregate  employment  shares  maintained  with
    13  respect  to  eligible premises in the twelfth succeeding taxable year by
    14  the lesser of one and a fraction the numerator of which is  such  number
    15  of  days  in  the taxable year of relocation less the number of days the
    16  taxpayer maintained employment shares in eligible premises in the  taxa-
    17  ble  year  of  relocation  and the denominator of which is the number of
    18  days in such twelfth taxable year during which such  eligible  aggregate
    19  employment shares are maintained with respect to such premises.
    20    (c)  Except  as  provided in paragraph (d) of this subdivision, if the
    21  amount of the credit allowable under this subdivision  for  any  taxable
    22  year  exceeds  the  tax imposed for such year, the excess may be carried
    23  over, in order, to the five immediately succeeding taxable years and, to
    24  the extent not previously deductible, may be deducted from  the  taxpay-
    25  er's tax for such years.
    26    (d)  The  credits  allowed  under  this  subdivision,  against the tax
    27  imposed by this chapter for the taxable year of the relocation  and  for
    28  the  four  taxable years immediately succeeding the taxable year of such
    29  relocation, shall be deemed to be overpayments of tax by the taxpayer to
    30  be credited or  refunded,  without  interest,  in  accordance  with  the
    31  provisions  of  section  11-677 of this chapter. For such taxable years,
    32  such credits or portions thereof may not be carried over to any succeed-
    33  ing taxable year.
    34    (e) The credit allowable under  this  subdivision  shall  be  deducted
    35  after the credits allowed by subdivisions seventeen and eighteen of this
    36  section,  but prior to the deduction of any other credit allowed by this
    37  section.
    38    (f) Notwithstanding any other provision of  this  subdivision  to  the
    39  contrary, in the case of a taxpayer that has obtained, pursuant to chap-
    40  ter six-C of title twenty-two of this code, a certification of eligibil-
    41  ity  and has received, in a taxable year beginning before January first,
    42  two thousand fifteen, the credit set forth in  subdivision  nineteen  of
    43  section  11-604  of this chapter or section 11-643.9 of this chapter for
    44  the relocation of an eligible business, a credit shall be allowed  under
    45  this  subdivision  to  the taxpayer for any taxable year beginning on or
    46  after January first, two thousand fifteen in the same amount and to  the
    47  same  extent  that  a  credit  would have been allowed under subdivision
    48  nineteen of section 11-604 of this chapter or section 11-643.9  of  this
    49  chapter,  as  in effect on December thirty-first, two thousand fourteen,
    50  if such subdivision continued to apply to the taxpayer for such  taxable
    51  year.
    52    20. Intentionally omitted.
    53    21.  Biotechnology  credit.  (a)  (1)  A  taxpayer that is a qualified
    54  emerging technology company, engages in biotechnologies, and  meets  the
    55  eligibility  requirements of this subdivision, shall be allowed a credit
    56  against the tax imposed by this subchapter. The amount of  credit  shall

        A. 6009                            139
 
     1  be  equal  to  the  sum of the amounts specified in subparagraphs three,
     2  four and five of this paragraph, subject to the limitations in  subpara-
     3  graph seven of this paragraph and paragraph (b) of this subdivision. For
     4  the  purposes of this subdivision, "qualified emerging technology compa-
     5  ny" shall mean a company located in the city: (i) whose primary products
     6  or services are classified as  emerging  technologies  and  whose  total
     7  annual  product sales are ten million dollars or less; or (ii) a company
     8  that has research and development activities in the city and whose ratio
     9  of research and development funds to net sales  equals  or  exceeds  the
    10  average ratio for all surveyed companies classified as determined by the
    11  National  Science  Foundation  in the most recent published results from
    12  its Survey of Industry  Research  and  Development,  or  any  comparable
    13  successor  survey  as determined by the department of finance, and whose
    14  total annual product sales are ten million  dollars  or  less.  For  the
    15  purposes of this subdivision, the definition of research and development
    16  funds  shall be the same as that used by the National Science Foundation
    17  in the aforementioned survey. For  the  purposes  of  this  subdivision,
    18  "biotechnologies"  shall  mean the technologies involving the scientific
    19  manipulation of living organisms, especially at the molecular and/or the
    20  sub-molecular genetic level, to produce products conducive to  improving
    21  the  lives and health of plants, animals, and humans; and the associated
    22  scientific  research,  pharmacological,  mechanical,  and  computational
    23  applications  and services connected with these improvements. Activities
    24  included with such applications and services shall include, but  not  be
    25  limited to, alternative mRNA splicing, DNA sequence amplification, anti-
    26  genetic  switching bioaugmentation, bioenrichment, bioremediation, chro-
    27  mosome walking, cytogenetic engineering, DNA diagnosis,  fingerprinting,
    28  and  sequencing,  electroporation,  gene translocation, genetic mapping,
    29  site-directed mutagenesis, bio-transduction, bio-mechanical  and  bio-e-
    30  lectrical engineering, and bio-informatics.
    31    (2) An eligible taxpayer shall (i) have no more than one hundred full-
    32  time  employees,  of which at least seventy-five percent are employed in
    33  the city, (ii) have a ratio of research and  development  funds  to  net
    34  sales,  as referred to in section thirty-one hundred two-e of the public
    35  authorities law, which equals or exceeds six percent during the calendar
    36  year ending with or within the taxable year  for  which  the  credit  is
    37  claimed, and (iii) have gross revenues, along with the gross revenues of
    38  its  "affiliates"  and  "related  members"  not exceeding twenty million
    39  dollars for the calendar year immediately preceding  the  calendar  year
    40  ending  with or within the taxable year for which the credit is claimed.
    41  For the purposes of this  subdivision,  "affiliates"  shall  mean  those
    42  corporations  that  are members of the same affiliated group (as defined
    43  in section fifteen hundred four of the internal  revenue  code)  as  the
    44  taxpayer.  For  the  purposes  of  this  subdivision,  the term "related
    45  members" shall mean a person, corporation, or other entity, including an
    46  entity that is treated as a partnership or  other  pass-through  vehicle
    47  for  purposes  of  federal taxation, whether such person, corporation or
    48  entity is a taxpayer or not, where one such person, corporation or enti-
    49  ty, or set of related persons, corporations  or  entities,  directly  or
    50  indirectly  owns  or  controls a controlling interest in another entity.
    51  Such entity or entities may include all taxpayers under  chapters  five,
    52  eleven  and  seventeen  of  this title, and subchapters two and three of
    53  this chapter. A controlling interest shall mean, in the case of a corpo-
    54  ration, either thirty percent or more of the total combined voting power
    55  of all classes of stock of such corporation, or thirty percent  or  more
    56  of  the  capital, profits or beneficial interest in such voting stock of

        A. 6009                            140
 
     1  such corporation; and in the case of a partnership,  association,  trust
     2  or other entity, thirty percent or more of the capital, profits or bene-
     3  ficial interest in such partnership, association, trust or other entity.
     4    (3)  An  eligible  taxpayer shall be allowed a credit for eighteen per
     5  centum of the cost or other basis for federal  income  tax  purposes  of
     6  research  and  development  property that is acquired by the taxpayer by
     7  purchase as defined in subsection (d) of section  one  hundred  seventy-
     8  nine  of  the  internal  revenue  code  and placed in service during the
     9  calendar year that ends with or within the taxable year  for  which  the
    10  credit  is  claimed.   Provided, however, for the purposes of this para-
    11  graph only, an eligible taxpayer shall be  allowed  a  credit  for  such
    12  percentage  of  the  (i)  cost  or  other  basis  for federal income tax
    13  purposes for property used in the testing or inspection of materials and
    14  products, (ii) the costs or expenses associated with quality control  of
    15  the  research and development, (iii) fees for use of sophisticated tech-
    16  nology facilities and processes, and (iv) fees  for  the  production  or
    17  eventual  commercial  distribution  of  materials and products resulting
    18  from the activities of an eligible taxpayer as long as  such  activities
    19  fall  under  activities relating to biotechnologies. The costs, expenses
    20  and other amounts for which a credit is allowed and claimed  under  this
    21  paragraph  shall  not  be  used  in  the calculation of any other credit
    22  allowed under this subchapter. For the  purposes  of  this  subdivision,
    23  "research and development property" shall mean property that is used for
    24  purposes  of  research and development in the experimental or laboratory
    25  sense. Such purposes shall not be deemed to include the ordinary testing
    26  or inspection of materials or products for quality  control,  efficiency
    27  surveys,  management studies, consumer surveys, advertising, promotions,
    28  or research in connection with literary, historical or similar projects.
    29    (4) An eligible taxpayer shall be allowed a credit for nine per centum
    30  of qualified research expenses paid or incurred by the taxpayer  in  the
    31  calendar  year  that  ends with or within the taxable year for which the
    32  credit is claimed. For the  purposes  of  this  subdivision,  "qualified
    33  research expenses" shall mean expenses associated with in-house research
    34  and  processes,  and  costs  associated  with  the  dissemination of the
    35  results of the products that directly  result  from  such  research  and
    36  development  activities;  provided,  however,  that such costs shall not
    37  include advertising or promotion through media. In addition, costs asso-
    38  ciated with the preparation of patent applications,  patent  application
    39  filing fees, patent research fees, patent examinations fees, patent post
    40  allowance  fees, patent maintenance fees, and grant application expenses
    41  and fees shall qualify as qualified research expenses. In no case  shall
    42  the  credit  allowed under this subparagraph apply to expenses for liti-
    43  gation or  the  challenge  of  another  entity's  intellectual  property
    44  rights, or for contract expenses involving outside paid consultants.
    45    (5) An eligible taxpayer shall be allowed a credit for qualified high-
    46  technology  training expenditures as described in this subparagraph paid
    47  or incurred by the taxpayer during the calendar year that ends  with  or
    48  within the taxable year for which the credit is claimed.
    49    (i)  The amount of credit shall be one hundred percent of the training
    50  expenses described in clause (iii) of this subparagraph,  subject  to  a
    51  limitation of no more than four thousand dollars per employee per calen-
    52  dar year for such training expenses.
    53    (ii)  Qualified  high-technology  training  shall  include a course or
    54  courses taken and satisfactorily completed by an employee of the taxpay-
    55  er at an accredited, degree granting post-secondary college or universi-
    56  ty in the city that (A) directly relates  to  biotechnology  activities,

        A. 6009                            141

     1  and  (B)  is intended to upgrade, retrain or improve the productivity or
     2  theoretical awareness of  the  employee.  Such  course  or  courses  may
     3  include,  but  are  not  limited to, instruction or research relating to
     4  techniques,  meta,  macro,  or  micro-theoretical or practical knowledge
     5  bases or frontiers, or ethical concerns related to such activities. Such
     6  course or courses shall  not  include  classes  in  the  disciplines  of
     7  management,  accounting  or the law or any class designed to fulfill the
     8  discipline specific requirements of a degree program at  the  associate,
     9  baccalaureate,  graduate  or  professional  level  of these disciplines.
    10  Satisfactory completion of a course or courses shall  mean  the  earning
    11  and  granting  of  credit  or  equivalent unit, with the attainment of a
    12  grade of "B" or higher in a graduate level course or courses, a grade of
    13  "C" or higher in an undergraduate level course or courses, or a  similar
    14  measure  of  competency for a course that is not measured according to a
    15  standard grade formula.
    16    (iii) Qualified high-technology training  expenditures  shall  include
    17  expenses for tuition and mandatory fees, software required by the insti-
    18  tution,  fees for textbooks or other literature required by the institu-
    19  tion offering the course or courses, minus applicable  scholarships  and
    20  tuition  or fee waivers not granted by the taxpayer or any affiliates of
    21  the taxpayer, that are paid or reimbursed  by  the  taxpayer.  Qualified
    22  high-technology  expenditures  do  not  include room and board, computer
    23  hardware or software not specifically assigned for such course or cours-
    24  es, late-charges, fines or membership dues and  similar  expenses.  Such
    25  qualified  expenditures shall not be eligible for the credit provided by
    26  this section unless the employee for whom the expenditures are disbursed
    27  is continuously employed by the taxpayer in a full-time, full-year posi-
    28  tion primarily located at a qualified site during  the  period  of  such
    29  coursework  and  lasting  through at least one hundred eighty days after
    30  the satisfactory completion of  the  qualifying  course-work.  Qualified
    31  high-technology  training  expenditures  shall  not include expenses for
    32  in-house or shared training outside of a city higher education  institu-
    33  tion  or  the  use  of  consultants  outside of credit granting courses,
    34  whether such consultants function inside of such higher education insti-
    35  tution or not.
    36    (iv) If a taxpayer  relocates  from  an  academic  business  incubator
    37  facility  partnered with an accredited post-secondary education institu-
    38  tion located within the city, which provides space and business  support
    39  services  to  taxpayers,  to  another  site, the credit provided in this
    40  subdivision shall be allowed for all expenditures referenced  in  clause
    41  (iii)  of this subparagraph paid or incurred in the two preceding calen-
    42  dar years that the taxpayer was located in such  an  incubator  facility
    43  for  employees  of  the  taxpayer  who also relocate from said incubator
    44  facility to such city site and are employed and primarily located by the
    45  taxpayer in the city.   Such expenditures in  the  two  preceding  years
    46  shall  be  added  to  the  amounts  otherwise  qualifying for the credit
    47  provided by this subdivision that were paid or incurred in the  calendar
    48  year that the taxpayer relocates from such a facility. Such expenditures
    49  shall include expenses paid for an eligible employee who is a full-time,
    50  full-year  employee  of  said taxpayer during the calendar year that the
    51  taxpayer relocated from an incubator facility notwithstanding  (A)  that
    52  such employee was employed full or part-time as an officer, staff-person
    53  or  paid  intern  of the taxpayer when such taxpayer was located at such
    54  incubator facility or  (B)  that  such  employee  was  not  continuously
    55  employed when such taxpayer was located at the incubator facility during
    56  the  one  hundred  eighty day period referred to in clause (iii) of this

        A. 6009                            142
 
     1  subparagraph, provided such employee received wages or equivalent income
     2  for at least seven hundred fifty  hours  during  any  twenty-four  month
     3  period  when  the  taxpayer  was located at the incubator facility. Such
     4  expenditures  shall  include  payments  made  to such employee after the
     5  taxpayer has relocated from the incubator facility for qualified expend-
     6  itures if such payments are made to reimburse an employee  for  expendi-
     7  tures  paid  by the employee during such two preceding years. The credit
     8  provided under this paragraph shall be allowed in any taxable year  that
     9  the taxpayer qualifies as an eligible taxpayer.
    10    (v)  For  purposes  of this subdivision the term "academic year" shall
    11  mean the annual period  of  sessions  of  a  post-secondary  college  or
    12  university.
    13    (vi) For the purposes of this subdivision the term "academic incubator
    14  facility"  shall  mean  a  facility  providing low-cost space, technical
    15  assistance, support services and  educational  opportunities,  including
    16  but  not  limited  to  central  services  provided by the manager of the
    17  facility to the tenants of the facility, to an  entity  located  in  the
    18  city.  Such  entity's  primary  activity must be in biotechnologies, and
    19  such entity must be in the formative stage of development. The  academic
    20  incubator  facility  and  the  entity  must  act  in partnership with an
    21  accredited post-secondary college or university located in the city.  An
    22  academic  incubator facility's mission shall be to promote job creation,
    23  entrepreneurship, technology transfer, and provide support  services  to
    24  incubator  tenants,  including,  but  not limited to, business planning,
    25  management  assistance,  financial-packaging,  linkages   to   financing
    26  services, and coordinating with other sources of assistance.
    27    (6)  An eligible taxpayer may claim credits under this subdivision for
    28  three consecutive years. In no case shall the  credit  allowed  by  this
    29  subdivision  to a taxpayer exceed two hundred fifty thousand dollars per
    30  calendar year for eligible expenditures made during such calendar year.
    31    (7) The credit allowed under this subdivision  for  any  taxable  year
    32  shall  not  reduce  the  tax  due  for such year to less than the amount
    33  prescribed in clause (iv) of subparagraph one of paragraph (e) of subdi-
    34  vision one of this section. Provided, however, if the amount  of  credit
    35  allowed  under  this subdivision for any taxable year reduces the tax to
    36  such amount, any amount of credit not deductible in  such  taxable  year
    37  shall  be treated as an overpayment of tax to be credited or refunded in
    38  accordance with the  provisions  of  section  11-677  of  this  chapter;
    39  provided, however, that notwithstanding the provisions of section 11-679
    40  of this chapter, no interest shall be paid thereon.
    41    (8)  The  credit  allowed under this subdivision shall only be allowed
    42  for taxable years beginning before January first, two thousand sixteen.
    43    (b) (1) The percentage of the credit allowed to a taxpayer under  this
    44  subdivision in any calendar year shall be:
    45    (i)  If  the  average  number  of  individuals employed full time by a
    46  taxpayer in the city during the calendar year that ends with  or  within
    47  the taxable year for which the credit is claimed is at least one hundred
    48  five  percent  of  the  taxpayer's  base  year  employment,  one hundred
    49  percent, except that in no case shall  the  credit  allowed  under  this
    50  clause  exceed  two  hundred  fifty  thousand dollars per calendar year.
    51  Provided, however, the increase in base year employment shall not  apply
    52  to  a  taxpayer  allowed  a  credit under this subdivision that was, (A)
    53  located outside of the city, (B) not doing business, or (C) did not have
    54  any employees, in the year preceding the first year that the  credit  is
    55  claimed.  Any such taxpayer shall be eligible for one hundred percent of
    56  the credit for the first calendar year that  ends  with  or  within  the

        A. 6009                            143

     1  taxable year for which the credit is claimed, provided that such taxpay-
     2  er  locates  in  the  city,  begins  doing business in the city or hires
     3  employees in the city during such calendar year and is otherwise  eligi-
     4  ble for the credit pursuant to the provisions of this subdivision.
     5    (ii)  If  the  average  number  of individuals employed full time by a
     6  taxpayer in the city during the calendar year that ends with  or  within
     7  the  taxable  year  for  which  the  credit  is claimed is less than one
     8  hundred five percent of  the  taxpayer's  base  year  employment,  fifty
     9  percent,  except  that  in  no  case shall the credit allowed under this
    10  clause exceed one hundred  twenty-five  thousand  dollars  per  calendar
    11  year.  In  the case of an entity located in the city receiving space and
    12  business support services by an  academic  incubator  facility,  if  the
    13  average  number  of individuals employed full time by such entity in the
    14  city during the calendar year in which the  credit  allowed  under  this
    15  subdivision  is  claimed  is  less  than one hundred five percent of the
    16  taxpayer's base year employment, the credit shall be zero.
    17    (2) For the purposes of this subdivision, "base year employment" means
    18  the average number of individuals employed full-time by the taxpayer  in
    19  the city in the year preceding the first calendar year that ends with or
    20  within the taxable year for which the credit is claimed.
    21    (3)  For  the purposes of this subdivision, average number of individ-
    22  uals employed full-time shall be computed by adding the number  of  such
    23  individuals  employed  by the taxpayer at the end of each quarter during
    24  each calendar year or other applicable period and dividing  the  sum  so
    25  obtained  by  the number of such quarters occurring within such calendar
    26  year or other applicable period.
    27    (4) Notwithstanding anything contained in this section to the  contra-
    28  ry, the credit provided by this subdivision shall be allowed against the
    29  taxes authorized by this chapter for the taxable year after reduction by
    30  all other credits permitted by this chapter.
    31    (c)  Notwithstanding  any  other  provision of this subdivision to the
    32  contrary, in the case of a taxpayer that has received, in a taxable year
    33  beginning before January first, two thousand  fifteen,  the  credit  set
    34  forth in subdivision twenty-one of section 11-604 of this chapter for an
    35  eligible  acquisition  of  property  and/or  expense paid or incurred, a
    36  credit shall be allowed to the taxpayer under this subdivision  for  any
    37  tax  year  beginning  on or after January first, two thousand fifteen in
    38  the same amount and to the same extent that a  credit  would  have  been
    39  allowed  under subdivision twenty-one of section 11-604 of this chapter,
    40  as in effect on December thirty-first, two thousand  fourteen,  if  such
    41  subdivision continued to apply to the taxpayer for such taxable year.
    42    §  11-654.1  Net  operating  loss. 1. In computing the business income
    43  subject to tax, taxpayers shall be allowed both a  prior  net  operating
    44  loss  conversion subtraction under subdivision two of this section and a
    45  net operating loss deduction under subdivision three  of  this  section.
    46  The  prior  net  operating  loss  conversion  subtraction computed under
    47  subdivision two of this section shall be applied against business income
    48  before the net operating loss deduction computed under subdivision three
    49  of this section.
    50    2. Prior net operating loss conversion subtraction.  (a)  Definitions.
    51  (1)  "Base year" means the last taxable year beginning on or after Janu-
    52  ary first, two thousand fourteen and before January first, two  thousand
    53  fifteen.
    54    (2)  "Unabsorbed  net  operating loss" means the unabsorbed portion of
    55  net operating loss as calculated  under  paragraph  (f)  of  subdivision
    56  eight  of section 11-602 of this chapter or subdivision (k-1) of section

        A. 6009                            144
 
     1  11-641 of this chapter as such sections were in effect on December thir-
     2  ty-first, two thousand fourteen, that was  not  deductible  in  previous
     3  taxable years and was eligible for carryover on the last day of the base
     4  year  subject  to  the  limitations  for  deduction under such sections,
     5  including any net operating loss sustained by the  taxpayer  during  the
     6  base year.
     7    (3)  "Base year BAP" means the taxpayer's business allocation percent-
     8  age as calculated under paragraph (a) of subdivision  three  of  section
     9  11-604  of  this chapter for the base year, or the taxpayer's allocation
    10  percentage as calculated  under  section  11-642  of  this  chapter  for
    11  purposes  of  calculating  entire  net income for the base year, as such
    12  sections were in effect on December thirty-first, two thousand fourteen.
    13    (4) "Base year tax rate" means the taxpayer's tax rate  for  the  base
    14  year as calculated under subdivision one of section 11-604 of this chap-
    15  ter  or  section  11-643.5  of  this chapter, as such provisions were in
    16  effect on December thirty-first, two thousand fourteen.
    17    (b) The prior net  operating  loss  conversion  subtraction  shall  be
    18  calculated as follows:
    19    (1) The taxpayer shall first calculate the tax value of its unabsorbed
    20  net  operating loss for the base year. The value is equal to the product
    21  of (i) the amount of the taxpayer's unabsorbed net operating loss,  (ii)
    22  the  taxpayer's  base  year  BAP, and (iii) the taxpayer's base year tax
    23  rate.
    24    (2) The product determined under subparagraph one  of  this  paragraph
    25  shall  then  be  divided  by  eight  and  eighty-five one hundredths per
    26  centum. This result shall equal the taxpayer's prior net operating  loss
    27  conversion subtraction pool.
    28    (3) The taxpayer's prior net operating loss conversion subtraction for
    29  the  taxable  year shall equal one-tenth of its prior net operating loss
    30  conversion subtraction pool, plus any amount of unused prior net operat-
    31  ing loss conversion subtraction from preceding taxable years.
    32    (4) In lieu of the prior net  operating  loss  conversion  subtraction
    33  described  in  subparagraph  three of this paragraph, if the taxpayer so
    34  elects, the taxpayer's prior net operating loss  conversion  subtraction
    35  for  its taxable years beginning on or after January first, two thousand
    36  fifteen and before January first, two thousand seventeen shall equal, in
    37  each year, not more than  one-half  of  its  prior  net  operating  loss
    38  conversion  subtraction pool until the pool is exhausted. If the pool is
    39  not exhausted at the end of such time period, the remainder of the  pool
    40  shall  be  forfeited. The taxpayer shall make such election on its first
    41  return for the tax year beginning on or after January first,  two  thou-
    42  sand  fifteen  and before January first, two thousand sixteen by the due
    43  date for such return (determined with regard to extensions).
    44    (c) (1) Where a taxpayer was  properly  included  or  required  to  be
    45  included  in a combined report for the base year pursuant to subdivision
    46  four of section 11-605 of this chapter or a combined return for the base
    47  year under subdivision (f) of section 11-646 of this  chapter,  as  such
    48  sections were in effect on December thirty-first, two thousand fourteen,
    49  and  the members of the combined group for the base year are the same as
    50  the members of the combined  group  for  the  taxable  year  immediately
    51  succeeding  the  base year, the combined group shall calculate its prior
    52  net operating  loss  conversion  subtraction  pool  using  the  combined
    53  group's  total  unabsorbed  net  operating loss, base year BAP, and base
    54  year tax rate.
    55    (2) If a combined group includes additional  members  in  the  taxable
    56  year  immediately succeeding the base year that were not included in the

        A. 6009                            145
 
     1  combined group during the base year, each base year combined  group  and
     2  each taxpayer that filed separately for the base year but is included in
     3  the  combined  group  in the taxable year succeeding the base year shall
     4  calculate  its prior net operating loss conversion subtraction pool, and
     5  the sum of the pools shall be the  combined  prior  net  operating  loss
     6  conversion subtraction pool of the combined group.
     7    (3)  If  a taxpayer was properly included in a combined report for the
     8  base year and files a separate report for  a  subsequent  taxable  year,
     9  then  the  amount  of  remaining  prior  net  operating  loss conversion
    10  subtraction allowed to the taxpayer filing such separate report shall be
    11  proportionate to the amount that such taxpayer contributed to the  prior
    12  net  operating loss conversion subtraction pool on a combined basis, and
    13  the remaining prior net operating loss conversion subtraction allowed to
    14  the remaining members of the combined group shall be reduced  according-
    15  ly.
    16    (4)  If  a  taxpayer  filed a separate report for the base year and is
    17  properly included in a combined report for a  subsequent  taxable  year,
    18  then  the  prior  net  operating loss conversion subtraction pool of the
    19  combined group shall be increased by the amount of the  remaining  prior
    20  net operating loss conversion subtraction allowed to the taxpayer at the
    21  time the taxpayer is properly included in the combined group.
    22    (d) The prior net operating loss conversion subtraction may be used to
    23  reduce  the taxpayer's tax on allocated business income to the higher of
    24  the tax on capital under clause  (ii) of subparagraph one  of  paragraph
    25  (e) of subdivision one of section 11-654 of this subchapter or the fixed
    26  dollar minimum under clause (iv) of subparagraph one of paragraph (e) of
    27  subdivision one of section 11-654 of this subchapter. Unless the taxpay-
    28  er  has made the election provided for in subparagraph four of paragraph
    29  (b) of this subdivision, any amount of unused prior net  operating  loss
    30  conversion subtraction shall be carried forward to a subsequent tax year
    31  or  subsequent  tax  years until the prior net operating loss conversion
    32  subtraction pool is exhausted, but for no  longer  than  twenty  taxable
    33  years or not after the taxable year beginning on or after January first,
    34  two  thousand thirty-five but before January first, two thousand thirty-
    35  six, whichever comes first. Such amount carried  forward  shall  not  be
    36  subject to the one-tenth limitation for the subsequent tax year or years
    37  under  subparagraph three of paragraph (b) of this subdivision. However,
    38  if the taxpayer elects to compute its prior net operating  loss  conver-
    39  sion  subtraction pursuant to subparagraph four of paragraph (b) of this
    40  subdivision, the taxpayer shall not carry forward any unused  amount  of
    41  such  prior  net  operating  loss conversion subtraction to any tax year
    42  beginning on or after January first, two thousand seventeen.
    43    3. In computing business income, a net operating loss deduction  shall
    44  be  allowed.  A  net operating loss deduction shall be the amount of net
    45  operating loss or losses from one or more taxable years that are carried
    46  forward or carried back to a particular taxable year.  A  net  operating
    47  loss shall be the amount of a business loss incurred in a particular tax
    48  year  multiplied  by the business allocation percentage for that year as
    49  determined under subdivision three of section 11-654 of this subchapter.
    50  The maximum net operating loss deduction that is allowed  in  a  taxable
    51  year  shall  be  the amount that reduces the taxpayer's tax on allocated
    52  business income to the higher of the tax on capital or the fixed  dollar
    53  minimum amount. Such net operating loss deduction and net operating loss
    54  shall be determined in accordance with the following:
    55    (a)  Such  net  operating  loss  deduction shall not be limited to the
    56  amount allowed under section one hundred  seventy-two  of  the  internal

        A. 6009                            146
 
     1  revenue  code or the amount that would have been allowed if the taxpayer
     2  did not have an election under subchapter S of chapter one of the inter-
     3  nal revenue code in effect for the applicable tax year.
     4    (b)  Such net operating loss deduction shall not include any net oper-
     5  ating loss incurred during any taxable year beginning prior  to  January
     6  first,  two  thousand  fifteen,  or during any taxable year in which the
     7  taxpayer was not subject to the tax imposed by this subchapter.
     8    (c) A taxpayer that files as part of a federal consolidated return but
     9  on a separate basis for purposes of this subchapter  shall  compute  its
    10  deduction  and loss as if it were filing on a separate basis for federal
    11  income tax purposes.
    12    (d) A net operating loss may  be  carried  back  three  taxable  years
    13  preceding  the  taxable  year  of  the  loss  except that no loss may be
    14  carried back to a taxable year beginning before January first, two thou-
    15  sand fifteen. The loss first shall be carried to  the  earliest  of  the
    16  three taxable years preceding the taxable year of the loss. If it is not
    17  entirely  used  in  that year, it shall be carried to the second taxable
    18  year preceding the taxable year of the loss, and  any  remaining  amount
    19  shall  be  carried to the taxable year immediately preceding the taxable
    20  year of the loss. Any unused  amount  of  loss  then  remaining  may  be
    21  carried  forward for as many as twenty taxable years following the taxa-
    22  ble year of the loss. Losses carried forward are carried  forward  first
    23  to  the taxable year immediately following the taxable year of the loss,
    24  then to the second taxable year following the taxable year of the  loss,
    25  and  then to the next immediately subsequent taxable year or years until
    26  the loss is used up or the twentieth taxable  year  following  the  loss
    27  year, whichever comes first.
    28    (e)  Such net operating loss deduction shall not include any net oper-
    29  ating loss incurred during any year commencing after January first,  two
    30  thousand fifteen if the taxpayer was subject to tax under subchapter two
    31  or  three  of  this  chapter  in  that year; provided, however, any year
    32  commencing after January first, two thousand fifteen that  the  taxpayer
    33  was subject to tax under subchapter two or three of this chapter in that
    34  year  must  be treated as a taxable year for purposes of determining the
    35  number of taxable years to which a net operating  loss  may  be  carried
    36  forward.
    37    (f)  Where  there  are  two or more allocated net operating losses, or
    38  portions thereof, carried back or carried forward to be deducted in  one
    39  particular  tax  year from allocated business income, the earliest allo-
    40  cated loss incurred must be applied first.
    41    (g) A taxpayer may elect to waive the  entire  carryback  period  with
    42  respect  to  a  net  operating  loss.  Such election must be made on the
    43  taxpayer's original timely  filed  return  (determined  with  regard  to
    44  extensions) for the taxable year of the net operating loss for which the
    45  election  is  to  be  in  effect. Once an election is made for a taxable
    46  year, it shall be irrevocable for that taxable year. A separate election
    47  must be made for each taxable year of the loss. This election applies to
    48  all members of a combined group.
    49    § 11-654.2 Receipts apportionment. 1. The percentage  of  receipts  of
    50  the  taxpayer  to  be allocated to the city for purposes of subparagraph
    51  two of paragraph (a) of subdivision three  of  section  11-654  of  this
    52  subchapter  shall  be equal to the receipts fraction determined pursuant
    53  to this section. The receipts fraction  is  a  fraction,  determined  by
    54  including  only  those  receipts, net income, net gains, and other items
    55  described in this section that are included in the  computation  of  the
    56  taxpayer's  business  income (determined without regard to the modifica-

        A. 6009                            147
 
     1  tion provided in subparagraph fourteen of paragraph (a)  of  subdivision
     2  eight  of  section  11-652 of this subchapter) for the taxable year. The
     3  numerator of the receipts fraction shall be equal to the sum of all  the
     4  amounts  required  to  be  included  in  the  numerator  pursuant to the
     5  provisions of this section and the denominator of the receipts  fraction
     6  shall  be equal to the sum of all the amounts required to be included in
     7  the denominator pursuant to the provisions of this section.
     8    2. (a) Receipts from sales of tangible personal property  where  ship-
     9  ments are made to points within the city or the destination of the prop-
    10  erty  is  a  point within the city shall be included in the numerator of
    11  the receipts fraction. Receipts from sales of tangible personal property
    12  where shipments are made to points within and without the  city  or  the
    13  destination  is  within  and  without  the city shall be included in the
    14  denominator of the receipts fraction.
    15    (b) Receipts from sales of electricity delivered to points within  the
    16  city  shall  be  included  in  the  numerator  of the receipts fraction.
    17  Receipts from sales of electricity delivered to points within and  with-
    18  out  the city shall be included in the denominator of the receipts frac-
    19  tion.
    20    (c) Receipts from sales of tangible personal property and  electricity
    21  that  are  traded  as  commodities as the term "commodity" is defined in
    22  section four hundred seventy-five of the internal revenue code shall  be
    23  included  in  the  receipts  fraction  in  accordance with clause (i) of
    24  subparagraph two of paragraph (a) of subdivision five of this section.
    25    (d) Net gains (not less than zero) from the  sales  of  real  property
    26  located  within  the  city  shall  be  included  in the numerator of the
    27  receipts fraction. Net gains (not less than zero) from the sales of real
    28  property located within and without the city shall be  included  in  the
    29  denominator of the receipts fraction.
    30    3.  (a)  Receipts  from rentals of real and tangible personal property
    31  located within the city shall  be  included  in  the  numerator  of  the
    32  receipts  fraction.  Receipts from rentals of real and tangible personal
    33  property located within and without the city shall be  included  in  the
    34  denominator of the receipts fraction.
    35    (b)  Receipts of royalties from the use of patents, copyrights, trade-
    36  marks, and similar intangible personal property within the city shall be
    37  included in the numerator of the receipts fraction. Receipts  of  royal-
    38  ties from the use of patents, copyrights, trademarks, and similar intan-
    39  gible personal property within and without the city shall be included in
    40  the  denominator  of  the receipts fraction. A patent, copyright, trade-
    41  mark, or similar intangible personal property is used within the city to
    42  the extent that the activities thereunder  are  carried  on  within  the
    43  city.
    44    (c)  Receipts  from  the  sales of rights for closed-circuit and cable
    45  television transmissions of an event (other than events occurring  on  a
    46  regularly  scheduled  basis) taking place within the city as a result of
    47  the rendition of services by employees of the corporation, as  athletes,
    48  entertainers  or  performing artists, shall be included in the numerator
    49  of the receipts fraction to the extent that such receipts are  attribut-
    50  able  to  such  transmissions  received  or  exhibited  within the city.
    51  Receipts from all sales of rights for  closed-circuit  and  cable  tele-
    52  vision transmissions of an event shall be included in the denominator of
    53  the receipts fraction.
    54    4.  (a)  For  purposes of determining the receipts fraction under this
    55  section, the term "digital product" means any property  or  service,  or
    56  combination  thereof,  of  whatever  nature  delivered  to the purchaser

        A. 6009                            148
 
     1  through the use of wire, cable,  fiber-optic,  laser,  microwave,  radio
     2  wave,  satellite or similar successor media, or any combination thereof.
     3  Digital product includes, but is not limited to, an  audio  work,  audi-
     4  ovisual  work,  visual  work, book or literary work, graphic work, game,
     5  information or entertainment service, storage of  digital  products  and
     6  computer  software  by whatever means delivered. The term "delivered to"
     7  includes furnished or provided to or  accessed  by.  A  digital  product
     8  shall  not  include legal, medical, accounting, architectural, research,
     9  analytical, engineering or consulting services provided by the taxpayer.
    10    (b) Receipts from the sale of, license to use, or granting  of  remote
    11  access  to digital products within the city, determined according to the
    12  hierarchy of methods set forth in  subparagraphs  one  through  four  of
    13  paragraph (c) of this subdivision, shall be included in the numerator of
    14  the  receipts  fraction.  Receipts  from the sale of, license to use, or
    15  granting of remote access to digital products  within  and  without  the
    16  city  shall be included in the denominator of the receipts fraction. The
    17  taxpayer must exercise due diligence  under  each  method  described  in
    18  paragraph  (c) of this subdivision before rejecting it and proceeding to
    19  the next method in the hierarchy, and must  base  its  determination  on
    20  information  known to the taxpayer or information that would be known to
    21  the taxpayer upon reasonable inquiry. If the receipt for a digital prod-
    22  uct is comprised of a combination of property and services, it cannot be
    23  divided into separate components and  shall  be  considered  to  be  one
    24  receipt  regardless  of  whether  it  is  separately  stated for billing
    25  purposes. The entire receipt must be allocated by this hierarchy.
    26    (c) The hierarchy of sourcing methods is as follows: (1)  the  custom-
    27  er's primary use location of the digital product; (2) the location where
    28  the  digital  product  is  received by the customer, or is received by a
    29  person designated for receipt by the customer; (3) the receipts fraction
    30  determined pursuant to this subdivision for the preceding  taxable  year
    31  for  such  digital  product; or (4) the receipts fraction in the current
    32  taxable year for those digital products that can be  sourced  using  the
    33  hierarchy of sourcing methods in subparagraphs one and two of this para-
    34  graph.
    35    5. (a) A financial instrument is a "qualified financial instrument" if
    36  it  is  eligible  or  required to be marked to market under section four
    37  hundred seventy-five or section twelve hundred fifty-six of the internal
    38  revenue code, provided that loans secured by real property shall not  be
    39  qualified  financial instruments. A financial instrument is a "nonquali-
    40  fied financial instrument" if it is not a  qualified  financial  instru-
    41  ment.
    42    (1) In determining the inclusion of receipts and net gains from quali-
    43  fied financial instruments in the receipts fraction, taxpayers may elect
    44  to  use  the  fixed percentage method described in this subparagraph for
    45  qualified financial instruments. The election is irrevocable, applies to
    46  all qualified financial instruments, and must be made on an annual basis
    47  on the taxpayer's original, timely filed return.  If the taxpayer elects
    48  the fixed percentage method, then all income, gain  or  loss,  including
    49  marked  to market net gains as defined in clause (x) of subparagraph two
    50  of this paragraph from qualified financial instruments constitute  busi-
    51  ness  income,  gain  or  loss. If the taxpayer does not elect to use the
    52  fixed percentage method, then receipts and net gains are included in the
    53  receipts fraction  in  accordance  with  the  customer  sourcing  method
    54  described  in  subparagraph  two  of  this  paragraph.  Under  the fixed
    55  percentage method, eight percent of all net income (not less than  zero)
    56  from  qualified financial instruments shall be included in the numerator

        A. 6009                            149
 
     1  of the receipts fraction. All net income (not less than zero) from qual-
     2  ified financial instruments shall be included in the denominator of  the
     3  receipts fraction.
     4    (2)  Receipts  and  net gains from qualified financial instruments, in
     5  cases where the taxpayer did not elect to use the fixed percentage meth-
     6  od described in subparagraph one of this paragraph, and  from  nonquali-
     7  fied financial instruments shall be included in the receipts fraction in
     8  accordance  with  this  subparagraph. For purposes of this paragraph, an
     9  individual is deemed to be located within the city if his or her billing
    10  address is within the city. A business entity is deemed  to  be  located
    11  within the city if its commercial domicile is located within the city.
    12    (i)(A) Receipts constituting interest from loans secured by real prop-
    13  erty  located  within the city shall be included in the numerator of the
    14  receipts fraction. Receipts constituting interest from loans secured  by
    15  real  property  located within and without the city shall be included in
    16  the denominator of the receipts fraction.
    17    (B) Receipts constituting interest from  loans  not  secured  by  real
    18  property  shall be included in the numerator of the receipts fraction if
    19  the borrower is located within the city.  Receipts constituting interest
    20  from loans not secured by real property, whether the borrower is located
    21  within or without the city, shall be included in the denominator of  the
    22  receipts fraction.
    23    (C) Net gains (not less than zero) from sales of loans secured by real
    24  property  shall be included in the numerator of the receipts fraction as
    25  provided in this subclause. The amount of net gains from  the  sales  of
    26  loans secured by real property included in the numerator of the receipts
    27  fraction shall be determined by multiplying the net gains by a fraction,
    28  the  numerator of which shall be the amount of gross proceeds from sales
    29  of loans secured by real property located within the city and the denom-
    30  inator of which shall be the gross proceeds from sales of loans  secured
    31  by  real  property  located within and without the city.  Gross proceeds
    32  shall be determined after the deduction of any cost incurred to  acquire
    33  the  loans  but  shall  not  be less than zero. Net gains (not less than
    34  zero) from sales of loans secured by real property  located  within  and
    35  without  the  city  shall be included in the denominator of the receipts
    36  fraction.
    37    (D) Net gains (not less than zero) from sales of loans not secured  by
    38  real  property  shall be included in the numerator of the receipts frac-
    39  tion as provided in this subclause. The amount of  net  gains  from  the
    40  sales of loans not secured by real property included in the numerator of
    41  the  receipts  fraction shall be determined by multiplying the net gains
    42  by a fraction, the numerator of which  shall  be  the  amount  of  gross
    43  proceeds  from sales of loans not secured by real property to purchasers
    44  located within the city and the denominator of which shall be the amount
    45  of gross proceeds from sales of loans not secured by  real  property  to
    46  purchasers  located within and without the city. Gross proceeds shall be
    47  determined after the deduction of any cost incurred to acquire the loans
    48  but shall not be less than zero. Net gains (not  less  than  zero)  from
    49  sales  of  loans  not  secured by real property shall be included in the
    50  denominator of the receipts fraction.
    51    (E) For purposes of this subdivision, a loan is secured by real  prop-
    52  erty  if  fifty  percent  or more of the value of the collateral used to
    53  secure the loan, when valued at fair market value as  of  the  time  the
    54  loan was entered into, consists of real property.
    55    (ii)  Federal, state, and municipal debt. Receipts constituting inter-
    56  est and net gains from sales of debt instruments issued  by  the  United

        A. 6009                            150
 
     1  States,  any  state,  or  political  subdivision of a state shall not be
     2  included in the numerator of the receipts fraction.  Receipts constitut-
     3  ing interest and net gains (not less  than  zero)  from  sales  of  debt
     4  instruments issued by the United States and the state of New York or its
     5  political  subdivisions,  including  the  city, shall be included in the
     6  denominator of the receipts fraction.  Fifty  percent  of  the  receipts
     7  constituting  interest  and net gains (not less than zero) from sales of
     8  debt instruments issued by other states or their political  subdivisions
     9  shall be included in the denominator of the receipts fraction.
    10    (iii)  Asset backed securities and other government agency debt. Eight
    11  percent of the interest income from asset  backed  securities  or  other
    12  securities  issued  by government agencies, including but not limited to
    13  securities  issued  by  the  government  national  mortgage  association
    14  (GNMA),  the  federal  national mortgage association (FNMA), the federal
    15  home loan mortgage corporation (FHLMC), or the small  business  adminis-
    16  tration, or eight percent of the interest income from asset backed secu-
    17  rities  issued  by  other entities shall be included in the numerator of
    18  the receipts fraction. Eight percent of the net  gains  (not  less  than
    19  zero)  from  (A)  sales  of  asset backed securities or other securities
    20  issued by government agencies, including but not limited  to  securities
    21  issued  by  GNMA,  FNMA, FHLMC, or the small business administration, or
    22  (B) sales of other asset backed  securities  that  are  sold  through  a
    23  registered  securities  broker or dealer or through a licensed exchange,
    24  shall be included in the numerator of the receipts fraction. The  amount
    25  of net gains (not less than zero) from sales of other asset backed secu-
    26  rities not referenced in subclause (A) or (B) of this clause included in
    27  the  numerator of the receipts fraction shall be determined by multiply-
    28  ing such net gains by a fraction, the numerator of which  shall  be  the
    29  amount  of  gross  proceeds from such sales to purchasers located in the
    30  city and the denominator of which shall be the amount of gross  proceeds
    31  from  such  sales  to  purchasers  located  within and without the city.
    32  Receipts constituting interest income from asset backed  securities  and
    33  other  securities referenced in this clause and net gains (not less than
    34  zero) from sales of asset backed securities and other securities  refer-
    35  enced  in  this  clause  shall  be  included  in  the denominator of the
    36  receipts  fraction.  Gross  proceeds  shall  be  determined  after   the
    37  deduction  of  any  cost to acquire the securities but shall not be less
    38  than zero.
    39    (iv) Receipts constituting interest  from  corporate  bonds  shall  be
    40  included  in  the  numerator  of the receipts fraction if the commercial
    41  domicile of the issuing corporation is within the city. Eight percent of
    42  the net gains (not less than zero) from sales of  corporate  bonds  sold
    43  through  a  registered securities broker or dealer or through a licensed
    44  exchange shall be included in the numerator of  the  receipts  fraction.
    45  The  amount of net gains (not less than zero) from other sales of corpo-
    46  rate bonds included in the numerator of the receipts fraction  shall  be
    47  determined by multiplying such net gains by a fraction, the numerator of
    48  which  is  the  amount  of  gross proceeds from such sales to purchasers
    49  located within the city and the denominator of which is  the  amount  of
    50  gross  proceeds  from sales to purchasers located within and without the
    51  city. Receipts constituting interest from corporate bonds,  whether  the
    52  issuing corporation's commercial domicile is within or without the city,
    53  and  net  gains  (not  less  than zero) from sales of corporate bonds to
    54  purchasers within and without the city shall be included in the  denomi-
    55  nator of the receipts fraction. Gross proceeds shall be determined after

        A. 6009                            151
 
     1  the  deduction  of  any  cost to acquire the bonds but shall not be less
     2  than zero.
     3    (v)  Eight  percent  of  net interest income (not less than zero) from
     4  reverse repurchase agreements and securities borrowing agreements  shall
     5  be  included  in  the  numerator  of the receipts fraction. Net interest
     6  income (not less than zero) from reverse repurchase agreements and secu-
     7  rities borrowing agreements shall be included in the denominator of  the
     8  receipts  fraction.  Net  interest income from reverse repurchase agree-
     9  ments and  securities  borrowing  agreements  shall  be  determined  for
    10  purposes of this subdivision after the deduction of the interest expense
    11  from  the taxpayer's repurchase agreements and securities lending agree-
    12  ments but shall not be less than zero. For this calculation, the  amount
    13  of  such  interest expense shall be the interest expense associated with
    14  the sum of the value of the taxpayer's repurchase agreements where it is
    15  the seller/borrower plus the value of the taxpayer's securities  lending
    16  agreements  where  it  is  the  securities  lender, provided such sum is
    17  limited to the sum of the value of  the  taxpayer's  reverse  repurchase
    18  agreements  where  it  is  the  purchaser/lender  plus  the value of the
    19  taxpayer's securities lending agreements  where  it  is  the  securities
    20  borrower.
    21    (vi)  Eight  percent  of  the  net  interest (not less than zero) from
    22  federal funds shall be included in the numerator of the  receipts  frac-
    23  tion.  The net interest (not less than zero) from federal funds shall be
    24  included in the denominator of the receipts fraction. Net interest  from
    25  federal  funds  shall  be determined after deduction of interest expense
    26  from federal funds.
    27    (vii) Dividends from stock, net gains (not less than zero) from  sales
    28  of  stock  and  net gains (not less than zero) from sales of partnership
    29  interests shall not be included in either the numerator  or  denominator
    30  of  the  receipts fraction unless the commissioner of finance determines
    31  pursuant to subdivision eleven of this section that  inclusion  of  such
    32  dividends  and  net  gains (not less than zero) is necessary to properly
    33  reflect the business income or capital of the taxpayer.
    34    (viii)(A) Receipts constituting interest from other financial  instru-
    35  ments shall be included in the numerator of the receipts fraction if the
    36  payor  is  located  within the city. Receipts constituting interest from
    37  other financial instruments, whether the payor is within or without  the
    38  city, shall be included in the denominator of the receipts fraction.
    39    (B)  Net  gains  (not  less  than  zero) from sales of other financial
    40  instruments and other income (not less than zero) from  other  financial
    41  instruments  where  the  purchaser  or  payor is located within the city
    42  shall be included in the numerator of the  receipts  fraction,  provided
    43  that,  if  the  purchaser  or payor is a registered securities broker or
    44  dealer or the transaction is made  through  a  licensed  exchange,  then
    45  eight percent of the net gains (not less than zero) or other income (not
    46  less than zero) shall be included in the numerator of the receipts frac-
    47  tion.  Net  gains  (not  less  than  zero) from sales of other financial
    48  instruments and other income (not less than zero) from  other  financial
    49  instruments  shall  be included in the denominator of the receipts frac-
    50  tion.
    51    (ix) Net income (not less than zero) from sales  of  physical  commod-
    52  ities  shall  be  included  in the numerator of the receipts fraction as
    53  provided in this clause.  The amount of net income from sales  of  phys-
    54  ical  commodities  included  in  the  numerator of the receipts fraction
    55  shall be determined by multiplying the net income from sales of physical
    56  commodities by a fraction, the numerator of which shall be the amount of

        A. 6009                            152
 
     1  receipts from sales of physical commodities actually delivered to points
     2  within the city or, if there is  no  actual  delivery  of  the  physical
     3  commodity, sold to purchasers located within the city, and the denomina-
     4  tor  of  which  shall  be  the amount of receipts from sales of physical
     5  commodities actually delivered to points within and without the city or,
     6  if there is no actual  delivery  of  the  physical  commodity,  sold  to
     7  purchasers  located  within  and  without the city. Net income (not less
     8  than zero) from sales of physical commodities shall be included  in  the
     9  denominator  of  the  receipts fraction. Net income (not less than zero)
    10  from sales  of  physical  commodities  shall  be  determined  after  the
    11  deduction of the cost to acquire or produce the physical commodities.
    12    (x)(A) For purposes of this subdivision, "marked to market" means that
    13  a  financial  instrument  is, under section four hundred seventy-five or
    14  section twelve hundred fifty-six of the internal revenue  code,  treated
    15  by  the  taxpayer as sold for its fair market value on the last business
    16  day of the taxpayer's taxable year.   "Marked to market  gain  or  loss"
    17  means  the  gain  or  loss recognized by the taxpayer under section four
    18  hundred seventy-five or section twelve hundred fifty-six of the internal
    19  revenue code because the financial instrument is treated as sold for its
    20  fair market value on the last business day  of  the  taxpayer's  taxable
    21  year.
    22    (B) The amount of marked to market net gains (not less than zero) from
    23  each  type  of financial instrument that is marked to market included in
    24  the numerator of the receipts fraction shall be determined by  multiply-
    25  ing  the  marked to market net gains (not less than zero) from such type
    26  of financial instrument by a fraction, the numerator of which  shall  be
    27  the  numerator  of  the  receipts  fraction  for  that type of financial
    28  instrument determined under the applicable clause of  this  subparagraph
    29  and  the  denominator  of which shall be the denominator of the receipts
    30  fraction for net gains from that type of financial instrument determined
    31  under the applicable clause of this subparagraph. Marked to  market  net
    32  gains  (not  less  than  zero)  from financial instruments for which the
    33  numerator of the receipts fraction for net gains is determined under the
    34  immediately preceding sentence shall be included in the  denominator  of
    35  the receipts fraction.
    36    (C)  If  the  type of financial instrument that is marked to market is
    37  not otherwise sourced by the taxpayer under this subparagraph, or if the
    38  taxpayer has a net loss from the sales of that type of financial instru-
    39  ment under the applicable clause of this  subparagraph,  the  amount  of
    40  marked to market net gains (not less than zero) from that type of finan-
    41  cial instrument included in the numerator of the receipts fraction shall
    42  be  determined  by  multiplying  the marked to market net gains (but not
    43  less than zero) from that type of financial instrument  by  a  fraction,
    44  the  numerator  of  which  shall  be  the  sum of the amount of receipts
    45  included in the numerator of the receipts  fraction  under  clauses  (i)
    46  through  (ix) of this subparagraph and subclause (B) of this clause, and
    47  the denominator of which shall be the sum  of  the  amount  of  receipts
    48  included  in  the denominator of the receipts fraction under clauses (i)
    49  through (ix) of this subparagraph and  subclause  (B)  of  this  clause.
    50  Marked  to market net gains (not less than zero) for which the amount to
    51  be included in the numerator of  the  receipts  fraction  is  determined
    52  under the immediately preceding sentence shall be included in the denom-
    53  inator of the receipts fraction.
    54    (b)  Receipts of a registered securities broker or dealer from securi-
    55  ties or commodities broker or dealer activities described in this  para-
    56  graph  shall  be  deemed to be generated within the city as described in

        A. 6009                            153
 
     1  subparagraphs one through eight of this paragraph.  Receipts  from  such
     2  activities  generated within the city shall be included in the numerator
     3  of the receipts fraction. Receipts from such activities generated within
     4  and  without  the  city  shall  be  included  in  the denominator of the
     5  receipts fraction. For the purposes of this paragraph, the term "securi-
     6  ties" shall have the same meaning as in paragraph two of subsection  (c)
     7  of  section  four  hundred seventy-five of the internal revenue code and
     8  the term "commodities" shall have the same meaning as in  paragraph  two
     9  of  subsection  (e) of section four hundred seventy-five of the internal
    10  revenue code.
    11    (1) Receipts  constituting  brokerage  commissions  derived  from  the
    12  execution  of securities or commodities purchase or sales orders for the
    13  accounts of customers shall be deemed to be generated within the city if
    14  the mailing address in the records of the taxpayer of the  customer  who
    15  is responsible for paying such commissions is within the city.
    16    (2)  Receipts constituting margin interest earned on behalf of broker-
    17  age accounts shall be deemed to be generated  within  the  city  if  the
    18  mailing  address  in  the records of the taxpayer of the customer who is
    19  responsible for paying such margin interest is within the city.
    20    (3) (i) Receipts constituting fees earned by the taxpayer for advisory
    21  services to a customer in connection with the underwriting of securities
    22  for such customer (such customer being the entity that is  contemplating
    23  issuing  or  is  issuing  securities) or fees earned by the taxpayer for
    24  managing an underwriting shall be deemed to be generated within the city
    25  if the mailing address in the records of the taxpayer of  such  customer
    26  who is responsible for paying such fees is within the city.
    27    (ii)  Receipts  constituting  the primary spread of selling concession
    28  from underwritten securities shall be deemed to be generated within  the
    29  city if the customer is located within the city.
    30    (iii) The term "primary spread" means the difference between the price
    31  paid  by the taxpayer to the issuer of the securities being marketed and
    32  the price received from the subsequent sale of the underwritten  securi-
    33  ties  at  the initial public offering price, less any selling concession
    34  and any fees paid to the taxpayer for advisory services or any manager's
    35  fees, if such fees are not paid by the customer to  the  taxpayer  sepa-
    36  rately.  The term "public offering price" means the price agreed upon by
    37  the taxpayer and the issuer at which the securities are to be offered to
    38  the public. The term "selling concession" means the amount paid  to  the
    39  taxpayer  for  participating in the underwriting of a security where the
    40  taxpayer is not the lead underwriter.
    41    (4) Receipts constituting account maintenance fees shall be deemed  to
    42  be generated within the city if the mailing address in the record of the
    43  taxpayer  of  the  customer  who  is responsible for paying such account
    44  maintenance fees is within the city.
    45    (5) Receipts constituting fees for management  or  advisory  services,
    46  including  fees  for advisory services in relation to merger or acquisi-
    47  tion activities, but excluding fees paid for services described in para-
    48  graph (d) of this subdivision, shall be deemed to  be  generated  within
    49  the  city  if  the mailing address in the records of the taxpayer of the
    50  customer who is responsible for paying such fees is within the city.
    51    (6) Receipts constituting interest earned by the taxpayer on loans and
    52  advances made by the taxpayer  to  a  corporation  affiliated  with  the
    53  taxpayer  but  with  which  the taxpayer is not permitted or required to
    54  file a combined report pursuant to section 11-654.3 of  this  subchapter
    55  shall  be deemed to arise from services performed at the principal place
    56  of business of such affiliated corporation.

        A. 6009                            154
 
     1    (7) If the taxpayer receives any of the receipts enumerated in subpar-
     2  agraphs one through four of this paragraph as a result of  a  securities
     3  correspondent  relationship  such  taxpayer  has  with another broker or
     4  dealer with the taxpayer acting in this  relationship  as  the  clearing
     5  firm,  such  receipts shall be deemed to be generated within the city to
     6  the extent set forth in each of such subparagraphs. The amount  of  such
     7  receipts shall exclude the amount the taxpayer is required to pay to the
     8  correspondent  firm for such correspondent relationship. If the taxpayer
     9  receives any of the receipts enumerated  in  subparagraphs  one  through
    10  four of this paragraph as result of a securities correspondent relation-
    11  ship  such  taxpayer has with another broker or dealer with the taxpayer
    12  acting in this relationship as the introducing firm, such receipts shall
    13  be deemed to be generated within the city to the  extent  set  forth  in
    14  each of such subparagraphs.
    15    (8) If, for the purposes of subparagraph one, subparagraph two, clause
    16  (i)  of  subparagraph  three, subparagraph four, or subparagraph five of
    17  this paragraph the taxpayer is unable from its records to determine  the
    18  mailing  address of the customer, eight percent of the receipts shall be
    19  included in the numerator of the receipts fraction.
    20    (c) Receipts relating to the bank, credit, travel,  and  entertainment
    21  card activities described in this paragraph shall be deemed to be gener-
    22  ated  within  the city as described in subparagraphs one through four of
    23  this paragraph.  Receipts from such activities generated within the city
    24  shall be included in the numerator of the  receipts  fraction.  Receipts
    25  from  such  activities  generated  within  and without the city shall be
    26  included in the denominator of the receipts fraction.
    27    (1) Receipts constituting interest, and  fees  and  penalties  in  the
    28  nature  of  interest,  from  bank, credit, travel and entertainment card
    29  receivables shall be deemed to be generated within the city if the mail-
    30  ing address of the card holder in the records of the taxpayer is  within
    31  the city;
    32    (2)  Receipts  from  service charges and fees from such cards shall be
    33  deemed to be generated within the city if the  mailing  address  of  the
    34  card holder in the records of the taxpayer is within the city;
    35    (3)  Receipts  from merchant discounts shall be deemed to be generated
    36  within the city if the merchant is located within the city. In the  case
    37  of  a  merchant  with  locations  both within and without the city, only
    38  receipts  from  merchant  discounts  attributable  to  sales  made  from
    39  locations  within  the  city  are  allocated  to  the  city. It shall be
    40  presumed that the location  of  the  merchant  is  the  address  of  the
    41  merchant shown on the invoice submitted by the merchant to the taxpayer;
    42  and
    43    (4)  Receipts  from credit card authorization processing, and clearing
    44  and settlement processing received by a credit card processor  shall  be
    45  deemed  to be generated within the city if the location where the credit
    46  card processor's customer accesses the credit card  processor's  network
    47  is located within the city. The amount of all other receipts received by
    48  a  credit  card processor not specifically addressed in subdivisions one
    49  through nine or subdivision twelve of this section deemed to  be  gener-
    50  ated within the city shall be determined by multiplying the total amount
    51  of  such other receipts by the average of (i) eight percent and (ii) the
    52  percent of New York city access points. The percent  of  New  York  city
    53  access  points  shall  be  the number of locations in New York city from
    54  which the credit card  processor's  customers  access  the  credit  card
    55  processor's  network  divided  by  the  total number of locations in the

        A. 6009                            155

     1  United States where the credit card  processor's  customers  access  the
     2  credit card processor's network.
     3    (d) Receipts received from an investment company arising from the sale
     4  of  management,  administration or distribution services to such invest-
     5  ment company shall be included in the denominator of the receipts  frac-
     6  tion.  The  portion  of  such  receipts included in the numerator of the
     7  receipts fraction (such portion referred to herein as the New York  city
     8  portion) shall be determined as provided in this paragraph.
     9    (1)  The  New  York  city portion shall be the product of the total of
    10  such receipts from the sale of such services and a fraction. The numera-
    11  tor of that fraction shall be the sum of  the  monthly  percentages  (as
    12  defined  hereinafter) determined for each month of the investment compa-
    13  ny's taxable year for federal income tax  purposes  which  taxable  year
    14  ends  within  the  taxable year of the taxpayer (but excluding any month
    15  during which the investment company  had  no  outstanding  shares).  The
    16  monthly  percentage  for each such month shall be determined by dividing
    17  the number of shares in the investment company that  are  owned  on  the
    18  last  day  of  the month by shareholders that are located in the city by
    19  the total number of shares in the investment company outstanding on that
    20  date. The denominator of the fraction shall be the number of such month-
    21  ly percentages.
    22    (2)(i) For purposes of this paragraph, an individual, estate or  trust
    23  shall be deemed to be located within the city if his, her or its mailing
    24  address  in  the records of the investment company is located within the
    25  city. A business entity is deemed to be located within the city  if  its
    26  commercial domicile is located within the city.
    27    (ii)  For  purposes  of  this paragraph, the term "investment company"
    28  means a regulated  investment  company,  as  defined  in  section  eight
    29  hundred  fifty-one  of  the  internal revenue code, and a partnership to
    30  which subsection (a) of section seven thousand seven hundred four of the
    31  internal  revenue  code  applies  (by  virtue  of  paragraph  three   of
    32  subsection  (c)  of  section  seven  thousand seven hundred four of such
    33  code) and that meets the requirements of subsection (b) of section eight
    34  hundred fifty-one of such code. The preceding sentence shall be  applied
    35  to  the  taxable  year  for  federal income tax purposes of the business
    36  entity that is asserted to constitute an investment  company  that  ends
    37  within the taxable year of the taxpayer.
    38    (iii) For purposes of this paragraph, the term "receipts received from
    39  an  investment  company"  includes  amounts  received  directly  from an
    40  investment company as well as amounts received from the shareholders  in
    41  such investment company, in their capacity as such.
    42    (iv)  For  purposes  of this paragraph, the term "management services"
    43  means the rendering of  investment  advice  to  an  investment  company,
    44  making  determinations  as to when sales and purchases of securities are
    45  to be made on behalf  of  an  investment  company,  or  the  selling  or
    46  purchasing  of  securities constituting assets of an investment company,
    47  and related activities, but only where such activity or  activities  are
    48  performed  pursuant  to  a  contract with the investment company entered
    49  into pursuant to subsection  (a)  of  section  fifteen  of  the  federal
    50  investment company act of nineteen hundred forty, as amended.
    51    (v)  For  purposes of this paragraph, the term "distribution services"
    52  means the services of advertising, servicing investor accounts  (includ-
    53  ing  redemptions),  marketing  shares or selling shares of an investment
    54  company, but, in the case of advertising,  servicing  investor  accounts
    55  (including  redemptions) or marketing shares, only where such service is
    56  performed by a person who is (or was, in the case of a closed end compa-

        A. 6009                            156
 
     1  ny) also engaged in the service of selling such shares. In the  case  of
     2  an  open  end  company, such service of selling shares must be performed
     3  pursuant to a contract  entered  into  pursuant  to  subsection  (b)  of
     4  section  fifteen  of  the  federal  investment  company  act of nineteen
     5  hundred forty, as amended.
     6    (vi)  For  purposes  of  this  paragraph,  the  term   "administration
     7  services"  includes  clerical, accounting, bookkeeping, data processing,
     8  internal auditing, legal and tax services performed  for  an  investment
     9  company  but only if the provider of such service or services during the
    10  taxable year in which such service  or  services  are  sold  also  sells
    11  management  or  distribution  services,  as defined hereinabove, to such
    12  investment company.
    13    (e) For purposes of this subdivision, a taxpayer shall use the follow-
    14  ing hierarchy to determine the commercial domicile of a business entity,
    15  based on the information known to the taxpayer or information that would
    16  be known upon reasonable inquiry: (1) the seat of management and control
    17  of the business entity; and (2) the  billing  address  of  the  business
    18  entity  in  the taxpayer's records. The taxpayer must exercise due dili-
    19  gence before rejecting the first method in this hierarchy and proceeding
    20  to the next method.
    21    (f) For purposes of this subdivision, the term "registered  securities
    22  broker  or  dealer"  means  a broker or dealer registered as such by the
    23  securities and exchange commission or a broker or dealer  registered  as
    24  such by the commodities futures trading commission, and shall include an
    25  OTC  derivatives  dealer  as defined under regulations of the securities
    26  and exchange commission at title 17, part 240, section 3b-12 of the code
    27  of federal regulations (17 CFR 240.3b-12).
    28    6. Receipts from the conduct of a railroad business (including surface
    29  railroad, whether or not operated by steam,  subway  railroad,  elevated
    30  railroad,  palace  car  or sleeping car business) or a trucking business
    31  shall be included in the numerator of the receipts fraction as  follows.
    32  The  amount  of  receipts  from  the conduct of a railroad business or a
    33  trucking business included in the numerator  of  the  receipts  fraction
    34  shall  be  determined  by  multiplying  the amount of receipts from such
    35  business by a fraction, the numerator of which shall  be  the  miles  in
    36  such  business  within the city during the period covered by the taxpay-
    37  er's report and the denominator of which shall  be  the  miles  in  such
    38  business  within  and without the city during such period. Receipts from
    39  the conduct of the railroad business or a  trucking  business  shall  be
    40  included in the denominator of the receipts fraction.
    41    7. (a) Receipts of a taxpayer acting as principal from the activity of
    42  air  freight  forwarding  and like indirect air carrier receipts arising
    43  from such activity shall be included in the numerator  of  the  receipts
    44  fraction  as  follows:  one hundred percent of such receipts if both the
    45  pickup and delivery associated with such receipts are  made  within  the
    46  city and fifty percent of such receipts if either the pickup or delivery
    47  associated  with  such receipts is made within this city. Such receipts,
    48  whether the pickup or delivery associated with the receipts is within or
    49  without the city, shall be included in the denominator of  the  receipts
    50  fraction.
    51    (b)(1)(i) The portion of receipts of a taxpayer from aviation services
    52  (other than services described in paragraph (a) of this subdivision, but
    53  including  the  receipts  of  a  qualified  air freight forwarder) to be
    54  included in the numerator of the receipts fraction shall  be  determined
    55  by  multiplying its receipts from such aviation services by a percentage

        A. 6009                            157
 
     1  which is equal to the arithmetic average of the following three percent-
     2  ages:
     3    (A)  the  percentage  determined by dividing the aircraft arrivals and
     4  departures within the city by the taxpayer during the period covered  by
     5  its  report  by  the  total  aircraft arrivals and departures within and
     6  without the city during such period;  provided,  however,  arrivals  and
     7  departures  solely for maintenance or repair, refueling (where no debar-
     8  kation or embarkation of traffic occurs),  arrivals  and  departures  of
     9  ferry  and  personnel training flights or arrivals and departures in the
    10  event of emergency situations shall not be included  in  computing  such
    11  arrival and departure percentage; provided, further, the commissioner of
    12  finance  may  also  exempt  from  such  percentage aircraft arrivals and
    13  departures of all non-revenue flights including  flights  involving  the
    14  transportation  of officers or employees receiving air transportation to
    15  perform maintenance or repair services or where such officers or employ-
    16  ees are transported in conjunction with an emergency  situation  or  the
    17  investigation  of  an  air  disaster (other than on a scheduled flight);
    18  provided, however, that arrivals and departures of flights  transporting
    19  officers  and  employees receiving air transportation for purposes other
    20  than specified above (without regard to remuneration) shall be  included
    21  in computing such arrival and departure percentage;
    22    (B)  the percentage determined by dividing the revenue tons handled by
    23  the taxpayer at airports within the city during such period by the total
    24  revenue tons handled by it at  airports  within  and  without  the  city
    25  during such period; and
    26    (C)  the  percentage determined by dividing the taxpayer's originating
    27  revenue within the city for such period by its total originating revenue
    28  within and without the city for such period.
    29    (ii) As used herein the term "aircraft arrivals and departures"  means
    30  the  number of landings and takeoffs of the aircraft of the taxpayer and
    31  the number of air pickups and deliveries by the aircraft of such taxpay-
    32  er; the term "originating revenue" means revenue to  the  taxpayer  from
    33  the  transportation  of  revenue  passengers  and revenue property first
    34  received by the taxpayer either as originating or connecting traffic  at
    35  airports;  and  the  term  "revenue  tons  handled  by  the  taxpayer at
    36  airports" means the weight in tons of revenue passengers (at two hundred
    37  pounds per passenger) and revenue cargo first received either as  origi-
    38  nating  or  connecting  traffic or finally discharged by the taxpayer at
    39  airports.
    40    (2) All such receipts of a taxpayer from aviation  services  described
    41  in  this  paragraph shall be included in the denominator of the receipts
    42  fraction.
    43    (3) A corporation is a qualified air freight forwarder with respect to
    44  another corporation:
    45    (i) if it owns or controls either directly or indirectly  all  of  the
    46  capital  stock of such other corporation, or if all of its capital stock
    47  is owned or controlled either  directly  or  indirectly  by  such  other
    48  corporation,  or  if  all  of  the capital stock of both corporations is
    49  owned or controlled either directly or indirectly by the same interests;
    50    (ii) if it is principally engaged  in  the  business  of  air  freight
    51  forwarding; and
    52    (iii) if its air freight forwarding business is carried on principally
    53  with the airline or airlines operated by such other corporation.
    54    8.  (a) The amount of receipts from sales of advertising in newspapers
    55  or periodicals included in the numerator of the receipts fraction  shall
    56  be  determined  by multiplying the total of such receipts by a fraction,

        A. 6009                            158
 
     1  the numerator of which shall be the number of newspapers and periodicals
     2  delivered to points within the city and the denominator of  which  shall
     3  be  the  number of newspapers and periodicals delivered to points within
     4  and without the city. The total of such receipts from sales of advertis-
     5  ing in newspapers or periodicals shall be included in the denominator of
     6  the receipts fraction.
     7    (b)  The amount of receipts from sales of advertising on television or
     8  radio included in the receipts fraction shall be determined by multiply-
     9  ing the total of such receipts by a fraction,  the  numerator  of  which
    10  shall  be  the  number  of  viewers or listeners within the city and the
    11  denominator of which shall be the number of viewers or listeners  within
    12  and  without  the city.  The total of such receipts from sales of adver-
    13  tising on television or radio shall be included in  the  denominator  of
    14  the receipts fraction.
    15    (c)  The amount of receipts from sales of advertising not described in
    16  paragraph (a) or (b) of this subdivision that is furnished, provided  or
    17  delivered  to,  or accessed by the viewer or listener through the use of
    18  wire, cable, fiber-optic, laser, microwave,  radio  wave,  satellite  or
    19  similar  successor  media  or  any  combination thereof, included in the
    20  numerator of the receipts fraction shall be  determined  by  multiplying
    21  the  total  of such receipts by a fraction, the numerator of which shall
    22  be the number of viewers or listeners within the city and the  denomina-
    23  tor  of  which  shall  be  the number of viewers or listeners within and
    24  without the city. The total of such receipts from sales  of  advertising
    25  described  in this paragraph shall be included in the denominator of the
    26  receipts fraction.
    27    9. Receipts from the transportation or  transmission  of  gas  through
    28  pipes  shall  be  included  in the numerator of the receipts fraction as
    29  follows. The amount of receipts from the transportation or  transmission
    30  of  gas through pipes included in the numerator of the receipts fraction
    31  shall be determined by multiplying the total amount of such receipts  by
    32  a  fraction,  the numerator of which shall be the taxpayer's transporta-
    33  tion units within the city and the denominator of  which  shall  be  the
    34  taxpayer's transportation units within and without the city. A transpor-
    35  tation  unit  is  the  transportation  of  one  cubic foot of gas over a
    36  distance of one mile.  The total amount of receipts from the transporta-
    37  tion or transmission of gas through  pipes  shall  be  included  in  the
    38  denominator of the receipts fraction.
    39    10.  (a)  Receipts  from  services  not  addressed in subdivisions one
    40  through nine or subdivision twelve of this section  and  other  business
    41  receipts  not  addressed  in  such subdivisions shall be included in the
    42  numerator of the receipts fraction if the location of  the  customer  is
    43  within  the  city.  Such  receipts from customers within and without the
    44  city shall be included in the  denominator  of  the  receipts  fraction.
    45  Whether the receipts are included in the numerator of the receipts frac-
    46  tion shall be determined according to the hierarchy of methods set forth
    47  in  paragraph  (b)  of this subdivision.  The taxpayer must exercise due
    48  diligence under each method described in such paragraph before rejecting
    49  it and proceeding to the next method in the hierarchy, and must base its
    50  determination on information known to the taxpayer or  information  that
    51  would be known to the taxpayer upon reasonable inquiry.
    52    (b)  The  hierarchy  of  methods  is  as follows:   (1) the benefit is
    53  received in the city; (2) delivery destination; (3) the  receipts  frac-
    54  tion  for  such  receipts  within  the  city determined pursuant to this
    55  subdivision for the preceding taxable year; or (4) the receipts fraction
    56  in the current taxable year determined pursuant to this subdivision  for

        A. 6009                            159
 
     1  those receipts that can be sourced using the hierarchy of sourcing meth-
     2  ods in subparagraphs one and two of this paragraph.
     3    11.  If it shall appear that the receipts fraction determined pursuant
     4  to this section does not result in a proper reflection of the taxpayer's
     5  business income or capital within the city, the commissioner of  finance
     6  is authorized in his or her discretion to adjust it, or the taxpayer may
     7  request that the commissioner of finance adjust it, by (a) excluding one
     8  or  more  items  in  such determination, (b) including one or more other
     9  items in such determination, or (c) any other similar or different meth-
    10  od calculated to effect a fair and proper apportionment of the  business
    11  income  and capital reasonably attributed to the city. The party seeking
    12  the adjustment shall bear the burden of proof to  demonstrate  that  the
    13  receipts fraction determined pursuant to this section does not result in
    14  a  proper reflection of the taxpayer's business income or capital within
    15  the city and that the proposed adjustment is appropriate.
    16    12. Receipts from the operation of vessels shall be  included  in  the
    17  numerator  of  the  receipts fraction as follows. The amount of receipts
    18  from the operation of vessels included in the numerator of the  receipts
    19  fraction  shall be determined by multiplying the amount of such receipts
    20  by a fraction, the numerator of which shall be the aggregate  number  of
    21  working  days of the vessels owned or leased by the taxpayer in territo-
    22  rial waters of the city during the  period  covered  by  the  taxpayer's
    23  report  and  the  denominator  of which shall be the aggregate number of
    24  working days of all vessels owned or leased by the taxpayer during  such
    25  period.  Receipts from the operation of vessels shall be included in the
    26  denominator of the receipts fraction.
    27    § 11-654.3 Combined reports. 1. (a) The tax on a combined report shall
    28  be the highest of (1) the combined business income multiplied by the tax
    29  rate specified in clause (i) of subparagraph one  of  paragraph  (e)  of
    30  subdivision  one  of section 11-654 of this subchapter; (2) the combined
    31  capital multiplied by the tax rate specified in clause (ii) of  subpara-
    32  graph  one of paragraph (e) of subdivision one of section 11-654 of this
    33  subchapter, but not exceeding the limitation provided for in such clause
    34  (ii); or (3) the fixed dollar minimum that is attributable to the desig-
    35  nated agent of the combined group. In addition, the tax  on  a  combined
    36  report  shall  include  the fixed dollar minimum tax specified in clause
    37  (iv) of subparagraph one of paragraph (e) of subdivision one of  section
    38  11-654  of  this subchapter for each member of the combined group, other
    39  than the designated agent, that is a taxpayer.
    40    (b) The combined business income base is the amount  of  the  combined
    41  business  income  of  the  combined group that is allocated to the city,
    42  reduced by any prior net operating loss conversion subtraction  and  any
    43  net  operating loss deduction for the combined group. The combined capi-
    44  tal base is the amount of the combined capital  of  the  combined  group
    45  that is allocated to the city.
    46    2.  (a)  Except  as provided in paragraph (c) of this subdivision, any
    47  taxpayer (1) which owns or controls either directly or  indirectly  more
    48  than  fifty  percent  of the voting power of the capital stock of one or
    49  more other corporations, or (2) more than fifty percent  of  the  voting
    50  power  of  the  capital  stock  of  which  is owned or controlled either
    51  directly or indirectly by one or more other corporations,  or  (3)  more
    52  than fifty percent of the voting power of the capital stock of which and
    53  the  capital  stock  of  one  or  more  other  corporations, is owned or
    54  controlled, directly or indirectly, by the same interests, and (4)  that
    55  is  engaged  in  a unitary business with those corporations (hereinafter

        A. 6009                            160
 
     1  referred to as "related corporations"), shall  make  a  combined  report
     2  with those other corporations.
     3    (b)  A corporation required to make a combined report within the mean-
     4  ing of this section shall also include (1) a captive REIT and a  captive
     5  RIC; (2) a combinable captive insurance company; and (3) an alien corpo-
     6  ration  that  satisfies the conditions in paragraph (a) of this subdivi-
     7  sion if (i) under any provision  of  the  internal  revenue  code,  that
     8  corporation is treated as a "domestic corporation" as defined in section
     9  seven  thousand  seven hundred one of the internal revenue code, or (ii)
    10  it has effectively connected income for the  taxable  year  pursuant  to
    11  clause  three  of  the opening paragraph of subdivision eight of section
    12  11-652 of this subchapter.
    13    (c) A corporation required or permitted  to  make  a  combined  report
    14  under  this  section  does not include (1) a corporation that is taxable
    15  under a tax imposed by subchapter two of this chapter or chapter  eleven
    16  of  this  title (except for a vendor of utility services that is taxable
    17  under both chapter eleven of this title and this subchapter),  or  would
    18  be  taxable  under  a  tax  imposed by subchapter two of this chapter or
    19  chapter eleven of this title (except for a vendor  of  utility  services
    20  that  is  taxable  under  both  chapter  eleven  of  this title and this
    21  subchapter), or would have been  taxable  as  an  insurance  corporation
    22  under  the former part IV, title R, chapter forty-six of the administra-
    23  tive code as in effect on June thirtieth, nineteen hundred seventy-four;
    24  (2) a REIT that is not a captive REIT, and a RIC that is not  a  captive
    25  RIC;  or (3) an alien corporation that under any provision of the inter-
    26  nal revenue code is not treated as a "domestic corporation"  as  defined
    27  in  section  seven  thousand  seven  hundred one of such code and has no
    28  effectively connected income for the taxable  year  pursuant  to  clause
    29  three of the opening paragraph of subdivision eight of section 11-652 of
    30  this subchapter.  If a corporation is subject to tax under this subchap-
    31  ter solely as a result of its ownership of a limited partner interest in
    32  a  limited partnership that is doing business, employing capital, owning
    33  or leasing property, maintaining an office in this  state,  or  deriving
    34  receipts  from  activity  in  this  state, and none of the corporation's
    35  related corporations are subject to  tax  under  this  subchapter,  such
    36  corporation shall not be required or permitted to file a combined report
    37  under this section with such related corporations.
    38    (d)  A  combined  report shall be filed by the designated agent of the
    39  combined group as determined under subdivision seven of this section.
    40    3. (a) Subject to the provisions of paragraph (c) of  subdivision  two
    41  of this section, a taxpayer may elect to treat as its combined group all
    42  corporations that meet the ownership requirements described in paragraph
    43  (a)  of  subdivision two of this section (such corporations collectively
    44  referred to in this subdivision as the "commonly owned group"). If  that
    45  election  is made, the commonly owned group shall calculate the combined
    46  business income, combined capital, and fixed dollar  minimum  amount  of
    47  all  members  of  the  group  in  accordance with paragraph four of this
    48  subdivision, whether or not that business income or business capital  is
    49  from a single unitary business.
    50    (b)  The election under this subdivision shall be made on an original,
    51  timely filed return of the combined group. Any  corporation  entering  a
    52  commonly  owned  group  subsequent  to  the  year  of  election shall be
    53  included in the combined group and is  considered  to  have  waived  any
    54  objection to its inclusion in the combined group.
    55    (c)  The election shall be irrevocable, and binding for and applicable
    56  to the taxable year for which it is made and for the  next  six  taxable

        A. 6009                            161
 
     1  years.  The  election  will  automatically  be renewed for another seven
     2  taxable years after it has been in effect for seven taxable years unless
     3  it is  affirmatively  revoked.  The  revocation  shall  be  made  on  an
     4  original,  timely  filed  return  for  the  first taxable year after the
     5  completion of a seven year period  for  which  an  election  under  this
     6  subdivision  was  in  place. In the case of a revocation, a new election
     7  under this subdivision shall not be permitted in any of the  immediately
     8  following  three  taxable years. In determining the seven and three year
     9  periods described in this paragraph, short taxable years  shall  not  be
    10  considered or counted.
    11    4.  (a) In computing the tax bases for a combined report, the combined
    12  group shall generally be treated as  a  single  corporation,  except  as
    13  otherwise provided, and subject to any regulations or guidance issued by
    14  the commissioner of finance or the department of finance.
    15    (b)(1) In computing combined business income, all intercorporate divi-
    16  dends  shall  be  eliminated,  and all other intercorporate transactions
    17  shall be deferred in a manner similar  to  the  United  States  Treasury
    18  regulations  relating to intercompany transactions under section fifteen
    19  hundred two of the internal revenue code.
    20    (2) In computing combined capital, all  intercorporate  stockholdings,
    21  intercorporate  bills,  intercorporate  notes  receivable  and  payable,
    22  intercorporate accounts receivable and payable, and other intercorporate
    23  indebtedness, shall be eliminated.
    24    (c) Qualification for  credits,  including  any  limitations  thereon,
    25  shall  be  determined separately for each of the members of the combined
    26  group, and shall not be determined on a combined group basis, except  as
    27  otherwise  provided.   However, the credits shall be applied against the
    28  combined tax of the group. To the extent that  a  provision  of  section
    29  11-654  of  this  subchapter,  or  any  other applicable section of this
    30  subchapter,  limits  a  credit  to  the  fixed  dollar  minimum   amount
    31  prescribed in clause (iv) of subparagraph one of paragraph (e) of subdi-
    32  vision one of section 11-654 of this subchapter, such fixed dollar mini-
    33  mum amount shall be the fixed dollar minimum amount that is attributable
    34  to the designated agent of the combined group.
    35    (d)(1)  A  net  operating  loss  deduction is allowed in computing the
    36  combined business income base. Such deduction may reduce the tax on  the
    37  combined  business  income base to the higher of the tax on the combined
    38  capital or the fixed dollar minimum amount that is attributable  to  the
    39  designated  agent  of the combined group and the members of the combined
    40  group. A combined net operating loss deduction is equal to the amount of
    41  combined net operating loss or losses from one  or  more  taxable  years
    42  that are carried forward or carried back to a particular taxable year. A
    43  combined  net operating loss is the combined business loss incurred in a
    44  particular taxable year multiplied by the combined  business  allocation
    45  percentage  for  that year determined as provided in subdivision five of
    46  this section.
    47    (2) The combined net operating loss deduction and combined net operat-
    48  ing loss are also subject to the provisions contained in paragraphs  (a)
    49  through (g) of subdivision three of section 11-654.1 of this subchapter.
    50    (3)  In the case of a corporation that files a combined report, either
    51  in the year the net operating loss is incurred or in the year in which a
    52  deduction is claimed on account of the loss, the combined net  operating
    53  loss deduction is determined as if the combined group is a single corpo-
    54  ration  and,  to the extent possible and not otherwise inconsistent with
    55  this subdivision, is subject to the same limitations  that  would  apply
    56  for  federal income tax purposes under the internal revenue code and the

        A. 6009                            162
 
     1  code of federal regulations as if such corporation had  filed  for  such
     2  taxable  year  a  consolidated  federal  income tax return with the same
     3  corporations included in the combined report. If a corporation  files  a
     4  combined  report,  regardless  of  whether it filed a separate return or
     5  consolidated return for federal income tax purposes, the  net  operating
     6  loss  and  net  operating  loss deduction for the combined group must be
     7  computed as if the corporation had filed a consolidated return  for  the
     8  same corporations for federal income tax purposes.
     9    (4)  In general, any net operating loss carryover from a year in which
    10  a combined report was filed shall be based on the combined net operating
    11  loss of the group of corporations filing such report. The portion of the
    12  combined loss attributable to any member of the group that files a sepa-
    13  rate report for a succeeding taxable year will be an amount bearing  the
    14  same  relation  to  the  combined loss as the net operating loss of such
    15  corporation bears to the total net operating loss of all members of  the
    16  group  having such losses to the extent that they are taken into account
    17  in computing the combined net operating loss.
    18    (d-1) A prior net operating loss conversion subtraction is allowed  in
    19  computing the combined business income base, as provided in subdivisions
    20  one and two of section 11-654.1 of this subchapter. Such subtraction may
    21  reduce  the  tax on combined business income to the higher of the tax on
    22  combined capital or the fixed dollar minimum amount that is attributable
    23  to the designated agent of the combined group and  the  members  of  the
    24  combined group.
    25    (e)  Any  election made pursuant to paragraph (b) of subdivision five,
    26  paragraphs (b) and (c) of subdivision five-a of section 11-652  of  this
    27  subchapter,  and  paragraph (d) of subdivision three of section 11-654.1
    28  of this subchapter shall apply to all members of the combined group.
    29    (f)(1) In the case of a captive REIT or  captive  RIC  required  under
    30  this  section  to  be  included  in a combined report, entire net income
    31  shall be computed as required under subdivision seven (in the case of  a
    32  captive  REIT)  or  subdivision  eight (in the case of a captive RIC) of
    33  section 11-653 of this subchapter.  However,  the  deduction  under  the
    34  internal  revenue code for dividends paid by the captive REIT or captive
    35  RIC to any member of the affiliated group that includes the  corporation
    36  that  directly or indirectly owns over fifty percent of the voting stock
    37  of the captive REIT or captive RIC shall not be allowed.   For  purposes
    38  of  this  subparagraph,  the  term  "affiliated group" means "affiliated
    39  group" as defined in section fifteen hundred four of the internal reven-
    40  ue code, but without regard to the exceptions provided for in subsection
    41  (b) of that section.
    42    (2) In the case of a combinable  captive  insurance  company  required
    43  under  this  section  to  be  included  in a combined report, entire net
    44  income shall be computed as required by  subdivision  eight  of  section
    45  11-652 of this subchapter.
    46    (g) If more than one member of a combined group is eligible for any of
    47  the modifications described in paragraphs (q), (r) or (s) of subdivision
    48  eight  of  section  11-652  of  this  subchapter,  all such members must
    49  utilize the same modification.
    50    5. (a)  In  determining  the  business  allocation  percentage  for  a
    51  combined  report, the receipts, net income, net gains and other items of
    52  each member of the combined group, whether or not they are  a  taxpayer,
    53  are  included  and  intercorporate receipts, income and gains are elimi-
    54  nated. Receipts, net income, net gains and other items are sourced,  and
    55  the amounts allowed in the receipts fraction are determined, as provided
    56  in section 11-654.2 of this subchapter.

        A. 6009                            163
 
     1    (b)  An  election  made  to  allocate income and gains from qualifying
     2  financial instruments pursuant to subparagraph one of paragraph  (a)  of
     3  subdivision  five  of section 11-654.2 of this subchapter shall apply to
     4  all members of the combined group.
     5    6.  Every  member  of  the combined group that is subject to tax under
     6  this article shall be jointly and  severally  liable  for  the  tax  due
     7  pursuant to a combined report.
     8    7.  Each  combined  group  shall  appoint  a  designated agent for the
     9  combined group, which shall be a taxpayer. Only the designated agent may
    10  act on behalf of the members of the combined group for matters  relating
    11  to the combined report.
    12    §  11-655  Reports.  1.  Every corporation having an officer, agent or
    13  representative within the  city,  shall  annually  on  or  before  March
    14  fifteenth,  transmit  to  the commissioner of finance a report in a form
    15  prescribed by the commissioner of finance  (except  that  a  corporation
    16  which  reports  on  the basis of a fiscal year shall transmit its report
    17  within two and one-half months after the  close  of  its  fiscal  year),
    18  setting  forth  such  information  as  the  commissioner  of finance may
    19  prescribe and every taxpayer which ceases to do business in the city  or
    20  to  be  subject  to the tax imposed by this subchapter shall transmit to
    21  the commissioner of finance a report on the date of such cessation or at
    22  such other time as the commissioner of finance may require covering each
    23  year or period for which no report was theretofore filed. Every taxpayer
    24  shall also transmit such other reports and such facts and information as
    25  the commissioner of finance may require in the  administration  of  this
    26  subchapter. The commissioner of finance may grant a reasonable extension
    27  of time for filing reports whenever good cause exists.
    28    An  automatic  extension  of  six  months for the filing of its annual
    29  report shall be allowed any taxpayer if, within the time  prescribed  by
    30  either  of  the  preceding  paragraphs,  whichever  is  applicable, such
    31  taxpayer files with the  commissioner  of  finance  an  application  for
    32  extension  in  such form as the commissioner of finance may prescribe by
    33  regulation and pays on or before the date  of  such  filing  the  amount
    34  properly estimated as its tax.
    35    2.  Every  report  shall  have  annexed thereto a certification by the
    36  president,  vice-president,  treasurer,   assistant   treasurer,   chief
    37  accounting officer or another officer of the taxpayer duly authorized so
    38  to  act to the effect that the statements contained therein are true. In
    39  the case of an association, within the meaning  of  paragraph  three  of
    40  section (a) of section seventy-seven hundred one of the internal revenue
    41  code,  a  publicly-traded  partnership  treated  as  a  corporation  for
    42  purposes of the internal revenue code pursuant to section  seventy-seven
    43  hundred four thereof and any business conducted by a trustee or trustees
    44  wherein  interest  or  ownership  is  evidenced by certificates or other
    45  written instruments, such certification shall be made by any person duly
    46  authorized so to act on  behalf  of  such  association,  publicly-traded
    47  partnership or business. The fact that an individual's name is signed on
    48  a  certification  of  the report shall be prima facie evidence that such
    49  individual is authorized to sign and certify the report on behalf of the
    50  corporation. Blank forms of reports shall be furnished  by  the  commis-
    51  sioner  of  finance,  on application, but failure to secure such a blank
    52  shall not release any corporation from  the  obligation  of  making  any
    53  report required by this subchapter.
    54    2-a.  The  commissioner  of  finance  may  prescribe  regulations  and
    55  instructions requiring returns of information to be made  and  filed  in
    56  conjunction  with  the  reports  required  to  be filed pursuant to this

        A. 6009                            164
 
     1  section, relating to payments made to shareholders owning,  directly  or
     2  indirectly, individually or in the aggregate, more than fifty percent of
     3  the issued capital stock of the taxpayer, where such payments are treat-
     4  ed  as  payments  of  interest  in  the computation of entire net income
     5  reported on such reports.
     6    3. If the amount of taxable income or other basis of tax for any  year
     7  of  any taxpayer as returned to the United States treasury department or
     8  the New York state commissioner of taxation and finance  is  changed  or
     9  corrected  by  the  commissioner of internal revenue or other officer of
    10  the United States or the New York state  commissioner  of  taxation  and
    11  finance  or  other  competent  authority,  or where a renegotiation of a
    12  contract or subcontract with the United States or the state of New  York
    13  results  in a change in taxable income or other basis of tax, or where a
    14  recovery of a war loss results in a computation or recomputation of  any
    15  tax  imposed  by  the  United  States  or the state of New York, or if a
    16  taxpayer, pursuant to subsection (d) of section sixty-two hundred  thir-
    17  teen  of  the  internal revenue code, executes a notice of waiver of the
    18  restrictions provided in subsection (a) of said section, or if a taxpay-
    19  er, pursuant to subsection (f) of section one thousand eighty-one of the
    20  tax law, executes a notice of waiver of  the  restrictions  provided  in
    21  subsection  (c) of said section, such taxpayer shall report such changed
    22  or corrected taxable income or other basis of tax,  or  the  results  of
    23  such  renegotiation,  or  such  computation,  or  recomputation, or such
    24  execution of such notice of waiver and the changes or corrections of the
    25  taxpayer's federal or New York state taxable income or  other  basis  of
    26  tax  on  which  it  is  based, within ninety days (or one hundred twenty
    27  days, in the case of a taxpayer making  a  combined  report  under  this
    28  subchapter  for  such  year)  after such execution or the final determi-
    29  nation of such change or correction or renegotiation, or  such  computa-
    30  tion,  or  recomputation, or as required by the commissioner of finance,
    31  and shall concede the accuracy of such determination or state wherein it
    32  is erroneous. The allowance of a tentative  carryback  adjustment  based
    33  upon a net operating loss carryback or net capital loss carryback pursu-
    34  ant  to  section  sixty-four hundred eleven of the internal revenue code
    35  shall be treated as a final determination for purposes of this  subdivi-
    36  sion.  Any  taxpayer filing an amended return with such department shall
    37  also file within ninety days (or one hundred twenty days, in the case of
    38  a taxpayer making a combined report under this subchapter for such year)
    39  thereafter an amended report with the commissioner of finance.
    40    4. The provisions of section 11-654.3 of this subchapter  shall  apply
    41  to combined reports.
    42    5.  In  case  it  shall appear to the commissioner of finance that any
    43  agreement, understanding or arrangement exists between the taxpayer  and
    44  any other corporation or any person or firm, whereby the activity, busi-
    45  ness, income or capital of the taxpayer within the city is improperly or
    46  inaccurately  reflected,  the  commissioner of finance is authorized and
    47  empowered, in its discretion and in such manner as it may determine,  to
    48  adjust  items of income, deductions and capital, and to eliminate assets
    49  in computing any allocation percentage provided  only  that  any  income
    50  directly  traceable  thereto be also excluded from entire net income, so
    51  as equitably to determine the tax. Where (a) any taxpayer  conducts  its
    52  activity  or  business under any agreement, arrangement or understanding
    53  in such manner as either directly or indirectly to benefit  its  members
    54  or  stockholders,  or  any of them, or any person or persons directly or
    55  indirectly interested in such activity or business, by entering into any
    56  transaction at more or less than a fair price which, but for such agree-

        A. 6009                            165

     1  ment, arrangement or understanding, might have  been  paid  or  received
     2  therefor,  or  (b)  any taxpayer, a substantial portion of whose capital
     3  stock is owned either directly or  indirectly  by  another  corporation,
     4  enters into any transaction with such other corporation on such terms as
     5  to  create  an  improper loss or net income, the commissioner of finance
     6  may include in the entire net income of the taxpayer the  fair  profits,
     7  which, but for such agreement, arrangement or understanding, the taxpay-
     8  er  might  have  derived from such transaction. Where any taxpayer owns,
     9  directly or indirectly, more than fifty percent of the capital stock  of
    10  another  corporation  subject to tax under section fifteen hundred two-a
    11  of the tax law and fifty percent or less of whose gross receipts for the
    12  taxable year consist  of  premiums,  the  commissioner  of  finance  may
    13  include  in  the entire net income of the taxpayer, as a deemed distrib-
    14  ution, the amount of the net income of the other corporation that is  in
    15  excess of its net premium income.
    16    6.  An action may be brought at any time by the corporation counsel at
    17  the instance of the commissioner of finance  to  compel  the  filing  of
    18  reports due under this subchapter.
    19    7. Reports shall be preserved for five years, and thereafter until the
    20  commissioner of finance orders them to be destroyed.
    21    8.  Where  the  state  tax commission changes or corrects a taxpayer's
    22  sales and compensating use tax liability with respect to the purchase or
    23  use of items for which a sales or compensating use  tax  credit  against
    24  the  tax  imposed  by  this  subchapter  was claimed, the taxpayer shall
    25  report such change or correction to the commissioner of  finance  within
    26  ninety  days of the final determination of such change or correction, or
    27  as required by the commissioner of finance, and shall concede the  accu-
    28  racy of such determination or state wherein it is erroneous. Any taxpay-
    29  er filing an amended return or report relating to the purchase or use of
    30  such  items shall also file within ninety days thereafter a copy of such
    31  amended return or report with the commissioner of finance.
    32    § 11-656 Payment and lien of tax. 1. To the extent the tax imposed  by
    33  section  11-653  of  this subchapter shall not have been previously paid
    34  pursuant to section 11-658 of this subchapter:
    35    (a) such tax, or the balance thereof, shall be payable to the  commis-
    36  sioner  of  finance  in  full  at  the time the report is required to be
    37  filed; and
    38    (b) such tax, or the balance thereof, imposed on  any  taxpayer  which
    39  ceases to do business in the city or to be subject to the tax imposed by
    40  this  subchapter  shall be payable to the commissioner of finance at the
    41  time the report is required to be filed; all other  taxes  of  any  such
    42  taxpayer,  which  pursuant  to  the foregoing provisions of this section
    43  would otherwise be  payable  subsequent  to  the  time  such  report  is
    44  required to be filed, shall nevertheless be payable at such time.
    45    If  the taxpayer, within the time prescribed by section 11-655 of this
    46  subchapter, shall have applied for an automatic  extension  of  time  to
    47  file  its  annual  report  and  shall  have  paid to the commissioner of
    48  finance on or before the date such application is filed an amount  prop-
    49  erly  estimated  as provided by said section, the only amount payable in
    50  addition to the tax shall be interest at the underpayment  rate  set  by
    51  the  commissioner of finance pursuant to section 11-687 of this chapter,
    52  or, if no rate is set, at the rate of seven  and  one-half  percent  per
    53  annum  upon  the amount by which the tax, or the portion thereof payable
    54  on or before the date the report was required to be filed,  exceeds  the
    55  amount so paid. For purposes of the preceding sentence:

        A. 6009                            166
 
     1    (1)  an  amount  so  paid  shall be deemed properly estimated if it is
     2  either: (i) not less than ninety percent of the tax  as  finally  deter-
     3  mined,  or (ii) not less than the tax shown on the taxpayer's report for
     4  the preceding taxable year, if such preceding year was a taxable year of
     5  twelve months; and
     6    (2) the time when a report is required to be filed shall be determined
     7  without regard to any extension of time for filing such report.
     8    2.  The  commissioner  of  finance may grant a reasonable extension of
     9  time for payment of any tax imposed by this subchapter under such condi-
    10  tions as the commissioner of finance deems just and proper.
    11    3. Intentionally omitted.
    12    § 11-657 Declaration of estimated tax. 1. Every  taxpayer  subject  to
    13  the tax imposed by section 11-653 of this subchapter shall make a decla-
    14  ration of its estimated tax for the current privilege period, containing
    15  such  information  as the commissioner of finance may prescribe by regu-
    16  lations or  instructions,  if  such  estimated  tax  can  reasonably  be
    17  expected to exceed one thousand dollars.
    18    2.  The  term  "estimated tax" means the amount which a taxpayer esti-
    19  mates to be the tax imposed by section 11-653 of this subchapter for the
    20  current privilege period, less the amount which it estimates to  be  the
    21  sum of any credits allowable against the tax.
    22    3.  In the case of a taxpayer which reports on the basis of a calendar
    23  year, a declaration of estimated tax shall be filed on  or  before  June
    24  fifteenth  of  the current privilege period, except that if the require-
    25  ments of subdivision one of this section are first met:
    26    (a) after May thirty-first and before September first of such  current
    27  privilege  period, the declaration shall be filed on or before September
    28  fifteenth; or
    29    (b) after August  thirty-first  and  before  December  first  of  such
    30  current  privilege  period,  the declaration shall be filed on or before
    31  December fifteenth.
    32    4. A taxpayer may amend a declaration under regulations of the commis-
    33  sioner of finance.
    34    5. If, on or before February fifteenth of the succeeding year  in  the
    35  case  of  a  taxpayer  which  reports on the basis of a calendar year, a
    36  taxpayer files its report for the year  for  which  the  declaration  is
    37  required,  and pays therewith the balance, if any, of the full amount of
    38  the tax shown to be due on the report:
    39    (a) such report shall be considered as its declaration if no  declara-
    40  tion  is  required  to  be  filed during the calendar or fiscal year for
    41  which the tax was imposed, but is otherwise required to be filed  on  or
    42  before December fifteenth pursuant to subdivision three of this section;
    43  and
    44    (b)  such  report  shall  be  considered as the amendment permitted by
    45  subdivision four of this section to  be  filed  on  or  before  December
    46  fifteenth  if  the tax shown on the report is greater than the estimated
    47  tax shown on a declaration previously made.
    48    6. This section shall apply to  privilege  periods  of  twelve  months
    49  other  than  a  calendar  year by the substitution of the months of such
    50  fiscal year for the corresponding months specified in this section.
    51    7. If the privilege period for which  a  tax  is  imposed  by  section
    52  11-653  of  this  subchapter  is less than twelve months, every taxpayer
    53  required to make a declaration of estimated tax for such privilege peri-
    54  od shall make such a declaration in accordance with regulations  of  the
    55  commissioner of finance.

        A. 6009                            167
 
     1    8.  The  commissioner  of  finance may grant a reasonable extension of
     2  time, not to exceed three months, for  the  filing  of  any  declaration
     3  required  pursuant  to  this section, on such terms and conditions as it
     4  may require.
     5    §  11-658  Payments  on  account  of  estimated tax. 1. Every taxpayer
     6  subject to the tax imposed by section 11-653 of  this  subchapter  shall
     7  pay  with  the  report  required to be filed for the preceding privilege
     8  period, if any, or with an application for extension  of  the  time  and
     9  filing  such  report,  an  amount equal to twenty-five per centum of the
    10  preceding year's tax if such preceding year's tax exceeded one  thousand
    11  dollars.
    12    2.  The  estimated  tax  with  respect to which a declaration for such
    13  privilege period is required shall be paid, in the case  of  a  taxpayer
    14  which reports on the basis of a calendar year, as follows:
    15    (a) If the declaration is filed on or before June fifteenth, the esti-
    16  mated tax shown thereon, after applying thereto the amount, if any, paid
    17  during  the  same  privilege  period pursuant to subdivision one of this
    18  section, shall be paid in three equal installments. One of such install-
    19  ments shall be paid at the time of the filing of  the  declaration,  one
    20  shall  be  paid  on  the  following  September fifteenth, and one on the
    21  following December fifteenth.
    22    (b) If the declaration is filed after June  fifteenth  and  not  after
    23  September  fifteenth of such privilege period, and is not required to be
    24  filed on or before June fifteenth of  such  period,  the  estimated  tax
    25  shown  on  such  declaration, after applying thereto the amount, if any,
    26  paid during the same privilege period pursuant  to  subdivision  one  of
    27  this  section,  shall  be  paid  in  two equal installments. One of such
    28  installments shall be paid at the time of the filing of the  declaration
    29  and one shall be paid on the following December fifteenth.
    30    (c)  If  the  declaration  is  filed after September fifteenth of such
    31  privilege period, and is not required to be filed on or before September
    32  fifteenth of such privilege period, the  estimated  tax  shown  on  such
    33  declaration,  after applying thereto the amount, if any, paid in respect
    34  to such privilege period pursuant to subdivision one  of  this  section,
    35  shall be paid in full at the time of the filing of the declaration.
    36    (d) If the declaration is filed after the time prescribed therefor, or
    37  after  the  expiration of any extension of time therefor, paragraphs (b)
    38  and (c) of this subdivision shall not apply, and there shall be paid  at
    39  the  time of such filing all installments of estimated tax payable at or
    40  before such time, and the remaining installments shall be  paid  at  the
    41  times  at which, and in the amounts in which, they would have been paya-
    42  ble if the declaration had been filed when due.
    43    3. If any amendment of a declaration is filed, the remaining  install-
    44  ments,  if any, shall be ratably increased or decreased (as the case may
    45  be) to reflect any increase or decrease in the estimated tax  by  reason
    46  of  such  amendment,  and  if  any  amendment  is  made  after September
    47  fifteenth of the privilege period, any increase in the estimated tax  by
    48  reason thereof shall be paid at the time of making such amendment.
    49    4.  Any amount paid shall be applied after payment as a first install-
    50  ment against the estimated tax of the taxpayer for the current privilege
    51  period shown on the declaration required to be filed pursuant to section
    52  11-657 of this subchapter or, if no  declaration  of  estimated  tax  is
    53  required  to be filed by the taxpayer pursuant to such section, any such
    54  amount shall be considered a payment on account of the tax shown on  the
    55  report required to be filed by the taxpayer for such privilege period.

        A. 6009                            168
 
     1    5. Notwithstanding the provisions of section 11-679 of this chapter or
     2  of  section  three-a  of  the  general  municipal law, if an amount paid
     3  pursuant to subdivision one of this section exceeds the tax shown on the
     4  report required to be filed by the taxpayer  for  the  privilege  period
     5  during  which the amount was paid, interest shall be allowed and paid on
     6  the amount by which the amount so  paid  pursuant  to  such  subdivision
     7  exceeds  such  tax,  at  the overpayment rate set by the commissioner of
     8  finance pursuant to section 11-687 of this chapter, or, if  no  rate  is
     9  set,  at  the rate of four percent per annum from the date of payment of
    10  the amount so paid pursuant to such subdivision to the fifteenth day  of
    11  the  third  month following the close of the privilege period, provided,
    12  however, that no interest shall be allowed or paid under  this  subdivi-
    13  sion  if  the amount thereof is less than one dollar or if such interest
    14  becomes payable solely because of a carryback of a net operating loss in
    15  a subsequent privilege period.
    16    6. As used in this section, "the preceding year's tax" means  the  tax
    17  imposed  upon  the taxpayer by section 11-653 of this subchapter for the
    18  preceding calendar or fiscal year, or, for  purposes  of  computing  the
    19  first  installment  of  estimated tax when an application has been filed
    20  for extension of the time for filing the report required to be filed for
    21  such preceding calendar or fiscal year, the  amount  properly  estimated
    22  pursuant  to  section  11-657 of this subchapter as the tax imposed upon
    23  the taxpayer for such calendar or fiscal year.
    24    7. This section shall apply to a privilege period of less than  twelve
    25  months in accordance with regulations of the commissioner of finance.
    26    8.  The provisions of this section shall apply to privilege periods of
    27  twelve months other than a calendar year  by  the  substitution  of  the
    28  months  of  such  fiscal  year for the corresponding months specified in
    29  such provisions.
    30    9. The commissioner of finance may grant  a  reasonable  extension  of
    31  time,  not to exceed six months, for payment of any installment of esti-
    32  mated tax required pursuant to this section, on such  terms  and  condi-
    33  tions  as the commissioner of finance may require including the furnish-
    34  ing of a bond or other  security  by  the  taxpayer  in  an  amount  not
    35  exceeding  twice  the amount for which any extension of time for payment
    36  is granted, provided however that interest at the underpayment rate  set
    37  by  the  commissioner  of  finance  pursuant  to  section 11-687 of this
    38  subchapter, or, if no rate is set, at the rate  of  seven  and  one-half
    39  percent  per  annum for the period of the extension shall be charged and
    40  collected on the amount for which any extension of time for  payment  is
    41  granted under this subdivision.
    42    10. A taxpayer may elect to pay any installment of estimated tax prior
    43  to the date prescribed in this section for payment thereof.
    44    11. Intentionally omitted.
    45    §  11-659 Collection of taxes. Every foreign corporation (other than a
    46  moneyed corporation) subject  to  the  provisions  of  this  subchapter,
    47  except  a  corporation  having  authority  to  do  business by virtue of
    48  section thirteen hundred five of the  business  corporation  law,  shall
    49  file  in  the  department  of  state a certificate of designation in its
    50  corporate name, signed and acknowledged by its president or a  vice-pre-
    51  sident  or  its secretary or treasurer, under its corporate seal, desig-
    52  nating the secretary of state as its agent  upon  whom  process  in  any
    53  action  provided for by this subchapter may be served within this state,
    54  and setting forth an address to which the secretary of state shall  mail
    55  a  copy  of any such process against the corporation which may be served
    56  upon the secretary of state. In case any  such  corporation  shall  have

        A. 6009                            169
 
     1  failed  to  file  such certificate of designation, it shall be deemed to
     2  have designated the secretary of state as its agent upon whom such proc-
     3  ess against it may be served; and until  a  certificate  of  designation
     4  shall  have  been filed the corporation shall be deemed to have directed
     5  the secretary of state to mail copies of process served upon him or  her
     6  to  the  corporation  at its last known office address within or without
     7  the state. When a certificate of designation  has  been  filed  by  such
     8  corporation  the  secretary of state shall mail copies of process there-
     9  after served upon the secretary of state to the  address  set  forth  in
    10  such  certificate.  Any  such corporation, from time to time, may change
    11  the address to which the secretary of state is directed to  mail  copies
    12  of  process, by filing a certificate to that effect executed, signed and
    13  acknowledged in like manner as a certificate of  designation  as  herein
    14  provided.  Service  of  process  upon  any  such corporation or upon any
    15  corporation having  a  certificate  of  authority  under  section  eight
    16  hundred five of the limited liability company law or having authority to
    17  do  business  by virtue of section thirteen hundred five of the business
    18  corporation law, in any action commenced at any  time  pursuant  to  the
    19  provisions  of  this  subchapter,  may be made by either: (a) personally
    20  delivering to and leaving with the secretary of state, a  deputy  secre-
    21  tary of state or with any person authorized by the secretary of state to
    22  receive  such  service  duplicate  copies  thereof  at the office of the
    23  department of state in the city of Albany, in which event the  secretary
    24  of  state  shall  forthwith  send  by  registered  mail,  return receipt
    25  requested, one of such copies to the corporation at the  address  desig-
    26  nated  by  it  or at its last known office address within or without the
    27  state, or (b) personally delivering to and leaving with the secretary of
    28  state, a deputy secretary of state or with any person authorized by  the
    29  secretary of state to receive such service, a copy thereof at the office
    30  of  the  department  of  state in the city of Albany and by delivering a
    31  copy thereof to, and leaving such copy with, the president,  vice-presi-
    32  dent, secretary, assistant secretary, treasurer, assistant treasurer, or
    33  cashier  of  such  corporation,  or the officer performing corresponding
    34  functions under another name, or a director or managing  agent  of  such
    35  corporation,  personally  without  the  state.    Proof of such personal
    36  service without the state shall be filed with the clerk of the court  in
    37  which  the  action is pending within thirty days after such service, and
    38  such service shall be complete ten days after proof thereof is filed.
    39    § 11-660 Limitations of time. The provisions of the civil practice law
    40  and rules relative to the limitation of time enforcing  a  civil  remedy
    41  shall  not  apply  to  any proceeding or action taken to levy, appraise,
    42  assess, determine or enforce  the  collection  of  any  tax  or  penalty
    43  prescribed by this subchapter, provided, however, that as to real estate
    44  in  the  hands of persons who are owners thereof who would be purchasers
    45  in good faith but for such tax or penalty and as to  the  lien  on  real
    46  estate of mortgages held by persons who would be holders thereof in good
    47  faith  but  for  such tax or penalty, all such taxes and penalties shall
    48  cease to be a lien on such real estate as  against  such  purchasers  or
    49  holders  after  the  expiration  of  ten  years from the date such taxes
    50  became due and payable. The limitations herein provided  for  shall  not
    51  apply to any transfer from a corporation to a person or corporation with
    52  intent  to  avoid  payment  of  any taxes, or where with like intent the
    53  transfer is made to a grantee corporation,  or  any  subsequent  grantee
    54  corporation,  controlled  by  such grantor or which has any community of
    55  interest with it, either through stock ownership or otherwise.

        A. 6009                            170
 
     1    § 2. Subparagraph (A) of paragraph 2 of  subdivision  (f)  of  section
     2  11-508  of  the administrative code of the city of New York, as added by
     3  chapter 485 of the laws of 1994, is amended to read as follows:
     4    (A)  In the case of an issuer or obligor subject to tax under subchap-
     5  ter two or three-A of chapter six of this title, or subject to tax as  a
     6  utility  corporation  under  chapter  eleven of this title, the issuer's
     7  allocation percentage shall be the percentage of the appropriate measure
     8  (as defined hereinafter) which is required to be  allocated  within  the
     9  city on the report or reports, if any, required of the issuer or obligor
    10  under  chapter  six  or eleven of this title for the preceding year. The
    11  appropriate measure referred to in the preceding sentence shall  be:  in
    12  the case of an issuer or obligor subject to subchapter two or three-A of
    13  chapter  six of this title, entire capital; and in the case of an issuer
    14  or obligor subject to chapter eleven of this title as a  utility  corpo-
    15  ration, gross income.
    16    §  3.  The  administrative  code of the city of New York is amended by
    17  adding a new section 11-602.1 to read as follows:
    18    § 11-602.1 Application of this subchapter. 1. For taxable years begin-
    19  ning on or after January first, two thousand fifteen,  the  tax  imposed
    20  under  this subchapter shall only apply to a corporation that (a) has an
    21  election in effect under subsection  (a)  of  section  thirteen  hundred
    22  sixty-two  of the internal revenue code of 1986, as amended, or (b) is a
    23  qualified subchapter S subsidiary within the meaning of paragraph  three
    24  of  subsection (b) of section thirteen hundred sixty-one of the internal
    25  revenue code of 1986, as amended.
    26    2. For taxable years beginning on or after January first, two thousand
    27  fifteen, the tax imposed under this subchapter  shall  not  apply  to  a
    28  corporation  that  is  not  described in subdivision one of this section
    29  except to the extent provided in subchapter three-A of this chapter.
    30    3. Cross-Reference. For the taxation  of  corporations  that  are  not
    31  described  in  subdivision  one of this section, that were taxable under
    32  this subchapter for tax years beginning before January first, two  thou-
    33  sand fifteen, see subchapter three-A of this chapter.
    34    §  4.  Subdivision (a) of section 11-639 of the administrative code of
    35  the city of New York is amended to read as follows:
    36    (a) (1) For the privilege of doing business in the city in a corporate
    37  or organized capacity, a tax, computed  under  section  11-643  of  this
    38  part,  is  hereby annually imposed on every banking corporation for each
    39  of its taxable years, or any part thereof, beginning on or after January
    40  first, nineteen hundred seventy-three and ending December  thirty-first,
    41  two thousand fourteen.
    42    (2)  For the privilege of doing business in the city in a corporate or
    43  organized capacity, a tax, computed under section 11-643 of  this  part,
    44  is hereby annually imposed on every banking corporation for each taxable
    45  year,  or  any  part  thereof, commencing on or after January first, two
    46  thousand fifteen, where such banking corporation (i) has an election  in
    47  effect under subsection (a) of section thirteen hundred sixty-two of the
    48  internal  revenue  code  of  1986,  as  amended,  or (ii) is a qualified
    49  subchapter S  subsidiary  within  the  meaning  of  paragraph  three  of
    50  subsection  (b)  of  section  thirteen hundred sixty-one of the internal
    51  revenue code of 1986, as amended.
    52    § 5. Section 11-639 of the administrative code of the city of New York
    53  is amended by adding a new subdivision (d) to read as follows:
    54    (d) Cross-Reference. For the taxation of  corporations  that  are  not
    55  described in paragraph two of subdivision (a) of this section, that were

        A. 6009                            171
 
     1  taxable  under  this  subchapter  for tax years beginning before January
     2  first, two thousand fifteen, see subchapter three-A of this chapter.
     3    §  6. Paragraph 2 of subdivision (b) of section 11-641 of the adminis-
     4  trative code of the city of New York, as amended by chapter 525  of  the
     5  laws of 1988, is amended to read as follows:
     6    (2)  taxes  on or measured by income or profits paid or accrued within
     7  the taxable year to the United States, or any of its possessions  or  to
     8  any  foreign country and taxes imposed under article nine, nine-A, thir-
     9  teen-A or thirty-two of the tax law as in  effect  on  December  thirty-
    10  first,  two  thousand  fourteen  and  any tax imposed under this part or
    11  subchapter two or three-A of this chapter;
    12    § 7. Subdivision 1 and paragraph  (a)  of  subdivision  2  of  section
    13  11-671 of the administrative code of the city of New York are amended to
    14  read as follows:
    15    1.  General.  The  provisions  of  this  subchapter shall apply to the
    16  administration of and the procedures with respect to the  taxes  imposed
    17  by subchapters two, three, three-A and four of this chapter.
    18    (a)  the  term  "named  subchapters"  means  subchapters  two, threeor
    19  three-A and four of this chapter;
    20    § 8. Paragraph (a) of subdivision 5 and subdivisions 7,  8  and  9  of
    21  section 11-672 of the administrative code of the city of New York, para-
    22  graph  (a)  of  subdivision  5  as amended by chapter 525 of the laws of
    23  1988, and paragraph (b) of subdivision 9 as amended by  chapter  808  of
    24  the laws of 1992, are amended to read as follows:
    25    (a) If the taxpayer fails to comply with subchapter two [or], three or
    26  three-A of this chapter in not reporting a change or correction or rene-
    27  gotiation,  or  computation  or  recomputation  of  tax,  increasing  or
    28  decreasing its federal or New York  state  taxable  income,  alternative
    29  minimum  taxable income or other basis of tax as reported on its federal
    30  or New York state income tax return or in  not  reporting  a  change  or
    31  correction  or  renegotiation,  or  computation or recomputation of tax,
    32  which is treated in the same manner as  if  it  were  a  deficiency  for
    33  federal  or  New  York  state  income  tax  purposes or in not filing an
    34  amended return or in not reporting the execution of a notice  of  waiver
    35  executed  pursuant to subsection (d) of section six thousand two hundred
    36  thirteen of the internal revenue code or pursuant to subdivision (f)  of
    37  section  one thousand eighty-one of the tax law, instead of the mode and
    38  time of assessment provided for in subdivision two of this section,  the
    39  commissioner  of  finance  may  assess  a  deficiency  based  upon  such
    40  increased or decreased federal or New York state taxable income,  alter-
    41  native  minimum  taxable  income or other basis of tax by mailing to the
    42  taxpayer a notice of additional tax due specifying  the  amount  of  the
    43  deficiency,  and  such deficiency, together with the interest, additions
    44  to tax and penalties stated in such notice, shall be deemed assessed  on
    45  the date such notice is mailed unless within thirty days after the mail-
    46  ing  of  such notice a report of the federal or New York state change or
    47  correction or renegotiation, or computation or recomputation of tax,  or
    48  an  amended  return,  where  such  return was required by subchapter two
    49  [or], three or three-A, is filed  accompanied  by  a  statement  showing
    50  wherein  such federal or New York state determination and such notice of
    51  additional tax due are erroneous.
    52    7. Two or more corporations.  In  case  of  a  combined  return  under
    53  subchapter  two  or  three-A  or  a consolidated return under subchapter
    54  three of two or more  corporations,  the  commissioner  of  finance  may
    55  determine  a  deficiency  of  tax  under subchapter two [or subchapter],
    56  three or three-A of this chapter with respect to the entire tax due upon

        A. 6009                            172
 
     1  such return against any taxpayer included therein.  In  the  case  of  a
     2  taxpayer  which might have been included in such a return under subchap-
     3  ter two [or subchapter], three or three-A of this chapter when  the  tax
     4  was  originally  reported,  the  commissioner of finance may determine a
     5  deficiency of tax under subchapter two [or], three or  three-A  of  this
     6  chapter  against  such  taxpayer  and  against any other taxpayers which
     7  might have been included in such a return.
     8    8. Deficiency defined. For the purposes of this  subchapter,  a  defi-
     9  ciency  means the amount of the tax imposed by the named subchapters, or
    10  any of them, less: (a) the amount shown as the tax upon  the  taxpayer's
    11  return  (whether the return was made or the tax computed by it or by the
    12  commissioner of finance), and less (b) the amounts  previously  assessed
    13  (or  collected  without  assessment)  as  a  deficiency and plus (c) the
    14  amount of any rebates. For the  purpose  of  this  definition,  the  tax
    15  imposed by subchapter two [or], three or three-A of this chapter and the
    16  tax  shown  on the return shall both be determined without regard to any
    17  payment of estimated tax; and a rebate means so much  of  an  abatement,
    18  credit, refund or other repayment (whether or not erroneous) as was made
    19  on  the  ground that the amounts entering into the definition of a defi-
    20  ciency showed a balance in favor of the taxpayer.
    21    9. Exception where change or correction of sales and compensating  use
    22  tax liability is not reported.
    23    (a)  If  a  taxpayer fails to comply with subchapter two or three-A of
    24  this chapter in not reporting a change or correction of  its  sales  and
    25  compensating  use  tax  liability  or in not filing a copy of an amended
    26  return or report relating to its sales and compensating use tax  liabil-
    27  ity, instead of the mode and time of assessment provided for in subdivi-
    28  sion two of this section, the commissioner of finance may assess a defi-
    29  ciency  based  upon such changed or corrected sales and compensating use
    30  tax liability, as same relates to credits claimed under  subchapter  two
    31  or three-A of this chapter, by mailing to the taxpayer a notice of addi-
    32  tional  tax  due specifying the amount of the deficiency, and such defi-
    33  ciency, together with the interest, additions to tax and penalties stat-
    34  ed in such notice, shall be deemed assessed on the date such  notice  is
    35  mailed  unless  within  thirty  days  after the mailing of such notice a
    36  report of the state change or correction or a copy of an amended  return
    37  or report, where such copy was required by subchapter two or three-A, is
    38  filed  accompanied  by  a  statement showing wherein such state determi-
    39  nation and such notice of additional tax due are erroneous.
    40    (b) Such notice shall not be considered as a notice of deficiency  for
    41  the  purposes of this section, subdivision six of section 11-678 (limit-
    42  ing credits or refunds after petition to the tax appeals  tribunal),  or
    43  subdivision  two of section 11-680 (authorizing the filing of a petition
    44  with the tax appeals tribunal based on  a  notice  of  deficiency),  nor
    45  shall  such  assessment  or  the collection thereof be prohibited by the
    46  provisions of subdivision three of this section.
    47    (c) If the taxpayer has terminated its existence, a  notice  of  addi-
    48  tional  tax due may be mailed to its last known address in or out of the
    49  city, and such notice shall be sufficient for purposes of this  subchap-
    50  ter. If the commissioner of finance has received notice that a person is
    51  acting  for  the taxpayer in a fiduciary capacity, a copy of such notice
    52  shall also be mailed to the fiduciary named in such notice.
    53    § 9. Subdivisions 1 and 3 of section 11-673 of the administrative code
    54  of the city of New York, the first undesignated paragraph of subdivision
    55  1 as amended by chapter 808 of the laws of 1992, are amended to read  as
    56  follows:

        A. 6009                            173
 
     1    1.  Assessment date. The amount of tax which a return shows to be due,
     2  or the amount of tax which a return would have shown to be due but for a
     3  mathematical error, shall be deemed to be assessed on the date of filing
     4  of the return (including any amended return showing an increase of tax).
     5  If  a notice of deficiency has been mailed, the amount of the deficiency
     6  shall be deemed to be assessed on the date specified in subdivision  two
     7  of  section  11-672  of this subchapter if no petition is both served on
     8  the commissioner of finance and filed with the tax appeals tribunal,  or
     9  if a petition is so served and filed, then upon the date when a decision
    10  of  the  tax  appeals tribunal establishing the amount of the deficiency
    11  becomes final. If a report  or  an  amended  return  filed  pursuant  to
    12  subchapter two [or], three or three-A of this chapter concedes the accu-
    13  racy  of  a federal or New York state adjustment or change or correction
    14  or renegotiation or computation or recomputation of tax, any  deficiency
    15  in  tax  under  subchapter  two  [or],  three or three-A of this chapter
    16  resulting therefrom shall be deemed to be assessed on the date of filing
    17  such report or amended return,  and  such  assessment  shall  be  timely
    18  notwithstanding section 11-674 of this chapter.
    19    If  a report filed pursuant to subchapter two or three-A of this chap-
    20  ter concedes the accuracy of a state change or correction of  sales  and
    21  compensating  use  tax liability, any deficiency in tax under subchapter
    22  two or three-A of this  chapter  resulting  therefrom  shall  be  deemed
    23  assessed on the date of filing such report, and such assessment shall be
    24  timely notwithstanding section 11-674 of this chapter.
    25    If  a  notice of additional tax due, as prescribed in subdivision five
    26  of section 11-672 of this chapter, has been mailed, the  amount  of  the
    27  deficiency  shall be deemed to be assessed on the date specified in such
    28  subdivision unless within thirty days after the mailing of such notice a
    29  report of the  federal  or  New  York  state  adjustment  or  change  or
    30  correction  or  renegotiation or computation or recomputation of tax, or
    31  an amended return, where such return  was  required  by  subchapter  two
    32  [or], three or three-A of this chapter, is filed accompanied by a state-
    33  ment  showing  wherein  such federal or New York state determination and
    34  such notice of additional tax due are erroneous.
    35    If a notice of additional tax due, as prescribed in  subdivision  nine
    36  of section 11-672 of this subchapter, has been mailed, the amount of the
    37  deficiency  shall be deemed to be assessed on the date specified in such
    38  subdivision unless within thirty days after the mailing of such notice a
    39  report of the state change or correction, or a copy of an amended return
    40  or report, where such copy was required by subchapter two or three-A  of
    41  this  chapter,  is filed accompanied by a statement showing wherein such
    42  state determination and such notice of additional tax due are erroneous.
    43    Any amount paid as a tax or in respect of a tax,  other  than  amounts
    44  paid  as  estimated tax, shall be deemed to be assessed upon the date of
    45  receipt of payment notwithstanding any other provisions.
    46    3. Estimated tax. No unpaid amount of estimated tax  under  subchapter
    47  two [or], three or three-A of this chapter shall be assessed.
    48    §  10.  Subdivisions  3  and 4 of section 11-674 of the administrative
    49  code of the city of New York, subparagraph 3 of paragraph (a) and  para-
    50  graph (c) of subdivision 3 as amended by chapter 525 of the laws of 1988
    51  and  paragraph (d) of subdivision 3 as amended by local law number 57 of
    52  the city of New York for the year 2001, are amended to read as follows:
    53    3. Exceptions.
    54    (a) Assessment at any time. The tax may be assessed at any time if:
    55    (1) no return is filed,
    56    (2) a false or fraudulent return is filed with intent to evade tax,

        A. 6009                            174

     1    (3) in the case of the tax imposed under subchapter two [or], three or
     2  three-A of this chapter, the taxpayer fails to file a report or  amended
     3  return  required  thereunder,  in  respect of an increase or decrease in
     4  federal or New York state taxable income,  alternative  minimum  taxable
     5  income  or  other  basis  of tax or federal or New York state tax, or in
     6  respect of a change or correction or renegotiation or in respect of  the
     7  execution  of a notice of waiver report of which is required thereunder,
     8  or computation or recomputation of tax, which is  treated  in  the  same
     9  manner  as  if it were a deficiency for federal or New York state income
    10  tax purposes, or
    11    (4) in the case of the tax imposed under subchapter two or three-A  of
    12  this  chapter,  the taxpayer fails to file a report or amended return or
    13  report required thereunder, in respect of  a  change  or  correction  of
    14  sales  and  compensating  use tax liability, relating to the purchase or
    15  use of items for which a sales or compensating use  tax  credit  against
    16  the tax imposed by subchapter two or three-A was claimed.
    17    (b)  Extension  by agreement. Where, before the expiration of the time
    18  prescribed in this section for the assessment of tax, both  the  commis-
    19  sioner  of  finance  and  the  taxpayer have consented in writing to its
    20  assessment after such time, the tax may be assessed at any time prior to
    21  the expiration of the period agreed upon. The period so agreed upon  may
    22  be  extended by subsequent agreements in writing made before the expira-
    23  tion of the period previously agreed upon.
    24    (c) Report of federal or New York state change or correction.  In  the
    25  case  of  the tax imposed under subchapter two [or], three or three-A of
    26  this chapter, if the taxpayer files a report or amended return  required
    27  thereunder, in respect of an increase or decrease in federal or New York
    28  state  taxable income, alternative minimum taxable income or other basis
    29  of tax or federal or New York state tax, or in respect of  a  change  or
    30  correction  or renegotiation, or in respect of the execution of a notice
    31  of waiver report of which is  required  thereunder,  or  computation  or
    32  recomputation  of tax, which is treated in the same manner as if it were
    33  a deficiency for federal or New York  state  income  tax  purposes,  the
    34  assessment  (if  not  deemed  to  have  been made upon the filing of the
    35  report or amended return) may be made at any time within two years after
    36  such report or amended return was filed. The amount of  such  assessment
    37  of tax shall not exceed the amount of the increase in city tax attribut-
    38  able to such federal or New York state change or correction or renegoti-
    39  ation,  or  computation  or recomputation of tax. The provisions of this
    40  paragraph shall not affect the time within which or the amount for which
    41  an assessment may otherwise be made.
    42    (d) Deficiency attributable to carry back.  If  a  deficiency  of  tax
    43  under  subchapter  two or three-A of this chapter is attributable to the
    44  application to taxpayer of a net operating loss carry back or a  capital
    45  loss  carry  back,  it may be assessed at any time that a deficiency for
    46  the taxable year of the loss may be assessed.
    47    (e) Recovery of erroneous refund. An erroneous refund shall be consid-
    48  ered an underpayment of tax on the date made, and  an  assessment  of  a
    49  deficiency  arising  out  of an erroneous refund may be made at any time
    50  within two years from the making of the refund, except that the  assess-
    51  ment  may  be made within five years from the making of the refund if it
    52  appears that any part of the refund was induced by fraud or misrepresen-
    53  tation of a material fact.
    54    (f) Request for prompt assessment. The tax shall  be  assessed  within
    55  eighteen months after written request therefor (made after the return is
    56  filed)  by the taxpayer or by a fiduciary representing the taxpayer, but

        A. 6009                            175
 
     1  not more than three years after the return was filed, except  as  other-
     2  wise provided in this subdivision and subdivision four. This subdivision
     3  shall not apply unless:
     4    (1) (A) such written request notifies the commissioner of finance that
     5  the  taxpayer  contemplates  dissolution  at or before the expiration of
     6  such eighteen-month period, (B) the dissolution is in good  faith  begun
     7  before the expiration of such eighteen-month period, (C) the dissolution
     8  is completed;
     9    (2) (A) such written request notifies the commissioner of finance that
    10  a  dissolution  has in good faith been begun, and (B) the dissolution is
    11  completed; or
    12    (3) a dissolution has been completed at the time such written  request
    13  is made.
    14    (g)  Change  of  the allocation of taxpayer's income or capital.  [No]
    15  (1) With regard to taxable years beginning  before  January  first,  two
    16  thousand  fifteen, no change of the allocation of income or capital upon
    17  which the taxpayer's return (or any  additional  assessment)  was  based
    18  shall  be  made where an assessment of tax is made during the additional
    19  period of limitation under subparagraph three or four of paragraph  (a),
    20  or  under  paragraph  (c), (d) or (i); and where any such assessment has
    21  been made, or where a notice  of  deficiency  has  been  mailed  to  the
    22  taxpayer  on the basis of any such proposed assessment, no change of the
    23  allocation of income or capital shall be made in  a  proceeding  on  the
    24  taxpayer's  claim  for  refund  of  such assessment or on the taxpayer's
    25  petition for redetermination of such deficiency.
    26    (2) With regard to taxable years beginning on or after January  first,
    27  two  thousand  fifteen, no change of the allocation of income or capital
    28  upon which the taxpayer's return  (or  any  additional  assessment)  was
    29  based  shall be made where an assessment of tax is made during the addi-
    30  tional period of limitation under subparagraph three or  four  of  para-
    31  graph  (a) or under paragraph (c), (d) or (i), except to the extent such
    32  assessment is based on an increase or decrease in New York state taxable
    33  income or other basis of tax or New  York  state  tax,  or  based  on  a
    34  change, correction or renegotiation of tax, or based on the execution of
    35  a  notice  of waiver report which is required thereunder, or computation
    36  or recomputation of tax, which is treated in the same manner  as  if  it
    37  were  a deficiency for New York state income tax purposes; and where any
    38  such assessment has been made, or where a notice of deficiency has  been
    39  mailed  to the taxpayer on the basis of any such proposed assessment, no
    40  change of the allocation of  income  or  capital  shall  be  made  in  a
    41  proceeding  on  the taxpayer's claim for refund of such assessment or on
    42  the taxpayer's petition for redetermination of such  deficiency,  except
    43  to the extent such assessment is based on an increase or decrease in New
    44  York  state  taxable income or other basis of tax or New York state tax,
    45  or based on a change or correction or renegotiation of tax, or based  on
    46  the execution of a notice of waiver report which is required thereunder,
    47  or  computation  or  recomputation  of tax, which is treated in the same
    48  manner as if it were an  overpayment  for  New  York  state  income  tax
    49  purposes.
    50    (h)  Report  concerning  waste  treatment  facility. Under the circum-
    51  stances described in subparagraph three of paragraph (g) of  subdivision
    52  eight  of  section  11-602  of  this chapter or in subparagraph three of
    53  paragraph (g) of subdivision eight of section 11-652  of  this  chapter,
    54  the  tax  may  be  assessed  within  three years after the filing of the
    55  report containing the information required by such paragraph.

        A. 6009                            176
 
     1    (i) Report of changed or corrected  sales  and  compensating  use  tax
     2  liability.  In the case of a tax imposed under subchapter two or three-A
     3  of this chapter, if the taxpayer files a report  or  amended  return  or
     4  report  required  thereunder,  in  respect  of a change or correction of
     5  sales  and compensating use tax liability, the assessment (if not deemed
     6  to have been made upon the filing of the report) may be made at any time
     7  within two years after such report  or  amended  return  or  report  was
     8  filed.  The amount of such assessment of tax shall not exceed the amount
     9  of the increase in  city  tax  attributable  to  such  state  change  or
    10  correction.   The provisions of this paragraph shall not affect the time
    11  within which or the amount for which  an  assessment  may  otherwise  be
    12  made.
    13    4.  Omission  of income on return. The tax may be assessed at any time
    14  within six years after the return was filed if  a  taxpayer  omits  from
    15  gross  income required to be reported on a return under any of the named
    16  subchapters an amount properly includable therein which is in excess  of
    17  twenty-five  per  centum  of  the  amount  of gross income stated in the
    18  return.
    19    For the purposes of this subdivision:
    20    (a) the term "gross income" means gross income for federal income  tax
    21  purposes  as  reportable  on a return under subchapter two or three-A of
    22  this chapter and "gross  earnings",  "gross  income,"  "gross  operating
    23  income" and "gross direct premiums less return premiums," as those terms
    24  are used in whichever of the named subchapters is applicable;
    25    (b)  there shall not be taken into account any amount which is omitted
    26  in the return if such amount is disclosed in the return, or in a  state-
    27  ment attached to the return, in a manner adequate to apprise the commis-
    28  sioner of finance of the nature and amount of such item.
    29    §  11.  Subdivisions  2  and 5 of section 11-675 of the administrative
    30  code of the city of New York, subdivision 5  as  amended  by  local  law
    31  number 57 of the city of New York for the year 2001, are amended to read
    32  as follows:
    33    2.  Exception as to estimated tax. This section shall not apply to any
    34  failure to pay estimated tax under subchapter two [or subchapter], three
    35  or three-A of this chapter.
    36    5. Tax reduced by carry back. If the amount of  tax  under  subchapter
    37  two  or three-A for any taxable year is reduced by reason of a carryback
    38  of a net operating loss or a capital loss, such reduction in  tax  shall
    39  not affect the computation of interest under this section for the period
    40  ending  with the filing date for the taxable year in which the net oper-
    41  ating loss or capital loss arises. Such filing date shall be  determined
    42  without regard to extensions of time to file.
    43    §  12.  Subdivision  3 of section 11-676 of the administrative code of
    44  the city of New York, as amended by chapter 201 of the laws of 2009,  is
    45  amended to read as follows:
    46    3.  Failure  to  file declaration or underpayment of estimated tax. If
    47  any taxpayer fails to file a declaration of estimated tax under subchap-
    48  ter two [or], three or three-A of this chapter, or fails to pay  all  or
    49  any  part  of  an amount which is applied as an installment against such
    50  estimated tax, it shall be deemed to have made an underpayment of  esti-
    51  mated  tax.  There  shall  be  added  to the tax for the taxable year an
    52  amount at the underpayment rate  set  by  the  commissioner  of  finance
    53  pursuant to section 11-687 of this subchapter, or, if no rate is set, at
    54  the  rate of seven and one-half percent per annum upon the amount of the
    55  underpayment for the period of  the  underpayment  but  not  beyond  the
    56  fifteenth  day  of  the  third  month following the close of the taxable

        A. 6009                            177
 
     1  year. The amount of the underpayment  shall  be,  with  respect  to  any
     2  installment  of  estimated  tax  computed  on the basis of the preceding
     3  year's tax, the excess of the  amount  required  to  be  paid  over  the
     4  amount,  if  any,  paid  on  or  before the last day prescribed for such
     5  payment or, with respect to any other installment of estimated tax,  the
     6  excess  of  the  amount of the installment which would be required to be
     7  paid if the estimated tax were equal to ninety percent of the tax  shown
     8  on  the  return  for the taxable year (or if no return was filed, ninety
     9  percent of the tax for such year)  over  the  amount,  if  any,  of  the
    10  installment  paid on or before the last day prescribed for such payment.
    11  In any case in which there would be no underpayment if "eighty  percent"
    12  were  substituted  for  "ninety  percent"  each place it appears in this
    13  subdivision, the addition to the tax  shall  be  equal  to  seventy-five
    14  percent  of  the  amount  otherwise determined. No underpayment shall be
    15  deemed to exist with respect to a declaration or  installment  otherwise
    16  due on or after the termination of existence of the taxpayer.
    17    §  13. The opening paragraph of subdivision 4 of section 11-676 of the
    18  administrative code of the city of  New  York  is  amended  to  read  as
    19  follows:
    20    Exception  to addition for underpayment of estimated tax. The addition
    21  to tax under subdivision three with respect to any underpayment  of  any
    22  amount  which  is  applied as an installment against estimated tax under
    23  subchapter two [or], three or three-A  of  this  chapter  shall  not  be
    24  imposed  if the total amount of all payments of estimated tax made on or
    25  before the last date prescribed for  the  payment  of  any  such  amount
    26  equals  or  exceeds the amount which would have been required to be paid
    27  on or before such date if  the  estimated  tax  were  whichever  of  the
    28  following is the least:
    29    §  14.  Subdivision 13 of section 11-676 of the administrative code of
    30  the city of New York, as added by chapter 525 of the laws  of  1988,  is
    31  amended to read as follows:
    32    13. Failure to file report of information relating to certain interest
    33  payments.  In case of failure to file the report of information required
    34  under either subdivision two-a of section  11-605  of  this  chapter  or
    35  subdivision  two-a of section 11-655 of this chapter, unless it is shown
    36  that such failure is due to reasonable cause  and  not  due  to  willful
    37  neglect,  there  shall  be  added  to  the tax a penalty of five hundred
    38  dollars.
    39    § 15. Subdivision 2 of section 11-677 of the  administrative  code  of
    40  the city of New York is amended to read as follows:
    41    2.  Credits  against  estimated  tax.  The commissioner of finance may
    42  prescribe regulations providing for the crediting against the  estimated
    43  tax  under subchapter two [or], three or three-A of this chapter for any
    44  taxable year of the amount determined to be an overpayment of tax  under
    45  any  such subchapter for a preceding taxable year. If any overpayment of
    46  tax is so claimed as a credit against estimated tax for  the  succeeding
    47  taxable  year,  such  amount shall be considered as a payment of the tax
    48  under subchapter two [or], three or three-A  of  this  chapter  for  the
    49  succeeding  taxable  year  (whether  or  not  claimed as a credit in the
    50  declaration of estimated tax for such succeeding taxable year),  and  no
    51  claim  for credit or refund of such overpayment shall be allowed for the
    52  taxable year for which the overpayment arises.
    53    § 16. Subdivisions 3, 4, 9 and 11 of section 11-678 of the administra-
    54  tive code of the city of New York, subdivision 3 as amended  by  chapter
    55  241 of the laws of 1989 and subdivision 4 as amended by local law number

        A. 6009                            178
 
     1  57  of  the  city  of New York for the year 2001, are amended to read as
     2  follows:
     3    3.  Notice of change or correction of federal or New York state income
     4  or other basis of tax. If a taxpayer is required by subchapter two [or],
     5  three or three-A of this chapter to file a report or amended  return  in
     6  respect of (a) a decrease or increase in federal or New York state taxa-
     7  ble  income, alternative minimum taxable income or other basis of tax or
     8  federal or New York state tax, (b) a federal or New York state change or
     9  correction or renegotiation, or computation  or  recomputation  of  tax,
    10  which  is  treated  in  the same manner as if it were an overpayment for
    11  federal or New York state income  tax  purposes,  claim  for  credit  or
    12  refund of any resulting overpayment of tax shall be filed by the taxpay-
    13  er  within  two  years  from  the time such report or amended return was
    14  required to be filed with the commissioner of finance. If the report  or
    15  amended return required by subchapter two [or], three or three-A of this
    16  chapter  is not filed within the ninety day period therein specified, no
    17  interest shall be payable on any claim for credit or refund of the over-
    18  payment attributable  to  the  federal  or  New  York  state  change  or
    19  correction. The amount of such credit or refund:
    20    (c)  shall,  (i) for taxable years beginning before January first, two
    21  thousand fifteen, be computed without change of the allocation of income
    22  or capital upon which the taxpayer's return (or any  additional  assess-
    23  ment) was based, and, (ii) for taxable years beginning on or after Janu-
    24  ary first, two thousand fifteen, be computed without change of the allo-
    25  cation  of  income  or  capital upon which the taxpayer's return (or any
    26  additional assessment) was based to the extent that the claim for refund
    27  arises from a decrease or increase in federal taxable  income  or  other
    28  basis of tax or federal tax, or from a federal change, correction, rene-
    29  gotiation,  computation or recomputation of tax, which is treated in the
    30  same manner as  if  it  were  an  overpayment  for  federal  income  tax
    31  purposes, and
    32    (d)  shall  not exceed the amount of the reduction in tax attributable
    33  to such decrease or increase  in  federal  or  New  York  state  taxable
    34  income,  alternative  minimum  taxable  income  or other basis of tax or
    35  federal or New York state tax or to  such  federal  or  New  York  state
    36  change  or  correction or renegotiation, or computation or recomputation
    37  of tax.
    38    This subdivision shall not affect the time within which or the  amount
    39  for  which  a  claim  for  credit or refund may be filed apart from this
    40  subdivision.
    41    4. Overpayment attributable to net operating loss carry back or  capi-
    42  tal loss carry back. A claim for credit or refund of so much of an over-
    43  payment  under subchapter two or three-A of this chapter as is attribut-
    44  able to the application to the taxpayer of a net  operating  loss  carry
    45  back or a capital loss carry back shall be filed within three years from
    46  the time the return was due (including extensions thereof) for the taxa-
    47  ble year of the loss, or within the period prescribed in subdivision two
    48  in  respect  of  such  taxable  year, or within the period prescribed in
    49  subdivision three, where applicable, in respect to the taxable  year  to
    50  which  the net operating loss or capital loss is carried back, whichever
    51  expires the latest. Where such claim for credit or refund is filed after
    52  the expiration of the period prescribed in subdivision one or in  subdi-
    53  vision two where applicable, in respect to the taxable year to which the
    54  net  operating  loss or capital loss is carried back, the amount of such
    55  credit or refund shall be computed without change of the  allocation  of

        A. 6009                            179
 
     1  income  or  capital  upon which the taxpayer's return (or any additional
     2  assessment) was based.
     3    9.  Prepaid  tax.  For  purposes  of this section, any tax paid by the
     4  taxpayer before the last day prescribed for its payment  (including  any
     5  amount  paid  by the taxpayer as estimated tax for a taxable year) shall
     6  be deemed to have been paid by it on the  fifteenth  day  of  the  third
     7  month following the close of the taxable year the income of which is the
     8  basis  for tax under subchapter two [or], three or three-A of this chap-
     9  ter, or on the last day prescribed in part one of  subchapter  three  or
    10  subchapter  four for the filing of a final return for such taxable year,
    11  or portion thereof, determined in all cases without regard to any exten-
    12  sion of time granted the taxpayer.
    13    11. Notice of change or correction of sales and compensating  use  tax
    14  liability. (a) If a taxpayer is required by subchapter two or three-A of
    15  this  chapter  to file a report or amended return in respect of a change
    16  or correction of its sales and compensating use tax liability, claim for
    17  credit or refund of any resulting overpayment of tax shall be  filed  by
    18  the  taxpayer  within  two  years  from  the time such report or amended
    19  return was required to be filed with the commissioner  of  finance.  The
    20  amount  of such credit or refund shall be computed without change of the
    21  allocation of income or capital upon which the taxpayer's return (or any
    22  additional assessment) was based, and shall not exceed the amount of the
    23  reduction in tax attributable to such change or correction of sales  and
    24  compensating use tax liability.
    25    (b)  This  subdivision  shall  not affect the time within which or the
    26  amount for which a claim for credit or refund may be  filed  apart  from
    27  this subdivision.
    28    §  17.  Subdivisions  4  and 6 of section 11-679 of the administrative
    29  code of the city of New York, subdivision 4  as  amended  by  local  law
    30  number 57 of the city of New York for the year 2001 and subdivision 6 as
    31  amended  by  chapter  241  of  the  laws of 1989, are amended to read as
    32  follows:
    33    4. Refund of tax caused by carryback. For purposes of this section, if
    34  any overpayment of tax imposed by subchapter  two  or  three-A  of  this
    35  chapter  results from a carryback of a net operating loss or a net capi-
    36  tal loss, such overpayment shall be deemed not to have been  made  prior
    37  to the filing date for the taxable year in which such net operating loss
    38  or net capital loss arises. Such filing date shall be determined without
    39  regard  to extensions of time to file. For purposes of subdivision three
    40  of this section any overpayment described herein shall be treated as  an
    41  overpayment for the loss year and such subdivision shall be applied with
    42  respect  to such overpayment by treating the return for the loss year as
    43  not filed before claim for such overpayment is  filed.  The  term  "loss
    44  year" means the taxable year in which such loss arises.
    45    6. Cross reference. For provision with respect to interest after fail-
    46  ure  to  file a report of federal or New York state change or correction
    47  or amended return under subchapter  two  [or],  three  or  three-A,  see
    48  subdivision three of section 11-678 of this subchapter.
    49    § 18. Paragraph (d) of subdivision 4 of section 11-680 of the adminis-
    50  trative  code  of the city of New York, as amended by chapter 808 of the
    51  laws of 1992, is amended to read as follows:
    52    (d) Restriction on further notices  of  deficiency.  If  the  taxpayer
    53  files  a  petition  with the tax appeals tribunal under this section, no
    54  notice of deficiency under section 11-672 of this subchapter may  there-
    55  after  be  issued  by  the  commissioner of finance for the same taxable
    56  year, except in case of fraud or with respect to an increase or decrease

        A. 6009                            180
 
     1  in federal or New York state taxable income, alternative minimum taxable
     2  income or other basis of tax or federal or  New  York  state  tax  or  a
     3  federal  or  New  York  state  change or correction or renegotiation, or
     4  computation or recomputation of tax, which is treated in the same manner
     5  as  if  it  were  a  deficiency for federal or New York state income tax
     6  purposes, required to be reported under subchapter two  [or],  three  or
     7  three-A  of this chapter or with respect to a state change or correction
     8  of sales and compensating use tax  liability  required  to  be  reported
     9  under subchapter two or three-A of this chapter.
    10    § 19. Paragraph (c) of subdivision 5 of section 11-680 of the adminis-
    11  trative  code  of the city of New York, as amended by chapter 808 of the
    12  laws of 1992, is amended to read as follows:
    13    (c) whether the petitioner is liable for any increase in a  deficiency
    14  where  such  increase is asserted initially after a notice of deficiency
    15  was mailed and a petition under this section filed, unless such increase
    16  in deficiency is the result of an increase or decrease in federal or New
    17  York state taxable income, alternative minimum taxable income  or  other
    18  basis  of  tax or federal or New York state tax or a federal or New York
    19  state change or correction or renegotiation, or computation or  recompu-
    20  tation of tax, which is treated in the same manner as if it were a defi-
    21  ciency for federal or New York state income tax purposes, required to be
    22  reported  under  subchapter  two [or], three or three-A of this chapter,
    23  and of which increase, decrease, change or correction or  renegotiation,
    24  or  computation  or  recomputation,  the  commissioner of finance had no
    25  notice at the time he or she mailed the notice of deficiency  or  unless
    26  such  increase  in deficiency is the result of a change or correction of
    27  sales and compensating use tax liability required to be  reported  under
    28  subchapter  two  or  three-A  of  this  chapter,  and of which change or
    29  correction the commissioner of finance had no notice at the time  he  or
    30  she mailed the notice of deficiency; and
    31    § 20. Paragraph (a) of subdivision 5 of section 11-687 of the adminis-
    32  trative  code  of the city of New York, as amended by chapter 201 of the
    33  laws of 2009, is amended to read as follows:
    34    (a) Authority to set interest rates. The commissioner of finance shall
    35  set the overpayment and underpayment rates of interest to be paid pursu-
    36  ant to sections 11-606, 11-608, 11-645, 11-647, 11-656, 11-658,  11-675,
    37  11-676,  and  11-679  of  this  chapter, but if no such rate or rates of
    38  interest are set, such overpayment rate shall be deemed to be set at six
    39  percent per annum and such underpayment rate shall be deemed to  be  set
    40  at  seven and one-half percent per annum. Such overpayment and underpay-
    41  ment rates shall be the rates prescribed in paragraph (b) of this subdi-
    42  vision but the underpayment rate shall not be less than seven  and  one-
    43  half  percent  per  annum.  Any  such  rates  set by the commissioner of
    44  finance shall apply to taxes, or any portion thereof,  which  remain  or
    45  become  due  or overpaid on or after the date on which such rates become
    46  effective and shall apply only with  respect  to  interest  computed  or
    47  computable  for  periods  or portions of periods occurring in the period
    48  during which such rates are in effect.
    49    § 21. Subdivision 7 of section 11-688 of the  administrative  code  of
    50  the city of New York, as added by section 22 of part M of chapter 686 of
    51  the laws of 2003, is amended to read as follows:
    52    7.  Notwithstanding  anything  in subdivision one of this section, the
    53  commissioner of finance may disclose  to  a  taxpayer  or  a  taxpayer's
    54  related  member,  as  defined  in  paragraph (n) of subdivision eight of
    55  section 11-602, paragraph (n) of subdivision eight of section 11-652  or
    56  paragraph  one  of  subdivision  (q)  of section 11-641 of this chapter,

        A. 6009                            181
 
     1  information relating to any royalty paid, incurred or received  by  such
     2  taxpayer or related member to or from the other, including the treatment
     3  of  such payments by the taxpayer or the related member in any report or
     4  return transmitted to the commissioner of finance under this title.
     5    § 22. Paragraph 4 of subdivision (f) of section 11-704 of the adminis-
     6  trative  code  of the city of New York, as amended by chapter 831 of the
     7  laws of 1992, is amended to read as follows:
     8    (4) No tenant shall be authorized to receive a reduction in base  rent
     9  subject to tax under the provisions of this subdivision, until the prem-
    10  ises  with respect to which it is claiming a reduction in base rent meet
    11  the requirements in the definition of eligible premises and until it has
    12  obtained a certification of eligibility from  the  mayor  or  an  agency
    13  designated  by  the mayor, and an annual certification from the mayor or
    14  an agency designated by the mayor as to the number of eligible aggregate
    15  employment shares maintained  by  such  tenant  which  may  qualify  for
    16  obtaining  a  base rent reduction for the tenant's tax year. Any written
    17  documentation submitted to the mayor or such agency or agencies in order
    18  to obtain any such certification shall be deemed  a  written  instrument
    19  for  purposes  of  section 175.00 of the penal law. Application fees for
    20  such certifications shall be determined by the mayor or such  agency  or
    21  agencies. No certification of eligibility shall be issued to an eligible
    22  business  on  or  after  July first, nineteen hundred ninety-nine unless
    23  such business meets the requirements of either subparagraph (a)  or  (b)
    24  below:
    25    (a)  (1)  prior  to  such  date such business has purchased, leased or
    26  entered into a contract to purchase or lease particular  premises  or  a
    27  parcel  on which will be constructed such premises or already owned such
    28  premises or parcel;
    29    (2) prior to such date improvements have been commenced on such  prem-
    30  ises or parcel which improvements will meet the requirements of subdivi-
    31  sion  (e)  of  section  22-621 of this code relating to expenditures for
    32  improvements;
    33    (3) prior to such date such business submits a preliminary application
    34  for a certification of eligibility to such mayor or such agency or agen-
    35  cies with respect to a proposed relocation to such particular  premises;
    36  and
    37    (4) such business relocates to such particular premises not later than
    38  thirty-six  months  or, in a case in which the expenditures made for the
    39  improvements specified in clause two of this subparagraph are in  excess
    40  of  fifty  million  dollars  within  seventy-two months from the date of
    41  submission of such preliminary application; or
    42    (b) (1) not later than June thirtieth, two thousand two, such business
    43  has purchased, leased or entered into a contract to  purchase  or  lease
    44  particular  premises wholly contained in a building in which at least an
    45  aggregate of forty per centum  or  two  hundred  thousand  square  feet,
    46  whichever is less, of the nonresidential floor area of such building has
    47  been  purchased or leased by a business or businesses which meet or will
    48  meet the requirements of subparagraph (a) of this paragraph with respect
    49  to such floor area and which are or will become certified as eligible to
    50  receive a credit under section 22-622 of this code with respect to  such
    51  floor area;
    52    (2)  not  later  than  June thirtieth, two thousand two, such business
    53  submits a preliminary application for a certification of eligibility  to
    54  such  mayor  or such agency or agencies with respect to a proposed relo-
    55  cation to such particular premises; and

        A. 6009                            182
 
     1    (3) not later than June thirtieth, two  thousand  two,  such  business
     2  relocates to such particular premises.
     3    Any  tenant subject to a tax imposed under chapter five, or subchapter
     4  two [or], three or three-A of chapter six, of  this  title  obtaining  a
     5  certification  of  eligibility  pursuant  to  subdivision (b) of section
     6  22-622 of the code shall be deemed to have obtained the certification of
     7  eligibility required by this paragraph.
     8    § 23. Subdivision (a) and the opening paragraph of subdivision (o)  of
     9  section  22-621  of  the  administrative  code  of the city of New York,
    10  subdivision (a) as amended by chapter 149 of the laws of  1999  and  the
    11  opening paragraph of subdivision (o) as added by chapter 143 of the laws
    12  of 2004, are amended to read as follows:
    13    (a)  "Eligible  Business."  Any  person subject to a tax imposed under
    14  chapter five, or subchapter two [or], three or three-A of  chapter  six,
    15  or  chapter  eleven,  of  title  eleven  of the code, that: (1) has been
    16  conducting substantial business  operations  at  one  or  more  business
    17  locations  outside  the  eligible  area  for the twenty-four consecutive
    18  months immediately preceding the taxable year during which such eligible
    19  business relocates as defined in subdivision (j) of  this  section;  and
    20  (2)  on or after May twenty-seventh, nineteen hundred eighty-seven relo-
    21  cates as defined in subdivision (j) of this section all or part of  such
    22  business  operations; and (3) either (i) on or after May twenty-seventh,
    23  nineteen hundred eighty-seven first enters into a contract  to  purchase
    24  or  lease  the  premises to which it relocates as defined in subdivision
    25  (j) of this section, or a parcel on which will be constructed such prem-
    26  ises, or (ii) as of May twenty-seventh,  nineteen  hundred  eighty-seven
    27  owns  such parcel or premises and has not prior to such date made appli-
    28  cation for benefits pursuant to part four of subchapter two  of  chapter
    29  two of title eleven of the code.
    30    "Total attributed eligible aggregate employment shares" means, for any
    31  relocation,  the  sum  of  the  number  of eligible aggregate employment
    32  shares apportioned to such relocation pursuant to paragraph one of  this
    33  subdivision,  less  any  excess  shares  determined with respect to such
    34  relocation pursuant to paragraph  two  of  this  subdivision,  plus  any
    35  excess  shares attributed to such relocation pursuant to paragraph three
    36  of this subdivision. Except as provided in paragraph four of this subdi-
    37  vision, any eligible aggregate employment shares that are attributed  to
    38  a  relocation to particular premises pursuant to paragraph three of this
    39  subdivision shall be treated as  eligible  aggregate  employment  shares
    40  that  are  maintained with respect to such premises and shall be subject
    41  to all provisions of this  chapter  and  the  provisions  for  a  credit
    42  against  a  tax imposed under chapter five or subchapter two [or], three
    43  or three-A of chapter six or chapter eleven of title eleven of the  code
    44  as such provisions pertain to such relocation.
    45    § 24. Subdivisions (a) and (d) of section 22-622 of the administrative
    46  code of the city of New York, subdivision (a) as amended and subdivision
    47  (d)  as added by chapter 149 of the laws of 1999, are amended to read as
    48  follows:
    49    (a) An eligible business that relocates as defined in subdivision  (j)
    50  of  section  22-621  of  the  code  shall be allowed to receive a credit
    51  against a tax imposed by chapter five, or subchapter two [or], three  or
    52  three-A  of chapter six, or chapter eleven, of title eleven of the code,
    53  as described in subdivision (i) of section 11-503, subdivision seventeen
    54  of section 11-604, subdivision  seventeen  of  section  11-654,  section
    55  11-643.7 and section 11-1105.2 of the code, and a reduction in base rent
    56  subject  to  tax  as described in subdivision f of section 11-704 of the

        A. 6009                            183
 
     1  code, provided, however, notwithstanding any other provision of  law  to
     2  the  contrary,  no  such credit shall be allowed against the tax imposed
     3  under such chapter eleven for a relocation taking place prior to January
     4  first, nineteen hundred ninety-nine.
     5    (d)  An  eligible business other than a utility company subject to the
     6  supervision of the department of public service shall not be  authorized
     7  to receive a credit against the gross receipts tax imposed under chapter
     8  eleven of title eleven of the code, unless such eligible business elects
     9  to take the credit authorized by this section against the tax imposed by
    10  such  chapter  on  an  application filed with respect to the first relo-
    11  cation of such business  that  qualifies  or  will  qualify  under  this
    12  section,  with the mayor or the agency designated by such mayor pursuant
    13  to subdivision (b) of this section.  The  election  authorized  by  this
    14  subdivision  may  not  be  withdrawn  after the issuance of such certif-
    15  ication of eligibility. No  taxpayer  that  has  previously  received  a
    16  certification  of  eligibility  to  receive  such credit against any tax
    17  imposed by chapter five or subchapter two  [or],  three  or  three-A  of
    18  chapter six of title eleven of the code may make the election authorized
    19  by  this  subdivision.  No  taxpayer that makes the election provided in
    20  this subdivision shall be authorized to take such credit against any tax
    21  imposed by chapter five or subchapter two  [or],  three  or  three-A  of
    22  chapter six of title eleven of the code.
    23    § 25. Subdivisions (a) and (l) of section 22-623 of the administrative
    24  code of the city of New York, subdivision (a) as added by chapter 143 of
    25  the laws of 2004 and subdivision (l) as added by section 10 of part E of
    26  chapter 2 of the laws of 2005, are amended to read as follows:
    27    (a)  "Eligible  business"  means  any  person subject to a tax imposed
    28  under chapter five, or subchapter two [or], three or three-A of  chapter
    29  six, or chapter eleven, of title eleven of the code, that:
    30    (1) has been conducting substantial business operations at one or more
    31  business  locations  outside  the  city  of New York for the twenty-four
    32  consecutive months immediately preceding the taxable year  during  which
    33  such  eligible  business relocates as defined in subdivision (j) of this
    34  section but has not maintained employment shares at premises in the city
    35  of New York at any time during the period beginning January  first,  two
    36  thousand two and ending on the date it enters into a lease or a contract
    37  to purchase the premises that will qualify as eligible premises pursuant
    38  to this chapter; and
    39    (2) on or after July first, two thousand three relocates as defined in
    40  subdivision (j) of this section all or part of such business operations.
    41    (l)  "Special  eligible  business"  means  any person subject to a tax
    42  imposed under chapter five, or subchapter two [or], three or three-A  of
    43  chapter  six,  or chapter eleven, of title eleven of the code, that: (1)
    44  has been conducting substantial business operations at one or more busi-
    45  ness locations outside the city of New York for the twenty-four  consec-
    46  utive  months  immediately  preceding the taxable year during which such
    47  eligible business relocates as defined in  subdivision  (m);  (2)  main-
    48  tained  employment  shares  at  premises in Manhattan in the city of New
    49  York at some time during the period beginning January first,  two  thou-
    50  sand two, and ending on the date it enters into a lease or a contract to
    51  purchase the premises that will qualify as eligible premises pursuant to
    52  this  section,  and  (3)  on or after June thirtieth, two thousand five,
    53  relocates as defined in subdivision (m) of this section all or  part  of
    54  such business operations.
    55    § 26. Subdivisions (a) and (d) of section 22-624 of the administrative
    56  code  of  the city of New York, subdivision (a) as amended by section 11

        A. 6009                            184
 
     1  of part E of chapter 2 of the  laws  of  2005  and  subdivision  (d)  as
     2  amended  by  section  12 of part E of chapter 2 of the laws of 2005, are
     3  amended to read as follows:
     4    (a)  An eligible business that relocates as defined in subdivision (j)
     5  of section 22-623 of this chapter or a special  eligible  business  that
     6  relocates  as defined in subdivision (m) of section 22-623 of this chap-
     7  ter shall be allowed to receive a credit against a tax imposed by  chap-
     8  ter  five,  or  subchapter two [or], three or three-A of chapter six, or
     9  chapter eleven, of title eleven of the code, as described in subdivision
    10  (l) of section 11-503, subdivision nineteen of section 11-604,  subdivi-
    11  sion  nineteen  of section 11-654, section 11-643.9 or section 11-1105.3
    12  of the code.
    13    (d) An eligible business or special eligible  business  other  than  a
    14  utility  company  subject to the supervision of the department of public
    15  service shall not be authorized to receive a credit  against  the  gross
    16  receipts  tax  imposed  under chapter eleven of title eleven of the code
    17  unless such eligible business or special  eligible  business  elects  to
    18  take  the  credit  authorized by this section against the tax imposed by
    19  such chapter on its application filed  with  the  mayor  or  the  agency
    20  designated  by  such  mayor pursuant to subdivision (b) of this section.
    21  The election authorized by this subdivision may not be  withdrawn  after
    22  the  issuance of such certification of eligibility. No taxpayer that has
    23  previously received a certification of eligibility to receive such cred-
    24  it against any tax imposed by chapter five or subchapter two [or], three
    25  or three-A of chapter six of title eleven  of  the  code  may  make  the
    26  election  authorized  by  this  subdivision.  No taxpayer that makes the
    27  election provided in this subdivision shall be authorized to  take  such
    28  credit  against  any tax imposed by chapter five or subchapter two [or],
    29  three or three-A of chapter six of title eleven of the code.
    30    § 27. This act shall take effect immediately and shall apply to  taxa-
    31  ble years beginning on or after January 1, 2015.
 
    32                                   PART RR
 
    33    Section  1.  Subdivision 2 of section 187-b of the tax law, as amended
    34  by section 1 of part G of chapter 59 of the laws of 2013, is amended  to
    35  read as follows:
    36    2.  (a) Alternative fuel vehicle refueling property and electric vehi-
    37  cle recharging property. The credit under this section  for  alternative
    38  fuel  vehicle  refueling  and electric vehicle recharging property shall
    39  equal for each installation of property  the  lesser  of  five  thousand
    40  dollars or the product of fifty percent [of the cost of any such proper-
    41  ty:
    42    (a)  which  is]  and the cost of any such property less any costs paid
    43  from the proceeds of grants.
    44    (b) To qualify for the credit, the property must:
    45    (i) be located in this state;
    46    [(b) which constitutes] (ii) constitute alternative fuel vehicle refu-
    47  eling property or electric vehicle recharging property; and
    48    [(c) for which none of the cost has been] (iii) not be paid  for  from
    49  the  proceeds  of  grants  awarded  before  January  first, two thousand
    50  fifteen, including grants from the New York state  energy  research  and
    51  development authority or the New York power authority.
    52    §  2. Paragraph (b) of subdivision 30 of section 210-B of the tax law,
    53  as added by section 17 of part A of chapter 59 of the laws of  2014,  is
    54  amended to read as follows:

        A. 6009                            185
 
     1    (b) (i) Alternative fuel vehicle refueling property and electric vehi-
     2  cle  recharging property. The credit under this subdivision for alterna-
     3  tive fuel vehicle refueling property  and  electric  vehicle  recharging
     4  property  shall  equal  for  each installation of property the lesser of
     5  five  thousand  dollars  or the product of fifty percent [of the cost of
     6  any such property:
     7    (i) which is] and the cost of any such property less  any  costs  paid
     8  from the proceeds of grants.
     9    (ii) To qualify for the credit, the property must:
    10    (A) be located in this state;
    11    [(ii)  which constitutes] (B) must constitute alternative fuel vehicle
    12  refueling property or electric vehicle recharging property; and
    13    [(iii) for which none of the cost has been] (C) not be paid  for  from
    14  the  proceeds  of  grants  awarded  before  January  first, two thousand
    15  fifteen, including grants from the New York state  energy  research  and
    16  development authority or the New York power authority.
    17    §  3.  Paragraph 2 of subsection (p) of section 606 of the tax law, as
    18  amended by section 3 of part G of chapter 59 of the  laws  of  2013,  is
    19  amended to read as follows:
    20    (2) (a) Alternative fuel vehicle refueling property and electric vehi-
    21  cle  recharging  property. The credit under this subsection for alterna-
    22  tive fuel vehicle refueling  property  or  electric  vehicle  recharging
    23  property  shall  equal  for  each installation of property the lesser of
    24  five thousand dollars or the product of fifty percent [of  the  cost  of
    25  any such property
    26    (A)  which  is]  and the cost of any such property less any costs paid
    27  from the proceeds of grants.
    28    (b) To qualify for the credit, the property must:
    29    (i) be located in this state;
    30    [(B) which constitutes] (ii) constitute alternative fuel vehicle refu-
    31  eling property or electric vehicle recharging property; and
    32    [(C) for which none of the cost has been] (iii) not be paid  for  from
    33  the  proceeds  of  grants  awarded  before  January  first, two thousand
    34  fifteen, including grants from the New York state  energy  research  and
    35  development authority or the New York power authority.
    36    §  4. This act shall take effect immediately, and shall apply to taxa-
    37  ble years beginning on or after January 1, 2015.
 
    38                                   PART SS
 
    39    Section 1. Subparagraphs (A), (E) and (F) of paragraph 1 and paragraph
    40  3 of subsection (e-1) of section 606 of the tax law, as added by section
    41  2 of part K of chapter 59 of the laws of 2014, are  amended  and  a  new
    42  paragraph 3-a is added to read as follows:
    43    (A) "Qualified taxpayer" means a resident individual of the state, who
    44  (i)  is  a  resident  of  a city with a population over one million or a
    45  resident in the city of Yonkers, (ii) has occupied  the  same  residence
    46  for  six  months  or  more of the taxable year, and (iii) is required or
    47  chooses to file a return under this article.
    48    (E) "Qualifying real property taxes" means all  real  property  taxes,
    49  special  ad  valorem levies and special assessments, exclusive of penal-
    50  ties and interest, levied on the residence of a qualified  taxpayer  and
    51  paid  during the taxable year. A qualified taxpayer may elect to include
    52  any additional amount that would have been levied in the absence  of  an
    53  exemption  from  real property taxation pursuant to section four hundred
    54  sixty-seven of the real property tax law. If  tenant-stockholders  in  a

        A. 6009                            186
 
     1  cooperative housing corporation have met the requirements of section two
     2  hundred sixteen of the internal revenue code by which they are allowed a
     3  deduction  for  real  estate taxes, the amount of taxes so allowable, or
     4  which  would  be  allowable  if the taxpayer had filed returns on a cash
     5  basis, shall be qualifying real property taxes. If a residence is  owned
     6  by  two  or  more individuals as joint tenants or tenants in common, and
     7  one or more than one individual is not a member of the household, quali-
     8  fying real property taxes is that part of such taxes  on  the  residence
     9  which  reflects  the  ownership percentage of the qualified taxpayer and
    10  members of his or her household. If a residence is an integral part of a
    11  larger unit, qualifying real property taxes shall  be  limited  to  that
    12  amount of such taxes paid as may be reasonably apportioned to such resi-
    13  dence.  If  a  household owns and occupies two or more residences during
    14  different periods in the same taxable  year,  qualifying  real  property
    15  taxes  shall  be  the sum of the prorated qualifying real property taxes
    16  attributable to the household during the periods such household occupies
    17  each of such residences. If the household owns and occupies a  residence
    18  for  part of the taxable year and rents a residence for part of the same
    19  taxable year, it may include the proration of qualifying  real  property
    20  taxes  on  the residence owned.   Provided, however, for purposes of the
    21  credit allowed under this subsection, qualifying real property taxes may
    22  be included by a qualified taxpayer only to the extent that such taxpay-
    23  er or the spouse of such taxpayer,  occupying  such  residence  for  one
    24  hundred eighty-three days or more of the taxable year, owns or has owned
    25  the  residence and paid such taxes. Provided, however, for taxable years
    26  two thousand fifteen  and  thereafter,  for  a  qualified  taxpayer  who
    27  resides  in  the  city  of New York, and paid the New York city personal
    28  income tax as provided in article thirty of this chapter for  a  taxable
    29  year,  such qualifying real property tax shall include the city personal
    30  income tax for the taxable year. In addition, for a  qualified  taxpayer
    31  who  resides  in  the  city of Yonkers, and paid the Yonkers city tax as
    32  provided in article thirty-A of this chapter for a  taxable  year,  such
    33  qualifying real property tax shall include the Yonkers city tax paid for
    34  the taxable year.
    35    (F)  "Real  property  tax equivalent" means fifteen and three-quarters
    36  percent of the adjusted rent actually paid in  the  taxable  year  by  a
    37  household  solely  for  the right of occupancy of its New York residence
    38  for the taxable year. If (i) a residence is rented to two or more  indi-
    39  viduals  as  cotenants,  or  such  individuals share in the payment of a
    40  single rent for the right of occupancy of such residence, and (ii)  each
    41  of such individuals is a member of a different household, one or more of
    42  which individuals shares such residence, real property tax equivalent is
    43  that  portion of fifteen and three-quarters percent of the adjusted rent
    44  paid in the taxable year which reflects that portion of the rent attrib-
    45  utable to the qualified taxpayer and the members of his  or  her  house-
    46  hold.  Provided,  however,  for  taxable  years two thousand fifteen and
    47  thereafter, for a qualified taxpayer who resides  in  the  city  of  New
    48  York,  and  paid  the  New  York city personal income tax as provided in
    49  article thirty of this chapter for a taxable year, such qualifying  real
    50  property  tax  shall  include  the city personal income tax paid for the
    51  taxable year. In addition, for a qualified taxpayer who resides  in  the
    52  city  of  Yonkers,  and paid the Yonkers city tax as provided in article
    53  thirty-A of this chapter for a taxable year, such qualifying real  prop-
    54  erty tax shall include Yonkers city tax paid for the taxable year.
    55    (3)  Determination  of  credit.  For taxable [years after two thousand
    56  thirteen and prior to two thousand sixteen] year two thousand  fourteen,

        A. 6009                            187
 
     1  the amount of the credit allowable under this subsection shall be deter-
     2  mined as follows:
     3  If household gross income    Excess real property    The credit amount is
     4  for the taxable year is:     taxes are the excess    the following
     5                               of real property tax    percentage of excess
     6                               equivalent or the       property taxes:
     7                               excess of qualifying
     8                               real property taxes
     9                               over the following
    10                               percentage of
    11                               household gross
    12                               income:
    13  Less than $100,000                   4                    4.5
    14  $100,000 to less than                5                    3.0
    15  $150,000
    16  $150,000 to less than                6                    1.5
    17  $200,000
    18    For taxable year two thousand fifteen, the amount of the credit allow-
    19  able under this subsection shall be determined as follows:
    20  If household gross income    Excess real property    The credit amount is
    21  for the taxable year is:     taxes are the excess    the following
    22                               of real property tax    percentage of excess
    23                               equivalent or the       property taxes:
    24                               excess of qualifying
    25                               real property taxes
    26                               over the following
    27                               percentage of
    28                               household gross
    29                               income:
    30  Less than $100,000                   4                    6.0
    31  $100,000 to less than                5                    4.0
    32  $150,000
    33  $150,000 to less than                6                    2.0
    34  $200,000
    35    For taxable year two thousand sixteen, the amount of the credit allow-
    36  able under this subsection shall be determined as follows:
    37  If household gross income    Excess real property    The credit amount is
    38  for the taxable year is:     taxes are the excess    the following
    39                               of real property tax    percentage of excess
    40                               equivalent or the       property taxes:
    41                               excess of qualifying
    42                               real property taxes
    43                               over the following
    44                               percentage of
    45                               household gross
    46                               income:
    47  Less than $100,000                   4                    7.5
    48  $100,000 to less than                5                    5.0
    49  $150,000
    50  $150,000 to less than                6                    2.5
    51  $200,000
    52    (3-a) Determination of credit. For taxable year two thousand seventeen
    53  and thereafter, the amount of the credit allowable under this subsection
    54  shall be determined as follows:
    55  If household gross income    Excess real property    The credit amount is
    56  for the taxable year is:     taxes are the excess    the following

        A. 6009                            188
 
     1                               of real property tax    percentage of excess
     2                               equivalent or the       property taxes:
     3                               excess of qualifying
     4                               real property taxes
     5                               over the following
     6                               percentage of
     7                               household gross
     8                               income:
     9  Less than $100,000                   4                    9.0
    10  $100,000 to less than                5                    6.0
    11  $150,000
    12  $150,000 to less than                6                    3.0
    13  $200,000
    14    Notwithstanding  the  foregoing  provisions, the maximum credit deter-
    15  mined under this subparagraph may not exceed five hundred dollars for  a
    16  renter and may not exceed one thousand dollars for a property owner.
    17    §  2.  Section 3 of part K of chapter 59 of the laws of 2014, amending
    18  the tax law, relating to establishing  an  enhanced  real  property  tax
    19  circuit breaker, is amended to read as follows:
    20    § 3. This act shall take effect immediately and shall apply to taxable
    21  years  beginning  on  or  after January 1, 2014 [and shall expire and be
    22  deemed repealed January 1, 2016].
    23    § 3. This act shall take effect immediately and shall apply to taxable
    24  years beginning on or after January 1, 2015.
 
    25                                   PART TT
 
    26    Section 1. Subsection (t) of section 606 of the tax law, as  added  by
    27  section 1 of part DD of chapter 63 of the laws of 2000, paragraphs 1 and
    28  2  as  amended by section 1 of part N of chapter 85 of the laws of 2002,
    29  is amended to read as follows:
    30    (t) College tuition and education expenses tax credit.  (1) General. A
    31  resident taxpayer shall be allowed the option of claiming a  credit,  to
    32  be  computed  as  provided in paragraph four of this subsection, against
    33  the tax imposed by  this  article,  or  an  itemized  deduction,  to  be
    34  computed  as provided in paragraph four of subsection (d) of section six
    35  hundred fifteen of this article, for allowable college tuition expenses.
    36    (2) Allowable and qualified college tuition expenses. For the purposes
    37  of this credit and the itemized deduction provided by paragraph four  of
    38  subsection (d) of section six hundred fifteen of this article:
    39    (A)  The  term  "allowable  college  tuition  expenses" shall mean the
    40  amount of qualified college tuition expenses of eligible  students  paid
    41  by the taxpayer during the taxable year, limited to ten thousand dollars
    42  for each such student;
    43    (B)  The  term "eligible student" shall mean the taxpayer, the taxpay-
    44  er's spouse, and any dependent of the taxpayer with respect to whom  the
    45  taxpayer  is  allowed  an exemption under section six hundred sixteen of
    46  this article for the taxable year;
    47    (C) The term "qualified  college  tuition  expenses"  shall  mean  the
    48  tuition required for the enrollment or attendance of an eligible student
    49  at  an  institution  of  higher  education.  Provided,  however, tuition
    50  payments made pursuant to the receipt of any scholarships  or  financial
    51  aid,  or  tuition  required  for enrollment or attendance in a course of
    52  study leading to the granting of a post baccalaureate or other  graduate
    53  degree,  shall  be  excluded  from  the definition of "qualified college
    54  expenses"[.];

        A. 6009                            189
 
     1    (D) The term "qualified education expenses" shall mean the  amount  of
     2  education  expenses of eligible students paid by the taxpayer during the
     3  taxable year, limited to one thousand dollars for each such student;
     4    (E)  The  term  "education expenses" shall mean expenses for qualified
     5  college and higher education, incurred and paid by the taxpayer, includ-
     6  ing, but not limited to, books, supplies, computer equipment  (including
     7  related  software  and  services)  and other equipment and supplementary
     8  material used in the classroom;
     9    (F) Expenses paid by dependent. If  an  exemption  under  section  six
    10  hundred sixteen of this article with respect to an individual is allowed
    11  to another taxpayer for a taxable year beginning in the calendar year in
    12  which such individual's taxable year begins,
    13    (i)  no credit under this subsection or deduction under paragraph four
    14  of subsection (d) of section six hundred fifteen of this  article  shall
    15  be allowed to such individual for such individual's taxable year, and
    16    (ii)  for  purposes  of  such  credit  or deduction, qualified college
    17  tuition expenses paid by such individual during such individual's  taxa-
    18  ble year shall be treated as paid by such other taxpayer.
    19    (3)  Institution  of higher education. For the purposes of this credit
    20  and the itemized deduction provided by paragraph four of subdivision (d)
    21  of section six hundred fifteen of this article, the term "institution of
    22  higher education" shall mean any  institution  of  higher  education  or
    23  business,  trade, technical or other occupational school, recognized and
    24  approved by the regents, or any successor organization, of the universi-
    25  ty of the state of New York or accredited  by  a  nationally  recognized
    26  accrediting  agency  or  association accepted as such by the regents, or
    27  any successor organization, of the university of the state of New  York,
    28  which  provides a course of study leading to the granting of a post-sec-
    29  ondary degree, certificate or diploma.
    30    (4) Amount of credit. (i) If allowable college  tuition  expenses  are
    31  less than five thousand dollars, the amount of the credit provided under
    32  this subsection shall be equal to the applicable percentage of the less-
    33  er  of  allowable  college  tuition  expenses or two hundred dollars. If
    34  allowable college tuition expenses are five thousand  dollars  or  more,
    35  the  amount  of the credit provided under this subsection shall be equal
    36  to the applicable percentage of the allowable college  tuition  expenses
    37  multiplied  by four percent. Such applicable percentage shall be twenty-
    38  five percent for taxable years beginning  in  two  thousand  one,  fifty
    39  percent  for  taxable  years beginning in two thousand two, seventy-five
    40  percent for taxable years  beginning  in  two  thousand  three  and  one
    41  hundred  percent  for  taxable years beginning after two thousand three.
    42  Provided, however, for taxable years beginning in two thousand  fifteen,
    43  if  the  sum  of  the  allowable  college tuition expenses and qualified
    44  education expenses is less than five thousand dollars, the amount of the
    45  credit provided under this subsection shall be equal to  the  lesser  of
    46  the  sum  of  such  expenses  or four hundred dollars. For taxable years
    47  beginning in two thousand fifteen, if the sum of the  allowable  college
    48  tuition  expenses  and  qualified  education  expenses is more than five
    49  thousand  dollars,  the  amount  of  the  credit  provided  under   this
    50  subsection shall be equal to the sum of such expenses multiplied by five
    51  percent.  For taxable years beginning in two thousand sixteen and there-
    52  after,  if  the  sum  of  the  allowable  college  tuition and education
    53  expenses is more than five thousand dollars, the amount  of  the  credit
    54  provided  under  this  subsection  shall  be  equal  to  the sum of such
    55  expenses multiplied by six percent. (ii) In addition, for taxable  years
    56  beginning in two thousand fifteen, for taxpayers whose New York adjusted

        A. 6009                            190
 
     1  gross  income is less than forty thousand dollars, the additional amount
     2  of credit shall be equal to five percent of the American Opportunity Tax
     3  Credit allowed under paragraph (i) of section 25A of the Internal Reven-
     4  ue  Code for the same year.  For taxable years beginning in two thousand
     5  sixteen and thereafter, the additional amount of  the  credit  shall  be
     6  equal  to ten percent of the American Opportunity Tax Credit allowed for
     7  the same year.  If the American Opportunity Tax Credit ceased  to  exist
     8  at  any  taxable year or years, such additional credit shall be computed
     9  based on the American Opportunity Tax Credit as it existed on the  first
    10  day of two thousand fifteen.  For the purpose of computing the amount of
    11  the  credit  under  this  subsection,  but  not including the additional
    12  amount claimed for the American Opportunity Tax Credit the sum of allow-
    13  able college tuition and qualified education expenses shall  not  exceed
    14  ten thousand dollars for any taxable year.
    15    (5)  Refundability.  The credit under this subsection shall be allowed
    16  against the taxes imposed by this article for the taxable  year  reduced
    17  by  the credits permitted by this article. If the credit exceeds the tax
    18  as so reduced, the taxpayer may receive, and the comptroller, subject to
    19  a certificate of the commissioner, shall pay as an overpayment,  without
    20  interest, the amount of such excess.
    21    (6)  Limitation. No credit shall be allowed under this subsection to a
    22  taxpayer who claims the itemized deduction provided under paragraph four
    23  of subdivision (d) of section six hundred fifteen of this article.
    24    § 2. This act shall take effect immediately and shall apply to taxable
    25  years commencing on and after January 1, 2015.
 
    26                                   PART UU
 
    27    Section 1. Paragraph 1 of subdivision (f) of section  16  of  the  tax
    28  law,  as  amended  by  section 34 of part A of chapter 59 of the laws of
    29  2014, is amended to read as follows:
    30    (1) General. The tax factor shall be, in the case of article nine-A of
    31  this chapter, the amount of tax determined for the  taxable  year  under
    32  paragraph  (a)  of  subdivision  one  of section two hundred ten of such
    33  article. The tax factor shall be, in the case of article  twenty-two  of
    34  this  chapter, the tax determined for the taxable year under subsections
    35  (a) through (d) of section six hundred one  of  such  article.  Provided
    36  however, taxpayers filing under article twenty-two of this chapter shall
    37  include for the purposes of the tax factor all business income attribut-
    38  able  to  a  QEZE  business which is taxable under article twenty-two of
    39  this chapter. The tax factor shall be, in the case  of  article  thirty-
    40  three  of  this chapter, the larger of the amounts of tax determined for
    41  the taxable year under paragraphs one and three of  subdivision  (a)  of
    42  section fifteen hundred two of such article.
    43    § 2. This act shall take effect immediately.
 
    44                                   PART VV
 
    45    Section  1.  Section  1115  of  the tax law is amended by adding a new
    46  subdivision (jj) to read as follows:
    47    (jj) Notwithstanding  any  other  provision  of  this  article:    (1)
    48  Receipts  in  excess  of  two hundred thirty thousand dollars from every
    49  sale of, and consideration in excess  of  two  hundred  thirty  thousand
    50  dollars given or contracted to be given for, or for the use of, a vessel
    51  shall be exempt from the taxes imposed by this article.

        A. 6009                            191
 
     1    (2)  For  purposes of subdivision (b) of section eleven hundred eleven
     2  of this article, the purchase  price,  current  market  value,  or  fair
     3  rental value, as the case may be, of a vessel purchased by a resident of
     4  New  York state outside of this state for use outside of this state that
     5  subsequently  becomes  subject to the compensating use tax imposed under
     6  this article shall be deemed not to exceed two hundred  thirty  thousand
     7  dollars.
     8    (3)  For  purposes of subdivision (i) of section eleven hundred eleven
     9  of this article, receipts or consideration for the  lease  of  a  vessel
    10  subject to such subdivision (i) in excess of two hundred thirty thousand
    11  dollars  shall  be  exempt  from  the  calculation of tax due under such
    12  subdivision (i).
    13    (4) For purposes of paragraph one of subdivision (q) of section eleven
    14  hundred eleven of this article, the limitations on exclusions  from  the
    15  definition  of  retail  sale  in paragraph one of such subdivision shall
    16  apply only to the first two hundred thirty thousand dollars of  receipts
    17  from  every  sale  of,  or consideration given or contracted to be given
    18  for, or for the use of, a vessel.
    19    (5) For purposes of paragraph two of subdivision (q) of section eleven
    20  hundred eleven of this article, the purchase price or market  value,  as
    21  the  case may be, of a vessel subject to tax under paragraph two of such
    22  subdivision (q) shall be deemed not to exceed two hundred  thirty  thou-
    23  sand dollars.
    24    (6) For purposes of subdivision two of section eleven hundred eighteen
    25  of  this part, the limitation on the exclusion from compensating use tax
    26  in such subdivision two with respect to qualified property,  as  defined
    27  in  such  subdivision,  shall apply only to the first two hundred thirty
    28  thousand dollars of consideration given or contracted to be  given  for,
    29  or for the use of, a vessel.
    30    (7)  For  purposes  of  paragraph  (a) of subdivision seven of section
    31  eleven hundred eighteen of this part, the  refund  or  credit  allowable
    32  under  paragraph  (a)  of  such subdivision seven shall be computed only
    33  with regard to tax legally due and paid to another state  on  the  first
    34  two hundred thirty thousand dollars of the purchase price.
    35    (8) Except as otherwise provided herein, this subdivision shall not be
    36  deemed  to limit any other exemption or exclusion in this article relat-
    37  ing to a vessel.
    38    § 2. Section 1118 of the tax law is amended by adding a  new  subdivi-
    39  sion 13 to read as follows:
    40    (13) (a) In respect to the use of a vessel by the purchaser thereof in
    41  this state for not more than twenty days per calendar year.
    42    (b)  If  a vessel brought into this state for use under this paragraph
    43  is placed in a qualified facility for repairs,  alterations,  refitting,
    44  or  modifications and such repairs, alterations, refitting, or modifica-
    45  tions are supported by  written  documentation,  the  twenty-day  period
    46  shall  be  tolled  during the time the vessel is physically in the care,
    47  custody, and control of a qualified facility, including the  time  spent
    48  on  sea  trials conducted by such facility. The twenty-day period may be
    49  tolled only once within a calendar year when a vessel is placed for  the
    50  first  time  in  such  calendar  year in the physical care, custody, and
    51  control of a qualified facility; however,  the  commissioner  may  grant
    52  upon  written  request of the owner of such vessel an additional tolling
    53  of the twenty-day period for purposes of repairs that arise from a writ-
    54  ten guarantee given by such facility, which guarantee covers only  those
    55  repairs  or  modifications  made  during the first tolled period. Within
    56  seventy-two  hours  after  the  date  upon  which  such  facility   took

        A. 6009                            192
 
     1  possession  of  the vessel, the owner must obtain documentation, in such
     2  form as the commissioner shall prescribe, which states that  the  vessel
     3  is under the care, custody, and control of a qualified facility and that
     4  the  owner  does  not  use  the  vessel  while  in  such  facility. Upon
     5  completion of the repairs, alterations, refitting, or modifications, the
     6  owner must obtain from such facility within seventy-two hours after  the
     7  date  the  vessel  is  released,  documentation  that  shows the date of
     8  release and any other information the  commissioner  may  require.  Such
     9  facility shall maintain a log that documents all alterations, additions,
    10  repairs,  and  sea  trials  during  the time a vessel is under its care,
    11  custody, and control. Such documentation shall  be  maintained  by  such
    12  owner and facility for at least three years from the date such vessel is
    13  released.
    14    (c)  If  a  vessel  is  brought into the state for the sole purpose of
    15  offering it for sale under a contract with a broker or dealer registered
    16  pursuant to section eleven hundred thirty-four  of  this  article,  such
    17  vessel is exclusively in the care, custody and control of such broker or
    18  dealer,  and  no person makes recreational use of such vessel, the twen-
    19  ty-day period shall be tolled during the time  such  vessel  is  in  the
    20  care, custody and control of such broker or dealer.
    21    (d) The mere storage of a boat at a qualified facility does not quali-
    22  fy as a tax-exempt use in this state.
    23    (e)  As  used in this subdivision, "qualified facility" means a marina
    24  or similar facility within the state that:
    25    (i) is located on a navigable body of water;
    26    (ii) has piers and storage facilities to provide berthing  of  vessels
    27  in its care, custody, and control; and
    28    (iii) has necessary shops and equipment to provide repair, alteration,
    29  refitting, modification or warranty work on vessels.
    30    §  3.  This  act  shall  take  effect  June 1, 2015 and shall apply in
    31  accordance with the applicable provisions of sections 1106 and  1217  of
    32  the tax law.

    33                                   PART WW
 
    34    Section  1.  The tax law is amended by adding a new section 42 to read
    35  as follows:
    36    § 42. Empire state music production credit.  (a) Allowance of  credit.
    37  (1)  A taxpayer which is an eligible music production entity, subject to
    38  tax under article nine-A or twenty-two of this chapter, shall be allowed
    39  a credit against such tax to be computed as provided herein.
    40    (2) The amount of the credit shall be the product (or pro  rata  share
    41  of  the  product,  in  the  case of a member of a partnership or limited
    42  liability company) of twenty-five percent and  the  eligible  production
    43  costs  of one or more qualified music productions. A taxpayer must incur
    44  and pay in the taxable year at least (i) twenty-five thousand dollars of
    45  eligible production costs if incurred and paid within  the  metropolitan
    46  commuter  transportation  district  as defined in section twelve hundred
    47  sixty-two of the public authorities law, or (ii)  twelve  thousand  five
    48  hundred  dollars if incurred and paid outside such metropolitan commuter
    49  transportation district in this state in order to receive the credit.
    50    (3) Eligible production costs incurred in this state but outside  such
    51  metropolitan  commuter  transportation  district shall be eligible for a
    52  credit of ten percent of such eligible production costs in  addition  to
    53  the credit specified in paragraph two of this subdivision.

        A. 6009                            193

     1    (4)  Eligible  production  costs  related to emerging artists projects
     2  shall be  eligible  for  a  credit  of  ten  percent  of  such  eligible
     3  production  costs  in addition to the credits specified in paragraph two
     4  of this subdivision.
     5    (5)  No  eligible  production costs claimed by a taxpayer as the basis
     6  for the credit under this section shall be  used  by  such  taxpayer  to
     7  claim any other credit pursuant to this chapter.
     8    (b)  Allocation of credit. The aggregate amount of tax credits allowed
     9  under this section, subdivision forty-nine of section two hundred  ten-B
    10  and  subsection  (ccc) of section six hundred six of this chapter in any
    11  taxable year shall be  twenty-five  million  dollars.    Such  aggregate
    12  amount  of  credits  shall  be allocated by the empire state development
    13  corporation among taxpayers in order of priority based upon the date  of
    14  filing  an  application  for  allocation of music production credit with
    15  such office. No single taxpayer may claim or be awarded  more  than  ten
    16  percent  of  the  aggregate  amount  of  tax  credits allowed under this
    17  section annually. If the total amount of allocated credits  applied  for
    18  in  any  particular  year  exceeds  the  aggregate amount of tax credits
    19  allowed for such year under this section, such excess shall  be  treated
    20  as  having  been  applied for on the first day of the subsequent taxable
    21  year.
    22    (c) Definitions. As used in this section:
    23    (1) "Eligible music production entity" includes  a  corporation,  sole
    24  proprietorship,  partnership,  limited  partnership,  limited  liability
    25  company, or other entity.
    26    (2) "Eligible music production" is a music production that results  in
    27  a  commercially  released  sound  recording of at least eight minutes in
    28  aggregate in which eligible production costs equal to or are  in  excess
    29  of  seven  thousand  five  hundred  dollars if incurred and paid in this
    30  state in the twelve months preceding the date on  which  the  credit  is
    31  claimed.    Provided, however, if such production costs are incurred and
    32  paid outside the metropolitan commuter transportation district  in  this
    33  state  such  production  costs  shall  be equal to or in excess of three
    34  thousand seven hundred fifty dollars to be deemed as an  eligible  music
    35  production  for  purpose of this paragraph. In addition, such production
    36  shall employ at least ten employees for the duration of the  production,
    37  or  five  employees  if such production took place primarily outside the
    38  metropolitan commuter transportation district  in  this  state  for  the
    39  duration of the production.
    40    (3)  "Eligible  production costs for a qualified music production" are
    41  costs paid and incurred in this state for tangible property and services
    42  used in the production of qualified music production, as  determined  by
    43  the  department  of economic development, including, but not limited to:
    44  studio rental fees and related costs; instrument  and  equipment  rental
    45  fees;  production  session  fees  for musicians, songwriters, composers,
    46  arrangers, music producers,  programmers,  engineers,  and  technicians;
    47  mixing and mastering services of qualifying music productions; and local
    48  transportation  expenditures  directly  related  to music production and
    49  provided at or to the site of such music production. Eligible production
    50  costs do not include costs for tangible property, or  services  used  or
    51  performed  outside of this state; recording costs of any nature incurred
    52  for recording of live concerts, or recordings that are primarily  spoken
    53  word  or wildlife or nature sounds, or produced for instructional use or
    54  advertising or promotional purposes; artists and producer  royalties  or
    55  advances;  licensing  fees  for  samples;  interpolations or other music
    56  clearance costs; mastering or post-production expenditures for  projects

        A. 6009                            194
 
     1  that  were  not  principally tracked and recorded in this state; nor any
     2  costs associated with manufacturing,  duplication,  packaging,  distrib-
     3  ution, promotion, marketing and touring not specifically outlined above.
     4  Except  as otherwise specified herein for emerging artists, that portion
     5  of any fees paid for  any  individual  musician,  songwriter,  composer,
     6  arranger, music producer, programmer, engineer, or technician, shall not
     7  exceed  ten percent of total eligible production costs submitted for any
     8  one qualified music production. Such total production costs incurred and
     9  paid in this state shall be equal to or exceed fifty  percent  of  total
    10  cost of an eligible production incurred and paid within and without this
    11  state.
    12    (4) "Emerging artist" is a citizen or permanent resident alien who has
    13  not  previously  released an album. A group is an emerging group if more
    14  than fifty percent of its members are emerging artists.
    15    (5) "Emerging artist project" is a project in which the primary artist
    16  is an emerging artist.
    17    (d) Reporting.  The department of economic development  shall  submit,
    18  on  or before December first of each year, to the governor, the director
    19  of the division of the budget, the temporary president  of  the  senate,
    20  and  the  speaker  of  the  assembly an annual report including, but not
    21  limited to, the following information regarding  the  previous  calendar
    22  year regionally, for activity within and without the metropolitan commu-
    23  ter  transportation  district:  the total dollar amount of credits allo-
    24  cated, the name and address of each eligible  music  production  company
    25  allocated  credits under this section, the total amount of credits allo-
    26  cated to each eligible music production company,  the  total  amount  of
    27  eligible  production costs and eligible production costs for each eligi-
    28  ble music production company, and the  estimated  number  of  employees,
    29  credit-eligible  man  hours,  and  credit-eligible wages associated with
    30  each eligible music production  company  allocated  credits  under  this
    31  section.  The report may also include any recommendations for changes in
    32  the calculation or administration of the credit, recommendations regard-
    33  ing continuing modification or repeal of  this  credit,  and  any  other
    34  information  regarding this credit as may be useful and appropriate.  In
    35  addition, the commissioner shall annually prepare such  report  for  the
    36  posting  on the department's website as soon as such report is submitted
    37  to the governor, the director of the budget, the temporary president  of
    38  the senate, and the speaker of the assembly.
    39    (e)  Cross-references.  For  application of the credit provided for in
    40  this section, see the following provisions of this chapter:
    41    (1) Article 9-A: section 210-B, subdivision 49.
    42    (2) Article 22: section 606, subsection (i), paragraph  (1),  subpara-
    43  graph (B), clause (xli).
    44    (3) Article 22: section 606, subsection (ccc).
    45    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    46  sion 49 to read as follows:
    47    49. Empire state music production credit. (a) Allowance of  credit.  A
    48  taxpayer  who  is eligible pursuant to section forty-two of this chapter
    49  shall be allowed a credit to be computed as  provided  in  such  section
    50  forty-two against the tax imposed by this article.
    51    (b)  Application  of credit. The credit allowed under this subdivision
    52  for any taxable year shall not reduce the tax due for such year to  less
    53  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    54  section two hundred ten of this article. Provided, however, that if  the
    55  amount  of  the  credit allowable under this subdivision for any taxable
    56  year reduces the tax to such amount, the excess shall be treated  as  an

        A. 6009                            195
 
     1  overpayment  of  tax  to  be credited or refunded in accordance with the
     2  provisions of section one thousand eighty-six of this chapter. Provided,
     3  however, the provisions of subsection  (c)  of  section    one  thousand
     4  eighty-eight  of this chapter notwithstanding, no interest shall be paid
     5  thereon.
     6    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     7  of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
     8  follows:
     9  (xli) Empire state music             Amount of credit
    10  production credit under              under subdivision
    11  subsection (ccc)                     forty-nine of section two
    12                                       hundred ten-B
    13    § 4. Section 606 of the tax law is amended by adding a new  subsection
    14  (ccc) to read as follows:
    15    (ccc) Empire state music production credit. (1) Allowance of credit. A
    16  taxpayer  who  is eligible pursuant to section forty-two of this chapter
    17  shall be allowed a credit to be computed as  provided  in  such  section
    18  forty-two against the tax imposed by this article.
    19    (2) Application of credit. If the amount of the credit allowable under
    20  this subsection for any taxable year exceeds the taxpayer's tax for such
    21  year, the excess shall be treated as an overpayment of tax to be credit-
    22  ed  or  refunded  as  provided in section six hundred eighty-six of this
    23  article, provided, however, that no interest shall be paid thereon.
    24    § 5. The state commissioner of economic development, after  consulting
    25  with  the  state  commissioner of taxation and finance, shall promulgate
    26  regulations by October 31, 2015 to establish procedures  for  the  allo-
    27  cation  of  tax  credits as required by subdivision (a) of section 42 of
    28  the tax law as added by section one of this act. Such  rules  and  regu-
    29  lations shall include provisions describing the application process, the
    30  due  dates  for  such applications, the standards which shall be used to
    31  evaluate the applications, the documentation that will  be  provided  to
    32  taxpayers  to  substantiate to the New York state department of taxation
    33  and finance the amount of tax credits allocated to such  taxpayers,  the
    34  circumstances  to  which  such tax credit may be revoked, and such other
    35  provisions as deemed  necessary  and  appropriate.  Notwithstanding  any
    36  other  provisions  to the contrary in the state administrative procedure
    37  act, such rules and regulations may be adopted on an emergency basis  if
    38  necessary to meet such October 31, 2015 deadline.
    39    § 6. This act shall take effect immediately and shall apply to taxable
    40  years beginning on or after January 1, 2015.
 
    41                                   PART XX
 
    42    Section  1.  Paragraph  4  of subsection (b) of section 800 of the tax
    43  law, as added by section 1 of part B of chapter 56 of the laws of  2011,
    44  is amended to read as follows:
    45    (4)  Any  eligible  educational  institution. An "eligible educational
    46  institution" shall mean any public school district, a board  of  cooper-
    47  ative  educational  services, a public elementary or secondary school, a
    48  school approved pursuant to article eighty-five or  eighty-nine  of  the
    49  education  law  to  serve students with disabilities of school age, or a
    50  nonpublic elementary or secondary school that  provides  instruction  in
    51  grade one or above, all public library systems as defined in subdivision
    52  one  of  section  two  hundred seventy-two of the education law, and all
    53  public and free association libraries  as  such  terms  are  defined  in
    54  subdivision two of section two hundred fifty-three of the education law.

        A. 6009                            196
 
     1    § 2. This act shall take effect immediately and shall apply to taxable
     2  years beginning on or after January 1, 2016.
 
     3                                   PART YY
 
     4    Section  1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
     5  sion b of section 1612 of the tax law, as amended by section 1 of part Z
     6  of chapter 59 of the laws of 2014, is amended to read as follows:
     7    (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
     8  agraph, when a vendor track, is located in Sullivan  county  and  within
     9  sixty  miles  from any gaming facility in a contiguous state such vendor
    10  fee shall, for a period of [seven] eight years commencing  April  first,
    11  two  thousand  eight,  be  at  a  rate of forty-one percent of the total
    12  revenue wagered at the vendor track after payout for prizes pursuant  to
    13  this  chapter,  after which time such rate shall be as for all tracks in
    14  clause (C) of this subparagraph.
    15    § 2. This act shall take effect immediately and  shall  be  deemed  to
    16  have been in full force and effect on and after April 1, 2015.
 
    17                                   PART ZZ
 
    18    Section  1.    Subdivision 7 of section 221 of the racing, pari-mutuel
    19  wagering and breeding law, as amended by chapter 18 of the laws of 2008,
    20  is amended to read as follows:
    21    7. In order to pay the costs of the insurance required by this section
    22  and by the workers' compensation law and to carry out its  other  powers
    23  and  duties  and  to  pay for any of its liabilities under section four-
    24  teen-a of the workers' compensation law,  the  New  York  Jockey  Injury
    25  Compensation  Fund, Inc. shall ascertain the total funding necessary and
    26  establish the sums that are to  be  paid  by  all  owners  and  trainers
    27  licensed  or required to be licensed under section two hundred twenty of
    28  this article, to obtain the total funding amount required  annually.  In
    29  order to provide that any sum required to be paid by an owner or trainer
    30  is  equitable,  the fund shall establish payment schedules which reflect
    31  such  factors  as  are  appropriate,  including  where  applicable,  the
    32  geographic  location  of  the  racing  corporation at which the owner or
    33  trainer participates, the duration of such participation, the amount  of
    34  any purse earnings, the number of horses involved, or such other factors
    35  as the fund shall determine to be fair, equitable and in the best inter-
    36  ests  of  racing.  In no event shall the amount deducted from an owner's
    37  share of purses exceed [one] two per centum. The amount deducted from an
    38  owner's share of purses shall not exceed  one  per  centum  after  April
    39  first,  two  thousand seventeen. In the cases of multiple ownerships and
    40  limited racing appearances, the fund  shall  equitably  adjust  the  sum
    41  required.
    42    The  state  racing and wagering board shall, as a condition of racing,
    43  require any racing corporation or any quarterhorse racing association or
    44  corporation authorized under this chapter to conduct pari-mutuel betting
    45  at a race meeting or races run thereat, to  require  that  each  trainer
    46  utilizing  the  facilities  of  such association or corporation and each
    47  owner racing a horse shall place or have  placed  on  deposit  with  the
    48  horsemen's  bookkeeper  of  such  racing  association or corporation, an
    49  amount to be established and paid in a manner to be  determined  by  the
    50  fund.
    51    Should  the fund determine that the amount which has been collected in
    52  the manner prescribed is inadequate to pay the annual costs required  by

        A. 6009                            197
 
     1  this section, it shall notify the state racing and wagering board of the
     2  deficiency  and the amount of the additional sum or sums necessary to be
     3  paid by each owner and/or trainer in order to cover such deficiency. The
     4  state  racing  and  wagering  board shall, as an additional condition of
     5  racing, direct any racing corporation or any quarterhorse racing associ-
     6  ation or corporation authorized under this chapter to conduct pari-mutu-
     7  el betting at a race meeting or  races  run  thereat,  to  require  each
     8  trainer  and  owner to place such additional sum or sums on deposit with
     9  the respective horsemen's bookkeeper.
    10    All amounts collected by a  horsemen's  bookkeeper  pursuant  to  this
    11  section  shall be transferred to the fund created under this section and
    12  shall be used by the fund to purchase  workers'  compensation  insurance
    13  for  jockeys,  apprentice jockeys and exercise persons licensed pursuant
    14  to this article or article four of this chapter who are employees  under
    15  section  two  of  the  workers'  compensation law, to pay for any of its
    16  liabilities under section fourteen-a of the  workers'  compensation  law
    17  and  to  administer  the workers' compensation program for such jockeys,
    18  apprentice jockeys and exercise persons required by this section and the
    19  workers' compensation law.
    20    § 2. This act shall take effect immediately.
 
    21                                  PART AAA
 
    22    Section 1. This act enacts into law major  components  of  legislation
    23  relating  to Lower Manhattan and the city of New York. Each component is
    24  wholly contained within a Subpart identified as Subparts  A  through  D.
    25  The  effective  date for each particular provision contained within such
    26  Subpart is set forth in the last section of such Subpart. Any  provision
    27  in  any section contained within a Subpart, including the effective date
    28  of the Subpart, which makes a reference to a section "of this act", when
    29  used in connection with that particular component, shall  be  deemed  to
    30  mean  and  refer to the corresponding section of the Subpart in which it
    31  is found.
 
    32                                  SUBPART A
 
    33    Section 1. Subparagraph (A) of paragraph  7  of  subdivision  (ee)  of
    34  section  1115  of  the  tax law, as amended by section 1 of subpart A of
    35  part GG of chapter 59 of the  laws  of  2014,  is  amended  to  read  as
    36  follows:
    37    (A)  "Tenant" means a person who, as lessee, enters into a space lease
    38  with a landlord for a term of ten years or more commencing on  or  after
    39  September first, two thousand five, but not later than, in the case of a
    40  space lease with respect to leased premises located in eligible areas as
    41  defined  in  clause (i) of subparagraph (D) of this paragraph, September
    42  first, two thousand [fifteen] nineteen and, in the case of a space lease
    43  with respect to leased premises located in eligible areas as defined  in
    44  clause (ii) of subparagraph (D) of this paragraph not later than Septem-
    45  ber  first,  two thousand [seventeen] twenty-one, of premises for use as
    46  commercial office space in buildings located or to  be  located  in  the
    47  eligible  areas.  A  person  who  currently occupies premises for use as
    48  commercial office space under an existing lease in  a  building  in  the
    49  eligible  areas  shall not be eligible for exemption under this subdivi-
    50  sion unless such existing lease, in the  case  of  a  space  lease  with
    51  respect  to  leased  premises  located  in  eligible areas as defined in
    52  clause (i) of subparagraph (D) of this paragraph  expires  according  to

        A. 6009                            198
 
     1  its  terms  before  September  first, two thousand [fifteen] nineteen or
     2  such existing lease, in the case of a space lease with respect to leased
     3  premises located in eligible areas as defined in clause (ii) of subpara-
     4  graph  (D)  of this paragraph and such person enters into a space lease,
     5  for a term of ten years or more commencing on or after September  first,
     6  two  thousand  five, of premises for use as commercial office space in a
     7  building located or to be located in the eligible areas,  provided  that
     8  such  space  lease  with  respect to leased premises located in eligible
     9  areas as defined in clause (i) of subparagraph  (D)  of  this  paragraph
    10  commences   no  later  than  September  first,  two  thousand  [fifteen]
    11  nineteen, and provided that such space  lease  with  respect  to  leased
    12  premises located in eligible areas as defined in clause (ii) of subpara-
    13  graph (D) of this paragraph commences no later than September first, two
    14  thousand  [seventeen]  twenty-one and provided, further, that such space
    15  lease shall expire no earlier than ten years after the expiration of the
    16  original lease.
    17    § 2.  Section 2 of part C of chapter 2 of the laws  of  2005  amending
    18  the  tax law relating to exemptions from sales and use taxes, as amended
    19  by section 2 of subpart A of part GG of chapter 59 of the laws of  2014,
    20  is amended to read as follows:
    21    § 2. This act shall take effect September 1, 2005 and shall expire and
    22  be  deemed repealed on December 1, [2018] 2022, and shall apply to sales
    23  made, uses occurring and services rendered on or  after  such  effective
    24  date,  in  accordance  with  the  applicable  transitional provisions of
    25  sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
    26  agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
    27  tax law, as added by section one of this act, shall expire and be deemed
    28  repealed December 1, [2016] 2020.
    29    § 3. This act shall take effect immediately and  shall  be  deemed  to
    30  have been in full force and effect after June 30, 2015; provided, howev-
    31  er, that the amendment to subparagraph (A) of paragraph 7 of subdivision
    32  (ee)  of  section  1115  of  the tax law made by section one of this act
    33  shall not affect the repeal of such  subdivision  and  shall  be  deemed
    34  repealed therewith.
 
    35                                  SUBPART B
 
    36    Section 1. Subdivision (b) of section 25-z of the general city law, as
    37  amended  by  section 1 of subpart D of part GG of chapter 59 of the laws
    38  of 2014, is amended to read as follows:
    39    (b) No eligible business shall be authorized to receive a credit under
    40  any local law enacted pursuant to this article until the  premises  with
    41  respect  to which it is claiming the credit meet the requirements in the
    42  definition of eligible premises and until  it  has  obtained  a  certif-
    43  ication  of  eligibility from the mayor of such city or an agency desig-
    44  nated by such mayor, and an annual certification from such mayor  or  an
    45  agency  designated  by such mayor as to the number of eligible aggregate
    46  employment shares maintained by such eligible business that may  qualify
    47  for  obtaining a tax credit for the eligible business' taxable year. Any
    48  written documentation submitted to such mayor or such agency or agencies
    49  in order to obtain any such certification  shall  be  deemed  a  written
    50  instrument  for  purposes of section 175.00 of the penal law. Such local
    51  law may provide for application fees to be determined by such  mayor  or
    52  such  agency  or agencies. No such certification of eligibility shall be
    53  issued under any local law enacted pursuant to this article to an eligi-

        A. 6009                            199
 
     1  ble business on or after July first,  two  thousand  [fifteen]  nineteen
     2  unless:
     3    (1)  prior to such date such business has purchased, leased or entered
     4  into a contract to purchase or lease particular premises or a parcel  on
     5  which  will  be constructed such premises or already owned such premises
     6  or parcel;
     7    (2) prior to such date improvements have been commenced on such  prem-
     8  ises  or parcel, which improvements will meet the requirements of subdi-
     9  vision (e) of section twenty-five-y of this article relating to expendi-
    10  tures for improvements;
    11    (3) prior to such date such business submits a preliminary application
    12  for a certification of eligibility to such mayor or such agency or agen-
    13  cies with respect to a proposed relocation to such particular  premises;
    14  and
    15    (4) such business relocates to such particular premises not later than
    16  thirty-six  months  or, in a case in which the expenditures made for the
    17  improvements specified in paragraph  two  of  this  subdivision  are  in
    18  excess  of fifty million dollars within seventy-two months from the date
    19  of submission of such preliminary application.
    20    § 2. Subdivision (b) of section 25-ee of  the  general  city  law,  as
    21  amended  by  section 2 of subpart D of part GG of chapter 59 of the laws
    22  of 2014, is amended to read as follows:
    23    (b) No eligible business or special eligible business shall be author-
    24  ized to receive a credit against tax under any local law enacted  pursu-
    25  ant  to  this  article  until  the  premises with respect to which it is
    26  claiming the credit meet the requirements in the definition of  eligible
    27  premises  and  until it has obtained a certification of eligibility from
    28  the mayor of such city or any agency designated by such  mayor,  and  an
    29  annual  certification  from  such  mayor or an agency designated by such
    30  mayor as to the number of eligible  aggregate  employment  shares  main-
    31  tained  by such eligible business or such special eligible business that
    32  may qualify for obtaining a tax credit for the eligible business'  taxa-
    33  ble  year. No special eligible business shall be authorized to receive a
    34  credit against tax under the  provisions  of  this  article  unless  the
    35  number of relocated employee base shares calculated pursuant to subdivi-
    36  sion (o) of section twenty-five-dd of this article is equal to or great-
    37  er than the lesser of twenty-five percent of the number of New York city
    38  base  shares  calculated pursuant to subdivision (p) of such section and
    39  two hundred fifty employment shares. Any written documentation submitted
    40  to such mayor or such agency or agencies in order  to  obtain  any  such
    41  certification  shall  be  deemed  a  written  instrument for purposes of
    42  section 175.00 of the penal law. Such local law may provide for applica-
    43  tion fees to be determined by such mayor or such agency or agencies.  No
    44  certification of eligibility shall be issued under any local law enacted
    45  pursuant to this article to an eligible business on or after July first,
    46  two thousand [fifteen] nineteen unless:
    47    (1)  prior to such date such business has purchased, leased or entered
    48  into a contract to purchase or lease  premises  in  the  eligible  Lower
    49  Manhattan area or a parcel on which will be constructed such premises;
    50    (2)  prior to such date improvements have been commenced on such prem-
    51  ises or parcel, which improvements will meet the requirements of  subdi-
    52  vision (e) of section twenty-five-dd of this article relating to expend-
    53  itures for improvements;
    54    (3) prior to such date such business submits a preliminary application
    55  for a certification of eligibility to such mayor or such agency or agen-
    56  cies with respect to a proposed relocation to such premises; and

        A. 6009                            200
 
     1    (4)  such  business relocates to such premises as provided in subdivi-
     2  sion (j) of section twenty-five-dd of this article not later than  thir-
     3  ty-six  months  or,  in  a  case  in which the expenditures made for the
     4  improvements specified in paragraph  two  of  this  subdivision  are  in
     5  excess  of fifty million dollars within seventy-two months from the date
     6  of submission of such preliminary application.
     7    § 3. Subdivision (b) of section 22-622 of the administrative  code  of
     8  the city of New York, as amended by section 3 of subpart D of part GG of
     9  chapter 59 of the laws of 2014, is amended to read as follows:
    10    (b)  No  eligible  business  shall  be  authorized to receive a credit
    11  against tax or a reduction  in  base  rent  subject  to  tax  under  the
    12  provisions of this chapter, and of title eleven of the code as described
    13  in  subdivision  (a) of this section, until the premises with respect to
    14  which it is claiming the credit meet the requirements in the  definition
    15  of eligible premises and until it has obtained a certification of eligi-
    16  bility from the mayor or an agency designated by the mayor, and an annu-
    17  al  certification from the mayor or an agency designated by the mayor as
    18  to the number of eligible aggregate employment shares maintained by such
    19  eligible business that may qualify for obtaining a tax  credit  for  the
    20  eligible  business' taxable year. Any written documentation submitted to
    21  the mayor or such agency or agencies in order to obtain any such certif-
    22  ication shall be deemed a written instrument  for  purposes  of  section
    23  175.00  of the penal law. Application fees for such certifications shall
    24  be determined by the mayor or such agency or agencies. No  certification
    25  of  eligibility shall be issued to an eligible business on or after July
    26  first, two thousand [fifteen] nineteen unless:
    27    (1) prior to such date such business has purchased, leased or  entered
    28  into  a contract to purchase or lease particular premises or a parcel on
    29  which will be constructed such premises or already owned  such  premises
    30  or parcel;
    31    (2)  prior to such date improvements have been commenced on such prem-
    32  ises or parcel which improvements will meet the requirements of subdivi-
    33  sion (e) of section 22-621 of this chapter relating to expenditures  for
    34  improvements;
    35    (3) prior to such date such business submits a preliminary application
    36  for a certification of eligibility to such mayor or such agency or agen-
    37  cies  with respect to a proposed relocation to such particular premises;
    38  and
    39    (4) such business relocates to such particular premises not later than
    40  thirty-six months or, in a case  in  which  the  expenditures  made  for
    41  improvements  specified  in  paragraph  two  of  this subdivision are in
    42  excess of fifty million dollars within seventy-two months from the  date
    43  of submission of such preliminary application.
    44    §  4.  Subdivision (b) of section 22-624 of the administrative code of
    45  the city of New York, as amended by section 4 of subpart D of part GG of
    46  chapter 59 of the laws of 2014, is amended to read as follows:
    47    (b) No eligible business or special eligible business shall be author-
    48  ized to receive a credit against tax under the provisions of this  chap-
    49  ter,  and of title eleven of the code as described in subdivision (a) of
    50  this section, until the premises with respect to which  it  is  claiming
    51  the  credit meet the requirements in the definition of eligible premises
    52  and until it has obtained a certification of eligibility from the  mayor
    53  or  an  agency designated by the mayor, and an annual certification from
    54  the mayor or an agency designated by the  mayor  as  to  the  number  of
    55  eligible  aggregate  employment shares maintained by such eligible busi-
    56  ness or special eligible business that may qualify for obtaining  a  tax

        A. 6009                            201
 
     1  credit  for  the  eligible  business'  taxable year. No special eligible
     2  business shall be authorized to receive a credit against tax  under  the
     3  provisions  of  this  chapter and of title eleven of the code unless the
     4  number of relocated employee base shares calculated pursuant to subdivi-
     5  sion  (o)  of section 22-623 of this chapter is equal to or greater than
     6  the lesser of twenty-five percent of the number of New  York  city  base
     7  shares  calculated  pursuant  to subdivision (p) of such section 22-623,
     8  and two hundred  fifty  employment  shares.  Any  written  documentation
     9  submitted to the mayor or such agency or agencies in order to obtain any
    10  such  certification shall be deemed a written instrument for purposes of
    11  section 175.00 of the penal  law.  Application  fees  for  such  certif-
    12  ications shall be determined by the mayor or such agency or agencies. No
    13  certification  of eligibility shall be issued to an eligible business on
    14  or after July first, two thousand [fifteen] nineteen unless:
    15    (1) prior to such date such business has purchased, leased or  entered
    16  into  a  contract  to  purchase  or lease premises in the eligible Lower
    17  Manhattan area or a parcel on which will be constructed such premises;
    18    (2) prior to such date improvements have been commenced on such  prem-
    19  ises  or parcel, which improvements will meet the requirements of subdi-
    20  vision (e) of section 22-623 of this chapter  relating  to  expenditures
    21  for improvements;
    22    (3) prior to such date such business submits a preliminary application
    23  for a certification of eligibility to such mayor or such agency or agen-
    24  cies with respect to a proposed relocation to such premises; and
    25    (4) such business relocates to such premises not later than thirty-six
    26  months or, in a case in which the expenditures made for the improvements
    27  specified  in  paragraph  two of this subdivision are in excess of fifty
    28  million dollars within seventy-two months from the date of submission of
    29  such preliminary application.
    30    § 5. This act shall take effect immediately and  shall  be  deemed  to
    31  have been in full force and effect after June 30, 2015.
 
    32                                  SUBPART C
 
    33    Section  1.  Paragraph  1  of  subdivision  (b) of section 25-s of the
    34  general city law, as amended by section 1 of subpart E  of  part  GG  of
    35  chapter 59 of the laws of 2014, is amended to read as follows:
    36    (1)  non-residential  premises  that  are wholly contained in property
    37  that is eligible to obtain benefits under title two-D or two-F of  arti-
    38  cle  four  of the real property tax law, or would be eligible to receive
    39  benefits under such article except that such  property  is  exempt  from
    40  real property taxation and the requirements of paragraph (b) of subdivi-
    41  sion seven of section four hundred eighty-nine-dddd of such title two-D,
    42  or the requirements of subparagraph (ii) of paragraph (b) of subdivision
    43  five  of  section  four  hundred eighty-nine-cccccc of such title two-F,
    44  whichever is applicable, have not been satisfied, provided that applica-
    45  tion for such benefits was made after May third, nineteen hundred eight-
    46  y-five and prior to July first, two thousand  [fifteen]  nineteen,  that
    47  construction or renovation of such premises was described in such appli-
    48  cation,  that  such  premises  have  been substantially improved by such
    49  construction or renovation  so  described,  that  the  minimum  required
    50  expenditure as defined in such title two-D or two-F, whichever is appli-
    51  cable,  has  been  made,  and  that  such real property is located in an
    52  eligible area; or

        A. 6009                            202
 
     1    § 2. Paragraph 3 of subdivision (b) of section  25-s  of  the  general
     2  city  law, as amended by section 2 of subpart E of part GG of chapter 59
     3  of the laws of 2014, is amended to read as follows:
     4    (3) non-residential premises that are wholly contained in real proper-
     5  ty  that  has obtained approval after October thirty-first, two thousand
     6  and prior to July first, two thousand [fifteen] nineteen  for  financing
     7  by  an  industrial  development  agency  established pursuant to article
     8  eighteen-A of the general municipal law, provided  that  such  financing
     9  has been used in whole or in part to substantially improve such premises
    10  (by  construction  or  renovation), and that expenditures have been made
    11  for improvements to such real property in excess of ten  per  centum  of
    12  the  value at which such real property was assessed for tax purposes for
    13  the tax year in which such improvements commenced,  that  such  expendi-
    14  tures  have  been made within thirty-six months after the earlier of (i)
    15  the issuance by such agency of bonds for such  financing,  or  (ii)  the
    16  conveyance  of title to such property to such agency, and that such real
    17  property is located in an eligible area; or
    18    § 3. Paragraph 5 of subdivision (b) of section  25-s  of  the  general
    19  city  law, as amended by section 3 of subpart E of part GG of chapter 59
    20  of the laws of 2014, is amended to read as follows:
    21    (5) non-residential premises that are wholly contained in real proper-
    22  ty owned by such city or the New York  state  urban  development  corpo-
    23  ration,  or  a  subsidiary  thereof,  a  lease for which was approved in
    24  accordance with the applicable provisions of the charter of such city or
    25  by the board of directors of such corporation,  and  such  approval  was
    26  obtained  after  October  thirty-first,  two  thousand and prior to July
    27  first, two thousand [fifteen] nineteen,  provided,  however,  that  such
    28  premises were constructed or renovated subsequent to such approval, that
    29  expenditures have been made subsequent to such approval for improvements
    30  to  such  real property (by construction or renovation) in excess of ten
    31  per centum of the value at which such real property was assessed for tax
    32  purposes for the tax year in which  such  improvements  commenced,  that
    33  such  expenditures  have  been  made  within thirty-six months after the
    34  effective date of such lease, and that such real property is located  in
    35  an eligible area; or
    36    §  4.  Paragraph  2  of subdivision (c) of section 25-t of the general
    37  city law, as amended by section 4 of subpart E of part GG of chapter  59
    38  of the laws of 2014, is amended to read as follows:
    39    (2)  No  eligible energy user, qualified eligible energy user, on-site
    40  cogenerator, or clean on-site cogenerator shall receive a rebate  pursu-
    41  ant  to  this  article  until  it  has obtained a certification from the
    42  appropriate city agency in accordance with a local law enacted  pursuant
    43  to  this  section. No such certification for a qualified eligible energy
    44  user shall be issued on or after November first, two thousand.  No  such
    45  certification of any other eligible energy user, on-site cogenerator, or
    46  clean  on-site  cogenerator  shall be issued on or after July first, two
    47  thousand [fifteen] nineteen.
    48    § 5. Paragraph 1 of subdivision (a) of section 25-aa  of  the  general
    49  city  law, as amended by section 5 of subpart E of part GG of chapter 59
    50  of the laws of 2014, is amended to read as follows:
    51    (1) is eligible to obtain benefits under title two-D or two-F of arti-
    52  cle four of the real property tax law, or would be eligible  to  receive
    53  benefits  under such title except that such property is exempt from real
    54  property taxation and the requirements of paragraph (b)  of  subdivision
    55  seven  of  section four hundred eighty-nine-dddd of such title two-D, or
    56  the requirements of subparagraph (ii) of paragraph  (b)  of  subdivision

        A. 6009                            203
 
     1  five  of  section  four  hundred eighty-nine-cccccc of such title two-F,
     2  whichever is applicable, of the real property  tax  law  have  not  been
     3  satisfied,  provided  that  application for such benefits was made after
     4  the  thirtieth  day of June, nineteen hundred ninety-five and before the
     5  first day of July, two thousand [fifteen] nineteen, that construction or
     6  renovation of such building or structure was described in such  applica-
     7  tion, that such building or structure has been substantially improved by
     8  such  construction  or  renovation,  and  (i)  that the minimum required
     9  expenditure as defined in such title has been made, or (ii) where  there
    10  is   no  applicable  minimum  required  expenditure,  the  building  was
    11  constructed within such period or periods of time established  by  title
    12  two-D  or  two-F,  whichever  is applicable, of article four of the real
    13  property tax law for construction of a new building or structure; or
    14    § 6. Paragraphs 2 and 3 of subdivision (a) of  section  25-aa  of  the
    15  general  city  law,  as  amended by section 6 of subpart E of part GG of
    16  chapter 59 of the laws of 2014, are amended to read as follows:
    17    (2) has obtained approval after the thirtieth day  of  June,  nineteen
    18  hundred  ninety-five  and  before  the  first  day of July, two thousand
    19  [fifteen] nineteen, for financing by an  industrial  development  agency
    20  established pursuant to article eighteen-A of the general municipal law,
    21  provided  that  such  financing  has  been  used  in whole or in part to
    22  substantially improve such building  or  structure  by  construction  or
    23  renovation,  that  expenditures  have been made for improvements to such
    24  real property in excess of twenty per centum of the value at which  such
    25  real  property  was  assessed for tax purposes for the tax year in which
    26  such improvements commenced, and that such expenditures have  been  made
    27  within  thirty-six  months after the earlier of (i) the issuance by such
    28  agency of bonds for such financing, or (ii) the conveyance of  title  to
    29  such building or structure to such agency; or
    30    (3)  is  owned  by  the  city  of New York or the New York state urban
    31  development corporation, or a subsidiary corporation  thereof,  a  lease
    32  for  which  was approved in accordance with the applicable provisions of
    33  the charter of such city or by the board of  directors  of  such  corpo-
    34  ration,  as  the  case  may be, and such approval was obtained after the
    35  thirtieth day of June, nineteen hundred ninety-five and before the first
    36  day of July, two thousand [fifteen] nineteen, provided that expenditures
    37  have been made for improvements to such real property in excess of twen-
    38  ty per centum of the value at which such real property was assessed  for
    39  tax  purposes for the tax year in which such improvements commenced, and
    40  that such expenditures have been made within thirty-six months after the
    41  effective date of such lease; or
    42    § 7. Subdivision (f) of section 25-bb of  the  general  city  law,  as
    43  amended  by  section 7 of subpart E of part GG of chapter 59 of the laws
    44  of 2014, is amended to read as follows:
    45    (f) Application and certification. An owner or lessee of a building or
    46  structure located in an eligible revitalization area,  or  an  agent  of
    47  such  owner  or  lessee,  may apply to such department of small business
    48  services for certification that such building or structure is an  eligi-
    49  ble  building  or  targeted  eligible  building  meeting the criteria of
    50  subdivision (a) or  (q)  of  section  twenty-five-aa  of  this  article.
    51  Application for such certification must be filed after the thirtieth day
    52  of  June,  nineteen  hundred ninety-five and before a building permit is
    53  issued for the construction or renovation required by such  subdivisions
    54  and  before  the  first  day  of  July, two thousand [fifteen] nineteen,
    55  provided that no certification for a targeted eligible building shall be
    56  issued after October thirty-first, two thousand. Such application  shall

        A. 6009                            204
 
     1  identify expenditures to be made that will affect eligibility under such
     2  subdivision  (a) or (q). Upon completion of such expenditures, an appli-
     3  cant shall supplement such application to provide information (i) estab-
     4  lishing  that the criteria of such subdivision (a) or (q) have been met;
     5  (ii) establishing a basis for determining the amount of special rebates,
     6  including a basis for an allocation of the special rebate among eligible
     7  revitalization area energy users purchasing or otherwise receiving ener-
     8  gy services from an eligible redistributor  of  energy  or  a  qualified
     9  eligible  redistributor of energy; and (iii) supporting an allocation of
    10  charges for energy services between eligible charges and other  charges.
    11  Such  department  shall  certify  a building or structure as an eligible
    12  building or targeted eligible building after receipt and review of  such
    13  information  and  upon a determination that such information establishes
    14  that the building or structure qualifies  as  an  eligible  building  or
    15  targeted  eligible  building.  Such  department  shall mail such certif-
    16  ication or notice thereof to the applicant upon issuance.  Such  certif-
    17  ication  shall  remain  in effect provided the eligible redistributor of
    18  energy or qualified eligible redistributor of energy reports any changes
    19  that materially affect the amount of the special rebates to which it  is
    20  entitled  or the amount of reduction required by subdivision (c) of this
    21  section in an energy services bill of an  eligible  revitalization  area
    22  energy  user  and otherwise complies with the requirements of this arti-
    23  cle. Such department shall notify the private utility or public  utility
    24  service  required  to make a special rebate to such redistributor of the
    25  amount of such special rebate established at the time  of  certification
    26  and any changes in such amount and any suspension or termination by such
    27  department  of certification under this subdivision. Such department may
    28  require some or all of the information required as part of  an  applica-
    29  tion or other report be provided by a licensed engineer.
    30    §  8. Paragraph 1 of subdivision (i) of section 22-601 of the adminis-
    31  trative code of the city of New York, as amended by section 8 of subpart
    32  E of part GG of chapter 59 of the laws of 2014, is amended  to  read  as
    33  follows:
    34    (1)  Non-residential  premises  that  are wholly contained in property
    35  that is eligible to obtain benefits under part  four  or  part  five  of
    36  subchapter  two of chapter two of title eleven of this code, or would be
    37  eligible to receive benefits under such chapter except that such proper-
    38  ty is exempt from real property taxation and the requirements  of  para-
    39  graph  two  of  subdivision  g  of  section  11-259 of this code, or the
    40  requirements of subparagraph (b) of paragraph two of  subdivision  e  of
    41  section  11-270  of  this  code,  whichever is applicable, have not been
    42  satisfied, provided that application for such benefits  was  made  after
    43  May  third,  nineteen  hundred  eighty-five and prior to July first, two
    44  thousand [fifteen] nineteen, that construction  or  renovation  of  such
    45  premises was described in such application, that such premises have been
    46  substantially  improved by such construction or renovation so described,
    47  that the minimum required expenditure as defined in such  part  four  or
    48  part  five,  whichever  is applicable, has been made, and that such real
    49  property is located in an eligible area; or
    50    § 9. Paragraph 3 of subdivision (i) of section 22-601 of the  adminis-
    51  trative code of the city of New York, as amended by section 9 of subpart
    52  E  of  part  GG of chapter 59 of the laws of 2014, is amended to read as
    53  follows:
    54    (3) non-residential premises that are wholly contained in real proper-
    55  ty that has obtained approval after October thirty-first,  two  thousand
    56  and  prior  to July first, two thousand [fifteen] nineteen for financing

        A. 6009                            205
 
     1  by an industrial development  agency  established  pursuant  to  article
     2  eighteen-A  of  the  general municipal law, provided that such financing
     3  has been used in whole or in part to substantially improve such premises
     4  (by  construction  or  renovation), and that expenditures have been made
     5  for improvements to such real property in excess of ten  per  centum  of
     6  the  value at which such real property was assessed for tax purposes for
     7  the tax year in which such improvements commenced,  that  such  expendi-
     8  tures  have  been made within thirty-six months after the earlier of (i)
     9  the issuance by such agency of bonds for such  financing,  or  (ii)  the
    10  conveyance  of title to such property to such agency, and that such real
    11  property is located in an eligible area; or
    12    § 10. Paragraph 5 of subdivision (i) of section 22-601 of the adminis-
    13  trative code of the city of New  York,  as  amended  by  section  10  of
    14  subpart  E  of  part GG of chapter 59 of the laws of 2014, is amended to
    15  read as follows:
    16    (5) non-residential premises that are wholly contained in real proper-
    17  ty owned by such city or the New York  state  urban  development  corpo-
    18  ration,  or  a  subsidiary  thereof,  a  lease for which was approved in
    19  accordance with the applicable provisions of the charter of such city or
    20  by the board of directors of such corporation,  and  such  approval  was
    21  obtained  after  October  thirty-first,  two  thousand and prior to July
    22  first, two thousand [fifteen] nineteen,  provided,  however,  that  such
    23  premises were constructed or renovated subsequent to such approval, that
    24  expenditures have been made subsequent to such approval for improvements
    25  to  such  real property (by construction or renovation) in excess of ten
    26  per centum of the value at which such real property was assessed for tax
    27  purposes for the tax year in which  such  improvements  commenced,  that
    28  such  expenditures  have  been  made  within thirty-six months after the
    29  effective date of such lease, and that such real property is located  in
    30  an eligible area; or
    31    § 11. Paragraph 1 of subdivision (c) of section 22-602 of the adminis-
    32  trative  code  of  the  city  of  New  York, as amended by section 11 of
    33  subpart E of part GG of chapter 59 of the laws of 2014,  is  amended  to
    34  read as follows:
    35    (1)  No  eligible energy user, qualified eligible energy user, on-site
    36  cogenerator, clean on-site cogenerator or special eligible  energy  user
    37  shall  receive a rebate pursuant to this chapter until it has obtained a
    38  certification as an eligible  energy  user,  qualified  eligible  energy
    39  user, on-site cogenerator, clean on-site cogenerator or special eligible
    40  energy  user,  respectively,  from  the  commissioner  of small business
    41  services. No such certification for a  qualified  eligible  energy  user
    42  shall  be  issued  on  or  after July first, two thousand three. No such
    43  certification of any other eligible energy user, on-site cogenerator  or
    44  clean  on-site  cogenerator  shall be issued on or after July first, two
    45  thousand  [fifteen]  nineteen.    The  commissioner  of  small  business
    46  services,  after  notice  and hearing, may revoke a certification issued
    47  pursuant to this subdivision where it is found that eligibility criteria
    48  have not been met or  that  compliance  with  conditions  for  continued
    49  eligibility  has  not been maintained. The corporation counsel may main-
    50  tain a civil action to recover an amount equal to any benefits improper-
    51  ly obtained.
    52    § 12. This act shall take effect immediately and shall  be  deemed  to
    53  have been in full force and effect after June 30, 2015.
 
    54                                  SUBPART D

        A. 6009                            206

     1    Section  1.  Subparagraph  (b-2)  of  paragraph  2 of subdivision i of
     2  section 11-704 of the administrative code of the city of  New  York,  as
     3  amended  by  section 1 of subpart F of part GG of chapter 59 of the laws
     4  of 2014, is amended to read as follows:
     5    (b-2)  The amount of the special reduction allowed by this subdivision
     6  with respect to a lease other than a sublease  commencing  between  July
     7  first,  two  thousand  five  and  June thirtieth, two thousand [fifteen]
     8  nineteen with an initial or renewal lease term of at  least  five  years
     9  shall be determined as follows:
    10    (i)  For  the  base year the amount of such special reduction shall be
    11  equal to the base rent for the base year.
    12    (ii) For the first, second,  third  and  fourth  twelve-month  periods
    13  following  the  base  year the amount of such special reduction shall be
    14  equal to the lesser of (A) the base  rent  for  each  such  twelve-month
    15  period or (B) the base rent for the base year.
    16    §  2.  This  act  shall take effect immediately and shall be deemed to
    17  have been in full force and effect after June 30, 2015.
    18    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    19  sion, section or part of this act shall be  adjudged  by  any  court  of
    20  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    21  impair, or invalidate the remainder thereof, but shall  be  confined  in
    22  its  operation  to the clause, sentence, paragraph, subdivision, section
    23  or part thereof directly involved in the controversy in which such judg-
    24  ment shall have been rendered. It is hereby declared to be the intent of
    25  the legislature that this act would  have  been  enacted  even  if  such
    26  invalid provisions had not been included herein.
    27    §  3.  This  act shall take effect immediately provided, however, that
    28  the applicable effective date of Subparts A through D of this act  shall
    29  be as specifically set forth in the last section of such Subparts.
    30    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    31  sion,  section  or  part  of  this act shall be adjudged by any court of
    32  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    33  impair,  or  invalidate  the remainder thereof, but shall be confined in
    34  its operation to the clause, sentence, paragraph,  subdivision,  section
    35  or part thereof directly involved in the controversy in which such judg-
    36  ment shall have been rendered. It is hereby declared to be the intent of
    37  the  legislature  that  this  act  would  have been enacted even if such
    38  invalid provisions had not been included herein.
    39    § 3. This act shall take effect immediately  provided,  however,  that
    40  the  applicable  effective date of Parts A through AAA of this act shall
    41  be as specifically set forth in the last section of such Parts.
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